Trai Announces New Porting Fee for MNP, Will Go Effective on September 30

Trai has detailed new porting pricing for the telecom operators, which is fixed at Rs 5.74. The new pricing will go effective September 30

By September 11th, 2019 AT 6:30 PM
Highlights
  • Right now the telcos play Rs 19 per transaction to the MNP service providers
  • Telcos will now save up to Rs 75 crore annually

The Telecom Regulatory Authority of India (Trai) has introduced a new fee for mobile number portability (MNP) which is pegged at Rs 5.74, and it will be effective starting September 30, 2019. As per the telecom regulator, this new fee has been calculated based on a cost reimbursement basis after the change in architecture. This report comes from ET Telecom. The Telecom Regulatory chairman, RS Sharma, said, “These (mobile portability) charges are based on a cost reimbursement principle and computed accordingly to arrive at a Rs 5.74 pricing to be effective from September 30.” Currently, for every MNP transaction right now, the telecom operators have t pay various agencies. But with the new fee, the telcos will be saving on these transactions.

New Fee 70% Lower Than Previous Prices

Currently, these telecom operators pay Rs 19 for every customer that they acquire. This payment goes to agencies like MNP service providers such as Syniverse Technologies and MNP Interconnection Telecom Solutions. This new fee which is reduced by over 70%, will help the recipient telecom operators. When the new MNP fee goes effective, the financially stressed telecom companies like Bharti Airtel and Vodafone Idea will be able to save up to Rs 75 crore annually.

Speaking about this new rule, RS Sharma added, “We have changed the architecture of MNP. Initially, it was a Unique Porting Code (UPC) being generated by donor operators that have though a legitimate interest to retain their subscribers, and have more rejections.” The telecom operators, on the other hand, charge consumers very less compared to what they have to pay. The consumer migrating to other networks are only charged Rs 3 to Rs 5 against SMS, which is required to port the number.

Legal Row on MNP Transaction Pricing

For the unknown, the MNP or the Mobile Number Portability facility allows the subscribers to move from one network to another network without changing their number. To recall, in January, Trai had reduced the porting charges from the previous Rs 20 limit to Rs 4. However, because of a case filed by Syniverse Technologies, the new regulation was withdrawn after Delhi High Court crushed the new regulation in March.

Later in July, Mukesh Ambani led telecom operator had filed a Special Leave Petition (SLP) in the Supreme Court which challenged the verdict of Delhi High Court quashing the order which reverted the porting charges to Rs 19. The MNP service providers, however, were not happy with the verdict as they were on the lookout to recover about Rs 120 crore of combined porting fee arrears from the telecom operators, accumulated since February 2018. The service providers in June 2019, received a total of 4.34 million porting requests. The cumulative MNP requests have increased from 437.15 million at the end of May 2019 to 441.49 million at the end of June 2019, since the implementation of MNP. Trai had also issued a consultation paper to invite comments of stakeholders on the new rules.

Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.

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Rajnish | AgraRajdeepVineet ChaudharykarthikFaraz Recent comment authors
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karthik
karthik

Both Vodafone Idea and Airtel is charging 2 or 3 for every porting SMS(Even we have sms balance). But BSNL and JIO charge from our sms balance.When asked to customer care they say sending sms to 1900 will be treated as Special sms (Like 567676 which will be charged for rs 3). TRAI simply implement some rule . But these so called royal looting operators will never follow. Even to get escape from much more looting i had spend 10 against these looters . Now the Outgoing validity rule makes me to be more calculative on sending porting request(Still as… Read more »

City
Mysore
Operator
JIO , Airtel
Ranjan
Ranjan

Off topic:

I was a idea postpaid customer, I have deposited Rs 199 during new connection for security deposit and paid excess amount of Rs. 230 which is outstanding, total amount ? 430, which I will be getting as refund as I have ported out from idea. Now it’s been 2 months I am unable to get refund and idea care on twitter says me to provide bank statement to process my request. I am very skeptical as why they need by bank statement in order to refund an amount of ? 430.

Request telecomtalk and it’s members to kindly help.

City
Bhubaneswar
Kaushik
Kaushik

Because they will credit the refund amount through aadhaar linked system. Hence provide them your bank account.

Vineet Chaudhary
Vineet Chaudhary

You will get after 90days.

Rajdeep
Rajdeep

In case of Airtel I got the refund amount of Rs 131/- approx after 80 days of MNP. They sent me the cheque to my residential address. The cheque was issued in favor of the person ( that is in my name) whose name was registered in Airtel system. So not sure why Idea is asking for Bank statement.

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