Telecom firms may have to expand networks for full number portability

Telecom companies feel Telecom Regulatory Authority of India’s (Trai) recommendation that full mobile number portability (MNP) be rolled out across the country within the next six months would not have much impact on financials or customer churn.

Rajan Matthews, director general, Cellular Operators Association of India (COAI), said, “While COAI supports full MNP, we do not think it will be a game-changer. Only 1-2%, or 93 million, subscribers port in a year, and we are expecting this number to be even less for full MNP, as it only impacts customers who are shifting cities.”

He, however, said the six-month deadline presents a huge challenge, given the complexity, scale and amount of testing needed -- this is the first time in the world such large-scale MNP would be undertaken.

“It would involve changes for over 900 million subscribers, domestic and international operators, NLD, ILD, BPO and other players. Considering operators were given three years to implement MNP, they should at least be given a year to implement full MNP,” he said.

Other concerns include a possible disadvantage to greenfield operators, which have spectrum in fewer circles than incumbents. Also, among incumbents, those who do not have pan-India spectrum stand to lose. Besides, guidelines for the upcoming 1800 Mhz and 700 Mhz auctions means incumbents have to participate to win back their existing circles of operation to continue -- and if they fail, full MNP could be yet another blow, experts said.

A telecom operator official said, “While it is too early to comment on the impact of full MNP, it will definitely be better for subscribers, who will now have more choice and better access to the best network, without changing their number. However, this means operators will be forced to improve their networks  and will have to go in for more aggressive expansion.”

Some feel full MNP will also bring consolidation, especially for smaller operators like Uninor, MTS and Loop.

Hemant Joshi, partner, Deloitte Haskins & Sells, said, “India being mostly a prepaid market, full MNP is not going to have much impact and hence operators are not much worried.”

Mahesh Uppal, director, Com (First) India said the subscriber churn as a result of full MNP will largely be in terms of corporate users like banks, hospitals and large media houses which have official connections for the entire organisation. “Corporate customers will now be able to negotiate harder with operators across the country. Smaller operators will have to lobby harder for such customers, which may lead to a tariff war for corporate subscribers.”