After the consolidation, the telecom sector is once again going to enter an exciting phase, heralding lower tariffs.
After the consolidation, the telecom sector is once again going to enter an exciting phase, heralding lower tariffs. Thanks to new virtual network operators (VNO) licence guidelines released last week, new players are expected to enter the Indian telecom sector.
DataWind, erstwhile maker of Aakash tablet, has confirmed that it will apply for VNO licence and launch services before Diwali.
Experts are expecting the entry of at least 2-3 more players in the space. Markets are abuzz that American telecom giant AT&T and Virgin Media are looking to enter India through the VNO route.
VNO offers voice and data services under their own brands without owning network or spectrum. They buy voice and data in bulk from the licensed telecom operators and sell them under their own brand enhancing competition in the market.
VNO usually provide tariffs which are less than traditional players and offer differential services like targeted towards youth or other segments accompanied by huge marketing blitz.
“Despite significant growth in telecom penetration over the last few years, India remains a country with almost 50 crore without access to telecom services, and almost one billion people without internet ac-cess,” said Suneet Singh Tuli, CEO and founder, DataWind. “We are already in discussions with network operators and intend to file our application for a VNO license shortly,” he said.