ensuring a positive and efficient customer porting experience – the key factors!

This document is offered compliments of BSP Media Group. www.bspmediagroup.com

All rights reserved.

http://www.bspmediagroup.com

http://www.bspmediagroup.com

© Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 1

Ensuring a positive and efficient customer porting

experience – The key factors!

James Wild Dar Es Salaam, Tanzania

15 November 2012


Kuwakaribisha Nyuma

aurasia L Communications Consultants


Objectives

-  Evaluating the different implementation approaches to making number portability a reality

-  Determining the organisational and governance structures for a workable number portability arrangement

-  Building and achieving consensus on MNP service pricing -  Examining the cost implications of setting-up and managing the

portability approach



NP spreading across Africa

Being Assesse

d Being Assesse

d

Being Assesse

d

Being Assesse

d

Being Assesse

d

MNP to be launched

2013 Being Assesse

d

Being Assesse

d

Being Assesse

d

Being Assesse

d

Being Assesse

d

Being Assesse

d

MNP Launched

2011

MNP Launched

2008

MNP Launched

2011

MNP Launched 2006

FNP launched 2010

Being Assesse

d

MNP to be Launched

2013

MNP Launched

2006

MNP to be launched

2013



Why introduce NP?

•  Catalyse further competition •  Reduce market pricing •  Increase consumer choice •  Improve customer and network service and quality •  Drive innovation •  Drive efficiency •  Encourage new entrants

•  Existing market competition? •  Established interconnection between operators ? •  Sufficient service penetration? •  No conflicting initiatives? SIM Registration etc

•  NP a consumer right?



Lets talk CUSTOMER



NP – What the Customer Wants?



MNP driven & owned by the Regulator

Recipient Led – Requires face to face engagement with the customer – Not via web or call centre

Centralised Number Portability Clearing House – Ideally Licenced by Regulator – Multi-Party Contract

Direct Routing - ACQ

Quick – porting completed within hours not days

Simple porting process - automated – real-time porting - 4 stage

Minimal exchange of customer data during the porting process – ideally MSISDN and Donor Operator only!

Centralised customer engagement - validation & communication

Minimal rejection/ failure rates – limited rejection reasons

Real-time updating of MNO Local routing Databases – Make Before Break to minimise service disruption

Cheap or preferably FREE to the consumer

Winback prohibited

Debt not a reason for rejecting porting requests – Pre-Pay subscribers lose credit balance on porting

Off-Net Tariff Notification – NO!

Regulations or legal framework to enforce Operator compliance through punitive financial penalties

Automated Return to Block Operator process via NPC

TEST…. TEST…. TEST….. The customer should not be the Guinea Pig for NP

NP – Best Practices



Evaluating the different implementation approaches to making Number

Portability a reality



Consultation Launch Implementation Development

6 months – 2 years • Led by Regulator • Complete benefit assessment • Define NP Approach/ • Consult with Stakeholders • Implement licence/ regulatory changes

3 – 9 months •  Defined NP milestones • NPC vendor selection • Define NP requirements & business rules etc • Establish stakeholder commitment and support • Establish NP Pre-requisites

Mobile – 6-15 months Fixed – 9-18 months • Inter-Operator Working Group • Develop & implement NP changes :

• Routing • Provisioning • Porting Admin • Retail process • Regulatory

• Complete testing

1-3 months • All • Complete final readiness testing • Progress NP promotional activities • Complete operational handover

NP – The Journey?



NP

Cross Stakeholder NP Journey

NP Vendor Appointed

NP Implementation Plan

End-2-End Testing NP Launch

Routing & Porting Testing

NP Process & Functional Requirements

NP Routing Approach & Testing Schedule

NP Business Rules

NP Routing & Porting Platforms Live

NP Commercial & Consumer Frameworks

NP Public Awareness Campaign



NP Stakeholders?

-  Regulator -  Government

-  Communication Ministries -  LEA -  Data Protection

-  Licenced Operators -  Incumbent -  New Entrant/ Challengers

-  Other Providers -  National/ Local - Fixed -  International Gateway -  Value Added Service Providers -  Foreign Parties?

