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Portable Numbers

With department of telecom setting April 2007 as the deadline for mobile local number portability, consumers are gearing up to expect better services. According to telecom regulator TRAI's consultation paper, 30 per cent of mobile subscribers are likely to port numbers. However, there is opposition from incumbent operators. In the United States, they moved the court, in Europe, they delayed the process till the regulator put its foot down. An analysis.

Local number portability (LNP) is the ability to take an existing fixed-line telephone number assigned by a local exchange carrier (LEC) and reassign it to another LEC, while referring to the same physical connection. FMNP (full mobile number portability) is the equivalent term for mobile phones. In the US, mobile number portability is referred to simply as WNP or WLNP (Wireless LNP). LNP sometimes extends to providers other than LECs, such as internet phone companies.

Number portability became popular with the advent of mobile telephones, since in most countries different mobile operators are provided with different area codes and, without portability, changing one's operator would require changing one's number. Some operators, especially incumbent operators with large existing subscriber bases, have argued against portability on the grounds that providing this service incurs considerable overhead, while others argue that it prevents vendor lock-in and allows them to compete fairly on price and service. Due to this conflict of interest, number portability is usually mandated for all operators by telecommunications regulatory authorities.

In a consultation paper issued recently, the Telecom Regulatory Authority of India (TRAI) has indicated that India can be ready to introduce mobile number portability, which will allow subscribers to change their operator even as they retain their mobile number. The telecom regulator said that subscribers and operators would benefit from the introduction of the number portability system. " All countries where cost benefit analysis was done showed a net benefit from the introduction of number portability. Some might suggest that number portability should be introduced in a more mature market. However, the Netherlands introduced number portability when cellular penetration was fewer than 10 per cent. India can also begin discussing number portability which will add to the benefits of competition," said the TRAI paper.

The authority has also suggested phased implementation of the system to lessen the cost implications in introducing number portability. The regulator said that Indian mobile networks matched global standards and therefore there was no unusual requirement for the implementation of mobile number portability. It, however, recognised that there were technical and financial concerns that would have to be addressed. The consultation paper raises a number of issues pertaining to number portability, including national numbering plan, interconnection and the impact on value-added services such as SMS and voice mail.

"In most service areas in India, subscribers have a choice of operators, however, the subscriber's inability to retain his telephone number when changing operators is an obstacle to competition. Therefore, Mobile Number Portability (MNP) will benefit subscribers and increase the level of competition, rewarding operators with the best customer service, coverage, and service quality," TRAI said. Recently IDC had conducted a study, which revealed that 30 per cent of mobile users are ready to change their operator if given a better option. TRAI said that the introduction of number portability would also benefit operators as they would strive to offer better service to prevent churn.

 

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