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ICRA’s has come up with a report which they believe that the implementation of MNP, subscribers would get a wider choice and would be able to switch between service providers easily, thereby compelling service providers to offer competitive pricing plans and offer higher service quality to attract and retain subscribers.
In ICRA’s view, direct fallout of implementation of MNP would be an increase in customer churn. Change in mobile number has been a major deterrent in switching service operators in the past, especially for high usage customers.
However, with the implementation of MNP, customers would be able to easily switch from one service provider to another without changing their mobile number.
Moreover, ICRA expects, the low porting charges (maximum of Rs. 19 per porting to be paid by the subscriber) and low porting time (7 days for all circles except Jammu & Kashmir, Assam and North East where the maximum time period for completing the porting process would be 15 days) to drive the adoption of MNP in India.
Increase in the churn is expected to increase the customer acquisition and retention costs of operators, which coupled with competitive tariff plans and falling average revenue per user (ARPUs) is expected to result in a decline in the operating margins of the telecom operators especially in the short term.
Under such a scenario, telecom operators with stronger financial profile would be better placed to cope with the increasing competitive intensity.In ICRA’s view, as all telecom operators in the market quickly react to match competitor pricing, tariff may not be a differentiating factor in the choice of operator.
Hence, the quality of service and customer experience will play an important role in a customer’s choice for an operator rather than pricing. ICRA expects that customer retention, especially in the high paying post-paid segment, would become the focus area for operators, as these contribute significantly to revenues, even if they form a small portion of an operators overall subscriber base.
Operators would have to increasingly focus on offering differentiated services and improving quality of service (in terms of better customer care and improved network and coverage) in order to attract and retain customers. Offering differentiated services like third generation (3G) services would also be important for retention of high usage high ARPU customers.
The implementation of MNP would be beneficial for mobile subscribers, as it would provide them with a wider choice (in terms of pricing plans, services, etc.), flexibility to change service operators without losing their mobile number and most likely an improvement in the quality of services offered by operators.
However, for mobile service operators, the churn that invariably follows MNP implementation represents both a threat and an opportunity. Post the implementation of MNP, some carriers are likely to witness the erosion of their customer base and consequently a decline in profitability, however, for some other operators, MNP can provide an attractive opportunity to gain market share and target high ARPU customers.
Thus, MNP would result in higher competitive intensity that would be reflected in an increase in churn, pressure on ARPUs and margins in the short term and telecom operators would have to increase their focus on improving service quality and offering differentiated services in order to attract and retain subscribers in the long term. ICRA believes that, operators with superior quality of service would be the clear winners, while those with less than satisfactory service quality would stand to lose the maximum by way of subscriber churn.
vishal January 19, 2011 at 12:34 pm
I am not very curious about MNP. MNP has some strict terms and conditions after moving to new network but I hope MNP will create a big competition for all networks.
AMAR January 19, 2011 at 11:45 am
WINNER TO WAHI HOGA JISKA NETWORK AUR COVERAGE SABSE BETTER HOGA
Keshav Jha January 19, 2011 at 11:03 am
Ye Aircel ka service share market se direct linked hai kya? Kabhi 5 circle me acchha rahata hai to kabhi 10 aur kabhi 15. Jis circle mein aaj acchha hai kal nahin hota aur jisme kal kharab tha aaj acchha hota hai???
Sharath January 19, 2011 at 9:48 am
I think UNINOR will benefit..Those people who don’t want 3G,but only high quality calls and SMS will shift to UNINOR which is providing congestion free network with low tariffs,with good customer care..The 3G guys will not be able to give quality calls as already even in USA AT&T,apple customers are complaining that call quality is crap in 3G and moving to Verizon..Since UNINOR is not in 3G space,it can give good service in 2G..
ARJUN CHANDRASHEKAR January 19, 2011 at 9:11 am
WHAT’S ABOUT AIRCEL IN CHAMARAJANAGARA DISTRICT?@Bana
ARJUN CHANDRASHEKAR January 19, 2011 at 1:30 am
AIRCEL CAN GAIN SOME OF THE CUSTOMERS IN JAMMU AND KASHMIR, TAMILNADU,KERALA, KARNATAKA,ASSAM, NORTH-EAST,MUMBAI,CHENNAI,ORISSA,HIMACHAL PRADESH, DELHI AND NCR AND PUNJAB @Amit.G
Vivek January 18, 2011 at 10:41 pm
Docomo is gud here in U.P. West .But i hate docomo when i see no network in ma phone.
