Direct Mail Increasing in Run Up to Mobile Number Portability

Due to the latest US telecoms regulator, the FCC ruling regarding wireless phone number portability, as of November 2003, consumers will be able to switch providers while retaining their phone number. Based on Mintel's Comperemedia's analysis of telecom direct mail activity, the key wireless companies are getting a head start on retaining their customer base prior to the portability ruling becoming effective.

The overall estimated direct mail volume to current customers more than doubled from January 2003 to April 2003 in comparison to the same time period last year. This is attributed to the anticipation of this ruling and as a result, wireless companies' fear of their customers' new ease in switching carriers.

Specifically, acquisition-related estimated direct mail volume increased 48% from January 2002 to April 2002 to January 2003 to April 2003. Most remarkably, cross-sell direct mail volume increased 2320%, which is an increase of over 20 times the mail volume in 2002.

Providers are trying to encourage customer loyalty by increasing the number of services they subscribe to, therefore making it more difficult to switch carriers in the long run due to their commitment to the provider as a whole," according to Andrea Wald, Senior Research Analyst.

Upgrade mailings also became significantly more visible over the first four months of 2003, with mail volume increasing 121% in this category."

Posted to the site on 24th June 2003