In the telecom industry, NSO and VNO are widely-used terms. NSO stands for Network Service Operator. On the other hand, VNO stands for Virtual Network Operator. NSO is a telecom company that owns and runs the telecom network while VNO is a telecom company that uses or leases network from parent NSO and sells services to customers under its own name.
If you are planning to start a telecom company, knowing the difference between NSO and VNO is essential as the choice between them directly affects your investment requirements, infrastructure ownership, regulatory obligations and business model in telecom sector.
NSO full form is Network Service Operator. It is a term used to describe a telecom company that owns, establishes and operates telecom network infrastructure so as to provide telecom services to end users or other authorized telecom operators. In India, obtaining authorisation from the Department of Telecommunications (DoT) is mandatory to function as an NSO.
Depending on the principal telecom services to be offered, an NSO may obtain a Unified Service Authorisation (National Service Area), Access Service Authorisation (Telecom Circle or Metro Service Area), Internet Service Authorisation (Telecom Circle or Metro Service Area) or Long Distance Service Authorisation (National Service Area).
Internet Service Authorisation - NSO
VNO full form is Virtual Network Operator. This term is used to describe a telecom company that does not own telecom network infrastructure of its own. Instead, it leases network capacity from an authorized parent NSO to provide telecom services to end users. Like NSOs, VNOs must also obtain authorisation from the Department of Telecommunications (DoT) to operate legally in India.
Depending on the principal telecom services to be offered, a VNO may obtain Unified Service Authorisation (National Service Area), Access Service Authorisation (Telecom Circle or Metro Service Area), Wireline Access Service Authorisation (Telecom Circle or Metro Service Area), Internet Service Authorisation (National Service Area), Internet Authorisation (Telecom Circle or Metro Service Area) or Long Distance Service Authorisation (National Service Area).
Internet Service Authorisation - VNO
In the table below, we have explained how NSO and VNO are different from each other:
|
Basis of Comparison |
NSO |
VNO |
|
Meaning |
A telecom company that owns, establishes and operates telecom network infrastructure to provide telecom services. |
A telecom company that does not own telecom network infrastructure and provides telecom services by leasing network capacity through a lease agreement with parent NSO. |
|
Network Infrastructure |
Owns, builds, operates and maintains telecom network infrastructure. Because of this, there is no need to lease infrastructure. |
Does not own network infrastructure of its own. Instead, it relies on the network of an authorized parent NSO. |
|
Business Model |
Operates the telecom network and provides services directly to end users or other authorized telecom operators. |
Provides telecom services to end users using the network infrastructure of a parent NSO under a commercial arrangement. |
|
Authorisation |
Must obtain the relevant telecom authorization from the Department of Telecommunications (DoT) to operate as an NSO. |
Must obtain the relevant telecom authorization from the Department of Telecommunications (DoT) to operate as a VNO. |
|
Suitable For |
Ideal for telecom businesses that want to build, own and operate telecom network infrastructure. |
Ideal for businesses that want to offer telecom services without investing in telecom network infrastructure like NSOs. |
Also Read: How to Migrate Telecom License under Telecom Migration Rules?
After going through this blog post, we hope you have a clear understanding of the difference between NSO and VNO in the telecom sector. While an NSO is responsible for owning and operating telecom network infrastructure, a VNO provides telecom services by leasing network capacity from a parent NSO. The right choice for your business totally depends on your business objectives, investment capacity and long term operational plans. Understanding these differences will help you select the appropriate authorisation and establish your telecom business in compliance with authorisation based framework.
For assistance in obtaining telecom authorisation or in setting up your telecom business in India from scratch, you can connect with our experienced telecom experts at Registrationwala. We can provide you with the required professional guidance as well as full-fledged support.
Q1. What is NSO full form in telecom?
A. NSO full form in telecom is Network Service Operator.
Q2. What is VNO full form in telecom?
A. VNO full form in telecom is Virtual Network Operator.
Q3. Does VNO own telecom network infrastructure?
A. No, VNO does not own telecom network infrastructure. It leases this infrastructure by entering into an agreement with a parent NSO.
Q4. Is it cheaper to operate as a VNO than an NSO in India?
A. Yes, it is usually cheaper to operate as a VNO than an NSO in India. This is because a VNO does not need to own, build, operate or maintain telecom network infrastructure. It simply leases this infrastructure from a parent NSO.
Q5. What is the validity of VNO authorisation in India?
A. VNO authorisation comes with an initial validity period of 20 years. To continue providing services after this period, renewal is necessary.
Q6. What is the validity of NSO authorisation in India?
A. NSO authorisation comes with an initial validity period of 20 years. Renewal is necessary to continue providing services after this period.
|
Disclaimer: Please note that this blog post is purely intended for educational purposes. While the author has made every effort on their end to provide our readers with accurate as well as complete information in this post, we cannot guarantee its full accuracy or completeness. We encourage our readers to verify details via official and reliable sources or connect with an experienced telecom consultant for assistance. |
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