Mobile Number Portability in India – Post-paid users most likely to switch

While MNP implementation has been delayed, there is a general fear among operators on the impact MNP will have – and how it can potentially impact their cost (need to invest a lot more in retention and of course, improve the QoS).

As per a survey conducted by A C Nielsen (12,500 mobile subscribers were surveyed across 50 centers in India), 1 in four Reliance and Tata Indicom subscribers would be keen to change their operator if Mobile Number Portability is introduced, followed by close to one in five (19%) of BSNL subscribers.

Couple of interesting insights

  • High spenders, postpaid subscribers and business subscribers show a greater tendency to switch if Mobile Number Portability is introduced.
  • Prepaid, low and medium spend users are not motivated to switch.
  • Postpaid subscribers have almost double the minutes of usage compared to pre-paid subscribers and the incidence of data application usage is also higher among postpaid and high spenders.
  • More than half (55%) of all respondents were generally satisfied with their mobile operator and 48 percent were satisfied with the network quality.
  • 46 percent were satisfied with the network coverage area of their operator and 43 percent were satisfied with the price they paid for the mobile phone service by their operator.
mobile number portability in India
Mobile Number Portability - Switch Operator

Leasy Loyal Subscribers are in following Circles

Mumbai and Delhi Metro, UP East and West, Gujarat, Rajasthan, Andhra Pradesh, Karnataka, Kerala, and Rest of West Bengal (does not include Kolkata Metro)

High Retention Circles

Circles in which subscribers show higher retention levels are Chennai Metro, Haryana, Himachal Pradesh, Punjab, UP East, Rest of Maharashtra (does not include Mumbai Metro), Rest of Tamil Nadu (does not include Chennai Metro), Bihar, and Jharkhand.

mobile number portability in India - Intention to switch operators
Mobile Number Portability - Intent Matters
[View the report here (doc)]

Some Perspective

Except Finland and HK, most countries have witnessed less than 5% of switch in first 12 months of introduction of MNP. More than 90% of Indian mobile users are on prepaid connections and do not have number loyalty (~churn rate of 4% on monthly basis) – the switching cost of Rs. 300 is pretty much the same as a monthly rental (or maybe, more than that). Unless operators start offering compelling services, do you sense major uptake in the first few years? Recommended Read: Mobile Number Portability in India – Details/Perspective

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