The Hindu Business Line : BT eyes mobile virtual network operator route here

New Delhi, Dec. 17 BT (formerly British Telecom) is planning to make a foray into India’s booming mobile segment through the Mobile Virtual Network Operator (MVNO) route once regulations permit.

MVNOs do not own any infrastructure or spectrum but buy talk time on wholesale rate from existing mobile operators and then resell under their own brand.

BT is already in this business in Europe for major mobile operators including Vodafone. At present, MVNOs are not allowed in India but indications are that the Government may change its policy in favour of it.

Mr Gordon Moir, The Chief Counsel and Global Regulatory Head of BT Global Services, told Business Line, “We definitely want to be an MVNO in India if it is allowed. India’s mobile segment is too significant a market for us not to be present in there.”

Wide reach

The company at present offers domestic and international connectivity solutions to the enterprise segment in the country. By becoming an MVNO, BT will not only be able to offer wireless communication services to its existing customers but also move into the high growth retail telecom consumer segment.

A number of other international companies, including Virgin Mobile, are eyeing the Indian MVNO segment. Even Indian telecom companies, which are planning to expand to get a pan-India presence, are interested in becoming MVNO as it is a cheaper and faster option to reach out to a larger customer base, than having to roll out their own network.

New players waiting to get a licence may also adopt this strategy. 3G will also create the opportunity for new entrants to use the excess bandwidth to sell discounted voice and data services. In addition, it has created the opportunity for the development of more compelling content. This content can be pitched at specific sub-markets creating lucrative niche market opportunities.

The MVNO approach allows for these niche markets to be developed either as standalone companies or companies linked to parent host networks.

For the consumers, the introduction of MVNOs could bring cheaper tariffs and more competition in the mobile segment. DoT officials indicated that a policy to allow MVNO would soon be formulated especially since the model enables efficient usage of spectrum.