Earlier if Indian mobile phone users had problems with the service operator and wanted to change to another operator, they had to change the mobile number as well. Changing the mobile number is a problem when you have a lot of contacts and there are other problems associated with it as well. Solution
MNP, Mobile Number Portability, means mobile phone subscribers, who are not satisfied with the service of a telephone company, can shift to another company at a cost as little as Rs.19 while retaining the same number. Most telephone users are reluctant to change their numbers for fear that their friends, associates and clientele would be put to inconvenience. Besides, some people also get attached to their telephone numbers. At present, the portability is only within the same circle. For instance, an Airtel subscriber in Delhi can join the network of, say, Idea only in Delhi. Currently, if somebody shifts from Mumbai to Chennai, he cannot make use of MNP because they are in different circles. Business Impacts
1. Low Switching Cost: Users do not change the operators due to the problem that they will have to change the number as well. With Mobile Number Portability in India, this will no longer be the reason for pulling back the new operators in a telecom circle.
2. Savings in expenses for reserving a number-series: Operators pay some price to reserve the number series in a telecom circle so that they can use the number series to create new mobile phone numbers. Due to the Mobile Number Portability, operators will no longer have to pay the price to reserve a specific number series in a particular zone. This would mean cost savings.
3. Low Entry Barriers: If an operator is entering a new telecom zone, he will not have to struggle for a (relatively) long time for getting enough number of users to keep itself in business. Usually, new telecom operators offer better price to value ratio for the customers....