number portability system - pros and cons

29
1 Mobile number portability is simply keeping your mobile phone number when moving from your existing service provider to a new provider. The study was a comparative study, done to know the pros and cons of Mobile Number Portability System (MNPS) from both customer'’ as well as services provider’s perspective. Data were obtained through personal interview method at Pune. Two questionnaires were prepared; one for cellular service providers and second for the customers. Total 135 Samples were taken for the study, among them 110 were customer and 25 were service providers. After the Study, it was found that, Customers are eagerly waiting for such a service, where customer can change service provider without changing mobile number. Introduction of MNPS will lead to number of advantages to the customers like low tariff, flexibility to change, good network and more VAS. Major drawback of MNPS for customer will be relatively less as compared to that of service provider. Service providers do not seem to be happy size, if MNPS comes in to action. They will face problems like losing customer base, cut-throat competition, and financial loss and also they will have to upgrade their network. Conclusion: Mobile Number Portability System is full of advantages to the customer, but is full of problems and loss for service providers. EXECUTIVE SUMMARY

Upload: nipurnmeha007

Post on 18-Nov-2014

118 views

Category:

Documents


3 download

TRANSCRIPT

Page 1: Number Portability System - Pros and Cons

1

Mobile number portability is simply keeping your mobile phone number

when moving from your existing service provider to a new provider.

The study was a comparative study, done to know the pros and cons of

Mobile Number Portability System (MNPS) from both customer'’ as well

as services provider’s perspective.

Data were obtained through personal interview method at Pune. Two

questionnaires were prepared; one for cellular service providers and

second for the customers. Total 135 Samples were taken for the study,

among them 110 were customer and 25 were service providers.

After the Study, it was found that, Customers are eagerly waiting for such

a service, where customer can change service provider without changing

mobile number. Introduction of MNPS will lead to number of advantages

to the customers like low tariff, flexibility to change, good network and

more VAS. Major drawback of MNPS for customer will be relatively less

as compared to that of service provider.

Service providers do not seem to be happy size, if MNPS comes in to

action. They will face problems like losing customer base, cut-throat

competition, and financial loss and also they will have to upgrade their

network.

Conclusion: Mobile Number Portability System is full of advantages to the

customer, but is full of problems and loss for service providers.

EXECUTIVE SUMMARY

Page 2: Number Portability System - Pros and Cons

2

Mobile number portability means you can keep your existing mobile

telephone number when you change your service provider.

Mobile number portability is simply keeping your mobile phone number when moving

from your existing service provider to a new provider. It means you will use the services

and features offered by your new provider and not take your existing service and its

features with you.

1. INTRODUCTION TO MOBILE

NUMBER PORTABILITY SYSTEM

Page 3: Number Portability System - Pros and Cons

3

Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest

cellular service provider in India, with more than 110 million subscribers as of

2009. With this, Bharti is now the world's third-largest, single-country mobile

operator and sixth-largest integrated telecom operator. It also offers fixed line

services and broadband services. It offers its TELECOM services under the Airtel

brand and is headed by Sunil Bharti Mittal. The company also provides

telephone services and Internet access over DSL in 14 circles. It also acts as a

carrier for national and international long distance communication services. In

2009 Airtel has also launched its services in Sri Lanka.

Reliance Communications, formerly known as Reliance Infocomm, along with

Reliance Telecom and Flag Telecom, is part of Reliance Communications

Ventures. It is the second largest mobile operator in India, based on number of

subscribers. According to National Stock Exchange data, Anil Dhirubhai

Ambani controls 66.77 per cent of the company, which accounts for more than

1.36 billion shares. It is the flagship company of the Reliance-Anil Dhirubhai

Ambani Group, comprising of power (Reliance Energy), financial services

(Reliance Capital) and telecom initiatives of the Reliance ADAG.

2. INTRODUCTION OF COMPANIES

Page 4: Number Portability System - Pros and Cons

4

Bharat Sanchar Nigam Limited (known as BSNL, India Communications

Corporation Limited) is a state-owned telecommunication company in India.

BSNL is the fourth largest cellular service provider, with over 53.96 million

customers as of March 31, 2009 and the largest land line telephone provider in

India.

BSNL is India's oldest and largest Communication Service Provider. BSNL

launched 3G services in 11 cities of country in 2nd march 2009.MTNL which

operates in Mumbai and Delhi first launched 3G services in these cities.

