Chapter-1

1.0 Introduction

Mobile Number Portability (MNP) allows subscribers to retain their existing mobile
telephone number while moving from one service provider to another irrespective of the
mobile technology or from one cellular mobile technology to another of the same service
provider, in a licensed service area. This service has been introduced with the intent of
creating a level-playing field for all operators by reducing the barriers to entry. As part of the
transition, all operators are required to upgrade their network infrastructure so that all voice
and data calls across operators are routed through a central mainframe which is maintained
and run by the MNP service provider.

1.1 MNP in India:

In India, this service is expected to be operational by the mid of 2009. The DoT
(Department of Telecom) has issued license to two global companies to
implement the feature in two zones. Telecordia, the world’s leading provider of
MNP services has solutions deployed across none countries including the US,
Canada, Egypt, Greece and South Africa has been issued with license for
implementing MNP in north and west zone in India. Syniverse technologies, also
a major player in voice and data solutions has been issued with license for south
and east zones. The license issued in February 2009 quotes the companies to
start service for metro cities by six months and other regions within twelve
months. They will provide a “central clearing house” model for MNP in India. In
INDIA only Operator based and service based number portability is launched and
if success full would launch the other two also.

1.2 Charges relating to porting

(a)Per Port Transaction Charge is payable by the Recipient Operator (the operator, where
the subscriber is willing to port his number) to the MNP Service Provider for processing the
porting request of a mobile number – TRAI has fixed this charge at Rs 19.
(b) Dipping Charge is to be paid by a service provider or an International Long Distance
Operator to the MNP service provider for dipping of each message. The service provider
pays for the query response system database of
the MNP service. Key drivers for dipping are total number of calls, missed calls and SMS.
The Dipping Charge is left to mutual negotiation between the telecom service providers and
the respective MNP service providers.

(c) Porting Charge is due by the subscriber to the recipient operator for porting of the
mobile number. The amount to be paid by the subscriber shall not be more than the Per Port
Transaction Charge that is Rs 19/-. Operators are free to charge any amount less than or
equal to this charge.

1.3 Porting time

The porting time is fixed at 7 days for complete transfer of mobile number to the network of
the new mobile operator with a maximum downtime of 2 hours. For Jammu-Kashmir,
Assam and the North East, the porting time can be extended to 15 days.

1.4 Lock-in period

The subscriber cannot opt to switch the network operator if the mobile connection is less
than 3 months old. Additionally, if a number is already ported once, the number can again be
ported only after 90 days from the date of the previous porting. The minimum period is
required so as to enable the service provider to recover the customer acquisition cost.
Chapther-2

2.0 Concept and Implementation:

In terms of concept, the MNP functionality is used only in MT transactions of voice and
messaging. For MO transactions, the current flow scenario remains unchanged. Only for the
MT functionalities, the mobile number has to be identified and the corresponding service
provider has to be interrogated for optimal routing of the service.

There are two basic implementation of MNP.

2.1 Indirect Routing or decentralized or bilateral architecture:

This model works bilaterally between the donor and recipient service providers who
are responsible for informing all others of the change. It would suit to markets with less
number of service providers. Each provider will have a dedicated setup and comprehensive
database of ported out and ported in subscribers. As the number of service providers
increases, the bilateral approach becomes a great burden to all service providers involved in
terms of time, cost and resources. FNR (Flexible Number Register) will help the service
providers have the ported database in addition to the original HLR database.

2.1.2. Sample implementation of MNP in middle east:

In one of the countries of middle east, the MNP service is implemented in bilateral
architecture. There are two operators available in the country and each have their own
customized system for handling the MNP database. Whenever a customer wants to change
his service provider, he visits the recipient provider and initiates a request to port in the
subscription with the recipient provider. The recipient party then coordinates with the donor
party for porting the number.During the process, the donor deletes the number from its HLR
database and updates the number in its FNR – ported out list. Similarly the recipient party
updates the number in its HLR database and FNR – ported in list.

Coming to the MT transactions, there are two possible options,

1. Call from same PLMN: As both the service providers have the complete list of Ported out
and ported in numbers, the originating MSC will route the call either to its own network or to
other network based on available database.
2. Call from outside the PLMN: As the originating network need not to be aware of the MNP
functionality, it will route the call based on the number series database available with it. The
recipient network will make further analysis for routing of the call by following the
procedures mentioned in previous point.

