You May Soon Get 20% to 50% Discounts On Your Mobile Bills

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By: M Rajendran

The stage is being set for a new round of  cellular tariff wars, this time  in a new package. India may soon see independent labels selling telecom services but without their own networks — much like taxi services that lease cars but don’t own them.

The government is likely to issue guidelines for operators to set up “virtual” telecom networks that can offer voice and data connections at upto 50% less for domestic calls and 20-30% less for international ones.

Globally, these are known as “mobile virtual network operators” (MVNOs). Such operators buy network capacity from telecom operators and resell airtime/talk time to retail consumers with the freedom to package their own tariffs. But they must comply with security and other licence-related obligations.

The youth-focused mobile services offered by Richard Branson’s Virgin Telecom in its 2008 tie-up with Tata Teleservices (TTSL) is the closest thing to an MVNO in India. “It was not a MVNO but closest to that description,” said Nirpendra Misra, former chairman of Telecom Regulatory Authority of India. Original post at Hindustan Times.

Wahengbam Rorrkychand

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