Summary
1.1 This statement sets out Ofcom’s (the Office of Communications) decision in relation to the proposed modification of certain provisions associated with the current regulation of number portability. Ofcom considered whether these provisions were still appropriate given the evolving nature of communications networks and services in its consultation document Number portability and technology neutrality (“the November 2005 consultation document”) published on 3 November 2005[ (-1-)]. Put briefly, number portability is the ability of a subscriber to change communications provider while retaining their telephone number.
1.2 In the November 2005 consultation document, Ofcom proposed modifications to General Condition of Entitlement 18 (“the Number Portability Condition”) and the National Telephone Numbering Plan (“the Plan”)[ (-2-)] to encourage switching between providers and to facilitate inter-platform voice competition, developments that Ofcom considers desirable. As noted in the Phase 2 consultation document for its Strategic Review of Telecommunications[ (-3-)], Ofcom proposes to facilitate inter-platform competition wherever possible due to its potential to deliver a competitive market in voice services. Ofcom emphasised the particular importance of fixed-mobile convergence in this context, and also the importance of ensuring that Voice over Internet Protocol (“VoIP”) services are not artificially impeded as they enter the market. In the Final Statements on the Strategic Review of Telecommunications[ (-4-)], Ofcom said that without the ability for consumers to switch easily, there can be no effective competition.
1.3 Ofcom’s number allocation policy has evolved to promote inter-platform competition. For instance, geographic numbers have been allocated to certain geographic services which are delivered via wireless networks, while mobile numbers have been allocated to certain mobile services which are delivered via hybrid fixed-mobile networks.
1.4 Ofcom considers that its approach to number portability should also promote inter-platform competition in a manner consistent with its number allocation policy. This is in line with Ofcom’s statutory duties to further the interests of citizens in relation to communication matters and to further the interests of consumers in relevant markets where appropriate by promoting competition[ (-5-)] and to take account of the desirability of it carrying out its functions in a manner which, so far as is practicable, does not favour one form of communications network or service over another[ (-6-)].
1.5 Ofcom’s specific proposal to facilitate inter-platform competition in the November 2005 consultation document was to modify the definition of “Number Portability” in the Number Portability Condition and the Plan so that the rights and obligations associated with geographic number portability are no longer restricted to situations where the Network Termination Point (“NTP”) or the number is retained at a “specific location”.
1.6 Ofcom also consulted on the removal of the formal requirement to provide portability in accordance with the Number Portability Functional Specification published by Ofcom[ (-7-)] (“the Functional Specification”). The Functional Specification sets out certain technical characteristics of portability arrangements that were appropriate when portability only applied to Public Switched Telephone Network (“PSTN”) fixed networks and Global System for Mobile (“GSM”)-based mobile networks. Ofcom considered that the rules and processes contained in the Functional Specification may no longer be appropriate given the emergence of VoIP, hybrid fixed-wireless services and Next Generation Networks (“NGNs”), and may therefore represent a further potential barrier to inter-platform competition.
1.7 Additionally, the Functional Specification in its current form may impede the development of new and more effective portability arrangements between different communications providers using the same or similar platforms, such as alternative approaches to the current “onward routing” solution. Ofcom considers that industry should be free, where appropriate, to adopt such alternatives. This is consistent with Ofcom’s policy objective to regulate in a manner that, as far as is practicable, is technology neutral. This policy objective and regulatory principle is supported by Article 8 of the Framework Directive[ (-8-)].
1.8 The responses to the November 2005 consultation document expressed broad support for the principle that regulation should be technologically neutral, and therefore for Ofcom’s proposal to remove references to “specific location” from the definition of Number Portability. A number of respondents did, however, express concern regarding the broader implications of mandating portability between all fixed and mobile services, and the erosion of tariff transparency provided to end-users by the Plan that would result from such a change. Ofcom shares this concern, but emphasises that tariff transparency was preserved under its proposals.
