Videocon Telecom to apply for VNO licence

Vijay C Roy

Chandigarh, September 28

Videocon Telecom is in process of filing an application with the Department of Telecommunication (DoT) for the unified virtual network operator (VNO) licence. 

The licence will enable the company to offer mobile phone services, under its own brand name, to end-users across the country through bulk buying of talktime and data (4G/3G) from the existing operators.

The mobile player will prioritise the VNO rollout in the Punjab telecom circle where it is currently providing GSM mobile services and has a strong 30 lakh customer base (approx 10% customer market share). It is planning to roll out the services in 6-8 months.

“I think the mobile virtual network operator (MVNO) platform opens up opportunity for both, existing telecom players and new players wanting to explore the space. Existing telecom players will benefit by monetising their un-used network capacity, and at the same time, new players can foray in the space without committing huge investments in network and spectrum. Ultimately, the customers get the benefit by greater competition in the telecom sector, while offering more choices to consumers,” said Arvind Bali, CEO, Videocon Telecom.

“We are already in discussions with a few existing service providers for bulk purchase of voice, data and SMS, and we are working on the volume-matrices to arrive at the wholesale arrangement. Our first and foremost priority for the MVNO rollout will be the Punjab telecom circle, where we plan to migrate the base to MVNO and offer them 4G/3G data in addition to current service portfolio,” Bali said. 

The firm believes that the MVNO model itself brings up opportunities that can be leverage upon. The MVNO player does not have to commit huge investments on spectrum and network infrastructure, while it will have an opex business model for them.