Bana January 18, 2011 at 7:51 pm
I OBSERVE MOBILE OPERATOR’S TARRIFF AND NETWORK. IN KARNATAKA VODAFONE NETWORK AND TARRIF IS VERY GOOD. AIRTEL NETWORK IS GOOD. BUT TARRIF COSTLY COMAPARITIVE TO VODAFONE. EX: AIRTEL TO AIRTEL 29 PAISA. BUT VODAFONE TO VODAFONE 10 PAISA ONLY. IF YOU RACHARGE 151 BONUS CARD. BUT THIS OFFER NOT AVAILABLE IN AIRTEL.AND SECOND PULSE VODAFONE 1 PAISA PER SEC. BUT AIRTEL 1.2 PAISA. LARGEST MOBILE USERS NEED SAME OPERATOR CALLS CHEAPEST. AND SUPERIOR NETWORK. AND ALSO SOME TOWN 20-40 PAISA PER MINIT.PLAN IS AVAILABLE IN VODAFONE.IN NETWORK SIDE AIRTEL AND VODAFONE SAME QUALITY. BUT AFTER MNP RELIANCE AND TATA INDICOM LOSE THEIR CUSTOMERS. DOCOMO 3G IS BEST.BUT NETWORK IS WORST IN DISTRICT HEADQUARTER CHAMARAJANAGAR, DOCOMO NETWORK POOR. I COMPLAIN MANY TIMES. BUT DOCOMO PERSONS NOT SOLVE THIS PROBLEM. BSNL NETWORK NOT BAD. BUT THEIR CUSTOMERS SEARCHING OTHER OPERTATOR, BECAUSE BSNLS TARRIFF NOT AFFORDABLE. AND NETWORK QUALITY IS NOT GOOD. VOICE BREAK, CONGESTION IS MORE.BUT MY OBSERVATION MNP IS PROFIT FOR VADOFONE, AIRTEL, IDEA, MTS, DOCOMO. MAJOR LOSS TO TATA INDICOM, RELIANCE, BSNL AND OTHERS.
Bana January 18, 2011 at 7:34 pm
@ARJUN CHANDRASHEKAR
ARJUN CHANDRASHEKAR January 18, 2011 at 7:25 pm
@Amit.G
I’ll Agree With Your Survey AirTel,Idea Will Be The Largest Winners in Karnataka, Aircel and Uninor Will Be the Moderate Ones Vodafone and Docomo Will Be The Largest Losers
Santu Sovan Mandal January 18, 2011 at 7:23 pm
I’ll port my old idea to bsnl for 3g services.
Shyam January 18, 2011 at 6:58 pm
@rahulraj
Me 2 shiftng to Bsnl to save my old number from Airtel………..Wil use tat sim only for incoming calls ..
For calling& offers i will continue using Docomo & Aircel… m hvng free aircel 2 aircel offer & for msgng Docomo.. BIG THANKS 2 ti DUAL SIM MANUFACTURES
Amit.G January 18, 2011 at 6:30 pm
In karnataka as per my mini survey carried out with some 500ppl whom i know( usage range between 200-1500rs pm) i found out tat
1.90% Subscribers of AIRTEL are extremely Happy with Airtel’s network and said they will never quit Airtel as For them Airtel means Standard and reliable
2.30% of VODAFONE Subscribers want to port for 2 reasons (a) Vodafone is bit costly as many vodafone users are youths (b) GPRS service is not good. GPRS lovers will port for either Aircel or Docomo
3.40-50% of IDEA customers want to port either to Airtel/vodafone/Docomo because of Idea’s frequent balance deductions for no reasons & poor network quality( some ppl complain) but in tat again few say Idea is comparativly cheaper so they may not switch ( In this scenario Idea will atract customers only Bcos of its cheaper call charges & also good coverage)
4. 50% of DOCOMO customers complain tat docomo is no longer unique & cheap in tariff And also it suffers from network problem so they will port either to Idea or Airtel or VOdafone
5.I got only 5 AIRCELsubscribers out of 200 & they said they might port to Airtel or Idea ( here Idea has an advantage of seamless coverage & brand Image compared to Aircel, Sorry ARJUN>C but tis is the truth)
6.UNINOR’s case is totally different, Got 6 uninor customers in retail outlets who had come for recharging, According to them they will not port uninor as it is their Secondary sim in their Dual sim phone & since uninor is offering good quality network & cheapest plans so will continue using it & for them coverage doesn’t matters as there are no chances of missing important calls!!!
rahulraj January 18, 2011 at 6:15 pm
@Jambo
dont know abt d race bt i m shifting 4m idea 2 bsnl
VIn January 18, 2011 at 5:53 pm
Wow!!! Airtel already offering exciting offers to old customers e.g shift to rental free sms for Rs. 56, get 150 local sms free and .50 paise all india.
