Predicting Mobile Portability Across Telecommunication Networks Using the Integrated-KLR

Mobile number portability (MNP) across telecommunication networks entails the movement of a customer from one mobile service provider to another. This, often, is as a result of seeking better service delivery or personal choice. Churning prediction techniques seek to predict customers tending to churn and allow for improved customer sustenance campaigns and the cost therein through an improved service efficiency to customer. In this paper, MNP predicting model using integrated kernel logistic regression (integrated-KLR) is proposed. The Integrated-KLR is a combination of kernel logistic regression and expectation-maximization clustering which helps in proactively detecting potential customers before defection. The proposed approach was evaluated with five others, mostly used algorithms: SOM, MLP, Naïve Bayes, RF, J48. The proposed iKLR outperforms the other algorithms with ROC and PRC of 0.856 and 0.650, respectively.

The Impact of Mobile Number Portability on Demand Price Elasticities in Sub-Saharan African Countries

This paper examines the effect of mobile number portability (MNP) on own- and cross-price elasticities. We use quarterly data for 27 mobile operators in seven Sub-Saharan Africa countries between 2010Q4 and 2014Q4 to estimate a differentiated products demand model. We find that the implementation of MNP increases price elasticities of demand for mobile services. This increase in price elasticities may be a result of reduction in switching costs between operators. On average, the introduction of MNP increases own-price elasticities by 0.47 in absolute value. We compare the level of price elasticities before and after the implementation of MNP in Ghana and Kenya, which implemented this policy in the time period of our study. Our results suggest that in Ghana, MNP increased own-price elasticities by an average of 0.35 in absolute term from an average of −0.74. In Kenya, the introduction of MNP increased own-price elasticities by an average of 0.21 in absolute term from a lower average of −0.39. However, we find that the average own-price elasticities in Kenya and Ghana remained small even after the implementation of MNP relative to other countries without MNP in place.

How Does Firm Scope Depend on Customer Switching Costs? Evidence from Mobile Telecommunications Markets

This paper examines the relative advantages of single-product and multiproduct firms following changes in customer switching costs. Whereas a single-product firm can closely tailor offerings to customers’ needs, a multiproduct firm can create value for customers in the form of flexibility, allowing them to change between product varieties as preferences evolve without needing to switch providers. We argue that this value-creation mechanism is more effective when customers face high switching costs and explore this prediction in the mobile telecommunications sector, using an exogenous policy change (mobile number portability) that suddenly decreases customer switching costs. Our results reveal that when customer switching costs fall, multiproduct firms see lower growth than single-product firms, and entry with a multiproduct offering becomes less frequent than before. The study highlights how customer switching costs can enable or inhibit choices of firm scope. This paper was accepted by Joshua Gans, business strategy.

Customer Switching Behavior Towards Mobile Number Portability

The telecom services have been an imperative means for socio-economic development of a country and a large contributor to the rapid growth and modernization of various sectors of the economy. In recent years, the mobile services are having enormous growth due to rapid changes in technology. The mobile users have the choice to switch from one telecom operator to another within the telecom circle without the change of phone number. The introduction to MNP promoted more competition in the telecom sector and forced service providers to improve service quality and reduce prices. Therefore, it is necessary to understand the factors influencing customer switching behaviour for using mobile number portability. The study identified that the respondents are not only aware of MNP but also know the procedure of using MNP. The results show that service payout, trustworthiness, responsiveness, and monetary value have a positive influence on customers to switch over other service providers whereas accessibility and technology do not have a positive influence on customer switching behaviour.