FCC Unlikely to Extend Wireless LNP Deadline

NEW YORK — Federal Communications Commission Commissioner Kathy Abernathy has poured cold water on the hot hopes of wireless carriers for yet another delay in implementing Local Number Portability (LNP).

Speaking at the Global Wireless Summit here Thursday, Abernathy said it was
“wishful thinking” on the part of wireless carriers to expect an eleventh
hour delay in implementing portability, which would allow cell phone
customers to keep their numbers when they change carriers.

“I do not see a groundswell of support for another delay,” said
Abernathy, who said she favored a lengthy delay last July when the deadline was extended until November this
year.

Abernathy, who was sworn in as an FCC Commissioner in May 2001, agreed
that local number portability was “very expensive” for wireless carriers to
implement, noting that the lack of demand in the wireline sector was making
it a non-issue.

“How many of you in this room really want your wireless number as your
main number? I certainly don’t because my main number is listed,” she
declared.

The oft-delayed LNP decision deals with a request from Verizon Wireless
to eliminate number portability entirely as a requirement for wireless
companies. Most cell phone providers, including Cingular, Sprint PCS and
AT&T Wireless supported Verizon Wireless’ position, claiming the cost of
such a program is expensive and that the inability to keep cell phone
numbers when changing carriers is not inhibiting competition or growth in
the sector.

The wireless industry estimates that implementing portable numbers will
cost more than $1 billion in the first year and $500 million each year after
that, a position endorsed by Commissioner Abernathy, who agreed it would a
“very expensive” undertaking.

The FCC is in favor of keeping the cell phone number portability
requirement in the law but the commissioners remain divided as to how long
to delay its implementation, which dates back to the original 1996 FCC
order.

That 1996 order mandated that wireless carriers let businesses and
consumers keep their numbers when changing companies in the top 100 U.S.
cities by June 1999. But, that June deadline was extended a few times,
including the latest to November this year.

During her keynote address, Abernathy outlined the scope of the FCC’s
work in the area of wireless spectrum, arguing that the commission must
“change its focus” to be stricter with enforcement.

“With increased competition, there are many players entering the market
and there are many opportunities for mischief. There are many companies in
the business that have no respect for consumers. That’s why we have to
really give strength to enforcement for all parties,” Abernathy
declared.

She said the FCC’s decision to create secondary markets for wireless
spectrum was aimed at increasing competition but warned that the rights of
consumers must be maintained. “We have to make sure the interference rules
are being followed and the rights of consumers are being kept. Competition
won’t benefit consumers if they can’t navigate the market and get a better
deal,” Abernathy said.