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DoT approves entry of VNOs in India with Rs 7.5 crore as overall entry fee

The Department of Telecommunication (DoT) has approved the entry of Virtual Network Operators (VNOs) in India, which will allow them to buy spectrum or infrastructure from existing telcos to provide service under its own brand, reports Economic Times. The DoT said on Monday that it had approved VNO entry into India under the Unified License agreement, with an entry fee of Rs 7.5 Crore for players looking to offer ‘all services’ including internet, and voice.VNOs who don’t want to offer all services will have to shell out Rs 15 lakh for national level Internet services to Rs 1.25 crore for long distance telecom license—as suggested by the TRAI through a recommendation paper released on May 2015.VNO Explained: With the DoT nod in place, VNOs will be able to provide network services to users through a leased underlying network of a Network Service Operator (NSO), which they get at wholesale rates from telcos. They also work as a reseller for telcos, billing directly to its customers without operating technical facilities or tech support, relying on infrastructure providers for both. In reality, VNOs can buy talktime and bandwidth in bulk to sell it to its users.TRAI recommendation of VNO services: In May last year, The Telecom Regulatory Authority of India (TRAI) had issued a recommendation for the creation of Virtual Network Operators (VNOs) in the telecom industry. At that time, TRAI stated that:-VNOs need to be introduced through a proper “licensing framework” in the country.-VNOs that wish to introduce services should be…

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