Telecommunication Mobile Number Portability Per Port Transaction Charge and Dipping Charge (Second Amendment) Regulations, 2019

PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART III, SECTION 4

TELECOM REGULATORY AUTHORITY OF INDIA NOTIFICATION

New Delhi, the 30th September 2019

TELECOMMUNICATION MOBILE NUMBER PORTABILITY PER PORT TRANSACTION CHARGE AND DIPPING CHARGE (SECOND AMENDMENT) REGULATIONS, 2019 (04 OF 2019)

File No. 15-01/2019-F&EA ---------- In exercise of the powers conferred upon it under section 36, read with sub-clauses (ii), (iii), (iv) and (v) of clause (b) of sub-section (1) of section 11, of the Telecom Regulatory Authority of India Act, 1997 (24 of 1997), the Telecom Regulatory Authority of India hereby makes the following regulations further to amend the Telecommunication Mobile Number Portability Per Port Transaction Charge and Dipping Charge Regulations, 2009 (9 of 2009), namely:-

(S. K. Gupta) Secretary

Note 1. The principal regulations were published vide No. 116-5/2009-MN dated 20th November 2009 (9 of 2009).

Note 2. The principal regulations were amended by Telecommunication Mobile Number Portability Per Port Transaction Charge and Dipping Charge (Amendment) Regulations, 2018 (03 of 2018) published vide File No. 15-01/2016-F&EA in the Gazette of India, Extraordinary, Part III, Section 4, dated 31st January, 2018

Note 3. The Explanatory Memorandum explains the objects and reasons of The Telecommunication Mobile Number Portability Per Port Transaction Charge and Dipping Charge (Second Amendment) Regulations, 2019 (04 of 2019).

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EXPLANATORY MEMORANDUM

1. A subscriber can retain his existing mobile telephone number when he wishes to switch from one service provider to another or from one technology to another of the same service provider using Mobile Number Portability service within the same Licensed Service Area (LSA) as well as Pan India in any LSA. The Mobile Number Portability is operational in India since 2009, when MNP service licences were issued to two Mobile Number Portability Service Providers (MNPSPs) by DoT. DoT mandated MNP service licensees to follow the regulations/orders made or directions issued by Telecom Regulatory Authority of India (TRAI/Authority) under TRAI Act, 1997 or any instructions issued by the DoT (licensor) from time to time through amendments in licenses.

2. For the purpose of laying down the basic business process framework for implementation of MNP services in India, the Authority issued Telecommunication Mobile Number Portability Regulations, 2009 (8 of 2009) dated 23rd September, 2009 (MNP Regulations). These regulations have been amended from time to time, latest being in 2018.

3. By notifying The Telecommunication Mobile Number Portability Per Port Transaction Charge and Dipping Charge Regulations, 2009 dated 20th November, 2009 (MNP Charges Regulations), the Authority determined the Per Port Transaction Charge (PPTC) as Rs. 19/- to be paid by the Recipient Operator (RO) to the concerned MNPSP. In absence of actual historical data, this exercise was done based on estimated financial data and other information submitted by the two MNPSPs. The per port transaction charge was computed by taking the estimated total cost to the MNPSP and the estimated number of porting subscribers, over a period of 5 years. The Authority also considered the lower of the cost of the two MNPSPs for computing PPTC.

4. Further, through notification of the Telecommunication Tariff (Forty-Ninth Amendment) Order, 2009, the Authority prescribed the Per Port Transaction charge of Rs. 19/- as ceiling for the tariff that could be charged from subscriber by the recipient operator. The ‘Dipping charge’ was kept under forbearance.

5. Regulation 6(2) of the MNP Charges Regulations provides that “the Authority may review and modify the Per Port Transaction Charge and Dipping Charge at the end of one year from the date of these regulations coming into force”.

