ATS Network & Billing Update

   July 25, 2002


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FCC Extends Wireless LNP Deadline One Year

A win for wireless carriers and a cause of frustration for consumer groups, the FCC last week delayed the wireless local number portability deadline by one year to November 24, 2003. The delay provides carriers more time to offer number portability that allows consumers to switch carriers without switching mobile phone numbers.

In its Order, the Commission denied Verizon’s request to forbear from wireless LNP altogether, stating that wireless LNP will be necessary to preserve consumer choice and enhance competition within the wireless industry and between the wireless and wireline industries. The FCC found, however, that extending the LNP deadline for a period of one year until November 24, 2003, will allow adequate time to resolve all outstanding LNP implementation issues, including training personnel.

The extension also will allow wireless carriers to guard against any potential network disruptions that might result from simultaneous implementation of thousands-block number pooling and porting. The Commission emphasized that the number pooling deadline for CMRS carriers will remain November 24 of this year.

While reaching comprise on the delay, the Commissioners explained their differences on the length of the delay. ''I believe a shorter delay would have sufficed,'' said Commissioner Michael Copps. A short delay is necessary for ''no other reason'' than to allow carriers and public safety answering points to coordinate so there are no negative effects on 911 emergency service, he said. ''However, I support today's order because it is significantly superior to such options as an even longer delay, or worse, to forbearance that would result from commission inaction.''

Carriers and the CTIA steadfastly have opposed the requirement, which is aimed at increasing competition between carriers, citing FCC reports that wireless is the most competitive U.S. telecom business sector. The operators have fought the deadline -- and the requirement altogether -- not only because they expect it to cost them $1 billion next year to implement, but also because they believe it will jack up churn rates. That, in turn, will cost the carriers even more cash to acquire and keep subscribers -- costs they say likely will be passed on to consumers.

Consumer groups, on the other hand, say that enabling customers to switch providers without losing a personal phone number will increase competition and keep service prices lower.

The Commission considered and rejected arguments for a delay of more than one year, and stated that carriers will be expected to comply with this new schedule absent extraordinary circumstances. Wireless bureau chief Tom Sugrue said in a press conference after the meeting that wireless carriers shouldn't expect another delay in the LNP deadline. ''We don't want to do this again,'' he said.

For more information, contact us at info@atso.com.

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