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.