A system that enables people to keep their full mobile phone number when they change operator has been delayed

Businesses and consumers will have to wait until next year before the introduction of a €40 million system that will enable people to keep their full mobile phone numbers - including prefixes such as 087 - when they change operator.

The new system - which will enable a process known as full mobile number portability - was scheduled to be introduced next month under a work programme agreed last year between the telecoms regulator and the operators.

But it is understood all three mobile phone operators here will delay the introduction of number portability until next February to give them extra time to test their systems. The companies do not want to introduce the system so close to Christmas, a period when mobile firms traditionally experience a massive surge in demand.

The delay will disappoint many small and medium-sized enterprises, which stand to gain most from the system because it will enable them to negotiate better rates with their current operators.

Up to now, many small businesses have been reluctant to change mobile companies because of the huge costs involved with changing their stationery and advertising to include the new number. They have also been fearful of losing customers by taking up a new mobile number.

Currently, businesses or individuals who switch mobile operators have to change their access codes (086, 087 or 085) to reflect the code used by the new operator. Under the proposed system, however, people will be able to retain their full mobile phone numbers.

The new system should make it easier for the third and smallest operator, Meteor, to target small and medium-sized businesses,making it easier for the firm to boost market share above its current level, estimated at 3 per cent.

A spokesman for Meteor said the firm was fully behind the introduction of the new system. However, it was more important to ensure the system worked and consumers had confidence in the new system, than introduce it too early and see it collapse, he added.

The new system, which will begin testing sometime next month, should enable consumers to switch their mobile phone operators in just two hours. It will involve the creation of a huge database of mobile phone numbers that will be managed by a separate firm contracted by the operators.

All technical and computer systems that relate to numbering at the mobile operators will have to be compatible with one another. The cost of the new software and systems is estimated at about €40 million by all three operators.

The largest operator in the Republic - Vodafone with 60 per cent market share - incurred the most cost in this process. Ironically, it stands to lose the most from number portability because it will make it easier for its loyal customer base to switch operator.

The firm previously opposed the introduction of mobile number portability in several consultation processes initiated with the telecoms regulator last year. Industry sources suggest Vodafone only began to take a full part in the process following clarification of the legal background in mid-2001.

In an annex to a report on the regulator's consultation on number portability, the director wrote that full-number mobile portability could be "formalised on the basis of entirely new legislation or by way of a licence amendment".

At the time, Vodafone had questioned whether the regulator had the power to enforce the introduction of the new system. O2, formerly known as Digifone, had also raised questions over the introduction of number portability. But the company has subsequently changed its view on the issue.

Mr John Gunnigan, director of strategy and business development at O2, said it welcomed the increased choice of network that number portability offers customers and the system was a competitive opportunity. But he suggested the start date for the system would be delayed.

"It has now become clear to all parties involved in the process that the original implementation date of October was over-ambitious, given the scale and complexity of the project," he said.

A spokeswoman for the telecoms regulator said there were technical and logistical issues to be overcome to ensure that the service would operate smoothly. A lot of work had already been done and the technical capability was scheduled to be in place before the end of the year, she added.

Nine EU countries have implemented mobile number portability, as well as Australia, which uses a similar system to the one planned for the Republic.