The Cost of Number PortabilityLNP goes live, but how much are you paying? ( old news - 01:21PM Wednesday Nov 26 2003) tags: prices · wirelessNumber Portability arrives in the 100 largest U.S. markets, though public interest so far has been luke-warm. Meanwhile there's little accountability surrounding how much is being charged for the honor. The majority of the nation's retailers claim they didn't notice an increase in business this week as local number portability (the ability to transfer your mobile number between services) went live. Analysts predicted tens of millions of migrations during the initial several months of the LNP push, but according to Wireless data farm Mobile Competency, fewer than 100,000 people attempted number migration on Monday, with a 40% failure rate among those tried. There were several concerns leading up to the launch. Bells (those without wireless divisions, anyway) logically complained there should be reverse number portability from cell to home phone. Many carriers argued that they weren't ready. Environmentalists, almost un-noticed underneath the dull roar of profit and convenience chatter, argued that the idea would likely result in land-fills brimming with cell-phones users could no longer use. More interesting though is the methodology used to determine the hikes customers would see on their monthly bills. Data suggests that carriers have taken the opportunity as an excuse to pad their coffers, with the FCC really paying little attention. While it took years for the rules to arrive, consumers have actually been paying for the number portability switch for some time. According to a recent study by the Center for Public Integrity, users in the U.S. have shelled out $629 million in related fees since January of 2002. It's a complicated process and certainly shouldn't be without cost, but what's interesting is how these fees are being calculated. Carriers performed their own in-house estimates as to how much the service would cost to implement. These estimates are not required to be made public, and according to the CPI, the FCC has absolutely no system in place to confirm the calculations are even accurate. The estimates vary significantly across the board, with smaller carriers often projecting higher costs, despite the majority of carriers using the same software and hardware to complete the upgrades. Estimates show that companies like Nextel will likely have collected some $283 million in fees before they provided a single user with the service. Nextel's own numbers indicate the deployment of LNP will only cost the company $100 million. Speaking to the CPI, Consumer's Union attorney Chris Murray says there is "zero accountability," adding that "There's no way for consumers to know. Forget about trusting the carriers to be honest in their accounting for what these line items cost, we don't even get [an accounting] consumers have no information whatsoever about what the costs of these mandates are."The remainder of the $629 million in fees are for number pooling, enhanced 911 and digital wiretap requirements (providers charge fees to cover the cost of adhering to the Communications Assistance for Law Enforcement Act, which forces carriers to have their networks "wiretap ready"). Verizon Wireless was one of the only carriers not to charge LNP fees pre-launch (they've been charging for number pooling only). According to Verizon Wireless, they've estimated the cost of implementing local number portability to be around $60 million - one of the lowest estimates among providers. This week the company announced they'd be tacking on a 40 cent per month fee for all of its 36 million wireless subscribers. That brings the total in costs and fees to $173 million a year for Verizon Wireless subscribers (not including any new customers that will be signing up for a service), when their own estimates indicate LNP should cost $60 million to implement. At the moment, T-mobile is the only major carrier not charging a monthly fee for the service. The fees for the service from most providers range from five cents to $1.75 per month. Related:- Verizon's New Wireless Pricing Is An Insult
- Cricket Unveils New Voice, Data Plans
- Verizon To Double Smartphone ETFs?
- Verizon Offers New Prepaid Wireless Broadband Plans
- Virgin Expands 'Broadband2Go' Availability
- Wireless Industry Pricing Plans Confuse Economists, Too
- Time Warner Dallas Customers Get WiMax December 1
- In-Flight Internet Headed For Bumpy Landing?
|
  aSic application specific Premium join:2001-05-17 Wakulla, FL clubs:
| Paying? I've been paying 0.50 per month for the last year... and the last two months it hasnt appeared. Eitehr my LNP fee has been buried even further in something else, or maybe they aint making me pay for it anymore. *shrugs* -- Teamwork is a lot of people doing what I say. | irc.fj33r.com #dslr | Starband and DirecWay Certified Installer - Starband SRS GE4 C4/S69 | |
|  CrazyJr
join:2003-02-27 Oakland, CA
| Lucky me I got T-mobile. I find it interesting how much these companies are raping the public.