Vodafone Essar, formally known as Hutchison Essar is a cellular operator in

India that covers 23 telecom circles in India based in Mumbai. Vodafone Essar is

owned by Vodafone 67% and Essar Group 33%. It is the Third largest mobile

phone operator in terms of revenue behind Bharti Airtel, and third largest in

terms of customers. As of June 31, 2009, Vodafone India has 18.8% customer

market share and 20.7% revenue market share.

Idea Cellular is owned by Aditya Birla Group. Idea Cellular is a wireless

telephony company operating in all the 22 telecom circles in India based in

Mumbai. It is the 5rd largest GSM company in India behind, Airtel, Reliance,

Vodafone, and BSNL. Idea Cellular won the GSM Association Award for "Best

Billing and Customer Care Solution" for 2 consecutive years.

Page 5: Number Portability System - Pros and Cons

5

TATA DOCOMO is a Tata Teleservices Limited's (TTSL) cellular service

provider on the GSM platform-arising out of the Tata Group's strategic joint

venture with Japanese telecom giant NTT Docomo in November 2008. Tata

Teleservices has received a pan-India license to operate GSM telecom services,

under the brand "TATA DOCOMO" and has also been allotted spectrum in 18

telecom Circles. TTSL has already rolled out its services in various circles. It has

become very popular with its one second pulse especially in semi-urban and

rural areas.

Aircel is a mobile phone service provider in India. It offers both prepaid and

postpaid GSM cellular phone coverage throughout India. Aircel is a joint

venture between Maxis Communications of Malaysia and Apollo Hospital

Enterprise Ltd of India. Maxis has a 74% stake in Aircel and the remaining 26%

is with Apollo Hospitals. It is India’s fifth largest GSM mobile service provider

with a subscriber base of over 27.7 million, as of October 31, 2009. Aircel has won

many awards for its services. Aircel was honored at the World Brand Congress

2009 with three awards, Brand Leadership in Telecom, and Marketing Campaign

& Marketing Professional of the Year.

Virgin Mobile India Limited is a cellular telephone service provider company

which is a joint venture between Tata Teleservices and Richard Branson's Virgin

Group. Currently, the company uses Tata's CDMA network to offer its services

under the brand name Virgin Mobile, and it has also started GSM sevices in

some states

Page 6: Number Portability System - Pros and Cons

6

Tata Teleservices Limited (TTSL) is a part of the Tata Group of companies

based in Navi Mumbai, an Indian conglomerate. It operates under the brand

name Tata Indicom in various telecom circles of India. Tata Teleservices

spearheads the Group’s presence in the telecom sector. Incorporated in 1996,

Tata Teleservices was the first to launch CDMA mobile services in India with the

Andhra Pradesh circle.

Page 7: Number Portability System - Pros and Cons

7

1. To know acceptability of Mobile Number Portability System to customer.

2. To find out pros and cons of Mobile Number Portability System for

mobile users.

3. To find out pros and cons of Mobile Numbers Portability System for

Cellular service providers.

3. RESEARCH OBJECTIVES

Page 8: Number Portability System - Pros and Cons

8

Data Sources

Both primary data and secondary data were used for the study.

Primary data were collected by survey method. Questionnaire was

administered by contacting each respondent personally.

Secondary data were collected form internet.

Geographical Scope

Cellular services providers in Pune Market.

Professionals, Businessmen, and students in Pune.

Sampling Plan

Sample Size: A sample size of 135 respondents was taken for the

study. Among them 25 were cellular services providers and 110

were the customers of cellular services providers.

Sampling Method: Non-probability/Convenience sampling method

was used for the study.

4. RESEARCH METHODOLOGY

Page 9: Number Portability System - Pros and Cons

9

CUSTOMER PERSPECTIVE

Q.1. Which cellular service do you use?

Objective: To know who is the dominant player in Pune market.

Service Provider Users Airtel 30

Reliance 20

Vodafone 9

BSNL 7

Tata Indcom 4

Tata Docomo 9

Idea 25

Aircel 5

Virgin 1

TOTAL 110

Out of 110 customers Airtel with 30 (27.3%) customers was found dominating

player in Pune market followed by Idea and Reliance with 25 (22.7%) and 20

(18.2%) customers respectively.

30

20

9 7 4

9

25

5 1

0

5

10

15

20

25

30

35

Airtel Reliance Vodafone BSNL TataIndcom

TataDocomo

Idea Aircel Virgin

Nu

mb

er o

f U

sers

Service Provider

5. DATA ANALYSIS AND INTERPRETATION

Page 10: Number Portability System - Pros and Cons

10

Q.2. Are you satisfied with the services of your current service provider?

