What do you understand by mobile virtual network operator (MVNO)? Do you think there is a need to introduce MVNO in the Indian Telecom Market? Discuss.

Mobile Virtual Network Operator (MVNO) is an entity that does not have licensed telecom spectrum but still can provide wireless communications services. MVNO leases wireless capacity from a third-party mobile network operator (MNO) at wholesale rates and resells it to consumers at reduced retail prices under its own business brand.
Yes, in my opinion this is the right time to introduce MVNOs into Indian Telecom Market because there are several advantages of doing so. Firstly, MVNOs provides opportunity to telecom and non-telecom companies to enter in the communication sector. Secondly, the services provided by MVNOs add value to the standard voice service provided by Mobile Network Operators (MNOs). Thirdly, they increase market presence of an operator through sale of value added services like DTH packages and internet facilities. Fourthly, they help telcos in increasing the Average Revenue per User (ARPU). Fifthly, MVNOs are capable to facilitate rural areas of the countries with telecom and internet services at much lower OPEX and CAPEX.
From above mentioned advantages we can conclude that introducing MVNOs into the Indian telecom market will not only boost telecos in the country but also prove a game changer for Digital India programme and contribute in good governance.
(207 words)

Question for UPSC Mains:
What do you understand by mobile virtual network operator (MVNO)? Do you think there is a need to introduce MVNO in the Indian Telecom Market? Discuss. (250 Words, 15 Marks)

Published: January 25, 2018 | Modified:June 27, 2019

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