Telecom commission to allow Virtual Network Operators in India

Virtual Network Operators (VNOs) are companies without any infrastructure, providing telecom services by buying bandwidth from established telecom operators.

Published Date
29 - Mar - 2016
| Last Updated
29 - Mar - 2016
 
Telecom commission to allow Virtual Network Operators in India

The telecom commission in India has agreed to allow Virtual Network Operators (VNOs) in the country. This will allow companies that do not have infrastructure in place to provide telecom services by buying bandwidth from established telecom operators, and resell it under their own brand. This will also allow established telecom operators to monetise any unused bandwidth.

According to a report by Business Insider, the telecom commission approved a new category for a unified license for VNOs, at entry fees of Rs. 7.5 crore for companies aiming to provide all services. For others, it would range from Rs. 15 lacs for national-level internet services to Rs. 1.25 crore for a long-distance telecom license. Once these permits are provided, it would remain valid for 10 years. It was also reported that mobile VNOs will not be in direct competition with telecom operators, as they would only target niche market segments such as retail, business, roaming, and so forth. Customers would also benefit from VNOs, as the services provided by these companies may be less expensive.

Shrey PachecoShrey Pacheco

Writer, gamer, and hater of public transport.