The Telecom Regulatory Authority Of India (TRAI) has allowed Mobile Virtual Network Operators (MVNO) to start their services in India. MVNO buys air time from existing players and delivers services by making new brand. The current move by the government will allow operators to launch mobile services without having their own mobile network.

There are about 360 MVNOs in the worlds which are providing cellular services. The companies such as the UK’s Virgin and BT Mobile and KDDI of Japan are delivering mobile services as per the MVNO model. The approval will make the telecom market more competitive. It will provide changes to some international companies to launch their services in India through MVNO.

TRAI will charge some fees to launch such services in India. It will charge of Rs 5 crore for Metro/Category A, Rs 3 crore for Category B and Rs 1 crore for Category C. the companies are subjected to the fees of Rs 75 crore for launching MVNO services in the entire country. 

The Indian telecom players have expressed hope that entry of MVNO will not affect their business. The director general of COAI, TV Ramachandran added that MVNO are successful in the markets where tariffs are very high. Indian telecom players such as Bharti, Vodafone and RCOM are already offering services at very low prices. 

MVNOs will entitle to all current norms of acquisitions and mergers. The president of Indian Cellular Association, Pankaj Mahendroo said that entry of MVNO in India will also increase the sale of music and internet-enabled phones in India.