Mixed signals emanate on portability

There are mixed signals within the government on introduction of number portability in the telecom sector, it is believed. Communications minister A Raja, while replying to media queries on Wednesday, said that the issue of “number portability” was being considered by the government, and that telecom operators would be consulted for the same.

However, sources in the Department of Telecommunications (DoT) pointed out that “number portability is not a priority issue for the government at this point.”

Raja was speaking to reporters on the sidelines of a conference organised to launch the Telecom Equipment Manufacturers Association’s (TEMA) Export Promotion Forum. According to the minister, the spectrum policy would be in place before the end of this year.

Besides the spectrum policy, DoT would also be busy formulating fresh licensing and merger and acquisition rules once the telecom regulator issues its recommendations, sources pointed out. The Telecom Regulatory Authority of India (Trai) is expected to come out with its recommendations on the new licensing rules next week. So, DoT may not have time to focus on number portability in the near future, sources argued. Also, as many of the telecom operators are opposed to the idea of number portability, it may not be introduced so soon, it is learnt.

Trai had, in March 2006, recommended that the facility of mobile number portability should be in place by April 2007. That was one of the last recommendations/orders issued by former Trai chairman Pradip Baijal. The government has already missed the deadline set by Trai by around four months.

A representative in the GSM industry recently said, “the industry is not fighting number portability, but its timing”.

Number portability is all about shifting to another service provider, while retaining your phone number. The move would have stepped up competition in the telecom industry, thereby improving the quality of service as all service providers would have made an effort to prevent customers from switching to competition.

The Trai recommendation, issued in March 2006, was only for introducing number portability in mobile telephony and not fixed phones.

The regulator wanted the rollout to begin on April 1, 2007, across metros, and then moving to A, B and C category cities within six months.

Most mobile operators have been against the introduction of number portability, as they don’t want to let go of the customer base that they have built. They have been arguing that it’s a case of misplaced priority.

Industry estimates suggest that anything between Rs 1,500 crore and Rs 3,000 crore is required as a one-time cost for upgrading the networks to enable number portability.