ENSURING TELECOMMUNICATIONS SUCCESS AROUND THE WORLD
Number Portability August 4, 2009 Session 10 Kosovo Telecommunications Regulatory Authority Training (August 3-14, 2009) Telecommunications Management Group, Inc.
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Overview • What is number portability? • Number portability development – World – European Union – “Enlargement Countries”
• Number portability implementation
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Number Portability • Right of a telephone subscriber to keep their number when changing service provider • Applies to both fixed and mobile • “Number portability is a key facilitator of consumer choice and effective competition” [European Commission]
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Directive 2002/22/EC 7 March 2002 Article 30: Number portability 1. Member States shall ensure that all subscribers of publicly available telephone services, including mobile services, who so request can retain their number(s) independently of the undertaking providing the service: (a) in the case of geographic numbers, at a specific location; and (b) in the case of non-geographic numbers, at any location. This paragraph does not apply to the porting of numbers between networks providing services at a fixed location and mobile networks. August 4, 2009
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Directive 2002/22/EC 7 March 2002 Article 30: Number portability (cont’d) 2. National regulatory authorities shall ensure that pricing for interconnection related to the provision of number portability is cost oriented and that direct charges to subscribers, if any, do not act as a disincentive for the use of these facilities. 3. National regulatory authorities shall not impose retail tariffs for the porting of numbers in a manner that would distort competition, such as by setting specific or common retail tariffs.
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Mobile Number Portability in the World Number of countries with mobile number portability 50 48 40
43 38
30 26
20
28
19 10 0
1
1
4
6
10
14
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Sep08 August 4, 2009
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Mobile Number Portability in EU • Mobile ported numbers have increased during the past period (October 2007-October 2008) (+14.1million) and as of October 2008 almost 60.7 million subscribers have ported their number since the introduction of this possibility. • Since MNP was introduced in the EU, 10.3% of mobile subscribers have ported their numbers. • Finland has the highest percentage of ported numbers over the total of mobile subscribers (68.7%) followed by Denmark (40.0%) and then Spain (35.5%). Source: European Commission
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10%
0%
30% 68.7%
60%
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29.2%
5.2% 24.6% 19.8% 1.7% 3.0% 5.5% 10.0% 1.9% 11.8% 13.8% 3.8% 0.6% 1.5% 5.8% 0.4%
70%
50%
Source: European Commission
August 4, 2009
35.5%
40.0%
40%
1.4% 7.4% 5.9%
21.1% 3.2%
20%
BE CZ DK DE EE EL ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE
Percentage of mobile ported numbers over total mobile subscribers, October 2008
80%
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Status of MNP in Enlargement Countries Country
Launch
Note
Croatia
Oct.06
72,200 numbers ported (3/09); 1.2% of total mobile numbers
Macedonia
Sep.08
1,897 numbers ported (3/09); 0.04% of total mobile numbers
Turkey
Nov.08
Around 1.2 million numbers ported; around 2% of total mobile numbers
Albania
Not implemented Planned 2009
Bosnia
Not implemented Planned 2009
Montenegro
Not implemented Legal basis in Law on Electronic Communication
Serbia
Not implemented No legal basis
Kosovo
Not implemented No legal basis
Source: Adapted from Cullen.
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Kosovo mobile market Source: TMG, Inc.
• Lowest penetration among enlargement candidates • New competitor entered market in December 2007
Vala 65%
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Kosovo mobile market share 2008
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Source: Telekom Slovenije.
Ipko 35%
MNP in countries with population < 2.5 million Country
Launch
Population. 000s*
Iceland
Oct-04
320.5
Malta
Apr-06
412.6
Luxembourg
Feb-05
491.7
Cyprus
Jul-04
801.6
Estonia
Jan-05
1 340.3
Macedonia
Sep-08
2 048.9
Slovenia
Jan-06
2 053.4
Latvia
Jun-06
2 261.1
* 2008, Source: EUROSTAT. August 4, 2009
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Fixed Number Portability in EU • As of October 2008, almost 24 million subscribers in 23 Member States have ported their number since the introduction of this possibility (more than 6.5 million from October 2007 and October 2008). • According to the data for 23 Member States, the EU weighted average price as of October 2008 for a fixed number ported is € 6.7. In Estonia, Lithuania, and Germany there is no charge for the porting of fixed numbers. Source: European Commission August 4, 2009
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Status of FNP in Enlargement Countries Country
Launch
Note
Croatia
Jul.05
285,700 numbers ported at March 1, 2009
Macedonia
Sep.08
7,051 numbers ported at March 1, 2009
Turkey
May 09
Albania
Not implemented Planned 2009
Bosnia
Not implemented Planned 2009
Montenegro
Not implemented Legal basis in Law on Electronic Communication
Serbia
Not implemented No legal basis
Kosovo
Not implemented Legal basis in Telecom Law
Source: Adapted from Cullen.
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Implementation process • • • •
Public consultation Number Portability regulation Establish NP implementation group Create database
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NP implementation in Brazil Sep. 2006: Public Consultation â&#x20AC;&#x153;734â&#x20AC;? March 2007: Resolution 460, General Regulation on Portability April 2007: Portability Implementation Group created Sep. 2008: NP starts in some regions March 2009: NP available in all of Brazil
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Implementation issues: Routing & database Indirect routing
Direct routing
Database
Distributed (donor network only keeps track of its own ported numbers)
Distributed (QOR) or Central (ACQ)
Mobile termination issues
Likely since call must be rerouted from original network
Unlikely
Signaling
Minimized, but more traffic for the donor network since ported numbers must be forwarded
With Query on Request (QOR), some signaling because rejected calls must be checked With All Call Query (ACQ), more signaling because all calls have to be verified
Billing
More complicated
Less complicated
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Costs • Main argument against NP • How to allocate costs among various stakeholders: – Regulator – Operators – Consumers
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Cost allocation in New Zealand â&#x20AC;&#x153;Per-operator set-up costs are not driven by porting customers and will be incurred irrespective of whether customers port their numbers. Rather, these costs are part of the investment that any operator needs to incur in order to provide telecommunications services in a competitive market.â&#x20AC;? Commerce Commission of New Zealand
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Cost category
Cost bearer
Industry common system costs
Each operator according to market share
Per-operator setup costs
Each operator
Per-line set-up costs
Recipient network pays donor network
Call conveyance costs
Originating network
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Implementation issues: Other • • • • •
Pre-paid Numbering Tariff transparency Fixed<->Mobile User awareness
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Conclusions • The principal argument against number portability is the implementation cost – Who does a mobile number belong to? – In hindsight, NP forms part of costs of competitive mobile market
• Ideal implementation: – – – – –
recipient network driven central database with neutral administration direct routing short port times low or no direct costs for the user
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ENSURING TELECOMMUNICATIONS SUCCESS AROUND THE WORLD
Thank you! Mr. Michael Minges Senior Market Analyst minges@tmgtelecom.com Telecommunications Management Group, Inc. 1600 Wilson Boulevard, Suite 710 Arlington, VA 22209 USA Tel: + 1.703.224.1501 Fax: + 1.703 224.1511 www.tmgtelecom.com 21