Ensuring a Positive and Efficient Customer Porting Experience – The Key Factors!

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Ensuring a Positive and Efficient Customer Porting Experience – The Key Factors!

  1. 1. This document is offered compliments ofBSP Media Group. www.bspmediagroup.com All rights reserved.
  2. 2. Ensuring a positive and efficient customer porting experience – The key factors! James Wild Dar Es Salaam, Tanzania 15 November 2012© Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 1
  3. 3. Kuwakaribisha Nyuma© Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 2
  4. 4. Objectives L aurasia Communications Consultants-  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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 3
  5. 5. NP spreading across Africa L aurasia Communications Consultants MNP Launched Being MNP 2006 Assesse Launched d 2008 MNP to be launched MNP to be 2013 Being launched Assesse 2013 d Being Assesse Being Being d Assesse Assesse d d Being MNP Assesse Launched d 2011 Being MNP Assesse Launched MNP to be d 2011 Launched 2013 Being Assesse Being d Assesse d Being Assesse Being d Assesse Being d Assesse d MNP Launched 2006 FNP launched 2010 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 4
  6. 6. Why introduce NP? L aurasia Communications Consultants •  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? © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 5
  7. 7. Lets talk CUSTOMER L aurasia Communications Consultants © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 6
  8. 8. NP – What the Customer L aurasiaWants? Communications Consultants © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 7
  9. 9. NP – Best Practices L aurasia Communications ConsultantsMNP driven & owned by the RegulatorRecipient Led – Requires face to face engagement with the customer – Not via web or call centreCentralised Number Portability Clearing House – Ideally Licenced by Regulator – Multi-Party ContractDirect Routing - ACQQuick – porting completed within hours not daysSimple porting process - automated – real-time porting - 4 stageMinimal exchange of customer data during the porting process – ideally MSISDN and Donor Operator only!Centralised customer engagement - validation & communicationMinimal rejection/ failure rates – limited rejection reasonsReal-time updating of MNO Local routing Databases – Make Before Break to minimise service disruptionCheap or preferably FREE to the consumerWinback prohibitedDebt not a reason for rejecting porting requests – Pre-Pay subscribers lose credit balance on portingOff-Net Tariff Notification – NO!Regulations or legal framework to enforce Operator compliance through punitive financial penaltiesAutomated Return to Block Operator process via NPCTEST…. TEST…. TEST….. The customer should not be the Guinea Pig for NP © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 8
  10. 10. L aurasia Communications ConsultantsEvaluating the different implementation approaches to making Number Portability a reality © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 9
  11. 11. NP – The Journey? L aurasia Communications Consultants Consultation Development Implementation Launch 6 months – 2 years 3 – 9 months Mobile – 6-15 months 1-3 months Fixed – 9-18 months • Led by Regulator •  Defined NP • All • Complete benefit milestones • Inter-Operator Working • Complete final assessment • NPC vendor selection Group readiness testing • Define NP Approach/ • Define NP • Develop & implement NP • Progress NP • Consult with requirements & changes : promotional Stakeholders business rules etc • Routing activities • Implement licence/ • Establish stakeholder • Provisioning • Complete regulatory changes commitment and • Porting Admin operational support • Retail process handover • Establish NP Pre- • Regulatory requisites • Complete testing © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 10
  12. 12. Cross Stakeholder NPJourney L aurasia Communications Consultants NP Vendor NP Implementation Appointed Plan NP NP Process NP Routing & Functional Approach & Requirements Testing Schedule NP Routing & Porting Platforms Routing & Live Porting End-2- Testing EndNP BusinessRules Testing NP Commercial NP Launch & Consumer NP Public Frameworks Awareness Campaign © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 11
  13. 13. NP Stakeholders? L aurasia Communications Consultants -  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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 12
  14. 14. The Right Approach to L aurasiaImplementation? Communications Consultants-  Ownership? Orderly & Efficient-  Leadership?-  Legal? Regulatory Mandate?-  Realistic Timeframes?-  Effective Governance?-  Clearly Defined Functional Requirements? OR-  Clear Targets & Milestones?-  Commitment?-  Openness & Honesty? Chaotic & Divisive © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 13
  15. 15. Delivering NP – Role L aurasiaof the Regulator? Communications Consultants 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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 14
  16. 16. L aurasia Communications Consultants Determining the organisational andgovernance structures for a workable Number Portability arrangement © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 15
