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RCOM Enjoys Stronger Market Position in long-term MNP Effects
Mumbai, March 19, 2011: RCOM in just the past two weeks has acquired over 10,000 (and counting) postpaid
corporate customers from other large GSM operators. Citing "congestion free network"
and "better coverage" as the core needs of a corporate these customers used MNP to
switch to RCOM.
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Another factor that has come up increasingly in such port-in of Corporate is the fact that
there are only the top 3 operators who can offer 3G services in metros & across the key
circles mapped to these corporate. 3G holds much potential for a corporate customer
for the enterprise applications that are now possible. RCOM had offered a trial of 3G
services for all new customers in their 3G circles. There are a lot of other VAS offerings
that Reliance has come up with to attract new customers including those using MNP.
As a conscious strategy, Reliance Communications has been concentrating on attracting
post-paid customers due to the fact that the average revenue per user in this category is
over 10 times the normal pre-paid subscribers. Of the total movement on postpaid for
RCOM, 80 per cent are port in (those who want to join RCom).
Reliance Communication (RCom) mobile subscriber base grew by 2.54 percent making
total users base to 128.87 mn. Overall the mobile subscriber base grew by 2.52 percent.
The Porting Process
The procedure of switching one's network operator is turning out to be a cumbersome
exercise for many mobile users. Customers complain they are not getting the porting code
from their existing operator or porting requests are being turned down on unconvincing
grounds by incumbent operators. Operators are using their best tactics and coming out
with baseless reasons to prevent porting. Many a time the reason provided is different on
each trail of porting out, leaving the consumer more confused than before.
Most Common Hurdles
Mobile users find the process is no longer smooth, though the valid reasons for rejecting
porting request can be – incorrect Unique Porting Code (UPC), Non-completion of 90
days, existing contractual Obligations (bundled handset etc.) and Outstanding Dues. But
even getting a UPC is a hassle; porting requests are being turned down on conflicting
reasons by incumbent operators.
The existing procedure facilitates an operator to create hurdles to an existing user. There
exists scope for the Network operators to create obstacles to prevent port outs. Another
problem is that once a porting request, valid for 15 days, is rejected due to an error, there
is no room for correction and the entire purpose has to be re-initiated from scratch.
Large GSM operators are apparently going all out to prevent, postpaid high value
customer base & try and lock the subscriber, once he made a porting request. Operator
was trying to offer plans matching with competitors in lieu of a commitment to stay
with operator for a certain period or offering cheaper data plans after porting requests.
Operators, who charge higher rentals for data plans are trying to retain subscribers by
openly negotiating with customers.
The real impact would be felt only when the mechanism is more streamlined and the stiff
penalties proposed by TRAI on operators for each wrongly rejected porting request get
enforced. Mobile service providers, TRAI and DOT will have to seriously ponder on the
issue to ensure that the benefit of MNP ultimately reaches to the end consumer otherwise
it would merely remain a much hyped jargon.
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