WLNP is a boon to customers

The Wireless Local Number Portability (WLNP) rules that went into effect last week give customers more power to negotiate with providers and are likely to result in significant cost savings for enterprises.

WLNP is expected to increase monthly customer turnover among wireless customers, which may drive a 15 to 20 percent drop in wireless pricing over the next year, according to Patrick Comack, a telecommunications analyst with Guzman and Co.

Enterprise customers are now in the driver’s seat when negotiating wireless contracts, said Randy De Lorenzo, vice president of wireless services for Telwares Communications, a consultancy that helps Fortune 1000 companies negotiate telecom services.

Before number portability, enterprises were reluctant to switch wireless carriers because of the  “relocation nightmare” of changing hundreds or thousands of phone numbers, De Lorenzo said. “For the first time, we’re talking about real competition in the wireless industry. The time’s right to do something about it,” he added.

Large enterprises can just about name their price for wireless service, De Lorenzo said, adding that he expects significant cost savings for large businesses as they renegotiate contracts.

Portability also will make it easier for large corporations to consolidate contracts made by different departments in different regions, giving them greater bargaining power for volume discounts, according to Martin Dunsby, vice president of sales and operations for consultancy inCode Telecom Group.

Number portability is motivating wireless carriers to offer more incentives for customers to stay put, said Clay Owen, a spokesman for Cingular Wireless.

Increasingly, it is the offerings on top of the base services that set vendors apart.

Calvin Rice, network systems manager at Corrugated Supplies, said WLNP does not immediately spur him to move his company’s Nextel mobile accounts to another carrier. However, he wishes the service were easier to manage. Other carriers are just starting to offer two-way radio capability, a key feature for Corrugated’s employees, Rice said. He said he won’t feel comfortable moving until two-way offerings mature and more competition emerges.

De Lorenzo cautioned telecom managers to be careful when making a change. With some wireless carriers predicting that switching numbers from one carrier to another could take up to 24 hours, enterprises should avoid changing midweek, and they may want to wait until next year to see how number portability plays out, he said.

Another consideration is that most wireless customers are under service contracts that charge fees for  leaving early.

“I think it’s going to cause a complete mess,” Comack said of the impact on the wireless industry. But  he is hopeful the chaos will calm within 12 to 18 months.