Prime Minister Manmohan Singh is slated to flag off the nationwide roll-out of mobile number portability today, a move that will allow users to switch operators without losing their phone numbers and will force telecom providers to improve the quality of their services. "I think it's a great step forward for the consumer, as it enhances choice and brings in more competition, because the more efficient you are as a service provider, the more likely that consumer will choose you," Telecom Minister Kapil Sibal on Wednesday said. MNP services were first launched in Haryana in November last year. Nevertheless, companies like Idea Cellular and Vodafone started marketing their services to subscribers in other parts of the country that are looking at switching operators even before MNP services were rolled out. Idea Cellular, which started the 'No idea? Get Idea' campaign to woo the subscribers of rival telecom companies has also set up a toll-free line to assist customers looking to switch operators. More operators are expected to undertake similar activities to retain their subscribers, with competition likely to heat up following the nationwide roll-out of MNP services, with telecom companies poaching their rivals' subscribers. On tariffs, Sistema Shyam TeleServices (SSTL) President and Chief Executive Officer Vsevolod Rozanov, which offers services under the brand MTS, said, "I think tariffs will go down further especially if we speak about the post-paid customer base that is where we are likely to see the ARPU going down." "In the pre-paid segment, I doubt a significant change in their tariffs or profitability," he said. However, analysts feel there might not be a huge impact on the revenues of the telecom operators. "For the first 3 to 6 months, we might see the churn going up to 6 to 7 per cent from the current levels of about 4 per cent per month. But then it will stabilise and we don't expect much impact on revenues either," Ernst & Young (E&Y) Partner and Telecom Industry Leader Prashant Singhal said. Singhal added that MNP is expected to be more of an urban phenomenon than a rural one. Operators also seem upbeat on MNP. "Overall, it's a good move for the customers. It puts the service providers on their toes and will make them focus on delivering value to the consumers, giving them the power to choose," COAI said. Agrees Aircel COO Gurdeep Singh, "We expect similar churn as normally happens. So there is no different impact (because of MNP). In fact, it's good for the subscribers."
Avijith can’t get rid of his present mobile connection soon enough. With thousands of numbers on his contact list – all people who would have to be notified if his number changed – he’d balked at the idea of switching services. But with Mobile Number Portability being launched countrywide, he and many others pestered by bad connections, or hassled by endless calls offering services they don’t need, will take that step and quickly. “Many of my friends tell me my phone is either unreachable or constantly engaged . There have been days when I received barely two calls which is unusual,” says Avijith. “I went to Goa last year,” he continues, “And had sent a text message to a friend before leaving. That message reached after I did, three days late.” But this one takes the cake: Avijith’s connection “went into a loop” sending the same text message to its intended recipient dozens of times within two hours. He had to call from the landline and apologize profusely. He had to pay for the texts too. But most of Sinha’s network hopping was done in her student days and she thinks students are most likely to take advantage – even exploit – the system. “If some service provider offers a cheaper scheme, they’ll change. They might do six months with one, a year with another.” For S. Suresh, a media consultant, it’s revenge. He moved from Thiruvananthapuram to Delhi in 2003, took a mobile connection and a ground-floor apartment in Mayur Vihar. Every time someone called, Suresh would have to make a dash for the balcony or the terrace. “I complained for four years. The service provider said the connectivity problem would be fixed but nothing happened,” says Suresh . “I told them, once portability comes, the next day I’ll change services,” he says.
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