In a move that will give more choice to mobile phone customers, Prime Minister Manmohan Singh on Thursday launched the nationwide mobile number portability (MNP) service.
MNP will allow subscribers to change their telecom service provider while retaining the number. This means a subscriber will no longer have to suffer bad service by a telecom service provider just because he or she wants to retain the number. The fear of losing customers is also expected to force telecom companies to improve their services.
Dr Singh launched MNP service in the country by making inaugural call to communications minister Kapil Sibal from a “ported” number. “It will enable a subscriber to exercise his or her choice and get products and services in accordance with his or her preferences. It is expected that this service will go a long way in enhancing customer satisfaction,” said Dr Singh.
A consumer will have to pay a maximum of `19 to change his mobile operator. In order to gain more marketshare, the telecom service provider is free to charge nothing from a consumer who is moving on to its network.
A subscriber will be allowed to change his/her telecom service provider under mobile number portability only if he/she has completed 90 days with it.
The move adds another variable to India’s already competitive telecom market. Firms across the board welcomed the move, saying it will benefit the consumer and that they too will gain from it. However, behind the scenes, they are gearing up to face the increased competition. Analysts tracking the sector feel that further price cuts are unlikely given already low tariffs in India, and companies will try to compete by improving service levels. Some of these changes are already evident. Loop Telecom has started to offer its customers money back in case of a dropped call. MTS, another new operator, is offering high-end handsets on EMIs. Even public sector major BSNL has joined the bandwagon — it is offering to waive charges associated with number portability and is offering free talktime and 3G services for a limited period to new customers.