Measuring the Benefits of Mobile Number Portability

Increasing numbers of countries require mobile telephone networks to offer mobile number portability (MNP). MNP allows customers who wish to switch mobile operator to keep their mobile numbers, avoiding the costs of switching to new numbers. Ex ante assessments suggest that MNP should reduce switching costs and strengthen competition. In this paper, we test MNP’s impact on market outcomes using international time-series cross-section data. We find that MNP significantly increases average mobile telephony retail prices and churn (a proxy for switching).