Vi MNP row explained: Why a 2021 regulatory battle is back in focus

Vodafone Idea’s (Vi) mobile number portability (MNP) practices are back under regulatory scrutiny, nearly five years after the telecom operator fought a similar battle with the Telecom Regulatory Authority of India (Trai) over customers’ ability to switch networks.

Bharti Airtel and Reliance Jio have raised separate concerns against Vi’s MNP practices, prompting Trai chairman A.K. Lahoti to say the regulator will examine the representations. One issue relates to customers allegedly facing difficulty in porting out of Vi, while another concerns tariff benefits allegedly linked specifically to customers porting into the network.

The allegations have not been established by Trai, which is examining the representations.

What is the dispute about?

The first issue goes to the heart of a subscriber’s right to leave a telecom operator.

Under Trai’s MNP framework, a subscriber seeking to switch networks must send an SMS containing “PORT” followed by the 10-digit mobile number to 1900. The unique porting code (UPC) is then sent to the subscriber through SMS from 1901.

Trai’s MNP regulations require every access provider to facilitate portability for prepaid and postpaid subscribers on a non-discriminatory basis. The rules also require operators to maintain a mechanism to receive SMS requests for generating a UPC.

The second issue concerns alleged preferential benefits for customers who port into Vi. The question for Trai is whether such offers amount to differential tariffs or inducements specifically targeted at subscribers switching from another network. The relevant framework is Clause 10 of the Telecommunication Tariff Order, 1999.

Why the 2021 dispute matters

The current controversy has a striking parallel with an earlier Vi dispute.

In late 2021, Reliance Jio complained that Vi’s lower-value prepaid plans did not provide outgoing SMS facilities. That created a problem for subscribers who wanted to send the mandatory SMS to 1900 to generate a UPC and port out.

At the time, Trai found that non-provision of the SMS facility on certain prepaid vouchers curtailed consumers’ right to use MNP. On December 7, 2021, it directed all access providers to enable the facility to send SMS to 1900 for subscribers seeking a UPC, irrespective of the value of their tariff offers or vouchers.

The regulator’s position was subsequently tested before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

What did TDSAT say?

Vi challenged Trai’s directive, arguing, among other things, that a subscriber choosing a tariff pack without an SMS facility had effectively chosen to forgo that facility.

TDSAT rejected that argument.

In its March 2022 ruling, the tribunal held that the MNP regulations themselves create an obligation on access providers to facilitate portability for all subscribers on a non-discriminatory basis. It said this obligation necessarily includes providing subscribers with a mechanism to send the SMS required to request a UPC.

The tribunal also said Trai was within its powers to issue the December 2021 direction. It did, however, say operators could charge subscribers for the MNP-related SMS at the usual SMS rate and that Trai should provide reasonable implementation time.

In other words, choosing a cheaper plan cannot by itself mean giving up the right to port a mobile number.

What are the rules today?

Trai’s current consumer guidance says a subscriber can obtain a UPC if the number has been active with the existing operator for more than 90 days, outstanding postpaid dues have been cleared and other conditions — including those relating to ownership changes, court restrictions, contractual obligations and recent SIM replacement — are satisfied.

The UPC is generally valid for four days, while it remains valid for 30 days in Jammu & Kashmir, Assam and the North East. For an individual subscriber, a porting request submitted with a valid UPC within its validity period cannot be rejected by the existing operator.

What Trai now has to establish

That makes the factual question in the latest dispute particularly important.

Trai will have to determine what exactly is happening on Vi’s network. Is a subscriber on a particular plan actually unable to send the 1900 SMS? Is the restriction linked to a tariff, a recharge or some other technical condition? And, if so, does it effectively prevent an eligible subscriber from obtaining a UPC?

Those questions matter because the 2021 Trai direction and 2022 TDSAT ruling provide a fairly clear regulatory precedent on the principle of non-discriminatory access to MNP.

The separate port-in incentive issue presents a different test. Trai will have to establish whether the benefits being promoted by Vi are genuinely exclusive to customers switching from another network, or whether they are part of broader tariff or promotional schemes available to other subscribers as well.

For Vi, therefore, the latest MNP controversy is not simply about winning or losing customers. It puts the spotlight on a regulatory principle established years ago: a telecom operator can compete aggressively to attract subscribers, but the rules also protect their ability to leave.