2.1.3 Technical details

A significant technical aspect of MNP (Mobile Number Portability) is related to the routing
of calls or mobile messages (SMS, MMS) to a number once it has been ported. There are
various flavours of call routing implementation across the globe but the international and
European best practice is via the use of a central database (CDB) of ported numbers.
Network operator makes copies of CDB and queries it to find out which network to send a
call to. This is also known as All Call Query (ACQ) and is highly efficient and scalable.
Majority of the established and upcoming MNP systems across the world are based on this
ACQ/CDB method of call routing. One of the very few countries to not use ACQ/CDB is the
UK where calls to a number once it has been ported are still routed via the Donor network.
This is also known as 'Indirect Routing' and is highly inefficient as it is wasteful of
transmission and switching capacity. Because of its Donor dependent nature, Indirect
Routing also means that if the Donor network develops a fault or goes out of business, the
customers who have ported out of that network will lose incoming calls to their numbers.
The UK telecoms regulator Ofcom completed its extended review of the UK MNP process
on 29 November 2007 and mandated that ACQ/CDB be implemented for mobile to mobile
ported calls by no later than 1 September 2009, Prior to March 2008 it took 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, 3 minutes in Australia and even a matter of seconds in
New Zealand. On 17 July 2007, Ofcom released its conclusions from the review of UK MNP
and mandated reduction of porting time to 2 working days with effect from 1 April 2008. On
29 November 2007, Ofcom completed its consultation on further reduction to porting time to
2 hours along with recipient led porting and mandated that near-instant (no more than 2
hours) recipient led porting be implemented by no later than 1 September 2009.

In a decentralised model of MNP, a FNR (Flexible Number Register) may be used to

manage a database of ported out/ported in numbers for call routing

In India as MNP is recently launched Number Port process takes 7 Days as of now. Which is
the Highest Turn Around Time across World.
2.1.4 Number Lookup Services
Service providers and carriers who route messages and voice calls to MNP-enabled countries
might use HLR query services to find out the correct network of a mobile phone number. A
number of such services exist, which query the operator's home location register (HLR) over
the SS7 signalling network in order to determine the current network of a specified mobile
phone number prior to attempted routing of messaging or voice traffic.

2.1.5 Issues with this type of routing:

• Routing to the ported user is indirect and possibly costly, because additional transit charges,
interconnect charges, and/or extra conveyance costs may be generated even when the
originating provider is the same as the terminating recipient provider.
• For the donor network, billing associated with ported and non-ported numbers cannot be
differentiated easily.

• If the donor network uses a small, non-high-performance database, increased call setup
time for ported numbers is inevitable.

• Due to the dependence on the donor network, the receiving network cannot serve the ported
user reliably, because it has no control over the quality of service on the donor network.
• If the donor provider discontinues its operations or is experiencing a network failure, the
ported subscribers cannot be reached even if they ported numbers years ago. This is a
growing concern due to the increasing number of failures and the high cost to put these
subscribers back in service.
2.2 Direct Routing or centralized architecture:

In direct routing, the concept of CDB comes into picture. This central database or
Central clearing house will handle all activities related to porting of subscribers between
service providers. This model is suited for markets with several service providers and this
model is currently used almost in all MNP implementations. Two options are available with
this model with all the service providers updating the ported number database in
synchronization with the CDB and the other is to query the CDB for all call interrogation to
get proper routing procedure. After obtaining the rules, rest of the call is handled normally.

Thus the complexity and risk is reduced to a minimum with the little increase in work for
the service providers to make an additional check. This model is highly recommended for
MNP implementation and the routing procedures can be discussed between the operators.

Chapter-3
 3.0 Functional requirements of mobile portability

The industry working group set up by the ACA has examined the issue of the level of
functionality that any MNP solution should provide. User requirements were identified by
ATUG and industry requirements were developed by the carriers and carriage service
providers in the working group. The Commission has considered the user and operational
requirements which have been identified as being central to MNP and has taken advice from
the ACA on overseas approaches to ensure that these requirements are catered for in the
MNP solutions adopted. From the information available, the Commission’s view is that the
functional requirements for MNP can be accommodated in MNP IN solutions practically,
relatively quickly and with operational and system changes well within the carriers’ abilities
to manage and resolve in a timely and cost effective manner. The functional requirements for
MNP are set out below.
3.1 User requirements
The following issues should be considered as user requirements under any mobile number
portability implementation solution.
3.1.1 Timeliness of process
One issue which will need to be addressed with all forms of GSM portability is that of SIM
management. The SIM contains the IMSI allocated by the carrier to the subscriber. Until this
number is cancelled, the SIM can be used in any GSM phone to make calls. As IMSIs are
unique to a carrier, whenever a subscriber wants to change carrier, it is necessary to change
the SIM card. With number portability, a customer may want the change to occur
immediately, that is, the SIM may need to be changed on the spot, and the customer will
want continuity of service provided. As the connection to the appropriate carrier is
performed by the dealer, this will mean that the dealer must have access not only to the
recipient's provisioning system (which they have now) but also the ability to notify the donor
carriage service provider and all originating access service carriage providers of the
number(s) ported. Similar arrangements for notification of number changes to those used for
freephone and local rate number portability could be used, however, porting for freephone
and local rate numbers will involve a ‘soft’ handover from one prime service deliverer to
another, that is, with timing of changes in the order of hours. Procedures and processes for
updating records would need to be improved by orders of magnitude to effect changes with
the accuracy and timing required for mobile number portability.

