India MVNO Initiative - Device Players Going to Rock

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As per the report published in new paper today, government received 80 request to get the license.
Under MVNO license one can buy the minutes and data from mobile service providers and resell it to end consumer under their brand name. 

Few years back Virgin Mobile attempted the same but failed miserably. 

In a current scenario, when wireless subscribers touched around billion and major chunk of users are still using feature phone will help potential MVNO players in big way.

Currently Device manufacturer are the center of attraction and offer bundled data to their buyer as value add. In that process mobile service provider acquire data user at much lower cost.

Entry of MVNO will help volume device manufacturer present both in feature phone and Smartphone to dominate the market.

The brands like Micromax, intex, lava, karbonn, Spice,  celkon will be the biggest gainer as they are very strong in  feature phone segment whereas some of the mentioned brands are also strong in Smartphone segment. 
The positioning of these brands will attract MVNO towards them for new user acquisition. 

The above brand may choose to ask for user acquisition cost which may run in $1 to $2 of additional revenue per user.
This will be on top of their ongoing VAS revenue of around $1 to $5 depending upon the brand market share and reach ability.

These brands are very strong in rural sector when it comes to feature phone and now posses the potential of increasing their margin if all goes right with MVNO license allocation. 
The move is very good to get more penetration and help those to have mobility who is still deprived of that.

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