Virgin Telecom may launch services here

NEW DELHI: Richard Branson-owned Virgin Telecom’s plan of launching mobile services in India via the mobile virtual network operator (MVNO) may finally take off.

This is because the Department of Economic Affairs and the Investment Commission headed by Ratan Tata have recommended that MVNO be permitted amongst the new services that telecom companies can provide.

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.