Telecom operators are escalating incentives for rural retailers to attract subscribers through Mobile Number Portability (MNP), offering extra rewards such as a month’s recharge or free demo packs for meeting specified port-in targets, according to an IIFL Capital rural survey on telecom trends. While overall MNP payouts remain broadly unchanged, these additional offers are being used to hit local port-in goals.
MNP incentives and field examples
The IIFL Capital survey found that in parts of Rajasthan retailers received between ₹299 and ₹349 per MNP after the first five port-ins, effectively amounting to a free monthly recharge. In rural Maharashtra, retailers became eligible for a free demo pack from a telco after completing more than three MNPs. That represents a sharp change from the firm’s 2018 rural survey, when operators offered only ₹200-210 per port-in and then only after retailers crossed 50 port-ins.
Competition heats up among telcos
Industry sources said the renewed push for retailer incentives reflects intensifying competition among Bharti Airtel, Reliance Jio and Vodafone Idea (Vi) to expand and protect subscriber bases. Vi’s recent move to offer free international roaming on select plans was cited by sources as another sign of a changing competitive landscape. Following the AGR (Adjusted Gross Revenue; a metric used by the DoT to calculate licence fees and spectrum usage charges owed by telecom operator) relief granted to Vi earlier this year, the operator has sought to reinvent itself in the telecom and digital spaces.
“Increase in incentives makes sense since the market has become more competitive now that Vodafone Idea is in a better position and can be more aggressive. The stakes are a little higher. Almost every operator has an incentive to attract and retain more subscribers,” said Mahesh Uppal, Director, CommFirst (India).
Port-ins picking up
MNP activity has generally increased nationwide: the number of SIM port-ins rose from 14.46 million in May to 15.83 million in August, according to Telecom Regulatory Authority of India data, though August remained below the 15.98 million port-ins recorded in January. Historically, spikes in MNP activity have coincided with major industry disruptions—such as Jio’s market entry or tariff revisions—further suggesting the sector may be entering another phase of heightened competition.
