Mobile number portability

A market for new handsets with dual operation will open up and start flourishing

The options open to the subscribers are service portability, location 
portability and number portability The reason favouring number portability is 
that
the mobile subscribers base is increasing at a very fast rate

CONSIDERING THE base of 81 million mobile subscribers and 49.21 million fixed 
wire line subscribers in the Indian telecom network as on 31st January 2006,
the Telecom Regulatory Authority of India (TRAI) has come out with strong 
recommendations for introducing Mobile Number Portability (MNP) in the country
and issued notices to all mobile service providers to initiate action to 
incorporate MNP before 1st April 2007.

A boon to customers

MNP is a boon to the customer as he is allowed to keep the same mobile number 
even when he switches over to other operator - may be for reasons of a lower
tariff or more advanced service.

In the number portability issue the options open to the subscribers are:

Service portability - ability of the subscriber to retain the existing 
telephone number when changing from one service to another service, say, from 
fixed
to mobile service.

Location portability - is the ability of the subscriber to retain the existing 
telephone number when changing from one physical location to another. This
LP can be at the maximum within the charging area.

Number portability - the customer is allowed to keep the same number of his 
mobile phone while switching over from one mobile operator to another mobile
operator within his service area.

This is in fact a regulatory attempt seeking to liberalise telephony service 
competition by enabling the end-user to change his operator at his choice with
aim of getting better service quality and comparably lower tariff.

The mobile teledensity is only 8 per cent as of now and MNP is required only 
when it reaches 25 per cent. In the mobile category the mobility aspect is
provided on two different technology platforms namely, GSM &CDMA.

Number portability in a multi technology platform will cost more for service 
providers and to customers as well. While the mobile operators are in full
swing, expanding their network and investing huge sums in upgradation and value 
addition projects like GPRS, EDGE, the important question is whether they
should divert the investment for MNP without having definite assurance on 
revenue increase.

The theories advanced in favour of mobile number portability, may sound 
attractive, namely:

`When unsatisfied cell phone customers want to change their service but not 
their phone number' they should be given the option; `MNP will give incentive
to operators to improve their quality of service'; `MNP will provide the 
customers true benefit of competition rewarding (them) with operators with best
customer service, coverage and service quality'; MNP removes the barrier to 
switching networks thereby increasing subscribers' choice.

Need for a study

Before initiating action to implement MNP it is essential to have a study 
conducted to rate the present status of different operators with respect to 
service
quality, network coverage and tariff pattern, so that `porting-in' to ` 
porting-out' ratio of each service provider can be assessed.

Porting-in must be more than the porting-out customers for good service 
providers. The ratio may vary between 4:1 (the best) to 1:4 (the worst).

The reasons favouring MNP are on the ground that mobile subscribers base is 
increasing at a very fast rate and the overall mobile teledensity may likely
touch 20 per cent by April 2007 (even now the teledensity of mobile phones in 
metro cities is above 40) Dual technologies are in the field in the mobile
network such as Tata and Reliance use CDMA for mobile while all other operators 
use GSM. The mobile handset of the customer requires to be changed when
he switches over from GSM to CDMA by incurring expenditure.

A market for new handsets with dual operation (CDMA and GSM) will open up and 
start flourishing with this MNP.

The delay in introducing MNP now, when the total subscriber base is less than 
100 million, will definitely cost enormously when the base exceeds 250-300
million in a year or two.

Other expenditures

This is because in the case of MNP, major infrastructure investment will be on 
database creation and maintenance.

Other costs are mainly on administrative centre, redundancy hardware and 
software and signalling network setup.

Besides this, technological aspects of off-switch solutions such as `all-call 
query' or `query-on-release' and on-switch solutions like `interdependent
routing' or `onward routing' will add up to the project, cost wise.

The implementation of MNP has been proposed to be in a phased manner, starting 
with the metros, A grade circles followed by B and C service areas.

A. GANESAN

Deputy General Manager, Southern Telecom Region,Chennai

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Vikas Kapoor,
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