Slated to be implemented in the metros and some large cities by September 2009, mobile number portability (MNP) is, however, likely to be delayed by at least three months as the Telecom Regulatory Authority of India (TRAI) is still working on the regulations for the new system.
MNP allows subscribers to retain their existing mobile phone numbers when they switch from one service provider to another, or from one technology to another while staying with the same service provider.
The process of MNP rollout actually started when the Department of Telecommunications awarded licences for the same to two companies ?? Syniverse Technologies and MNP Interconnection ?? earlier this year. However, since this is uncharted territory both for the government and the industry, the regulator needs to work out the regulations and charges for the service. While the government had initially envisaged a phased rollout, panIndian readiness is required for the proper implementation of call routing.
Moreover, though the two companies chosen to implement MNP have proposed to charge customers Rs 75-Rs 200 every time they want to change their operator, they are expecting only 3-4 per cent of the country’s projected 550 million-plus mobile users to opt for this service by 2010. This indicates that the annual churn rates of 40 per cent currently faced by the mobile industry may not translate into customers opting to port their operator as a bulk of this 40 per cent constitutes lowend consumers who are willing to change their service providers without retaining their mobile telephone numbers.
Nonetheless, MNP is expected to increase the competitiveness in the industry, forcing operators to enhance both their services and their offerings. It is also likely to lead to still lower prices for consumers and create a more level playing field for new players.
