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

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.

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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.

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