Mobile Number Portability (MNP) service licence guidelines released

Mobile Number Portability (MNP) allows subscribers to retain their existing telephone number when they switch from one service provider to another or from one technology to another of the same service provider. The Guidelines for grant of MOBILE NUMBER PORTABILITY (MNP) SERVICE LICENCE in the country was announced today by Thiru A. Raja, Union Minister of Communications and Information Technology at a press conference in New Delhi. Shri Jyotiraditya M. Scindia, Minister of State for Communication and Information Technology was also present. The salient features of these guidelines are as below: 1. MNP zones: For the purpose of grant of Licenses for MNP operation in India, the whole country is divided into MNP zones (Zone 1 & zone 2) consisting of 11 Licensed Service Areas (LSAs) each with 2 Metro service areas in each zone. • 2. There shall be only one licensee for MNP services in each MNP zone. 3. No single company/ legal person / the MNP License applicant or MNP Licensee Company either directly or indirectly will have any equity, in any of the telecom service provider licensee company (Basic service, UAS, CMTS, NLD and/or ILD licensees) and vice-versa. • 4. Initially MNP is to be implemented in all Metro and category ‘A’ service areas within 6 month of award of the License for MNP services. 5. Direct Solution i.e. All Call Query method be implemented for mobile number portability in India. 6. Total time to port should not exceed two working days initially and shall be upgradable to much faster levels. Customer shall approach the recipient operator for porting his/her number. 7. Paid up capital: The applicant Company shall have a minimum paid up capital of an amount Rs 10 Crores on the date of the application. 8. Networth: The applicant Company and its equity holders shall have a combined net-worth of atleast Rs. 100 Crores (in proportion to their direct equity). 9. Foreign equity: FDI shall be subject to extant guidelines and regulations. However, equity of the foreign partner in the company should not be less than 26%. 10. Experience: The Applicant / bidder should have implemented and operating successfully NP solution for a mobile subscriber base of not less than 25 million in one or more countries for at least 2 years. Either the applicant Company or its share equity holders having direct equity of 26 % or more in the Company shall have required experience. 11. There shall be a lock in period of 3 years for the equity share holders having equity share capital of 26% or more in the MNP Licensee Company. 12. Entry Fee: One time, non-refundable, Entry Fee of Rs. 1 (one) Crore is required to be paid for grant of MNP services license. 13. License Fees: The Licensee shall also pay License fee annually @ 1 (one) % of Adjusted Gross Revenue (AGR) of the licensee Company. There shall be a moratorium of license fee payment for first two years from effective date of the license. 14. Method of Selection: The pre-qualified applicant(s)/ bidder(s) shall be subjected to a ‘Techno-Economic Evaluation’ for final selection. 15. The bid documents containing detailed terms and conditions shall be issued separately.

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