Customer Preference For Mobile Number Portability PDF

International Journal of Management and Social Sciences Research (IJMSSR)
Volume 1, No. 3, December 2012
ISSN: 2319-4421
Customer Preference for Mobile Number Portability

Partiksinh Sureshsinh Vaghela , Assistant Professor, Shree J.D.G. commerce and Shree S.A.S. College of
Management, Surat, India
ABSTRACT
The total number of subscribers opting for mobile number
portability (MNP) has risen to 59.31 million, with
Karnataka receiving the maximum number of 7.2 million
requests till the end of July, according to official data.
MNP allows users to switch operators while retaining
their mobile numbers. "By the end of July 2012, about
59.31 million subscribers have submitted their requests to
different service providers for porting their mobile
number," the Telecom Regulatory Authority of India (Trai)
said in a statement. Karnataka was followed by Andhra
Pradesh and Rajasthan where 5.7 million and 5.6 million
subscribers opted for the service. So it is necessary to
understand characteristics and reasons of customer for
using mobile number portability. These papers examine
the consumer awareness and preference about mobile
number portability and try to find out factors that motivate
use of MNP. Result suggest respondents are not only
aware about the MNP but they also know the procedure of
using MNP and network coverage, customer care, quality
of service are the main factors to switch over another
service provider.
Keywords: Mobile number portability, customer loyalty,
Mobile service provider customer awareness, preference,
factor for MNP.
68.81 billion) by 2012 at a growth rate of over 26 per cent,

and generate employment opportunities for about 10
million people during the same period.
Trends in the Industry

Rise in Cloud Computing: As improved broadband
capacity helps to overcome network bottlenecks, cloudbased offerings from telecom operators and ICT providers
will continue to grow. One Nation, One License Policy:
With this, there will be no difference between Local and
STD Calls. This also means that there will be no roaming
charges while in India. New telecom policy is likely to be
declared in June 2012. Digitization of Cable TV: This will
help the government to pursue India's broadband goals and
thereby help to boost economic growth. Smart devices and
Digital content: As 3G will be stabilized by 2012 which
will fuel 4G, smart devices like tablet, smart phone, smart
TV will become a media for video and digital content
consumption. Bharti recently set the trend by launching
4G services in India.
The growth of Indian telecommunication sector is highly
driven by supportive government policies, emerging new
technologies and changing consumer behavior. The fact
that the industry has made stupendous growth in recent
times is reflected in the statistics below:
INTRODUCTION
India is today one of the largest telecom markets in the
world, with an addition of more than 18 million
subscribers every month. Telecom sector has continued to
emerge as the prime engine of economic growth,
contributing to nearly 2% of the Indian GDP. Indian
telecommunication sector has undergone a major
transformation through significant policy reforms,
particularly under NTP 1999. Driven by various policy
initiatives, the Indian telecom sector has achieved a
phenomenal growth during the last few years and is poised
to take a big leap in the future.
The history of telephone services in India found its
beginning when a 50-line manual telephone exchange was
commissioned in Kolkata in the year 1882 in less than five
years after Alexander Graham Bell invented the telephone.
Today India has the world's second-largest mobile phone
users with over 903 million as of January 2012. In recent
years, the Telecom sector has been delivering strong
returns on investments and steady subscriber additions.
This growth has been built on wireless revolution. The
industry is expected to reach a size of 344,921 Crore (US$
Key Statistics
Telecom Regulatory Authority of India (TRAI) has
revealed that the country's mobile subscriber base has
increased from 893.84 million in December 2011 to
903.73 million in January 2012. Telecom operators added
9.88 million mobile subscribers in January 2012. The
overall tele-density reached 77.57 per cent. Broadband
subscriber base increased from 13.30 million at the end of
December 2011 to 13.42 million at the end of January
2012.
Industry experts believe that Smartphone segment would
be the fastest-emerging division that would even outpace
the overall handset market. The segment is anticipated to
account for 29 per cent of the total handset volume with
97.2 million units by 2017, registering a CAGR of around
40 per cent. Third largest in the world and the second
largest among the emerging economies of Asia, the Indian
Telecommunication network has emerged as a leader time
and again. Owing to this growth, a large number of
multinational telecommunication leaders are pouring into
the nation and expressing their interest to invest in the
telecom industry in India.
i-Xplore International Research Journal Consortium
www.irjcjournals.org
71

