Mobile Number Portability at Rs 19 starting today

Source: NDTV.com

New Delhi:  The much-awaited Mobile Number Portability (MNP) was launched at the Vigyan Bhawan in New Delhi on Thursday. The move will allow users to switch operators without losing their phone numbers and will force telecom providers to improve the quality of their services.

Addressing a press conference after the launch, Telecom Minister Kapil Sibal said, "It is a historic moment, we have demonstrated the customer is king. The whole process will not take more than seven days and cost Rs. 19 only which is likely to be reduced further."

Speaking about the MNP, Sibal said, "This is the most complex exercise ever done. We want that everybody must compete and improve."

I have announced a 100-day programme and we will stick to it, Sibal added.

MNP services were first launched in Haryana in November last year. Nevertheless, companies like Idea Cellular and Vodafone started marketing their services to subscribers in other parts of the country that are looking at switching operators even before MNP services were rolled out.

Idea Cellular, which started the 'No idea? Get Idea' campaign to woo the subscribers of rival telecom companies has also set up a toll-free line to assist customers looking to switch operators.

More operators are expected to undertake similar activities to retain their subscribers, with competition likely to heat up following the nationwide roll-out of MNP services, with telecom companies poaching their rivals' subscribers.

On tariffs, Sistema Shyam TeleServices (SSTL) President and Chief Executive Officer Vsevolod Rozanov, which offers services under the brand MTS, said, "I think tariffs will go down further, especially, if we speak about the post-paid customer base that is where we are likely to see the average revenue per user (ARPU) going down."

"In the pre-paid segment, I doubt a significant change in their tariffs or profitability," he said.

However, analysts feel there might not be a huge impact on the revenues of the telecom operators.

"For the first 3 to 6 months, we might see the churn going up to 6 to 7 per cent from the current levels of about 4 per cent per month. But then it will stabilise and we don't expect much impact on revenues either," Ernst & Young (E&Y) Partner and Telecom Industry Leader Prashant Singhal said.

Singhal added that MNP is expected to be more of an urban phenomenon than a rural one.

Operators also seem upbeat on MNP. "Overall, it's a good move for the customers. It puts the service providers on their toes and will make them focus on delivering value to the consumers, giving them the power to choose," COAI said.

Agrees Aircel COO Gurdeep Singh, "We expect similar churn as normally happens. So there is no different impact (because of MNP). In fact, it's good for the subscribers."

How to switch to a new operator?
Mobile phone users looking to change their service provider can follow these simple steps to avail of the Mobile Number Portability (MNP) service.

•    Type SMS(space)mobile number to 1900
•    A unique code is issued by the current service provider
•    Fill an application form, mention the new service provider and the unique code
•    The mobile connection is switched to a new network within seven days
•    The subscriber is charged Rs. 19 for the MNP service