WILL the recently launched mobile number portability (MNP) service have an effect on the local telecommunications industry? Well, it’s too early to say, but one thing is for sure: the service will trigger a more competitive telecommunications market.

Already, we’ve seen telecommunications companies putting up ads to woo mobile phone users to switch to their network with lots of side goodies. This “fishing” trend among the service provider is expected to continue at least for the next six to nine months.

For those who are still new to the MNP concept, it is a service that enables handphone users to switch their service provider without having to change their phone number.

This means a Celcom subscriber can now change to Maxis, DiGi or U-Mobile and still keep his old number at RM25 for every change.

With the country’s current mobile penetration rate of above 90 per cent, there is little room for telcos to increase subscriber market share.

According to Frost & Sullivan’s senior research analyst, telecom and information and communications technology practice Asia-Pacific Jeff Teh, MNP will force service providers to compete on better tariffs, network quality, customer experience, value-added services and promotions.

For telcos, MNP can be translated into either an opportunity or potential subscriber losses. On the positive side, if they are able to provide that extra mile in terms of service offerings, they would likely to benefit. But if nothing much is done to up their existing service, subscribers may likely “jump ship”.

For subscribers, they have much to gain with MNP. If losing their existing number is what’s holding them back from changing their service provider, now they can do so.

Already, 12,000 handphone users have switched their service provider during the six-week trial period conducted by the Malaysian Communications and Multimedia Commission alongside the service providers. This shows that people will change their service provider if they are not satisfied with the service provided or if there are better offerings elsewhere.

Teh said service providers could attract customers by offering value-added services such as free calls after certain minutes, or bundle their package with more attractive mobile phones.

It is hoped that the introduction of the MNP service will enhance the telecommunications industry and boost services, which have, in many instances, proved wanting.