REVIEW OF LITERATURE
Stefan BOhler, Ralf Dewenter & Justus Haucap (2005)
examines the causes and effects of mobile number
portability WMNP) and provides a survey of its
implementation in Europe and Wefirst examine the
competitive effects and the costs of introducing MNP.
Stefan Buehler (2007) examines the consequences of
introducing mobile number portability (MNP). As MNP
allows consumers to keep their telephone number when
switching providers, it reduces consumers switching
costs. However, MNP may also cause consumer ignorance
if telephone numbers no longer identify networks.
Surabhi Jain (2010) with current scenario, if a customer
is dissatisfied on the service by mobile operator either he
has to reluctantly accept the service or switch to another
service provider that he wishes. This paper highlights the
importance of mobile number portability (MNP) which
enables mobile telephone users to retain their mobile
telephone numbers when changing from one mobile
network operator to another. And requirements and
compatibility for switching the network as mobile number
is used for all business and family correspondence. This
paper provides an in-depth description of how it affects the
switching cost for consumer, it also include various flavors
of call routing implementation, mobile messages (SMS,
MMS) to a number once it has been ported. Despite of so
many networks why user wants to switch to other network
will be discussed in this paper. The research paper
addressed various arguments related to the pros and cons
of mobile number portability such as How Could MNP
Disrupt Mobile Service Providers and how can Mobile
Service Providers Benefit from MNP? A more pronounced
effect of MNP is likely to be an increased focus on
improving the customer experience. The research papers
also give an insight into the disruptive effect of MNP on
Indian Telecom Industry. Dong H. Shin (2007) investigate
the effect of mobile
number portability
(MNP) on mobile subscribers in Korea by focusing on
subscribers' perception and behavior related to MNP.
Statistical analyses in this study reveal that subscribers
perceive the switching barrier still as high, discouraging
subscribers from switching carriers. While MNP lowered
switching costs considerably, a significant level of
switching costs still remains despite MNP. Carriers
develop new subscriber lock-in strategies that make them
stay with current carriers. In addition, there are hidden
costs other than MNP that should burden subscribers with
number portaging. Dr.V. Kumaravel (2009) Mobile
number portability permits to a mobile subscriber to
switch operators without changing his/her telephone
number. This research paper describes that Impact of
Mobile Number Portability on Mobile Users Switch over
Behavior-Indian Mobile Market. Mobile number
portability is now a crucial issue for mobile service
providers. The most challenging job for the present day is
that retain existing mobile customers. The mobile
operators ability to retain its customer has a direct impact
ISSN: 2319-4421
on its profitability and effectiveness. Losing a customer

