Telecom subscribers to wait longer for number portability service

Samuel Ufitinema, a businessman in Kigali, was excited at the prospect of being able to switch from one telecom service provider to another without changing his phone number. However, the service, known as mobile number portability, which was expected to be rolled out after the country had achieved a 60 per cent mobile phone penetration rate is yet to materialise, about four years since the introduction of the service was suspended. In February 2011, the Rwanda Utilities Regulatory Authority (Rura) postponed the introduction of mobile number portability “until a minimum consolidated penetration rate of at least 60 per cent of the population is achieved,” information on Rura website indicates. Number portability allows a mobile phone subscriber to switch telecom service providers (at a small fee) without him or her changing their number or SIM card. Therefore, through number portability, subscribers can use one SIM card; say for Tigo, to register numbers of a different telecom firm like Airtel or MTN, on that very card. However, subscribers like Ufitinema who have been forced to buy different handsets to cater for the different SIM cards, will have to wait a little bit longer for the service. This is despite the fact that there are more than 7.6 million Rwandans with mobile phones presently or a 73 per cent penetration rate, according to October statistics from Rura. The country surpassed the 60 per cent target set by the sector regulator in January, recording 64.3 per cent penetration rate. However, the country will have to be a little patient to benefit from the service, with Rura saying it is still carrying out some studies to see its feasibility. So, did Rura conduct studies on the service in 2011 when they postponed implementation of number portability and set the 60 per cent penetration level as the target before approving it? Rura speaks out Jean Baptiste Mutabazi, the head of communication regulation at Rura, told Business Times in an interview that they hired a consultant last year to study the feasibility of the project and what it would cost a subscriber to port. He added the consultant submitted the study report to Rura last month, saying they are currently discussing it with policy-makers and industry stakeholders. “The consultant has been doing a cost-benefit analysis and we are now looking at the final report that was submitted in November,” he said. Mutabazi said though Rura now has an idea on how number portability can be implemented, there was need to discuss at the policy level on the costs involved. “There is infrastructure investment involved in a centralised system which will allow people to port and the cost of porting as a customer,” he explained. He added they would, analyse whether it is a profitable venture or not. Number portability in other countries Otherwise, compared to other African countries where the service has been implemented, only Ghana, Egypt and South Africa registered some sort of success and the initiative is struggling in Kenya and Nigeria. Ghana’s mobile number portability scheme was launched in 2011 and had 363,000 customers porting in the first year of the scheme. On the other hand, Nigeria in its first year had only 115,000 customers porting, a figure which contrasts that of Ghana given Nigeria’s much larger user base. And in Kenya, the Communications Commission of Kenya, having launched the service three months before Ghana did, ported 36,224 customers when the service was started. The country with a subscriber base of over 30 million people, as of the end of this year’s had registered only 1,388 people. Mutabazi said in countries where there are strong telecom companies that offer customers a wide range of services, mobile number portability is not doing well. “If a client leaves the telecom for another network, they will feel like they are losing some advantage or benefits,” he said. If mobile number portability is introduced in Rwanda, sector experts predict mixed fortunes for the three sector players; MTN, Airtel and Tigo. What sector players say According Rura figures for October, MTN commands 50 per cent of the market share; Tigo has 36 per cent and Airtel 14 per cent. “We expect it to improve competition in the industry to an extent because currently there are people who are stuck to use one network because of fear of losing their numbers,” said Mutabazi. But telecom operators seem skeptical about the benefits of number portability. “I don’t think it will benefit the country since this is a small country with few mobile phone subscribers,” said Paul Mugemangago, the MTN Rwanda senior manager on legal and corporate affairs. He said the porting costs would be unnecessarily expensive for subscribers since most already have more than one handset. He said if introduced in Rwanda, it would not attract many subscribers, noting that the service has received lukewarm reception in big economies like Kenya. Mobile phone users speak out Jackie Tibiwa Ahmed Farishta Jackie Tibiwa, accountant If the service comes at a lower cost compared to having multiple SIM cards, then I would go for it. My only worry is that the cost of using the service might even be higher compared to one with different handsets. Ahmed Farishta, businessman If I get to understand the system well, there would be no problem. My only problem is that people may just want to take advantage of the open market and introduce a lot of products that do not benefit subscribers. Changes also come with consequences; we need to be updated about the costs and so many other things. Sandrine Rugema Frank Katuhaire Sandrine Rugema, student I understand that service could be costly. On top of that, there may be charges on their products. I know a similar system has been introduced in other countries, but customers still complain about networks jamming. Frank Katuhaire, student Sending money across networks is still costly. A SIM card that allows you to interplay between networks helps you reduce time and as well promote efficient money transfer. Marcel Sendanyoye Marcel Sendanyoye, teacher All changes come with costs and, in an environment where every service provider wants to make money from customers, it may not be good. We are already conversant with the multiple handsets and SIM cards. Besides, some phones accommodate more than one SIM card. (Photos and vox pop by Solomon Asaba)

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Telecom subscribers to wait longer for number portability service