Scott Dunn

Number portability has been a hot topic in the telecommunications industry for years. It is the ability for consumers and businesses to keep their phone numbers when switching from one service provider to another. This means that a customer can switch from one carrier to another without having to change their phone number.

In theory, number portability is a great idea. It promotes competition in the market, gives consumers and businesses more options, and improves customer satisfaction. However, the implementation of number portability has been hampered by the existence of Local Access Transport Areas (LATAs).

A Local Access Transport Area, or LATA, is a geographic region used in the United States to define the boundaries of local telephone service. LATAs were created in the 1980s as part of the breakup of the Bell System. The idea behind the creation of LATAs was to encourage competition among local telephone service providers.

Number portability was introduced in the United States in 1996. It was intended to give consumers and businesses more control over their telephone service. The Federal Communications Commission (FCC) mandated that all telephone service providers in the United States must allow customers to port their phone numbers to another service provider.

Since the implementation of number portability, LATAs have been a major obstacle. LATAs were designed to define the boundaries of local telephone service, and this has made it difficult for customers to switch service providers without changing their phone numbers. In the early years of number portability, many customers were unable to port their phone numbers because of the LATA restrictions.

The existence of LATAs has had a significant impact on the telecommunications industry. It has made it difficult for new service providers to enter the market, as they are limited by the geographic restrictions of LATAs. This has resulted in less competition in some areas, which has led to higher prices for consumers and businesses.

Currently, the FCC mandates that service providers must allow customers to port their phone numbers within the same LATA. However, there is no requirement for service providers to allow customers to port their phone numbers to a different LATA. This means that customers who live in one LATA, but want to switch to a service provider in a different LATA, must change their phone number.

In October of 2017 the FCC did begin working towards Nationwide Number Portability (NNP) but as with most governmental policy changes, it is slow going. In 2018, they removed some rules to being paving the way the way to NNP. Since then updates have been few and far in-between. The last public notice was a report in 2020 from the North American Numbering Council (NANC).

Case Study 1: European Union

In the European Union, number portability across borders has been in place since 2003, and it has been a success. The European Union eliminated geographical numbering plans, which means that numbers are no longer tied to a specific location. This has allowed customers to switch service providers easily and has promoted competition, resulting in lower prices and better service.

Case Study 2: United States - Minnesota

In the United States, the state of Minnesota implemented a pilot program in 2017 that eliminated LATAs in number portability. The pilot program was a success, and it resulted in lower prices for consumers and increased competition in the telecommunications industry. In addition, service providers were incentivized to offer better services in order to retain customers.

These case studies illustrate that eliminating LATAs in number portability can result in significant benefits for consumers and businesses. While there may be some challenges and trade-offs, the potential advantages are too significant to ignore.

Despite the challenges of implementing number portability across LATAs, there are compelling reasons to eliminate LATAs in number portability. The benefits to consumers and businesses in terms of improved competition and simplified processes outweigh the technical and financial challenges. While the loss of localized knowledge is a valid concern, service providers can still offer specialized services in a more competitive environment.

Eliminating LATAs would promote a more consumer-friendly telecommunications industry, with more options and lower prices. It would also encourage existing service providers to offer better services in order to retain customers. Ultimately, the decision to eliminate LATAs in number portability would require a comprehensive analysis of the costs and benefits, but the potential benefits make it an option worth considering.

The success stories of the European Union and the state of Minnesota provide several lessons for the US telecommunications industry:

1. Simplifying the number portability process can promote competition and benefit consumers.

In the European Union, eliminating geographical numbering plans and allowing number portability across borders has resulted in lower prices and better service for consumers. Similarly, in Minnesota, eliminating LATAs in number portability resulted in increased competition and lower prices. This suggests that simplifying the number portability process can promote competition and benefit consumers.

1. Incentivizing service providers can lead to better service.

In both the European Union and Minnesota, service providers were incentivized to offer better services in order to retain customers. This suggests that creating a competitive market can lead to improved service for customers.

1. A comprehensive analysis of costs and benefits is necessary before implementing changes.

While the European Union and Minnesota have been successful in eliminating geographical numbering plans and LATAs, respectively, it is important to note that a comprehensive analysis of costs and benefits was conducted before implementing these changes. This underscores the importance of careful consideration and analysis before making significant changes to the telecommunications industry.

The implications for the US telecommunications industry are clear: eliminating LATAs in number portability could result in significant benefits for consumers and businesses, including lower prices, increased competition, and better service. However, a comprehensive analysis of costs and benefits is necessary before implementing any changes. By carefully considering the lessons learned from successful cases, the US telecommunications industry can move towards a more consumer-friendly and competitive market.

Now we just need the FCC to finish up their red tape so that number management can be more flexible and brought in to the 21st century!