THE CHALLENGE OF NUMBER PORTABILITY

In many countries customers of fixed and mobile telecommunication

services are still forced to change their number when they decide to
change provider or operator. A new number is a major inconvenience
for customers and a barrier for them to take advantage of growing
competition in the telecommunication markets. Most of the European
Member States are committed to the introduction of number
portability. The implications for operators are in several aspects
severe. Finding the best-suited solution to profit from number
portability requires more than a technical approach.
Raymond Bouwman & Leendert Koning

Number Portability (NP) allows required, powerful international

customers to retain their directory
number when changing service
provider or network operator. The
growing market for mobile
communication, next to and as a
substitute for fixed telephony,
increases the importance of NP over
time. Convergence between these
services and the future of third
generation mobile communications
(UMTS), with its enhanced (data)
service capabilities, will play an
increasing role in a customer’s
decision to change operator. Until
now, European regulators have not
imposed NP between for instance
fixed and mobile services (service
portability).
STATUS IN EUROPE
Liberalisation of all the sub-markets
in Europe, each with its own
regulatory barriers and time
planning, should eventually lead to
one open European market.
Reducing competitive barriers plays
a decisive role in establishing a
transparent and competitive market
place. In the telecommunications
market where fast investments are
players are keen on increasing their
market share and revenue stream.
For the liberalisation of markets, the
regulatory authorities only have a
limited number of instruments
available, of which NP is one. In
most European Union (EU) Member
States the target date for introduc-
tion of NP for fixed has been set to
Jan 1st, 2000. For instance the UK,
Germany and The Netherlands have
already introduced NP. Dutch law
obliges providers to port fixed,
digital mobile and non-geographic
numbers (service numbers) at
customers’ request. The legal
obligation to be able to port non-
geographic and fixed number blocks
became effective March 1st, 1998.
As of January 1st, 1999 NP was a
legal obligation for all fixed and
digital mobile numbers, but was
effected as of April 1st, 1999.
Although NP is a regulators’ dictate,
it nevertheless offers challenging
business opportunities for any
operator involved. Since it removes
a high barrier for customers to
change operator or provider,
operators and providers have to
focus on customer retention. By
emphasizing high quality customer component. The externally visible
contact and meaningful customer front-end of the resulting NP
loyalty programs, supported by well- solution should be firmly founded
structured administrative systems, throughout the internal organi-
operators and providers can sation.
effectively enhance their
An operator’s service portfolio (the
competitive advantage.
type and volume of services offered
in various market segments) will
largely determine the scale of the
IMPLICATIONS FOR OPERATORS
solution, which can vary from a
The EU regulatory framework for NP simple manual process to a
implementation leaves sufficient completely integrated system
room for national variations on the including the administrative, billing
technical, administrative and and network systems. Targeting the
organisational level. For NP to corporate business market or the
become accepted a seamless hand- low-end consumer market makes a
over between operators is required significant difference in prioritising
when a customer requests for his of NP.
number to be ported. Operators are
The existing service management,
forced to synchronize their
ranging from network and systems
respective service activation and
management, service operations, to
deactivation processes. These two
customer care processes, set the
issues set the scope for the various
boundaries of the implementation
national approaches.
plan for network and IT systems as
The areas that make up an integral well as the organisational rollout.
NP solution for an operator are
Interconnection and interconnect-
outlined below.
billing are highly impacted by NP.
Network routing is traditionally
National Inter- performed on the basis of large
external NP Approach connection number blocks. NP demands routing
of calls between national operators
internal NP solution to be performed on single numbers.
The chosen National Approach is
largely an externally determined
factor. The national approach is
Service Service determined by regulation and
Portfolio Management further filled-in by inter-operator
agreements, depending on the
Within the operator’s internal national situation. For individual
organisation two elements are the operators this could create
basis for the NP solution: the service additional freedom to shape their NP
portfolio and service management. solution. The approach chosen in
From an operator’s perspective the The Netherlands consists of a
National NP approach and Intercon- common inter-operator process and
nection contain a large external infrastructure, which has entirely
been set-up by the operators and are hampering the essential
providers. The Dutch regulation inter-operator co-operation.
authority has set the dates and
framework for the operators to
comply to. THE RABIÓN WAY OF ADDRESSING NP
The regulator’s intention with NP, Rabión is a telecommunications
combined with only a limited management consultancy firm,
number of other instruments to knowledgeable on business and
apply, emphasises the importance technology issues, innovative in its
of number portability for all approach and advice, highly skilled
individual operators. A company- and recognised for thought-
wide anticipation on impact and leadership and vision. Our focus and
challenges can make the difference capability is to combine a thorough
between gaining and losing business understanding with
customers as a result of number knowledge of leading-edge
portability. Countries where NP has information and telecommunications
already been introduced technology into innovative and
demonstrated a slow start, mainly powerful results.
due to:
Rabión has dealt with both fixed and
• Start-up problems in
mobile number portability and
implementing a technical
gained experience in the incumbent
solution built and integrated by
and new entrants market.
multiple operators.
Management consultants from
• Complexity of the inter-operator Rabión have been involved in
process, where a variety of defining and implementing NP
issues may arise: from solutions for various operators.
procedural to legal aspects and
Based on an operator’s business
from error handling to customer
strategy and objectives, Rabión
contact agreements.
offers its management consultancy
• New entrants already have services in strategy, definition, and
considerable lists of issues and implementation.
priorities. Number portability in
Selecting the best approach for
all its complexity is only one of
number portability requires
the factors they need to manage.
strategic matching between an
• The mobile market attracted new operator’s overall strategy and
customers in new unexplored business objectives. Crafting a
market segments and its solution based on a clear
unexpected autonomous growth commercial challenge will prove to
lowered the pressure on be more effective than treating NP
introducing NP as a means of as a mere technicality. Dutch new-
gaining additional market share. entrants’ strategic positioning
required a valid and fair, cost-based
• Incumbent operators fear the
inter-operator tariff per executed
loss of customers and as a result
porting request. Having researched
EU regulation and Member State
 The service practices that
Rabión offers in the field of NP
are:
STRATEGY
• Opportunity Analysis and
Business Modelling for NP
operation
best practices, a comprehensive • NP Cost Price Modelling.
cost price model has been
developed, taking into account the DEFINITION
various forecasts for (autonomous) • Definition study for NP implemen-
market developments. tation
• Impact Analysis and Feasibility
In a definition phase Rabión resolves
Study
how to apply information and tele-
• NP Service Description
communications technology for
• Management of specification
realising the strategic outcomes.
process.
Rabión performs desired impact
analyses and feasibility studies, IMPLEMENTATION
architectural designs, and manage- • Solution, Systems and Vendor
ment of specification processes. and can be contacted at
For an operator’s implementation office@rabion.com.
process, we can provide program
and project management, in order
to ensure an integral approach of
number portability for the various
departments. Examples are the
representation of a leading mobile
operator in a national NP
committee, management of an
operator’s NP certification for the
common national solution in The
Netherlands, and the functional
validation of NP impacts and
solutions in billing, customer care
and inter-operator business
processes.
Rabión is the professional partner to
turn number portability from a
directive dictated by regulatory
authorities into an opportunity that
will be well managed to fit into your
organisation and to bring benefit to
your business goals. We believe this
to be the true challenge number
portability holds for our customers.
______________

The authors Raymond L.M. Bouwman

and
Leendert P.F. Koning are both
consultants with Rabión Consultancy