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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."

39 of 184 comments (clear)

  1. And ... by Vanieter · · Score: 4, Insightful

    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.

  2. Portability in action by idles · · Score: 5, Interesting

    The portable cell numbers came to use in Finland just a month ago. The result was a furious fight between the operators fighting for customers: free radio phones, DVD players etc. if you became their customer. But then one of the operators realized it's better off to give benefits for existing customers. They lowered prices for the weekend and started a campaign saying "Our customers are doing better". I think that's the right way to go. I don't want to be switching my cell phone operator all the time. So in the end, customers really did benefit from the change.

    1. Re:Portability in action by seanadams.com · · Score: 4, Interesting

      Hear hear!

      I stopped using my cell phone about a year ago when I realized that I could get by in life just fine without being on call 24x7. To be fair, before that I was running an ISP and *did* need to be on call but anyway...

      I went about six months paying the bill on the thing, thinking that the next time I go on a business trip it'd come in handy. Last month I needed to go to Europe, so I figured no problem - I'll just go upgrade my plan and switch to the GSM phone. But could I just upgrade my plan, NO! They needed my social security number to run a new credit check, they insisted that I needed the model with a 4" color screen that played video games, and they said that even the base model would cost me $400 ust to get started. AND I'd have to sign a NEW two-year contract to get that special price. I just left my old phone on the counter and walked out. Called Xingular when I got back to the office and cancelled my service.

      I will sign up fora cell phone again when I can get my choice of a flat monthly rate or a per-minute-only rate on a phone that works everywhere in the world with no long term contracts. And don't pull stupid shit like subsidizing the service with the price of the phone and vice versa. I don't insist that it be "dirt cheap". I know it costs $$$$ to build a world-wide cellular network, but there is a fair and reasonable way to charge for it and nobody's offering that.

    2. Re:Portability in action by rossz · · Score: 3, Interesting

      Sounds similar to what I did. I called up to change my service plan. Nothing major, I just wanted more minutes before the extra fees kicked it. They wanted a new two year contract. I told them that was completely unacceptable and that if I couldn't simply increase the minutes without a new contract then they could cancel the service that very moment. They insisted the contract was required - so I cancelled.

      --
      -- Will program for bandwidth
    3. Re:Portability in action by Zemran · · Score: 3, Interesting

      In the UK they have to allow portability of your number. I recently wanted a new phone as my old one was now a year old. My phone company (Orange) wanted 150 UK pounds for the phone I wanted (Sony T610) but another company (Vodaphone) would give me the phone for free if I switched to them. When I asked my phone company for a PAC number which is the code that I need to take my phone number with me to the new company, the old company decided that they could give me the new phone for free as long as I agreed to a new 1 year contract (same as the new company would have required). My current contract costs me 12 UK pounds each month (including 20 minutes of calls) so it is cheaper to take the contract than buying the phone.

      --
      I love stacking my barbecues in the shed at the end of summer - you can't beat a bit of grill on grill action.
    4. Re:Portability in action by pheede · · Score: 3, Interesting

      It's interesting to see how much this differs between countries. Someone else noted, that number portability is very easy, and essentially free, in the UK, because of the intense competion between cell providers.

      It's the same situation in Denmark: basically no one charges when transferring your number from another provider, since they are desperate to get you to change. Couple that with 1 DKR per minute (~15 cents), no monthly fee and no contract that binds you.

  3. How long will this last? by tynman · · Score: 5, Insightful

    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???

    --
    Darned tropical millipede! What's it doing in our apartment?
    1. Re:How long will this last? by Anonymous Coward · · Score: 5, Insightful

      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.

    2. Re:How long will this last? by BenjyD · · Score: 3, Funny

      You're joking right? Does anybody even own a pulse-dial phone? What is it with the US telco industry - it seems to lag behind the rest of the world so much.

    3. Re:How long will this last? by bogasity · · Score: 5, Funny

      My parents still have pulse dialing precisely because the phone companies charge for tone dialing. The way my Dad sees it, he's probably forcing the phone company to maintain an ancient switch just to support him, so they are losing money by not giving him the tone dialing for free.

  4. Breaking News by thebatlab · · Score: 5, Insightful

    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!).

  5. It's very hard by toddhunter · · Score: 4, Insightful

    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.

