Number portability: all about choices

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: compete with each other to retain the existing subscriber base, and attract new consumers, thus improving the quality of service and reducing the tariff.

On the basis of international experience, it is reasonable to assume that MNP will promote competition to benefit the ultimate users. Consumers have benefitted in many countries including US, Canada, and most of the European countries. Recently, two of our neighbours: Sri Lanka and Pakistan have also launched the MNP. Experience of these countries reveals that the introduction of MNP has forced the service provider to improve quality of service and adopt cost cutting strategies.

According to statistics, a larger number of subscribers changed their service providers in all the above mentioned countries. In the first year in the US about 8 million customers shifted from their current service providers. However, the churn rate in Pakistan was reported to be very low, 0.14% during the last eight months. But it was reported somewhat higher in Australia (0.82) and UK (1.5). It shows that churn rate was not as high as expected. Because, the companies woke up to provide quality service to retain their existing subscribers.

However, for India at this stage the most important issue to allow the consumers to derive the benefits of MNP is to find ways to effectively implement the MNP policy. DoT has asked TRAI to frame the required guidelines for implementing MNP. Establishment of Logically Centralised Database (LCD) and a Central Clearing House (CCH) have been proposed to facilitate MNP through neutral third party operation. The DoT has asked the operators to bear the initial cost of implementation on a sharing basis. Apart from the cost of regulation involved in MNP, TRAI will have to address some technical issues so that technology is not a barrier in creating a level playing field for all operators.

The issue of the locked-in phone handset provided by CDMA operators to consumers would also need to be resolved, if the MNP policy has to succeed across the two technologies. A consumer using CDMA services would be unable to shift to a GSM service using the same handset. It is because CDMA services would not adapt with the GSM SIM card unless it is unlocked by the CDMA operator. The problem is also reversible.