Carriers Might Profit From Cell Number Portability

Makarand writes "Carriers that are adding cell-number portability fees to your monthly cell phone bills (while fighting against actually implementing the requirement) may actually rake in profits from these levies as the total amounts collected will be more than the projected costs of meeting the FCC's number portability requirements. Although federal law requires that such fees be 'just and reasonable', it does not require reporting of their actual expenses. Consumer advocates feel that the number portability verification processes required are similar to those used by long-distance phone companies when a customer switches from one service provider to another and there is little reason to believe that expenses to meet portability requirements should vary widely among carriers and be so excessive as to bring profits for the carriers."

Comments

And ...

[Vanieter]

is this supposed to be surprising or something ?

We're talking about private corporations trying to make more profit after all.

"Although federal law requires that such fees be 'just and reasonable', it does not require reporting of their actual expenses."
That pretty much sounds like giving the cell phone corporations carte blanche.

How long will this last?

[tynman]

What makes me ill about the FCC allowing them to charge for this is that we're still going to be paying that $1 "number portability fee" 20 years down the road when all the carriers have long since paid off the expenses of "upgrading" their networks. Does anyone know if there's a date set for when they can't stop milking us on this anymore???

Re:How long will this last?

[Anonymous Coward]

Well given that in America you must still pay a fee to have touch-tone dialing, 20 years after it was first introduced I'd say that the evidence indicates you'll all still be paying your number portability fee in 20 years time, too.

Breaking News

[thebatlab]

This just in....companies out to make a profit!! :)

Ok, seriously, this feels like just another article to get everyone all riled up over "the man". Yes, it seems outrageous what companies like Sprint and NextTel are charging. Does this mean that they aren't just trying to cover their costs and possible pot a bit of profit off of a new service offered to customers? Ok, maybe it seems like they want to make an excessive profit. Don't like it? Well, it looks like the gov't already has a watchful eye on them (if that's any comfort ;)) and is ready to impose regulations if they really get carried away.

Everything a company does can't be done just at cost. A company needs to make a profit to be able to fully survive. It looks like Verizon is able to recoup these costs thanks to existing reserves or they are willing to take the hit for increased customer satisfaction which is great to see. It's so great to see that if I was in the States, I would probably switch over to Verizon as soon as my contract with one of those other companies was up (or sooner!).

It's very hard

[toddhunter]

To be terribly surprised by anything like this. Just wait until the portability measures are implemented and forgotton too. Don't be surprised if the charges are still there, especially since they are effectively 'hidden' from view.

How soon will we run out of phone numbers again?

[zakezuke]

Ok, number portability... this is cool... I have to say keeping your old number when switching carriers, this is just spiffy. Paying a fee for it... well might as well, you are nickled and dimed on this issue anyway... not a big thing.

I live in the States, while I mobile use isn't quite up there with the rest of the world, we already have had create quite a few extra area codes. That pesky issue of running out of seven digit phone numbers.

What I want is a system where by you actually keep your freaking landline number, and dial a diffrent prefix to hit the users mobile or fax/data device.

Now that would be what I call real number portability!