Pay just Rs 19 for portability
Come January 2010, consumers need to pay only Rs 19 and change their service provider, even as they retain the same mobile number.that could intensify the stiff competition in the world's fastest-growing telecom market and push call charges ever lower, the Telecom Regulatory Authority of India (Trai) on Friday said the porting charges for switching one's mobile operator 'cannot be more than Rs 19.'The country is set to introduce mobile number portability (MNP) on December 31. MNP allows the subscribers to retain their existing mobile telephone number even as they move from one access provider to another. This move is irrespective of the mobile technology or from one cellular mobile technology to another of the same access provider, in a licensed service area. In other words, the consumer can switch from CDMA to GSM.
The move is expected to increase competition among operators and act as a catalyst to improve their quality of service. Operators are free to levy any amount less than or equal to Rs 19, the regulator has said in a statement.
The dipping charges, payable by an access provider or an international long distance operator to MNP service provider for dipping of each message, has been left to mutual negotiation between telecom service providers and respective MNP service providers, the statement added.
MNP was initially planned to be launched in the country by October. According to the Trai guidelines, porting or switching a mobile number from the existing service provider to the new one should be completed within a maximum time period of four days.
A shakeout is clearly indicated in the telecom field. The move is being looked at as one of opportunity for new licencees, which are clearly looking to connect with potential subscribers. Existing operators are also mulling the the opportunity to let go of those subscribers who are not profitable.
Four new firms, including ventures of international telecom operators Telenor, Etisalat and Batelco, are set to start services in India this year, and MNP would clearly make it easier for them to lure existing subscribers, according to an analyst tracking the telecom sector.
"The principal loss in any kind of number portability are the bigger players. The new ones, however, stand to gain tremendously," the analyst said, adding, that around 2-3% of the consumers "are likely to port."
"Number portability intends to increase churn rates since it gives consumers the ability to change service providers without changing their mobile phone numbers," said a senior official with a telecom firm, requesting anonymity. However, the official cautioned, "that the threat for operators is that regulators may use it as a tool to force tariffs down and create opportunities to license more operators."
MNP would "also lead to high implementation costs for the operators, including equipment costs.
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Mobile users unhappy with the services of their operators just need to pay a nominal fee of Rs 19 for moving to a new service provider, telecom regulator TRAI said on Friday.
Subscribers in Delhi, Mumbai, Kolkata and category ‘A’ circles such as Maharashtra, Karnataka, Tamil Nadu, Gujarat and Andhra Pradesh will be allowed number portability from December 31 while the rest of the country will have the facility from March next year.
Several surveys have shown that about half the country’s mobile users are unhappy with the services offered by their cellular operators. Besides, the telecom industry already has an annual churn rate of 40%, indicating that a big chunk of subscribers could dump their operator to avail better tariff plans and services.
TRAI said the fee for availing of number portability cannot be more than Rs 19. With new operators waiting to start operations in the already crowded Indian telecom market, the industry is expected to see competitive pricing in this segment too. Thirteen mobile phone firms are jostling for space in a market that, analysts say, can support no more than 5 operators. Four more companies are due to launch services next year.
TRAI has also snubbed the demands of Syniverse Technologies and MNP Interconnection Teleco Solutions, two companies chosen to implement number portability, that they be allowed to charge customers between Rs 75 and Rs 200 every time they change their operator.
TRAI'S analysis revealed that customers may not opt for MNP if they would have to pay more than Rs 50, the amount needed to take a new prepaid lifetime connection. "Based on stakeholder comments and keeping in mind international practices, the Authority has estimated 10% porting rate for the first 15 months and 7%, 6% and 5% for the successive three years for the calculation of per port transaction charge," Trai said in a statement.
In a draft regulation released by TRAI earlier, the regulator had said that new mobile users would be permitted to change their operators only after 90 days of signing up with a service provider. The users who wish to change their operator will have to give a written undertaking to their existing service provider for switching to a new operator. TRAI has fixed a four-day window for operators to process an application.
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TRAI fixes mobile porting charge at Rs. 19
The Telecom Regulatory Authority of India (TRAI) on Friday fixed Rs.19 as the porting charge (the amount to be paid by a subscriber to the recipient operator) for availing the mobile number portability (MNP) facility, which is likely to be launched in January 2010.
The TRAI said operators, however, were free to levy any amount less than or equal to this charge
The MNP will allow a subscriber to retain his number even when he moves from one operator to another irrespective of the mobile technology.
“The facility of retention of existing mobile telephone number despite moving to a new telecom service provider helps in increasing competition between the service providers and acts as a catalyst for the service providers to improve their quality of service,” it added.
The TRAI also fixed ‘per port transaction charge’ at Rs.19.
“Per port transaction charge” means the charge payable by the recipient operator (the operator where the subscriber is willing to port his number) to the MNP service provider for processing the porting request of a mobile number.
These charges will come into force on December 31, 2009.
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