Time for Airtel customers to bargain more e.g 200 or 500 national/local sms , per sec pay & missed call alerts like Docomo
ARJUN CHANDRASHEKAR January 18, 2011 at 5:52 pm
@Nikita
Nikita are you Mad? No Operator Will Be Loser or Winner Say Aircel/AirTel/Idea/DOCOMO/BSNL Will Gain or Loss Some Customers so pls Speak Properly
VIn January 18, 2011 at 5:49 pm
Wow!!! Airtel already offering exciting offers to old customers e.g shift to rental free sms for rs 56, get 150 sms free and .50 piase all india
Nikita January 18, 2011 at 5:46 pm
@Jambo
Mujhe bhi aisa hi lagta hai……Airtel n BSNL will b on the top
Jambo January 18, 2011 at 5:40 pm
BSNL will win the MNP race ……..mark the statement
ARJUN CHANDRASHEKAR January 18, 2011 at 5:33 pm
AIRCEL COMPARE KARE TO DOCOMO,UNINOR,IDEA BAKWAAS HAI @swarup sen
PD January 18, 2011 at 5:22 pm
A very good and interesting pre-MNP in-depth analysis! Now (post-MNP), the telecom sector will witness competitive, service oriented and multifaceted churn out unlike present scenario that is tariff dependent.
sagar kinkar January 18, 2011 at 5:21 pm
I think idea & vodafone will affected more. Because of their high pricing and bad customer service. Reliance and airtel will also affected but not more than this two operator. But Tata docomo will gain high market share due to mnp.
swarup sen January 18, 2011 at 5:21 pm
MNP ke bad docomo,idea,uninor west bengal pe kavi khara ne hi ho payega kamjor network coverage k bajayse.profit hoga AIRTEL,VODAFONE ko.
ARJUN CHANDRASHEKAR January 18, 2011 at 5:17 pm
@Avinash M Tata Docomo Become Worst Than Aircel Nowadays in Karnataka and even they Didn’t Improve Their Network in Karnataka in these case how can it help to survive. Some fools like you prefer TATA DOCOMO Especially Most of the Bangalore Idiots(Excepting Amit.G) Prefer TATA DOCOMO Instead of Aircel. Coz in some of The Areas You Find TATA Docomo Has Zero Network so in this case TATA DOCOMO Will Be The Loser and also Never Ever Think TATA DOCOMO is the best operator in Karnataka
swarup sen January 18, 2011 at 5:12 pm
Aircel ka kafi lukshan hone wala hai mnp suru hone k bad.keu ki aircel aircel ghar k andar network nehi milta.or Reliance ka to bat hi nehi hai,yeto pura dub jayega,itna ghatiya service.
Keshav Jha January 18, 2011 at 4:52 pm
@hritik
R-CDMA ka bhi bura haal hai bhai. Pata nahin kis circle mein ye acchha hai. R-CDMA ki coverage sirf acchhi hai, service nahin. Aaj 2 ghante tak maine rim to rim free std ka use karna chaha lekin no outgoing call possible. Na RIM Delhi se aur na hin RIM Bihar se. Tata Indicom mein kahan kabhi aisa hota hai.
ARJUN CHANDRASHEKAR January 18, 2011 at 4:52 pm
90%RELIANCE WILL BE THE PAUPER SERVICE IN INDIA AFTER MNP
hari January 18, 2011 at 4:52 pm
mnp k aane se sare relince k coustem (kast se mar) dusre opreater mai jarur aange. Sabse ghatiya service rgsm ka hai bihar mai
Avinash M January 18, 2011 at 4:50 pm
Tata DoCoMo will be more beneficial with the MNP..
Kaushik Roy January 18, 2011 at 4:19 pm
@hritik
Yes u r right
Reliance will be worst affected
so we may see lots of offer from anil ambani company
hritik January 18, 2011 at 4:07 pm
Yes its survival of the fittest, any operator giving best tariffs, network quality andcustomer service will benefit , i feel RGSM and RCDMA will be worst affected, RGSM beacause of network and RCDMA for its handsets , sorry anil ambani