Objective: To know whether the customers are satisfied with current

service provider or not.

Q.2. Satisfied with Current Service Provider?

Yes 82

No 28

Out of all 110 respondents, 82 (75%) respondents are satisfied and 28 (25%)

respondents were not satisfied with the services of current service provider.

82, (75%)

28, (25%)

Satisfied with Current Service Provider?

Yes

No

Page 11: Number Portability System - Pros and Cons

11

Q.3. Would you like to change your service provider, if given a chance to

change it without changing your mobile number? (Mobile Number

Portability System)

Objective: To check the willingness of customers to accept Mobile Number

portability.

Prefer to Change? Response

Yes 78 (71%)

No 32 (29%)

Out of 110 respondents 78 respondents would like to change their service

provider if given a chance to which provider with same mobile number.

78, (71%)

32, (29%)

Prefer to change service provider?

Yes

No

Page 12: Number Portability System - Pros and Cons

12

From above table and chart, it was found that out of total 82 customers who

were satisfied with the services of current provider, 54 customers are willing to

change their service provider.

Out of 28 customers who were not satisfied with the services of current services

provider, 24 customers were willing to change their services provider.

Conclusion:

Large number of customers was satisfied with the services but even then they

were willing to change their service provider in search of better prospects. So If

Mobile Number Portability system comes into action, there is a chance that

people will accept it.

Satisfied Not Satisfied TOTAL

Willing to Change 54 24 78

Not willing to change 28 4 32

TOTAL 82 28 110

0

10

20

30

40

50

60

70

80

90

Satisfied Not satisfied

54

24

28

4

Not willing to change

Willing to Change

Page 13: Number Portability System - Pros and Cons

13

Q.4 (A) Why will you change your service provider?

Objective: To know the reasons that will influence them for switching the

service provider.

REASON FOR CHANGE No. of

Customers

Flexibility to change service provider 19 (25%)

low switching cost 08 (10%)

low tariffs of other providers 26 (33%)

More Value added service by other provider

18 (23%)

Worst service of Current provider 07 (9%)

TOTAL 78 (100%)

Out of 78 customers who were willing to change;

26 (33%) customer are willing to change in search of low tariffs of other

service providers,

19 (25%) customer want to change because of flexibility to change service

provider without changing mobile number,

18 (23%) customer want to change because of more value added services

provided by other services provider,

8 (10%) and 7 (9%) were willing to change because of low switching cost

and worst services of current services provider.

25%

10%

33%

23%

9%

Reason for changing the service provider

Flexibility to change serviceprovider

low switching cost

low tariffs of other providers

More Value added service byother provider

Worst service of Currentprovider

Page 14: Number Portability System - Pros and Cons

14

Q.4 (B) If you do not like to change the service provider, please specify

the reason. (Open Ended)

Objective: To know the reason, why people will not change their service

provider in spite of option to keep their mobile number the same.

Reason No. of

Respondents

Happy with current provider

30

corporate Plan, So can Not change

2

Out of 32 customers who were not willing to change;

30 (94%) customers are not willing to change because they are happy with

their current cellular service provider.

2 (6%) customers are not willing to change because they have corporate

plan provided by their organizations, so even if they are willing to

change, they cannot change.

94%

6%

Reason for not changing

Happy with currentprovider

corporate Plan, Socan Not change

Page 15: Number Portability System - Pros and Cons

15

Q.5. What do you think, the advantages you will have if Mobile

Number Portability System comes in to action? (Open Ended)

Objective: To know what will be the advantages for customer, if Mobile

Number Portability System comes into action.

Reason No. of Responses

Low Tarriffs 44

Flexibility 33

Good Network 17

More VAS 21

Total 115

After the study, it was found that major advantages for customers if Mobile

Portability System comes into action were

1. Low tariffs:

44 responses said that if NPS comes into action, they will get services at

low tariffs.

2. Flexibility

33 responses said that there will be flexibility in changing the services

provider without changing mobile number. They will also get flexibility

to switch the service provider if customer is not happy with the services

of current provider.

0

10

20

30

40

50

Low Tarriffs Flexibility GoodNetwork

More VAS

44 33

17 21

No

. of

Res

po

nse

s

Advantages

ADVANTAGES FOR CUSTOMER

Page 16: Number Portability System - Pros and Cons

16

3. Good network

17 responses said that they will get good network because all cellular

service providers will serve them better to sustain in competitive market.

4. More value added services (VAS).

21 responses came about More VAS, i.e. customer will get more value

added services at cheaper rates.

