However, a study was done suggesting that some carriers stand to lose more than others. I'm not sure I agree with the reasoning (basically, that AT&T and Cingular are more at risk because they're still upgrading their networks - while Sprint and Verizon have gotten more attention for the launch of their 2.5G systems).
On top of that, though, a comment made below my post gives plenty more reasons why the carriers are upset about this. There are costs to the carriers for people switching. They don't get the money back on any phone they subsidized. Setting each new account up is still a costly procedure, having to register the phone with the service - while making sure it keeps the old number. Etc.
Basically, carriers only make money if a customer stays a while. Number portability makes that less likely.
Of course, the response from consumers should be: "well, make your damn service good enough that I won't want to leave..." and the problem should be solved.
Mike
At 04:39 PM 3/27/2003 -0500, Michael Winser wrote:
The phone companies mind set on this one cracks me up.
If 30% of their users are switching providers every year then they have to be switching FROM one provider TO another. Unless a provider utterly sucks, they stand to benefit from the churn as much as their competitors. If they don't, well it's because they suck.
Because of the large number of variables contributing to customer satisfaction (rate, features, coverage, phones) it's safe to say that no one provider stands out as being better or worse than the others. Where I live, Verizon rules for coverage but isn't as good on rates or even features (no GPS or camera for my Motorola T720 yet).
Big organizations behave like 2 year old children.
Michael
----- Original Message ----- From: "Laura Mitchell" <[EMAIL PROTECTED]> To: "foib" <[EMAIL PROTECTED]> Sent: Thursday, March 27, 2003 2:50 PM Subject: @F: Number Portability
This is something I've been looking for, anyone know if plans are being made to implement this in Canada? ljm
http://www.msnbc.com/news/891025_asp.htm
Phone numbers are soon to go mobile Regulators to enforce 'number portability' rule
CHICAGO, March 26 - 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.
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