Bharat Sanchar Nigam Ltd joined hands with mobile payment provider AdPay in offering services under India’s first Virtual telecom firm, Aerovoyce. BSNL is expecting to garner Rs 500 crore from the MVNO (Mobile Virtual Network Operator).
The state owned telco will get 10-15 crore in the first year for allowing bulk data and voice minutes to AdPay which has first launched MVNO service in Tamil Nadu including Chennai circle over former’s 2G and 3G networks, before pan-India rollout.
“We expect to get Rs 500 crore from the VNO (virtual network operator) business in the first year on an incremental basis,” BSNL chairman and managing director, Anupam Shrivastava said, adding that MVNO offers an opportunity as a good revenue driver.
Users can expect the decrease in cost of telecom services from companies and attractive offers into the market with the entry of MVNOs. Last year, the Department of Telecommunications releases the licence guidelines for MVNOs.
Aerovoyce will also offer SIM card (voice, data, mobile internet), broadband internet, fiber internet and international traveller’s SIM cards. Sivakumar Kuppusamy, chief executive officer of ADPAY said, “We will be investing Rs 300 crore in the next three years for our MVNO services.”
It will target on smaller towns and villages and it’s going to expand to 22 circles or service areas in the coming year with the aim of targeting one lakh customers in the first quarter of service launch.
Anupam Shrivastava said, “It fills the marketing gap. BSNL has robust network, but there was some gap in reaching out to customers. This tie-up will help bridge that gap.” He added, ““BSNL is in advanced stage of discussion with a few more companies that are planning to enter the MVNO service. ADPAY will launch the services in less than six weeks.
MVNO business is expected to account for five per cent of the BSNL’s mobile revenue.”