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The same number across all networks
Stefanie Khaw
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.
 Stefanie hopes that one day she can take her number across all countries too. You can contact her at
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