PRO1ECT REPORT

FOR AIRCEL TELECOM

PREPARED BY

"1HE BEACOA"










Acknowledgements

We would like to thank our supervisor, Mr. Ranjit Suraj Singh
and Mr. Himanshu Sharma Ior the valuable guidance and
support he has given us in this project. We would also like to
thank our Industry Engagement Program team Ior providing us
this great opportunity. Our deepest thanks go to our respondents,
peers, and Iriends Ior their understanding and support.



PREFACE

This project on MOBILE NUMBER PORTABILITY gives us
the inIormation about the consumers behavior towards the
Mobile Number Portability and also their concerns towards
prepaid and postpaid service providers
lNTnooucTioN
9enables mobile telephone users to retain their mobile telephone numbers when
changing Irom one mobile network operator to another.
A signiIicant technical aspect oI MNP (Mobile Number Portability) is related to the
routing oI calls or mobile messages (SMS, MMS) to a number once it has been ported. There are
various Ilavours oI call routing implementation across the globe but the international and
European best practice is via the use oI a central database (CDB) oI ported numbers. Network
operator makes copies oI CDB and queries it to Iind out which network to send a call to. This is
also known as All Call Query (ACQ) and is highly eIIicient and scalable. Majority oI the
established and upcoming MNP systems across the world are based on this ACQ/CDB method oI
call routing. One oI the very Iew countries to 349 use ACQ/CDB is the UK where calls to a
number once it has been ported are still routed via the Donor network. This is also known as
'Indirect Routing' and is highly ineIIicient as it is wasteIul oI transmission and switching
capacity. Because oI its Donor dependent nature, Indirect Routing also means that iI the Donor
network develops a Iault or goes out oI business, the customers who have ported out oI that
network will lose incoming calls to their numbers.



BENEFITS OF MNP: -
MNP enables customers to keep their mobile number when changing to another operator.
The beneIits are usually seen as the savings in not having to change stationery or inIorm contacts
oI the new number. The retention oI the same number will enable some business customers,
especially those on the move such as electricians and salesmen, to maintain their contacts and
Ilow oI business.
However Ior many customers, especially pre-pay customers, the beneIits may be
minimal, especially iI they use the mobile phone to keep in touch only with a small circle oI
Iriends and relatives. Indeed, some pre-pay customers may be quite happy to lose their previous
number iI they do not wish to hear Irom certain acquaintances! In many countries about 20 -
25 oI customers churn each year, but porting rates are well below this level, suggesting that
most customers are happy to change operators without using MNP.
The actual beneIits oI MNP may be quite limited, and restricted mainly to corporate
customers who use MNP to move more easily between mobile operators, and thus gain better
prices and customer service. The majority oI customers may gain the secondary beneIits oI lower
prices iI the introduction oI MNP leads to increased competition between the operators, as
happened in Hong Kong where it was introduced at the same time as additional competitors
entered the wireless market. However whether these wider beneIits materialize depends on other
Iactors - the competitive dynamics oI the market, the amount oI publicity given to the availability
oI MNP, and the extent to which resellers and service providers are motivated to push MNP to
the customer, Ior example. In some countries the process oI porting is complicated; service
providers receive no additional commission Ior porting customers, and so are not motivated to
promote the service. The main beneIit oI mobile number portability (MNP) is Ireedom oI choice.
You are Iree to choose a new mobile service provider without losing your existing number.
II you are not satisIied with your existing provider, you don't have to stay just to keep
your number. II you are in business, keeping your number when changing phone companies
means you will avoid missing calls, reprinting stationery and having any signage redone. For
individuals it means avoiding the inconvenience oI having to notiIy Iriends and associates that
you've changed your number.




























TccHNicALiTics

Porting Procedure for Subscriber
W Contact the new mobile Service Provider to whom you want to port your mobile number.
W Read the eligibility and other conditions careIully. Please visit www.trai.gov.in Ior Iurther
details.
W Obtain Customer acquisition From (CAF) & Porting Form.
W II eligible, Obtain Unique Porting Code by sending an SMS Irom the mobile number you
want to port to the number 1900` with text PORT` Iollowed by space Iollowed by your
10 digit mobile number you want to port.
W Fill up the CAF and Porting Form.
W Submit the duly Iilled Porting Form and CAF along with requisite documentary prooI oI the
mobile service provider.
W II you are a post paid subscriber, submit a paid copy oI the last bill issued along with the
Porting Form and CAF.
W Obtain new SIM card Irom the new service provider.
Subscriber can withdraw the porting request within 24 hrs oI applying.

