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Mobile Number Portability (Jun'06) Print E-mail
Wednesday, 12 July 2006

The same number across all networks

Image Stefanie Khaw

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In general, when you want to get a mobile phone, you pick out a phone you’d like at the store along with a number you like. A few years ago, I moved from Kuala Lumpur to Mantin, Negeri Sembilan. The network I was on provided rather unsatisfactory coverage so I was forced to switch to a different network and change my mobile phone number. Mobile phones may be portable but when you want to switch networks the problem is: you can’t take your number with you.

Last year, the Malaysian Communications and Multimedia Commission (MCMC) began studying how to implement mobile number portability (MNP) in Malaysia. MNP gives you the ability to port your number: This means that when you switch networks you’ll still be able to keep your old number.

The benefits of MNP extend beyond the simple convenience of holding on to your current mobile phone number. Changing phone numbers would mean that you’d have to notify your friends and family about your number change. For business purposes, you’d have to throw away your old letterheads and calling cards since the contact number displayed would be invalid. Not only will you have to incur the additional costs of printing new stationary, you might also miss out on business and other opportunities during the transition phase.

The implementation of MNP would mean that a huge barrier which has prevented unhappy mobile users from switching to other mobile operators will be removed. Basic economic intuition will tell you that this is clearly a case involving expansion of consumer choice as well as an increase in industry competition. Basically, MNP means that consumers will ‘own’ their numbers now –you won’t have to give up your existing phone number when you’re leaving a network.

On the demand side: Consumers will have less incentive to stick to an unsuitable, overpriced service due to the hassle involved when changing numbers. You’ll be able to switch to the network which offers you the better deal more easily now without having to inform everyone on your contact list about your number change.

On the supply side: churn rates –the proportion of subscribers who switch from one operator to another each month may be set to increase. It’ll be hard on the networks since they’ll probably have to reduce their margins to remain competitive. MNP is going to be great for consumers but not really good news for mobile service providers.

A Public Inquiry Paper on MNP which was carried out by the MCMC highlighted that one major technical problem which would be encountered upon its implementation was the fact that each mobile provider is assigned its own network code. All our mobile phone numbers start with a three-digit network code 01x, followed by the seven-digit phone number.


This would mean that we wouldn’t be able to differentiate Maxis users from DiGi users. You could be using a 012 number but be on the DiGi network. This could be a problem since Maxis to Maxis calls are obviously cheaper than Maxis to DiGi calls. If you are not able to tell the difference between numbers it might be harder to monitor your call charges especially if you’re on a fixed line contract.

IMP implementation in Malaysia is set to begin this year. According to the MCMC, a charge of RM10 will potentially be charged to users who want to port their numbers to another network. Networks may be allowed to impose a maximum contract of one year to subscribers.

When MNP was first introduced in Hong Kong back in 1999, churn rates soared. In three years it was reported that a total of 5 million subscribers switched operators and kept their numbers in a territory with a population of 7 million. RM10 is a tiny fee to pay to keep your number and Malaysian consumers will undoubtedly not hesitate to make use of this service when it is made available. Nevertheless, since all three Malaysian networks have been offering more or less similar packages in terms of quality and price the churn rate here may not be as high.

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Stefanie hopes that one day she can take her number across all countries too. You can contact her at This email address is being protected from spam bots, you need Javascript enabled to view it

 

 
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