MOBILE PHONE USERS (Mobile phone portability for)

[Mr Speaker in the Chair]

Mr Tan Soo Khoon asked the Acting Minister for Information, Communications and the Arts if the Infocomm Development Authority will allow full mobile phone portability for mobile phone users so that they can retain their existing telephone numbers when they switch from one service provider to another.

The Acting Minister for Information, Communications and the Arts (Mr David T. E. Lim): Sir, mobile number portability refers to the ability of mobile customers to retain their telephone number when they switch between the different mobile operators. IDA mandated mobile number portability since the start of mobile competition on 1st April 1997, when M1 entered the market.

Several technical solutions can be used to achieve mobile number portability. In line with IDA's principle of technology neutrality, IDA did not mandate which method operators should use. Up until now, the implementation of mobile number portability has been industry-driven.

IDA recognises that the current mobile number portability solution adopted by the mobile operators has a number of limitations. Specifically, SMS messages are not portable. This means that a user cannot receive SMS messages sent to his original number once he switches to a different mobile operator. Given the high usage of SMS in Singapore, and the projected proliferation of mobile data services, the lack of SMS portability could become a significant barrier to migration between mobile operators. This would then inhibit mobile competition.

The limitation on SMS portability can be overcome. However, this requires additional investments by the mobile operators, and the end users could end up bearing the higher cost.

In view of the potential impact on both the mobile operators and customers, IDA has decided to re-convene the Mobile Number Portability (MNP) Working Group so that the mobile operators could engage in a discussion of all the implications of a migration to a full mobile number portability solution. This would allow IDA to weigh the pros and cons, including the likely impact on consumers, before deciding whether or not it is timely to mandate full number portability.

Mr Tan Soo Khoon (East Coast): Sir, the Minister's reply was actually referring to call forwarding and SMS portability, but I am actually talking about retention of telephone numbers for mobile phone users. So I believe he has not answered the question.

Mr David Lim: Sir, call forwarding is a way to achieve number portability. In other words, if one switches operators, yes, he will get a new telephone number. But if someone calls his old telephone number, he will still receive the call. So, in that sense, his number has not changed to the people who are calling him, and that makes it portable.

Mr Tan Soo Khoon: Sir, we pay for the call forwarding, and that is the point I am trying to make. Is the Minister aware that in other countries, where MNP has been introduced, it has resulted in greater convenience for consumers? It has also resulted in cheaper telephone rates, and it has also not affected the profitability of telephone companies.

Mr David Lim: Yes, I am aware that a number of countries implement a full network-based mobile number portability system. But this is a much involved technical solution. It does require setting up a database of numbers, as we are told, and it does require additional investment by the mobile operators. This will increase the cost to the mobile operators, and this cost must work, in some way, into the system of charging users. But, of course, the potential advantage of this is that it would make competition more viable in the mobile telephony industry, and therefore this is the reason why we are taking another look at the issue.

Mr Speaker, Sir, there is no free lunch, so to speak. At the end of the day, if we want the convenience of this service, if we want the convenience of keeping our own telephone number, there is a solution to it. But this is the solution that is not costless, and therefore we will have to weigh carefully the pros and cons of whether or not it is advantageous to introduce this. Right now, those who want number portability pay for the service, and they pay a charge of several dollars a month, and they get the benefit of number portability. But if we implement a network-wide solution, then all users will have to pay for the higher cost, whether or not they change the telephone numbers. So there are pros and cons, and this is what we will weigh out.

Mr Tan Soo Khoon: Sir, am I right in saying that in implementing a full MNP system in Singapore, it would cost about $100 million which, in the larger context of things, is really not very expensive? On the point of paying charges for full MNP, is the Minister aware that, in Hong Kong, the introduction of MNP resulted in a 60% drop in tariffs, as operators braced themselves for the change and they became more competitive? Actually, in the end, the consumers benefited.

Mr David Lim: Sir, tariffs will change in response to competition in the marketplace. I am not sure exactly, in the case of Hong Kong, whether it changed only because of MNP implementation. But, certainly, to the extent that you have got competition in the marketplace, competition will drive rates to competitive levels. And this is what we intend to do in the Singapore marketplace, which is to ensure that there is competition in the marketplace, and we have that today. This is why, as I said yesterday in this House, that we have a very high level of mobile usage, mobile penetration. That shows that the existing model has not hindered the growth of the marketplace. Nonetheless, we will look at the matter. I do not know exactly how much it would cost at this point in time, because technology is changing all the time and there could be advancements that could bring the cost down. If so, then that would make it even more viable for the industry to come together and implement a network-wide mobile number portability system.