Tuesday, April 9, 2013

Mobile Number Portability (MNP) in Nigeria...the Game Changer




In a matter of months, Nigeria will join the group of countries that have implemented the Mobile Number Portability (MNP). Nigeria will become the fourth African country after South Africa (2006) Egypt (2008) and Ghana (2011).
One would be tempted to ask  "What really is MNP and how does it benefit the Nigerian subscriber?"

Mobile number portability (MNP) enables mobile telephone users to retain their mobile telephone numbers when changing from one mobile network operator to another. In Nigerian terms, it implies that MNP allows me to use my MTN number on Etisalat network (for example), enjoying all the benefits open to original Etisalat subscribers.
So what's the big deal you're still asking? Imagine you had GSM number that all your friends, family and business associates use to contact you, but you weren't satisfied with the services of the telecom operator. You would be forced to hold onto this line just to ensure you're easily accessible. MNP allows you to migrate your line to any other network f your choice while retaining your number.

Quarterly Market Share for 2012 (Coutesy: NCC)


The table above gives an insight into the market share of the telecoms industry though recent reports confirm that Airtel and Etisalat have significantly increased their market shares at the expense of Glo and MTN. Currently about one(1) in every four(4) subscribers in Nigeria is an MTN subscriber and a lot of these subscribers are inching for better voice and data services.
 Assuming the ideal MNP operations, we will experience an interesting trend in subscriber migration to other networks with better services. Etisalat and Airtel will be the biggest beneficiaries in my opinion as the recent trends show them increasing their market share. I believe MNP will further consolidate this trend. Glo on the other hand have a very good chance to reclaim their market share as well if they are more innovative in their products and services while MTN will also try to keep as much of its subscribers as well to maintain their advantage.
 However, we will also experience a drop in the total number of mobile subscribers, the reason being that asubcriber won't have the need to own more than one or two active phone lines, that's provided initial MNP operations are successful.
 Therefore, it appears MNP is not just a threat to the market leaders, in this case, MTN but to all operators. Well not exactly as there are some factors that might work for or against the operators.
  • Subscriber awareness and enlightenment of MNP Subscribers need to have a good understanding of MNP before they can subscribe to the concept.
  • Subscriber Behaviour its easier and faster to buy another network's SIM card than to port to that network so subscribers might shy away from MNP.
  • Faster Porting time The time to port is currently 2days which is far longer than it takes for a Sim Swap. This will deter intending subscribers if the porting time is not reduced considerably.
  • Interoperability between Operators As expected, the porting of subscriber on another network will not be devoid of snags and how this is managed will key in boosting the acceptance of MNP among subscribers.
This is an audacious yet laudable move by NCC and the early success or failure of this rests on their ability to effectively manage and work with the operators and third party companies such as Interconnect, Telecordia (Ericsson).

Like it or not, MNP is here to stay and will be a major factor in the face of the telecom market. Though, it won't be an immediate embrace by subscribers as modalities are still being worked out and rigorous testing ongoing at the operator side, it has come to stay and would on the long run serve as a deterrent to operators from offering poor services to their subscribers.

The bottom line is the subscriber should be KING.

2 comments:

  1. Thanks for Comment. You are very correct, what you stated above is the standard practice and is called recipient led porting, however reverse is the case in India and UK where the intending subscriber informs his network of the decision to move to another network. This is referred to as Donor led porting.

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