will affect the mobile operators in terms of cost. Sanjeet
Singh (2010) the paper evaluates the customer perception
and expectation from MNP. Mobile Number Portability
means the facility, which allows a subscriber to retain his
mobile telephone number when he moves from one
cellular service Provider to another irrespective of the
mobile technology or from one cellular mobile technology
to another of the same Access Provider. The mobile
portability is the process to change the mobile company
without changing your mobile number. The study mainly
concentrates in north India and the companies, which are
available and popular in the north India. Tlin Durukan
(2009) Mobile number portability is defined as a system
that allows consumers to change operator without a
necessity of changing the mobile phone number. the aim
of this study, the effects of the mobile number portability
application are examined theoretically at first. Then, the
relationships among mobile number portability
application satisfaction, perceived public illumination
activities and knowledge (information level) about the
application with the intention to change the operator
(switching intention) are scrutinized and the results are
interpreted. Especially nowadays the global crisis is tried
to overcome, taking into consideration of results, which is
obtained from such scientific studies, is crucial to reach
the aimed results of these kinds of consumer centric
regulations. A K Talukder (2010) Growth in
telecommunications population directly impacts the
economy. Advanced economies have discovered that
mobile number portability (MNP) helps the economy.
Keeping this in mind, this paper proposes a technology
solution for SMS data portability in MNP scenario. It
provides experimental results to support such a claim.
Indian Institute of Science. Dr. V. Mallikarjuna, Dr. G.
Krishna Mohan, Dr. D. Pradeep Kumar, The present
study employs discriminate function analysis and
independent-samples t-test to identify the key
differentiating factors that discriminate brand loyal
customers from switchers among the mobile users in AP
telecom circle of India. Satisfaction of customer with
network access, call tariffs, customer care, network
coverage and use of mobile for voice calls or MMS are
found have strong discriminating power between the loyal
customers and switchers. Mobile operators in India have to
invest in network and technology to improve the coverage,
connectivity and speed. Improvement in the quality of
basic service the voice calls will prove to be an excellent
strategy for enhancing customer loyalty.
RESEARCH METHODOLOGY
Research Objective:
To identify customer awareness about mobile
number portability.
To examine customer preference towards mobile
number portability.
72

To identify factors that motivate customer to
switch over service provider.
Table No: 2 table showing currently used mobile

service provider.
CURRENTLY
SERVICE
RESPONDENTS
%
PROVIDER
VODAFONE
44
42.30%
AIRTEL
13
12.50%
RELIANCE
12
11.50%
IDEA
12
11.50%
AIRCEL
6
5.80%
OTHER
17
16.30%
TOTAL
104
100%
Research Design:
At initial stage, the research design is exploratory because
the research statement was developed on the basis of the
review of literature that was available on internet, in books
and journals. After framing the research statement, the
research design becomes descriptive as it now describe.
Sampling Design:
Here non-probability convenience sampling has been used.
100 customers were selected. The sampling unit comprises
the respondents who are living in Surat city that covered
different areas under study like Piplod, city light, Parle
point, ghoddod road, athvalines, varachha, ring road.
Duration of data collection was 15th December 2011 to
31st February 2012. Questionnaire was used for the
purpose of the data collection as the research instrument.
This Questionnaire consisted of closed ended questions
including rating scales.
Data Collection Method:
Primary data: Primary data was collected by direct
from respondents with help of questionnaire.
Secondary data: Secondary data was collected from
books, internet, newspaper & magazine etc.
Research Tools Applied:
For analysis of data percentage method, frequencies
tables, cross tab, graphs, Charts have been used with
help of Microsoft excel.
FINDINGS
Interpretation:From the above table it can be interpreted that 44

respondents are currently using Vodafone, 13 using airtel,
12 reliance, 12 idea, 6 aircel, 17 are using other service
provider.
Table No: 3 table showing mobile connections prepaid or post-paid.
MOBILE
RESPONDENTS
%
CONNECTIONS
PRE PAID
79
82.30%
POST PAID
17
17.70%
TOTAL
96
100%
Interpretation:Above table indicate that 79 respondents have pre paid
and 17 respondents are post paid service.
Table No: 1 table showing number of mobile

service provider connection customer have.
No.
Of
Mobile
Connections
None
One
Two
> Two
TO T AL
RESPONDENTS
6
58
16
16
96
ISSN: 2319-4421
Table No: 4 table showing time been using the

service of service provider by respondents
%
TIME DURATION
<3 MONTHS
3TO10 MONTHS
10> MONTHS
TOTAL
6 .2 5 %
6 0 .4 1 %
1 6 .6 7 %
1 6 .6 7 %
100%
Interpretation:From the above table 58 respondents are using single

service provider and 16 respondents use dual services
provider and 16 respondents use more than two service
provider.
RESPONDENTS
14
37
45
96
%
14.6
38.5
46.9
100%
Interpretation:From the table it can be interpreted that 14

respondents are use services less than 3 months, 37
respondents are use services 3 to10 months, 45
respondents are use services more than 10 months.
73

