Mnp in India

Switching costs, porting, dynamic oligopoly, number loyalty, ARPU, customer awareness,

 Switching Cost:

It includes all the cost incurred when a customer changes his mobile number, i.e. from one service provider to other. It includes,

• informing other people the new number

• Reprinting the visiting cards/boards/business cards

• Loss of important calls due to change in number

 Number porting

• Keeping the mobile number in tact including the prefix while changing the service provider.

 Dynamic Oligopoly

• The nature of competition of Indian telecom industry is oligopolistic in nature, where there are small number of players involved in a fierce competition. The pricing can't create much difference among the service providers.

 Call Drops

• The problems of Call drops at the ground level has been increasing significantly. The voice clarity as well as connectivity has seen a decline in recent times. This problem is prevailing in almost all the services providers and is increasing by the day. The existing infrastructure does not seem to be able to cope with the additional subscribers or call minutes. This shows inefficiency on the part of the telecom companies.

 Number loyalty:

It is the necessatity or the obligation of the mobile user to retain the mobile number.It is sometimes to avoid the switching cost or for the loyalty of the service provider.

 ARPU:

It is the average revenue per user.It is different for the high end users(having high ARPU) and BOP users(low end consumers).The market scenario of Indian telecom scenario shows that, the market is left only for the low end users. Again the it is high ARPU customers, who are usually number loyal.

 Customer Awareness

The recent articles in the business dailies shows that, the success of MNP completely depends on the consumer awareness.The awareness regarding the porting process, cost of porting, advantages and disadvantages of porting is the irreplaceable idea for a customer to adopt MNP

Article Summary

 MNP allows the subscriber to retain existing mobile number when theey switch from one access service provider to another irrespective of mobile technology or from one technology to another of the sme or any other service provider.

 Telecome operators generally charge porting charges comprising of adminstartive fees and recurring monthly fees.Time