Why VNOs are necessary in India?

The Introduction of VNOs will trigger a very high level of competition in the telecom market, by providing more choice to the end consumers. This will ensure better penetration of telecom service to the end customers. This will also encourage lower rates and introduction of new & innovative services including machine-to-machine (M2M) communication services. There are many un-served and under-served areas where basic telecom connectivity, internet and broadband services need to be provided.

There are several areas where VNOs can be useful. They can provide localized services in small towns and rural areas using the networks of existing NSOs or by laying last mile connectivity. The VNO model of service delivery can also be effective in structurally defined geographic areas like airports or smart cities. A local entrepreneur with small investment can use this opportunity for providing various services to a number of villages in few blocks or District by becoming a VNO. VNOs may have ability to sell the services of existing NSO(s) , beyond their existing marketing reach.

Under the ‘Digital India’ program the Government has identified three key areas viz. ‘Digital Infrastructure as a Utility to Every Citizen’, ‘Governance & Services on Demand’ and ‘Digital Empowerment of Citizens’. It aims to create infrastructure including public wi-fi hotspots for citizens and wi-fi in 2.5 lakh schools and all universities. This program envisages VNOs for service delivery and mandate communication infrastructure in new urban development and buildings. With the increasing deployment of Smart Grids, Smart Transportation, Smart Cars, Smart consumable durables, Machine–to-Machine (M2M) communication and Internet of Things (IoT) converged technologies are coming to occupy centre stage in peoples’ lives. This will require that the machines or the equipment is embedded with a device at the manufacturing stage itself which has the capability of communicating with either other devices or a central controller through wireless or on IP platform. With the introduction of VNOs, a system integrator for such a network can acquire a VNO license and get into an agreement with a TSP for such services.