3.1.2. Seamless transition

There should be minimal interruption to customers between the termination of an old service
and the origination of a new service.
3.1.3. Equivalent service
The carriage service provided in relation to a ported number should be an “equivalent
service”. A carriage service provided in relation to a ported number is an equivalent service,
if (and only if) any differences, in quality, reliability, services or features, between it and a
carriage service provided in relation to a non-ported number:
(a) will not be apparent to a customer; or
(b) if they are apparent to a customer - will not affect the customer’s choice of carriage
service provider.

3.2. Operational requirements

3.2.1. Industry standardised approach

Industry recommends that the process of porting customers from one carriage service
provider to another carriage service provider should be undertaken in accordance with an
industry developed code. This code should also include considerations of privacy and
security to ensure only authorised transfers take place and also that pre-existing contractual
arrangements are identified.

Porting processes
A technical solution to the provision of mobile number portability is one part of mobile
number portability implementation. Bilateral or industry-wide agreements on commercial
and
operational aspects are also required. The industry has identified the process and system
developments required to enable the introduction of mobile number portability. The industry
believed that further study is needed to document the full extent of process and systems
development work which would be necessary to provide mobile number portability.

Operational processes
Industry considers that there are several processes that would require development and/or
adaptation including:
• service activation/cancellation;
• porting process (including verification);
• service assurance;
 • customer billing; and
• interconnect billing
Service activation/cancellation
Industry considers that service activation and cancellation is a key element in the provision
or cancellation) of a telecommunications service. To effect GSM portability, for example,
the processes which need to be performed include:
• advising donor and recipient networks of the porting of the Mobile Subscriber
Integrated Services Digital Network Number (MSISDN) and entering the Recipient
Carriers identity in the relevant network databases in timeframes commensurate with
market offerings of the porting service;
• issuing a new SIM card to the customer;
• advising the service assurance system that the MSISDN has been ported;
• advising the billing systems of all relevant carriers and carriage service providers
that the customer has ported to ensure that calls from and to the now ported number
are correct;
• advising carrier interconnection systems that the MSISDN has been ported to a
particular carrier to ensure that inter-carrier billing, directory, emergency and fault
repair systems function correctly; and
• ensuring transition of voice mail and short message services, if required, to the
recipient carriage service provider. Each of these processes will need to be defined
and the systems modified to support them. A number of industry codes are likely to
be required.
Number portability will impact on present industry practices in this area. It is anticipated that
in most cases, numbers will be reserved or issued by carriage service providers for new
connections from ranges allocated to the particular carrier on whose network the service will
be activated. Industry players consider that it will be necessary to ensure that ported numbers
are not reallocated by the carrier responsible for the relevant number block, until the
customer has relinquished the ported service and the appropriate quarantine period
observed. New categories must be created in the relevant support systems to facilitate this.
Industry players consider that to ensure efficient use of numbers the donor carrier must be
advised by the recipient carrier when a ported service is relinquished. The relinquished
number must be returned to the original allocatee.
Support systems/service assurance
Industry participants consider that similar critical issues to those which are being addressed
in
the provision of local number portability will be necessary, for example, directory assistance,
fault finding and clearance. Industry considers that the service assurance process must
incorporate the following functions to support mobile number portability:
• Reporting. Identification of the service deliverer responsible for a particular service
when responding to A-party, B-party and third party enquiries is required during and
following the implementation of portability. Currently, in the absence of number
portability, this can be determined from examining the number range concerned.
Systems must be established to enable customer service consultants to determine the
service status of numbers ported to other carriers.
• Diagnosis & clearance. Fault diagnosis and clearance systems must cater for the
complex call cases which arise in the provision of number portability. Improved
coordination and handover arrangements between carriers are required to support
this.
• Customer billing/final bill. When a number is transferred to another carrier the
billing system must be updated immediately to enable preparation of a final bill and
ensure customer enquiries are handled correctly.
• Interconnect billing. Alternative arrangements to those presently employed will
need to be introduced for interconnect charging for all calls to ported mobile
numbers. The changes to interconnect charges will cater for the additional costs
borne by various service deliverers to support portability. The nature and amount of
these charges will be subject to bilateral negotiation and/or industry agreement.
Currently, inter-carrier billing systems use number ranges to validate interconnection
charges. For portable numbers it will no longer be possible to validate calls in this
manner.
Chapter-4
4.0 Key important factors
4.1 Technical uses
4.1.1 Achieving any-to-any connectivity
The objective of any-to-any connectivity is to ensure that an end-user who is supplied with a
communications service can communicate, by means of that service, with other end-users
who are supplied with the same or a similar service, even if they are connected to different
networks. The reference to similar services in the legislation enables the application of this
objective to services with similar, but not identical functional characteristics.
The Commission does not consider that issuing a directive to the ACA on number portability
for mobile services is relevant to the achievement of any-to-any connectivity as this has been
provided for in the mobile context by the declaration of GSM and AMPS access services.

