Number portability now closer to reality

By agencies   |   Wednesday, 16 November 2005, 20:30 IST
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NEW DELHI: The cell phone users may finally be able to switch operators without changing their numbers. The draft new telecom policy provides for implementation of number portability within 12 months of the policy’s announcement, a newspaper reported. The draft policy is now under consideration of the government. Once implemented, mobile phone users would be the biggest gainers from the change, the Economic Times said. The draft policy recognizes that a phone number has become an important part of the identity of individuals and businesses. Non-portability creates exit barriers and reduces effective competition in the market. Telcos expect their additional spend on infrastructure to go up by about 10 percent if number portability is implemented. This is considered the biggest obstacle to making portability effective. Operators are likely to pass this on to consumers by way of increased tariff and could, therefore, lead to opposition from users. On the other hand, telecom policy planners expect telephone operators to absorb the additional cost in the face of growing competition, the paper said. Earlier, number portability was not considered important because of the low subscriber base, but now, with the number of subscribers crossing 100m, consumers have been demanding ease of migration from one operator to another. Pending the policy announcement, the Telecom Regulatory Authority of India (Trai) has already initiated a consultation paper on the implementation of number portability. The Cellular Operators Association of India has sought two months to respond to the proposal. Trai would submit its recommendations to DoT by January, according to its chairman Pradip Baijal. Number portability can be across services, across networks, across cities and within a city. Big telecom operators hate it, but new entrants want it. In any case, consumers would be the biggest gainers from this change. Big operators with a large subscriber base fear that introduction of number portability may result in large scale defection of subscribers, the paper said. TEC, a body under DoT responsible for technology validation and setting operating standards for the telecom sector, had earlier opposed number portability. In a note to the telecom commission, TEC had said the time was not ripe for number portability as it would increase the cost of calls. There are two methods of implementing number portability. One, a simple call forwarding service that is considered a relatively crude method. The second is to install intelligent networks to identify and route calls. But, there is lack of clarity over who will share the cost of installing the additional network. The consultation paper will seek answers to all questions, the paper said.