Businesses should mark their calendars for March 14, 2007, the day when wireless customers will finally be able to keep their cellphone numbers when they switch carriers.
Next year's introduction of portable wireless numbers means customers who are unhappy with their current service, but unwilling to part with their cellphone digits, will be free to move. And those who want to stay put could gain leverage when it comes to negotiating phone contracts with service providers, observers say.
"What number portability does is allow them to start with a clean sheet of paper rather than being constrained and saying, 'Well, I might like that but am I willing to go through the pain of a number change?' " said Mark Goldberg, of telecom consulting firm Mark H. Goldberg and Associates Inc.
The plan is to allow the transfer of numbers from wireless to wireless, along with wireless to land line. Bell Mobility Inc., Rogers Wireless Communications Inc., and Telus Corp. will start with portable numbers in British Columbia, Alberta, Ontario and Quebec in March, while the rest of the country will follow by September.
It's been a long time coming. Last year, Canada's federal telecommunications regulator set a date for number-portability implementation, moving forward the carriers' self-imposed deadline of September, 2007. In comparison, customers in the United States have been able to keep their wireless numbers since November, 2003.
In the short term, the change is expected to increase competition in the wireless market. That's because one important hurdle that has prevented some businesses from switching carriers will soon disappear. Until now, moving meant changing wireless numbers, forcing firms to replace their stationary and business cards. But no longer.
"Many small business owners rely on wireless as their main communications tool, especially the ones who spend most of the time working on customer sites," said Ted Mallett, economist for the Canadian Federation of Independent Businesses, which supports the adoption of portable numbers.
"We feel the number should belong to the customer," Mr. Mallett added. "There shouldn't have to be that barrier to moving services if you feel you're going to get better service with another provider."
Another potential opportunity for businesses is that the new rule will allow customers to cancel land lines and move those numbers to wireless, helping trim their monthly telecom bills, according to Brian Sharwood, a principal at telecom consultant SeaBoard Group. As an example, he pointed to a sales team that is constantly on the road with their wireless devices, while their office phones collect dust.
Even if a large business has no intention of cutting ties with its wireless carrier, it could use the option of portable numbers as a bargaining tool to gain better prices for wireless and other communications services it buys, such as long distance, Mr. Sharwood added.
For businesses that opt to switch, some changes are in store. They will probably need new cellphones, and may not get the same services. In addition, voicemail could be affected temporarily. And moving a cellphone number from one carrier to another is a complicated process that could take a few days, a Bell Mobility executive warned.
Of course, not all businesses will be in a position to change carriers right away. Those locked into multiyear contracts, for example, will likely be stuck with a hefty cancellation fee if they back out early.
Mr. Goldberg recommends that if businesses' wireless contracts are set to expire, they should wait before signing up again, and check out the deals that carriers bring to market in the months leading up to the introduction of portable numbers.
"I think we're going to see a lot of business customers go shopping," Mr. Goldberg said. "Whether they switch remains to be seen, and certainly will be a measure of how good the account teams are at addressing customer service concerns."
Wireless carriers and observers agree that portable numbers aren't everything, and that customer service will continue to play a key role in attracting and keeping clients. While wireless firms are preparing for an initial spike in customer turnover, they expect it to return to regular levels after a while.
In the United States, one in 10 consumer and business users who switch carriers take their number with them, according to Almis Ledas, vice-president of corporate development at Bell Mobility.
"The marketing proposition that says 'Come to Bell Mobility because you can port your number' isn't very compelling," Mr. Ledas said.
"If we eliminate all the reasons customers typically give for switching carriers, we'll be ready for that implementation," he added.
Rival Telus's strategy includes holding seminars and conducting pilots with clients. "In the business market, we're being very diligent in ensuring they have the right solutions, meeting with them, understanding what their needs are," said Jim Senko, vice-president of mobility solutions at Telus.
Making the switch
850,000
The volume of phone numbers expected to be moved to another carrier in the first year of wireless number portability, according to a PricewaterhouseCoopers LLP plan prepared last year.
16.8 MILLION
The number of wireless customers in Canada in 2006, according to the Canadian Wireless Telecommunications Association.