-  Media

-  Oh … Yes.. CONSUMERS



The Right Approach to Implementation?

-  Ownership? -  Leadership? -  Legal? Regulatory Mandate? -  Realistic Timeframes? -  Effective Governance? -  Clearly Defined Functional

Requirements? -  Clear Targets & Milestones? -  Commitment? -  Openness & Honesty?

Orderly & Efficient

Chaotic & Divisive

OR



Delivering NP – Role of the Regulator?

What are the possible roles Regulators can adopt ?

•  Leader – Actively Directing ? •  Passive Participant? •  Observer?

Responsibility to safeguard consumers and ensure NP supports development of competition – Regulators are the KEY stakeholders in delivering NP

NP is complex and has numerous levers which can radically impact consumer demand

Very few NP programmes are delivered on time – Realism is key in setting & maintaining public and industry expectations

Leaving NP to operators is likely to result in delays, more delays and sub-optimal NP delivery – Successful NP programmes are driven by Regulators

Regulators should set clear & detailed NP requirements, engagement frameworks and milestones – monitor, probe and drive!

Take account of differing interests and tactics of the various stakeholders

Benchmark against other similar jurisdictions and take advice from experts

NP is only implemented once – critical to get IT right first time



Determining the organisational and governance structures for a workable

Number Portability arrangement



Simple & Clear NP Programme Framework is Vital

Senior management commitment from Regulator and Operators is key – overseeing & agreeing key issues via a Steering Group

Simple Working Group structure is most effective – depends on programme complexity & number of stakeholders

•  Single senior & experienced attendees from each operator •  Seconded full-time for the MNP programme •  Bringing in functional experts/ sub teams AS REQUIRED •  Avoid multiple/ parallel Working Groups – lead to delays, conflict and confusion! •  Clear operating rules and voting procedures

Regulator/ Consultant acting as central facilitator to drive, facilitate, mediate & advise ensures progress & momentum are maintained



NP Implementation Programme Structure

Steering Group

NPWG

Legal/Regulatory / Commercial

OLOs/ VAS providers

NPC Vendor

Vendors Other Stakeholders

Advisors

Technology/ Business Process



Effective Cross Stakeholder Collaboration is Key

Clearly defined work streams with roles/ scope

Key milestones & deliverables defined and agreed early

Strong programme management framework

Regular reporting & progress tracking

Issue control discipline

Provide effective problem & dispute escalation avenues

Expect the unexpected & don’t blame, be honest & open

Get It Right First Time



Successful communication & education approaches are: -  Operator Led, -  Working to strict messaging &

co-ordination guidelines set by Regulator,

-  Regulator providing co-ordinated and supporting media & public campaigns

-  Multi-media – leveraging traditional & social media

Driving Public NP Awareness & Understanding is Critical for ALL

Communicate & Educate •  Structured & co-

ordinated •  Simply – building on

simple NP facts •  Repeating key

messages •  Regularly •  Consistently &

Accurately



Managing NP does NOT stop after launch

Operational Working Group – different team? – handover is key

•  Review Porting Vendor Performance •  Review NP demand & Operator Performance •  Identify & address operating and process issues •  Consider improvements and scope evolution

Dealing with Consumer Complaints & Queries – Set-up Consumer Helpdesk or refer to Operators?

Monitoring Stakeholder Performance & Behaviours

•  Mediating & resolving issues and escalations •  Investigating NP issues and driving resolution •  Punishing inappropriate behaviours and performance non-compliance

Promoting NP to the public & media to drive awareness & demand – Regulator or Industry?

Evolving/ expanding NP

•  New market sectors & technologies & services •  Refining and improving the NP efficiency and experience in line with best practice



Building and achieving consensus on NP service pricing



NP Charging Options

Consumer

Porting Vendor Donor

Regulator

Recipient

P

P?? ?


© Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 23 23

NP Charging Approaches

Consumer Porting Charging • Directly impacts consumer porting rates

• Nil charging encourages porting • Charging for porting reduces porting take-up – porting charges should be aligned to monthly ARPU

NPC Porting Charging

• Porting vendor commercial models vary – Critical to benchmark with other countries and optimise through effective tendering

• NPC related porting charges – Charged to Recipient not Donor

Inter-Operator Porting Administration Charging • Should Donor Operators be allowed to recover reasonable porting administration costs from Recipient/

Beneficiary Operators? • Only incremental porting exclusive charges should be considered . Charges should be based on the most

efficient operator – inefficiency should not be rewarded

Set-Up Charges – Typically not recoverable & the responsibility of each stakeholder

• Applies to Operators and Porting Vendor/ NPC • Recovery my be considered if viewed to be in the best interests of the local consumers and market

© Laurasia Associates Limited 2011 – not to be copied or reproduced without the written approval of Laurasia Associates limited



Porting Transaction Based – Low risk to Operators/ High risk to NPC Vendor • Per Port Basis – Initiated vs Successful? • Minimum volume commitments? • Discounted based on volume breaks? • Ancillary charges – SMS/ messages etc • Purely transaction based or combined with monthly fixed service charges?

Monthly Service Charge – Lower Risk to NPC Vendor

• Fixed monthly fee irrespective of porting volumes/ demands • How to allocate across operators? • Equally? • Based on demand generation? Increases complexity and processing of cost allocations

Universal Porting “Tax” – Apply cost of porting service across the whole market

• Charging based on number of active subscribers or number blocks issued to operators • Subscriber based - Can spread the cost of NP across the entire market – penalises consumers who do not port • Number Ranges allocated – can significantly increase NP costs to the industry and force return of unused numbers

Set-Up Charges – NPC Platform Cost Recovery – Reduces risk to Porting Vendor & Increases burden on the Operators

• Can be viewed as the Porting Vendor lacking commitment to NP • Upfront NPC set-up charges can be negotiated to lower porting transaction charges • Adds accounting complexity when new entrants join the NP party

NP Vendor Charging Models


© Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 25 21/05/2011 25

Recent NP Charging Approaches in Africa

Ghana Kenya Nigeria

Set-up •  Nil •  Nil •  Nil

Subscribers •  25 million •  30 million •  100 million

Porting charges •  Between $0.80 - $2.50 •  Monthly Service Fees

•  Around $2.00 •  Transaction Charges

Only

•  $1.20 •  Transaction Charges

Only

Transactional charging models – NPC charges optimised via tender process & benchmarked globally

NPC & Operator Set-Up cost recovery not allowed

Consumer charging – optional (Kenya/ Ghana) or not allowed (Nigeria) – Competitive Reality – Porting is FREE

Reallocation of regulatory number charges? Nigeria?



Examining the cost implications of setting-up and managing the portability

approach



Implementing NP – Cost drivers and considerations

Number Portability is Expensive – typically between $0.7 million and $15 million per operator to set-up & launch – cost driven by variety of different operator factors

Supporting NP has broad range of cost drivers and commercial implications

• Set-up costs • Operating costs • Inter-Stakeholder Porting Transaction costs • Promotional Costs • Customer Acquisition/ Retention Costs • Product/ Service Market Value/ Pricing Impact

Implementing NP involves significant resourcing – internally & externally – typically 50 & 80 man months

Balancing Automated vs Manual Porting Approaches – CAPEX vs OPEX

Benchmark vendor costs – optimise value & insist on fixed priced deliverables to avoid cost escalation

Cleary define and monitor costs directly attributable to NP implementation & incremental NP activity



NP Impacts Every Part of the Business/ Operations

NP

Core Network Business

Systems/ IT

Marketing

Sales/ Channels

Product Management

Customer Services

Finance

Credit Control HR

Legal

Regulatory

Interconnect

Roaming

Procurement

Security/ Risk Mgt



Indicative NP Implementation Costs

Core Network 40%

Business Systems 30%

Business Processes

5%

Training 5%

Regulatory 3%

Marketing 10%

Channels 5%

Programme Management

2%

Routing solution - $300k to $5 million

Billing system upgrade - $50k to $2 million

Interconnect system upgrade - $50k to $250k

Provisioning system automation - $50k to $300k

Programme Management – upto 6 man months

Business Process Development – upto 30 man months

Regulatory support – upto 5 man months

Routing & Porting Testing – upto 10 man months

NP Training – 1-8 hours per employee



-  Potentially reduced or increased subscriber base… -  Net Recipient or Net Donor? -  Reduction in multi-SIM subscribers – targeting the main/ incoming SIM

-  Potentially increase traffic – customer demand for voice/ SMS/ data encouraged by better value driven by competition from 3% to 100%!

