COAI seeks clarity on 'virtual' operators
COAI has asked the government to clarify whether Virtual Mobile Network Operators can be permitted to offer services in India.
By TNN |
NEW DELHI: Richard Branson-owned Virgin Mobile���s upcoming partnership with the Tata Teleservices, which will be announced on March 2, is already generating controversy. The Cellular Operators Association of India (COAI), the body representing all GSM players, has asked the government to clarify whether Virtual Mobile Network Operators (MVNOs) can be permitted to offer services in India.
The query comes as there is increasing speculation that Virgin Mobile has sought an MVNO licence in India and the partnership with the Tatas will be based on this model.
The MVNO service, which is currently being offered in the European and US markets, offers telecom services without owning a network infrastructure or spectrum.
It involves a marketing and branding outfit which buys airtime from an existing mobile service provider that owns equipment and licence rights for these services. This model has been complemented to having brought down rates by increasing competition in high-price markets. Indian regulations do not permit MVNO to launch services in the country.
The query comes as there is increasing speculation that Virgin Mobile has sought an MVNO licence in India and the partnership with the Tatas will be based on this model.
The MVNO service, which is currently being offered in the European and US markets, offers telecom services without owning a network infrastructure or spectrum.
It involves a marketing and branding outfit which buys airtime from an existing mobile service provider that owns equipment and licence rights for these services. This model has been complemented to having brought down rates by increasing competition in high-price markets. Indian regulations do not permit MVNO to launch services in the country.
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However, sources close to Virgin Mobile told ET that the UK-based company was not planning an MVNO model, while also adding that the company had not entered into any agreement with any operator to resell airtime. ���Virgin is pursuing an innovative model that is likely to be announced within the next couple of days,��� the source added.
On the other hand, industry sources representing other telcos here say that Virgin���s partnership with the Tatas is an MVNO agreement, disguised in a ���different format���.
���We have learnt that Virgin may offer handsets branded under its name, tariff plans and even recharge coupons ��� they will use the Tatas��� network for this and this is not allowed under Indian regulations, and industry executive with a rival operator told ET.
Globally, Virgin has alliances with existing service providers that allows it to offer services under the Virgin brand. For instance, Virgin Mobile USA, a JV between a the Virgin Group and Sprint Nextel, has around 5 million subscribers, while Virgin Mobile Canada, launched in 2004 is an alliance between Virgin Group and Bell Mobility.
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