Bharat Sanchar Nigam Limited (BSNL) announced the partnership with mobile payment provider AdPay to launch India’s first virtual telecom firm Aerovoyce. The concept of virtual telecom firm or virtual network operator (VNO) is a successful business model in Europe.
The state-run telecom company is expecting to garner at least Rs 500 crore from the Mobile Virtual Network Operator (MVNO) business annually.
Announcing the partnership, BSNL Chairman, Mr Anupam Shrivastava said, “We expect to get Rs 500 crore from the VNO business annually on an incremental basis. in terms of subscribers we are likely to add 10 Lakh new active subscribers in around four quarters.” MVNO gives an opportunity and the BSNL Board has identified it as a good revenue driver.
As per the partnership agreement, Aerovoyce will use the Spectrum from BSNL for bringing better services for Aerovoyce’s subscribers and to avoid clashing offers with BSNL. Aerovoyce is the first Licensee and National VNO/MVNO for pan India.
The esteemed apex bodies of Telecom – Department of Telecom (DoT) in-line with Telecom Regulatory Authority of India (TRAI) approved VNO License during December, 2016. Aerovoyce will offer Voice, Data, Mobile Value Added Services (VAS), Integrated Wallet/Payment Solutions and Entertainment Contents.
Aerovoyce SIM will offer a best value pack for both Voice and Data for all kind of subscribers in all segments. It will concentrate Enterprises end-2-end solutions with enhanced facilities. Mr Shrivastava admitted that the Jio’s foray made competition tougher for MVNO business and despite that the market remains lucrative for such firms.
“AdPay will be spending Rs 300 crore in three three years on MVNO rollout and plans to rope in at least 10 lakh customers in rural as well as tier-II and tier-III cities of the country,” Aerovoyce founder and chief executive Sivakumar Kuppusamy said.
In terms of target segments for such expansion, Mr Sivakumar mentioned that his company will surely target SMEs (Small and medium enterprises) of tier 2 cities as a lot of business oriented action is happening in non metro towns of the country.
The company plans to offer recharges through retail stores, online and at airports with instant customer on-boarding with a 60-minute of SIM activation.