Thursday, May 28, 2009

Nmber Protability: Are we ready?

TRAI surveyed that 30 percent of mobile subscribers are likely to shift to an operator offering better services, if they are given an option. Does the Indian subscriber have any such kind of an option? Yes. The option is in the form of Number Portability. It allows a subscriber to change telecom operators, even as they retain their numbers. Number portability can provide many benefits to the telecom industry, service providers and to the customers if it is implemented in a proper manner. But for implementation in India, a large number of technical, operational and economic issues are needed to be dealt with.

The Indian telecom market has grown considerably because of the positive steps taken by the Government, TRAI and also due to the aggressive efforts and cooperation of service providers. This has led to exponential growth and fundamental reforms in India's telecom sector. Though, tele-density in India is low when compared to other countries which have implemented number portability, but the size and growth rate says a lot for the readiness and eagerness of the market to implement number portability.

What is Number Portability?
Number Portability enables a subscriber to switch between services, locations or operators while retaining the original telephone number. This is done without compromising on quality, reliability and operational convenience. The process of number portability began in 1986, when Telcordia invented, developed and deployed the world's first operator independent number portability application. Under this revolutionary facility, all calls are directly routed to the new provider, saving carriers substantial costs. Mobile Number portability has been applied in countries such as - Singapore - 1997; United Kingdom - 1998; Hong Kong SAR; Netherlands - 1999; Spain, Sweden, Switzerland - 2000; Australia, Denmark, Italy, Norway - 2001; Belgium, Germany - 2002; Austria, Finland, France, Ireland, Luxembourg, Portugal - 2003.
There are three types of number portability: operator, location and service portability.

1. Operator Portability
The ability of a subscriber to retain within the same service area, an existing telephone number even if they change from one service provider / operator to another. This type of portability is for the same service, i.e., fixed to fixed, or mobile-to-mobile.
a) Fixed Number Portability (FNP)
The ability of a subscriber to retain the existing fixed telephone numbers when changing from one fixed network operator to another fixed network operator. It is the portability of fixed geographic numbers.

b) Mobile Number Portability (MNP)
The ability of a subscriber to retain an existing telephone number when changing from one physical location to another and from one mobile network to another.

c) Intelligent Number Portability (INP)
The ability of a subscriber to retain the existing telephone number when changing from one service to another service, say from fixed to mobile services.

2. Location Portability
The ability of a subscriber to retain an existing telephone number when changing from one physical location to another.

3. Service Portability
The ability of a subscriber to retain the existing telephone number when changing from one service to another service, say from fixed to mobile services.

(Source: http://www.trai.gov.in/)

The market size is appropriate to throw up implementation risks and additional costs in manageable proportions. The technological challenges incumbent in such a scheme exclude portability in fixed lines. In many international markets, it was introduced with the hope of more competition but the real effect is another case of hype exceeding expectations. In three big markets like UK, Australia and US, only 1.5%, 0.82%, 0.25% users ported their numbers. Under total number portability, the same number can be used across different technologies, overcoming geographical barriers.

Why Shift to Number Portability?
Positives

There are many technical advantages if number portability is implemented.

  • The customers will have the convenience option to move from their existing operators to other favoured service providers while retaining their telephone numbers.
  • There will be inflow of subscribers from landline customers to mobile phone, as number portability may remove a potential barrier to wireless substitution.
  • The sector is driven by consumer acquisition, and this technology will change the focus to consumer retention.
  • It would increase competition and may reduce prices of the services being offered and the quality of services too would improve.
  • Mostly beneficial would be those who are traveling professionals and businessmen.

Negatives

  • As the customers are more likely to change their service operators too often, there will be loss of bandwidth which is a big issue.
  • They will also shift their operators during every promotional plan in which some service or the other is given for free for some time period.
  • There will also be loss of tariff transparency as identification of a number with a service provider would be difficult.
  • SMS which has been the catalyst for the impressive growth may create a problem in the porting of messages.
  • Also non-porting costs such as promotions and advertising, customer services and value-added services will be required to keep up with enhanced competition.
  • It would require huge investments by operators which could lead to an increase in the cost of services which can affect tele-density.

