Cdns can keep their cellphone numbers

MONTREAL -- Don't expect earth-shaking changes in the market next week when Canadians are allowed to keep their numbers when switching cellular providers.

Defections between carriers could even decrease if what happened in other countries is an indication.

"It's a step in the right direction for consumers," said Kevin Restivo, a telecom analyst with the SeaBoard Group in Toronto. "But you're likely to run into the same (service) plans regardless of the carrier."

The new rules come into effect next Wednesday. The Canadian Radio-television and Telecommunications Commission ruled two years ago that carriers allow what is called wireless number portability as a way of increasing competition.

With fewer barriers to switch, the logic goes, companies will have more incentives to lure customers through service and special offers. However, telephone companies have other ways to keep customers under their plans, Restivo said.

"Carriers have done a good job of getting people to sign three-year contracts over the last year," he said. "That limits people's flexibility."

The big winners of number portability will likely be businesses, who can switch carriers without worrying about informing customers of a change of number.

"It helps ensure continuity of business," Restivo noted.

To get a glimpse of the effects of portability in Canada, the U.S. is a helpful guide.

"American carriers were dragged into it kicking and screaming (in 2003), and very little came of it," Restivo said.

Canadian telcos are not expecting much, and even using the change to trumpet their offerings.

"It all comes down to why customers stay with you," said Chris Langdon, vice-president of network services for Telus Corp.

"It's about getting a positive experience, having a superior network, and compelling products."

Telus already has the lowest churn, or the rate of customer defections, at 1.33 per cent, Langdon said, "We'll be competitive with whatever is in the market today," he said.

Consulting firm PriceWaterhouseCoopers estimated two years ago that 850,000 Canadians would make the switch in the first year, out of 15 million cellphone users.

"It's hard to say. In the U.S. and Japan, it actually reduced the rate of churn," said Marc Choma of the Canadian Wireless Telecommunications Association.

Nonetheless, companies have been preparing for the switch with new offers to keep customers happy and possibly to lure new ones.

Bell Mobility, for instance, now allows unlimited calling between local Bell phones, wireless or fixed.

Rogers Communications Inc. rolled out something similar, giving home phone customers free long-distance calls to other Rogers Wireless or Fido customers in Canada.

Customers should know, however, that they cannot cancel their plans before making the switch or carry one company's plan over to another. Also, they must ensure their handset works in a rival's network.

The Canadian Wireless Telecommunications Association has a useful guideline for those wanting to switch, found online at wirelessnumberportability.ca.

Source