4.1.2 Encouraging efficiency

There are two components to this objective; namely, whether MNP would encourage the:
• economically efficient use of infrastructure; and
• economically efficient investment in infrastructure for the supply of communications
carriage services, and content services supplied by means of communications
carriage services.

4.1.3 Economically efficient use of infrastructure

There are likely to be costs associated with MNP (for example, re-configuring the
network)and accordingly, these costs need to be considered in deciding whether to issue a
direction to the ACA on MNP. In this regard, the TPA requires the Commission to consider
whether it is ‘technically feasible’ to supply and charge for the service. Particularly, the
Commission must consider:
• whether supply is feasible in an engineering sense (that is, having regard to the
technology that is in use or available);
• the costs of supply and whether the costs are reasonable; and
• the effect of supply on the operation or performance of telecommunications
networks.
The Commission considers that it is ‘technically feasible’ to supply and charge for the MNP
service. The Commission also considers that the costs of supply of MNP will vary depending
on which technological solution is chosen. consultation as part of the implementation
framework to give effect to ACA timeframes on MNP. The Commission’s view on the cost
of MNP and issues surrounding cost.

4.1.4 Economically efficient investment in infrastructure

The Commission will also need to consider whether MNP will encourage economically
efficient investment in the infrastructure by which communications carriage services, and
services provided by means of communications carriage services, are supplied. In this
regard, the Commission will examine the likely impact of MNP on economically efficient
investment in:
• infrastructure by which MNP is supplied; and
• infrastructure by which other communications carriage services, and services
supplied by means of communications carriage services, are supplied. To examine
the likely impact of issuing a direction to the ACA on mobile number portability in
the economically efficient investment in infrastructure for the provision of MNP, the
Commission has considered the impact of declaration on:
• the legitimate commercial interests of the access provider;
• incentives for investment in the infrastructure used to supply the services; and
• incentives for investment in other infrastructure which could be used to supply the
services.
A number of submitters argued that MNP would encourage efficient investment in
infrastructure by both existing network providers and new entrants. For example, one .
Telargued that the ability for access providers:
…to earn substantial profits from their investments will be more closely related to their
ability to use their infrastructure efficiently and to make full use of their first mover
advantages, compared with the current situation where there is little incentive for efficiency
and innovation by incumbents and far greater incentive fro regulatory gaming and subtle
collusion. One.Tel also submitted that a direction on MNP will encourage more efficient
investment in network infrastructure. One.Tel argued that MNP will stimulate the market,
both at the wholesale and retail levels, which will reduce the risk associated with
infrastructure deployment by facilitating market entry and enabling mobile service providers
to obtain information about demand characteristics and the likely responses of competitors.
In this regard, One.Tel submitted that: MNP will increase the ability of more efficient
service providers to displace less efficient service providers in the provision of mobile
services. The provision of MNP, by removing an impediment to competition, also reduces
the ability of network operators to maintain artificially high prices, resulting in the more
efficient use of telecommunications infrastructure. In contrast, Optus argues that a direction
on MNP will discourage efficient investment in infrastructure as resources will be required
to be directed into providing solutions for MNP. Optus, however, did not provide any
evidence to support this view. Overall, the Commission has noted the concerns raised by
Optus who argued that a direction to the ACA on MNP is not in the LTIE because the
mobile market is already competitive and any benefits from the introduction of MNP would
only be marginal and would not outweigh the loss of existing consumer benefits and the
costs of implementation.
However, various submitters argued, and the Commission accepts, that:

4.2 7 Basic components required to deploy MNP

 Service Order Administration

 Number Portability Administration Center

 Service Control Point Management Server

 Local Service Management System

 Signal Transfer Point

 Service Switching Point

 Service Control Point

Service Order Administration (SOA)

Serves as an interface element between carriers' order and provisioning systems and the
Number Portability Administration Center (NPAC).SOA's primary functions include
subscription audit request or management, data administration, SOA's primary functions
include subscription audit request or management, data administration, legacy order entry
interface, and logging.

