Virtual Network Operator (VNO) or Mobile Virtual Network Operator (MVNO) is an internet service reseller and provides management services because they do not own telecommunication infrastructure. VNO’s are categorized as virtual networks because they do not possess actual network while offering these network services to their customers. VNO networks often lease bandwidth from various telecom providers at wholesale rates in order to provide solutions to their customers. The VNO business took place in India on 24th July, 2018 by Plintron, Adpay and BSNL.
Difference between VNO License and ISP License:
How to acquire a VNO license?
- Check Eligibility: One has to register their company under the Companies Act, 1956. Preference is given to Pvt. Ltd. Companies over sole proprietorship/partnership companies.
- VNO License Category: There are 3 categories of VNO licenses. VNO license is cheapest for Class C.
- A ISP (PAN India)
- ISP(Telecom Circle/Metro Area)
- C ISP(Secondary Switching Area)
Budget and Cost Analysis: To augment internet services, the government kept the prices extremely low for category C in comparison to class A and B
- Application Filling: A company is required to fill an application form and pay a non-refundable amount of Rs.15000 with all the mandatory documents and 2 copies of the application form and dispatch it at the New Delhi Headquarter of DOT.
- Document Verification/Review: Document verification is conducted by DOT which may take around 60 days. If approved, the company with receive ‘Letter of Intent’. And if the documents does not make it to the point, the chances are the application will get rejected.
- Letter of Intent: DOT issues a Letter of Intent after document verification. The company is required to submit a non- refundable one-time entry fee, the signed license agreement and other requisite documents mentioned in the letter within the time mentioned in it.
- Confirmation: After all the process, the company will be issued a VNO license for ISP under the Unified License for a period of 10 years. The information related to confirmation of license issue will be communicated directly to you via DOT.
As the ubiquitous networks are advancing each day, the field of telecommunication provider has also changed. However, this new category of service provider (VNOs) is efficient enough of creating a customer’s choice and market place where many networks can enjoy under a single infrastructure. The VNO model has created a revolution in the telecom industry.
You can apply for VNO License here
OTT stands for “over-the-top,” the phrase is used for the distribution of film and TV content via the Internet, without requiring users to subscribe to a traditional cable or satellite pay TV. It is commonly applied to video-on-demand platforms, but also refers to audio streaming, messaging services, or internet-based voice calling solutions. OTT can be bifurcated into three types.
- OTT Television: Apple TV, Amazon Fire Stick, Xbox, Playstation.
- OTT Video: Netflix, Amazon Prime, Hotstar, etc.
- OTT Messaging: WhatsApp, Facebook messenger and many more.
- OTT Voice Calling: Skype, WhatsApp, WeChat, etc.
The following image is based according to Counterpoint Research’s India OTT Video Content Market Consumer Survey which was conducted in the month of June, 2019.
Telecom Companies like Airtel and Vodafone are advertising about Amazon & Netflix free membership by subscribing to their postpaid plan, whereas JioTV advertises about movies and LiveTV. With the increasing hyper-competition in the telecom space, the players are forced to roll out different and unique plans to retain customers and their loyalty. Indian OTT market has about 25 players. Telecoms are offering different models in order to cater to the different needs for varied audience. Some provide regional content with devotional content for preferred audience, Live TV services and more. Reliance Jio TV has over 550 live TV channels, helping them increase their 4G subscriber base. Airtel TV app offer 300 LIVE TV channels, including 29 HD channels offering 6000 plus movies and regional shows.
In a recent survey, it is said that 89% of users include from the age group of 16-35 years. Substantial consumer group of salaried employees, followed by students, business owners, housewives, and others, the study added. Despite Indians are warming up to the idea of paying for content, the market continues to be driven by advertisements – which ask users to subscribe – are driving revenues for platform owners.
Major OTT Players in India:
- Zee5 is an Indian video on demand website run by Essel Group via its subdivision Zee Entertainment Enterprises Limited. This platform provides content to its audience in 12 major Indian languages. The platform has an overall 76.4 million worldwide viewers.
- Alt Balaji is associated with Balaji which has a wide range of genres consisting Balaji films and web series for its 27.3 million subscribers.
- Eros Now is an Indian subscription based over the top, video on-demand Indian & South Asian entertainment and media platform. The platform has more than 12,000 digital titles that include movies, television shows, music videos and 2.5 lakhs music tracks. It has a subscriber count of 128 million recorded users and 30 million paid subscribers worldwide.
- YuppTV is an over-the-top content provider for South Asian content. This platform includes live television and films. It allows consumers to view content on up to six screens of connected TVs, STBs, PC, smartphones, tablets and game consoles. This OTT has 100 thousand subscribers and the number is growing.
- The Viral Fever (TVF) is an online YouTube channel established by TVF Media Labs. It is one of the early arrivals on the Indian digital entertainment segment with videos covering a range of topics on Indian politics, movies, lifestyle, and emerging social concepts. The platform has over 6.4 million subscribers.
- Walt Disney launched ad-free video streaming service Disney+ in the United States and the company may not begin the services in India, but alternately route the original content to Indian audiences through Hotstar.
Fun Facts about OTT in India:
- There are 432 million Internet users in India; growing at a rate of 4-8%
- 35% of growth is seen year-over-year in the number of India’s OTT video viewers.
- There are 2.5 times more vernacular users compared to the English Internet user base.
- Rs 5595 crore is the projected revenue to be collected from OTT video in India by 2022.