Mobile Number Portability Roll Out in India
Mobile number portability (MNP) allows mobile users to retain their÷ numbers when changing from one network operator to another. ÷ Mobile number portability will be applicable to both CDMA and GSM technologies and also to post paid and prepaid categories of customers.÷ Singapore was the first country in the world to implement MNP in 1997. ÷ India is one of the few countries where the subscribers are yet to enjoy the benefit of MNP. The biggest upside of MNP will be÷ an improvement in the quality of network and customer service expected from the telecom operators. It could marginally reduce tariffs particularly in the areas like international roaming and VAS.2.÷ ÷ ÷ ÷ MNP Process
The process of moving a mobile number from one operator to another is called "porting". To complete the port, the subscriber"s mobile number and the recipient"s network ID are paired and updated in a master centralized database. This will be facilitated by a separate agency called Mobile Number Portability Service Provider, which will be acting as number portability clearing house and maintain centralized data base services.
India will use a recipient-operator initiated method of porting. This is as per the international standard where a customer wishing to port his number will contact the new Recipient operator who will then complete the process of porting with the Donor Operator. The other method is Donor-led-Porting, which is considered neither an efficient process nor customer friendly. ÷
A major technical challenge to MNP is ÷ the routing of calls and messages to a number after it is ported. The best international practice is the use of a central database (CDB) of ported numbers. Once the donor operator has disconnected the mobile number and the recipient operator has activated it, the MNP service provider allocates the corresponding Location Routing Number to the ported number in the Number Portability Database and broadcasts the updated Location Routing Number along with the ported mobile number to all Access Providers and International Long Distance Operators who shall update their respective Local Number Portability Database. Whenever a call is made to a ported number, the operators will query it to find out which network to send a call to. This is also known as All Call Query (ACQ) and is highly efficient and scalable model. A majority of the established and upcoming MNP systems across the world÷ is based on this ACQ/CDB method of call routing. India has selected the ACQ model for call routing.
The porting process will take a maximum time of 36 hours in all licensed service areas except in the case of J&K, Assam and North East where the maximum time allowed is 10 days. The window period for disconnection and activation by operators has been kept at one hour each.
MNP is available only within a telecom circle. A subscriber is eligible to make a porting request only after 90 days of the date of activation of his mobile connection. If a number is already ported once,÷ it can be ported again only after 90 days from the date of the previous porting. TRAI has explained that this minimum period is÷ required to enable the service provider to recover the customer acquisition cost. After porting of a mobile number, if it remains disconnected for 90 days, it will be reversed back to the original operator.
3.÷ ÷ ÷ ÷ Charges for MNP
There are three types of charges payable either by the subscriber or by the telecom operators.
Per Port Transaction charge is paid by recipient operator (the operator to which the subscriber shifts his connection) to Mobile Number Portability Service Provider.
Porting charge is payable by the subscriber for porting his number to the recipient operator.÷ TRAI has capped the porting charge at Rs. 19.÷ The regulator÷ has÷ also noted that operators are free to charge any amount less than this. There is no need to make any payment to the existing operator.
Dipping charge is paid by the telecom operator who uses the query response system of the MNP service provider for obtaining location routing number for correct routing of the called number.
4.÷ ÷ ÷ ÷ MNP roll out in India
MNP was to be implemented in a phased manner, and the first phase was to start in Metro cities and A circles by December 31, 2009, and the second phase, in the rest of the country÷ by March 2010. The Government later decided to implement it in÷ the entire country in one go by March 31, 2010. The launch of Mobile Portability Services was again extended to June 30, 2010, due to a÷ lack of readiness of various stake holders.
Recently for the fourth time, the Government has extended the deadline to October 31, 2010, as the testing of MNP is yet to be÷ completed by various telecom operators. While only÷ 14 per cent of the mobile networks across the country÷ is so far ready for the introduction of MNP, 36 per cent is in progress. In the case of÷ remaining 50 per cent, testing is yet to be done. While the private players are slow with testing, state-run BSNL and MTNL have not even set up MNP gateways.
Apart from testing delays, MNP also ran into trouble with the home ministry and the FIPB over security clearances. The home ministry had voiced÷ its concerns÷ over the selection of the clearing house stating the company selected as Mobile Number Portability Service Provider had no experience in running telecom operations and this company had a set-up in Pakistan. However, the ministry finally cleared the agency in April 2010.
÷ 5.÷ ÷ ÷ Challenges in roll out
To implement this proven porting and call routing process, mobile service providers need to upgrade their infrastructures to enable appropriate re-routing of calls to subscribers who have ported out of their network. Huge Capex is required for each operator to implement this process.
The operator preparations for these models take time, and the manner of handling such routing and data management is critical, as any inefficiency will directly lead to inefficiency in transmission as well as errors in switching.
While new telecom operators are betting on mobile number portability to acquire new subscribers, established players are worried about the ×€˜abnormal" churn it would result in. TRAI has estimated the porting rate to be around 10%÷ in the first 15 months and 7%, 6% and 5% respectively for the successive three years. However according to industry observers, after an initial churn, there will not be significant shifts by subscribers from one operator to another.
6.÷ ÷ ÷ ÷ To sum up
India has 630 million mobile subscribers as on May 31, 2010. Even though there are 14 players, the market is dominated by Airtel, Reliance Communications, and Vodafone, which together control majority of the customer market share. The launch of 3G services will play a major role in deciding the direction of MNP-related churn.÷ Subscribers of non-3G operators are÷ expected to move to 3G operators after the÷ MNP roll-out. Superior network coverage and customer service will be the other key drivers of MNP.
Even though telecom operators are downplaying the impact of Mobile Number Portability, they would be hard-pressed to retain high-ARPU customers, many of whom have been continuing with the same telecom operators just for the sake of retaining the mobile numbers despite poor customer service and network congestion. MNP is another major event anxiously awaited by telecom observers.