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India: MVNO definition dispute Print E-mail
Tuesday, 10 June 2008

Bharti Airtel and Reliance Communication (RComm) disagree with the Telecom Regulatory Authority of India (TRAI) definition of a mobile virtual network operator (MVNO), which involves the "sharing of spectrum" between a mobile network operator and an MVNO. The operators have requested a review of the policy.

Bharti and Rcomm believe that the spectrum sharing required by TRAI’s definition of MVNO implies ownership or co-ownership. The operators believe that if the MVNO has an ownership stake in the spectrum, that would amount to spectrum trading, which is currently not allowed in India. An MVNO with spectrum would no longer be a virtual network operator, but a facility-based operator, making it indistinguishable from a unified access service provider, the two operators argue.

Internationally, MVNO definitions typically do not mention spectrum sharing. Both Bharti and RComm want TRAI to specify that an MVNO does not own spectrum. Bharti and RComm submit that MVNOs were successful in markets that have only a few competitors and where average revenues per user were higher than average. In India, the mobile sector is highly competitive and tariffs are among the lowest in world.

Bharti wants TRAI to allow MVNOs to offer only basic services until the market matures.

Source: Financial Express - WDR/Intelecon Regulatory News.