Virtual network operators get telecom panel's nod

These will offer voice, data services without owning network or spectrum

Clearing the way for the entry of telecom service retailers, the inter-ministerial panel Telecom Commission on Monday approved a long-pending proposal on virtual network operators, which will offer voice and data services under their own brands without owning network or spectrum.

"The Commission has approved a Telecom Regulatory Authority of India (Trai) recommendation on virtual network operator (VNO) after including clarification it provided. It will need the telecom minister's approval. A new licence will be issued for this. It should be implemented within a few weeks," an official source said.

"VNO will be able to offer all telecom services provided by a telecom operator with which it has partnered. It can sell services of more than one operator," the source said.

A VNO leases bandwidth from various telecom operators to provide voice and data services to customers.

These would offer all services permitted under Unified Licences - permits that were issued in 2013. These players are expected to reduce marketing and sales costs of struggling telecom companies, besides sharing some operational expenses, too.

"VNO will be able to invest in setting up mobile towers and other elements in network required for providing services. However, it will not be able to sign a deal directly to interconnect infrastructure laid by it with other telecom operator," the source said.

These players may also offer some relief to BSNL and MTNL, which have already adopted a revenue-sharing model focusing on reducing capital expenditure. However, these companies will need to change their old licence to Unified Licence.

"VNO will be able to integrate service and offer it to customer as it wants. There will be no limit on integration and offering of services from licence or government that will be available shortly. VNO on its own will be free to use technology required for offering various services," the source said.

In case a VNO has partnered with multiple service providers, it can offer voice call service of one and data service of the other player.