Switching mobile phone providers will take 15 minutes under new plans
From autumn, switching mobile phone providers could take just 15 minutes, under new Ministry of Justice plans aimed at curbing anti-competitive practices.
Each year in Estonia, nearly 70,000 number porting processes, where users want to take their existing number to another provider, are left uncompleted. The ministry says the lengthy period, up to a week, required to transfer a number, is a major factor here.
The mobile phone market in Estonia is dominated by three companies: Telia, Elisa and Tele2. This "triopoly" also makes it easier for the original provider to undercut a prospective new supplier on price. As a result, the user often stays with their original telco after it has contacted them offering a cheaper price to stay with them. On the other hand, those who do not attempt any change of service providers may end up paying more for the same package.
Minister of Justice and Legal Affairs Liisa Pakosta (Eesti 200) said this cut-down in time to switch suppliers, from four to six days to 15 minutes, will "certainly be the fastest in Europe, and probably the world."
"This will lead to internet packages or contracts concluded with Telia, Elisa and Tele2 becoming cheaper for people. Competition will become real competition. There will no longer be buybacks through under-the-counter prices; instead, those under-the-counter prices will immediately become over-the-counter prices," Pakosta explained.
About half of all number porting attempts are canceled due to this reason, Pakosta said, adding that the discounted price represents the real mobile phone price.
"That under-the-counter price is the real price, as no company offers services below market value or below profitability. That should be the list price. In order for list prices to be fair to people and for competition to exist also in list prices – that is, in the prices you see on companies' websites – we are making very fundamental changes," Pakosta went on.
The technical groundwork required to speed up the process has already been completed, according to Pakosta, and is subject to ministerial order. The bill "is already at the Government Office and is about to reach a cabinet meeting – whether it gets there this Thursday or next is still unclear, but in any case it will reach the Riigikogu quite soon," Pakosta went on.
The bill itself would need to pass a Riigikogu vote before entering into law and the changes made.
A prerequisite for speeding up the process is the creation of a new database, which is already underway, the ministry said.
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Editor: Andrew Whyte