Activation of Ported Number
W Subscriber new mobile service provider will intimate you the date & time oI porting on your
mobile phone.
W Replace the old SIM with the new SIM provided by your new mobile service provider aIter the
speciIied date and time.

Eligibility and other Conditions for Porting a Mobile Number
W Subscriber is allowed to move to another mobile service provider only aIter 90 days oI the date
oI the activation oI that mobile connection or Irom the date oI porting oI the mobile
number, whichever is applicable.
W Subscriber is allowed to change mobile service provider within the same service area only.
W II you are a Post-paid subscribers, please ensure that you have paid all the dues as per your last
bill (subscriber will have to sign an undertaking in the Porting Form also).
W II you are Pre-paid subscriber, please note that the balance amount oI talk time, iI any, at the
time oI porting will lapse.

Proportion of mobile customers porting per quarter

The table shows that the Iive countries Iall into two clear groups - one where MNP take up has
exceeded 15 oI mobile customers per year (Finland and Hong Kong), suggesting that the
majority oI churning customers are using MNP. In the second group, MNP has not risen above
5 oI customers (Australia, Sweden and UK), suggesting that most churning customers are
ignoring MNP.
In Table 3 we show the diIIerence between these countries in terms oI what we believe to be the
critical success Iactors Ior MNP:
W how long does it take to complete the porting process?
W does the customer have to pay to port?
W which operator does the customer have to contact to start theporting process?
W is the availability oI MNP well publicized and marketed?







Critical success factors for MNP

Country
Date of
implementation
Time to
port
User
charge
(US $
First
contact
Publicity
Australia October 2001 3 hours 6.25 Recipient NRA publicity at start
Finland August 2003 5 working
days
Recipient Actively marketed by
operators
Hong Kong March 1999 1 -2 days Recipient Actively marketed by
NRA
and new operators
Sweden August 2001 10 working
days
Variable Recipient Some
United
Kingdom
January 1999 5 working
days*
2.50 Donor Minimal
* i3 addi9i43 90 p479i3 cus94207 300ds 94 4-9ai3 a p479i3 au947i:a9i43 f742 90 d4347
4p07a947
This table suggests that MNP is likely to be successIul iI the process has been designed to
minimize the inconvenience to the customer, that is:
W porting times are short;
W the porting customer does not have to pay Ior porting;
W the customer has to contact only one operator (the recipient) rather than deal with the existing
(donor) operator (which may seek to dissuade the porting customer) as well as the
recipient;
W MNP is actively promoted and welcomed.

These critical success Iactors are all customer Iocused, while much oI the eIIort Irom
operators and regulators go into network matters such as such as call routing and the setting up
oI databases. The outstanding success oI MNP in Hong Kong was in part due to its
implementation at the same time as new mobile operators were launching their services. This is
probably the best timing as new operators have most incentive to market MNP properly, to train
staII to deal with MNP, and to set up user Iriendly processes. At other times, all operators have
to alter their existing systems and processes, and have Iewer incentives to make MNP a success.




MNP iN lNoiA
MNP in India was Iirst launched in the Haryana circle, on November 25th, 2010 by
telecom company idea.
VodaIone continues to rule the MNP space across diIIerent circles just like Haryana
circle. Idea Cellular, Aircel, Airtel and Tata GSM are other players which are perIorming Iairly
well. VodaIone , Airtel and Idea Cellular have got maximum port in customers but Airtel`s port
out customers base is Iairly high and matches with biggest loser BSNL`s port out numbers which
should be a matter oI worry Ior India leading telecom company. Apart Irom BSNL it is Reliance
GSM which is witnessing major churn out. Another inIerence that can be drawn Irom this data is
that CDMA as a category is now loosing its sheen and CDMA customers are now switching to
GSM operators.






Effect of MNP after till February

LSA
Number of
Porting Requests
Andhra Pradesh 229,034 6
Assam 8,308 0
Bihar 83,030 2
Delhi 173437 5
Gujarat 364849 10
Haryana 319850 8
Himachal Pradesh 20242 1
Jammu & Kashmir 1291 0
Karnataka 318,092 8
Kerala 123,812 3
Kolkata 96,382 3
Madhya Pradesh 235,039 6
Maharashtra 262110 7
Mumbai 136067 4
North East 1,863 0
Orissa 56,989 1
Punjab 194167 5
Rajasthan 313725 8
Tamil Nadu 276,950 7
Uttar pradesh East 177368 5
Uttar pradesh West 227752 6
West Bengal 212,681 6
Total 3833038

According to the reports oI TRAI 38 lakhs customer opted Ior the Mobile Number Portability
(MNP) which was introduced in India Irom Jan 2011. By the end oI February 2011 about 38.33
lakh mobile users oI various service providers submitted their request Ior porting their mobile
number. Out oI these requests the maximum request generated Irom Gujarat where 3.65 lakhs
portin requests received, and around 3.20 lakh requests are Irom Haryana, the Iirst state where
MNP was implemented on 25
th
Nov last year.




