Mobile Number Portability : Impact on Users & Operators

With 1.17 billion subscribers, India's telecom industry is the world's second-largest. Affordable prices, expanded availability, the roll-out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, altering customer consumption patterns, and a favorable regulatory environment has contributed to the telecom industry's exponential expansion in recent years.

The total number of wireless or mobile phone customers was 1166.02 million in September 2021. The total number of internet customers was 794.88 million in September 2021. This user base included 24.29 million wired internet subscribers and 787.94 million wireless internet subscribers.

There has been a huge amount of investment and growth in the business as the subscriber base expands every day. FDI intake into the telecom industry was US$ 37.97 billion from April 2000 to March 2021, according to statistics that are provided by the Department for Promotion of Industry and Internal Trade. (DPIIT).

In 2022, the sector is predicted to contribute 8% of India's GDP, up from 6.5 percent now. The industry employs 2.2 million people directly and 1.8 million people indirectly. The telecom sector is the third-largest in terms of FDI inflows, accounting for 7.1 percent of overall FDI inflows.

Government Initiatives to boost the telecom sector in India

1. Twitter Sewa, an online communications platform for registering and resolving user concerns in the telecommunications and postal sectors, has been introduced by the Ministry of Communications and Information Technology.

2. To limit the rising number of dropped calls, the Telecom Regulatory Authority of India (TRAI) has mandated telecom companies or mobile carriers to pay consumers in the event of dropped calls.

3. The Department of Telecommunications (DoT) has revised the Unified Licence for telecom operations, allowing operators to share active telecom equipment such as antennas, feeder cables, and transmission systems, cutting operational costs and allowing for speedier network expansion.

Indian telecom service providers

The telecommunications service provider is responsible for the message's acceptance, transmission, and delivery. Telecommunications service providers (TSP) work in the telecommunications industry. Telecom Providers are a type of Communications Service Provider (CSP) in charge of data transmission via the internet. Telecom (land and wireless communications), cable, satellite, Internet Service Providers (ISPs), and managed service enterprises are examples of CSPs (utility companies, etc.).

1.?????MTNL

The Government of India established MTNL on April 1, 1986.

2.?????BSNL

Bharat Sanchar Nigam Ltd. was established on September 15, 2000. It takes over the provision of telecom services and network management from the previous Central Government Departments of Telecom Services (DTS) and Telecom Operations on October 1, 2000. (DTO).

3.?????Vodafone Idea

The Aditya Birla Group and the Vodafone Group have partnered to form Vodafone Idea Limited. Among all Indian telecom providers, the company has the largest spectrum holdings.?

4.?????Bharti Airtel Limited

Bharti Airtel Limited is a significant global telecommunications corporation with operations across Asia and Africa in 18 countries*. The company's headquarters are in New Delhi, India.

5.?????Reliance Jio

Reliance Jio Infocomm Limited, also known as Jio, is an Indian telecommunications services business located in Mumbai, Maharashtra, India. It maintains a countrywide LTE network with coverage throughout all 22 telecom circles.

Indian telecom framework

A. WPC (Wireless Planning and Coordination wing) is responsible for:

·???????Spectrum Management about frequency.

·???????Wireless station licensing.

·???????Meeting the demands of all Indian wireless users.

B. DoT (Department of Telecom)

·???????Policy and coordination matters, including licensing, telegraphs, telephones, wireless, data, and other forms of communication.

·???????Defining guidelines for telecom network security and coordinating with others

·???????Security agencies.

·???????Spectrum management and spectrum allocation.

C. TRAI

? The primary goal of TRAI is to ensure complete openness in the policy environment, which would allow various telecom firms to take advantage of unique opportunities.

? TRAI makes recommendations on a variety of policy issues and also has regulatory and judicial authority.

D. TDSAT

TDSAT has been given exclusive powers to decide on any dispute between:

·?????DoT (licensor) and licensee

·?????Various service providers and

·?????Multiple service providers and customers

Significant Challenges in the telecom industry

1.?????Need for Quick and Personalized Customer Service

2.?????Complex Operational Processes

3.?????Remote Working

4.?????Network Security

5.?????Leverage over-the-top players

Mobile Number Portability

MNP (Mobile Number Portability) is a method by which a consumer can switch to another operator of his choice while keeping his current phone number. Mobile Number Portability (MNP) was to be implemented in India by the end of 2009. In January 2011, the Department of Telecommunications established Mobile Number Portability (MNP), a global standard that allows users to switch wireless operators while keeping their phone numbers.

According to the monthly susbscription report published by the Telecom Regulatory Authority of India's (TRAI) , requests to change network providers have increased since the country's lockdown was removed. MNP requests ranged from 7.5 to 8 million from July to December 2020.

Factors leading to Mobile Number Portability

1.?????Network Coverage

2.?????Quality of Service

3.?????Tariff Charges

4.?????Internet Services

You can quickly switch service providers using MNP without giving up your phone number. However, before beginning this process, keep in mind that your current connection must be operational for at least 90 days and that all of your payments must be paid.

