Cell-phone users may soon be celebrating their independence from their current wireless provider. Verizon Wireless, the nation`s largest cell phone provider, has seen the writing on the wall and says it will stop fighting a federal order that mandates "number portability," as it`s called.
Consumer advocates have argued for years that consumers must be free to take their phone number with them when they change cellular carriers. The Federal Communications Commission (FCC) has adopted a portability rule that is supposed to take effect Nov. 24 but the wireless industry has been vigorously fighting the rule in the courts and through their lobbyists.
But now, Verizon says it will stop resisting and will go along with the FCC order.
Verizon Wireless president Dennis F. Strigl sounds downright patriotic about it. "Our government has spoken and our customers tell us they want it," he told an industry conference recently.
Cynics suggested that Verizon has calculated that it will be a net winner when the policy takes effect. By most measurements, its network has the largest "footprint," providing service in more of the country than other providers.
A recent study predicted that six percent of cell phone users will dump their present provider the day after they`re able to take their number with them to a new carrier. Another study, this one by the Yankee Group, estimated that 10 to 12 million more customers will switch service each year if they can keep their numbers.
An eye-popping 45 million customers now change providers -- and phone numbers -- each year.
The cell phone industry`s trade group, the Cellular Telecommunications and Internet Association (CTIA) plans to continue challenging the rule, even without Verizon`s support. The companies argue that the costs of providing the service are too high and the FCC`s rules are too confusing.
It`s estimated the industry will have to spend $1 billion to comply with the rule. Verizon says it is opening a new call center office with 450 employees that will do nothing but handle customers transferring from or to Verizon without changing their number.
Companies are still trying to figure out how to recover some of the costs of implementing the rule. Some may charge transferring customers who want to keep their number. Verizon says it will not charge customers but may eventually add 10 to 15 cents per month to all of its bills to cover the costs.
One company that has never fought the FCC rule is Leap Wireless, the nation`s ninth-largest wireless company. It operates in 20 states.
One final note: number portability does not void the terms of consumer`s cell phone contracts. Consumers must still live out the full length of their contract to avoid heavy penalty charges.
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07.07.2003
Verizon Buys Into Number Portability
Cell-phone users may soon be celebrating their independence from their current wireless provider. Verizon Wireless, the nation`s largest cell phone provider, has seen the writing on the wall and says it will stop fighting a federal order that mandates "number... |
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20.10.2003
It`s Cell Phone Deal Days As Number Portability Nears
Cell phone consumers are in the cat bird`s seat as Nov. 24 approaches. Though most consumers are unaware of the date`s significance, you can bet it`s circled in red on every cell phone executive`s calendar.That`s the day on which federal regulations require what`s... |
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10.12.2003
AT&T Wireless Leads In Number Portability Problems
The transition to portable cell phone numbers is working about as well as ... well, your average cell phone. Industrywide, about half of all number transfers have gone awry. AT&T Wireless leads the pack with a 60 percent error rate -- and is also reported to be... |
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03.03.2004
AT&T Wireless Maintains Lead in Number Portability Problems
AT&T Wireless is holding its lead in the number of problems reported with moving departing customers` numbers to new comanies. Since wireless portability began on November 24, 2003, the Federal Communications Commisison (FCC) says that it has received 5,852... |
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11.11.2003
Number`s Up for Local Phone Companies
The Federal Communications Commission isn`t considered a very exciting agency but it sent telephone company executives` blood pressure into the stratosphere when it issued new rules that would allow consumers to disconnect their home phones and transfer their number... |
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