India's telecom regulator has recommended opening up the nation's communications sector to virtual network operators.
The Telecom Regulatory Authority of India (Trai) has suggested that a new category of unified license be created for VNOs, the Economic Timesreported.
Trai is recommending an entry fee of 75 million rupees ($1.18 million) for VNOs looking to offer all services, or a fee ranging from 1.5 million rupees for a license to provide national-level internet services to 10.25 million rupees for an ILD telecom license.
According to the regulator, VNO licenses should have a 10-year term, VNOs should be allowed to set up their own equipment where interconnection isn't required and there should be no cap on the number of VNO licenses issued in a single service area.
In making the recommendation, Trai said opening the market up to VNOs will provide more choice for consumers and open the sector up to new players.
Analysts believe that the move would be a win-win for consumers, customer-facing operators and VNOs. It could open up new sources of revenue for India's cash-strapped operators.