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CNN Saturday Morning News

FCC Wants Cell Phone Companies to Provide Number Portability

Aired July 20, 2002 - 07:50   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: I don't know about you but I'm on about my fifth cell phone number now. You know, your cell phone is portable but whenever you get a new phone, you get a new number. Right now, it's not possible to take your digits with you if you switch carriers.

This week, however, the FCC has given a reprieve to cell phone companies, extending their deadline to provide you number portability by a full year. And, joining us with more on this is CNN's Renay San Miguel who looks at matters of a technological nature for us. Renay, what's the big hold up on this, I want my digits.

RENAY SAN MIGUEL, CNN CORRESPONDENT: You want your digits. Well, a lot of people do because they're shopping around for better rates with other companies and a million people have your cell phone number. Family, friends, and a lot of business contacts that you have. So, back in 1996, the FCC said that wireless carriers needed to allow for cell phone number portability, but then the three-year deadline passed and the big major -- the major wireless companies asked for an extension, they were granted it.

And, it was supposed to be in on November 24 of this year, that you should be able to take your cell phone numbers with you, but this week the FCC granted yet another extension from some of the major carriers. Actually, Verizon Wireless, Miles, wanted to actually eliminate this mandate all together. They say that the need for this is no longer there; this was supposed to help enhance competition. But they claim that competition is already out there and the rates are coming down, but the FCC said we will give you one more year and one more year only.

So, on November 24 of 2003, then if you're looking to switch wireless carriers, you should be able to take your phone number with you, but you're going to have to wait another year for that.

O'BRIEN: Why do I have the sneaking suspicion consumer service is not at the root of their desire, here. They're trying to block this for what reason?

SAN MIGUEL: They are trying to block it because they say that it's going to cost too high. There's a shocker. Now it's $1 billion the industry claims it's going to take to get this in the first year of portability and then half a billion each year after that.

O'BRIEN: Well, what's the cost? What's the cost?

SAN MIGUEL: The cost is because of the new technologies. All these different wireless carriers have their own cellular networks, and then they have their own proprietary technologies that run their networks. So, they're working on these new technologies. They're also working on other technologies -- they're taking up some of their time and money as well and they've been arguing against this since 1996.

O'BRIEN: Interesting. Put them right tin the category with the cable companies on their quality of service. Let's talk about why people would want this. Is there a tremendous demand for this?

SAN MIGUEL: It's getting to be more and more that more folks are relying on their cell phones and they want to be -- you know, for many people it's their landline now. This is what they use; they've gotten rid of their traditional phone.

O'BRIEN: Who needs them?

SAN MIGUEL: Yeah, exactly. But, Harris Interactive, this spring, did do a poll saying that 56 percent of those who were polled would consider it important or extremely important to be able to keep their cell phone and 17 percent said they would switch carriers if they could keep their cell number. So, more and more people are out there -- by the way, there's 137 million cell phone customers out there right now. One-third, it's estimated by the industry, about one-third of them switch carriers every year.

O'BRIEN: You know, and one final point. It would be really nice if they had a directory of cell phone listings, don't you think? I mean -- is that something that's being discussed at all?

SAN MIGUEL: Not at all; not really that much. It's more along the lines of can we get these technologies going in the first place.

O'BRIEN: Once you get a number assigned to you, maybe somebody could build a database.

SAN MIGUEL: Yeah, exactly. And you would think it would be just an issue of software, but they're still talking about the technologies. You should be able to go to the web site of your wireless service provider and check and see if they're giving any discounts if you'll accept a new -- there is a silver lining on this -- a lot of phone companies are saying if you accept a new number maybe we'll throw in a free phone, or maybe we'll cut down on the rates, or extend the contracts or whatever.

So, try to use this to your advantage. Get real aggressive about it if you're out there looking. You know, if you can't take your cell phone with you, make them give you something else in return.

O'BRIEN: All right, the read the fine print.

SAN MIGUEL: Always.

O'BRIEN: A lot of weasels in that business. All right, Renay San Miguel, thank you very much. You ever flown in an aerobatic plane?

SAN MIGUEL: I have not, I haven't had the pleasure, no.

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