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3 wants the time taken to port a mobile phone number between networks in the UK to be reduced from five days to just two hours. The delay discourages customers to switch networks as it stands said 3. >Industry regulator Ofcom is in the process of reviewing the MNP system. It will present its decision at the end of the summer following submissions from all the networks.
3 wants a fast modern and consumer-friendly porting system introduced by the end of the year. 3 UK CEO Kevin Russell said the number porting system in the UK is flawed because it is the only market where a customer still has to get permission from an operator to transfer their number also saying there was an imbalance in the ratio of outgoing calls compared with incoming calls on the 3 network as a result. For every 10 minutes of outbound calling there were just four of inbound traffic he said less than half of that seen in the other 3 markets.
Were pushing Ofcom and the industry hard to move to a recipient-led MNP process where you dont have to go back to the operator to ask for permission. Frankly this is unacceptable for a market as diverse as the UK.
Russell said there was no interest from the four incumbent networks to push for faster number portability because it would see increased customer churn and stifle competition. It is quite a straightforward process [to change the system] but I think every single incumbent is going to make it more complicated he said.
He also said the process gives rival networks the chance to court back their customers.
Vodafone accepted that as it stands the five-day period presents Vodafone with a chance to negotiate a deal with a customer that proposes to switch to another network.
But a spokesperson for the network said: Theres a risk in tinkering with a process that works. Ofcom surveyed 1200 people about the porting process only three per cent expressed concern and just three consumers in total mentioned the time for porting as a reason not to switch providers. That means 0.25 per cent using the process have a problem with the time it takes its not exactly a storm of people that object to it.
Vodafone has also questioned the efficiency of the two-hour porting system and the value of comparing markets.
As far as were concerned it means a customer can just call up and ask for their number. But the process of checking credit and ID is not as quick as that. Its a little bit simplistic to suggest such a short procedure said the spokesperson. The UK market is very different to other markets. A process that fits one market isnt necessarily going to fit here.
O2 said there is no evidence to suggest porting times prevent customers from switching networks. A spokesperson said: We can think of several reasons why customers wouldnt join 3 and cant see port lead times being one of them.
T-Mobile and Orange declined to comment
AwayPhone classes itself as an international MVNO with relationships with multiple network operators around the world.
It leases wholesale airtime from network operators but also buys roaming minutes and connects calls through VoIP technology. Customers can avoid high roaming tariffs because calls are routed via local numbers in countries they visit.
Dextra sales director Angie Simpson said: International SIM agreements sold separately to a users regular phone contract represent a great add-on market opportunity for mobile resellers because they can be sold at any time on top of existing contracts.
She said the deal would also enable dealers to reach customers they might normally miss through standard network contracts such as large corporate customers.
Its a healthy ongoing structure for the dealers and they can see rewards quickly. Were trying to find ways for dealerships to increase revenue that they might otherwise be losing said Simpson.
The move is a key step in AwayPhones partner distribution strategy as it expands its sales channels to meet the growing demand for its service.
AwayPhone CEO Sherry Madera said the AwayPhone SIM offered benefits to customers travelling to destinations not covered by the new EU roaming caps.
Orange is expected to take £20-£30 out of its consumer commissions for dealers as early as July 1. At the same time it is expected to bolster its commissions on business tariffs.
Distributor sources said last week they had received verbal confirmation there would be a significant reduction in consumer connections commissions rates.
One leading distributor source said: Orange has sold really well over the past couple of months. The Unlimited offer has done well. But its always the way with Orange put the money in then pull it out again as it hits volumes.
Another said: Were still awaiting confirmation but weve been told everything will change in August.
However a dealer source said he expected the changes to be in place as early as the start of July. Theres nothing we can do about changes like this. It depends how much the customer wants to go with Orange.
Orange is set to pull its Unlimited offer which offers customer free landline calls on selected tariffs over £35 from the dealer channel on July 31.
The European Court of Justice (ECJ) threw out the claims by Vodafone Orange O2 T-Mobile and 3 on the grounds that the original licence auction did not constitute economic activity and so does not fall under EU tax law.
Network operators paid a combined sum of £22 billion to the Government for 3G licences. They submitted VAT reclaims on the transaction which were rejected by HM Revenue & Customs.
The appeal was then brought before the VAT and Duties Tribunal which referred it to the ECJ.
The ECJs ruling is final.
Hartley Foster partner at law firm DLA Piper said: £3.3 billion is the amount of the proposed tax rebate for the UK alone. The appeal took into consideration all the other member states so the impact of such a claim would have had huge financial implications for all EU member states. It is naïve not to think that the ECJ took this into consideration when making its judgement.
Reports had claimed that a deal between O2 and Apple for the much sort after phone was imminent. But the network has been quick to distance itself from the claims.
A spokesperson for O2 said: This is pure speculation and we are not expecting to announce anything. Every network has been linked to the iPhone and now it seems to be our turn.
Comm Sense is expected to pick up ITsystems customer databases and stock from European Telecom.
Its airtime contracts have been withdrawn. Comm Sense is negotiating its own direct airtime distribution contracts with all network operators Mobile News understands.
Comm Sense founder and boss Barry Moore who re-acquired the business from European Telecom prior to its administration was unavailable for comment as was administrator Begbies Traynor. More than 80 European Telecom staff have been made redundant.
McCarthy has been in the industry for over a decade. He spent two years at Motorola heading the launch of its BT Fusion handsets. Prior to Motorola McCarthy headed teams at both BT and O2.
McCarthy said: Ill use my experience along with a clear vision of the opportunities in convergence to strengthen HTCs market share in the UK and Ireland.
Asda has rolled its prepay offering to 99 stores already following its initial launch online in late April and will more than double that figure in the next six months.
Were planning to roll-out to as many of our big and medium-sized stores as well as our Living outlets which specialise in technology and entertainment said Asda Mobile buying manager Craig Thirkell.
When Asda Mobile started we could never have expected to hit the 250 mark so soon. The success both in-store and online shows what a great job our partners Vodafone and 20:20 Logistics are doing.
Asda offers a SIM-only pack for £4.97 including £1 of airtime credit. Prepay handsets online range from £19.97 (Nokia 1600) to £97.97 (LG¹s KG800 Chocolate).
MoCo is in talks with Orange about the commercial package and terms that will be made available to MoCo dealers.
Benefits will include dedicated dealer support an ongoing revenue share preferential stock allocation and increased marketing funds.
MoCo managing director Ian Robinson said: Were very excited. Its a great deal for our partners.
Moco already runs a dealer club for its O2 business connectors.
The role of retail and distribution chief is new to Sony Ericsson which plans to grow its non-specialist channels ahead of the Christmas quarter.
Beechs remit also covers accessories and the Irish market. He reports in to SE sales director Nathan Vautier. Beech will be in charge of a 35-man retail training team.
Prior to SE Beech spent five years as a senior trading manager at Tesco and five years as a network account manager at Ericsson.
His recruitment completes UK managing director John Harbers management team following the appointment of Vautier who joined in September and David Hilton who joined in October. SE had a bumper six months rarely being off the top of the UK handset sales chart. But it relied heavily upon network and specialist retail for its sales.