The Hindu : National : ‘No spectrum for mobile virtual network operators’

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Wednesday, Jun 18, 2008
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‘No spectrum for mobile virtual network operators’

Special Correspondent

It’s only for licence holders: TRAI

New regulation norms proposed
Changes sought in definition of MVNO

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) on Monday said the mobile virtual network operators (MVNOs) would not be allowed to own spectrum, as radio frequency was allotted to licence holders only.

TRAI chairman Nripendra Misra told journalists at an “Open House” here that MVNOs which offered mobile services by tying up with local operators could not claim ownership of spectrum as it was allotted only to licence holders by the Department of Telecommunications. However, they would be allowed to use spectrum to offer their services, he added.

Globally, MVNOs purchase air time on wholesale basis from the mobile network operators (MNO) and then use it to provide services through their own brand. In India too, MVNOs have started offering services under their brand name by tying up with mobile operators.

Lock-in period

On regulating the functioning of MVNOs, Mr. Misra said there should be some lock-in period and a security deposit for MVNOs so that they could work under a set of guidelines and were not allowed to exit business before the stipulated lock-in period.

The TRAI is examining the feasibility of mobile virtual network operations in India and has sought feedback from telecom operators and other stakeholders.

In its consultation paper, the TRAI said: “MVNO licensee is an entity that does not have an assignment of spectrum for access services but can provide wireless [mobile] access services to customers by sharing the spectrum of the access provider.”

Operators’ demand

In their response to TRAI’s suggestion, leading mobile operators including Bharti and Reliance Communications had sought changes in the definition of an MVNO.

The operators said an MVNO did not have an allocation of spectrum. The operators want a commercial arrangement between MVNOs and mobile operators for providing the telecom services to the end user, which is the essence of any MVNO’s business.

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