A recent market study by the Philippine Competition Commission (PCC) found that the implementation of the Mobile Number Portability (MNP) Act has encouraged more competitive behavior among telecommunications providers, although its impact has been limited by low subscriber awareness and usage.
The study assessed the competition impact of Republic Act No. 11202, enacted in 2019, which allows mobile subscribers to retain their number when switching providers free of charge — an intervention intended to reduce switching costs and challenge long-standing market concentration in the telecom sector.
Competition improved, but switching remains minimal
Based on porting data from September 2021 to December 2024, the PCC said the law delivered its expected outcome of encouraging more competitive conduct among mobile service providers (MSPs).
However, actual switching activity has been extremely low. During the first three years of implementation, porting applications accounted for only 0.05% of total registered mobile numbers, indicating that the reform has yet to translate into widespread consumer movement across networks.
Survey results showed that about 80% of respondents were not familiar with the MNP law, although nearly one-third said they would consider switching if they knew the option existed.
The PCC warned that without awareness, subscribers may not fully exercise the bargaining power envisioned under the law, weakening its pro-competition effects.
Mixed gains for the third telco player
The report noted that DITO Telecommunity initially saw an influx of subscribers switching from rivals during the first 10 months of MNP implementation, but the trend declined in succeeding months.
Over the study period, Globe Telecom was identified as a “net donor” of subscribers while Smart Communications emerged as a “net recipient.”
The findings suggest that while MNP created opportunities for the third telco to compete, it has not yet significantly altered market dynamics in an industry historically dominated by two major players.
Structural and cost issues also identified
The PCC flagged operational concerns that may indirectly affect competition, including the cost burden of maintaining unused porting capacity.
The system currently allows for up to 10 million porting transactions annually, yet more than 99% of this capacity remains unused because of low uptake.
Since mobile providers shoulder these costs while the service remains free to consumers, the report noted that maintaining excess capacity could create inefficiencies and discourage participation if not reviewed.
Safeguards against anti-competitive behavior
Despite concerns over market structure, the PCC said the law contains sufficient protections against abuse of dominance, discriminatory practices, and misuse of personal data in the porting process.
Mobile number portability was designed to prevent entrenched players from locking in subscribers through high switching costs — an issue historically associated with concentrated telecom markets.
To strengthen the law’s impact, the PCC recommended that regulators and industry jointly undertake public awareness campaigns to better inform consumers about their right to retain their numbers when changing providers.
The study also urged a reassessment of technical capacity arrangements and called for a competition review of related policies, including the SIM Registration Act, to determine how overlapping regulations influence market dynamics.
