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Summary

Ofcom’s objectives for number portability

1.1 Number portability is the facility that makes it possible for consumers to retain their telephone number(s) when they change provider. This has been available in the UK for several years, but UK arrangements no longer match international best practice. Ofcom believes it is time to make important changes to promote competition and to protect consumers from deficiencies in the way calls are routed.

1.2 At present, consumers who port their number to a new network rely, indefinitely, on their original network to forward incoming calls to them. If the original network fails (commercially or technically), consumers will no longer be able to receive calls on their ported numbers. Ofcom considers that this situation is unacceptable, and believe calls to ported numbers must be routed directly to the consumer’s new provider, as happens in most of Europe. This can be done if UK industry co-operates to develop a shared database which holds details of all ported numbers. Ofcom has concluded that migration to Next Generation Networks (“NGN”) technology offers an opportunity to do this cost effectively.

1.3 Ofcom is also of the view that the present five day process for porting mobile numbers is too slow and complicated. It is inconvenient for consumers and may also deter providers of mobile services from recommending to new customers that they should bring their old number with them. The existing process may therefore discourage consumers from exercising choice and therefore from promoting competition.

1.4 Ofcom’s objective is a consumer friendly process that allows consumers to port numbers quickly and simply. Ofcom is therefore proposing that industry moves to a near-instant recipient led process which allow consumers to go into a mobile phone shop and walk out with a new phone connected to a new provider with the number ported. Ofcom recognises that this new process will require changes to current systems and is consulting on whether this can be achieved in a cost effective way. In the meantime, following Ofcom’s consultation in November 2006, we are requiring that the current process is completed in two working days.

1.5 We also believe that it is essential that processes for porting mobile numbers adequately protect consumers from mis-selling, and we believe that a new near-instant process for porting mobile numbers can be designed to provide necessary protection.

Background

1.6 Ofcom’s consultation entitled Review of General condition 18 – Number Portability, published by Ofcom in November 2006 (the November 2006 Consultation), consulted on proposals to change the existing arrangements including the introduction of a central database (“CDB”) for the routing of calls to ported numbers and a reduction in mobile porting lead times. Ofcom has concluded, in light of responses to the November 2006 Consultation, that a central database is required in order to allow robust direct routing for fixed and mobile calls to ported numbers, thereby resolving the problems caused by failed networks. In relation to mobile porting lead times, Ofcom has concluded that they should be reduced to a maximum period of two working days.

1.7 Ofcom received a number of responses to the November 2006 Consultation. Some of those responses have indicated further issues that need to be considered in relation to both the establishment of a central database and the potential for a further reduction of mobile porting lead times. In light of those issues, Ofcom is publishing a further consultation on proposals for the implementation of a common database and the introduction of near-instant recipient led porting of mobile numbers, which are set out at paragraph 1.25 and section 7 below.

1.8 Ofcom’s preferred option involves the establishment of a common database capable of supporting Direct Routing of calls to ported numbers by 31 December 2008. Mobile operators would be required to implement Direct Routing and a recipient led process with a maximum port lead time of 2 hours with effect from 1 September 2009 and fixed operators would be required to implement Direct Routing by 31 December 2012. Ofcom considers that this option would deliver immediate benefits for consumers as well as providing industry with certainty in the implementation process. Ofcom’s view is that the introduction of Direct Routing and near-instant recipient led mobile porting will ensure the greatest protection of consumers and that switching processes are fast and effective.

The November 2006 Consultation

1.9 In the November 2006 Consultation Ofcom considered the need for change to the UK system of number portability, including ways to improve the present arrangements for porting numbers by (i) making the technical arrangements for delivering all calls to ported numbers more robust and (ii) accelerating the porting process for mobile customers.

Robustness of arrangements for delivering calls to ported numbers

1.10 Under the current arrangements, continued delivery of calls to ported numbers is reliant on the provider, known as the Donor Provider, to which the consumer originally subscribed. If that Donor Provider ceases to be able to onward route calls (whether due to insolvency or technical failure) former subscribers who had ported their numbers to other suppliers will no longer be able to receive calls (and existing subscribers will be unable to port their number to a new provider). This happened when Atlantic Telecom failed in 2001.

1.11 The November 2006 Consultation reviewed possible improvements to the present system in the context of the development of NGNs, in particular the use of a common database which holds information about ported numbers and the network to which they are presently connected. The database allows direct routing of calls to ported numbers. The system is widely known as All Calls Query/ Common Database (“ACQ/CDB”).

