SS7 Basics, Second Edition

Number portability allows an end-user of telecommunications services to retain their telephone number without impairment of quality, reliability or convenience, when changing any:
Telephone Service Provider (Local Number Portability)
Type of Service Being Offered (Service Number Portability)
Location of Residence (Geographic Number Portability)
The need for number portability did not arise as a technical requirement for the network, rather number portability was mandated to make the telecommunications industry more competitive. The mandate of number portability reduces the barriers for new competitors to enter the marketplace. Because of number portability, new telecommunication service providers can offer competitive and/or advanced services to prospective customers without requiring a customer to change their telephone number.
The Federal Communications Commission (FCC) mandated local Number Portability in the United States in 1996 to foster competition in the Local Exchange market. First implemented in 1997 by U.S. carriers, and expanded to be available in the Top 100 Metropolitan Statistical Areas (MSAs) and in any area within 6 months of the requested date.
The porting of telephone numbers as mandated by the Telecommunications Act of 1996 provides new competitive telephone service providers (telephone companies) the ability to take the existing telephone number away from the incumbent telephone company (usually well established with many customers) and maintain this phone number with the new service provider. Allowing the competitive telephone service provider to offer the same telephone number that the incumbent may have had for years is essential to the competitor getting business.