Mobile Number Portability (MNP) The trend of smartphone users has decreased. In October 2019, mobile number portability declined by 24 per cent on a month-on-month basis. Statistics indicate that there has been a lack of interest in changing the telecom company while retaining its mobile number. Perhaps this is because Airtel, Vodafone-Idea and Reliance Jio have almost equal rates and network quality among these three private companies.
41 lakh cases of MNP in October
Industry executives and analysts say the decline in mobile number portability (MNP) is good news for telecom companies. This means that companies will not have to invest much to retain their existing customers. The ICICI Securities report based on TRAI’s subscriber data for October said that mobile number portability declined to 41 lakh in October last year from 54 lakh in the previous month. Also, the MNP churn rate also came down to 0.3 per cent, from 0.5 per cent in September 2019.
Now you are not getting the benefit of prices
Rajan Mathews, Director General, Cellular Operators Association of India, said, “The main reason for portability is cheap plans. Earlier you could take advantage of the prices, but now the prices of all the telecom companies are same, due to which there is no reason for porting. The recent increase in tariff rates is a major step in the telecom sector. The tariff war between telecom companies has been going on for three years.
Telecom companies have increased the rates of some of their plans by up to 33 per cent. However, Reliance Jio says that its plans are 25 per cent cheaper than its competitors. Analysts say that differences in charges alone are not sufficient to port mobile numbers. Matthew says, “Maintaining an old customer is more expensive than acquiring a new customer.” In case of new customers, the telecom companies have to pay for the verification process. However, in the event of losing old customers, telecom operators have to work extra hard to keep them with them.