Impact of Mobile Number Portability on Student Segment in India

Abstract

The Indian telecommunications sector is an example of successful deregulation, having witnessed fundamental structural and institutional reforms in the post-Liberalisation period. India has emerged in recent times as one of the fastest growing telecommunications markets in the world, particularly by the unprecedented growth in mobile telephony.

Mobile Number Portability (MNP) allows any subscriber to change his service provider without changing his mobile phone number. MNP was launched in India in Nov. 2010-Jan. 2011. The introduction of MNP was expected to promote more competition in the sector, and force service providers to improve service quality and reduce prices.

The present study examines the effect of MNP on the student segment. The primary objectives of the study are to study the awareness level of MNP among the students, to explore the brand-switching behaviour of mobile users by accessing MNP, and to understand the factors influencing consumers towards MNP.

The study shows that, though there is a very high level of awareness amongst students on MNP, there is not much response in terms of increasing the intension to switch service providers. In fact, the introduction of MNP has made the student segment more price- and quality-sensitive. As a result, service providers must offer better service at reduced prices in order to retain and expand its customer base.

Keywords: telecommunications, Mobile Number Portability (MNP), brand-switching behaviour

JEL Classification: M31