Government has delayed by two months the introduction of mobile number portability to end-May, the telecoms minister said on
Mobile Monday.

"It has been delayed by two months because of security reasons," Andimuthu Raja told reporters.

The proposal ran into trouble with the Foreign Investment Promotion Board (FIPB).

Security concerns raised by the home ministry have forced the FIPB to defer its own approval in February 2009 to MNP Interconnection Solutions, one of two MNP service providers selected by the Department of Telecom. This is an extremely unusual situation that could even lead to the revocation of licence, involving a fresh tendering process.

US-based Telecordia Technologies owns 74% of MNP Interconnection with Indian partner Deepak Talwar Consultants holding 20%.

MNP allows subscribers to change their mobile service provider while retaining the number. Since MNP unleashes genuine competitive pressures, its biggest upside is a marked improvement in quality of service. It could also marginally reduce tariffs in international roaming and value-added services.