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Wireless Number Portability Comes into Effect

7:00 am on March 15, 2007 | Category: Cell Phones, Editorials, Regulation, Telecom Services, Telephone, Wireless

A major frustration for Canadian cell phone subscribers disappeared once and for all yesterday, as a regulatory decision came into effect allowing customers to keep the same phone number when switching service providers.

This will allow mobile phone users to hop from one carrier to another, taking advantage of the best deals on the market, without the fear of missed calls or the hassle of reprinting business cards. The change has given rise to speculation that wireless churn rates will skyrocket as millions of customers start switching carriers on a whim.

Most industry observers, however, aren’t holding their breath for such a stampede, noting that switching providers will still come with its fair share of headache and expense.

“Except for the most disgruntled consumer, no one is going to migrate phone companies just because they suddenly can,” explained Ken Wong of the Queen’s School of Business. “The carriers are being very careful to point out to people that the migration path is not necessarily a smooth and easy one.”

Switching to a new carrier usually involves buying a new cell phone, for example, meaning that all data stored on the old handset must be either transferred or lost. Its also important to remember that the many fees associated with switching carriers will continue to apply.

The main advantage of number portability, from a consumer prospective, will likely be a more competitive marketplace, where carriers are forced to find new ways to attract and retain customers. Product lines will expand, customer service will improve, and signing a contract might just become a little more enticing.

It’s also quite possible that number portability â€“ which involves landlines as well as mobile phones â€“ will increase the incidence of â€œcord cuttingâ€ in Canada, by allowing customers to ditch their fixed-line telephones for wireless while keeping the same old number up and running.

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