MNP in India is facilitating Incumbent to recapture their lost ground

The intention of regulators is to offer level playing field in telecom segment and also to enhance the service offering QoS indirectly. At the onset of MNP launch, the challenger and regional player clutched the opportunity to grab new subscribers by offering lucrative voice and text plan. It also triggered tariff war escalation which impacted industry dearly. The addition of new subscriber also encouraged challenger and regional player to go in big way in introducing new but not successful product with lower price points. By early 2012, it was the talk of street that incumbent players are going to suffer more subscriber loss due to aggressive price point coupled with free minutes by the competitors. The revenue growth of the regional and challengers started falling at higher speed than incumbent which led to subscriber dissatisfaction. For the last few months the average per month request crossed 2.5Mn. On detailed analysis, it is quite clear that once the dominant subscriber acquisition strategy of challengers and regional players did not work and they lost revenue generating subscribers to incumbents. At the same time, the Supreme Court ruling on challengers and regional player service continuation in cancelled service area led subscriber in no man’s land. The subscribers used MNP as a tool to keep their communication system running and not losing the contact with their dear ones. The regulatory directive which was once used by the regional and challengers the most to hurt Incumbent in turned impacted them the most. It is believed that the regional and challengers brand image got the major beating and it would take additional advertisement in dollars and years to recover the same level of trust from subscriber end. Idea Cellular result validated the same.

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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