Speaking to the CPI, Consumer's Union attorney Chris Murray says there is "zero accountability," adding that "There's no way for consumers to know. Forget about trusting the carriers to be honest in their accounting for what these line items cost, we don't even get [an accounting] consumers have no information whatsoever about what the costs of these mandates are." | |
|  |   dvd536 as Mr. Pink as they come Premium join:2001-04-27 Phoenix, AZ | Re: Lucky me Cell phones are all about raping the customer. i dont think theres any company with a decent plan(with decent service!) -- You can never be too rich, too thin or have too much Bandwidth | |
|   Rally1
join:2000-06-12 Irvine, CA | portable 2 phones on Sprint, $2.20 a month for a long time. As soon as my new T-Mobile phones come in from Amazon, I will be attempting the switch. | |
|   outspoken72 An Irish Jayhawk Premium join:2000-10-03
| why would you switch.... Why would you switch mid-contract? So you can pay a early termination fee of 150-300 dollars? Most of us have already been paying for LNP on out local land lines, for years, why should the wireless industry be any different? -- "The grass may be greener on the other side, but you sill have to mow it." | |
|  wentlanc You Can't Fix Dumb..
join:2003-07-30 Maineville, OH | If I don't use it, can I opt out? I don't care if I have to change my number. So can I be excluded from the charge?? I'm sure that I can't. So basically, I'm paying for it whether I use it or not.
puritan | |
|  |   djrobx
join:2000-05-31 Valencia, CA | Re: If I don't use it, can I opt out? I don't want it either, people who do want it should pay for it. I'd prefer to pay less and deal with giving people my new number.
-- Rob -- \\ROB - a part of the SCB local network | |
|   Drex Beer..It's What's For Dinner Premium join:2000-02-24 La Place, LA
·AT&T Southeast
| Charge you...then charge you some more What I'm concerned about is if you WANT to bring your number with you and the company instates a "fee" for actually performing the switch.
Like if I'm a new customer and I don't want my old number, they just charge me X dollars. But if I want my old number, they tack on an additional one time fee to bring the number over.
If that's the case, then why have I been paying that stupid charge since Jan '02? -- Death!! Death by OOGA BOOGA!! | |
|   cyberthugin
join:2002-03-12 Kew Gardens, NY
| I want my 50 Cents
I think that these wireless companies are already too greedy to charge you an additional $.50 per month becuase the law says customers should be allowed to keep their numbers. But in the long run I see it as a win-win situation since you can leave your provider for better service than to keep paying XXX of dollars for lousy and expensive service in order to keep that same number which you gave out to hundreds of people. -- www.alltechneeds.com "Your Everyday Hosting Needs" | |
|  |   AkumalDave Life's A Beach Premium,MVM join:2001-04-20 Minneapolis, MN
| As an aside, The first carrier attempting to turn this into a promotional advantage is T-Mobile. Saw an ad last night that bragged; "You can keep your number AND get the service you deserve" (or somesuch marketing-speak).
I have no opinion either way on T-Mobile, but you gotta give them points for turning this "burden" into a "feature".
