Idea Cellular and Vodafone top beneficiaries of MNP during first 8 days
Idea Cellular and Vodafone Essar have emerged as major beneficiaries of Mobile Number Portability (MNP) launched in India on Jan 20, 2011. As per the data submitted by telecom companies for first 8 day, Idea has added 12,300 subscribers and Vodafone 11252 users. The surprise news came from RCom which is top losers under MNP. The company saw net loss of 9745 subscribers. Other major losers are state owned mobile operator BSNL and Tata Teleservices.
There has been around 4-5 percent customer churn out due to MNP. However experts believe that overall in long term it will not be more than one percent. In state of Haryana where MNP was launched earlier, there has been churn out of less than one percent. Also it’s widely believed that mobile companies will launch schemes in future keeping in mind MNP which will further reduce the scope of users shifting from one operator to another.
However this loss may not translate in real revenue loss for the mobile company. Companies makes around 4 times more revenue from post paid users category in which very few people are expected to change operator. Also revenue loss for a company depends on average revenue per users which analyst believes is very low for marginal customers.
The impact of MNP is being calculated as net subscriber base shifting their operator which is net of new subscribers and lost users. As expected, MNP has not been a big game changer as the rates in Indian markets are already very low. Only 2-3% of users are expected to shift their operators.