New Delhi: : Mobile Virtual Network Operator (MVNO) services may soon be permitted in India. The Telecom Regulatory Authority of India (Trai) on Monday circulated a consultation paper seeking views from the industry and other groups on various issues related to introduction of services in India.

MVNO operators do not own telecom networks. They are basically resellers of telecom services. They add features and sell services under their own brand. Virgin Mobile’s ‘franchise’ agreement with Tata Tele to sell services under the Virgin brand had kicked off a controversy with the Cellular Operators Association of India (COAI) objecting to it and many GSM players dubbing it a “backdoor entry”, something that is not permitted in India.

In many countries such as the UK and Hong Kong, MVNO operators account for up to 8 per cent of the total market. In the United States, there are about 60 MVNO service providers. In Australia, there are 29 while in Pakistan there are five.

In some countries, there are no regulations on MVNO services. In its consultation paper, Trai has sought the industry’s view on whether MVNOs should be regulated at all, once permitted, and on whether there should be any specific guidelines for them.

editor@expressindia.com