Wireless Number Portability

Wireless Number Portability, A TIME FOR CHANGE

As I write this entry Wireless providers are gearing up for what will probably be one of the biggest changes within the wireless industry in Canada. What I am speaking about is, Wireless Number Portability (WNP). WNP will allow wireless / Cellular phone providers to take their phone number and move it to another company if they are unhappy. This is a ruling that was created by CRTC which was put in place to increase the benefits to wireless customers, who for whatever reason may be unhappy with their current wireless provider and would like to take their business and their phone number to another wireless provider.

“By March 14, 2007 Bell Mobility, Rogers Wireless and the mobility division of TELUS Communications Inc. will be required to provide WNP to their customers in British Columbia, Alberta, Ontario and Québec. This means that customers in any of these provinces will be able to switch to any service provider in that province (wireline or wireless) and keep their phone number.

Throughout Canada, all wireless carriers will, by the same date, be required to release a phone number to another carrier (port-out customers) and by no later than September 12, 2007, to accept a phone number from another carrier (port-in customers). “[i]

Overall Canada has been slow in adopting this change, as many countries around the world have already introduced number portability for mobile users. In the United States, the FCC had mandated that wireless number portability be available to customers late in 2003. Canada’s lag to adopt WNP could be attributed to the CRTC and the relationship with the top 3 providers, Rogers, Bell and Telus. The 3 top carriers would not be keen on adopting WNP because it would result in churn or customer turnover, something the leading companies in this industry would like to minimize.

What will be the result?

Many subscribers are locked into lengthy contracts that will inhibit them from transferring their number to another subscriber. Wireless providers will be pushing lengthy contracts even more, as it will look to limit customers from being able to switch easily. Wireless providers have already boosted up their early cancellation fees, which may be a tactic to curb WNP.

Overall I think there are many consumers who are not fully aware what WNP will entail. As such you will without a doubt, have consumers who believe that WNP is free, and that they may switch to any provider as they please. Wireless subscribers also need to understand that many of their handsets may inoperable on certain networks. A good example of this is a customer who takes his/her Bell cellular phone and tries to activate it on the Rogers network. Two very different networks, CDMA & GSM!

“While WNP will remove a significant barrier to changing wireless service providers, consumers should bear in mind that handsets may not function on different wireless carriers networks due to different network technologies; customers may have binding long term service contracts with early termination fees; long distance services may not be transferable from one carrier to another; and not all the services that a customer has with one service provider will be supported or provided by another service provider. “[ii]

Customers now will also have added competition as new providers have entered the Canadian mix to potentially benefit from this new change. All of these providers who are looking to benefit from this are Mobile Virtual Network Operators (MVNO), US based Amped mobile and UK based Virgin Mobile. I would not classify MVNO as separate entity from the top 3 wireless providers, as they are linked to these companies. MVNO’s are on a profit sharing system whereby, the MVNO’s are running their service off of existing infrastructure. (I will explain MVNO’s in a subsequent post).

Virgin Mobile has consistently been pushing for the CRTC to change WNP regulations since it entered the Canadian mix of providers back in 2005.

“Richard Branson’s Virgin Mobile warned Canadians against signing a mobile phone contract before they have the freedom of owning their own number. The company is demanding that Canada’s incumbent wireless service providers assure Canadians they will be informed of all the facts before they make a decision about whether to sign a long-term mobile phone contract.”[iii]

Conclusions

Almost all the providers have not released any marketing campaigns targeted at obtain subscribers when WNP comes into play. It has yet to be seen how the providers will tackle this new change, and how the market will adapt to the feeling of having control.

--------------------------------------------------------------------------------------------

[i] CRTC, (2005,12,20). CRTC extends benefits of number portability to wireless. Retrieved February 20, 2007, from http://www.crtc.gc.ca/eng/NEWS/RELEASES/2005/r051220.htm

[ii] CRTC, (2005,12,20). CRTC extends benefits of number portability to wireless. Retrieved February 20, 2007, from http://www.crtc.gc.ca/eng/NEWS/RELEASES/2005/r051220.htm

[iii] Virgin Mobile, (2005,12,20). Virgin Mobile Press Release. Retrieved February 20, 2007, from http://www.virginmobile.ca/site/en/mediaCentre/html/pr_051220.html