  6. Side effects by Advocadus+Diaboli · · Score: 5, Informative

    I live in Germany where we have that feature for some while. One problem now is that I call a number that "belongs" to the same provider that I'm using, so I think that I do a call inside the providers net (which usually is cheap), but in fact the one that I call has switched to another provider and my call costs much more than I expect. :-(

    1. Re:Side effects by ThaReetLad · · Score: 5, Interesting

      Here in the UK number porting takes a couple of weeks with no paper work and no fee. The competition between networks is so intense that the mobile telcos are desperate to make it easy for people to change from one network to the other.

      --
      You can't win Darth. If you mod me down, I shall become more powerful than you could possibly imagine
    2. Re:Side effects by BrokenHalo · · Score: 3, Interesting
      The problem of inter-network call costs isn't going to go away, but I fail to understand why the US telcos are fighting so hard about this. Here in Australia, all of the services offer number portability (no questions asked, in fact it's assumed that you want it) without the need for time-consuming credit checks and so on. When I changed from my last provider to Vodafone, the SIM they gave me was active within 30 minutes of walking out of the shop. That's how long it took Vodafone to clear details with the earlier service and get everything working.

      And I don't have to sign up for plans that commit me to spending $[some_large_number] per month; just a flat rate per 30 seconds.

    3. Re:Side effects by arivanov · · Score: 4, Interesting

      Well,

      Complain to your regulator and your competition authority. At least in Germany they have some serious teeth.

      There is no technical reason whatsoever for the operators not to use ISDN call divert (or the equivalent mapping for this service in SS7 terms) as a mechanism for transfering the call to the new destination. In this case the only time when the call travels to the premises of the old operator is when it is set up. The actual voice (or data) should go directly to the new destination. There is no reason to charge you for the call set up only as for an entire call and there is no reason to route the call through the old operator network.

      The fact that the phone operators in Europe do not use this on purpose (it has been in GSM since 1997) is already a part of an investigation by the European comission. More specifically, it is the investigation on unfair roaming charges.

      So you are in you right to b*** and should do so. As a result of enough people b*** we may sooner or later get decent roaming charges for roaming mobile to roaming mobile calls so it may be a good idea to be persistent in this.

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
  7. Number portability my ass... by silentbozo · · Score: 5, Informative

    Verizon has been collecting "number portability fund" fees on my land-line for years. Can I migrate my number to another carrier? Hell no! Can I get my fees waived/refunded? Sorry, but those funds go into a common pool to provide number portability. But I can't move MY number! Sorry, but your number is in an area where number portability is not offered...

    The only way to win this game is not to play - I canceled my second line earlier this year. Take that Verizon!

  8. Monthly fee? Strange ... by Anonymous Coward · · Score: 3, Interesting

    ... here in the Netherlands you only pay about 20 Euro *once* for the number portation to your new GSM provider.

  9. Important Question by Go+Aptran · · Score: 4, Interesting
    There's an administrative fee to cover costs of maintaining the transfered phone number.... but will my cell phone company charge me an extra fee to take my number with me when I leave it after November?

    --

    "Under the spreading chestnut tree, I sold you and you sold me."

  10. so what you're saying is... by Anonymous Coward · · Score: 4, Funny

    1) cell phone number portability
    2) profit!

    1. Re:so what you're saying is... by Gherald · · Score: 3, Funny

      > 1) cell phone number portability
      > 2) profit!


      No "???" step?

      Amazing!

    2. Re:so what you're saying is... by deathcow · · Score: 3, Informative
      YES thats almost right, but you just need to make step 1 be step 2, and add the following step 1:

      1a) switch engineers: implement SS7/SCP related stuff
      1b) switch engineers: implement telephony switch related stuff
      1c) developers: implement SCP/SS7 related provisioning methods,test
      1d) developers: implement telephony switch related provisioning methods, test
      1e) developers: implement API for telephony network portability
      1f) developers: implement portability front end for customer service apps
      1g) developers: test top to bottom, front end, middleware (like metasolv), through API
      1h) developers: document for users/trainers
      1i) trainers: train cust svc reps on applying portability
      1j) cust service reps: apply portability !

      2) cell number portability

      3) profit!

  11. portability in oz by narkotix · · Score: 5, Informative

    In australia there was a big thing about the largest carrier preventing number porting. Our consumer watchdog (ACCC) got onto the case and made things start to happen which was good for us consumers!
    Here is a report detailing what the ACCC requested from the ACA (australian communications authority) to look into number porting for australian carriers.