Dave -- "...enjoy every sandwich..." Warren Zevon 1947-2003 | |
|  |  |  |  |   ifarrell
join:2000-08-10 Willow Spring, NC
·Vonage
| Re: As an aside, T-Mobile, they're not even in North Carolina. There Coverage sucks unless you stay in one area or close to a heavily used Interstate. Maybe in two or three years but right now, I stick with Sprint. 2000 anytime minutes. Unlimited PCS to PCS. Shared plan on two phones. $85 p.m. Can't beat that. | |
|  |  |  |  biobob
join:2003-09-04 Bayside, NY | Re: As an aside, I like sprints plans, but despise their phones. I really like some of the Nokia, Sony-Ericisson, and Motorola phones, but you can't get them with sprint. I really wish Sprint would bring a more diverese phone selection. | |
|  ParanoiaInc
join:2002-08-28 Tucker, GA | More land-line going to mobile. I think we'll wind up seeing more people terminating their land-lines to migrate those land-line phone numbers to mobile sources than inter-mobile carrier migrations. | |
|   CygnetBoy
join:2001-12-18 Tucker, GA
| Whatever the end result, there is money to be made Well, here we are again at another juncture in communications law. Here we have a regulatory boost to the cell phone market. The cell companies say they don't need a regulatory boost. What they don't need is us dropping from their accounts receivable, more like it. This can only benefit the entire market, because, we finally don't have to change stationary, business cards, or call everyone we know (as many of us have) when changing phone companies. New numbers generate hundreds of millions, as anyone who has ever gone through an "overlay" of a new area code. It ain't cheap. At least I'll feel better telling Verizon wireless, "Can you hear me now?" when I call another company and change, that's coming up when the REAL sales war hits, sometime around Christmas this year. Any thoughts. | |
|   number1melon Premium join:2003-01-17 Fort Lauderdale, FL
| Worth it. Here's what I say: I love the idea of LNP. I am sure it will come in handy for me many times. I am willing to pay 1.10 a month to have that ability, even if they do charge me another fee for actualy switching. Granted, the money is probably not going where it is supposed to, but I think that it is worth it, and I don't mind paying to have that capibility. -- "I'll strip you down, shove you in a trash can, light you on fire, and roll you down the street. | |
|  |  wentlanc You Can't Fix Dumb..
join:2003-07-30 Maineville, OH | Re: Worth it. And is it worth it to me to pay for a service that I will not ever use? Isn't it wrong to make someone pay for something that they are not actively using? How about charging me $.50 a month IF I do switch. Not just in case I do.
puritan | |
|  |  |   number1melon Premium join:2003-01-17 Fort Lauderdale, FL | Re: Worth it. Well, then you can find a company that does not charge the fee. No one is making you be their customer. -- "I'll strip you down, shove you in a trash can, light you on fire, and roll you down the street. | |
|   Dragasoni We're All Mad Here Premium join:2001-12-14 Rotonda West, FL
| Slight change in topic... I don't know about all of you, but I have seen some good come out this in the form of better rate plans. I have Alltel wireless and a local Florida plan that includes the whole state as my local calling area.
I was able to go from 700 peak minutes to 1000 peak minutes and cut my bill down 5 bucks a month! I now have 1000 peak minutes, unlimited mobile to mobile, unlimted text messages (send and receive) unlimited nights and weekends for $39.95 a month!
I was paying 45.95 for the same thing, only with 700 peak minutes before Nov 24th.
I know I paid for it in the past, but now I'm seeing a return on my part. What do you think about that?
-Dragasoni- | |
|  |   dvd536 as Mr. Pink as they come Premium join:2001-04-27 Phoenix, AZ
| Re: Slight change in topic... said by Dragasoni : unlimted text messages (send and receive)
Is that the same 'unlimited' as (if you read the fine print at bottom of their ad) includes 200 text messages per month, overages billed at 15 cents send per message and 10 cents per receive. or am i thinking of another company -- You can never be too rich, too thin or have too much Bandwidth | |
|  |  |   Dragasoni We're All Mad Here Premium join:2001-12-14 Rotonda West, FL | Re: Slight change in topic... No, I can send 10,000 text messages if I want too. It's free, no fine print.