Table No: 5 table showing monthly expenses towards

your subscriptions.
MONTHLY
RESPONDENTS
%
EXPENSES
UP TO100
19
19.80%
100 TO 300
50
52.10%
300 TO 600
6
18.80%
600 TO 900
18
6.30%
> 900
3
3.10%
TOTAL
96
100%
74
Interpretation:Above table indicate that 50 respondents are know how to

shift from one services provider to another services
provider , 37 respondents are not know how to shift from
one services provider to another services provider and 09
respondents are somewhat know how to shift from one
services provider to another services provider.
Table No: 8 table showing awareness about

number portability
AWARE ABOUT
NUMBER
RESPONDENTS
PORTABILITY
YES
69
NO
27
TOTAL
96
Interpretation:From the above chart it is found that 19 respondents

monthly expenses is up to 100 Rs., 50 respondents
monthly expenses is up to 100 to 300 Rs., 6 respondent
up to 300 to 600 Rs.,18 respondents u[ to 600 to 900 Rs., 3
respondents more than 900 Rs.
Table No: 6 table showing Satisfaction level towards
current subscriber.
ISSN: 2319-4421
%
71.90%
28.10%
100%
Interpretation:From the above table it is found that 69 respondents were

aware about number portability and 27 were unaware.
Table No: 9 table showing customer like to change
their service provider.

respondents are extremely satisfy, 48 respondents are
good satisfy, 27 respondents are average satisfy, 4
respondents are bad satisfy.
LIKE TO CHANGE
YES
NO
TOTAL
RESPONDENTS
38
58
96
&
39.60%
60.40%
100%
Table No: 7 table showing customer awareness about

how to shift from one service provider to another
respondents like to change current service provider and 58

people not want to change current service provider.
Table No: 10 table showing in future customer would

like to change their service provider.

LIKE TO SWITCH
OVER TO ANOTHER
YES
RESPONDENTS
19
32.80%
NO
30
51.70%
MAY BE
15.50%
TOTAL
58
100%
ISSN: 2319-4421
www.businessreviewindia.in/technology/software
/telecom-industry--indias-success-story
www.medianama.com/2012/06/223-45-89mmobile number-portability-requests-in-india-inapril-2012/
gadgets.ndtv.com/telecom/news/over-50-millionopted-for-mobile-number-portability-till-may239941
Interpretation:According to this chart 45 respondents want to change

current service provider. out of 45 respondents, 6
respondents want to change due to value added service
problem, 10 respondents want to change due to quality
problem,11 respondents want to change due to network
problem , 8 respondents want to change due to extra bill
and 10 respondents want to change due to respondents
care service problem.
CONCLUSION
Thus after all the above important discussion it can be
conclusive that it is important to know customers opinion
towards mobile number portability. From the survey found
that some of respondents are average satisfied and overall
the respondents are good satisfied with current service
provider but there is huge competition in this industry. In
this competition environment customers well aware about
number portability and it procedure. Which shows
popularly of number portability information in minds of
customers. So, service provider should try to convert this
threat in to opportunity by providing excellent service to
their customers.
BIBLIOGRAPHY
Marketing research, G.C.Berry, 4th edition, in year
2000, published by Mc Graw Hill education private
limited.
Marketing Management by Philip Kotler, 13th
Edition, in year 2009, Published by Pearson
Education, Inc.
www.vodafone.com
www.airtel.com
www.reliance.com
www.idea.com
www.aircel.com
www.bsnl.com
timesofindia.indiatimes.com/tech/technews/teleco
m//16336477.cms
75

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International Journal of Management and Social Sciences Research (IJMSSR)

Volume 1, No. 3, December 2012