Mobile number portability (MNP) is a facility given by operators where a subscriber can move from one service provider to another without changing the number allocated to the subscriber.

Thus, under MNP, a subscriber will have the option of retaining the same phone number issued by the old operator even with the new operator.

Several countries with mature telecom operations such as the United States, Ireland, Australia and Singapore have successfully implemented MNP. However, it continues to pose challenges due to its technical and regulatory complexities.

To achieve the successful implementation of MNP, operators should consider carrying out a comprehensive cost-benefit analysis to ascertain whether the implementation of the technology would prove to be profitable for the operator.

Cost aspects such as the upgradation of existing networks, software modifications and assessment of effective call routing mechanism are some of the areas where operators need to focus their attention.  Operators have the option of providing MNP through a centralised or distributed database of ported numbers.

Accordingly, operators will also have to assess the initial costs with regard to the setting up of such databases and also the cost associated with maintaining the same on a periodic basis. Operators can recover these costs by imposing fees on the users of such databases; or developing a mechanism where operators collectively contribute to the setting up and maintenance of the database, based on market share. 

Costs associated with calling a ported number are also to be evaluated by the operator as these costs would be recurring in nature and would be incurred every time the database is queried/interrogated.

Operators also face several challenges while operating MNP. The interconnect settlement is a significant part of the day-to-day operations of an operator. Accordingly, operators need assurance from the new technology that the changed billing system would be capable of addressing interconnect and roaming settlements; and also, that the same would be flexible to incorporate changes whenever necessary.

Further, in countries where a 'circle' concept exists, MNP will have to incorporate the difference between local and national number portability and also coordination among operators of various circles.

For ensuring the effective and efficient implementation of MNP, operators should ensure that the time within which a customer can be ported-out/ported-in is not significantly greater than the time required for obtaining a new connection. 

The administrative process of porting a number involves various costs for the recipient network operator, the donor network operator and potentially for mobile dealers or mobile resellers, which may be involved in the porting process.

A lengthy porting period is likely to create extra costs for users in porting, or simply discourage them from porting at all. A short porting period, however, may allow insufficient time for proper checks at all stages of the porting process and must be avoided to prevent fraud and ensure the proper completion of a port.

Since the telecom market is far from saturated, the implementation of MNP is likely to face stiff resistance from operators.

The reason for this is the high implementation costs which the regulator might not allow firms to transfer to subscribers. Secondly, India predominantly has been a prepaid market and it is much more convenient to obtain a prepaid connection than to wait for the completion of the porting process.

Although MNP will be a challenge in terms of implementation, costs, pricing and benefits to the subscribers and operators, it will surface in India due to the growth of the market and increased competition.

Further, the cost of providing MNP is also likely to reduce, making it a reality.

The author is Director, KPMG.