    --
    We played dungeons and dragons for 3 hours.....then i was slain by an elf
  12. Netherlands by Captain_Chaos · · Score: 5, Informative

    Here in the Netherlands cell phone providers have been forced to let customers keep their existing phone numbers from competitors for a few years now. They don't charge extra for it (I don't think they're allowed, the mobile phone business is very strictly regulated over here), but they do have a tendency to take much longer to port your number than they should. I think it works moderately well, prices aren't exactly low but I think they'd be signigicantly higher without mandatory number portability.

  13. Verizon by heli0 · · Score: 4, Informative
    "Verizon says it has not yet decided whether to levy a number portability fee."
    http://news.com.com/2117-1039-1020501.html
    Verizon Wireless Chief Executive Denny Strigl said Tuesday that unlike rivals, Verizon won't collect monthly or one-time fees from subscribers who want to keep their original telephone number after switching carriers.
    Has Verizon wavered in their stance in the past two months, or are they just trying to leave themselves some wriggle room?
    --
    Whenever the offence inspires less horror than the punishment, the rigour of penal law is obliged to give way...
  14. How to take care of portability by ratfynk · · Score: 4, Funny

    I was thinking of changing carriers because my (Telus) plan was a real ripoff. Then I went saltwater flyfishing and forgot that my cell phone was in my coat pocket. It solved the problem. I have found that if my voice mail, e-mail and pager will not suffice for the caller then the person calling was not worth talking to anyway. I always return calls from real people and finally realised that the ones that are desperate to get something for nothing in a hurry use the cell to call you. If it is that important people will get through. Cell phones for some people are a huge waste of money. They were for me. The next time I think about getting a cell I will just go fishing instead!

    --
    OH THE SHAME I fell off the wagon and use sigs again!
  15. How soon will we run out of phone numbers again? by zakezuke · · Score: 4, Insightful

    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!

    --
    There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
  16. Re:How soon will we run out of phone numbers again by Asmodai · · Score: 4, Informative

    In the Netherlands we already have had that system in place for years.

    Our normal land lines have prefixes for the major cities, such as:

    Rotterdam - 010
    Amsterdam - 020
    Utrecht - 030

    GSM, buzzers/pagers, and such were using 06 prefixes. Sexlines and info numbers with costs per minute/conversation are 0900 (used to be 06 as well), and free informational phonenumbers (toll-free) are 0800.

    Number portability for mobile phone numbers has been regulated in the Netherlands for a while now due to OPTA. If a provider has its services down for a certain percentage in a month the OPTA will fine the appropriate provider.

    --
    Jeroen Ruigrok/Asmodai
  17. Experiences in Norway by nordicfrost · · Score: 3, Informative
    We have this feature in our system, and it has been there for some time now. The number porting system was a real boon to the smaller price-competing phone operators who previously had problem attracting customers. One of the companies, the price and service leader, has gone from 800 subscribers to well over 100 000 in just a year. I'm switching to them, so is my friends, mom, dad, girlfriend and her family. Left is the former state monopoloy, Telenor, which is hemmoraging customers.


    With number portability in a free market, the greedy actors are exposed really fast.


    There is also no fee for porting here, the only fee is an optional (for the company) connection fee. The very notion of having a fee is absurd in a GSM system, remember; it is made for quick portability. Porting your subscription is done in one step: Tell your new operator that you are switching to them and be sure to mention the phone # while you're at it. Done. The new SIM card arrives after a while and the porting date comes via email. Or snailmail if you want it to.

  18. I'm shocked... by WIAKywbfatw · · Score: 4, Funny

    I'm shocked, shocked to find that the carriers are using this as an excuse to gouge their customers!

    Whatever next? Companies that exploit their workers? Accountants that fudge the numbers? Politicians that lie?

    --

    "Accept that some days you are the pigeon, and some days you are the statue." - David Brent, Wernham Hogg
  19. Sptint charges this fee already by EmagGeek · · Score: 5, Interesting

    I pay $2.20 on my bill for "number portability."

    I called to let them know that I am dropping them for another carrier at the end of this month, and that I planned on taking my number with me...

    They said, and this was a real gas, "We don't offer that service. You'll have to give up your phone numbers if you leave Sprint."

    "But you're charging me for number portability!"