  17. 17. Simple & Clear NP Programme L aurasiaFramework is Vital Communications Consultants 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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 16
  18. 18. NP ImplementationProgramme Structure L aurasia Communications Consultants Steering Group NPC NPWG Advisors Vendor Legal/Regulatory / Commercial Technology/ Business Process Other OLOs/ VAS Vendors Stakeholders providers © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 17
  19. 19. Effective Cross Stakeholder L aurasiaCollaboration is Key Communications Consultants 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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 18
  20. 20. Driving Public NP Awareness &Understanding is Critical for L aurasia Communications ConsultantsALLSuccessful communication &education approaches are:-  Operator Led,-  Working to strict messaging & co-ordination guidelines set by Regulator,-  Regulator providing co- ordinated and supporting Communicate & Educate media & public campaigns •  Structured & co--  Multi-media – leveraging ordinated •  Simply – building on traditional & social media simple NP facts •  Repeating key messages •  Regularly •  Consistently & Accurately © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 19
  21. 21. Managing NP does NOT stop L aurasiaafter launch Communications Consultants 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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 20
  22. 22. L aurasia Communications ConsultantsBuilding and achieving consensus on NP service pricing © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 21
  23. 23. NP Charging Options L aurasia Communications Consultants Consumer P Donor ? Porting Vendor P Recipient ? Regulator ? © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 22
  24. 24. NP Charging Approaches L aurasia Communications ConsultantsConsumer 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 ARPUNPC 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 DonorInter-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 rewardedSet-Up Charges – Typically not recoverable & the responsibility of eachstakeholder •  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 23 © Laurasia Associates Limited 2011 –– not to be copied or reproduced without the written approval of Laurasia Associates limited © Laurasia Associates Limited 2012 not to be copied or reproduced without the written approval of Laurasia Associates limited 23
  25. 25. NP Vendor Charging Models L aurasia Communications Consultants 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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 24
  26. 26. Recent NP Charging L aurasia Approaches in Africa Communications Consultants Ghana Kenya NigeriaSet-up •  Nil •  Nil •  NilSubscribers •  25 million •  30 million •  100 millionPorting charges •  Between $0.80 - $2.50 •  Around $2.00 •  $1.20 •  Monthly Service Fees •  Transaction Charges •  Transaction Charges Only 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? 21/05/2011 25 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 25
  27. 27. L aurasia Communications Consultants Examining the cost implications ofsetting-up and managing the portability approach © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 26
  28. 28. Implementing NP – Cost L aurasiadrivers and considerations Communications Consultants 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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 27
  29. 29. NP Impacts Every Part of the L aurasiaBusiness/ Operations Communications Consultants Core Network Security/ Business Risk Mgt Systems/ IT Procurement Marketing Sales/ Roaming Channels NP Product Interconnect Management Customer Regulatory Services Legal Finance Credit HR Control © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 28
  30. 30. Indicative NP L aurasia Implementation Costs Communications Consultants Routing solution - $300k to $5 million Programme Channels Management Billing system upgrade - $50k to $2 million 5% 2% Marketing Regulatory 10% 3% Interconnect system upgrade - $50k to $250k Training Core Network 5% 40% Provisioning system automation - $50k to $300k Programme Management – upto 6 man monthsBusiness Business SystemsProcesses 30% Business Process Development – upto 30 man 5% months Regulatory support – upto 5 man months Routing & Porting Testing – upto 10 man months NP Training – 1-8 hours per employee © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 29
  31. 31. Impact of NP on Profitability L aurasia& Revenues Communications Consultants -  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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 30
  32. 32. NP works in Africa? L aurasia Communications Consultants•  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 © Laurasia Associates Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 31
  33. 33. Laurasia Associates L aurasiaNP Credentials Communications Consultants-  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 Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 33
  34. 34. Laurasia Associates L aurasiaConsultancy Services Communications Consultants-  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 Limited 2012 – not to be copied or reproduced without the written approval of Laurasia Associates limited 34

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