Following are the steps for Mobile Number Portability

1. Select the service provider to which you want to migrate your phone number.

2. Send a text message to TRAI's central number for mobile number portability, 1900, with the words PORT followed by your 10-digit mobile number.

Send 'PORT 98xxxxxx98' to 1900 as an example. You'll get an SMS with a port out code that you can use. Visit your nearest operator store and tell them you want to port your sim. They will complete the porting form and the customer acquisition form to join the network.

3.Bring a passport-size photo and a self-attested copy of your identity verification as well. A copy of the rent agreement, a landline bill, an electricity bill, or a three-month bank statement can all be used as proof of address.

4. Submit you’re duly completed porting form and CAF to the operator, together with the required documentary proof of the mobile service provider. Lt is?only valid for 15 days.

5. If you're a post-paid customer, include a paid copy of your most recent bill, as well as the porting form and CAF.

6. After you've completed all of the proper paperwork, go to the new service provider and get your SIM card. Depending on your selected service provider, you may be charged up to Rs 19 for porting.

7. It usually takes seven working days to finish the process. It could take up to 15 days in Jammu and Kashmir, Assam, and the North East.

Your new mobile service provider will send you an SMS with the porting date and time.

8. After the specified day and time, replace the old SIM with the new SIM provided by your new mobile service provider.

Advantages of Mobile Number Portability

1. Government benefit in terms of net gain to a country’s economy.

2. MNP promotes fair competition among telecommunications providers and improves the quality of client service. Number portability is a technique that will allow new operators to compete with incumbent local exchange carriers or existing operators. They will have an easier time breaking into the market, preventing established service providers from monopolizing the industry and, as a result, improving service quality.

3. Improve the consumer's experience by creating new opportunities. Consumers do not have to change their mobile number when switching service providers if they are dissatisfied with the operator's services and programs. They are not required to notify everyone about the change in their telephone number.

4. The porting transaction charge is deficient, just Rs. 19. Thus it is pretty affordable.

Disadvantages of Mobile Number Portability

1. Most mobile carriers oppose mobile number portability because it makes it challenging to maintain customer loyalty because customers are more inclined to transfer service providers.

2. When a customer switches to a new service provider, they lose access to the former network provider's unique services and features.

3. While the old phone number can be kept with the mobile number portability service, consumers will need to adjust to the new operating system and service provider.

4. In India, prepaid mobile phone users account for 80% of all mobile phone subscribers. One vexing downside of MNP is that you lose all of your remaining amounts when you migrate your prepaid account to a new number.

Impact on Service Provider Due to Mobile Number Portability

Advantages to Telecom Operators

? It boosts competition by letting customers transfer service providers while keeping their old phone numbers, allowing telecom operators to improve their product and service offerings.

? It gives all service providers an equal chance.

? Long-term viability is possible for players who provide superior service and develop innovative products.

Disadvantages to Telecom Operators

? a rate increase has a direct impact on the service provider's revenue.

? Price competitiveness is increased.

? It may put pressure on profitability by increasing product innovation and marketing costs.

? More money is being put into back-end services.

Impact on Subscribers Due to Mobile Number Portability

Advantages to Subscribers

? Mobility from one service provider to the next without changing your phone number.

? If the market is competitive, there will be price competition.

? To retain and expand the client base, competition among service providers will drive improvements in service quality and product innovation.

? To attract clients, service providers may offer various value-added services, either for free or at a modest cost.

Disadvantages to Subscribers

? In many countries, telecom operators levy porting costs. Administrative expenses and recurring monthly fees for number porting services are included in these fees.

? The time it takes for mobile subscribers' numbers to be correctly migrated. This waiting period varies from 1-2 working days in Hong Kong to 4-7 working days in Taiwan and Singapore, and four days in India, as recommended by the TRAI, causing subscribers undue inconvenience.

MNP allows subscribers to select from a variety of service providers. Mobile phone businesses will be under ongoing pressure to improve their services so that their subscribers stay with them and switch to them from rival networks. Hopefully, competition will force them to create better service plans with lower prices.

At the same time, it will significantly help new gamers. The introduction of mobile number portability will make it easier for unsatisfied users to leave. This also means that operators will have to work harder to deliver better services to keep customers.

Roadmap of Indian telecom Sector

Revenues from telecom equipment are expected to reach US$ 26.38 billion by 2020. The number of internet users in the nation is expected to double to 829 million by 2021, with overall IP traffic expected to expand fourfold at a CAGR of 30%.

According to a Zenith Media report, India's telecom advertising market would increase at an annual pace of 11% between 2020 and 2023, making it the fastest-growing in the world.

The telecom industry has witnessed exponential growth over the last few years, primarily driven by affordable tariffs, wider availability, the roll-out of Mobile Number Portability (MNP), expanding 3G and 4G coverage, evolving consumption patterns of subscribers, and a conducive regulatory environment.

Around the world, mobile number portability is accomplished in a variety of methods. MNP is important for telecom markets because it removes a barrier to switching that may leave individuals with a lot of ownership in the number — especially corporate customers — trapped behind a high switching barrier. Reduced switching barriers are especially beneficial to challenger carriers competing against incumbents.

Ankit Aich