Challenge on numbers for Telecom

By PETER GRIFFIN telecoms writer

The long-running argument over phone-number portability has landed in the lap of the telecommunications commissioner with Telecom's competitors issuing a joint request for a number transfer system to be set up.

The "challengers" as they call themselves, include TelstraClear, CallPlus, Ihug and Worldxchange.

Econet Wireless, whose efforts to launch a third mobile phone network appear to have stalled, said it supported the move.

Conspicuously absent from the group is Vodafone, which claims it supports the notion of number portability but would rather puts its support behind the Number Administration Deed (NAD) committee, which includes all the telcos and has carried out research into what is necessary to make the change.

The telcos want telephone users to be able to take their numbers with them as they switch between phone companies - whether they be fixed-line residential or business customers, or mobile users.

But the sticking point is who will pay for the new system. The NAD committee estimates the cost could be between $74 million and $89 million.

"Telecom has refused to bear its own costs, suggesting challengers pay them, effectively imposing challengers with another barrier when providing consumers with choice," the telcos said in a joint statement.

TelstraClear chief executive Rosemary Howard said New Zealand was years behind the rest of the world in lacking a number portability system.

In Australia, number portability between carriers exists for toll-free, local and mobile calling. The latter element was introduced in September 2001.

"Money will have to be spent," said Howard.

"In Australia each carrier undertook whatever modifications to their networks that were necessary."

Telecom argues that number portability already exists. Telecom and TelstraClear pay one another a one-off fee of $17.50 and and a per-minute charge of 0.5c for calls they "port" to one another's network.

The other telcos want a system introduced that abolishes those charges.

No number portability exists for mobile calls.

Telecom's group general manager, government relations, Bruce Parkes, said the form of number portability that the carriers proposed would provide few additional advantages but would be costly to implement.

"If I was given between $50 million and $100 million to spend on telecoms infrastructure, the last thing I would spend it on is number portability so a few customers can get caller display.

"I'd spend it on getting broadband to rural schools."

But Telecom has no interest in introducing number portability because it already has the lion's share of fixed-line phone connections.

In the mobile market, number portability would appear not to be in Vodafone's interest either, as it has been successful in winning customers from Telecom - customers who would be more open to changing back again if they could bring their 021 number with them.