WSJ -- Divided FCC Set To Vote On Wireless 'Number Portability'
July 12, 2002
Divided FCC Set To Vote On Wireless 'Number Portability'
By MARK WIGFIELD
Of DOW JONES NEWSWIRES
WASHINGTON -- A divided Federal Communications Commission is
counting votes as it tries to decide how soon consumers should gain the
right to keep their wireless phone numbers when they switch carriers.
FCC Chairman Michael Powell has scheduled a vote at the agency's public
meeting Tuesday on a petition by Verizon Wireless Inc., a partnership
between Verizon Communications Inc. (VZ) and Vodafone PLC (VOD), to
delay that day indefinitely.
Chairmen typically don't schedule votes before a consensus is reached. But
they sometimes use a deadline to force a decision when a proceeding has
been in circulation for too long.
That's the case concerning so-called wireless "number portability." The
policy is intended to give consumers more power by eliminating a deterrent
to switching carriers: the need to change phone numbers.
The FCC twice has pushed back the original 1999 deadline for compliance
after major wireless providers pleaded for more time. Last year, Verizon
asked for an indefinite delay from the current Nov. 24 deadline.
Commissioners have been deliberating ever since. But if they don't act by
July 24, Verizon's petition goes into effect.
Observers don't believe that will happen, but that the commission will
authorize yet another delay. The question is for how long, an issue that
divides the FCC.
At one extreme is Kathleen Abernathy, a Republican who favors a delay of
up 18 to 24 months. On the other is Michael Copps, a Democrat who
favors a delay of three to six months.
Republican Kevin Martin is allied with Copps and believes there's no
justification for a long delay. Powell favors a longer delay, but observers believe he'll try to broker a one-year
deal.
The nomination of a tie-breaking fifth member of the commission, Democrat Jonathan Adelstein, has been
caught in a political fight between the White House and the Senate. The logjam broke this week, when the
White House sent the nomination to the Senate, and the Senate Commerce Committee scheduled a
confirmation hearing for Tuesday, a few hours after the FCC meeting begins.
The large wireless carriers oppose local-number portability as an unnecessary expense at a time when
consumers would rather that companies spend money to improve network reliability. They say their industry is
already overly competitive, as consumers move frequently between six major providers.
But upstarts like Leap Wireless International Inc. (LEAP) say number portability will hasten local phone
competition in both the wireless and wireline markets. Some consumers are giving up their landline phones
altogether for unlimited-service wireless plans such as Leap's - and would be more willing to do so if they
could keep their old numbers.
"The big wireless companies want procrastination," says Dan Pegg, vice president for public affairs at Leap,
based in San Diego. The companies reap "a competitive advantage in owning the phone number, since
customers can't take the equity they've built in it to another telephone company."
Consumer advocate Chris Murray of Consumers Union wants the FCC to impose the rule well before expected
consolidation in the industry reduces consumer choice.
Verizon Wireless spokesman Jeffrey Nelson said the company is "pleased the chairman has put this on the
schedule, and we are hopeful that the issue can be resolved on Tuesday."
Commission items can always be removed from the agenda. Also, the FCC has the option of voting to give
itself another 90 days before having to make a final decision on Verizon's petition.
-By Mark Wigfield, Dow Jones Newswires; 202-828-3397; mark.wigfield@dowjones.com
Updated July 12, 2002 1:17 p.m. EDT
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