WASHINGTON-The Federal Communications Commission Monday said wireline carriers must port customers’ telephone numbers to wireless carriers even if the wireless carrier does not have a switch in the wireline carrier’s rate center, but the FCC is seeking comment on how to make it possible for the reverse to be true.
“After today it’s easier than ever to cut the cord. By firmly endorsing a customer’s right to untether themselves from the wireline network-and take their telephone number with them-we act to eliminate impediments to competition between wireless and wireline services. Seamless wireline-to-wireless porting is another landmark on the path to full-fledged facilities-based competition,” said FCC Chairman Michael Powell. “No doubt there will be some bumps in the road to implementation, but I trust that carriers will use their best efforts to ensure consumers have the highest-quality experience.”
The Management Network Group estimated in a report released last month that 19 million consumers would transfer their home numbers to wireless phones if they had the option. About 5 percent of wireless consumers, or about 7 million Americans, have already cut the cord and rely solely on wireless service for their voice telecommunications needs.
The decision was not unexpected. The FCC last week released a customer fact sheet and FCC Commissioner Kathleen Abernathy held a press conference, both of which hinted toward this decision.
“I recognize that wireline network architecture and state rating requirements will prevent many (if not most) consumers from porting wireless numbers to wireline carriers. Although in the short term, wireline carriers will have more limited opportunities to benefit from intermodal LNP than wireless carriers will, I was simply not willing to block consumers from taking advantage of the porting opportunities that are technologically feasible today. I am hopeful that existing obstacles to wireless-to-wireline porting will be addressed as expeditiously as possible through technological upgrades and where necessary, state regulatory changes,” said Abernathy Monday.
The FCC is also seeking comment on the length of time it should take to port a wireline number to a wireless carrier. Currently wireline-to-wireline ports take four business days, while the wireless industry hopes to port wireless numbers within hours.
The reaction was as expected, with the wireless industry hailing the decision and the wireline industry decrying it. Qwest Communications International Inc. threatened legal action.
“After six years of industry pleas for technical guidance on efficient interconnection of wireless providers to the wireline number portability environment-pleas that are still unanswered-the FCC has announced the new rules with just two weeks to go. These new rules say our wireless competitors can take our customers even though the technology does not allow us to offer the same benefit of number portability to the vast majority of their customers,” said BellSouth.
“The FCC struck down a major barrier to competition in the near-monopoly landline telephone market-and consumers are the real winners. Competition has proven to be the strongest force for falling prices and increased innovation, and America’s landline telephone customers will have choices like never before. Millions of landline customers may want to take advantage of the convenience and value of wireless, by transferring their home numbers to mobile phones. The wireless industry is delighted to have the opportunity to compete for their business,” said Steve Largent, president and chief executive officer of the Cellular Telecommunications & Internet Association. “The FCC has taken a bold step today, moving away from command and control regulation and towards greater reliance on competition and market forces to improve American consumers’ telephone services.”
“This is a one-way street that will leave millions of customers stranded without the ability to convert wireless numbers to wireline. Millions of customers prefer the security and quality of a wireline telephone. Additionally, as we’ve seen with recent natural and man-made disasters, a traditional wireline number is invaluable,” said Gary Lytle, Qwest senior vice president of federal affairs. “This mandate will create irreparable harm to customer choice and the industry as a whole. Consequently, Qwest is exploring its legal options.”
The rules-released less than two weeks before the Nov. 24 deadline-remove the last argument the wireless industry has been using on Capitol Hill. And not a moment too soon-the Senate was scheduled to begin debate late Monday on the FCC funding bill, the most likely vehicle for any changes to the WLNP rules.
“It ain’t over till it’s over but it looks like the wireless industry’s efforts to stop portability from going into effect are pretty much dead. Today’s rule from the FCC effectively eliminates the last argument that the wireless industry was using to stop portability, namely that it was unfair to treat wireline carriers differently from the wireless companies. It’s a win-win day for consumers who are about to go from having a handful of service options to a bushel full of them,” said Sen. Charles Schumer (D-N.Y.).
