With number portability number brand niche disappears

 The battle for subscribers of telecom networks has begun with the number portability recently introduced by the Nigerian Communications Commission (NCC). Prior to this period, the competition among the telecom operators was centred on call tariff to create brand loyalty.

The current competition has become more interesting, especially as the different networks can no longer hold forte to their number range – such as 0809, 0802, 0805 or 0803, etc., following the new regime.

Mobile number portability (MNP) has been identified by analysts as a service that can deepen competition in the telecoms sector. “With the increased reliance on mobile phones, subscriber numbers have become their identity and can easily swap SIMs and still retain the same number.”

With the launch of the service, subscribers will no longer have to acquire new numbers to move to other networks. The power and freedom of choice rests with the subscriber. If a customer is dissatisfied with the service on a particular network, he or she can ‘port’ to another network, Eugene Juwah, executive director, NCC, told the press recently.

With number portability, analysts foresee a mass migration of subscribers to networks with better quality of service. In view of this, network operators are preparing to strengthen the capacity of their networks in order to obviate mass exodus of subscribers to other networks.

According to Renaissance Capital, a money management and institutional finance firm, as of third quarter of 2012, MTN Nigeria still dominates the market with 42.5 percent market-share followed by Airtel 20.7 percent market-share, Globacom with 19.7 percent, while Etisalat 13.4 percent market-share.

“With the launch of the service, subscribers will no longer have to acquire new numbers to move to other networks. The power and freedom of choice rests with the subscriber. If a customer is dissatisfied with the service on a particular network, he or she can ‘port’ to another network. Telecoms subscribers will no longer have to cram mobile numbers and change business cards,” he explained.

Also in a report, Josephine Amuwa, chairman of the implementation committee, said, in furtherance of the NCC’s mandate as spelt out by the Communications Act 2003, the telecoms regulator had considered it expedient to introduce the scheme into the market to deepen competition, improve quality of service, and widen the distribution of services.

“The advent of number portability in Nigeria will do away with the phenomenon of ‘lock-in’ which is a principal obstacle to consumer choice. There will be intense struggle for market-share among operators now,” according to Amuwa.

The legal, regulatory and operational framework for mobile number portability began with the publication of the mobile number portability consultation paper in 2010, further Amuwa said, adding that the consultation paper outlined all the key strategies for porting in Nigeria.

Amuwa pointed out that the number portability scheme would be implemented in phases, as “first, the scheme would start with GSM operators and the next phases will take care of fixed operators. “The Commission with the collaboration of the operators has been working diligently to endure that this change is seamless, safe and secure, and pleasurable to the consumer.”

DANIEL OBI

Media Business Editor