Press release: Mobile Number Portability (MNP) has failed in most markets

January 2007 - In an effort to enhance competition and improve customer satisfaction, telecoms regulators in many countries worldwide have already introduced mobile number portability (MNP), but flawed implementation has led to very low take-up according to a new report, Mobile Number Portability: strategies for operators and regulators.

“By enabling customers to keep their mobile numbers when they change networks, MNP is a fundamental prerequisite of open competition and choice”, according to Dr Mark Heath, co-author of the report. “However, regulators and operators need to make substantial improvements to current MNP solutions if they want them to be of any significant benefit.”

Key findings of the report include:

• MNP has been in place for several years in many countries, yet despite the high level of churn in the mobile industry there are few examples where more than 10% of mobile numbers have been ported
• Many MNP solutions have significant barriers to customer take-up, such as high charges for porting a number, long delays before porting takes place, limitations to data services after number porting, and sheer lack of awareness that MNP is available
• Contrary to popular belief, MNP does not necessarily increase long-term churn or cause price competition. MNP can be a major benefit to mobile operators if implemented well and some have achieved significant market share growth by embracing it.

“One of the biggest barriers to MNP is that customers do not realise it is available”, according to co-author Alastair Brydon. “Even with the best technical solutions and processes in place, if regulators and operators do not publicise it then it will fail.”

 The new report evaluates the impact of MNP on the mobile industry so far, for example in terms of churn and pricing. It demonstrates that the full benefits of MNP come only when it is implemented effectively and taken up by a substantial proportion of churning customers. Using a variety of case studies to illustrate best practice, the report defines the actions that regulators must take to achieve success with MNP, and the actions that mobile operators can take in order to fully benefit from MNP.