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The Honolulu Advertiser
Posted on: Monday, November 24, 2003

Cell-phone trades begin

By Sean Hao
Advertiser Staff Writer

Starting today, Hawai'i cell-phone users can switch phone companies without switching phone numbers, a process local dealers say could take anywhere from a few hours to a day.

Cell-phone users will be able to keep their number.

Associated Press library photo

Consumers likely will have to wait a little longer before phone companies start offering new discounts to snatch customers from the competition.

Eventually, analysts expect the new rules will translate into sweeter deals and improved phone service for cell-phone users.

"That's where good customer service comes in," said Eric Kaneshiro, Sprint PCS business manager for Hawai'i. "If you serve them well, they'll be less likely to leave."

Verizon Wireless is more likely than Sprint, AT&T Wireless Services Inc., Cingular Wireless LLC or its other competitors to gain customers from the new rule, said Rick Franklin, a telecommunications analyst at Banc of America Capital Management Inc.

Verizon has spent the most on advertising this year, and is ranked No. 1 in customer satisfaction by a Consumer Reports survey. Users also reported the fewest problems with static or busy signals, according to the survey.

Call reception "tends to be the best reason why people change wireless carriers," Franklin said .

About 13 percent of cell-phone users plan to take advantage of the new rule, according to a USA Today/CNN/Gallup Poll. That translates into 19.8 million customers.

Phil Campos, a supervisor at Cell Phones Etc. in Makiki, said many cell-phone users may hold off making a switch until their current service contracts expire. Breaking such a contract can often be costly, particularly if competitors aren't offering special discounts.

Among the bigger beneficiaries of the new service-switching feature are businesses looking to consolidate wireless phone accounts, said Mark Yamauchi, director of sales for Verizon Wireless Hawaii. In addition, many businesses may have wanted to switch in the past, but couldn't because their wireless phone numbers were painted on trucks or printed on thousands of business cards, he said.

Meanwhile, consumers making the switch should expect a few hiccups in the process, phone industry officials said. The Federal Communications Commission has told phone companies they should move numbers between wireless carriers within 2 1/2 hours of customer requests.

A separate rule allowing consumers to switch their home phone number to a cell phone withstood a challenge by regional phone companies in court on Friday and was to take effect today. Switching a home phone number could take several days, compared with several hours for a cell-phone-to-cell-phone switch.

Adam Goldberg, a policy analyst with Consumers Union, recommends consumers hold off switching carriers until after the initial rush, to let the system's kinks iron themselves out.

"Clearly, if everyone decides to switch on the 24th, it's going to be a heavily overloaded system," he said. Besides, the deals will only get better with time, he said.

Advertiser news services contributed to this story. Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.