Telecom regulator starts discussion on permitting virtual networks
New Delhi: The Telecom Regulatory Authority of India (TRAI) on Monday initiated a discussion among all stakeholders of the industry on allowing mobile virtual network operators (MVNOs) in India.
MVNOs buy airtime from mobile network operators (MNO) and sell it under their own brand name. While it is the operator who builds and runs the network, the MVNO looks after marketing, branding and customer care.
The main difference between a franchisee and MVNO is that MVNOs add value to the service and offer differentiated service to niche market segments. MNVOs do not have their own spectrum. They share spectrum with the parent MNO.
Globally, there are more than 300 registered MVNOs and it is gradually emerging as a booming market within the telecommunications space.
"The MVNOs may benefit MNOs to expand the market by reaching entirely new or previously unserved/underserved market segments or geographical area," TRAI said in a statement.
"It could also lead to better network utilisation and realisation of economies of scale. The MVNOs may thus help widen and deepen the market of MNO," it added.
IANS
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