Page 17: Number Portability System - Pros and Cons

17

Q.6. What do you think, the problems you will face if Mobile Number

Portability System comes in to action?

Objective: To know what will be the problems for customer, if Mobile

Number Portability System comes into action.

Response No. of

Responses

No Problem 77

Difficult to Indentify the caller's service provider

18

Network Problem 13

Time for Switching 2

When respondents were asked about the problems they might face with

introduction of Mobile Number Portability System,

77 respondents responded that they will not face any problem if MNPS

comes in to action,

18 respondents said that they will face difficulty to identify the caller’s

service provider.

13 said that they will face network problem because churning of

customers will increase and will cause network conjunctions.

2 respondents were not happy with the idea of time taken to switch

between providers as it takes 72 hours (as per current suggestion of TRAI)

to switch from one provider to another.

0

20

40

60

80

No Problem Difficult toIndentify the

caller's serviceprovider

NetworkProblem

Time forSwitching

77 18 13 2

No

of

Re

spo

nd

en

ts

Problems

Problems for Customers

Page 18: Number Portability System - Pros and Cons

18

SERVICE PROVIDER PERSPECTIVE

Q.1. What do you think, the advantages you will have if Mobile

Number Portability System comes in to action?

Objective: To know the advantages for services provider, if Mobile

Number Portability System comes into action.

ADVANTAGES No of Responses

Increase Customer 14

Don’t have to issue new Numbers 1

No advantage 9

Increase Revenue 1

From above table and graph, it can be seen that, 14 services providers said that

they will increase customer. 9 service providers said that they will not have any

advantage if MNPS comes in to action. 1 respondent said that they will not have

to issue new mobile numbers so they could control their expenses and 1 said that

introduction of MNPS will increase the revenue of the company.

0

2

4

6

8

10

12

14

IncreaseCustomer

Don’t have to issue new Numbers

No advantage IncreaseRevenue

14

1 9

1

No

. Of

resp

on

ses

ADVANTAGES

ADVANTAGES FOR SERVICES PROVIDER

Page 19: Number Portability System - Pros and Cons

19

Q.6. What do you think, the problems you will face if Mobile Number

Portability System comes in to action?

Objective: To know what will be the problems for cellular services

providers, if Mobile Number Portability System comes into action.

Problems No. of responses

Have to give Promotional Schemes 1

Upgrage network 4

Difficult to identify customer 3

Lose customer 12

Increase Competition 4

Database Maintenance 1

Sale of new SIM card decrease 2

Difficult to retain customer 2

Financial Loss 3

High Investment 1

Customer will rule market 2

Decrease customer loyalty 2

No Problem 1

When services provider were asked about the problems of MNPS, 12 responses

went to lose customer. Services provider have to upgrade their network and

0

5

10

15

1 4 3

12

4 1 2 2 3

1 2 2 1

No

. of

Re

spo

nse

s

Problems

PROBLEMS FOR SERVICES PROVIDER

Page 20: Number Portability System - Pros and Cons

20

competition will increase was some of the major problems services providers

will face after MNPS comes into action.

Also sale of new SIM card will affect was also a point made by 2 services

provider.

If MNPS will come in to the action, customer will have complete control over

market. They will rule the market.

One big problem will be of identifying the customer as his/her number will not

change and service provider will change. So tapping customer’s service provider

will be a challenge for service providers.

Page 21: Number Portability System - Pros and Cons

21

Airtel was found the most dominating player in Pune market, followed

by Idea and Reliance.

78 respondents out of 110 would like to change their service provider

with same mobile number, in spite of being satisfied with current service

provider. So if Mobile Number Portability comes into action, people may

certainly accept the system.

Out of 78 customers who were willing to change;

26 (33%) customer are willing to change in search of low tariffs of

other service providers,

19 (25%) customer want to change because of flexibility to change

service provider without changing mobile number,

18 (23%) customer want to change because of more value added

services provided by other services provider and 8 (10%) and 7 (9%)

were willing to change due to low switching cost and worst services

of current service provider.

If Mobile Number Portability comes into action, customers will have

benefits like:

Services at low tariffs

They will be flexible to change services provider without changing

the number.

All services provider will try to give better services to customer in

order to gain market share. This rise in competition will result in

intensive price war among the cellular services providers and will

benefit to customers.

Cut throat competition will enable services providers to offer better

Value Added Services at cheaper prices.

Major problem for customers will be to identify counterpart’s service

provider.

