Jamaica has finally launched number portability, but once the initial excitement dies down, what might be the real impact of number portability?<\/em>
\nAfter a highly protracted conceptualisation and implementation process, local number portability (for both the fixed-line and mobile\/cellular services) was finally launched in Jamaica last week Monday, 22 June. \u00a0In the days that followed, both of the country\u2019s major telecoms carriers, Digicel and LIME, have been boasting about the numbers of persons who have switched to the other\u2019s network. In light of all of this excitement, and once the dust begins to settle, what might be the real impact of number portability in Jamaica?<\/p>\n
In most Caribbean countries that have successfully implemented NP (see our most recent Snapshot<\/a><\/em><\/strong> to learn which others in addition to Jamaica have NP), the providers have been required bear the considerable costs associated with that activation. Further, the provider with the largest customer base \u2013 who arguably had the most to lose from NP \u2013frequently was reluctant to participate in the process, and would have been a key contributor to the delays experienced.<\/p>\n
Jamaica\u2019s experience was no different from other countries, where the main providers of fixed-line and mobile cellular services, at one point or another, were the cause of delays in the process. Currently, and with number portability now in effect, both Digicel and LIME are offering a broad range of inducements for customers to switch:<\/p>\n
As of the end of first week of NP, and as reflected in this week\u2019s news roundup<\/a>, both Digicel and LIME are claiming success in new customers who are switching from another provider.<\/p>\n
After the euphoria ends and the dust has settled, we will then begin to see the true value (if any) of number portability in Jamaica. In the interim, a few observations are shared.<\/p>\n
First, with the launch of NP in Jamaica, both Digicel and LIME has implemented short-term promotions to encourage customers to switch. Accordingly, the customers who switch to access the free offers may not necessarily be loyal to their new provider, and after 90 days (when they can switch again), they may even switch back to their previous provider. As a result, once those promotions end, and the status quo is established, customers switching networks could be minimal.<\/p>\n
Second, Jamaica currently has only two telecoms carriers \u2013 Digicel and LIME \u2013 which effectively is a duopoly. Both parties have been sparring with each other over the course of 15 years, and to varying degrees, their pricing and product offerings are similar. Hence once the novelty of NP wears off and the promotions end, again switching between providers is expected to be minimal.<\/p>\n
Finally, in a country \u2013 similar to many others across the region \u2013 where customers had two or more handsets in order to capitalise on the cheaper on on-network calls and benefits, NP in Jamaica will have an impact on this scenario. Essentially, with NP in effect, a phone number will no longer identify the network, and the premise to have two phones increasingly will become moot. However, providers may see an increase in off-network traffic, and a corresponding increase in revenue from off-net calls.<\/p>\n
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Image credit: \u00a0hddod<\/a>\/flickr<\/em><\/p>\n