Ronnie05's Blog

Indian Telecom Story (Part VIII): Telco’s Mobile Number Portability Woes

Posted in The Technology Ecosystem by Manas Ganguly on May 14, 2009

MNPMobile number portability is one of the most debated topics in the perspective of the Indian Telecom Industry. It was first announced in 2007 and TRAI submitted its first recommendations on the MNP in April 2008. Given the intense lobbying that one has seen form the industry at large, the introduction date has been shifted from June 2009 to August 2009 and now September 20th, 2009. The first regions to be able to test this service by September will be Karnataka, Andhra Pradesh, Tamil Nadu and Kolkata. MNP will cover the other places in these regions by March next year. The other sginificant part of the story is that Consumers may not have to pay more than Rs 300 to change from one mobile service provider to another while keeping the phone number intact. Other unofficial reports put the MNP charges to be Rs.200, which would be peanuts to consuners who want to change their service provider. It is suspected (not confirmed), that lot of the MNP churn would be the top 9% consumers who contribute 29% of the revenues and 45% of the Telco Margins!

Mobile Number Portability along with other factors such as Infrastructure Overcapacity (and sharing of Infrastructure), entry of new players into the Sector, Reduction in Call termination charges, is expected to reduce the call tarriffs in the country.The fall in tariff may add boost to the fastest growing Telcom Market in the world and may also help in reaching new records in subscriber additions. However, it is the Telco margins which are under pressure and there is not much that the Telcos are doing about it except probably for vehement lobbying.

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  1. […] How does it effect the Operators? […]

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