number portability system - pros and cons
TRANSCRIPT
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
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
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
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.
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
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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.
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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
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
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
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
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
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
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
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
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
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.
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
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
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
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.
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
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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.
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
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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
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
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Websites:
1. www.wikipedia.com
2. www.trai.gov.in
3. www.justdail.com
10. REFERENCES
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
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
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