Soon, retain old number on new operator

Surajeet Das Gupta & Siddharth Zarabi |   PTI |   August    01, 2008 | 03:25 IST

The government has decided to grant licences to two mobile number portability 
service providers in the country, who will act as a clearing house to allow
mobile users to seamlessly change their operator without changing their number.

A decision to this effect has been taken by the Department of 
Telecommunications and is likely to be announced by Communications Minister A 
Raja on Friday,
sources told Business Standard.

However, portability services, which were earlier expected to be launched by 
the end of the year in the four metros -- Delhi, Mumbai, Kolkata and Chennai
-- as well as Tamil Nadu, have now been delayed till February or March 2009 
(the DoT has said that it will start operations six months after the licence
is granted).

The department has also finalised the schedule for extending number portability 
across all circles by August-September of 2009, within one year from granting
the MNP licence.

The two MNP service providers, to be selected through a "beauty parade", will 
be neutral hosts connecting the operators and customers. They will function
as a sort of interconnect exchange that will have the required infrastructure, 
including a database of numbers, for porting calls. 

All existing and new mobile operators will connect to this exchange and ensure 
network compatibility. For a user, it means a seamless switch to a new carrier,
without his number changing at all.

Once implemented by August-September 2009, India's 300 million-odd subscribers 
will be able to choose their mobile operator at will without fearing that
they will lose their numbers.

Last year, the DoT had announced the introduction of number portability in 
phases and had set a December deadline to roll out the facility in the metros.

Under the proposed terms and conditions, each MNP operator will provide the 
service in 11 circles even though the launch will be in a phased manner starting
with the four metros and then expanding to other circles.

A key restriction has been imposed that bars a telecom service provider and an 
MNP operator from picking up any equity stake in each other's firms.

In addition, one MNP service provider will not be able to hold more than 10 per 
cent equity stake in the other MNP company. Foreign companies can become
MNP operators, but their holding cannot exceed 74 per cent.

The MNP service provider will need to have a combined net worth of Rs 100 crore 
and will not be allowed to dilute equity below 26 per cent for the first
three years.

The DoT has also put in stringent qualifications for the MNP service providers 
who will need to implement MNP solutions for a subscriber base of not less
than 25 million in one or more countries, for a continuous period of at least 
two years. 

(Sweety Bhalla)
Assistant Manager (Compliance)
IFCI  LTD
New Delhi India
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