Mobile unlocking— the hidden cost of ‘free’ number portability
LOCAL operators of mobile unlocking and repair shops could see an increase in profits from the Government’s decision to implement number portability.
Currently, industry players estimate that mobile phone unlocking accounts for less than 20 per cent of revenue but has the potential to double in size from the new initiative. In the first week of introduction both Digicel and LIME/Flow said that they had converted more than 1,000 customers each.
However, mobile switchers will now require the service of technicians to unlock the mobile device, as the system only allows the seamless switch of the SIM-card.
Technician of Papine-based mobile unlocking and repair shop, Michael Jones, told the Jamaica Observer that mobile phone unlocking — which ranges in cost from $1,500 to $25,000 — is often used by individuals seeking to unlock internationally branded phones including AT&T, Verizon and T-mobile.
“Once in a while you might see someone coming in with local brands such as Huawei or the Digicel-branded phones for unlocking to switch to another mobile carrier,” Jones said. “But roughly 70 per cent of the business comes from the sale of phone cases now, so we could see more even distribution of revenue from cellphone repairs, unlocking and accessories with number portability as more local brands may require the service.”
Co-owner of Quick Fix Electronics in Half-Way-Tree, Yanique Gayle, agreed.
“If someone decides that they will switch their mobile carrier, the next step is to unlock your device or buy another phone. It works for this industry because we might see an increase in the customer base,” she told the Sunday Finance.
With number portability, fixed-line and mobile phone customers can switch networks while keeping their original phone numbers. The system will also enable greater competition among players within the telecoms industry, resulting in lower prices and more innovative products and service.
So far, transfers have been taking place between communication giants LIME and Digicel, along with new industry player Island Net.
“We have seen some 200 or so transfers taking place and we anticipate that as the public education continues, more and more persons will exercise that tremendous weapon,” said Phillip Paulwell Minister of Science, Technology, Energy and Mining.
