MISC> WIRELESS CARRIERS PROPOSE NEW 'NUMBER PORTABILITY' PLAN
- From: Gleason Sackmann <gleason@xxxxxxxxxxxxxxx>
- To: NetHappenings <nethappenings@xxxxxxxxxxxxx>
- Date: Mon, 14 Apr 2003 14:43:21 -0500
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Net Happenings - From Educational CyberPlayGround
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WIRELESS CARRIERS PROPOSE NEW 'NUMBER PORTABILITY' PLAN
For years, U.S. wireless operators have opposed efforts to force them to
allow customers to keep their cell phone number when they switch to another
carrier. But the Cellular Telecommunications & Internet Association is now
pushing a new plan -- one that would comply with Federal Communications
Commission rules on cell phone number portability, but would also require
land-line carriers to allow customers to switch their traditional phone
numbers to cell phones. The new proposal, if adopted, could accelerate the
trend of people dropping their land-line service in favor of going
completely wireless. Wireless operators have fought number portability over
the years because they fear a dramatic increase in "churn," as they
eliminate one inhibition to switching carriers. That could increase costs
and likely would spark another round of price wars. "It's basically the
nightmare before Christmas," says Roger Entner, an analyst with Yankee
Group, who predicts that escalating churn following the Nov. 24 deadline
set by the FCC could cost the industry $3 billion in the fourth quarter
this year and the first quarter next year in increased commissions, phone
subsidies and other sales-related expenditures. By including traditional
phone providers in the number portability plan, wireless carriers hope to
compensate for loss of cell phone customers with a new influx of former
land-line subscribers. "The opportunity to take the wire-line phone and
port it to wireless is an opportunity that the wireless industry wants to
have happen," says Michael Altschul, general counsel to the CTIA. FCC
chairman Michael Powell plans to rule on the CTIA proposal before the Nov.
24 deadline. (Wall Street Journal 10 Apr 2003)
<http://online.wsj.com/article/0,,SB104993000328997700.djm,00.html>
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