Kenyans will in the next two weeks be able to switch to any network without having to change their mobile number, which opens a new battle front for Kenyan telcos.
Mobile number portability (MNP), scheduled to start on 1 April, will allow subscribers to move to their preferred operator, while keeping their mobile number - a factor that has until now helped operators lock-in subscribers.
Industry insiders say the necessary groundwork for the launch is running behind schedule and some operators are not ready. The requisite 10-day trial period has yet to begin, and the billing system has not been finalised. However, the Communications Commission of Kenya (CCK) says all is set for the 1 April launch.
"According to the latest signed reports of the technical meetings, all operators are ready to commence testing their MNP systems this week," said CCK in a statement.
Number portability comes after Kenya's second largest operator, Airtel, this year slashed its rates, prompting a bruising price war. The average rate per user has fallen from Sh425.8 ($5) in 2007, to Sh362 ($4.20) early this year.
The commission had initially set 1 July 2005 as the implementation date for MNP, but the regulator, in consultation with operators, pushed out the implementation several times, with 31 December 2010 being the latest deadline that was not met. However, several operators at that time said they were not technically ready, so the 1 April date was agreed.
The regulator, through benchmark studies, had identified number portability as one of the necessary interventions to further enhance a competitive environment, especially in a market with dominant players.
"SPNP [service provider number portability] enhances competition in a multi-operator environment by giving consumers the flexibility to choose their preferred service provider," said the commission in a statement.
The new regulations mean subscribers will now be able to switch networks without worrying about losing contacts. However, customers will have to pay a Sh173 ($2) porting fee, plus VAT, to make the move, and wait for two days for operators to make the necessary technical changes. Some operators have indicated they may absorb the cost, removing any barrier to subscribers who want to switch.
Subscribers will be required to inform their current and new operators of their intention to switch, and also trade in their SIM card for a new one from the new service provider.
Smaller and younger telcos, such as Telkom Kenya Orange and Yu, have been pushing for MNP in the hope that, once subscribers are free to migrate without losing contacts, it would add to their customer base.
Airtel is, meanwhile, angling to take another chunk of market dominant Safaricom's customers, after adding two million customers in January by reducing tariff charges.
Safaricom, the leading mobile operator by subscriber base and mother company of M-Pesa, still hopes to retain customers through value-added services.
Apart from money transfer services, operators are looking at access to 3G networks and data packets that will hold subscribers, since these services are specific to the operator and not shared.
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