PCC: Number portability law spurs telco competition, awareness lacking

By Joseph Bernard A. Marzan

QUEZON CITY — The Philippine Competition Commission (PCC) has found that the Mobile Number Portability (MNP) Act has encouraged more competitive behavior among mobile service providers but remains underutilized due to low public awareness.

In its study titled “Competition Impact Assessment of the Mobile Number Portability Act (RA No. 11202),” the PCC evaluated whether Republic Act No. 11202 has fostered competition and expanded consumer choice in the telecommunications sector.

Enacted in 2019, the MNP Act allows subscribers to retain their mobile numbers when switching between mobile service providers free of charge.

The law aims to reduce switching costs and empower consumers to respond to price, service quality and promotional offerings.

Porting services became operational on Sept. 30, 2021, some 27 months after the implementing rules and regulations took effect in June 2019, following delays caused by the COVID-19 pandemic.

The study analyzed switching data from September 2021 to December 2024, provided by Telecommunications Connectivity Inc. (TCI), the MNP clearing house jointly established by the country’s three major telcos.

It found that the law delivered its intended effect of fostering more competitive behavior among mobile service providers.

During the first 10 months of implementation, DITO Telecommunity recorded a “promising influx” of subscribers switching from the two incumbents, though the trend declined in later months.

Overall, Smart Communications emerged as a net recipient of port-ins, while Globe Telecom became a net donor during the period covered by the study.

As of December 2024, a total of 71,704 subscribers had availed themselves of MNP services, representing less than 0.05 percent of total registered mobile numbers in the country.

The PCC noted that of the annual porting capacity of 10 million slots contracted by TCI from its technical provider, more than 99 percent remained unused, with only around 22,000 subscribers availing of MNP services each year from 2022 to 2024.

A subscriber survey conducted in August and September 2024 among 452 respondents showed that 80 percent were not at all familiar with the MNP Act.

Among those unfamiliar with the law, 30.94 percent said they would likely switch providers if they knew MNP existed.

“Conceptually, if subscribers are unaware of their freedom to switch to another MSP when dissatisfied, they may not realize the full benefits of the bargaining power offered by RA No. 11202,” the study said.

The PCC recommended that TCI and the National Telecommunications Commission conduct joint awareness campaigns to reintroduce the MNP Act to the public.

The assessment also advised revisiting the current annual porting capacity of 10 million slots in the next contracting cycle or by the end of the purchase agreement in September 2026 to minimize costs associated with unused capacity.

Under the law, porting applications must be processed within 48 hours.

From September 2021 to February 2024, 88.18 percent of porting applications complied with the 48-hour requirement.

The study further found that the law provides safeguards against abuse of dominant position, discriminatory practices, and misuse of subscriber data and does not impose advertising restrictions that would limit competition.

However, it flagged two issues with indirect effects on competition: the low level of public awareness and the high proportion of unused porting capacity.

The PCC said the assessment forms part of its broader mandate to review government regulations and advocate pro-competitive policies under the National Competition Policy’s whole-of-government approach.