If you are eyeing that cheaper mobile deal, but are afraid to switch operators for fear of losing your present number, don’t fret.
You can now switch to cheaper operators, without losing your number
NEW DELHI: If you are eyeing that cheaper mobile deal, but are afraid to switch operators for fear of losing your present number, don’t fret. By the end of next year, your number will be yours to keep.
Union communications minister A Raja on Monday announced that the four major metros of Mumbai, Delhi, Kolkata and Chennai will have mobile number portability (MNP) by the end of 2008. This means, once you get your number, you can switch operators, but your number remains yours — as long as you are paying your bills regularly and stay within the same service area. There are around 37 million mobile users in the four metros currently. The country’s total mobile user base is 209 million.
A decision on extending number portability to other ‘A’ circle cities and towns will be taken in April, 2008. ‘A’ circles include Maharashtra (outside Mumbai), Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu.
Though the Telecom Regulatory Authority of India (TRAI) had recommended mobile number portability in March 2006, it is only now that the department of telecommunications (DoT) has announced a policy on it.
Number portability is expected to intensify competition, thereby improving the quality of service while keeping rates moderate. Service providers who fail to do so will face the prospect of defecting customers, since they can carry their existing numbers with them.
Raja’s announcement has, however, left the telecom industry divided. The Association of Unified Telecom Service Providers of India (Auspi), representing companies using Code Division Multiple Access (CDMA) technology (Reliance Communications and Tata Teleservices), called it “an important and effective tool for effective competition and improved quality of service”. According to Auspi secretary general SC Khanna, this step will ultimately benefit subscribers at large.
Anil Ambani, chairman, Reliance Communications, called it a “forward-looking initiative.” He added: “It is pro-competition, pro-consumer and above all pro-choice.”
But the Cellular Operators Association of India (COAI), representing global system for mobile communication (GSM) players like Bharti, Vodafone Essar, Idea Cellular and Aircel, are opposed to the way number portability is being introduced.
“It is a case of misplaced priority,” said a top industry source who did not want to be named. It is also a costly option, he claimed. Internationally, the cost of every switchover to another operator while retaining the same phone number is around £30 pounds (or Rs 2,400). However, an Auspi source said that number portability is affordable. This fee is either paid by the subscriber to the network that he’s switching to or the cost is shared by the new operator and the subscriber.
The modalities are yet to be worked out in India, but the network upgradation cost will be borne by operators, according to DoT. Industry estimates suggest that anything between Rs 1,500-3,000 crore is required as one-time investment for upgrading the networks to enable number portability.
COAI issued a statement claiming that number portability should have been introduced in a “holistic” manner covering all operators, both fixed lines and mobile phones. Also, instead of rolling it out in just four metros, it should have been implemented all over India. COAI director general TV Ramachandran said, internationally, number portability is used to promote competition and in India the need for increased competition is more in the fixed line segment where 90% of the subscribers were with one operator (the government-owned Bharat Sanchar Nigam Ltd).
“The industry feels that mobile number portability is being introduced to benefit a select operator desirous of entering the GSM segment and thereafter poaching on the subscribers of existing GSM players,” the COAI statement said, without naming Reliance Communications. Ramachandran declined to say whether his organisation would move courts against number portability.
Reliance Communications was allowed by the government to offer GSM services recently. It is being alleged that Reliance will gain from number portability as it will be a new GSM player in the market and can poach subscribers from other mobile service providers.
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