Technical Background of Mobile Number Portability

After a prolonged deliberation, the Mobile Number Portability has been tabled on the Indian Telecom space and it is set to liberalize the final frontiers of competition in the Telephony space. Mobile Number Portability (MNP) is an important regulatory measure taken to reduce switching costs and it is believed to play an important role in fostering competition in the mobile market. MNP implementation has varied significantly across European Union countries, particularly with respect to porting time and customer fees, both of which are important factors when deciding whether to switch to another provider. The research examines the effects of MNP implementation on competition in the European mobile communications industry. The study findings indicate that subscriber churn rates are negatively affected by both the level of charges levied on subscribers wishing to maintain their current number (porting) when switching mobile providers and the length of time required to switch. This paper explains the underlying MNP technology and its impact both porting speed and the switching fees charged to subscribers wishing to change providers while keeping their current mobile number have on subscriber churn rates to the telephony ecosystem.