The customers will have the convenience option to move from their existing operators to other favoured service providers while retaining their telephone numbers.

There will be inflow of subscribers from landline customers to mobile phone, as number portability may remove a potential barrier to wireless substitution.

The sector is driven by consumer acquisition, and this technology will change the focus to consumer retention.

It would increase competition and may reduce prices of the services being offered and the quality of services too would improve.

Mostly beneficial would be those who are traveling professionals and businessmen.

Negatives

As the customers are more likely to change their service operators too often, there will be loss of bandwidth which is a big issue.

They will also shift their operators during every promotional plan in which some service or the other is given for free for some time period.

There will also be loss of tariff transparency as identification of a number with a service provider would be difficult.

SMS which has been the catalyst for the impressive growth may create a problem in the porting of messages.

Also non-porting costs such as promotions and advertising, customer services and value-added services will be required to keep up with enhanced competition.

It would require huge investments by operators which could lead to an increase in the cost of services which can affect tele-density.

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* Contributed by -
Prabhat Jindal,
MBA - Class of 2007,
ICFAI Business School, Kolkata.