Number Portability Administration Center (NPAC)

Number Portability Administration Center (NPAC) is a third-party, neutral database
administration function that supports number portability. This database is designed to receive
information from both incumbent and new service providers, validate that info. and download
the new routing information when a customer has been physically connected to the new
service provider's network.

Service Control Point Management System (SCP MS)

The Service Control Point Management System (SCP MS) provides interface services
between the LSMS and the SCP The SCP MS may or may not be physically integrated with
the SCP.

Local Service Management System

The Local Service Management System (LSMS) is a fault-tolerant hardware and software
platform that contains database with routing information to ported telephone numbers. The
primary functions of the LSMS are subscription management, network data management,
service provider data management, error processing and notification, transaction event
logging and reporting, transmission of activation/deactivation events to the network elements,
and audits.

Number Portability Database

The Number Portability Database (NPDB) contains all ported numbers within a ported
domain as well as routing info. necessary to support number portability. Its function is to
provide the association between the called party and the carrier LRN, identifying the switch
to which the call should be routed.

Signal Transfer Point (STP)

The Signal Transfer Point (STP) receives the LRN query from the SSP/MSC, routes it
to the appropriate NPDB, and returns a response to the originating SSP/MSC.) The basic
core functionality of the STP as a network message router has not been impacted.

Service Switching Point or Mobile Switch Center

The Service Switching Point/Mobile Switch Center (SSP/MSC) is owned and operated by
the exchange carrier. These switch points must be able to generate a LNP query to the NPDB
when a call is placed to a telephone number in a ported domain. A ported domain here is
defined as a Metropolitan Statistical Area (MSA) that has implemented number portability.

Fig. Porting process

4.3 TELECOM CIRCLE IN INDIA
This refers that which state comes under which circle. There are to regions namely Telecordia
and Syniverse.
TELCORDIA:
Kolkata Tamil Nadu including Chennai Andhra Pradesh Karnataka Kerala Madhya
Pradesh West Bengal Assam Bihar North East Orissa.
SYNIVERSE:
Delhi Mumbai Maharashtra Gujarat Haryana Punjab Rajasthan UP (East) UP
(West) Himachal Pradesh J&K LSAs (License service areas).

Chapter-5
5.0 Technical information

5.1 HOW TO PORT

Two ways : 'Recipient-Led' porting and 'Donor-Led’ porting.

Donor-Led: The customer wishing to port his/her number is required to contact the Donor to
obtain a Porting Authorisation Code (³PAC´) which he/she then has to give to the Recipient.
Once having received the PAC the Recipient continues the port process by contacting the
Donor.

Recipient-Led: The international and European standard is for a customer wishing to port
his/her number to contact the new provider (Recipient) who will then arrange necessary
process with the old provider (Donor). UK is the only country to not implement a Recipient-
Led system.

5.2 THE TECHNICAL ASPECT

Routing of calls or mobile messages (SMS, MMS) to a number once it has been ported
Two ways: via central database (CDB) and via Indirect Routing

5.2.1 CDB
Network operator makes copies of CDB and queries it to find out which network to send a
call to. This is also known as All Call Query (³ACQ´) and is highly efficient and scalable. Maj
ority of the establish ed and upcoming MNP systems across the world are based on this
ACQ/CDB method of call routing.

5.2.2 INDIRECT ROUTING

The calls to a number once it h as been ported are still routed via the Donor network. It is
highly inefficient as it is wasteful of transmission and switching capacity. Because of its
Donor dependent nature, Indirect Routing also means that if the Donor network develops a
fault or goes out of business, the customers who have ported out of that network will lose
incoming calls to their numbers.

5.3 Legal Aspects:

Fig: Abuse of dominant position

Figure deploys the market positions of the mobile network providers in Indian market in
which Reliance holds majority than others in India.
5.4 Criteria of Eligibility & Rejection
5.4.1 Eligibility criteria
Eligibility Criteria for making a porting request.-- Every subscriber shall be eligible to make a
request for porting his mobile number:
Provided that---
(a) a period of ninety days has expired from the date of activation of his mobile connection in
the case of a mobile number not ported earlier; or from the date of activation of his mobile
number after its last porting, in the case of a mobile number which has been ported earlier, as
the case may be;
(b) there are no outstanding payments due to the Donor Operator by way of pending bills or
bills, as the case may be, issued as per the normal billing cycle but before the date of
application for porting;
(c) there is no pending request for change of ownership of the mobile number ;
(d) the mobile number sought to be ported is not sub-judice;
(e) porting of the concerned mobile number has not been prohibited by a Court of Law.

