Telcordia’s joint venture company MNP Interconnection Telecom Solutions India Pvt Ltd (MITS) has been selected to manage India’s Mobile Number Portability solutions in South and East of India, while Syniverse Technologies for the North and the West.
Fees: There is a one time, non-refundable, entry fee of Rs. 1 crore for the license, and the licence fee is one percent of Adjusted Gross Revenue (AGR) of the licensee Company. There is no license fee for first two years.
Roll Out Process: The country has been segmented into two zones consisting of 11 Licensed Service Areas each with 2 Metro service areas in each zone. A maximum of two companies will manage MNP for a period of 5 years, each with a separate zone of operation. Initially MNP will be implemented in all Metro and category ‘A’ service areas within 6 month of award of the License. MNP regime will be rolled out in the country by end of summer 2010.
Just In Time FDI For Telecordia JV
The timing of this announcement is interesting – Telcordia is a NASDAQ listed entity, and on Feb 23rd 2009, it received the go-ahead from India’s Foreign Investment Promotion Board (FIPB) for foreign investment. Telcordia was allowed to pick up upto 74% foreign investment in the mobile number portability, and allowed a foreign investment of Rs. 45 Crores. Earlier, the JV company (MITS) had requested the DoT for a clarification on whether the it can bring in the paid up capital of Rs. 10 Crores after receiving the FIPB approval, but before signing the License agreement. Telcordia has partnered with Deepak Talwar Consultants for the MITS JV, according to Mint. Telcordia has been operational in the Indian market before, with Tata Teleservices Ltd among its clients.
Syniverse, which has won the mandate for the North and West regions, including two fairly saturated and key markets – Delhi and Mumbai, is a company that provides technology interoperability, network services and number portability to mobile operators, wireline carriers, emerging telecom market entrants and enterprise customers. The company is headquartered in USA, with offices in major cities throughout the Americas and in The Netherlands, London, Luxembourg, Rome, Beijing and Hong Kong.