Friday, 3 April 2009

International players eying Indian telecom market via MVNO route - India

A green signal from the government to allow MVNOs in India has left many companies considering the launch of their mobile offerings. It is understood that Ericsson and Nokia will soon start their mobile service, which will provide them an edge over others as they would be present throughout value chain (handsets, back office, network equipment and operator services).

Various others, such as Telekom Malaysia, Mobile ESPN, BT and ValueFirst (who to this point have claimed to be an MVNO within the messaging market) have shown their interest in launching MVNO services in India. As reported in last week’s issue, the Department of Telecommunications (DoT) has set a maximum MVNO entry fee of INR 850 million (USD 16.4 million) for a pan-India licence. The fee for metro and circle A states will be INR 50 million (USD 0.95 million) while the licence fee for circle B and circle C states has been fixed at INR 30 million (USD 0.57 million) and INR 10 million (USD 0.19 million), respectively.