    "I'm sorry, sir, but you won't be able to keep your numbers"

    "Then why are you charging me for number portability"

    "Sir, Federal regulations require that we charge the number portability fee"

    "..."

    I couldn't believe my ears..

    Anyone else with Sprint heard the same story? I think that charging a fee for a service one can't utilize comes down to, oh I dunno, fraud...

    1. Re:Sptint charges this fee already by fuzzybunny · · Score: 3, Funny

      Well - have you seen any Rhinos in NYC?

      Of course. What do you think caused that damn power outage?
      Next thing you know - you'll be finding a charge for the Anti-Rhino device the phone comes with.

      I already am. How do you think we fixed the blackout?
      --
      Cole's Law: Thinly sliced cabbage
  20. Welcome to the UK... by MosesJones · · Score: 3, Funny


    We've had portable numbers for years... and most of the US mobile companies are Europe based and work in the UK, T-Mobile, Vodaphone etc. So the quick summary is...

    1) We've done it in the UK (and the rest of Europe)

    2) European companies dominate the carrier networks

    3) We're just doing it to piss you off.

    --
    An Eye for an Eye will make the whole world blind - Gandhi
  21. Charge the company receiving the customer by kimmop · · Score: 3, Informative
    In Finland, the company that loses a customer, can charge the porting fees from the telco that receives the number. The standard fee is negotiated beforehand between the telcos and no company dares to (directly) charge the fee from the customer they are about to receive.

    This way the telcos can't rise and obscure the prices by claiming it's because of the number portability.

    --

    --
    Binaries may die but source code lives forever

  22. Difference between Europe and US by SenseiLeNoir · · Score: 3, Interesting

    againt this shows the difference between Europe and the USA. I live in the UK, and number portablity is painless, free, and well organised to the point that people dont even think tiwice about it. Although oftel says 2 weeks at max to transfer, it usually happens within days. cellphoen operators cannot refuse to do it.

    more importantly, thanks to the strict regultations, number portability gives an EXTREME amount of power to the users.

    For example, if I ever feel that TMobile (my provider) is not performing as well as i expect, i simply threaten to ask for my PAC number (a number provided to port your number) and its suprising how far they will bend back to help you :) especially with me being a good revenue costomer for them! :)

    --
    Have a nice day!
  23. Re:The cycle begins again? by mgs1000 · · Score: 3, Interesting
    It is impossible to reprogram the SIM in a GSM phone over the air, and that would be necessary in order to change providers. Also note tha most carriers now sell "SIM-locked" phones, ones that will not work with other operators. If somehow a carrier could reprogram a SIM, the phone would just stop working

    Another thing, AWS is switching to GSM because they can cram more calls into any given channel compared to D-AMPS. It wasn't about quality. There is arguably no difference in sound quality to the end user. It was capacity issue. (Remember the class action suit brought against them a few years back because they oversold service) And as for data, a few telecom equipment companies were working on a data solution for D-AMPS(comparable to GPRS) but stopped development when AWS annouced that they were switching to GSM back in 2000.

  24. Portability? Hah! by schnarff · · Score: 3, Interesting
    I can personally vouch for the fact that phone companies are doing their best to not provide local number portability while busily raking in cash.

    I recently decided to switch from Verizon to Cavalier Telephone, a local CLEC. It took me almost two months to complete the transition, including some two weeks where I had no inbound phone service, unless the caller was coming from Cavalier's network (i.e. 0.0001% of the universe). Sparing everyone the gory details, I had problems including:
    • Cavalier required me to be at home to tell a technician to cut over from my Verizon line, despite my having told them it was OK at least a dozen times over the phone
    • Neither company could explain exactly what was happening with the split-bank on my line, required (at least by Verizon) for DSL. Understanding a that problem and getting it fixed added two weeks to the switchover.
    • When Verizon finally claimed it had ported my old number, they didn't bother to change their routing information, leaving me with my lack of inbound service. Neither company had a way of expediting a fix ("That'll be 3 business days, sir"), or even a person or department who specifically dealt with number portability or the like.
    I was paying both companies throughout the switch, mainly due to the fact that if I cancelled my Verizon account, the number I was trying to port would have disappeared for good.

