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Consumers fear portability rip-off

By Damaria Senne, ITWeb senior journalist
Johannesburg, 07 Oct 2005

Vodacom has allayed fears that number portability could cost consumers more than they expect, pointing out that the regulations limit the possibility of this happening.

This week, industry players expressed concerns that mobile number portability would potentially affect the on-network/off-network pricing model.

Definity Telecom GM Greg Rood notes that based on the current model, a consumer who calls a number he/she assumes is on-network could end up paying extra because the number has been ported to another network.

"It would not be fair to be charged extra without your knowledge."

Rood says although the extra charge would not impact greatly on high-end users, people with low use packages would be hit hard.

The Vodacom Group notes that Clause 7 (6) of the Mobile Number Portability Regulations provides for the originating operator to apply a warning tone before connecting the call to a ported number - if the retail rate for that call is more than 10% higher than it would have been had the subscriber not ported to another network.

Standardised packages

Rood suggests low-cost routing packages be standardised so that it does not matter whether the call is on-network or off-network. He argues that such a move will not hinder competition, as service providers can offer bulk discounts and other incentives to attract customers.

The alternative is that all service providers` high-end routers consult a central database during each call to find out which network the recipient number is on before initiating the call. Ideally, a recorded voice would inform the caller if the number is off-network.

The challenge with this alternative is that not all service providers would have the technology to implement it. Also, such a process would potentially increase the interval between the time the call is initiated and when the connection is made. So it`s easier to standardise the packages, Rood says.

Billing challenge

Rood says billing integration could also become a challenge, as service providers use different systems. He says it will be key to ensure there is a smooth transition when a contract ends with a service provider and an account is opened with another network.

Rood says the regulations give customers a lot of power. Service providers should ask themselves how many of their customers were unhappy and stayed because they did not want to change their telephone numbers, he says.

This is especially important for corporate customers, he notes, where large-scale transactions take place and the company cannot change service providers because of the potential loss of business.

"Companies are going to have to re-look their business practices and put a lot of focus on customer services," he says.

Related stories:
Portability may allow subscriber loophole
Number portability gets green light

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