Subject: [NEXTEL-1] FCC Expected to Enforce Number Portability Deadline

From: Marcel <[email-masked]>
Date: Fri, 28 Mar 2003 15:08:25 -0500

FCC Expected to Enforce Number Portability Deadline

The U.S. Federal Communications Commission is expected to enforce a
November 24 deadline by which wireless operators must implement number
portability - enabling customers to keep their cell phone numbers when they
change service providers. Some consumer advocates and telecom analysts
expect number portability to increase competition in the wireless industry
where about 30 percent of customers change carriers on a regular basis. While
working to meet the FCC's deadline, wireless operators, for the most part, have
expressed opposition to number portability, which will cost them as much as
$1 billion industry-wide in the first year alone. Industry trade group CTIA will
head to court next month to represent the operators' positions. Meanwhile,
some analysts expect that wireless operators will charge a fee when a
customer keeps the cell phone number when they change providers. The fee
would be designed to cover part of the cos t to make that happen. Other
analysts expect operators to provide number portability for free. (Source:
Reuters) - more info
----------------------------------------------------------------------------------------
PluggedIn: Phone numbers are soon to  go mobile too
Tue March 25, 2003 12:37 PM ET
By Yukari Iwatani

CHICAGO, March 25 (Reuters) - Life is about to get a little
simpler for mobile phone users, who may soon avoid the
hassle of changing phone numbers when switching
wireless service providers, making it easier to take
advantage of discount calling plans.

Sure, it's not quite the greatest thing since sliced bread,
but it's a change that will make it easier for people to keep
in touch, no matter who manages the calls.

Starting in November, U.S. regulators will enforce a rule
that requires wireless operators to offer "number
portability," the ability to switch carriers without making
consumers give up their telephone number.

"We're changing the way we think about phone services,"
said independent telecommunications analyst Jeff Kagan.

"Traditionally, we've always called a place and asked for a person. Now we're
calling the person no matter where they are. Everyone will have a phone ... Moving
forward, you'll keep the phone number," he said.

That means consumers will face less of an obstacle when moving to cheaper
service plans or switching services if they're not happy with their current provider,
said David Heim, deputy editor of Consumer Reports magazine.

"The cell phone companies use the phone number like crazy glue," said Heim
"You get the number, and it sticks with that particular cell phone company. If you
want to change to a different company -- too bad."

In a recent survey conducted by Consumer Reports, about one-third of
respondents said they wanted to switch wireless services. But a significant
number of them didn't because they were unable to take their phone number with
them, Heim added.

That is precisely the reason why wireless operators are fiercely objecting to this rule.

They argue that nearly a third of consumers already change carriers on a regular basis,
and the new rule
will only cause the provider-switching phenomenon to grow and, in turn, lead to more loss
of customers
and more damage to their bottom lines.

"I'm not sure why we need it, as 30 some odd percent of the customers in this country
switch carriers
every year without this grand and glorious number portability opportunity," said Richard
Lynch, Verizon
Wireless chief technology officer.

With about 143.8 million mobile telephone subscribers, the United States is the world's
largest mobile
phone market in terms of sales, according to Gartner Dataquest. To win new customers,
carriers have
offered huge bundles of minutes at low prices as well as discounts on phones, contributing
to a high
turnover rate.

Providers also said the cost for revamping their networks could run as high as $1 billion
in the first year
alone.

The Federal Communications Commission, which regulates the telecommunications industry,
has
extended the deadline once, but FCC Chairman Michael Powell said earlier this month, he
expected to
keep the Nov. 24 deadline.

Wireless operators continue to protest the rule and industry group Cellular
Telecommunications &
Internet Association is expected to argue against it in court next month, but companies
like Verizon
Wireless VOD.L VZ.N and T-Mobile DTEGn.DE have committed to meeting the deadline.

In addition to being able to take their phone number, analysts said consumers will also
likely benefit from
even more attractive price plans and new features as wireless operators work harder to
keep customers
and attract new ones.

Wireless operators like Verizon Wireless and Cingular Wireless BLS.N SBC.N , which have
ties to
traditional telephone companies, may even try to bundle their services to keep customers,
analysts said.

"Consumers are the big winners on this issue," said Rudy Baca, a wireless analyst with
Precursor Group.

Baca expects wireless operators to charge consumers to keep their phone numbers, but he
doesn't
expect that to cover all of the costs to make it happen.

Other analysts said they don't expect companies to charge much if at all, given the
intense competition in
the industry -- if one operator decided to offer the service for free, customers would
flock to that company.

However, in the end, number portability may ultimately help the wireless industry in their
competition with
traditional telephone service because customers will be more likely to make their cell
phone their main
phone if they know the number will stay the same.

"Number portability is the last hurdle," Kagan said.

http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=2446096

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Your own Online Store Selling our Overstock.
http://us.click.yahoo.com/rZll0B/4ftFAA/46VHAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/