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Low mobile number portability linked to off-net tariffs, multiple SIM devices

Sunday October 30 2011
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A study by the Consumers Federation of Kenya’s (Cofek) on key aspects of Kenya’s telecoms shows that the introduction of porting soon after the downward revision of mobile termination rates by industry regulator Communications Commission of Kenya, has played a role in the low success rate of the project, with available statistics indicating that only 45,000 porting requests had been received one month after it was implemented.. Photo/File

The low uptake of mobile number portability by Kenya’s 25 million subscribers since its introduction in April 2011 is attributed to the revision of off-net tariffs by mobile network operators as well as the introduction of multiple SIM devices in the country.

According to a study by the Consumers Federation of Kenya’s (Cofek) on key aspects of Kenya’s telecoms, the introduction of porting soon after the downward revision of mobile termination rates by industry regulator Communications Commission of Kenya, has played a role in the low success rate of the project, with available statistics indicating that only 45,000 porting requests had been received one month after it was implemented.

“The much touted move to introduce mobile number portability in April 2011 was done with high expectations. But the market had just experienced the downward revision of termination rates a few months earlier and much lower subscriber rates,” says the Cofek report launched in mid September this year.

The report notes that even though porting was a victory for consumers and the industry, the downward revision of mobile termination rates, lack of education, negative publicity on the disruptions of service for porting customers and the operators’ “club effect” seem to have curtailed its successful implementation.

Mobile number portability was introduced in Kenya in March 2010, with Porting Access Kenya getting the license to link the communication channels of all the operators. Through the process, subscribers wishing to retain their numbers while utilising rival networks have to pay $2 as porting fees.

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The challenges surrounding the porting exercise have also been compounded by the introduction of multiple SIM handsets in the market, which has made it unattractive for subscribers to change service providers.

The recent announcement by China’s TECNO Mobile that it will launch four-SIM handsets in the Kenyan market, though welcome news for subscribers, is another blow to porting.

When launched, the four-SIM phones will make it possible for a subscriber to switch between the four mobile phone operators without replacing their SIM cards.

TECNO’s four-SIM model, T-4, will launch soon in the market, Adam Jin, the firm’s marketing manager said, adding that the Internet-enabled handsets would retail for about $60.

Other major handset manufacturers — Nokia, Samsung, LG and Motorola — have already launched dual SIM handsets in the local market.

In May, market leader Safaricom took Porting Access Kenya to court after the company accused the service provider of sabotaging the porting process.

The court ordered Porting Access to desist from publishing statements that adversely mentioned Safaricom regarding the exercise.
Recently, Telkom Orange chief executive Mickhael Ghossein said the process had failed and needed to be relaunched, adding that the industry would meet with the CCK to deliberate on the issue.

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