Slashdot Mirror


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."

22 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.

  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 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 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. 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."

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

    1) cell phone number portability
    2) profit!

  10. 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
  11. 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.

  12. 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...
  13. 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!
  14. 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.
  15. 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
  16. 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
  17. 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...