Mobile number portability (MNP) is expected to bring in more competition in the telecom sector, said Prime Minister Manmohan Singh while launching the pan-India service today.
MNP enables mobile users to retain their telephone numbers when changing from one mobile network operator to another.
“Competition enhances the efficiency of businesses and improves the availability and quality of products and services. The telecom sector is a prime example where the fruits of competition are visible to all. It is believed that MNP will also trigger competition,” he said.
MNP, which was launched in Haryana circle in November, will now be available to about 700 million mobile subscribers (both GSM and CDMA) across the country.
Customers, who want to migrate to a new network will be charged Rs 19. However, the new operator will have the option to either waive off the fee or give a discount to the subscriber. The entire process to swap network operators will take seven days and the subscriber might face disruption in service for two hours. The subscriber has to clear his dues with his existing service provider before making a request to move to a new operator.
“The telecom service providers will seek to improve the range and quality of their services in order to retain their existing subscribers and also to attract subscribers of other operators. This should further spur the growth of the Indian telecom sector,” said the Prime Minister.
Communications and IT minister Kapil Sibal said: “Till now, a change in the mobile number has been a major deterrent in switching telecom service providers, especially for high-usage customers. However, with the implementation of MNP, subscribers will get a wider choice.”
He said MNP will also compel operators to offer innovative, affordable and competitive tariff plans. The Indian telecom industry is the fastest growing market across the world. There are about 12-14 operators, in each of the 22 circles, offering mobile services.
Sibal said the operators will have to make substantial investments in network, technology and processes to ensure continuous improvement of their quality of service. Though India has introduced MNP relatively late vis-a-vis other developed countries, the country has adopted the latest technology and methodology.
