Ofcom told to rethink plans for two-hour mobile number portability

The Competition Appeals Tribunal (CAT) ruled on Thursday that Ofcom had failed to prove that changing the ‘number porting’ regime would cost the industry just £5 million.

Number portability, or ‘porting’, enables subscribers to a fixed or mobile network to retain their telephone number when they change network operator. Ofcom sets rules on porting to make it easier for consumers to keep their mobile number when they switch providers, enabling them to receive calls using their existing number within a short period of moving to a new mobile network.

Ofcom used to give mobile operators five business days for porting. It reduced that period to two business days from March this year and it planned to reduce it further, to just two hours, with effect from the start of this month. It said that change would cost the industry £5 million.

Vodafone challenged Ofcom's two-hour proposal, arguing that the cost of that change would be closer to £37 million per network. It was supported by mobile operators BT, O2, Orange and T-Mobile.

Vodafone argued that the regulator did not know the basis of the cost of £5 million for two-hour portability. The CAT ruling said that Vodafone “also submitted that … there was an absence of any technical specification in the [Ofcom] Decision. 

The ruling continued: “There are also additional substantial cost elements involved in the move to recipient-led two hour porting that have not been properly considered by Ofcom in adopting the Decision.” 
 
The CAT criticised Ofcom’s lack of evidence to substantiate its calculations. It said: “At the hearing, counsel for Ofcom stated that the figure of £5m was adopted from internal working by Ofcom staff. The calculation did not appear in any documents before the tribunal.”

The tribunal concluded that Ofcom should “seek the fresh views of the industry on the issue of altering the current arrangements in the UK for fixed and mobile porting, on the basis of appropriate evidence and analysis in light of the findings set out in this judgment.” 

It added: “The Tribunal further considers that a staged approach to decision making in a matter of such complexity may be advantageous.”

Kevin Russell, CEO of rival operator 3 UK, said: “This is a technical and legal decision that has somehow completely forgotten the consumer and is in danger of delaying the current process.
This could force the delivery date [for fast porting] back from September 2009 into 2010.”

The UK currently lags behind other European countries, especially Malta and Ireland, which were ranked this month by the European Commission as being most efficient in mobile number portability, with changeover times of no more than one day.

That benchmark is set to become the EU’s objective, with proposals submitted by the Commission last November and currently before the European Parliament stating that within one working day consumers in the EU should be able to change their fixed or mobile operator while keeping their phone number.

Telecommunications operators can appeal Ofcom decisions to the Competition Appeal Tribunal which can review both the legal and economic analysis undertaken by Ofcom and overturn decisions if it does not agree with Ofcom’s reasoning.