1.12 Ofcom consulted on five options which might apply, variously, to mobile and/or fixed numbers.

Time taken to port mobile numbers

1.13 The November 2006 Consultation also set out Ofcom’s view that the shorter the length of time taken to effect porting the better it is for competition and consumers. Ofcom noted that excessively long porting lead times may discourage consumers from switching or delay them from commencing service on better terms with a new provider. Currently it takes 5 working days to port a mobile number between providers. The November 2006 Consultation proposed that mobile porting lead times should be reduced to a period of less than one working day (unless there was evidence that the costs outweighed the benefits). Two other options were set out in the November 2006 Consultation.

Responses to the November 2006 Consultation and Ofcom’s further analysis of the issues of number portability

Robustness of arrangements for delivering calls to ported numbers

1.14 Ofcom received 23 responses to the November 2006 Consultation. Most respondents agreed in principle that a common database solution has merit, and most of those agreed with Ofcom’s view that a solution common to both fixed and mobile providers would be the best approach. Three respondents disagreed that consideration should be given to a database solution now, and questioned whether there was need for Ofcom to intervene.

1.15 Views on the form and timing that Ofcom’s intervention should take were, however, more varied. Many respondents indicated that intervention at this stage could be premature and some were sceptical that the transition milestones proposed by Ofcom could be met. Two respondents favoured intervention by Ofcom now to set deadlines for rapid implementation of a database solution.

Time taken to port mobile numbers

1.16 Around half of those who responded to the November 2006 Consultation also made substantive comments on this proposal. Most agreed that a reduction to less than one day could be achieved, but commented that such a change, if implemented in isolation, would require substantial process re-engineering, and be time-consuming and expensive to implement. Most noted that, in practice, a porting lead time of less than one working day would be dependent on access to a common database.

1.17 By contrast, many respondents accepted that a reduction in mobile porting lead times to two or three working days could be achieved swiftly and with minimal change to existing processes.

Ofcom’s further analysis

1.18 In addition to the views presented by respondents, Ofcom has also undertaken detailed further analysis of number portability both with respect to the UK system and its international comparators.

Ofcom’s conclusions on the November 2006 Consultation

1.19 For the reasons set out in section 7 below, Ofcom has concluded that providers of fixed and/or mobile services should be required to implement and populate a common central database which will hold details of each ported number and the provider which currently provides services on that number. This database will enable calls to be routed directly to ported numbers without reliance on the network to which the number was originally allocated.

1.20 Ofcom has also concluded that mobile porting lead times should be reduced to two working days by 31 March 2008. The Notification making the consequent changes to General Condition 18 to require a shortening of porting lead times is attached at Annex 7.

The purpose of this document

1.21 In response to the November 2006 Consultation, concerns were raised from operators that, in setting up a common database and requiring its use for direct routing of calls to ported numbers, Ofcom must be careful not to be prescriptive in relation to the setting of deadlines. Respondents considered that overly prescriptive or staggered deadlines could lead to undesired consequences both in the establishment of the database itself and in investment decisions related to the establishment of Next Generation Networks (“NGNs”).

1.22 A respondent has also indicated that, in the course of the adoption of a common database, mobile porting processes will be required to undergo substantial change and, as a result, it would be possible to introduce near-instant mobile porting at relatively low incremental cost. That respondent indicated that it considered that, in order to achieve this solution, the process would also need to ensure that it was recipient led meaning that consumers would only need to contact a new provider when switching and would no longer need to obtain a porting authorisation code (“PAC”) from their former provider.

1.23 In light of the concerns expressed by respondents to the November 2006 Consultation, Ofcom has decided to issue a further consultation on these issues.

Issues for further consultation

1.24 Ofcom recognises that many providers (fixed and mobile) have recommended that Ofcom should not impose deadlines for achieving Direct Routing until progress in implementing a common database has been assessed, and the nature of the database and the means of interacting with it are more clearly understood. Ofcom recognises that a two stage process of intervention would delay delivery of benefits for consumers but would welcome comments from stakeholders on its approach.

1.25 Ofcom has also considered the possibility that in the course of implementation of ACQ/CDB, near-instant porting of mobile numbers could be implemented much more efficiently than otherwise, with Providers interacting with the database to process the port without requiring the subscriber also to contact his former provider (except to the extent necessary to terminate any contract). Ofcom has estimated the additional cost of enabling same day porting of mobile numbers through the use of a common database to be in the region of £5million for the industry as a whole if the database is designed from the outset to offer such functionality and, to a large extent, porting processes can be automated.

