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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 174.80+0.3%Dec 5 9:30 AM EST
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To: saukriver who wrote (30706)1/4/2003 1:21:08 PM
From: John Biddle  Read Replies (1) of 196851
 
Carriers have been yakking about number portability since the mid-1990s. Then, they sack it when it comes close to being allowed by the FCC. It is a game. If they really wanted it, they would make it happen.

I think you have this backward. The FCC is mandating number portability and has extended the deadline at the carriers request.

Carriers hate the idea of number portability! Not only those who think they'll see a net loss in subscribers, but all who aren't sure they'll see significant net increases. If the six biggest carriers traded several millions of customers they all have significant extra costs, but only the net winner gets to offset that cost with future revenues. Note the focus of analysts on churn.

The increase in competition would be substantial because they would soon be fighting not only over new subscribers, and subscribers so dissatisfied they're willing to go through the hassle of changing numbers, but all subscribers. This would inevitably lead to price wars and huge increases in advertising budgets, just to break even.

Carriers will continue to fight number portability as long as they can.

wirelessnewsfactor.com
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