Subscribers may have to share portability cost

While the government is planning to introduce mobile number portability (MNP) in metros in the near future, preliminary developments suggest the subscribers and service providers will share the Rs 200 cost of every such portability operation.

The Telecom Regulatory Authority of India (Trai) is working on the cost-sharing model for this proposal, and it seems that the customer who wants to switch to a new service and the new service provider will share the cost in a 40:60 ratio.

MNP allows a cellphone user to change his or her cellphone service by maintaining the original number. The signals in such case are diverted through a port and the entire cost of such operation is around $5, which is almost Rs 200.

Telecom services and network integrators like Tech Mahindra, Wipro Technologies and Infosys are all ready to set up the centralised network portability administration centre (NPAC) and are awaiting the final go-ahead to this proposal.

MNP has been a feasible system across the world and has worked towards betterment of services. The delay in introducing this system in India has surprised a number of people within the telecom industry.

Tech Mahindra Director (Global Managed Services) Shantanu Sen Sharma told Business Standard: "MNP is very much feasible and the technology is ready. We have done similar projects in Oman, Belgium and Poland. While the spectrum allocation issue is a hot topic for the telecom ministry, MNP has taken a back seat for no reason," Sen Sharma stated.

Trai has not been able to finalise the cost-sharing model for MNP.

"The change of service altogether costs around Rs 200. The cost is to be shared either by the subscriber who wants to switch over or by the service provider who wants to attract a new subscriber. Trai wants to ensure that this operation is not free of cost and a subscriber has to pay a minimum amount for it," he stated.

Trai has reportedly reached a formula where the subscriber will have to pay Rs 80 to switch to a new service, while Rs 120 would be paid by the new service provider.

"We do not want a particular service provider to woo subscribers by paying the entire switch-over amount. The charge can, however, be recovered through equated monthly installments," a Trai official said.

MNP, in the long run, is expected to only work towards improvement of quality of service.

"Initially, the rate of switch-over would be much high. Later, people would not switch over to a new service for low tariffs considering the cost of this switch-over. The quality of service would only be the main force to switch to a new service," a Wipro official stated.