Mobile Number Portability enables mobile users to retain their phone numbers when changing from one mobile network operator to another. MNP has been introduced and implemented in different ways across the globe. The USP that MNP gives to the mobile phone users is the comfort to retain their contacts and the phone number which is distributed in their business and social circle. A recent study pointed out that having to give up their mobile numbers was the single most reason that subscribers did not want to change their operator despite poor quality of services. The move to introduce and implement MNP will heighten the competition in the telecom industry and will force Mobile operators to offer quality services to the subscribers in order to reduce the churn rate. This will also benefit service providers who will be able to attract customers from other operators by offering attractive value proposition.
Singapore was the first to implement MNP in 1997, followed by Hong Kong in 1999, Australia in 2001, South Korea in 2004, and Taiwan in 2005. Recently, MNP has been introduced in various countries like Malaysia, Macedonia to name a few. However, it continues to pose challenges due to its technical and regulatory complexities.
“We must ensure efficient implementation of MNP & Operators must realize that customer port-out/port-in time is much greater than the time required to buy a new connection/ shift to another operator” Himanshu Jay, Added.
It takes a minimum of 5 working days to port a number in the UK compared to 2 hours only in USA, as low as 20 minutes in the Republic of Ireland and even a remarkable 3 minutes in Australia.
The introduction of MNP could result in a significant churn in the telecom market and is likely to negatively impact established players whereas proves to be advantageous for the new entrants. For Instance, Vodafone in Turkey is forecasted to lose some 4% market share to Avea and Turkcell by 2009.
The implementation of MNP tends to face stiff resistance from the operators of the country like India wherein telecom market hasn’t reached the saturation point. MNP can be soon seen in India, Turkey & Romania. In fact, MNP has been effective in October in some cities of India.
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