The effects of mobile number portability on consumers in South Africa

Abstract

The European Union introduced the concept of global reforms in the 1990s, in order to open markets for competition. The trajectory of reforms in South Africa took the following shape: first, liberalisation of markets in the telecommunications industry. Second, were the privatisation of incumbents, and lastly, the creation of regulatory agencies, which were mandated by the American Telecommunications Act of 1996 (No. 103 of 1996) to promote competition. These changes opened the market for the licensing of cellular network operators, to compete with the dominant fixed line provider on voice and data services. Competition in its nature, aims to improve services, provide affordable prices to consumers and flexible products where consumer can exercise choice. One of the highlights of competition in the telecommunications sector came through the legislative requirement for the industry to introduce number portability. There are different types of number portability but for purposes of this study, focus shall be on mobile number portability (MNP). This study examines the extent to which MNP has benefited consumers who have ported their number in South Africa. The first chapter provides a background on the global reforms in the telecommunication sector, and this is followed by reforms in South Africa. The second chapter provides a literature review on the effects of MNP, and looks at the regulatory framework of MNP, processes of porting, and the results of the introduction of MNP in various countries. The study found that policy and regulations on MNP had both positive and negative effects. Consumers are now able to switch operators whilst keeping their numbers, thus exercising their right to choice. However, prices still remain uncompetitive and quality of service is yet to improve.