MTNL and BSNL losing out to MNP

By Pamela Weaver

India’s state-run telecom company, Mahanagar Telephone Nigam Ltd. (MTNL) is having something of a swings and roundabouts experience following the introduction of mobile number portability (MNP) on a countrywide basis in January 2011. According to junior Telecoms Minister Sachin Pilot, 10,355 users have jumped ship to other providers, while 4,486 new subscribers have joined.

MTNL only services Delhi and Mumbai; state-run Bharat Sanchar Nigam (BSNL), which looks after the rest of the country has reported a post-MNP loss of 223,824 users, gaining 92,243 from the competition. Reporting the findings in India’s parliament, Pilot stated that the main reasons for customers switching service were network/coverage and tariff issues. Both telcos have attempted to attract new users through waiving fees, introducing new tariffs and incentivising distributors but it seems that, to date, new customers aren’t biting.