Last Year, Approximately 3.27 Million Number Portability Cases Among the Three Major Mobile Carriers
19% Increase Compared to the Previous Year... Highest Growth Rate Since the Implementation of the Mobile Device Distribution Improvement Act
Last year, the growth rate of number porting among the three major mobile carriers reached its highest level since the enforcement of the Act on the Improvement of the Distribution Structure of Mobile Communication Devices (Device Distribution Act) in 2014. This is interpreted as being influenced by the gradual deregulation prior to the abolition of the Device Distribution Act. As the bill is set to be abolished this year, number porting is expected to increase further.
According to the status of mobile phone number porting from the Korea Telecommunications Operators Association (KTOA) on the 6th, the number of number porting cases between the three major carriers (SKT, KT, LG Uplus) and from Mobile Virtual Network Operators (MVNOs) to the three major carriers last year was 3,269,659, an increase of 18.83% (518,267 cases) compared to the previous year. In terms of growth rate, this was the largest increase since the Device Distribution Act was enforced in 2014.
In the first year of the Device Distribution Act enforcement in 2014, the number of number porting among the three major carriers decreased by 28.2% compared to the previous year, and it further decreased by 21.63% the following year. Even afterward, the growth rate either declined compared to the previous year or remained in single digits.
The notable increase in number porting last year was largely due to the gradual deregulation before the abolition of the Device Distribution Act. In March, the Korea Communications Commission revised the Device Distribution Act notification to allow carriers to provide switching subsidies up to 500,000 KRW to users who port their numbers. Additionally, the frequency of carriers’ subsidy disclosures was changed from twice a week to daily, enhancing the carriers’ marketing autonomy. In March, when the switching subsidy was implemented, the number of number porting cases among the three major carriers increased by 11.78% (28,082 cases) compared to the previous month.
Number porting to the three major carriers is expected to become even more active this year. This is because the carriers’ obligation to disclose device subsidies and the cap on additional subsidies at 15% of the disclosed subsidy at retail stores have been abolished, which will further increase the carriers’ marketing autonomy regarding subsidies.
However, MVNOs are expected to face deeper challenges. Last year, the number of number porting cases from the three major carriers and MVNOs to MVNOs was 3,025,529, which increased by only 163,947 cases (5.73%) compared to the previous year. An industry insider from the MVNO sector said, "The abolition of the Device Distribution Act is not a boon for the MVNO industry, and the fact that from next year MVNOs will have to negotiate wholesale usage fees directly is also a burden."
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