India long needed MVNOs. We had covered the benefits and need of MVNO in India few days ago. Lets look at what were the TRAIs recommendations that were accepted by the DoT for MVNOs in India. MNO = Wireless Operator = Mobile Network Operator.

  • MNO should pay spectrum charges also on the revenue of MVNO(s) or all the payments made by MVNO(s) to MNO, whichever is higher.
  • The subscribers of MVNO(s) should be counted towards parent MNO for the purpose of spectrum allotment in bands where subscriber based criterion is applicable for spectrum allotment.
  • The commercial model covering the nature of relationship including the arrangement/
    agreement between MNO and MVNO shall be left to the market forces.
  • There should not be any limit to the number of MVNOs attached to a MNO. However a MVNO cannot get attached to more than one MNO in the same service area.
  • The subscribers of MVNO(s) should be counted towards parent MNO for the purpose of spectrum allotment in bands where subscriber based criterion is applicable for spectrum allotment.
  • In any service area, an equity holder, having 10% or more equity in a MVNO cannot hold 10% or more equity in another MVNO / MNO.
  • Entry Fees: Rs. 50 Mn for Metros and Category ‘A’, Rs. 30 Mn for Category ‘B’ and Rs. 10 Mn for Category ‘C’ with a license duration of 20 years.

The DoT has accepted the above recommendations and has given a Green Signal to launch their operations in India. Tata Indicom’s Franchisee, Virgin Mobile is likely to convert itself into a MVNO.