Opponents of wireless local number portability lost a substantial ally last week as Verizon Wireless threw in the towel on fighting the proposed Federal Communications Commission mandate and announced plans for how the nation’s largest wireless carrier would handle customers looking to change carriers and keep their wireless phone numbers.
Speaking at the Yankee Group Wireless Leadership Summit in New York, Verizon Wireless President and Chief Executive Officer Denny Strigl said the carrier would adopt procedures that would allow customers to keep their phone numbers when changing carriers once WLNP is implemented Nov. 24.
“If LNP is something our customers want, it is critical that the process for them is easy, automatic and quick at the customer’s request-both for customers bringing a phone number to us, and yes, for customers leaving us with their phone number,” Strigl said. “There must be no barriers to easily switching service providers.”
To that end, Strigl said Verizon Wireless would not charge its customers additional fees for taking their phone numbers to another carrier or charge a “pre-portability fee” to pay for infrastructure required to make the system operational.
“We will not recover costs in advance of LNP taking effect,” Strigl said. “The substantial costs we have incurred so far in planning for and implementing LNP processes have been included in our general cost of doing business.”
Strigl added that after WLNP is implemented, the carrier would evaluate its ongoing costs and decide how to recoup the investment, which he said would be between 10 and 15 cents per customer, per month.
Strigl also noted that Verizon Wireless expects to port phone numbers within hours whether customers are signing up with the company or switching to new carriers.
“We intend to activate customers coming from other carriers in the same time frame we use today,” Strigl explained. “No standing around the store for hours, or waiting days for your new phone to work.”
Industry analysts had warned that carriers might institute prohibitive porting fees or delays in porting numbers to competitors in an attempt to mitigate a possible rush of wireless customers looking to switch to other operators.
To handle the porting process, Strigl noted Verizon Wireless plans to hire 450 new employees for a new customer-care center in Murfreesboro, Tenn., that will be the company’s hub for number portability transactions and is expected to be operational by October.
In addition to providing a guideline on the carrier’s plans for WLNP, Strigl threw down a challenge to other carriers to match its initiative and for the FCC to immediately approve the model, which was greeted with mixed results.
“It is imperative that all processes be identical, operationally tested and fully functional before Nov. 24,” Strigl said. “Each service provider has the obligation to ensure it is ready to go and in compliance by that date.”
Leap Wireless International Inc., which has been a proponent of WLNP, welcomed Verizon Wireless’ challenge and suggested the move may cause other carriers to throw their support behind WLNP.
“We welcome Verizon Wireless to the fold as an advocate of LNP,” said Harvey White, chairman and CEO. “Clearly, Verizon is very well respected in the industry, as well as being the largest wireless carrier, and we believe that their significant voice will help further industry support for number portability.”
While echoing the need for consistency in the industry in regard to the porting process, Sprint PCS President Len Lauer said Verizon Wireless is stepping over the line.
“There is a crying need for consistency and predictably in the porting process,” Lauer said. “But, it’s not the place of any one carrier to dictate the industry ground rules for the process; that’s for the FCC to decide.”
Lauer also brought up the ongoing struggle by the wireless industry to force wireline providers to allow customers to port their wireline numbers to wireless carriers.
“If Verizon were truly interested in making the process easy for its customers, then it would demonstrate true leadership among the [regional Bell operating companies] by allowing open competition for the porting of numbers between landline phones and wireless devices,” Lauer said. “As the largest carrier, Verizon needs to step up and address that need.”
Nextel Communications Inc., which many analysts feel could see a benefit from WLNP, did not comment directly on Strigl’s comments, but said it supports the concept of WLNP and will be ready to meet the mandate’s deadlines.
Despite Verizon Wireless’ proactive stance on WLNP, many industry analysts remain skeptical of the carrier’s intentions.
“Verizon is conceding that WLNP will occur, and that it is in its best interest to have its voice heard before the FCC sets forth any rules among the carriers,” Legg Mason said.
Others pointed out that because Verizon Wireless has the most to gain from WLNP, it should have backed the initiative from the beginning, and now its competitors can remind customers that Verizon Wireless was not always a backer of WLNP.
“As recently as two weeks prior to this endorsement, Verizon Wireless was a vocal opponent of WLNP,” explained Current Analysis in a report. “Some customers will remember this, and competitors will certainly educate others regarding the company’s flip-flop. In fact, for a company that seems to be in one of the best positions to benefit from WLNP, considering its reputation for having the largest network and strong service quality, Verizon Wireless should have been an early advocate in pushing this change through.”
While many industry comments questioned Verizon Wireless’ actions, consumer advocates and state regulators hailed Verizon’s reversal believing the long policy battle may finally be over.
“Verizon’s announcement will make it hard for the rest of the carriers to keep up their campaign to further delay the November deadline. We applaud Verizon breaking ranks and challenging the other wireless carriers to embrace enhanced competition through number portability by offering better service to customers,” said Consumers Union President Jim Guest.
The other carriers “may as well get on board because Verizon can now go out and advertise that customers can switch and keep their number,” said Anne Boyle, chairman of the Nebraska Public Service Commission.
The move by Verizon probably took the wind out of the sails of wireless industry lobbying to delay the Nov. 24 mandate to implement WLNP. There had been rumors circulating that Sen. Ted Stevens (R-Alaska) would offer an amendment to delay the November mandate when the Senate Commerce Committee considered a bill to re-authorize the FCC last Thursday, but no LNP-related amendments were offered.
Industry representatives warned the fight is not over. It is unclear what role, if any, Verizon would play at this point. After Verizon’s announcement last week, the Cellular Telecommunications & Internet Association held a conference call with its members’ Washington representatives to discuss a new strategy in light of the announcement. After Verizon was invited to update the call on its new plans to no longer engage in a legislative fight to delay wireless LNP, Verizon was asked to leave the call.
RCR Wireless News Washington Reporter Heather Forsgren Weaver contributed to this article.
