Bad debts could delay portability

Even as the government is all set to introduce mobile number portability this September, the industry has raised issues and concerns that could delay the launch.

Mobile number portability (MNP) is about retaining your phone number while you opt for another service provider within the same circle. Although it is widely believed that MNP rollout would make telcos focus on network and service quality, service providers and analysts have maintained that portability may not have any significant impact on any player in the longer run.

The Cellular Operators Association of India (COAI), representing GSM companies, has pointed out to the Telecom Regulatory Authority of India (Trai) that the issue relating to bad debts should be taken into consideration. “While the subscribers benefit from porting, it must also be ensured that the subscribers pay their dues to the service providers. Hence there is a need to have in place a well designed mechanism which can enable the donor operator to recover its dues.”

COAI has also sought clarity on how the issue of PCOs and toll free numbers must be handled under the MNP regulations.

Among the telcos, state-owned Bharat Sanchar Nigam Ltd (BSNL) has focused on the matter of porting between CDMA (code division multiple access) and GSM (global system for mobile communications) service providers.

“CDMA mobile connections are available only in bundled form with handset while for GSM connections the handset is not bundled with the connections,” BSNL has said.

Therefore, the handset of CDMA mobile connection cannot be used with GSM connections, it added. Even a CDMA handset of one operator cannot be used with another CDMA operator.

According to BSNL, such locking of CDMA handset with a particular operator creates a hindrance for freely porting mobile numbers. “This vital issue has not been addressed in the current draft regulations even when the same was appreciated and discussed in various meetings. This issue needs to be immediately addressed. Otherwise, porting of mobile numbers would not be possible from CDMA to GSM technology and vice-versa,” BSNL has told Trai.

An NGO, Consumer Care Society, has raised the issue of financial implications of MNP. “We do not agree that a subscriber should pay any charges at all, when the basic reason for opting for change of service provider will probably be poor service of the donor operator,” it has said.

Also, the recipient operator gains a new subscriber without any marketing or customer verification expense, it added. “If indeed unavoidable, let it be nominal,” the NGO has added.