How VNOs Can Help BSNL Drive Revenue, Market Share

Virtual Network Operators Association of India (VNOAI) team met Chairman & Managing Director of BSNL to propose and review the new future roadmap for building a strong marketing relationship between VNOs /MVNOs and BSNL. The proposed road map will give BSNL an additional wholesale revenue stream from VNOs operating on its existing network without any additional expenses and will enhance its market share by 3%.

VNOs will provide the much-needed competition, in the current duopoly market, where customers have limited choice and have to deal with poor quality of services. VNOs will also empower brands to offer an extension of mobile services to increase customer loyalty and engagement apart from adding an additional revenue stream.

VNOs will also bring differentiation and customised services to customers in Niche segments. For example - With the convergence of Banking and telecom, we may see many innovative Banking and Fintech MVNOs riding on the BSNL network duly marketed by the VNOs.

Similarly for rural, converged Broadband with mobile bundled services can be delivered to the rural population by the VNOs, making the vast network reach of BSNL in the rural areas duly serviced by the rural VNO brands.

VNOs are actually a boon for MNOs and increase their wholesale revenues, helping recover the 5G capex investments of MNOs

R.K Upadhyaya Director General VNOAI said "Currently large Telecom network capacities are underutilised due to low customer base. The relationship proposed by VNOAI to BSNL will help recover the spectrum cost invested by Government of India in the bailout package and provide enhanced revenue growth figures for next 6 years across market segments at no additional cost to BSNL."

He added "Globally VNOS are very successful and Telecom Service Providers/ Mobile Network Operators and VNOs coexist utilizing innovative new technologies to serve the customers effectively. Considering that Government of India has infused significant public money into BSNL there needs to be specific targets and time frame for BSNL to increase its market share and monetize the investments. There is thus a need for BSNL to make the DOT's VNO policy successful in India."

Currently, State owned operators are plagued with Low ARPU, declining revenue & low market share with lack of 4G/5G rollout is impacting them adversely. This is despite the fact that BSNL is uniquely positioned to launch VNOs as being a government owned entity it has massive unutilized infrastructure in Tier 2/3 cities and Rural India. VNOs can help in better utilization of the unused BSNL capacity, generate additional revenue with better ARPU and improve profitability of BSNL.

VNOs do not compete with MNOs as they operate on a B2B model and actually help MNOs in gaining "Net new" market-share by acting as a wholesale partner. VNOs facilitate better utilisation of infrastructure & in opening new revenue streams e.g. 5 G focused private network solutions via MVNOs. VNOAI feels, going forward, BSNL's policy should be to work as an aggressive entity to bridge the gap created due to the current duopoly market in India due to exit of most of the private MNOs and bring more competition.