6. OBSERVATIONS AND FINDINGS

Page 22: Number Portability System - Pros and Cons

22

Network problems will also arise because there will be huge churning

rate. Customer will keep on switching networks which will result in

Network related problems.

According to Services provider, they will gain customers due to MNPS if

they provide quality services and customer satisfaction to Users.

On the other services provider also says that if they fail to provide better

services, they will lose their market share.

Customer loyalty and retention ration will affect.

Services provider will also have to update their networks in fight their

rivals.

Page 23: Number Portability System - Pros and Cons

23

1. As Number Portability System is yet to be launched, scope was study was

limited to the perception of samples.

2. Mobile users are not yet fully aware about Number Portability so

administering questionnaire was a difficult.

3. Providers were also not aware about Number portability, so their views

were differing to each provider.

4. Lack of resources like time, mode of transportation to Survey team.

7. LIMITATIONS OF STUDY

Page 24: Number Portability System - Pros and Cons

24

1. TRAI (Telecom Regulatory Authority of India) should take into

consideration, the pros and cons to services providers before launching

Number portability System in India.

2. TRAI should try and make out some benefits for the services provider so that

they mutually accept the System.

3. To remain untouched by the effects of Number Portability system, service

provider should put their all efforts on making customers, brand loyal and

concentrate more on customer retention than on making new customers.

8. RECOMMENDATIONS

Page 25: Number Portability System - Pros and Cons

25

1. In Pune market, Airtel is the top player. Idea is on Second followed by

Reliance.

2. Customers at Pune are willing to switch Service provider if they are given

an option to switch with same mobile number.

3. Mobile Number Portability System will change the scenario of the

telecom Industry. Earlier the only way a service provider was able to hold

their customer was by the mobile number. But now if MNPS comes in to

action customer will have freedom to switch with same number so

customer will rule the market.

4. In this battle between customers and service providers, service provider

will have to surrender against customers.

9. CONCLUSION

Page 26: Number Portability System - Pros and Cons

26

Websites:

1. www.wikipedia.com

2. www.trai.gov.in

3. www.justdail.com

10. REFERENCES

Page 27: Number Portability System - Pros and Cons

27

APPENDIX

Questionnaire (Customer)

Topic: Comparative Survey on Pros and Cons of Mobile

Number Portability System

Dear Sir/Madam,

I am a student of 1st Year MBA of Indira School of Career Studies, Wakad, Pune.

I request you to spare sometime to consider the following questionnaire. The

intention of this project is purely academic; all information provided by you will

be kept strictly confidential. Be as truthful as you can.

Thank you for your co-operation.

Q.1. Which cellular service do you use?

Airtel Reliance

Vodafone BSNL

Tata Indicom Tata Docomo

Idea Aircel

Virgin

Q.2. Are you satisfied with the services of your current service provider?

Yes No

Q.3. Would you like to change your service provider, if given a chance to

change it without changing your mobile number? (Mobile Number

Portability System)

Yes No

(A) If yes, Why will you change your service provider?

Flexibility to change Service Provider without changing Cell

Number

Low switching cost

Low tariffs of other providers

More Value Added Services by other providers

Others, please specify

Page 28: Number Portability System - Pros and Cons

28

(B) If no, please specify the reason?

Q.5. What do you think, the advantages you will have if Mobile Number

Portability System comes in to action?

Q.6. What do you think, the problems you will face if Mobile Number

Portability System comes in to action?

Surveyor Respondent Profile

Name: Name

Roll No. Age: 15 - 20 21 –

35

Signature 36-45

Above 45

Date Occupation

Contact No

Signature

Page 29: Number Portability System - Pros and Cons

29

Questionnaire (Service Provider)

Topic: Comparative Survey on Pros and Cons of Mobile Number

Portability System

Dear Sir/Madam,

I am a student of 1st Year MBA of Indira School of Career Studies, Wakad, Pune.

I am doing a research on “Comparative Study of pros & Cons of Mobile Number

portability System”. I request you to spare sometime to consider the following

questionnaire. The intention of this project is purely academic; all information

provided by you will be kept strictly confidential. Be as truthful as you can.

Thank you for your co-operation.

Q.1. What do you think, the advantages you will have if Mobile Number

Portability System comes in to action?

Q.2. What do you think, the problems you will face if Mobile Number

Portability System comes in to action?

Surveyor Respondent Profile

Name: Name

Roll No. Age: 15 - 20 21 - 35

Signature 36-45 Above 45

Date Occupation

Contact No

Signature