-Dragasoni- | |
|   WildGod God Is Dead Premium join:2002-01-30 NYC
| Could be that people are still under contract Like me a number of people are still under contract and dont want to shell out the $175 to switch carriers just yet. How many cell phone users contacts were up this week? Give this thing a chance. I for one LOVE the idea. I have had the same number for so long and would hate to have to change it. -- TOOL-"I will find a center in you. I will chew it up and leave, I will work to elevate you just enough to bring you down"-Sober---"UGLY AMERICAN" & PROUD OF IT | |
|   RoguePimp
join:2001-01-31 Phoenix, AZ
·Cox HSI
| Damn Fees I have been paying $1.75 for each of the three lines I have with AT&T. $5.25 a month for the past year. The damn Bastards cut my service off one day before my contract expired. Now my numbers are gone and they are not able to be transferred to a new carrier. So what was I paying them for? We should only have paid a fee if we switched our numbers, we should not have to pay for "Projected" costs of switching in the future. | |
|  |   MexiCubAZ
join:2000-06-09 Phoenix, AZ clubs:
| Re: Damn Fees With all the damn taxes and fees I am paying comes to almost 20% of my service bill of $113.00
Taxes Federal Tax 3.34 Surcharges & Fees Federal Universal Service Fund 2.40 Phoenix City Sales Tax - Services & Usage 4.94 Maricopa County Sales Tax - Services & Usage 0.74 Arizona State Sales Tax - Services & Usage 5.88 Federal E911 0.80 Federal Wireless Number Pooling And Portability 2.20 Arizona State Special Fee 0.02 Arizona State Wireless 911 Surcharge 0.74 $21.06 -- Join the DSL Reports SETI@Home Team! | |
|  |  mjcrocket Mjc
join:2000-12-02 Abingdon, MD
| said by RoguePimp : The damn Bastards cut my service off one day before my contract expired.
Why was your service cut off before your contract expired? About the only reason I know of for service to be cut off is failure to pay the bill in full each month. Is it possible that your contract had some type of restriction or requirement for you to take action concerning your continued service prior to the end of the contract?
I have several cell phones, each with their own contract but all with the same carrier. About the only time I actually renew a contract is to take advantage of special promotions or pricing that are available only by renewing the contract. Otherwise the service and the existing contract continue without any break in service.
Sorry, but if your service was cut off I can not help but think it was for cause! | |
|  |  |   RoguePimp
join:2001-01-31 Phoenix, AZ
·Cox HSI
| Re: Damn Fees It was not for cause! I called several weeks prior to work out an extension. Afer 6 years of loyal service, they would not grant me a credit for some new phones. I asked when me contract expired and the last billing date of my bill. It was to END on a MONDAY with the last day of service being a SUNDAY! They killed it FRIDAY At Midnight! This was from their service rep. It was not becasue I chose not to pay a bill. they gave me the dat on two different occasions so i don;t buy it that one rep gave it to me wrong either. | |
|  djrobsd
join:2002-01-24 San Diego, CA
| Taxes suck My local phone bill through SBC has $7.00 in taxes added on to it, plus another 69 cents for some 3% federal tax. This is just getting too far out of hand:
Federal Subscriber Line Chart - $4.49 *WHAT IS THIS FOR?* Number Portability $.34 911 $.12 CA HIGH COST FUND A?? $.11 CA HIGH COST FUND B?? $1.47????!! FOR WHAT?!? Universal Lifeline Charge $.65 (I'm paying 65 cents so someone else can get their phone line for half price!!) Rate Surcharge .71(CREDIT) State Regulatory fee $.06 CA Relay Service and Communications Devices Fund $.03 (okay I'm cool with that, so the deaf people can use the phone too) Federal UNIVERSAL SERVICE FEE???? $.44
And then my Sprint bill:
Monthly Service $33.99 Roaming Charge $1.00 (Sprint is a fraud, your phone can go in roam in the middle of the city and it costs you 50 cents a minute) TAXES AND FEES $4.78
California 911 - .24 California Universal Lifeline Service - .37 **WHY DO I PAY THIS TWICE????? Once on my land line and once on my cell??** California Relay Service - .01 California High Cost Fund - .84 California Excise Tax - .06 Federal Tax - 1.04 Califonia PUC Tax - .03 Federal Universal Service Fund - .69 Federal E911 - .40 Federal Wireless Number Pooling and Portability - 1.10
Lovely. | |
|  |  youngmoore
join:2001-03-16 Marietta, GA
·Sprint Mobile Broa..
