TRAI for separate licence, 74 pc FDI for MVNOs

The model has become popular in mature telecom markets, where virtual operators help the parent add subscribers.

TRAI said MVNOs would also help Indian firms facing an increasingly competitive market. The challenge was to optimally utilise the available resources while ensuring competition and availability of services at affordable price, the regulator recommended on Wednesday. The introduction of MVNOs should help the MNOs mobile network operators widen and deepen their markets besides promoting competition in the market.

There were currently about 360 planned or operational MVNOs worldwide, TRAI said, with countries in Europe and the US having the largest share.

Firms interested in operating as an MVNO would have to pay about 36 million for a nationwide entry licence. Annual licence fees would be the same as those paid by mobile operators.

The regulator has recommended a foreign holding cap of 74 per cent in MVNOs, in line with other telecom services. Mobile operators would be free to lease spectrum to as many MVNOs as they wanted, the regulator said.