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.
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