Days after the government announced a new policy for 3rd generation mobile services, Telecom Regulatory Authority of India or TRAI has announced guidelines for allowing Mobile Virtual Network Operators or MVNOs in the Indian telecom network.

Richard Branson's leap of faith will finally pay him dividends, as his firm Virgin Mobile may be able to provide Mobile virtual network services or MVNO, something that’s been a bit hit for Virgin across the world.

For you and me, these services provide a virtual network and more options of service providers.

MVNOs don't own infrastructure or spectrum but lease it from existing telecom operators buying talktime in bulk and reselling it to consumers under a different brand.

"There are large areas of the country where spectrum is still not being utilised. MVNOs fills the gap as they provide a good option to subscribers and also lead to optimum usage of existing infrastructure," said Nripendra Misra, Chairman, TRAI.

Even though TRAI does not want a cap on the number of such MVNO players, India does not have enough spare spectrum to accommodate all.

The entry fee for MVNO will be capped at Rs 5 crore. Furthermore, it will permit 74 per cent FDI.

All these will allow the mobile virtual network operators to roll out quickly. While that is good news, it is also been critised for allowing a hurried side door entry for companies without a telecom license.

Mishra while defending the move said: "I don't think in terms of capex plans or commercial plans there are any similarity between the two. I envisage the MVNO operators as niche players catering to only aparticular segment."

First 3G and now relaxation of norms for mobile virtual network operators, all of this is going to change the face of Indian telecom space rapidly.

But will this really mean good services for you and me? Well, we’ll have to wait for the teething problems to ease out.