Recent reforms by the Indian telecom regulator are likely to result in the introduction of MVNOs into this market. Despite the high level of competition and low tariffs prevalent in the country, an MVNO can be a relatively low-risk entry option for players. The economic viability of MVNOs will hinge to a very large extent on the wholesale rates that the business manages to negotiate. The youth, enterprise, premium services and heavy data usage segments should be immediate opportunities which the MVNOs can target. 

Capgemini recommends a thin operating model for MVNOs commencing operations—unless dictated otherwise by the value proposition—so as to be able to break-even at a lower subscriber base. MNOs should view the introduction of MVNOs as an opportunity to reach out to segments they are presently unable to address. Due to a large number of players in the market, MNOs will need to have comprehensive wholesale strategies in place to attract MVNOs onto their network. These operators should provide deep discounts on wholesale rates to remain competitive, and garner additional revenues through other network resources and in-house MVNEs.