5.4.2Criteria for rejection

Grounds for rejection of porting request by Donor Operator.--- A request for porting of a
mobile number shall not be rejected by a Donor Operator on any ground other than the
following namely:-
(a) there are outstanding payments due from the subscriber by way of pending bill or bills, as
the case may be, issued as per the normal billing cycle but before the date of application for
porting;
(b) the porting request has been made before the expiry of a period of ninety days from the
date of activation of a new connection;
(c) a request for change of ownership of the mobile number is under process;
(d) the mobile number sought to be ported is sub-judice;
(e) porting of the mobile number has been prohibited by a Court of Law;
(f) Subscriber has applied for inter-service area porting;
(g) the unique porting code mentioned in the porting request does not match with the unique
(h) there are subsisting contractual obligations in respect of which an exit clause has been
provided in the subscriber agreement but the subscriber has not complied with such exit
clause

Provided that where the Donor operator rejects a porting request on the ground of subsisting
contractual obligations, he shall indicate the full details of such contractual obligations.
Chapter-6
6.0 Impact analysis

6.1 Churn expected to increase among high ARPU subscribers

Post MNP, we expect the churn rate to increase in postpaid segment, which constitutes major
chunk of high- ARPU subscribers and a small section of premium subscribers in prepaid
segment. In a predominantly prepaid high at about 60–70 per cent annually due to the price-
sensitive nature of low ARPU prepaid subscribers. High- end subscribers are highly averse to
change their mobile number and observe low price elasticity. As a result, we believe, this
segment has witnessed minimal churn despite intense price competition in the industry. With
MNP in place, the premium segment is likely to see an increase in the inclination to switch.
Principal drivers for a switch will be access to high-end data services, better network quality
and a significant price differential. Key parameters for wireless QoS are call success ratio,
network congestion, call drop ratio, billing complaints and resolution. The gamut of data
services will expand to include high-end value added services like video calls, high speed data
access and mobile TV.

6.2 Operators with 3G spectrum face limited vulnerability to MNP

The implementation of MNP coinciding with rollout of 3G services will provide the critical
differentiator to the operators with 3G spectrum, which are primarily incumbent operators.
The incumbents, owing to huge subscriber base in the past, had the disadvantage of network
congestion and consequent need for incremental capital expenditure to augment network
capacity in order to maintain network quality. The launch of 3G services, however, will
significantly ameliorate (for incumbents) this initial disadvantage due to diversion of 2G
voice
traffic on 3G networks. Moreover, 3G players can also place themselves uniquely by
differentiating their service offerings by including high-end services, thereby making
subscriber retention and acquisition a challenging task for other operators.
In the absence of any private operator with pan India 3G footprint, the roaming agreements
between the 3G players will determine the gaps in different circles in terms of price
competitiveness and service quality. We expect churn between the players with 3G spectrum
in different circles depending on their service proposition.

6.3 Impact to be pronounced on pure play 2G operators

Operators offering only 2G services will face tremendous pressure to upgrade their network
infrastructure in order to provide better quality. They will be compelled to incur significant
incremental capital expenditure to deepen their network coverage. Additionally, players will
need to market their service offerings aggressively, so as to further retain/expand their
subscriber base. Given their inability to provide high end services, they would struggle to
retain their high ARPU subscribers, many of whom would be keen to experience 3G services.

6.4 Financial impact of MNP across different player profiles

International experience on the MNP launch suggests that large and established service
providers record an increase in their churn rate and tend to lose subscribers to relatively new
players. New entrants, vying for a share of the growing market, could benefit from MNP
launch, provided they are able to deliver a distinct value proposition and better QoS.
MNP in India would primarily be targeted at the high-ARPU segment for which QoS and
service offerings are the critical differentiators. MNP implementation coinciding with 3G
service launch would hence temperate the impact on incumbents as they are the ones holding
the 3G spectrum in most circles.
In the Indian context, we expect differential impact on operating margins for players with and
without 3G spectrum. The leading telecom operators that have been successful in acquiring
3G spectrum account for 98 per cent of the wireless revenues. Hence, the profitability impact
on the operators capable of providing 3G services will significantly influence the overall
impact on the sector.
In the subsequent section, we have estimated the impact on EBITDA margin of an operator
offering both 2G and 3G services vis-à-vis an operator offering pure play 2G services.
6.5 Incremental churn expected to the tune of 50 bps to 100 bps for an operator offering 2G
and 3G services
We expect that the churn among the 3G providers would depend on the service quality and price
competitiveness. Our analysis leads us to conclude that the churn rate of the 3G service providers,
which primarily are the incumbent operators, is likely to increase by 0.5 – 1 per cent on account
of MNP implementation. As a consequence, the impact on operating margins will range from 60 -
125 basis points (bps). The dip in operating margins for these operators is relatively moderated
on account of high operating leverage. In addition, on account of additional spectrum on 3G
networks, the need for expanding network infrastructure will reduce significantly. A rise in
marketing and advertising expenditure chiefly contribute to the dip in margins. We also believe
that an increase in churn rate would be a temporary phenomenon. As the euphoria around MNP

