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Aakash tablet maker Datawind and Denmark’s Bluetown are interested in offering telecom services as virtual network operators (VNOs), and will apply for the licence once the Centre notifies the new rules.
While Canada’s Datawind is planning pan-India operations, Bluetown, through an Indian arm, will look at Bihar, Jharkhand, the North-East, Haryana, and Rajasthan.
Inter-ministerial panel Telecom Commission had earlier this week paved the way for VNOs, who will be providing telecom services in partnership with a local operator. VNOs will lease bandwidth from operators to sell voice and data services to customers, like a retailer, under its own brand name.
Tariff war?
VNOs will also be able to provide their own billing plans, and are expected to push a tariff war in the market.
“As per reports, the government will put VNO licence in place within a month. We will apply for a pan-India permit and expect to start operation within six months,” Datawind President and CEO Suneet Singh Tuli told PTI.
He said Datawind has already operated as VNO in the UK, Germany and Australia between 2007 and 2011.
“We are rolling out Wi-Fi and broadband projects, in partnership with BSNL. VNO opens an opportunity for us to decide on our own tariff. Our focus is on rural broadband. With VNO, we will provide calling service in over-the-top format.
“We will look at VNO permit in Bihar, Jharkhand, the North-East, Rajasthan, and Haryana to begin with, in partnership with companies like BSNL,” said Satya N Gupta, Country Managing Director of Bluetown. The VNO, however, will not be allowed to set up equipment to directly connect to network of other networks, or a non-partner.
They will be dependent on their partner for connecting with various networks.
Earlier, India had seen Virgin Mobile, which was operating on a VNO model, but at that time such a business model was not allowed. VNO players are expected to reduce marketing and sales costs of telecom companies struggling in the sector, besides sharing some operational expenses too.
How VNOs can help
Both the companies are looking at partnering BSNL. When contacted, BSNL Chairman and Managing Director Anupam Shrivastava said it is a huge opportunity for the state-run firm and VNOs could help in selling telecom services.
“We have huge bandwidth resources. BSNL can supply in bulk. We only lack in marketing and servicing customers, where VNOs can help us,” Shrivastava added.
Look to seal pact with BSNL; await Centre to issue clarification on new regulations
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