Mnp also has a potential for increasing customer

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Unformatted text preview: onsider the full implementation of number portability for all service areas. While MNP may promise a significant upside for some operators (those with lower market share), it could also pose serious challenges for others if the risks involving regulatory, operational and revenue assurance are not carefully managed. MNP also has a potential for increasing customer acquisition and retention costs. There are some potential risks and challenges that will need to be overcome for the launch of MNP: ► • Cost-conscious customers could be deterred by the porting charge that could be applied when a customer switches to another operator. ► • Switching between CDMA and GSMbased technologies may also result in an operational challenge of changing handsets. 22 22 TRAI press release No. 89/2008, 24 November 2008 India 2012: Telecom growth continues prepared to factor in various porting and non-porting costs. Porting costs may constitute the set-up, management, administration and transport costs. Non-porting costs may include the cost of promotions, customer service and value-added services. Hence, in order to ensure the successful implementation of this regime, various stakeholders of the industry, including the licensor, regulator, operators and industry associations, would need to work closely for an effective rollout of this service. Broadband — a key driver In October 2004, India’s wireless subscribers exceeded the fixed line base.23 Four years later, there are eight24 wireless connections for each fixed line. As the wireless growth continues, the fixed line base has been gradually declining. By end-September 2008, the fixed line base declined to 38.4 million25 from an all-time high of 41.5 million in March 2006.26 Yet, India’s fixed line network is the seventh-largest globally.27 The fall in fixed lines is not unique to India. China’s fixed line base has declined by a substantial 11.6 million from January 2008 to August 2008 to 354.1 million subscribers.28 But the difference is that fixed tele-density in China is substa...
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