| Re: Taxes suck "Roaming Charge $1.00 (Sprint is a fraud, your phone can go in roam in the middle of the city and it costs you 50 cents a minute)" RTFM and turn OFF roaming on your phone so you ONLY stay on the sprint network.
"California Universal Lifeline Service - .37 **WHY DO I PAY THIS TWICE????? Once on my land line and once on my cell??"
Its a different phone,number and carrier. Thats why you pay twice.
ym | |
|  |  |  MWR2NY
join:2002-02-06 Edgewood, MD | Re: Taxes suck Here's Cingular in Maryland
Federal Universal Service Fund .79 Regulatory Cost Recovery Fee .62 Federal Excise Tax .94 State Sales tax 1.57 911 County Fee .50 911 State Fee .25 | |
|  gregpurcell
join:2003-12-05 Ellabell, GA
| Call from home phone to cell now long distance! Thanks Number Portability! It's now a long distance call from my home phone to my cell or my pager and my numbers STILL AREN'T PORTABLE!!
Here's an email I recently wrote to the FCC. (Like it will do any good)
Sirs: I am writng to point out some serious problems with your new "number portability" rules which I believe hurt more people than they help..
I am a freelance writer living in Ellabell, Georgia. This is a small town in Bryan County, about 30 miles west of Savannah.
My wife is disabled and we live on a limited income. I bought her a cell phone to use in case she had problems on the road. I selected a phone number that would be a local call from our home, because the majority of call activity would be home to cell and vice versa. I often call her to check on her progress if she is out alone.
Last week when I called my wife, I was connected to a recording indicating that my cell phone number was a long distance call. I called the local phone company to ask if there was a mistake, and I was told that "The FCC last week mandated that all cell phone numbers in our area be 10 digit", meaning that my cell would now have to be dialed as long distance and charged to my home phone. They went on to inform me that this was part of the new "Number Portability Changes". It affected all cell phones, pagers, and even some internet access lines in our area.
I immediately contacted my cell provider and asked about my options. It turned out that there were none. SUPPOSEDLY, according to your mass media campaign, I should be able to get my home phone number on a cell phone. I asked about that idea. If my home number was transferred to my cell and I got a new landline with the same exchange, the problem would be solved. They explained that the "SMALL PRINT" of your great new plan limited the "number portability" to the top 100 markets for the first six months (My rural setting was not included) AND that "all numbers would not be included in the ruling" (meaning that my home phone number would probably never qualify to be used on a cell)
You have been touting this new change as the most wonderful thing to happen to communication since the invention of the phone! Keep your phone number when you change cell plans! Get your home phone number on a cell phone! Blah blah blah! As a writer, I understand spin, and you have sold the public (there's no politically correct way to put it) "a load of crap."
As a consumer, I do not enjoy the advertised advantages of "number portability" and I now have to incur a long distance call every time I call a cell phone or pager. I'm sure that somewhere there are wealthy businesses benefiting greatly from the new system. As usual, the little guy bears that burden with higher costs.
It would be nice if this lettter made a difference, however past experience makes me very skeptical. The cell phone representative indicated that you "had been working on this plan for about 10 years" and that I "should not expect any results" if I contacted you.
I plan to mail my senators and representatives and perhaps the news media, but in the end I have no choice but to pay a high price for something that I used to get for free. My numbers aren't "portable" but my limited income is certainly getting carried away!
Thank you for taking the time to adress my concerns.
Sincerely,
Greg Purcell | |
|  | |  |
|
|