Volume XXIX Issue 9 October 23, 2003

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  Number portability expected to make wireless industry more competitive
Sarah Wobbecke - Reporter

Beginning Nov. 4, wireless customers, such as sophomore Katie Hilliard, will be able to keep the same phone number when switching carriers.

Jeff Heyer/Photo Editor

The cell phone industry will have to make a change next month that should make it easier for consumers to find the best deal: Local Number Portability

LNP will allow customers to keep their numbers when switching companies. The rule will apply to customers switching from one cell phone company to another, as well customers going from a landline to a wireless line.

LNP is not without restrictions, however. Customers will not be able to keep their current number if they open a wireless account in a different area than where their current number is assigned. This means that a person living in Ohio cannot move to California, go from a landline to a wireless and keep the same number. Also, the geographical area where a landline number is assigned must be in an area where a wireless company currently provides service.

Any number assigned to an area outside the 100 largest markets may not be eligible to be transferred. On Nov. 24, the 100 largest telephone markets will have LNP. More remote areas will not be eligible until May 2004. The Burlington area is a part of the Greensboro area, which is considered a major market.

LNP will likely make for a more competitive wireless industry. Being able to change providers without the hassle of switching phone numbers makes switching more appealing. Companies in turn are going to have to come up with ways to retain existing customers and entice others to switch to them.

"This is going to cause more price wars, minute wars, whatever you want to call it. It’s great for the customers but terrible for the wireless companies," said Patrick Comack, analyst for Guzman & Co. Guzman & Co. is an investment banking firm and is located in Gables, Fla.

LNP is not a new idea. It's actually been around for years. In the past, the Federal Communications Commission, under the direction of Congress, has tried to implement LNP, but it has been postponed three times.

It is estimated that 6 percent (about nine million) of all wireless users will switch service in the first 24 hours that LNP is available. The largest scenario of change is going to go from wired lines to wireless service.

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