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The new port of call

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  • In what promises to be a big-bang revolution for consumers, telecom regulator Trai has set the ball rolling for the implementation of ‘‘mobile number portability.’’ This means you can change your service provider without having to change your phone number.

    As the portability experience in other countries has shown, it should increase service quality, foster greater competition between providers, and ensure that consumers can keep one number for life.

    WHAT, WHEN

    In India, Trai has favoured ‘local’ mobile portability, instead of blanket portability across the country. In other words, portability applies within your circle, for instance Delhi or Mumbai. If the government accepts Trai’s gameplan, portability will kick off in a phased manner from April 1, 2007, starting with the metros and Category A circles. Other circles to follow after a gap of six months each. The cost to the consumer: Rs 200, says Trai, to be paid to the new operator.

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    WHERE ELSE

    Some 17 countries have already established mobile portability, including US, UK, France, Germany, Italy, Switzerland, Spain, Austria, Finland. Number portability rapidly rising to be considered as an almost essential pre-condition for competition within a local circle, and is already mandated by regulators in the US and UK.

    WHY

    Typically applied to mobile operators, who tend to improve service levels once the system is installed. Going by global trends, no more than 15-25 per cent mobile phone subscribers will go for the portability option to combat quality issues with operators. Experience varies, the number swings wildly in saturated and high-growth markets. Bottomline: mobile portability is good news for consumers as it does improve competition.

    HOW

    The call is routed ‘directly’ from the original network to the new network. As this is done via a centralised number portability database, the call-routing burden is not placed on the original network, avoiding complications when firms exit the business. There’s also no network congestion. There are other technical options—like call forwarding—but the direct method is seen as the best long-term solution by Trai. It’s also what has been implemented successfully in the US.

    The 6th what next

    Setting up of a centralised number portability database, where costs will be shared by all operators depending on their subscriber bases. It will be managed by a neutral, third-party and will be the backbone of the new system.

    Portability for fixed-line phones, like BSNL, MTNL. Trai has deferred this, citing lack of private sector competition in all circles, and technical issues.

    Typically, the cost of switching operators ends up diluting the benefits of reduced telecom tariffs. In India, the Rs 200 fee is likely to be debated, since the goal of portability is to increase access and improve quality of service.

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