The DoT is supposed to release the Information Memorandum on 3G Auction which contains other related information as well. The Document is not yet officially released but channel sources have been leaking information. Here is one I have got just seconds ago.
In a development that will lead to further increase in already intense competition in the Indian telecom industry and also ensure that the third generation (3G) services segment too gets equally heated up, the department of telecommunications (DoT) is understood to have decided that mobile virtual network operation (MVNO) would be applicable to both 2G and 3G services.
The DoT is likely to release the official information memorandum on the 3G auction later on Tuesday which is likely to clarify the issue of MVNO. Under the MVNO regime, any company can offer telecom services without actually having any spectrum on its own.
In other words, MVNO would mean that not only the telcos which actually have the spectrum would be providing services, but those who get a designated license from the DoT can rent spectrum from a telco which has spare radio frequency and start offering services.
The need for MVNO is being felt with the launch of 3G services to ensure a strong competition in the segment. While there are close to 8-10 players licensed in most of the category A circles, the number of private players in the 3G segment have been restricted to four by the government. The move is aimed at ensuring aggressive bidding. However, it may also result in lower competition in the segment. Nonetheless, if MVNO is introduced, more players would be able to offer specialized services even without owning the spectrum, thus keeping the 3G space competitive.