In terms of mobile networks, does Number Portability (NP) really
work and how has the growing importance of text services changed
the landscape?
Number Portability (NP) is the ability to move from one network
to another whilst retaining your existing phone number. NP has been
accepted on terrestrial networks but mobile networks are a
different story. Problems specific to mobile networks exist, such
as the different ways in which number prefixes are processed and
issues such as the complexities of the different charge bands.
OFTEL, the industry regulator, has the arduous task of aiding NP's
introduction by steering a centre path between stimulating
competition and overseeing fairness that will lead to the provision
of value-added services.
Being tied to an operator through non-portable telephone numbers
has no doubt frustrated mobile phone users, but some mobile
operators have argued against NP from both an economic and
technological standpoint. On the other hand, customers are
hankering after the economic and the freedom-of-movement
benefits.Essentially, NP is a very simple idea - allow mobile phone
users to access different networks while on the move. Simple though
the concept may be, it is being applied to a pretty complex
service, with a multitude of different providers. Those with the
most to lose are the well-established mobile players such as
Vodafone and BTCellnet. Newer mobile companies, such as Virgin
Network, have welcomed NP because it creates an opportunity to
increase market share through "churn" - the rate at which users
switch service providers. Without NP, a customer would probably
have to be very dissatisfied with their existing service or stand
to gain substantially by moving. In effect, competing effectively
through NP provision may clear a path for newer companies to gain
larger chunks of market share.Although the advantages of NP to the
user are many, it also poses some technical problems that might
affect users. Moreover, the tariff aspects of a call are not simple
to administer. Users have become accustomed to call management
features such as Calling Line Identification (CLI), Call Waiting
and Automatic Call Back. However, the introduction of NP in some
networks poses problems with retaining these features. Although NP
is associated with telephone calls, it also applies to fax and data
calls.One option that goes some way towards achieving NP (as well
as insulating companies from BT's enforced number changes) is the
introduction of personal numbers. While personal numbers and NP are
sometimes confused, there is an important difference - a personal
number is a service from a virtual network, whereas NP is a feature
of an existing network.Personal numbers permit a customer to
register their presence anywhere in any network and receive calls
anywhere in the world. The beauty of personal numbers is that when
you change your telephone number - whether fixed or mobile - it is
invisible to the outside world. Of course, there is the pain that
must be endured during the initial transition from fixed numbers to
personal numbers, but once this is overcome, all the benefits are
available. Effectively, personal numbers allow customers to call
your usual 07 number, whether you're in the office with a client,
at home or on the road.In order to provide these extra features to
a personal number an intelligent network is required, while NP does
not require such infrastructure. Ray Nixon, Computer Manager of
FleXtel, a personal number company, explains."The main difference
between a personal number and a portable number is that a personal
number is much more flexible, making it easier to stay in touch.
Also, there is no connection fee or rental charge. For example, if
you're on site with a client and your mobile phone battery goes
flat, you can stay in touch with the office by simply redirecting
your personal number to a local fixed line or another mobile
phone."The advantages of number branding have already been
established. For example, One 2 One numbers began with 0956 and
Orange numbers with 0973 - these are being replaced by 07956 or
07973, the 079 code in this instance indicating that a customer is
calling a mobile number. However, it can be argued that branding is
achieved by the nature of service provided rather than the number
code. For example, One 2 One will always be remembered for
providing free calls from 7pm to 7am, whereas Orange is associated
with Talk Time (free calls for 60 minutes per month). The longer
established players - Cellnet and Vodafone - built reputations on
the extent of their geographical coverage.Even with the
introduction of NP, customers with new contracts will still be tied
initially to their twelve-month contracts because the contract
effectively pays for the subsidised handset prices. Therefore, NP
will be of interest to customers who have already served their
initial 12-month contract term, or to those who have opted for the
pre-pay option, which allows customers to pay for mobile phone use
as needs dictate. Virgin Mobile's Steven Day confirms that, "Number
Portability does work, whether it is voice or text-based networks.
Therefore, the restriction of text being sent from Orange to
Orange, or Orange to Virgin Mobile, is no longer an issue."Even
though NP is proving popular, it still suffers from a 28-day delay
from first request to a number being ported to a new network. OFTEL
is currently trying to shorten this time lag, with a target time of
between seven and 10 days, with trials starting in August. At
present, one obstacle to speeding up number changes is the
dynamics, with the postal service slowing the whole process down -
currently documents need to be signed and returned. Using the
Internet - and possibly digital signature technology - will greatly
shorten the transition time.The efficiencies that NP offers,
coupled with increased levels of competition, will provide certain
advantages for business users. For example, subscribers will be
able to pay for wireless services before they are used, and private
networks can be set up on a service provider's network, giving such
advantages such as four-digit dialling within a defined group.
Moreover, users will be able to use flexible alerting - subscribers
can have their messages ring on a number of different phones
simultaneously, completing the call to the first phone answered. In
the future, buying telephone numbers may become similar to buying
IP addresses, or even domain names for hosting web services.Number
Portability is sweeping through the mobile market and is liberating
customers from their ties to individual mobile service operators.
This is stimulating competition and producing a greater churn rate,
a situation which has seen the likes of Virgin Mobile, with its
innovative pricing scheme, gain 300,000 customers within its short
life. The competition that NP is creating, and should continue to
create, will no doubt lead to lower mobile phone charges and
improved services as providers fight for subscribers.
Paul
Phillips