Tuesday, April 04, 2006

Debate on introduction of number portability in India

What is number portability (NP)?

Number Portability
 allows subscriber to change their service provider to one having –
 the best service quality
 lower tariff options,
 & better network coverage

while retaining their old telephone number.













Technological reasons for implementing

Arguments against implementation - India not yet ready; Implementation requires large technological changes;

My Argument why it should be implemented
Our Mobile network is state of the art; technically much better than many countries where MNP has already working
 We introduced many services ahead of USA e.g. GPRS
 Fixed line NP may have problems; can be sorted and taken up in next stage
 If it can work in S Korea – 2004; Greece – 2004; Lithuania – 2005; Belgium – 2000; Honk Kong - 1998
 why not in India


Arguments against implementation - India not yet ready; Our tele-density is still much below developed countries; We should concentrate on increasing tele-density; We have enough operators for competition

My Argument why it should be implemented
 Mobile nos. in India are largely in Urban areas. Our urban tele-density is ~35.
 We added almost 17m mobiles in last 4 months. That means urban teledensity is increasing >6 in last four months.
 Requires 12-18 months in implementation after decision. Urban tele-density may cross 50 by then. following table indicate that we will be at par or better than developed countries in terms of tele-density for implementing Number Portability(NP)









 For one service say GSM mobile we have maximum 4 operators per service area

Economic reasons

Arguments against implementation - Implementation require huge initial investments, which will outweigh the benefits. Concentrate on improving service quality

My Argument why it should be implemented
 Its exactly the service quality for which we need NP
 Today India has one of the lowest rates for mobile services but quality of service offered is poor
 NP eliminates pseudo and psychological barriers to churning thus providing truly competitive market and service quality improvement
 Some estimate costs as high as 5000 Cr for implementation which are amplified and incorrect estimate even for implementing full fledged NP across services, operators & Locations
 Implement just Mobile NP, then fixed
 Call forwarding technology requires not much costs
 Even other technologies for mobile number portability we require central database, routing and query arrangements. It will not cost more than 150 cr to implement.
 India has 85m mobile connection now. By 2007 they will be more than 150m. Even if 10% use NP we have 15m users. (Spain 3m used.); International Data Corporation India conducted a survey and found that “30% of mobile subscribers are likely to shift to an operator offering better service, if given the option.” Internationally 10% churning of numbers with NP is common as shown in following figure-









 Charge of Just Rs 200 can cover costs. Internationally average charges are around 12-14$.
 If consumer is ready to pay for better service and availing better tariffs, why it should not be implemented

Operational reasons

Arguments against implementation - Implementation will have problems of distortions by donor networks

My Argument why it should be implemented
 Good planning and proper regulations on following issues can help in smooth operations –
 Go for all India implementation
 Don’t go for call forwarding option
 Locking of handsets to be banned
 Address lock in period problems
 Costs to be collected and born by recipient networks
 Operational problems can always be sorted out in time. After all India is not the first country to implement the NP

Conclusion
 India is well prepared for introducing number portability
 It should be introduced in phased manner –
 Mobile number portability across the nation amongst all operators
 Then fixed number portability
 Non implementation of NP will negate the concept of “True market” and operators will go on compromising on service quality standards

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