6.6 Pure play 2G players to witness a rise in churn of up to 2 per cent

In a similar environment, our assessment suggests that the impact on pure play 2G operators
would be of a higher magnitude. In our base case analysis, we expect the churn rate of the
operators to increase by 2 per cent, resulting in a decline in margin of 600-630 bps. The sharp
drop in margins can be largely attributed to higher cost incurred to acquire and retain
subscribers without commensurate revenues flowing in. Attracting premium subscribers
plainly on price differential with no availability of high-end data services will remain a
challenge. Hence, we believe that these operators will witness more churn outs to those
offering 3G services. Moreover, in order to offer better network quality, they will be
necessitated to incur incremental capital expenditure to augment capacity, which will further
lower margins owing to the resultant high network operating costs.
Chapter-7
7.0 Country wise MNP Implementation

7.1 Americas

Country Implementation-date Time to port Price

Brazil 2008.09.01 3 BRL
Canada 2007.03.14 0 Free
Dominican Republic 2009.09.30 3–10 Free
Ecuador 2009.10.12 4 Free
Mexico 2008.07.05
Peru 2010.01.01 7-9 Free
USA 2003.11.24 0 Free

7.2 Asia Pacific

Country Implementation-date Time to port Price

Australia 2001.09.25 1 Free
Hong Kong 1999.03.01 2 Free
India 2011.01.20 7 INR 19 (free in-case
of BSNL)
Malaysia 2008.10.?? 1 Free
Pakistan 2007.03.23 4
Singapore 2005.10.??
Thailand 2010.12.15 3 THB 99

7.3 Europe
Country Implementation-date Time to port Price
Albania 2010.12.22 TBA TBA
Austria 2004.10.16 3
Czech Republic 2006.01.15
Belgium 2002.10.01 2 Free
Bulgaria 2008.04.11 EUR 2.56
Croatia 2006.10.01 5
Cyprus 2004.07.?? 14
Denmark 2001.07.?? 30-60 DKK 0-29
Estonia 2005.01.01 7
Finland 2003.07.25 5 Free
France 2003.06.30 10 Free
Georgia 2011.02.15 TBA TBA
Germany 2002.11.01 6 EUR 25
Greece 2003.09.??
Hungary 2004.05.01 8 Free
Iceland 2004.10.01 10 Free
Ireland 2003.07.25 0 Free
Italy 2002.04.01 3
Latvia 2007.??.?? 10 Free
Lithuania 2004.01.01 28
Luxembourg 2005.02.01 1
Macedonia 2008.09.01
Malta 2005.07.31 0
Netherlands 1999.04.?? 3
Norway 2001.04.01 14 NOK 0 - 200
Poland 2006.02.?? Free
Portugal 2002.01.01 5-10
Romania 2008.10.21 7-30 Free
Slovakia 2004.05.01
Slovenia 2005.12.31 5 EUR 5
Sweden 2001.09.01 21 Free
Switzerland 2000.03.?? 5
Turkey 2008.11.09 6 Free
United Kingdom 1999.01.?? 2 working days Free
7.4 Middle East and Africa

Country Implementation-date Time to port Price

Egypt 2008.04.??
Israel 2007.12.03 3–4 hours Free
Jordan 2010.06.01
Kuwait 2010.12.31
Nigeria 2007.??.??
Oman 2006.08.26
Saudi Arabia 2006.07.08
South Africa 2006.11.10

