Mobile number portability allows subscribers to retain their phone number when switching mobile service providers. It increases competition by removing the barrier of needing to change phone numbers. Implementing mobile number portability presents challenges for service providers, including high costs of upgrading systems, risk of losing customers to competitors, and complex coordination between providers to route calls to ported numbers. The process involves a central database maintained by a neutral third party that stores ported numbers and routing information to direct calls to the new provider.