Subject: [NEXTEL-1] Number portability may spark wireless migration

From: [email-masked]
Date: Thu, 23 Oct 2003 15:13:35 -0400

http://biz.yahoo.com/rc/031023/telecoms_wireless_1.html
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Reuters

Number portability may spark wireless migration
Thursday October 23, 12:01 am ET

CHICAGO, Oct 23 (Reuters) - About one in five U.S. wireless
subscribers will change carriers in the next year after a new
rule goes into effect allowing them to keep their telephone
numbers when switching providers, according to a survey
released on Thursday.

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The survey also found that about 42 percent of consumers
are aware of the so-called number portability rule, more than
twice the 20 percent level industry observers have estimated.
The findings were detailed in a report by communications
consulting firm The Management Network Group (TMNG), which
conducted a survey of more than 1,000 respondents in
September.
"In general, I don't believe the industry is fully prepared
for what they will see," Rich Nespola, chief executive of TMNG,
told Reuters.
Starting on Nov. 24, wireless operators will be required to
allow customers to keep their phone numbers when changing
services. Number portability is expected to drive up customer
turnover and costs as it becomes easier for unhappy consumers
to switch carriers.
As the deadline nears, companies have been scrambling to
head off potential damage by making network improvements,
reevaluating customer service and stepping up their marketing.
Nextel Communications Inc. (NasdaqNM:NXTL - News), the No. 5 U.S.
wireless telephone company, recently announced several service
agreements with other operators to cooperate on providing
number portability. Verizon Wireless (NYSE:VZ - News; London:VOD.L - News), the largest
U.S. wireless telephone operator, has also been in the
forefront in supporting number portability.
TMNG expects 30 million customers to change wireless
service providers during the first 12 months after number
portability takes effect. Because each request for portability
must be processed by two wireless providers, the industry would
handle 60 million transactions during the first year, it said.
An earlier TMNG study found that about 24 percent of large
businesses -- the most likely segment to take advantage of
number portability -- are ready to switch services.
TMNG also found that low-end users, who are typically very
price conscious, and high-end users, who are most demanding of
high quality service, reported the highest awareness levels.
More men were aware of the new rule than women.

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