Table of Contents:

Definition and Overview

1. Introduction

2. Types of Number Portability

3. Wireline LNP Architecture and Processes

4. Wireless LNP Status, Requirements, Architecture, and Processes

5. Number Portability Deployment Options

6. Number Pooling

7. Conclusion

Self-Test

Glossary

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Federal Communications Commission (FCC) Mandate on Number Portability

Pursuant to the statutory requirement in Section 251(b)(2) of the Telecommunications Act of 1996 to provide telephone number portability, we require all LECs to begin to implement a long-term service provider portability solution that meets our performance criteria in the 100 largest Metropolitan Statistical Areas (MSAs) no later than October 1, 1997, and to complete deployment in those MSAs by December 31, 1998, and that Number Portability must be provided in these areas by all LECs to all telecommunications carriers.

We require all cellular, broadband PCS, and covered SMR providers to have the capability of delivering calls from their networks to ported numbers anywhere in the country by December 31, 1998, and to offer service provider portability, including the ability to support roaming, throughout their networks by June 30, 1999.

—FCC Ruling, July 2, 1996 (Docket No. 95-116)

Overview

The Telecommunications Act of 1996 tore down most of the significant barriers to unfettered competition in telecommunications. However, the inability of end users to retain their telephone numbers when changing service providers or types could potentially dissuade consumers from making such a change. Such a simple yet considerable obstacle might significantly hinder competition and the growth of the industry as a whole. With the addition of Section 251 (b)(2) to the Act, Congress addressed this obstacle by defining number portability and requiring that all carriers deploy it, as well as setting deadlines for implementation. FCC Docket No. 95-116 (In the Matter of Telephone Number Portability) and subsequent FCC orders and reconsiderations reinforced Congress’s mandate and set the machinery in motion to implement number portability.

The actions of both Congress and the FCC will enable consumers and businesses to choose new providers, services, and locales while retaining their phone numbers, fostering competition in the telecommunications industry. To ensure standardization across platforms for all participants, the FCC instructed the North American Numbering Council (NANC) to determine which number portability method to employ. Several options were investigated, but the location routing number (LRN) method appeared to be the most efficient and is now successfully implemented in the wireline environment.

The NANC then created the Local Number Portability Working Group (LNPA–WG), and delegated it authority to select the appropriate technology, create standards, determine operational processes, and develop and implement a deployment strategy. To fulfill its responsibilities, the LNPA–WG was granted the authority to convene appropriate subcommittees as needed. Subcommittees created over the past several years include the National Number Pooling and Slow Horse groups, as well as the Wireless Number Portability subcommittee, which identifies integration issues between the wireless and the wireline industries. NeuStar was named the Number Portability Administrator and operates the Number Portability Administration Center (NPAC).

Regulators have mandated that number portability be implemented before the regional Bell operating companies (RBOCs) are allowed to offer long-distance service within their regions. Conversely, interexchange carriers (IXCs) and competitive local-exchange carriers (CLECs) require LNP to gain a competitive foothold in the local loop. This ability to enter local markets on a competitive basis is considered key to fair and open competition and is directly addressed through FCC Docket No. 95-116.

CLECs are taking advantage of opportunities to compete with incumbent local-exchange carriers (ILECs). The local service market—the primary market identified by CLECs—represented more than $109 billion in total revenue in 1999, according to the FCC. Also according to the FCC, CLECs are attempting to gain a significant share of this massive market, and in fact, they garnered 5.8 percent of local service revenues in 1999. This penetration is largely predicated on the ability of current ILEC customers to change service providers without changing their phone numbers. Some CLECs have reported that more than 90 percent of their subscriber growth is a direct result of number portability. Wireline LNP has been implemented within the top 100 MSAs in the United States, as mandated, and is gradually being adopted outside of these areas. As of the end of 2000, more than 11 million wireline numbers nationwide had been ported.

After the Cellular Telecommunications Industry Association (CTIA), acting on behalf of the wireless community, asked for and received two separate deadline extensions, the FCC’s current mandate requires that wireless carriers, including cellular and personal communications service (PCS) carriers, implement service provider portability by November 24, 2002.

When fully and nationally implemented by both wireline and wireless providers, portability will remove one of the most significant deterrents to changing service, providing unprecedented convenience for consumers and encouraging unrestrained competition in the telecommunications industry.