In Short:
The Department of Telecommunications (DoT) asked TRAI for input on allowing Virtual Network Operators (VNOs) to connect with multiple Network Service Operators (NSOs) for access services. TRAI held consultations, received feedback from stakeholders, and held discussions to finalize recommendations. They suggest removing any limit on the number of NSOs that access service VNOs can connect with for wireline services. VNOs should also be able to use different NSOs for wireless and wireline access services. These changes aim to improve the quality of wireline services and offer more flexibility, ultimately benefiting telecom consumers in India.
Key Recommendations Unveiled for Virtual Network Operators in India
The Department of Telecommunications (DoT) took an important step on July 7, 2023, by reaching out to the Telecom Regulatory Authority of India (TRAI). The letter focused on the topic of ‘Connectivity to Access Service VNOs from more than one NSO’, emphasizing the need for expert recommendations under Section 11(1)(a) of the TRAI Act, 1997.
Consultation and Stakeholder Engagement
In response to this request, TRAI released a consultation paper on February 23, 2024, aimed at gathering insights from stakeholders. The consultation saw participation from nine stakeholders, with four providing counter-comments. To further foster discussion, TRAI organized an engaging open house on August 5, 2024, where participants could share their views on the matter.
Final Recommendations from TRAI
TRAI has now finalized its recommendations, building upon the feedback received from stakeholders along with its own detailed analysis. According to the current licensing framework in India, Virtual Network Operators (VNOs) can enter into agreements with multiple Network Service Operators (NSOs) for all services, except for access services—those requiring numbering and unique customer identification. However, the new recommendations aim to change that.
The crux of TRAI’s recommendations is to eliminate the cap on the number of NSOs from which an access service VNO can secure connectivity for providing wireline access services in a specific licensed service area (LSA). This is a significant move toward modernization and flexibility in the industry.
Flexibility for Wireless and Wireline Services
Moreover, TRAI suggests that access service VNOs should have the freedom to connect with one NSO for wireless access services while partnering with one or more NSOs for wireline access services within the same LSA. This new approach will offer VNOs additional flexibility on top of the existing regulatory structure, allowing them to mix and match their service providers according to operational needs.
Aiming for Improved Quality of Service
TRAI believes that implementing these recommendations will significantly enhance the quality of wireline access services across the nation. This approach also opens up opportunities for access service VNOs to obtain connectivity for both wireless and wireline services from different NSOs. Consequently, this will empower VNOs to provide a superior range of services to telecom consumers in India.