ANALYsis or THc oATA



W Sample Size : -188

W Sample includes: -

W Doctors
W Lawyers
W Engineers
W Consultants
W Social Workers
W Proffesors
W Teachers
W ome Tutors
W eologist
W Architects
W Charted Accountants

W Sampling Plan: - stratified

W Sample Area: - Delhi (NCR)
















Connection Type: -

W Postpaid44.6
W Prepaid-55.4
4f sa2pl0 si:0 i.0. 188)

Figuie a: Connection Type


Satisfaction Level: -

Figure b: Satisfaction Level

According to our survey 75 oI the users are satisIied with their current service providers and
25 users are not satisIied with their service providers.











Satisfaction Vs Postpaid & prepaid: -



%,-0
Connection
Type
PostpaidPrepaid
Count Count
SatisIaction No 29 18
Yes55 86

Figuie c: Satisfaction vs Postpaiu & Piepaiu
According to the data in Table 1

W Postpaid users: 34.52 are not satisIied with their current service providers.
W Prepaid users: 17.30 are not satisIied with their current service providers.

Here we see that satisIaction oI the postpaid connection holders is really low. This is mainly
because oI Iaulty billing procedures and unnecessary harassment Iaced by the consumers.

Switch Vs Satisfaction: -
%,-0
SatisIaction
No Yes
Count Count
switchmnp No 13 69
Wait 20 45
Yes 14 27

According to the data in Table 2,
W There are 21.80 oI the total users (including postpaid & prepaid) want to switch their
service providers.
W 34.5 oI the total users (including postpaid & prepaid) are in the wait and watch
category.
Thus we might conclude that MNP has increased the market potential.This surely is an
opportunity Ior comparatively new entrants to the industry.II the service with respect to TariII
Network and Value added Services is good then a consumer would readily switch.

Switch Vs Postpaid & Prepaid: -

Connection type vs. Switch probability
%,-0
Connection Type
Postpaid Prepaid
Count Count
switchmnp No 40 42
wait 24 41
yes 20 21


Figuie u : Switch Piobability
According to the data in Table 3
W Percent oI users who are using postpaid connection and want to switch their service
providers are 23.80 and 28.57 are those who Iall in the 'wait and watch category.
W While there are 19.81 prepaid users who want to switch their service providers and
38.67 Ialls in the 'wait and watch category.
In Table 1, we saw that satisIaction oI postpaid customers is lower when compared to prepaid.
This table shows that switch probability oI postpaid customers is also higher than prepaid
customers. This reconIirms our inIerence that the postpaid market has more potential than
prepaid.
Also iI noticed it`s Iound that the 'wait and watch category also has considerable amount oI
consumer base. This clearly shows that even iI the market is saturated there is still opportunity
Ior players to compete. This can be attributed to the inception oI MNP.


Rankings:

Most Preferred Service: -
Fig e: Nost piefeiieu seivices

From this table it can be clearly concluded that even with the introduction oI numerous new
Ieatures, the SOHO still looks Ior a good tariII plan while selecting a service provider. Network
coverage is the second most important deciding Iactor Ior the SOHO.





Consumer Brand Preference for Switch; -


Figuie e : Consumei Bianu Piefeience

This pie shows that more consumers preIer to switch over to VodaIone aIter implementation oI
MNP. Airtel Iollows close by and then comes Aircel.
The reason why VodaIone is preIerred over other service providers is its strong network
coverage while Aircel bags its share owing to the Internet Iacilities and value added services.



Bibliography :

W WORLD WIDE WEB :
W TRAI
(http://www.trai.gov.in/DeIault.asp)
W MNP
http://www.mnp-india.com/
W Wikipedia
http://en.wikipedia.org/wiki/Localnumberportability

W MAINES :
W INDIA TODAY

W NEWSPAPER:
W Over 17 lakh users opt Ior MNP: TRAI, (THE TIMES OF INDIA), Date: 8 Feb, 2011

W ET Bureau, 38.3 L mobile users opt Ior MNP, (THE ECONOMIC TIMES),
March10.2011,