TRAI recommendations for MVNO introduction in Indian Mobile sector

 
1. MVNO to be introduced as a distinct service provider with its own licensing and regulatory framework

2. MVNO to be issued a license under Indian Telegraph Act

3. Any Indian Company having a networth of Rs. 10 crore for Metro/ Category A, Rs. 5 crore for Category B and Rs. 3 crore for Category C service area, paid up capital of 10% of prescribed networth and satisfying licence conditions such as FDI, substantial equity etc., eligible to apply for MVNO licence.

4. MVNO free to choose its business model (Full or Intermediate or Thin). Typically, a Thin MVNO would offer services in its own brand without any infrastructure and a Full MVNO could set up its own HLR, VLR, IN switches, MSC etc., but not the Radio Access Network (RAN).

5. MVNO to get parented to an MNO in a service area.

6. The license service area of MVNO to be same as that of parent MNO.

7. Arrangement/agreement between MNO and MVNO to be driven by market forces.

8. No limit on number of MVNOs attached to an MNO.

9. Agreement with MNO to be submitted before issue of license to MVNO.

10. MNO to pay the spectrum charges for utilisation of spectrum by MVNO.

11. Entry fees for MVNOs – 10% of MNOs subject to a maximum of Rs. 5 crore for Metro/ Category A, Rs. 3 crore for Category B and Rs. 1 crore for Category C service areas.

12. Annual licence fees same as that of MNO of the service area.

13. Allocation of Numbers, Number portability, Interconnection with other service providers and Roaming to provided by parent MNO.

14. Subscribers to be protected for failure of agreement between MNO and MVNO or MVNO quitting service.

15. No Roll out Obligations for MVNO.

16. FDI limit 74% (same as MNO).

17. Bank Guarantee: FBG – equivalent to two quarters license fees; PBG – 5% of MNO.

18. Restrictions on Mergers and acquisition on similar lines as MNOs.

The full text of the recommendations is available on TRAI’s website (www.trai.gov.in).