BSNL aims Rs 6.50 billion revenue in FY19 from VNO partnerships

State-run telecom operator BSNL aims to garner Rs 6.50 billion in one year through partnerships with virtual network operators (VNOs). The company has tied-up with VNOs Plintron and Aerovoyce, becoming the first telco in the country to launch such services.

The Telecom Commission, which is the highest decision making body of Department of Telecommunications (DoT), has recently removed double taxation for VNOs. The issue of double taxation has been the major reason for muted growth of VNO services in India. There are around 67 firms, which had taken licences for VNOs but most of them are yet to launch services due to cascading taxes. However, now the VNOs only have to pay adjusted gross revenue (AGR) on the value added, a move which may kickstart the VNO framework.

VNOs provide telecom services without owning spectrum or network infrastructure. They usually buy bandwidth from an operator and then sell it to users with their own branding and tariff packages.

"We are targeting all the companies which have got a licence for VNO. In the FY 19, we are aiming to get Rs 5 billion through our partnership with Plintron and Rs 1.50 billion from Aerovoyce," BSNL Chairman and Managing Director Anupam Shrivastava said. He said the change in licence conditions recently has infused a new life in VNOs. The VNOs can make money by offering a lot of value added services to consumers.

VNO's can extend marketing of large telcos in those areas where telcos are not available by offering innovative packages and prompt services. As they cater to small areas, they can help users to familiarise with Internet by handholding.