DoT seeks TRAI view on virtual network operators

The Department of Telecom has asked for TRAI’s view on delinking telecom services licences from network operations.

This is being done because DoT wants to allow entry to virtual network operators, a new category of players who will take bulk infrastructure capacity from existing telecom companies and then resell it.

This will help operators better utilise their network infrastructure. It will also cut down duplicate network infrastructure creation as players will be able to take capacity from each other. For consumers, this will help create more choice in the market.

“Virtual network operators will give a fillip to broadband adoption because of the increased competition and consequent increased affordability of broadband services. Rural penetration and teledensity improvement are likely to happen due to nimbler, smaller, more flexible and totally focussed service providers,” said an operator.

However, the proposed spectrum sharing policy being looked at by DoT may need a review.

“The network operator’s ability to share active infrastructure to multiple operating companies will lead to a kind of spectrum sharing. Therefore, the proposed sharing policy needs to take this into account,” said an industry executive.

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