The Indian regulator unveiled proposals late last week that will see Mobile Number Portability (MNP) introduced in India, the world’s second largest mobile market, by June 2009.

In a recommendation to the Indian government made public on Friday, the Telecom Regulatory Authority of India (TRAI) proposes the creation of a MNP Clearing House Administrator (MCHA) managed by a neutral operator or third party that will hold a central database of mobile numbers. According to the proposals, this body will bear the cost of establishing and running the MCHA and will be able to generate revenue from charging operators porting fees. This “neutral” party should have no more than a 10% equity stake in an existing operator and foreign ownership is capped at 75% in line with the India’s current rules on mobile licenses.

Under the scheme, a subscriber will not be able to transfer an unused balance from one operator to another. The TRAI added that the “break period” between one operator cancelling a number and another activating it should take no longer than two hours.

India’s Department of Telecommunication indicated last November that the scheme would be available in India’s largest cities by December 2008. The new deadline covers the entire country.