Virtual network operators struggling to launch services

Virtual network operators are finding it difficult to operate in the Indian telecom market because of lack of policy clarity and due to some licence conditions.

Virtual network operators provide telecom services without owning spectrum or network infrastructure. They buy bandwidth from mobile operators and sell it to users with their own branding and tariffs.

Licence conditions require virtual network operators to pay a fee of 8 per cent of their adjusted gross revenue, similar to mobile operators. Also a virtual network operator can tie up with only one mobile operator for a particular service.

The government has issued licences