GNP 'has had no real impact'

The Independent Communications Authority of SA (ICASA) has postponed the implementation of the geographic number portability (GNP) process for individual customers, delaying the impact the move could have on the market.

The second phase of GNP - the ability of individual fixed-line customers to switch from one operator to another without losing their numbers - will now be implemented by the end of April, according to Telkom's senior specialist for media relations, Ajith Bridgraj. He adds that ICASA has suggested 26 April, specifically.

The first phase became effective from 18 May 2009, according to ICASA. This phase included corporate customers with blocks of 1 000 and 10 000 numbers and more.

“In terms of the regulations, porting of individual customers was to take place within 10 months following the implementation of the first phase,” says ICASA. This means implementation of the second phase was supposed to be on 18 March.

“...after the authority consulted with operators (Telkom and Neotel) regarding the readiness on the second phase, it was agreed that, due to unforeseen technical challenges, it may not be possible to launch the second phase of this process on 18 March 2010,” says ICASA.

The Number Portability Company, of which Neotel and Telkom are to become shareholders, is handling the porting of individual numbers. General manager Clive Fagan says the delays are not due to the non-availability of software or any real problems, but just because of fine-tuning.

Bridgraj explains that the postponement was due to reasons beyond the control of the operators.

“It is grossly unfair practice for ICASA to let the IECNS [individual electronic communications network service] licensees wait for equal rights and services. It either shows their incompetency or blatant support/backup for the incumbents,” says O-Tel CEO Mohammad Patel.

He adds that, the longer ICASA takes, the longer the consumer is at a disadvantage. ICASA was formed to protect the interests of the consumer and Patel questions whether it is really protecting the interests of the consumer, or that of the incumbents.

Vox also wants reassurance from Telkom for customers that it will not drag its feet to delay the process.

“We have a lot of customers that want to port away from Telkom so we don't want any delays. We hope that Telkom is ready, because we are ready and it is critical we ensure customers are finally given an alternative with no barriers to implementation,” says Vox Telecom CEO Tony van Marken.

He also calls on ICASA to ensure there are no further delays.

IECNS providers have complained that the first phase of GNP has not made much of a difference.

“The reality is that the first phase of GNP has had no real impact. Most businesses do not have consecutive 1 000 number blocks. Although single number portability enables individual residential customers to now have a choice, the real opportunity is in the corporate sector where companies have hundreds of fixed-line numbers and are paying exorbitant fees to Telkom,” says Van Marken.

Patel echoes these sentiments. “ICASA is just too slow. Although the last 10 months has enabled us to firmly root ourselves a strong foundation, it was simply not enough, as much of the leads created by expensive marketing campaigns fell flat when IECNS licensees, providing a full digital telephony solution, could not migrate the client's telephone number onto their digital platforms.”

He adds that hybrid makeshift solutions did not always work too well. He believes that with this number portability issue resolved, providers will be able to offer the client a full digital telephony service experience. For this reason, Van Marken describes the delay as “extremely frustrating”.

Fagan says GNP encourages competition and allows other smaller operators a chance to take business without clients having to change their numbers, which they find a huge inconvenience. He explains that people don't want to change their numbers, because of the Yellow Pages and other lists their businesses may appear on.

With this in mind, Vox sees the implementation of GNP as a significant step in levelling the playing field for all the new ECNS operators in the South African market.

Vox claims this increased competition could reduce tariff costs to a far greater benefit than “the highly publicised issue of lower mobile interconnection fees”.

“A lot of consumers and businesses are exasperated by bad service and high prices, and they will finally have real choice in which carrier they want to use. They will be able to take advantage of cheaper prices and in these economic times, that's crucial,” says Van Marken.

Vox also believes GNP will have a massive take-up compared to the muted response to mobile number porting. “The cellular players offer similar fees and services to their rivals, making it barely worth switching networks. But the cost and quality of landline services varies significantly between rival players, so customers have much to gain by switching networks,” says the company.

Patel adds that there are also some misconceptions that will be avoided with GNP. “With the public misconception (from the days when Telkom used 087 numbers for paid adult lines) that 087 numbers are premium numbers, which cost R2 per minute, many callers are reluctant to call them. Little do they know that the cost to call these VOIP provider allocated numbers costs the same as calling a Telkom landline. The number also confuses overseas callers as 087 is not a recognised geographical number.”