Expect glitches in cell swaps
Published 9:00 pm Saturday, November 22, 2003
Consumers itching to switch wireless phone providers now that they can do so while keeping their same number should expect glitches, delays and headaches at first, experts warn.
New federal rules take effect Monday that allow consumers to "port" their cell phone numbers between companies, or even to switch their existing wire-line phone number to a wireless phone. Long resisted by the major phone companies, the changes are expected to further shake up telecommunications by removing a major obstacle to competition — the ability to keep one’s cherished phone number.
But experts said telephone companies may not be immediately prepared to accommodate "local number portability," or LNP, as the industry refers to it.
"This could be a really bumpy ride," said Ron Cowles, vice president for Gartner Inc., a research company in Connecticut. "Not all phone companies are prepared for LNP, so we’re expecting a lot of little problems in the beginning. Besides, you’ll probably see better rates offered if you wait a while longer."
Long-term, industry executives and analysts predict that number portability will continue to reshape an industry that’s already been revolutionized in the past decade by wireless technology, the Internet and deregulation.
By some predictions, as many as one-third of the country’s 152 million cell phone users could switch providers over the next couple of years. Perhaps one-tenth of the country’s 179 million wire-line customers could move their home numbers to wireless phones.
The industry has already invested more than $1 billion to prepare for Monday’s rule change.
Verizon Wireless, the largest U.S. carrier with nearly 35 million subscribers, opened a customer service center in Tennessee and packed it with nearly 1,000 service representatives to deal solely with porting requests. Sprint PCS, the fourth largest carrier, has focused on network improvements to expand its coverage area. And AT&T Wireless, the second largest, has been busy signing agreements with competitors to ensure the porting process functions smoothly.
As of Monday, consumers who want to port their numbers will be able to call or walk into any wireless carrier’s store and ask them to switch a number from the customer’s existing carrier.
Customers shouldn’t have to wait more than 2 1/2 hours to switch a number from one wireless carrier to another, and about four days to switch a number from wire-line to wireless, the Federal Communications Commission estimates.
For companies, the procedure is more complicated, with anywhere from 12 to 100 steps.
Once a customer authorizes a new carrier to switch his number, the new carrier sends a computerized request to a data clearinghouse. It contacts the old carrier to verify the customer’s information and billing address.
After the data are verified, the clearinghouse or the new carrier sends the phone number to the Number Portability Administrative Center, run by Neustar Inc., a neutral third-party company in Virginia. Its job is to notify all the national carriers that the number has been switched to the new provider.
Wireless carriers aren’t publicly discussing what tactics they will employ to lure customers, but experts say consumers should expect a marketing war. From more free minutes to promises of better service to offers of low-priced, but snazzier phones, customers will likely be inundated.
Experts predict that traditional phone providers will compete even more aggressively by offering to bundle a variety of services that could include broadband, local and long distance calling, entertainment and wireless access. In short, the phone business is about to change even more.
"Carriers won’t compete on pricing initially, but you’ll see everything else improve as the offers roll out," Hyers said. "It’s going to get even better in January or toward Christmas — once the kinks are ironed out."
