Number portability is here!

Mobile Number portability will be launched early next year starting in four metros. It will allow subscribers to switch service providers while keeping the same number. Full number portability, including that for fixed lines, will be introduced gradually thereafter.

Number Portability(NP) should have a huge impact on competition in telecom space. I said "should" and not "will" because its success will depend upon how easy/smooth the process of changing a service provider is. If the process is a long and winding one, I don't expect many to line up for the hassles ( like residence verification etc).

Historically, the introduction of NP has led to as many as 50% of subscribers changing their service providers in other countries. This implies a big premium now needs to be places on customer loyalty and controlling the churn rate. This also implies there could be differentiation of customer segments with different tariffs applicable for different sets of customers ( losing a customer who uses 600 minutes in a month is 6 times more expensive than one who uses only 100 minutes).