Mobile Number Portability has Less Impact on Telcos – Fitch Ratings

A study regarding the Mobile Number Portability (MNP) in India conducted by Rating agency Fitch Ratings, indicated that MNP will have less impact on the telecom operators in India.

Fitch attributes the reason behind these findings to the dominant pre-paid nature of the market and high churn rate, the rate at which the number of individuals moves in and out of an entity over a specific period of time.

Fitch findings predict that the competition will intensify in the postpaid front, which is however only five per cent of the 600 million subscribers in India. According to Fitch, the pricing pressure which was currently more on prepaid segment, will also spread to postpaid category, though to a lesser extent.

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