-  Alignment of On Net/ Off Net tariffs? -  Better value encourages greater use

-  Offering increased value to entice customers to stay or port -  Handset Subsidies – Post Pay (Retention) & CDMA/ GSM migration programmes -  Recharge Bonuses -  On-Net & Roaming Promotions -  Refer a Friend/ Competitions

-  Increased promotional & marketing costs -  Advertising -  ATL (Above The Line) & BTL (Below The Line) – marketing and outbound sales

activities -  Channel promotional activity -  Press & media education campaigns

Impact of NP on Profitability & Revenues



•  Access to porting is a right? But launching NP is very expensive •  NP drives increased value into markets

•  Opportunities for market share gain or lose •  Stimulates increased traffic & demand

•  Differing demand for NP services across Africa •  Market penetration •  Porting cost to consumers •  Porting timeframe and process complexity •  Consumer awareness & operator marketing •  Industry readiness

•  Launching NP is a complex and risky activity requiring detailed engagement across the stakeholders. Launching NP takes time

•  Regulator plays a key role in launching NP successfully •  Africa is driving best global practice in efficient NP •  Specific challenges in Africa

•  Alignment to SIM registration •  GSM vs CDMA •  Making porting available and easily across the country •  Security vs efficiency

•  Don’t re-invent the wheel! – Re-use and adapt

NP works in Africa?



-  Jamaica - 2012 – Current – LIME, Jamaica - Number Portability Consultancy -  Kazakhstan - 2012 – Current – Ministry of Communications, Kazakhstan/ Ernst &

Young – Mobile Number Portability Consultancy -  Turks & Caicos Islands - 2012 – Current - Turks & Caicos Islands Telecommission,

Turks & Caicos - Number Portability Consultancy -  Bahamas - 2012 – Current - Utilities Regulation & Competition Authority (URCA),

Bahamas - Number Portability Consultancy -  Nigeria - 2010 - Current Nigerian Communications Commission / KPMG - Mobile

Number Portability – Number Portability Consultancy & Programme Management -  Cayman Islands - 2011 - LIME, Cayman Islands - Number Portability Consultancy -  Ghana - 2010 – 2011 - Vodafone – Ghana –Mobile Number Portability Programme

Management -  Gibraltar - 2009 - 2012 GibTelecom – Gibraltar – Number Portability Consultancy -  Kenya - 2010 – 2011 Safaricom – Kenya – Mobile Number Portability Consultancy -  Qatar - 2010 Vodafone – Qatar - Number Portability Consultancy -  Bermuda - 2010 Keytech Group – Bermuda - Number Portability Consultancy -  Isle of Man - 2009 Manx Telecom – Isle of Man – Mobile Number Portability

Programme Management -  Channel Islands - 2008 Airtel Vodafone – Guernsey/ Jersey – Mobile Number

Portability Programme Management and Regulatory Consultancy

Laurasia Associates NP Credentials



-  Number Portability :- -  End-2-End Number Portability Development and Implementation Programme Management; -  Specialist Network, Business System, Process, Retail and Regulatory Consultancy; -  Operational and Regulatory Impact Assessment; -  Regulator Engagement; and -  Non Telecommunications Switching and Portability

-  Regulatory Consultancy :- -  Spectrum utilization; -  Statutory regulated accounting; -  Licence application; -  Mobile network design, roll-out and launch; -  Mobile Money Regulation -  SIM registration -  E-Gaming regulation & operation -  Wholesale product and commercial framework; -  Termination and transit charging; -  Roaming; -  Interconnection; -  MVNO; -  Mobile site safety and planning: and -  Site sharing

Laurasia Associates Consultancy Services

ensuring a positive and efficient customer porting experience – the key factors!

Documents

np laurasia associates

np approach

np best practices

beingdassesse assesse

dbeing assesse

beinglaunched assesse

live porting end

block operator process