Are We Prepared to Implement Number Portability?
Implementation of number portability in India appears to be an extremely difficult task for TRAI, as most of the service providers are apprehensive. A host of changes in the numbering scheme and the installation of new equipment are some of the major concerns of the service providers. They have to invest heavily in storage capacity and billing mechanisms. Operators would have to spend an extra 10 percent on infrastructure to implement number portability. Also telecom service providers will need to constantly update their networks because of the customer's freedom to move to another network whosoever provides better services. Also pricing is an issue in which whether determination of the cost should be a regulatory decision or a decision taken by the association of service providers or individual operators. Further, business rules will have to be very strict to avoid financial losses.

The Road Ahead
India is a part of the global village and needs to keep pace with other countries with respect to technological advancements. Number portability will enhance competition further and it will be the consumer who will drive efficiency and grow the industry. Already, the falling rates for SMS, roaming and long-distance charges are an indication that competition is working and driving the industry. Therefore, in the present scenario and technologically driven industry, number portability will be the next advancement that drives the industry.

This article can also be found on:

http://www.coolavenues.com/know/system/prabhat_1.php

Monday, May 25, 2009

WHAT M*****M**T IS?

Dear All,
Here, a little creature trying to present his views on management in the world of Porters & Kotlers, but his concept is very much different from many of the management gurus. His idea of management is very much inspired by the child present in his inner self. The concept has come from his Class IV theory of HINDI VYAKARAN (Hindi Grammar), i.e., "SANDHI VICHCHHEDH", that means to break down the words in small parts, so it becomes much easier to understand. The concept is somewhat difficult for those who have never gone through HINDI VYAKARAN, because no such theory is present in English and most of our research took place by using the medium of English. Let's be ready for the flight and tighten your seat belts for real understanding of "SANDHI VICHCHHEDH" theory. The concept is somewhat difficult for those who have never gone through HINDI VYAKARAN, because no such theory is present in English and most of our research took place by using the medium of English. Let's be ready for the flight and tighten your seat belts for real understanding of "SANDHI VICHCHHEDH" theory.

Take a word that can be easily broken down & at this point of time no other word is much appropriate then "MANAGEMENT". Now break it into parts:

MANAGEMENT = Manage + Men + T (Time)
No need to describe anything. It is well understood in itself. So the management science is quite easy for all of us.
It is a well-known fact that the role of 'M' is very vast in the field of management. Infact, Management Science comprises of 4 Ms:
  • Man
  • Money
  • Machine
  • Material

In the present world, when the service industry is growing considerably in comparison to manufacturing industry, the value of first two Ms, i.e., Man & Money, also increases in the same manner as compared to the other 2 Ms, i.e., Machine & Material. The main emphasis in any service industry is on Man (Human Resource) & Money/Time (TIME IS MONEY - as we heard since our childhood days).

On looking backward into history, we'll found that the origin of management studies came with the objective of increasing productivity that later on converted into Operation Management and further moved towards the Human Resource Management. The main concern of Operation Management is to save time and that of Human Resource Management is to increase quality of service with the help of improving or developing the human resource of organization. All other fields of management later on come from these two main areas.

Recently, the trend of the corporate is also changing world wide as most of the researchers and scholars start writing on Human Resource Capitalization after they came to knowing the fact that human resource is the most important and beneficial asset for any organization.

So what I (the little creature) want to say at this moment is that if each and every human being able to know the real meaning of "Management (Manage + Men + Time)" and applies it in his/her own life, then more then half of the problems of this world will automatically vanish.

This article can also be found on:

http://www.coolavenues.com/cafe/articles/prabhat_1.php