Kenya - A dutch firm was chosen by CCK to supply Mobile Number Portability

[daily nation] The telecoms industry regulator has picked a Netherlands-based firm, Porting Access BV, to mange a service that allows phone users to change providers without losing their phone numbers.

The Communications Commission of Kenya director-general Charles Njoroge says the service will be up and running in July this year.

According to Mr Njoroge, the rollout of mobile number portability (MNP) as technically known, will enhance competition and consumer convenience.

In October last year, CCK invited bids from firms that could manage the database for mobile number portability, from which Porting Access BV beat Seven Seas Technologies (Kenya, Infozillion (K) Ltd, Pluton ICT Ltd (Kenya), Teletech from Slovenia, Saab Grintek Technologies (South Africa) and Systor Group of Companies to emerge victor.

Will benefit

Industry players argue that the move will benefit operators such as Yu, Telkom Kenya's Orange and Zain, who have been pressing the regulator to shift the dynamics of competition by making it easier for consumers to move across networks.

However, analysts say the move might not make any impact in the Kenyan market.

From the country's about 20 million subscribers, Safaricom controls 78 per cent, Zain Kenya 17 per cent, Orange 4 per cent and Yu 1 per cent.

New market entrants have found it difficult to dent Safaricom's position despite launching vicious price wars in the voice and data segments.

Mr Vitalis Olunga, chairman, GSM Africa says MNP in general has been having insignificant impact, if any, in the markets where it has been implemented.

"In some cases, it has even worked in favour of the dominant players. It may only be an additional cost and introducing inefficiency in the network as the ported number has to be active in more than one network," says Mr Olunga.

He says a problem in the donating network essentially affects the ported numbers in the recipient networks and vice versa.

Mr Muriuki Mureithi, consultant with Summit Strategies Ltd says the porting fee extends the walled garden concept even further and thus discriminates apart from segmenting a target market for MNP perhaps as you note for the high end.

To use the service, subscribers will have to register with a Service Provider Number Portability (SPNP) and pay a specified fee, which CCK has set at Sh1,000 to offset set up and upgrade costs.

Kenya: Phone Users to Switch Firms But Keep Their Lines From July