If TRAI had its way, by April 2007 India would have got mobile number portability-the technology which allows us to keep the same number even if we change the operator. But, till last month, there seemed to be no sign from the DoT giving its nod for it.

So, it did come as a bit of a surprise when the communications minister announced MNP on the four metros to be available within a year.

Let's see what's the world switching to. Full number portability (NP) is available across fixed and mobile phone lines in Iceland, the USA, and Canada. Japan, Korea, Australia, Hong Kong, and Singapore have mobile number portability. Malaysia is also gearing up to join the list. Under an EU directive, telephone service providers in EU nations are also required to have number portability.

NP is meant to help reduce the barrier of moving to a new service provider if the current one is not meeting the customer's requirements. So, the move is widely seen under the “Customer is King” banner. With a mad rush to get more subscribers, operators often forget to work on their retention strategies. And, if that leads to dropped levels of service, the customer would want to switch to another operator. This would usher in more competition.

In countries where NP has been deployed, there has not been any significant churn. Soon after implementation, a high churn was observed, but over the years, this rate has fallen, and the churn is not seen to be alarming for an operator. This could mean that operators get their act together and come up with plans to keep the subscribers loyal, introduce new services, and ensure QoS. It could also mean that operators drag their feet in releasing their numbers to a new provider. Or it could mean that the service levels are, by and large, similar.

What about the investment costs? Estimates vary. One which could be on the higher side, says that about 10% of their investment costs would go into implementing NP. Another estimate is that about Rs 1,000 crore would be needed if 15% of the subscribers go for number portability, to be shared among all the operators. Add to that the costs of working out new marketing strategies, advertising and discounts to ensure subscriber retention. But, that cost will be passed on to the subscribers who make the switch. Earlier this year TRAI had suggested the fee to be Rs 200, but we will have to wait and see if that stands.

And what about the pre-paid subscribers, would they also be covered? And how would the availability in only four metros work? Will the roaming services still work across the country if a customer switches operators?

An IDC survey suggested that 30% of customers would change providers if NP is available. But that number could change drastically once the services become available. It would depend heavily on schemes that are actually offered. One thing is certain-more schemes for the customer to choose from. That itself is a bit of a challenge these days!

What about teledensity? Considering that it is still about 15%, would it not be more attractive for service providers to keep looking for new customers rather than hold on to some who are not satisfied.

There are plenty of questions that remain to be answered. The big one of course is spectrum availability which is often touted as the difficulty in providing better service levels. Forward-looking competitive measures are always welcome. But, the impression does remain that number portability is one of the lesser concerns that face this industry today.