FCC phone ruling a victory for Verizon

• Switchover rules will take effect Nov. 24

Advertiser Staff and News Services

Customers check out the services and models at a wireless phone store in New York. Some land-line phone companies fear the loss of millions of subscribers after yesterday's ruling by the Federal Communications Commission. Bloomberg News Service library photo

But the ruling was a victory for Verizon Communications Inc., which had lobbied for the decision to coincide with a similar rule forcing mobile phone companies to make their phone numbers portable.

Local-phone companies in the 100 largest markets, including Honolulu, must allow the transfers beginning Nov. 24 unless they can show it is "technically infeasible," the Federal Communications Commission ruled in Washington yesterday.

Carriers including BellSouth Corp. said they may challenge the ruling, which analysts said could increase the rate at which customers cut home phone service.

"Whatever that run rate is, it's likely to do nothing but increase," said Albert Lin, a telecommunications analyst at American Technology Research in San Francisco.

The rule will allow people to disconnect a home or business landline phone and activate the same number on a mobile handset, as long as the local carrier's and wireless operator's coverage area overlap, the FCC said.

"After today it's easier than ever to cut the cord," FCC Chairman Michael Powell said in a statement.

The FCC approved the order over the objections of SBC, BellSouth Corp. and Qwest Communications International Inc., the second, third and fourth biggest local operators.

A Bell-dominated trade group of wired carriers said the decision is fraught with technical problems.

"Unfortunately, with this ruling the FCC chose not to take the time to address many critical issues for porting," said Walter McCormick Jr., president of the United States Telecommunications Association.

The rule will also apply to carriers outside the 100 biggest markets, the Neighbor Islands among them, starting May 24.

The FCC didn't decide on the reverse type of switch, transferring a mobile-phone number to a landline.

The FCC said in the statement that it is seeking comment on how to make such transfers easier. The agency may take a year to decide on mobile-to-home number transfers, FCC Commissioner Kathleen Abernathy said in an interview.

Until then, consumers will be able to change their minds and switch back to a landline phone if they don't like how a new wireless phone is working with their home number, Abernathy said.

"We listened to all sides on this debate," Abernathy said on Bloomberg News. "At the end of the day the question was, technically, where it can happen, should a customer be able to take their number? And we came down to yes, if you want to."

Only a "handful" of people will disconnect their landline phones because of the ruling, predicted Michael O'Connor, federal-regulatory director for Verizon Communications, the largest U.S. local-phone company.

Verizon owns 55 percent of Verizon Wireless, the biggest U.S. cellular operator by customers.

In a statement yesterday, Verizon said it would not charge customers moving their phone numbers to or from Verizon, but other companies might do so.

Verizon also said canceling a landline may also disable alarm reporting services, TiVo, satellite TV, cable pay-per-view and Internet access that depends on a phone line, including dial-up and DSL access.

Switchover rules will take effect Nov. 24

Questions and answers for consumers about changes in cell-phone rules:

Q. What happens Nov. 24?

A. On that day, according to Federal Communications Commission regulations, cell-phone customers in the most populous metropolitan areas, including Honolulu, will be able to keep their numbers if they switch to a competing wireless server that serves the same local area.

Q. What about home phones?

A. The FCC yesterday issued rules that also take effect Nov. 24 requiring telephone companies to allow the transfer of home numbers to cell phones.

Q. How do you transfer a number?

A. The Cellular Telecommunications and Internet Association, the trade group for the cell-phone industry, says customers should contact the carrier to which they want to switch. They should have their phone number, billing address, account number and latest bill. Only the person whose name is on the account can authorize the change.

Q. How quickly must a company switch the number?

A. The FCC says the goal is to transfer a single number within 2 1/2 hours after the new carrier calls the old provider. It could take days for multiple lines to be switched.

Q. Can you take a home number and use it for a wireless phone, too?

A. No, said Verizon Hawaii spokeswoman Darcie Scharfenstein, but you can forward your home calls to your mobile phone.

Q. What will it cost to switch?

A. The FCC says carriers can charge their customers for switching the number, though a new carrier could agree to pay the transfer fee the way long-distance companies often pay the cost of changing service as a way to entice customers.

Some carriers have tacked a fee on monthly bills to cover the costs of installing the equipment to enable numbers to be transferred. These fees range from a few cents to more than $1. The FCC does not regulate the amount of the charges but requires them to be "just and reasonable."

Consumers who have contracts with their current providers will have to pay early termination fees, which can reach $200, if they switch before their agreements expire.

And most customers will have to buy a new cell phone when they change providers, because each company uses different technology.

Some companies are offering free phones to get customers to switch.