TRAI recommends no change in the license free for MNP
The Telecom Regulatory Authority of India (TRAI) has directed the Department for Telecom (DoT) to not to introduce any changes in the entry fee and bank guarantee of companies handling MNP (mobile number portability) service. This service helps the mobile subscribers to shift to any other mobile operator across the country without changing their existing mobile phone number. But one can only resort to MNP in the same telecom circle, users cannot avail this service across different telecom circles.
DoT has requested for the recommendations from TRAI on implementing full MNP throughout the country. TRAI has consulted the stakeholders on the same issue and has given the recommendations to DoT. The Department of Telecom further asked TRAI for its opinion on the additional entry fee, Performance Bank Guarantee (PBG) and Financial Bank Guarantee (FBG) to be changed from the existing MNP licenses for improvement of their licenses.
TRAI has stated that the people opting for the MNP service are very less and it also require additional costs to deliver nationwide MNP. Presently, there are only two companies which provide this service – Syniverse Technologies and MNP Interconnection Telecom Solution and their licenses will expire after five years.
TRAI further stated, “Presently, the revenue source for these service providers are only the per port transaction charge of Rs. 19 received from the Access Providers. They are dependent on the porting volumes alone to recover this cost and earn profits. As the porting volumes for full MNP is not evident, recovering the cost for modifications is already a concern to them.”
The regulator has also recommended that DoT should continue with existing norm of keeping FBG equivalent to licence fee of two quarter shall be continued.