    I was told many times over that neither company had ever experienced such a painful switch; even so, the fact that such a disaster could happen at all tells me that companies aren't paying nearly the attention they should to number portability issues, considering the millions they're raking in from it.
  25. # portability? We don't even havephone portability by merdaccia · · Score: 3, Interesting

    I'm amused by our friends across the pond feeling bad for Americans because they don't have number portability? But do our friends with the silly accents realise the sorry state the US is in when it comes to mobile telecom in general?

    Let's begin. The carriers here have no concept of a SIM card. Most phones are CDMA and are firmware locked to the provider. There are only two GSM networks I know of, T-Mobile and AT&T. Tri-band phones from these places cost as much as a Yugo. In addition, AT&T "provider locks" their expensive tri-band phones to only work on AT&T, and will not unlock them, not even for a fee (AT&T, if you're reading this, there are places online that unlock your phones for $20 or less, so screw you). T-Mobile unlocks your phone within 72 hours of being on contract, which is decent, however. Oh but should you wish to get a newer mobile from them, you have to resign a 1-2 year contract...

    Oh yes, the contracts! Wait til you hear about these! Everyone's on contract here, because it's too expensive not to be. So here's how it works. You have this allotted quantity of minutes you pay a fixed monthly fee for, then you pay exorbitant rates (40c+ a minute) if you use them up. These quantities are decent, for example, T-Mobile offers 600 minutes, free nights, free weekends, and 500 SMS for $43 (27 quid) without tax. Nice eh? Umm, no, little do you realize how backwards the billing schemes are here. For one thing, minutes from that "600" get deducted for every incoming call. Even SMS get deducted for every incoming SMS sometimes. And 1 second rounding? Try 1 minute rounding. And if you don't use all your minutes in a month? *poof*, gone. Cingular's trying rollover, but since they're not GSM, they don't count. Oh, and should you wish to add or remove the number of allotted minutes to your plan, you have to resign a 1-2 year contract, with a termination fee in the $100 or $200s.

    So in short, who gives a crap about number portability? How about we get reasonable plans and GSM phones which take SIM cards, before we worry about switching providers and keeping our numbers? What would you rather do, keep your phone when you switch carrier, or keep your number when you switch carrier? Especially since a decent triband costs hundreds of dollars?

    --

    *blinking cursor*

  26. Re:# portability? We don't even havephone portabil by Anonymous Coward · · Score: 3, Informative

    Do some research.

    Cingular and AT&T are TDMA/GSM hybrid networks. Cingular has decent GSM coverage in the Carolinas -- T-Mobile roams on Cingular (free of charge) while in the Carolinas. However, I hear that much of Cingular's coverage is limited, and AT&T has more of its TDMA areas covered by GSM. AT&T and Cingular sell GAIT phones, which support GSM, TDMA, and AMPS.

    T-Mobile is all GSM. In areas where T-Mobile doesn't have coverage, T-Mobile can roam on parts of Cingular's and AT&T's networks, along with many smaller regional operator's networks (e.g. West Virginia Wireless).

    T-Mobile will let you change your plan while in contract, as long as it's a normal plan (not a promotional plan, which is only available to sign up for during the length of the promotion). Also, they will let you buy new phones WITHOUT extending the contract - however, you probably won't pay the prices listed on www.t-mobile.com for some phones. For example, T-Mobile lists a price of $99.99 for the Sony Ericsson T300, with a $100 mail in rebate.. As a T-Mobile customer of 5 months with good credit, I could buy it for $130 (that's with a $50 discount). Remember, cellular operators subsidize the cost of the phones they sell..

    T-Mobile doesn't even offer 2 year contracts. All of their contracts are 1 year. And if you want to bring your own phone (or with some stores, pay the full unsubsided price for the phone), you can pay monthly without a contract.

    I went on eBay and purchased this same phone new (battery, accessories used) for $107.50 including shipping. When I got it, I put my SIM card and immediately I could use it.

    The current CDMA 1xRTT technologies deployed by Verizon and Sprint PCS are more advanced than the GSM/GRPS deployed by Cingular, ATTWS (AT&T Wireless), and T-Mobile. GRPS can't compete with the speed of 1xRTT for wireless data services.

    CDMA phones can have SIM-card like functionality, called URIM. However, this is not used at all in the USA. AFAIK, Sprint cells one phone with this functionality but disables it.

    Personally, I like the USA cellular billing scheme. Otherwise, you'd have to pay a lot for outgoing calls.. which I make the most with my phone.