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Michael Minges Senior Market Analyst

ENSURING TELECOMMUNICATIONS SUCCESS AROUND THE WORLD

Mobile Number Portability


Mobile Number Portability (MNP) • Ability of a mobile subscriber to keep their telephone number when changing service provider • TMG published a detailed report on the subject last year, which is available at: http://reports.tmgtelecom.com/


Portability in the World Number of countries with mobile number portability 50 48 40

43 38

30 26

20

28

19 10 0

1

1

4

6

10

14

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Sep08


Proportion of total mobile number ports to total mobile subscribers 70%

Finland

60% 50% 40% 30% 20%

USA UK

10%

Holland

0% 1

2

3

4

5

6

7

Number of years since the introduction of MNP

8

9


Churn & MNP 70% 60% 50%

% churn without porting number % churn with porting number

40% 30% 20% 10% 0% UK

Italy USA Israel Japan Spain Taiwan Korea Ireland Poland Austria France Finland Greece Norway Hungary Sweden S. Portugal Africa Pakistan AustraliaDenmark Germany Lithuania Belgium Singapore N. Zealand Hong Kong Slovak Rep Czech Rep. Switzerland Netherlands


Brazil & Mexico

Launch

9/08-3/09

7/2008

R$ 4 (US$ 2) (max)

One charge for administrative costs that each operator must register with the regulator. To date, no charges have been registered so MNP has been at no cost to the user.

Time

< 5 days

Between 2 - 13 days

Ported numbers (accumulated through Mar-09) (% of total subscribers)

442â&#x20AC;&#x2122;570 (0.29%)

256â&#x20AC;&#x2122;615 (0.34%)

Charge to subscriber


Portability in Latin America & the Caribbean Country

Planned launch

Ecuador

2009

The National Assembly approved a draft law requiring the introduction of MNP in 2009.

Dom. Rep.

2009

Has fixed the date as a requirement of CAFTA-DR.

Peru

2010

In May 2008, the Ministry of Communications announced that MNP would be introduced in 2010.

Panama

2010

Foreseen after a public consultation.

Chile

2010

After a public consultation in 2006, the costs of MNP were felt to outweigh the benefits. However, recent press reports suggest that MNP might be introduced by 2010.

Colombia

2012

In May 2008, a parliamentary commission approved a law that would introduce MNP before 2012.

Note


Benefits & Costs • Benefits • Reduces barrier for user changing operators • Companies do not need to reprint information about themselves when changing number • Increases competition

• Costs • Implementation costs • Tariff transparency


Implementation Routing

Indirect - not optimized

Direct - optimized

Data base

Only own numbers ported

Central

Mobile termination charge

Possible

No transit

Signaling

Minimized, but more traffic for the More, because all calls have to be donor network verified

Billing

More complicated

Less complicated


Other considerations • • • •

Pre-paid Numbering Cost recovery Fixed


Conclusions â&#x20AC;˘ Who does a mobile number belong to? â&#x20AC;˘ Ideal implementation: recipient network driven; central database with neutral administration; direct routing; and short port times and low or no direct costs for the user â&#x20AC;˘ The principal argument against MNP is the implementation cost. Although most studies show that the benefits exceed the costs, some analysts claim that MNP is not economically viable in small markets.


minges@tmgtelecom.com

ENSURING TELECOMMUNICATIONS SUCCESS AROUND THE WORLD

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MNP in LAC