(April 17, 2003) - Should the FCC force wireless carriers to allow consumers to keep their cell phone numbers when switching carriers? The CTIA this week argued before a U.S. Court of Appeals for the District of Columbia that the FCC has no right to make that request, particularly if that requirement is implemented in the interest of encouraging competition within the industry. "Requiring wireless number portability in the name of increasing competition is as realistic as a fish on a bicycle," said Tom Wheeler, president and CEO of the CTIA. The appeals court decision is not expected for several months.

"Wireless number portability is a double deception for consumers: money goes to pay for regulation instead of improved services, and without further action by the FCC most consumers won't be able to take their wired phone number to a wireless phone. In the name of 'promoting competition' the FCC barely touches monopoly wired phone providers while siphoning funds from improved wireless service. If that isn't a fraud on consumers, I don't know what is," said Wheeler.

"The wireless industry is already hyper-competitive," stated Wheeler. Offering statistics to back his case, he added, "One-third of all wireless consumers switch carriers every year, prices have fallen 30% in the last five years and 90% of consumers can choose among four or more wireless carriers. Forcing the industry to build and maintain a number portability system will only drain billions of dollars away from other, more pressing consumer priorities such as a improved coverage and fewer dropped calls." He added, "We are proud to lead this fight for better phone service and against random regulation and we look forward to the court's decision."

Andrew McBride, attorney for Verizon Wireless and the CTIA, told the federal court that the FCC overstepped its authority in requiring wireless number portability. He also argued that the cost of providing portability will hurt carriers' ability to provide better wireless coverage at lower cost. Wireless industry estimates of the costs of such a requirement range as high as $1 billion in the first year and $500 million for subsequent years.

Chris Murray, an attorney for Consumers Union, publisher of Consumer Reports magazine, said small businesses and self-employed people are particularly harmed when switching carriers because they lose numbers known by their customers.

Following in the footsteps of a 1996 congressional ruling that traditional phone customers have that right when switching carriers, the FCC ordered wireless carriers to offer the same option in 100 U.S. cities by June 1999. That deadline's been extended three times already, and the CTIA hopes to block it entirely. In the UK, Hong Kong, and Australia, wireless number portablity already exists as an option for cell phone users.