Chapter-8
8.0 Key takeaways from Nielsen Research Report conducted on 12,500
mobile subscribers across 50 centers in India
More than half (55%) of all respondents were generally satisfied with their mobile operator
and 48 percent were satisfied with the network quality. Satisfaction scores on network
quality dropped for almost all operators, with Airtel, BSNL and Reliance registering the
greatest drops. 46 percent were satisfied with the network coverage area of their operator and
43 percent were satisfied with the price they paid for the mobile phone service by their
operator.
8.1 Satisfaction Level-
Other areas of satisfaction included customer service experience and quality of voice (both
42%), strength of signal, Voice & Data tariff options and accuracy of bills (all 41%), indoor
coverage (40%),
dropped calls (32%).
8.2 Loyalty to Operator-
Loyalty to operators is seen to be higher among lower socio-economic groups, older age
groups, and among females.
8.3 Churning rate-
The circles in which subscribers are more likely to shift are Mumbai and Delhi Metro, UP
East and West, Gujarat, Rajasthan, Andhra Pradesh, Karnataka, Kerala, and Rest of West
Bengal.
8.4 Retention rate By Circles-
Circles in which subscribers show higher retention levels are Chennai Metro, Haryana,
Himachal Pradesh, Punjab, UP East, Rest of Maharashtra (does not include Mumbai Metro),
Rest of Tamil Nadu (does not include Chennai Metro), Bihar, and Jharkhand.
Introduction of MNP will not lead to swiftly changing the operators

Chapter-9
9.0 Impact of MNP on Mobile Subscribers:
9.1 Positives:
1. Subscribers would likely to have efficient services at cheapest rate.
2. Can retain one number lifetime while choosing competitive plans from other operators.
3. CDMA users can switch to GSM network providers without changing the handset, and
hence subscribers need not to purchase the different handset for the different network.

9.2 Negatives:
1. Fees for transfer is yet not decided as new services introduced it will cost high.
2. A subscriber is eligible to make a porting request only after 90 days of the date of
activation of his mobile connection.
3. Subscribers transferring the mobile number with some balance amount, no credit transfer
would be allowed to the new account.
4. Consumers allowed to change operators within their registered circle only (So if you are
moving to another city and want to retain your mobile number, MNP is not the answer).

One would switch service providers because of:

Fig: Mobile phone service subscribers who are likely to switch mobile phone operators

Chapter-10
 10.0 Post MNP Scenario of the telecom operator

Bharti Airtel - Neutral

• Market leader in the wireless telecom segment and Most popular among the high spending
group.
• Least competitive tariff plans and it has been offering wide range of value added services.
• All telecom growth comes from Rural India since urban India is 95 percent penetrated
already, so Bharti just need to get out India if it wants to grow.
• Now subscribers addition is no longer remain the driver for the growth as Indian urban
market is mature and price competition will play the major role.

Idea - Negative
• As per the survey conducted by market research firm AC Nielsen existing Idea cellular
customer less likely to change its moods to switching post MNP.
• Not providing any unique services to attract customers.
• Post MNP company is not likely to get benefited as it targets specific group of customer.
• Follower in the GSM space.

Reliance Communication - Positive

• Leader in the CDMA telecom services
• Company’s presence in the CDMA and GSM segment enables company to retain existing
customer.
• Best available tariff plans after TATA Tele services.
• Most popular telecom operator in the rural areas.
MTNL– Positive
• First one to launch 3G technology and 3G would enable consumers to use video calling,
high speed internet access on the handset itself
• Existing subscribers who wish to have 3G on their mobile can switch to the MTNL as
allocation of the 3G license to the private players will take long time
• Bharti and Vodafone is having the higher spending customers and these group can shift to
the MTNL for availing the 3G services
• MNP implementation will turnaround the company as 3G demanding customer switch to
the MTNL.

TTML - Positive
• TTML ranked #1 in the TRAI survey as it ranked No. 1 in the overall customer
satisfaction. It scores at 96%, only operators who scores higher than 95%.
• Most popular in the less spending subscribers group.
• Tata DoCoMo, the GSM brand by Tata Tele services and NTT DoCoMo is working on
implementing various strategies that definitely help it stand out from the crowd.
• TATA Tele services offers cheapest plan in India, within TATA network as well as outside
the TATA network.
• TATA - DoCoMo has started GSM services with the “pay per second” plan and “pay per
character” plan for the SMS.
• In latest month it has added 34 lakhs subscribers from its CDMA and GSM operations.
• Existing customer is less likely to switch as company is providing competitive plans and
likely to offer value added services.

Chapter-11
11.0 Conclusion
 • highly consumer-friendly initiative
• acts as a catalyst for the service providers to improve their quality of service
• available only within a given licensed service area
• The Subscriber who wishes to port his mobile number should approach the Recipient
operator
• withdraw his porting request within 24 hours of its submission to the Recipient
Operator
• Some experts are saying that MNP won’t be a game changer, it will just make a bit
initial impact and everything will flatten out in the long run eventually
• A lot was expected to happen on the first day when the mobile number portability
India was launched but there hasn’t been much buzz seen around.

Chapter-12
12.0 References