Wednesday, December 1, 2010

Winging with your own number

Many million subscribers unhappy with their service providers will be grateful for the mobile number portability scheme.


Nothing emboldens a seller more than the knowledge that the customer cannot walk away from the deal without losing a significant amount of money; nothing chastens the seller more than a law that ensures the customer can do so. The new dispensation on mobile number portability that came into effect this week will now enable disgruntled mobile users to switch service providers and yet keep their 10-digit telephone number. The cost, a mere Rs 19, is unlikely to be a deterrent to switching, and it is therefore not surprising that all mobile operators are readying a sheaf of services and friendlier tariffs to hold on to their subscribers, or better still, to persuade those with the competition to cross the floor. The lowering of tariffs is one of the intended consequences of this rule and the regulator, the Telecom Regulatory Authority of India must be commended for persevering with this customer-friendly initiative. That is what over 50 countries already offer to their telephone subscribers and there is no good reason why India should not give its consumers the choice.

Of course, there were several objections especially from service providers on the proposal and its modalities, which is why the idea first mooted in 2005 has taken so many years to take effect. Some were rooted in the fear that enhanced competition creates, even though for the record the objections seemed more rational. A considerable investment had to be made in technology for the sake of the few subscribers who do not want to inform their contacts about their changed number, said one telephone company; the cost would have to be borne by all others. That point has to be conceded. The availability of choice comes at a price for a consumer. But at the end of the day the consumer is more likely to be better off dealing with competing sellers rather than a monopoly because the bargaining chips are differently stacked. It is also true that the availability of choice in itself will not deliver the full advantage to a consumer if there are hurdles to his switching from one seller to another.

The mobile number portability scheme is an attempt to remove one such barrier, which many million subscribers unhappy with their service providers will be grateful for. To the extent the scheme does permit switches only within the same telecom circle and not let subscribers carry the number, say, from Chennai to Mumbai, it limits their freedom. And further, once they port to another operator, and find things no better, they have to wait three months before they get another chance. Forget these caveats, subscribers will appreciate the fact that they can keep their identity even as they get their wings.

http://twitter.com/umeshshanmugam


No comments: