Number portability hits Korea

Number portability allows mobile phone subscribers to carry their number from one mobile phone company to the next, basically free of charge. Some surcharges might apply, however, when one is than calling from the new operator since the call still runs on the old operator's network, at least for a while.

Nevertheless, it allows consumers to switch and that is the greatest benefit. The problem with telecommunications companies is that they lock in their subscribers in long-term contracts. However, a subscriber might realise, normally, that a better offer is on the card may be two months down the road, but he or she cannot change, because of the lock-in period. Basically, those contracts tend to "punish" longterm subscribers, instead of supporting them, since longterm subscribers normally get worse contracts than new subscribers.

Number portability turns the table somewhat around. It forces companies to provide value to their subscribers - they might ask themselves, why should they stay with a company that doesn't offer great service. Why shall they pay more, if they don't get great service - be it in form of customer service or value added content service that fits their need.

Frequently, when number portability is introduced, customers flock from one company with bad service to one that is known for better service. And also, as it happens now, companies that suffer from "outmigration" of customers like to blame the marketing strategies of the companies that gain subscribers. They don't realise that in order to win in this newly designed game, they simply need to push the limits. Customers don't come easy anymore. They have more choice and they use it. Without contracts that is easier.

(By Asia Business Consulting)