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Friday, September 13, 2002

Now here's some legislation worth supporting... of course, it's also basically a personal GUID, but I won't get into that again right now...

==> CELL PHONE NUMBER PORTABILITY COULD LEAD TO CHURN SPIKE

A new regulation that would enable cell phone users to take their number
with them when they switch carriers could generate a spike in customer
turnover, or churn, at least in the short term, says analyst Ken Hyers at
In-Stat/MDR: "The first 12 months after the regulation will be very painful
but then the pain will diminish. Carriers should accept that rule as
inevitable and move forward." Hyers predicts that about 46% of U.S. mobile
customers will switch to a rival operator in the year following the
regulation's November 2003 implementation. That compares with an estimated
current turnover rate of 30%. Similar rules in Australia, Hong Kong and
parts of Europe have resulted in churn rates increasing by 25% to 50%, says
In-Stat. In addition to the probability of losing customers, wireless firms
will have to face increased outlays of between $900 million and $1 billion
to upgrade their networks and software in order to accommodate number
portability. But telecom analyst Jeff Kagan says the final result could be
a blessing in disguise for the industry: "Right now customers are not using
a mobile as their primary phone but that is a goal of the industry. Once it
happens, the bottom line is that customers will scream if they have to
change their number. The way to keep customers happy is not to trap them
but to give them a reason to stay."

http://www.techknowtimes.com/jump/v5i29019.html

 
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Analysis of online business and technology trends, including: Search and Directory, Digital Media, Social Networking, RSS, and E-commerce. Written by buzzhit!'s Tony Gentile.

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