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Japan’s NTT Comm gets a VNO license to offer managed IT services

Japanese telecom service provider NTT Communications has acquired a Virtual Network Operator (VNO) license under the International Long Distance (ILD) segment. The VNO license was awarded to NTT Communications India Network Services (NTTCINS), the Indian subsidiary of NTT. The company will use the license to expand its enterprise networking solutions and other managed IT services in India, which is currently being offered via its affiliate company named Netmagic Solutions.

Note that in this month, NTT Communications had acquired a 100% stake worth Rs 533.83 crore in Netmagic after it received approval from FIPB. Mumbai-based Netmagic provides infrastructure services like CDNs, Hosting, Managed Security, Cloud solutions among others. It also has 7 datacenters located in Mumbai, Bangalore, Noida and Chennai. Starting from July, Netmagic will additionally include hybrid Virtual Private Networks (VPNs) services in its catalog. Basically, NTT is bringing “Arcstar Universal One International Network Services” to India via the VNO route and clubbing it with Netmagic.

Currently, Netmagic claims to serve 2000 customers globally including firms from industries like financial services, telecom, online media, online trading, and travel among others

NTT looking at broadband and IT solutions

Note that Netmagic also holds an ISP license, which it could possibly to offer internet services to home users especially at a time when more telcos are investing in broadband and fiber. NTT had acquired a National Long Distance License in December 2015. At that time, the telco said that it will look at launching “IP-VPN and other reliable, high-quality connectivity services” for businesses. Although these services are limited to enterprise customers, NTT might look into entering the broadband sector and open its services to home users after trouble with its Tata Docomo brand in India.

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MVNO space is warming up

Note that this is the second operator in the country to receive a VNO license. Chennai-based Aerovoyce launched its broadband and international calling services via the MVNO route last week. The company had received approval from DoT last month. As of October last year, DoT received applications from 60 companies that were looking to launch MVNO services. A list here. Reports have mentioned that tablet maker Datawind and retail giant Future Group may also launch an MVNO. Videocon had also mentioned that it might re-launch telecom service in India via MVNO route.

Any company in India can acquire an MVNO license with an entry fee of Rs 7.5 crore for offering both data and voice. Pan-India MVNOs will have to shell out Rs 15 lakh as entry fee, and up to Rs 1.25 crore for both nation and international telecom license.

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