Happy customers in a free market: key benefits of number portability
Jan Mooijman
CEO at PXSNumber portability allows customers to keep their phone number when switching telecom operators, saving them the hassle of a new phone number. That’s not just convenient—retaining your number is vital for SMS-based two-factor authentication. But there’s a lot more to number portability (NP) than customer benefits. When implemented well, it revolutionizes the national telecom industry. We'll give you the three key benefits of number portability, and explain how to get everyone onboard.
1. Number portability drives liberalization
Introducing number portability disrupts the monopoly of one operator, paving the way for telecom liberalization. With number portability, customers no longer have to fear losing their number when switching operators. They get freedom of choice. That fact alone will drive competition between operators, a crucial element for a healthy business climate.
2. Number portability offers better chances for new entrants
With the telecom market more or less fixed, new players will have a hard time convincing customers to switch – even if they offer a better deal. Ultimately, leaving your current operator means losing a phone number you might have had for years. Number portability makes it easier for new operators to enter the market. It offers them a better chance to thrive, especially when their services are superior to the established operators.
3. Improved prices, services and network coverage
When one operator dominates the telecom market, there’s hardly a need to innovate. After all, customers have no other options. With the introduction of number portability, operators are forced to differentiate and offer a competitive deal. If they don’t, their customer walks.
Operators distinguish themselves by either reducing prices, providing better customer service, or simply improving their products. To attract customers, they are also stimulated to expand and improve network coverage. All this results in a competitive market, benefiting the customer.
How to get everyone onboard with number portability
With effective regulations in place, operators are obligated to implement a system for number portability. Smaller operators will be motivated and eager to get going, considering the obvious benefits.
It’s typically harder to convince those operators that already dominate the market, because number portability could impact their strong foothold. To get them on board, demonstrate clearly how a modern number portability platform is cost-effective, and that it can be implemented fast. If the process is highly customized and overly complex, expensive or inefficient, it will inevitably lead to more push-back. Providing a standardized solution based on industry best practices is the key to success.
Last but not least, make sure to get the word out to consumers, by showing them the clear benefits of number portability through an awareness campaign. With operators and end users on-board, you will ensure a strong foundation for number portability.
All successful implementations of number portability are based on a number of proven, international best practices. Download our free whitepaper to explore these best practices and use them for your benefit.
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