6. In 2018, 'Per Port Transaction Charge' was reviewed based on the actual financial and non-financial data of both the MNPSPs as available for the financial year 2016-17. Accordingly, the Authority issued the Telecommunications Mobile Number Portability Per Port Transaction Charge and Dipping Charge (Amendment) Regulations, 2018 on 31st January, 2018 whereby per port transaction charge was reduced from Rs. 19/- to Rs. 4/- for each successful porting. However, this amendment regulation was quashed by Hon’ble High Court of Delhi vide its Judgement dated 8th March, 2019.

7. Subsequently, the Authority had undertaken a detailed public consultation to review the MNP process itself. The Authority issued Telecommunication Mobile Number Portability (Seventh Amendment) Regulations, 2018 on 13th December, 2018 (7th Amendment) introducing certain changes in the MNP process to ensure better services to subscribers. These primarily involve shifting responsibility of generation of Unique Porting Code (UPC) from Donor Operator (DO) to MNPSP after making real time query with database of DO and sending of SMSs to the subscriber by the MNPSP for letting the subscriber know of her/his status in the various stages of the process. The regulation also delineated the various ancillary services¹ that are already being provided by the MNPSP, namely, Number return charge, Database download charge, Port cancellation charge, Subscriber reconnection charge and Non-payment disconnect charge.

8. In view of the above, the Authority initiated a public consultation process for review of the existing MNP Charges Regulations by issuing a consultation paper on 22nd February, 2019 (subsequently updated on 1st April, 2019 in view of the judgement of the Hon’ble High Court of Delhi, as mentioned above). The last date for receiving comments and counter comments from stakeholders originally was 15th March, 2019 and 22nd March, 2019, respectively. However, considering the requests of stakeholders, the last date for receiving comments and counter comments was extended up to 12th April, 2019 and 19th April, 2019 respectively. An Open House Discussion in this regard was also held on 27th May, 2019. MNPSPs and TSPs have also submitted additional comments after the open house discussion.

9. Vide letter dated 7th May, 2019 and subsequent reminders, the two MNPSPs were asked to provide details of capital expenditure (CAPEX) and operating expenditure (OPEX) along with copies of audited annual accounts for the financial year 2018-19. The audited financial results for the FY 2018-19 were submitted by M/s Syniverse on 22nd July, 2019. M/s MNP Interconnection Telecom Solutions India Pvt. Ltd. (MITS) submitted the audited financial results for the FY 2018-19 for MNP business on 28th June, 2019.

10. The major telecom service providers (TSPs) were also called upon to provide cost inputs for hardware and software requirement for the additional work involved due to changes introduced by 7th Amendment and probable expenditure vide letter dated 25th June, 2019, the responses to which were also considered by the Authority.

11. The two MNPSPs also submitted their “estimates” for the additional work required due to the 7th Amendment. The two MNPSPs were called upon to make a presentation on the architectural framework and additional hardware/software required to implement the changes in the MNP process along with the justification for the additional expenditure, which was made by both the MNPSPs on 24th July, 2019. During the presentation, it was highlighted by both the MNPSPs that the additional cost estimates given for implementation of 7th Amendment includes costs to be incurred for supporting ongoing/existing operations as well as changes envisaged under 7th Amendment. Accordingly, both were asked to segregate the two cost components. One of the MNPSPs submitted revised cost estimates after splitting cost between current operations and 7th Amendment requirements on 28th July, 2019. The other MNPSP vide letter dated 2nd August, 2019 informed that such segregation is not possible.

12. Based on the comments and counter comments received during the consultation process, the deliberations of open house discussion and comments received afterwards from MNPSPs and other stakeholders, the Authority issued draft “Telecommunication Mobile Number Portability Per Port Transaction Charge and Dipping Charge (Amendment) Regulations, 2019” on 16th August, 2019 (Draft Regulations). The stakeholders were requested to submit their comments on the Draft Regulations by 23rd August, 2019. However, considering the requests of stakeholders (MNPSPs), the last date for receiving comments was extended up to 28th August, 2019.

13. In paras 14 to 46, basic rationale for arriving at the Draft Regulations and the questions raised in the consultation paper have been discussed. Thereafter, in para 47, inputs received pursuant to issue of Draft Regulations (i.e. after 16th August, 2019) have been discussed.