The DoT seems to have given a clean chit to the Tata-Virgin Mobile joint venture, even as the industry has been making noise about it being an MVNO service.
Says it only sought details of the deal
NEW DELHI: The Department of Telecommunications (DoT) seems to have given a clean chit to the Tata-Virgin Mobile joint venture, even as the industry has been making noise about it being an MVNO (mobile virtual network operation) service, something that is not permitted in the country.
Although a letter (supposedly sent out from DoT) directing Tatas not to launch the Virgin Mobile service till further notice was the media buzz on Tuesday, a day later DoT secretary Siddhartha Behura clarified that, “DoT has not sent any letter to the Tatas asking them not to launch the Virgin Mobile service.” Not only that, the government is perhaps thinking of making MVNOs legal too.
Calling the “leaked letter” a forged document, the DoT secretary said that the government has only sought details of the Tata-Virgin Mobile deal, following “industry hue and cry that it may be an MVNO service”. Behura said that it is unlikely that the Tatas have violated the telecom licence conditions. “Going by the reputation of the Tatas, they would have consulted their lawyers and advisors before announcing the deal with Virgin Mobile,” according to Behura, who was speaking to the media on the sidelines of an MTNL conference in the capital.
On a query whether “other” MVNO requests are pending with the government, Behura shot back: “Are you assuming that the Tata-Virgin Mobile JV is an MVNO?” He added: “I heard of an MVNO for the first time only now (after the industry hue and cry).”
Will there be a new government law to permit MVNOs in India? “We can consider a policy permitting MVNOs,” Behura said, without giving any timeframe. It could be six months or one year, or may be never, he said. “The government is open to the idea.”
There have been several requests for MVNO services in India. MVNO, a popular concept in the West, is all about offering mobile services without owning infrastructure or airtime.
DoT is expected to refer the matter of MVNOs to the telecom regulator TRAI soon, and a government policy would depend on the TRAI recommendations.
When specifically asked about the government scrutiny into the Tata-Virgin JV, Behura said: “We will not really vet the deal. It is not necessary for us to vet every commercial deal.” However, because of the hue and cry that it may be an MVNO service, DoT decided to ask for details of the deal. “They can launch the service, unless it’s a violation of the licence condition,” Behura said. And the government doesn’t seem unduly concerned over the matter.
On Sunday, the Tatas and UK-based Virgin group announced their franchisee agreement. Through this pact, Tata Teleservices would offer Virgin Mobile services. Although the service is similar to an MVNO), the JV between Tatas and Virgin is structured as a franchisee agreement. From a legal standpoint, a franchisee agreement cannot be banned unless it is proved to be an MVNO service.
m_nivedita@dnaindia.net
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