Exploring Predictive Switching Factors for Mobile Number Portability

Abstract

Executive Summary In today’s dynamic and competitive environment, customers have numerous choices to take decision on which products and services to use. In the wireless communications industry, the introduction of mobile number portability (MNP) may induce more and more consumers to switch their network operator, as MNP allows consumers to retain their original telephone number when switching from one carrier to another. This might have significant effect on price competition and market share of network providers ( Shi, Chiang, & Rhee, 2006 ). In this backdrop, the present study examines the effect of MNP on consumers’ switching intentions and also the factors affecting those switching intentions in Indian mobile phone services context. Further, the study investigates the relationship between switching intentions and actual switching (ASW) or actual staying (AST) behaviour of consumers. The main findings of the study are: After MNP implementation, consumers’ switching intentions have not changed, as they appear to be satisfied with the services of their current service provider and with regard to those who have already switched, they switched without MNP. Factors such as service quality, relational quality (i.e., satisfaction, trust, and commitment), price, reputation and image, attitude towards switching, perceived ease of use and usefulness, and switching costs (SCs) significantly affect consumers’ switching intentions. Consumers’ switching intentions predict both ASW and AST behaviour of consumers. However, switching intentions better predict AST than ASW behaviour. This implies that even if consumers have intentions to switch their current operator, they would not actually switch because of SCs involved in terms of time, money, and effort. The authors have suggested initiatives that the service providers as well as the Telecom Regulatory Authority of India (TRAI) need to undertake for proper implementation and acceptance of MNP among consumers.