EXECUTIVE SUMMARY

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.

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1. INTRODUCTION TO MOBILE NUMBER PORTABILITY SYSTEM

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.

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2. INTRODUCTION OF COMPANIES

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.

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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.

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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 5

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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3. RESEARCH OBJECTIVES
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.

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4. RESEARCH METHODOLOGY
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.

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5. DATA ANALYSIS AND INTERPRETATION CUSTOMER PERSPECTIVE
Q.1. Which cellular service do you use? Objective: To know who is the dominant player in Pune market.
Service Provider
Airtel Reliance Vodafone BSNL Tata Indcom Tata Docomo Idea Aircel Virgin TOTAL

Users
30 20 9 7 4 9 25 5 1 110

35 30

Number of Users

25 20 15 10 5 0 Airtel Reliance Vodafone BSNL Tata Tata Indcom Docomo Idea

30 20 9 4 7 9

25
1
Virgin

5
Aircel

Service Provider

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.

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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 No 82 28

Satisfied with Current Service Provider?
28, (25%)

82, (75%)

Yes No

Out of all 110 respondents, 82 (75%) respondents are satisfied and 28 (25%) respondents were not satisfied with the services of current service provider.

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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? Yes No

Response 78 (71%) 32 (29%)

Prefer to change service provider?
32, (29%)

78, (71%) Yes No

Out of 110 respondents 78 respondents would like to change their service provider if given a chance to which provider with same mobile number.

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Satisfied Willing to Change Not willing to change TOTAL 54 28 82

Not Satisfied 24 4 28

TOTAL 78 32 110

90 80 70 60 50 40 30 20 10 0

28 Not willing to change Willing to Change

54

4

24

Satisfied

Not satisfied

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.

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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 Flexibility to change service provider low switching cost low tariffs of other providers More Value added service by other provider Worst service of Current provider TOTAL No. of Customers 19 (25%) 08 (10%) 26 (33%) 18 (23%) 07 (9%) 78 (100%)

Reason for changing the service provider
9% 23% 25%

Flexibility to change service provider low switching cost

10%
33%

low tariffs of other providers More Value added service by other provider Worst service of Current provider

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. 13

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
Happy with current provider corporate Plan, So can Not change

No. of Respondents 30 2

Reason for not changing
6%

94%

Happy with current provider
corporate Plan, So can Not change

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.

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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 Low Tarriffs Flexibility Good Network More VAS Total No. of Responses 44 33 17 21 115

ADVANTAGES FOR CUSTOMER
No. of Responses
50 40 30 20 10 0 Low Tarriffs Flexibility Good Network More VAS

44

33 17 21

Advantages

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. 15

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.

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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 Problem Difficult to Indentify the caller's service provider Network Problem Time for Switching No. of Responses 77 18 13 2

Problems for Customers
80

No of Respondents

60 40 20 0 No Problem Difficult to Indentify the caller's service provider Network Problem Time for Switching

77

18

13

2

Problems

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. 17

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
Increase Customer Don’t have to issue new Numbers No advantage Increase Revenue

No of Responses
14 1 9 1

ADVANTAGES FOR SERVICES PROVIDER
14 12

No. Of responses

10 8 6 4 2 0 Increase Customer Don’t have to issue new Numbers No advantage Increase Revenue

14 9 1 1

ADVANTAGES 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.

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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 Have to give Promotional Schemes Upgrage network Difficult to identify customer Lose customer Increase Competition Database Maintenance Sale of new SIM card decrease Difficult to retain customer Financial Loss High Investment Customer will rule market Decrease customer loyalty No Problem No. of responses 1 4 3 12 4 1 2 2 3 1 2 2 1

PROBLEMS FOR SERVICES PROVIDER
15 No. of Responses 10 5 0 1 4 3 12 4 1 2 2 3 1 2 2 1

Problems

When services provider were asked about the problems of MNPS, 12 responses went to lose customer. Services provider have to upgrade their network and

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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.

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6. OBSERVATIONS AND FINDINGS

 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. 21

 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.

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7. LIMITATIONS OF STUDY

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.

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8. RECOMMENDATIONS

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.

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9. CONCLUSION

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.

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10. REFERENCES

Websites: 1. www.wikipedia.com 2. www.trai.gov.in 3. www.justdail.com

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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 Vodafone Tata Indicom Idea Virgin Q.2. Are you satisfied with the services of your current service provider? Yes No Reliance BSNL Tata Docomo Aircel

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
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(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
Name: Roll No. 35 Signature Above 45 Date

Respondent Profile
Name Age: 15 - 20 21 –

36-45

Occupation Contact No Signature
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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
Name: Roll No. Signature Date

Respondent Profile
Name Age: 15 - 20 36-45 Occupation Contact No Signature
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21 - 35 Above 45

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