Hong Kong's Lessons on Number Portability

Dr.Hair writes "Dan Gillmor once again hits the nail on the head with his comparison of Hong Kong's competitive mobile phone market to the United States. Experiences of incumbent carriers trying to thwart competition and stifle the free market in Hong Kong should be remembered as the FCC nudges US carriers to carry out number portability. In the end competition should provide better customer service, better coverage, and better pricing in the US, all of which will eat in to carrier profits. But it also might bring the US out of the tech backwaters, where customer lock-in is the marketing strategy and "innovation" is the spin of the day."

Comments

Only in Hong Kong

[Pingular]

can schoolchildren type 70wpm with their thumbs.

Every Company Seeks a monopoly

[Crashmarik]

And its the governments job to see they don't get it. Free markets aren't a naturally occuring phenomena any more than a bonsai tree. The FCC would do very well to remember this.

If you look at the current homogenized radio market you could argue that the FCC has encouraged filesharing by ruining radio. Television the less said the better. At least, there is hope for phones and the internet.

Re:Every Company Seeks a monopoly

[blmatthews]

Originally bonsai *were* naturally occuring phenomena, it's only after all the stunted trees growing on rocks in the mountains were found and removed that people started shaping their own bonsai.

I agree with your main points though.

Oh God No!

[Quasar1999]

If this is going to make the US more like Hong Kong, then God help us all! I don't want to be in a restroom stall listening to 20 other guys talking on the phone... That was ackward to say the least...

We Need the Phones Changed

[MBCook]

We need the phones changed and I suspect that it will happen soon with number portability going into effect.

Things will be interesting for a while starting tomarrow as people take advantage of this new policy, but I think soon enough we'll see the phones change to everyone's benefit.

OK, I've said that 3 times now, so what do I mean? I mean that right now my Sprint phone wouldn't work if I go to AT&Ts network or Cingular's network or someone else. They all use different systems. It's mentioned at the end of the article that that just isn't the case in Hong Kong (and I believe in Japan and Europe and other places where they have number protability). The having to get a new phone part is still going to be a little bit of a wrench in this plan, but soon enough one or two carriers will try to make it so competitors phones will work on their network and maybe we'll end up with a standard (or just 3 standards that work everywhere). When this happens, our mobile phone market will be better.

It's about time this is fixed. Imagine if the government allowed TV to develop this way. You'd either be able to watch NBC, CBS, or ABC, but not all 3 unless you had 3 TVs. And if you tried to switch, you'd have to buy a new TV. Yeesh.

Horray for number portability, it's time to let the free market decide what sucks so things can improve more.

That's great

[ThisIsFred]

I'm looking forward to this, but how about equipment portability? Carriers refuse to move your ESN over from an older carrier. Since the device is "activated" with a particular carrier from the start, what's to stop it from being re-activated with a new carrier? This is costly to me, and forces me to discard an otherwise perfectly functioning mobile phone. I know there are charities that take this old equipment as a donation, but I'd have a lot more cash to donate directly if I didn't have to pay an extra $40 to $100 USD every time I switched carriers.

My experience from Sweden

[Anonymous Coward]

We have had number portability for some time here in Sweden too. I've also changed cell phone providers a couple of times but at least to me it hasn't been the great competitive thing I hoped it to be. The phone companies just have differentiated more heavily their prices, much like insurance companies. So one is cheaper to connect a call with, another is cheaper to SMS with, yet another is cheaper for something else. To really compare prices you need to know exactly what services you use a month, exactly what time you use them AND to which numbers. This is a very hard job with an individual result, so in the end not many people compare prices at all.

Not the only problem

[mauriceh]

At some point I hope they legislate to prevent the mobile carriers from crippling the phones they sell.
When GSM first got going in N.America I bought a Motorola triband GSM phone ( 900,1800,1900 frequencies) from a Circuit City in Minnesota.
It was sold with a VoiceStream activation package.
Of course, when I took it home to Canada I found it was "SIMM locked" to only work with VoiceStream!
After some longish and not amusing phone conversations with VoiceStream I managed to get it unlocked by reminding them that they do not have service here in Canada.
Then I took it with me this summer to Malaysia and Singapore. That is when I found it was also crippled. The only frequency it would work on was the N.American 1900 band.
When I got back I contacted VoiceStream and Motorola to ask what it would take to restore the phone to allow it so work with the frequencies it was advertised as being capable of.
The response was that as VoiceStream ordered these with only 1900 capability the rest was "turned off" in the ROM version shipped to VoiceStream.
"Can they "repair" it?"
"No."
I will pay ( even though I should not have to)
"No"
Can I return it?
"No"

Total rip-off..

Re:Not the only problem

[Nogami_Saeko]

I had a fun one with Nokia:

I had purchased an unlocked 8290 (brand new) over the net. Great little phone, I really liked it, but the problem was that some brain-surgeon at Nokia had decided that to "assist" operators, the phone would auto-lock itself to the first SIM that was inserted into it.

Never mind that when you buy the phone it was unlocked and would accept any carrier's SIM, but afterwards it locked and you were stuck.

Needless to say, I was mad. Phoned Nokia, who said "We can't generate an unlock code for the phone, call your provider". Called the provider "We don't carry that model, so we can't generate a code.". Argh. Of course it was especially annoying that obviously Nokia COULD help me, but they chose not to. Soured me on Nokia phones something fierce.

In the end, buying a $10 cable and using a free utility off the 'net unlocked the phone in about 2 seconds. Still, it was a problem that never should've happened.

That said, I'm on a Sony Ericsson P800 now and I love it - triband, totally unlocked, all of the goodies. I'm skipping the P900 for now (as it's just an incremental upgrade), but will probably pick up the next phone/PDA offering from SE (hopefully some-time in the summer/fall of next year).

Even Worse

[Angram]

It's got to be easier when there are a lot of them. There are one or two guys in my hallway (I'm a college student living in a dorm) who talk on their cell phones in the bathroom. We've only got 3 stalls, they don't do it often, and it's usually talking to a girlfriend. It's quite unnerving hearing people say "I love you," out of nowhere in the stall next to you.

Danish experiences

[infolib]

In Denmark we've had number portability for several years. My current cell number has been through 3 different providers. IMO it's been a huge benefit to competition. For instance, I recently switched provider during a price battle that cut my phone bill in half. (My old one followed through most of the way, but they'd never have done it without number portability) They are obliged to extend number portability to work between cell and fixed line phones this april which I'm not so sure is a good idea - I like to know where I' calling because of pricing.

Best current rates in Denmark are about 10c/min, SMS's are 3-4c apiece with no subscription. Some expect the price to fall even lower within the next year. The government agency on IT and Communication runs a helpful price guide to internet and phone providers. Of course all the providers interoperate, so you can just switch sim cards to switch provider and you can call and SMS anyone.

Several providers offer subsidized phones that can be very cheap, but they're not allowed to simlock it to their network for longer than 6 months. It's not illegal to have the simlock prematurely unlocked and it is offered publicly for 15-20 Euro. (You might get better rates elsewhere). Your contract will however be enforceable, so you'll pay subscription fees. I used this possibility recently to use my phone with a german provider during my stay there. (It's illegal in Germany though - I sent my phone from Germany to Denmark to have it unlocked - go call the police)