1.9 Ofcom’s modification of the Number Portability Condition permits portability of numbers between different types of network whilst retaining the existing provision that retention of telephone numbers must be in accordance with the Plan. This latter provision is designed to preserve the integrity of the Plan and by so doing, tariff transparency. For example, the modification to the Number Portability Condition will allow geographic numbers to be ported from a fixed to a wireless network where the geographic number continues to be used in accordance with the Plan. The definition of "Geographic Number" in the Plan allows for the number to be used in a way where the NTP does not relate to the geographic area code but only as long as the tariffing remains consistent with that area code. In other words, a geographic number cannot be ported to a mobile network where the charges are not consistent with geographic numbers. This will preserve tariff transparency for consumers.
1.10 The responses to the November 2005 consultation document also expressed broad support for the need to update the Functional Specification. There were, however, widely varying views as to Ofcom’s role in this process, and the status of the resulting document. Most responses argued that Ofcom had a continuing role in ensuring that portability arrangements were fit-for-purpose, and several argued that an updated version of the document should continue to have a formal legal status.
1.11 Ofcom acknowledges its role in ensuring that effective number portability arrangements are in place. However, it believes that the appropriate means of doing so is through a co-regulatory approach, on the basis that many providers will share Ofcom’s desire to improve the effectiveness of portability arrangements, and that industry is better placed than Ofcom to design the detailed processes to deliver this.
1.12 Ofcom appreciates that some providers may not face the same incentive as others to improve the effectiveness of portability arrangements. If this creates a barrier to progress then Ofcom would consider whether it ought to intervene. This could include, subject to consultation, consideration of whether to include high level technical specifications for portability within the General Conditions of Entitlement (“General Conditions”). Ofcom will review this matter again as part of its review of the General Conditions, which it plans to carry out during the latter part of 2006.
1.13 Ofcom is of the view that the detailed technical processes for portability should be owned by industry rather than by Ofcom, and should not form part of the formal legal framework for number portability. Industry would be free to continue to maintain number portability functional specification(s) and associated process manuals, and is encouraged to develop updated versions of these documents, as long as they are consistent with the obligation to provide portability on reasonable terms in accordance with the Number Portability Condition. Ofcom would continue to use the Functional Specification (and associated process manuals) as a guide to what constitutes best practice in the context of number portability disputes or complaints, but would have the flexibility to take account of the facts of a specific case when considering whether the Functional Specification is relevant, rather than enforcing it as a blanket obligation.
Having taken the 21 responses to the November 2005 consultation document into account, Ofcom has decided to implement its proposals as set out in the consultation. These proposals were to:
- modify the definition of “Number Portability” in the Number Portability Condition and the Plan and delete redundant definitions;
- remove the reference to the Functional Specification in the Number Portability Condition; and
- make consequential modifications to the Plan.
1.15 The final notifications of modifications to the Number Portability Condition and the Plan are set out in this statement, the publication of which brings the modifications into effect.
Footnotes:
1.-http://www.ofcom.org.uk/consult/condocs/numport/
2.-http://www.ofcom.org.uk/telecoms/ioi/numbers/261701.pdf
3.-http://www.ofcom.org.uk/consult/condocs/telecoms_p2/tsrphase2/maincondoc.pdf
4.-http://www.ofcom.org.uk/consult/condocs/statement_tsr/statement.pdf
5.- Section 3 of the Communications Act 2003.
6.- Section 4 of the Communications Act 2003 which is based on Article 8 of the Framework Directive 2002/21/EC.
7.- Version 5 of the Number Portability Functional Specification published 22 July 2003 sets out technical and operational scope of number portability and the rules and processes for its provision. http://www.ofcom.org.uk/static/archive/oftel/publications/numbering/2003/fun_final0703.htm#b
8.-http://europa.eu.int/eur-lex/pri/en/oj/dat/2002/l_108/l_10820020424en00330050.pdf
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