70 companies apply for virtual network operators (VNO) license

Around 70 companies have applied for Virtual Network Operators license to Department of Telecommunications (DoT), government of India.

According to industry insiders, the list of 70 companies does not include any large corporates but majority of VNO applicants are interested in starting ISP services.

On the operator front, BSNL has shown active interest in joining hands with VNOs as it will help in extending its network to new customers and also help in increased capacity utilization of its mobile network.

Initially Datawind and Oxigen had shown interest for virtual network operators license but VARINDIA could not confirm whether they applied for VNO license.

In June, the DoT had issued guidelines for grant of Virtual Network Operators license to be finalized in 60 days. As per the guideline there was no restriction on the number of virtual network operators license per service area and the license was to be issued on a non-exclusive basis for a period of 10 years.

The applicant can apply for VNO license for services like: unified license VNO (all service); access service (service area-wise); ISP - Cat A; ISP - Cat B; ISP - Cat C; NLD service; ILD service; GMPCS servce; PMRTS service; VSAT CUG; INSAT MSS-R; and resale of IPLC service.

As per DoT, the VNO guidelines are: applicant must be an Indian company; one company can have only one VNO license but they can apply for more than one service subject to the fulfillment of all conditions; foreign direct investment holding in the company should be as per FDI policy announced by the government of India; VNOs that enter the network would do so based on arriving at a mutual agreement between an NSO and VNO; VNOs shall be allowed to create their own service delivery platforms irrespective of customer service, billing and VAS; and no spectrum shall be assigned to the VNOs.

Virtual Network Operators will be charged one time non-refundable entry fee for authorisation of each service and service area. The total amount of entry fee will be subject to a maximum of Rs 7.5 crore. In addition to entry fee, an annual license fees and spectrum usage charge of 8 per cent will be charged as per AGR.

As per the guideline, no one VNO and another NSO (network service operator) and a VNO and another VNO in the same service area directly or indirectly shall have not any beneficial interest in each other.