Wireless number portability desired by majority of Canadians, new survey shows

Canadians have expressed significant support for the introduction of local number portability (LNP) by the country's wireless operators, a recent survey shows. Conducted by Decima Research Inc. for Report on Wireless, the survey indicates that two-thirds of Canadians who own and use a cell phone believe the country's wireless operators should be required to provide wireless local number portability to their subscribers. Commonly known as wireless LNP, it would enable mobile wireless subscribers to maintain the same cell phone number if they switch to a rival provider.With 66.6 per cent of respondents wanting the service, the research could be the spark some carriers may be looking for to reopen discussions on the issue. The CRTC closed the books on the issue three years ago when it denied an application by Microcell Telecommunications Inc. requesting mandated LNP for wireless service providers (WSPs). In the September 1999 decision, the commission ruled that the Montreal-based WSP failed to provide any valid reasons to reopen the debate (RoW, Sept. 20/99, Jan. 18/99 and Dec. 14/98).Opponents to mandated wireless LNP were satisfied with the commission's ruling by saying they didn't believe the service was necessary to drive competition in the market. Without tracking data, it's difficult to understand what the mood of the public was three or four years ago, but it is clear now that there is an appetite for the service.The greatest support comes from the youngest portion of the Canadian adult population, with more than two-thirds (66.9 per cent) of the 18-24 age group indicating that cell phone companies should be required to provide number portability. For the 25-34 age group, where support is the highest, 70.1 per cent express support for wireless LNP.It is widely accepted that younger adults are more technologically savvy, which may suggest that this segment of the population better understands the benefits of wireless LNP than those in the older age groups. However, support from the 35-44 and 45-54 age groups is only slightly lower than the interest from the younger portion of the population. Support for the service drops off for those older than 55 (62.6 per cent).As is the case for the younger segment of the population, people with higher incomes generally support the introduction of wireless LNP. While 69 per cent of those in the $40,000 to $60,000 income group want the service, support jumps to the 70 per cent range for those with annual incomes higher than $80,000. Nearly three-quarters (74.4 per cent) of those in the $80,000 to $100,000 income group and 71.2 per cent of those with incomes higher than $100,000 indicate that cell phone companies should be required to provide number portability.Similarly, as the household size increases so does the support for wireless LNP. Households with more than four members express interest at a 68 per cent level, while 64.4 per cent of single-member households want the service. This may suggest that there is a correlation between annual incomes and the size of the household.While there is significant support for the service, the lack of wireless LNP doesn't appear to be a big factor in preventing people from switching to another provider. Slightly more than 35 per cent indicate that wireless LNP is either a great factor (17.8 per cent) or a big factor (17.4 per cent) in their choice of switching. Nearly two-thirds of respondents (63.1) indicate, however, that the current lack of number portability is not a big factor (21.2 per cent) or not a factor at all (41.9 per cent).As is the case for the younger segment of the population supporting the introduction of the service, it is also more likely to take wireless LNP into account when switching carriers. Conversely, the older the person, the less likely wireless LNP is a factor in preventing carrier churn. The same holds true when factoring in income levels. As the income increases, the more likely number portability is a factor. For those that don't believe wireless LNP is a factor, lower income earners rank the highest.It should also be noted that those who don't believe the availability of wireless LNP makes a difference in switching to another provider make up a significant portion of the sample group. As a total, 35.4 per cent of respondents believe that the availability of wireless LNP does not have an impact on their decision to switch.While wireless LNP has been put to bed in Canada, at least for the time being, the issue was a major point of contention for mobile wireless operators south of the border. The large national wireless operators opposed the implementation of wireless LNP saying it would cost too much money, while the ensuing benefits wouldn't cover the cost to upgrade networks. Small regional carriers want the service because they say they will be able to better compete against the larger players.Until this summer, wireless carriers had until November 2002 to make LNP available. But facing stiff opposition from the wireless carrier community and a Verizon Communications application to abandon the issue altogether, the Federal Communications Commission extended the implementation deadline by one year (RoW Update, Jan. 28/02 and RoW, April 3/02). Wireless carriers now have until November 24, 2003 to implement the service.Opposition to any movement on this front may be backed by a recent U.S. survey, which indicated wireless carrier churn rates could be driven to 36 per cent if wireless LNP was introduced (RoW, Sept. 3/02). The research notes that in the first year of wireless LNP implementation there could be more than 22 million churning subscribers in the U.S.The Canadian research was collected through the Decima Express, a national omnibus survey conducted monthly by Decima Research. It was completed between September 13 and September 22. Results of the survey are based on a sub-sample size of 918 Canadians who own and use a cell phone. The results for a survey of this size can expect to provide results accurate to within +/- 3.2%, 19 times out of 20.For more information on the survey or to purchase an executive summary and/or the full research data, please contact Publisher Mario Mota at (613) 230-1984 or mmota@decima.ca.

Wireless number portability desired by majority of Canadians, new survey shows

News | October 15, 2002

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