TRAI Recommendations Regarding VNOs

TRAI Recommendations Regarding VNOs

Question: A proper licensing framework is needed for Virtual Network Operators/VNOs in the telecom sector. Discuss the summary of TRAI recommendations for VNO in the telecommunications sector.

• VNOs should be introduced through a comprehensive licensing framework in the telecom sector

• Mutual agreement should be there between VNO and NSO/Network Services Operator

• VNOs should be permitted for services notified in UL/Unified License

• Market should divide the terms and conditions of infrastructure sharing between NSO and VNO

• VNOs should set their own network equipment without interconnection with NSO namely

- BTS/Base Transceiver Station
- BSC/Base Station Controller
- MSC/Mobile Switching Centre
- RSU/Remote Switching Unit
- DSLAMS/Digital Subscriber Line Access Multiplexer
- LAN/ Local Network Area switches

• Equipment owned/installed by VNOs should meet technical standards prescribed by standardisation bodies

• For aspects like customer service, billing, VNOs can create their own service delivery platforms

• MSOs/Multi System Operator and LCOs/Local Cable Operators providing broadband services should get VNO license

• Once IP-I service provider has been registered, MSOs/LCOs may also share cable infrastructure with VNOs

• There should be a separate category of license named UL/Unified License VNO with 2 parts:

- Part 1: General terms and conditions for VNO license
- Part II: Terms and conditions for service authorisation of VNO

• Resale of IPLC/International Private Leased Circuit under UL should be shifted to UL VNO licensing

• Pan India, service wise authorisations should be granted under UL VNO

• Initial duration of license of VNO should be fixed for 10 years extendable further for 10 years at a time by licensors

• Duration of license can be reviewed after 3 to 4 years

• Agreement of VNO with NSO will end with license expiry of either party

• There should be no restriction on number of VNO licensees for a service area

• VNOs should be allowed to have agreements with more than one NSO; NSO should allocate numbering range to VNO from that allocated by licensor

• VNO should be a company registered under Indian Companies Act 1956

• No roll out obligations should be casted upon VNOs

• VNO should pay LF/ License Fee as percentage of AGR/Adjusted Gross Revenue

• VNO should pay SUC/Spectrum Usage Charges for wireless services offered to customers; it should be same rate as parent NSO

• Once UL VNO comes into place, there will be QoS/Quality of Service regulations to be complied by NSOs and VNOs

• VNOs should comply with Telecom Tariff Orders issued

• MNP/Mobile Number Portability should be eased for MVNO subscribers through MNP gateway of parent NSO

• Regulations, orders and directions issued by TRAI for MNP shall apply to VNOs

• Dispute resolution of VNO shall be decided by TDSAT/Telecom Dispute Settlement Appellate Tribunal

Facts and Stats

• VNO is a reseller for telecom operators and direct bills to customers

• VNOs will offer all telecom services permitted under fresh license

• VNO ensures customer pays only one bill for units offered

• More than one operator’s services should be allowed by VNOs and they should create their own service delivery platform for value additions

• TRAI will have the right to protect interests of customers and telecom sector as well
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