“These (mobile portability) charges are based on a cost-reimbursement principle and computed accordingly to arrive at a Rs 5.74 pricing to be effective from September 30,” the Telecom Regulatory Authority of India (Trai) chairman RS Sharma was quoted by ET.
According to the report, the new rate has been fixed after changes made in the system, and it is based on cost reimbursement. This payment goes straight to MNP agencies such as Syniverse Technologies and MNP Interconnection Telecom Solutions.
It is worth mentioning that telecom operators (Reliance Jio, Vodafone Idea, and Airtel) can easily save Rs. 75 crore annually, once the new fees is implemented. For the unaware, mobile number portability allows you to change your telecom operator without changing your mobile number.
“We have changed the architecture of MNP. Initially, it was a Unique Porting Code (UPC) being generated by donor operators that have a legitimate interest to retain their subscribers, and have more rejections,” ET further quoted TRAI chairman.
However, this is not the first time that the regulator has made changes in the MNP fee. This year in January, the prices were reduced to Rs. 4 from Rs. 19. But, this regulation was overruled by Delhi High Court, after the petition was filed by Syniverse Technologies.
There is no doubt that this will not benefit subscribers as much. But these moves will help the telecom sector as operators are already sitting on a huge debt.