The department of telecom (DoT) is likely to issue guidelines for mobile virtual network operators (MVNO) by the end of this week. A senior official from the ministry told Financial Chronicle that the department had finalised the guidelines, which would be issued by the end of this week. DoT officials are expected to meet on May 28 and announce the guidelines. The differences between DoT and Telecom Regulatory Authority of India ( Trai) have been sorted out, the official added.

Trai had sent its recommendations on the MVNO guidelines to the department on March 12, refusing to endorse the decision to allow MVNOs to tie up with more than one operator in an area for their services. The recommendations stated that, “MVNO cannot have any spectrum allotment.

The payment of spectrum charges by MVNO should not establish any right at a later date. This aspect may be legally examined.”

The department has reviewed the recommendations submitted by Trai and has decided to make certain changes in previous regulations submitted by DoT.

Global telecom operators, including Telekom Malaysia, Mobile ESPN and ValueFirst have shown interest in the Indian MVNO space. Verizon Wireless and France Telecom, have even approached the telecom regulator to open up

this segment for foreign players.

The department has decided to peg the entry fee for MVNO at a maximum of Rs 85 crore for a pan-India license. The maximum entry fee for Metro and circle A states has been pegged at Rs 5 crore, Rs 3 crore for circle B states and Rs 1 crore for Circle C states. The commission has set the floor price at Rs 1 crore for metros and circle A states, Rs 50 lakh for B circle states and Rs 25 lakh for C circle regions.