DoT to refer mobile virtual network issue to Trai

TELECOM TANGLE

The Department of Telecommunications (DoT) will refer the issue of permitting Mobile Virtual Network Operators (MVNOs), which are not allowed under the existing norms, to the Telecom Regulatory Authority of India (Trai).

The issue of allowing MVNOs to operate in the country was pending before the licencor, which has now been passed over to the regulator, sources close to the development said.

MVNOs neither own spectrum nor infrastructure. However, these companies provide mobile services by leasing of spectrum and infrastructure from others. However, this is not permitted under the existing telecom regulations.

The move comes after the Cellular Operators Of Association of India, the GSM operators' body, moving the DoT alleging that UK-based Virgin Mobile's plans to offer services in India were under the MVNO route.

However, Tata Teleservices denied this, with the company claiming that it was only using Virgin brand to provide CDMA-based telecom services.

The DoT was willing to permit the services in India, with its secretary Siddartha Behura earlier stating that it would ask the regulator to come out with recommendations on allowing MVNOs. However, according to sources, the finance ministry was not in support of the service.

Permitting MVNOs would result in global telecom majors coming into the country and starting operations, which will result in increased competition and being beneficial to subscribers. This would also help the country achieve its target of 500 million subscribers by 2010.