Despite Vodafone's Idea is going downhill threatening the telecom market into a duopoly, the telecom regulator's newest plan to unbundle services and network layers is expected to attract new entrants.

Most recently the Supreme Court dismissed telecom companies' request for a revision of the formula for computing adjusted gross revenue (AGR) dues. It’s heard that both Vi and Bharti Airtel have lost a significant number of subscribers in May.

Despite the loss, Airtel has withdrawn its Rs.49 prepaid plan, resulting in Rs.79, which is 60 percent more expensive.

Vi is anticipated to follow suit by dropping its Rs.49 pack on a pan-India basis in the coming days. In some markets, Vi has already made the switch. Prepaid subscribers make up more than 90 percent of their total subscriber base.

The Telecom Regulatory Authority of India (TRAI) has proposed that network and service license categories be separated. This means that one set of players will be in charge of the network infrastructure, including spectrum acquisition and tower sites, while another set of players will be in charge of providing services on top of the network.

Existing operators control both the network and the services they provide.
While incumbent operators have been allowed to keep their current business models, the regulator believes that unbundling licenses will help attract new competitors.

Experts argue that this can only happen if existing concerns with telecom licensing, such as the debate over adjusted gross revenue (AGR), are overcome.

Industry experts contend that this distinct authorization will only find buyers if the AGR issue is resolved; otherwise, its said that the revenue share could be paid twice.

The talk in town is that the job of an access service provider and the service delivery portion is driven by two different sorts of skill, thus it will be fantastic if various players enter into different portions of the network. It’s commonly believed that if the TRAI's recommendations are followed, consumers will have a true choice of services.

Some experts do say that in addition to significant cost savings, the recommendations if followed, would function as a spur for increased investment in the sector. Perhaps the first time in 26 years that a measure to alter the historical structure of bundled licensing into separated network layers has been taken.

Payments provided by one telecom operator to another telecom operator for active infrastructure sharing should be authorized as a pass-through for AGR calculation, according to one of the stakeholders. However, this proposal got turned down.