1.26 Ofcom’s provisional view is that the incremental costs of moving to near-instant porting are outweighed by the following benefits.

• Some consumers who may not otherwise switch, will now switch,
• It is likely that more consumers will port their number if a swift, simple process is available for the porting of numbers, and this in itself is a consumer benefit.
• Post-pay consumers who port will not need to pay the costs of two contracts while their number is ported.
• Industry wide savings due to process automation are likely to be of the order of £3 million per year.

1.27 Ofcom further considers that a recipient led process will remove the disincentive to promote porting (which arises from the threat which a donor led process may be considered to pose to recipient networks whose prospective new customers may be persuaded not to switch). Ofcom has therefore reached a preliminary view that industry should be required to implement the common database in a way which accommodates near-instant, recipient led porting of mobile numbers.

1.28 Ofcom is therefore providing stakeholders with a further opportunity to comment on proposed deadlines together with new interim milestones for deploying full ACQ/CDB to deliver Direct Routing and to further reduce mobile porting lead times. Ofcom has set out three options as follows;

• Option A. Require industry to collaborate on design and construction of a common database, capable of supporting Direct Routing of calls to fixed and mobile ported numbers. This database to be implemented and populated by 31 December 2008. Require mobile providers to implement ACQ/CDB to achieve Direct Routing of mobile to mobile calls by 1 September 2009. Require mobile providers also to offer near-instant recipient led porting by 1 September 2009. Require ACQ/CDB to be used to Direct-Route all other calls to ported numbers (including to and from fixed providers) by 31 December 2012.
• Option B. Require fixed and mobile operators to implement and populate a common database as per Option A. However deadlines for implementing Direct Routing of all calls to ported numbers and near-instant, recipient led porting of mobile numbers to be set following a further consultation in 2008 taking account of further developments resulting from the detailed definition of the common database.
• Option C. Require industry to collaborate on design and construction of a common database, capable of supporting Direct Routing of calls to fixed and mobile ported numbers without requiring mobile providers to offer near-instant recipient-led porting. Implementation deadlines for ACQ/CDB to achieve Direct Routing to be set either as proposed in Option A or in Option B.

1.29 Ofcom’s preferred option is Option A, on the basis of its provisional view that this would deliver the most immediate benefits for consumers as well as delivering certainty about what Ofcom expects the industry to do in the next year. Ofcom recognises, however, that there may be certain risks associated with this approach. On balance, Ofcom currently considers that the setting of deadlines is appropriate in order to ensure that industry moves forward in making the necessary investment and changes to internal systems and processes to achieve maximum consumer benefits from the porting system at the earliest opportunity. Ofcom will welcome stakeholders’ further views and comments on the balance of risks and benefits presented by the options set out in this consultation document.

1.30 In elaborating these proposals, Ofcom has taken full account of consumer protection issues. Ofcom recognises concerns that a move to recipient led porting could lead to concerns over mis-selling and slamming which have not, to date, been widely apparent in the mobile sector. Ofcom is aware that one reason for the relatively low level of mis-selling and slamming (compared with fixed services) is that switching mobile providers requires a positive act on the part of the consumer (who will therefore be aware that something about their service is changing) by either having to switch SIM cards or starting to use a new mobile handset. In the event that recipient led porting were adopted therefore, Ofcom would expect industry to take all reasonable steps to ensure that accelerated processes for porting mobile numbers continue to protect consumers from the risk of mis-selling and slamming.

1.31 Draft Notifications which would implement one or other of the options set out at paragraph 1.24 above are attached at Annex 8.

Next steps

1.32 As set out in Ofcom's guide to its consultation process , Ofcom will generally allow 10 weeks for consultations on complicated policy issues. In the present case, Ofcom does not consider it appropriate to allow a full 10 weeks for consultation. Ofcom considers that a number of the key issues have already been subject to consultation in the November 2006 Consultation and that certain of the additional matters on which Ofcom is consulting in this document are technical issues of implementation only. Ofcom is therefore shortening the consultation period and invites comments on these proposals by 10 September 2007.

The full document is available below:

• Arrangements for porting phone numbers when customers switch supplier [pdf]
  Full print version revised with corrections 17 August 2007

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