3. Current Request for a New Area Code

As discussed above, the Commission's adopted number conservation measures extended the life of the 408 area code by over 10 years. Despite these measures, the NANPA now forecasts the 408 area code will exhaust in the first quarter of 2013.¹⁸

Based upon the forecasted exhaust of the 408 NPA and the belief that the previous relief plan approved in D.98-11-065 was out of date, the CD staff requested that the NANPA convene a meeting with the industry, as discussed above. The industry reached consensus at its December 2, 2010 meeting to recommend an overlay to resolve the forecasted exhaust in the 408 area code. The Commission held Public Participation Meetings in March 2011 in the 408 area code.¹⁹ Comments received from the public are discussed in Section 4 of this decision. After the Public Participation Meetings were held, one more industry meeting was convened on April 25, 2011, in order to discuss the Public Participation Meetings, and confirm consensus (which it did) regarding the industry recommendation to implement an overlay in the 408 area code.

The industry also reached consensus regarding a 13-month schedule for implementing the area code overlay, as follows:

Event	Time
Start of Customer Education and Network Preparation Period	6 months
Start of Permissive 1+10 Digit Dialing and Continued Customer Education Period (i.e., calls within the 408 NPA can be dialed using 7 or 1+10 digits) Mandatory Dialing begins at the end of the Permissive Dialing Period	6 months
First Code Activation (i.e., effective date for CO codes from the new overlay NPA)	1 month
Total Implementation Interval	13 months

As part of its proposed schedule, the NANPA and the industry included provision of a public education program (PEP) for customers in the current 408 NPA. The NANPA then filed the current application, in which it presented both alternatives, with the industry`s consensus solution of an overlay.

3.1. Alternative Methods of Relief - Overlay versus Split

Alternative 1 is an overlay, which reflects the industry's consensus recommendation. It would superimpose a new area code over the same geographic area covered by the existing 408 area code. All existing customers would retain the 408 area code and would not have to change their area code or telephone number. The overlay alternative has a projected life of 36 years.

Alternative 2 is a split, which would geographically divide the 408 area code into two area codes. Area A²⁰ has a projected area code life of 39 years to exhaust and Area B²¹ has a projected area code life of 32 years to exhaust. All customers in the new area code would need to change their area code. Those customers whose numbers change would need to notify family, friends and those they do business with of the change. Some businesses would likely also incur costs for new business cards and stationary. The industry noted that if the Commission adopts the split alternative, the Commission would have to determine which part of the current 408 area code, Area A or Area B, would be assigned the new area code.

The overlay alternative requires 1+10 digit dialing for all calls within and between the 408 area code and the new area code.²² The split alternative would require 1+10 digit dialing for calls made to another area code, and allow seven-digit dialing for calls made within the area code.

3.2. Public Meetings and Comments

Section 7931(e)(2)²³ requires that within nine months from when the NANPA informs the Commission of the need for an area code change, the CD staff and the NANPA to conduct at least one meeting for representatives of local jurisdictions and three public meetings. The purpose of the meetings is to inform the local representatives and the public about the area code change options and provide a forum for them to voice their opinions concerning the proposed options.

With the NANPA's assistance, the CD staff and the Commissions Public Advisors Office held one local jurisdictional and four public meetings over the course of four days (March 15-18), two in San Jose (one of which was local jurisdictional to which the public was invited ),²⁴ two in Los Gatos, and one in Morgan Hill. Of the total 137 attendees at these meetings, 49 people spoke, with 26 of those speakers favoring an overlay and 13 favoring a split.

The Commission also established and publicized a weblink enabling customers in the 408 area code to comment on the alternative plans. As of April 7, 2011, a total of 165 responses had been received, of which 142 responses favored an overlay and 23 favored a split. By July 13, 2011, the total responses received had increased to 247, of which 204 responses favored an overlay, 41 favored a split, and two favored something other than an overlay or a split. The Commission also received comments from both local and state government, with three supporting the overlay option and two supporting the split option.²⁵

The Carriers strongly agree with NANPA that the overlay is the appropriate option for resolving the forecast exhaust in the 408 area code, stating that this is the least disruptive approach from the consumer's standpoint, and avoids certain technical implementation issues associated with Local Number Portability (LNP).²⁶ The Carriers reiterate NANPA's position that a split would inconvenience customers in the new area code because they would have to inform family, friends, and business associates of their new phone number, an activity which would also create a financial burden for businesses. Carriers' also offer that since January 1, 2005, the majority of exhausts that have occurred under NANPA's jurisdiction have been resolved by overlay.

¹⁸ The October 2010 Number Resource Utilization Forecast (NRUF) and NPA Exhaust Analysis (2010 NRUF Report) indicates that the 408 NPA will exhaust during the fourth quarter of 2012. The April 2011 NRUF and NPA Exhaust Analysis (2011 NRUF Report) forecasts that exhaust will occur in the first quarter of 2013. The NRUF system compiles required semi-annual reports submitted by service providers to whom numbering resources have been assigned.

¹⁹ Public Participation Meetings were held in San Jose, Los Gatos, and Morgan Hill.

²⁰ Area A would consist of San Jose:North Da, San Jose:South Da, San Antonio, Morgan Hill, San Martin, and Gilroy.

²¹ Area B would consist of Sunnyvale, San Jose:West Da, Campbell, Saratoga, and Los Gatos.

²² Federal Authority: Code of Federal Regulations - Title 47: Telecommunications: 47 C.F. R. § 5219(c)(3)(ii) "No area code overlay may be implemented unless there exists, at the time of implementation, mandatory ten-digit dialing for every telephone call within and between all area codes in the geographic area covered by the overlay area code."

California state Authority: D.96-08-028, Ordering Paragraph 4 "For any NPA, relief plan either pending or yet to be proposed, parties shall not propose an overlay as a relief option until or unless mandatory 1+10-digit dialing is in place at the time the overlay is implemented" and D.96-12-086, Ordering Paragraph 4 - "Mandatory 1+10-digit dialing shall be implemented as a condition of approving any overlay, but only in the NPA regions covered by the overlay."

²³ Pub. Util. Code § 7931(e) (2) "Within nine months the coordinator and the commission staff shall conduct at least one meeting for representatives of local jurisdictions to inform them of the proposed area code relief options, and to afford them the opportunity to discuss the potential impact of the proposed options. Following the local jurisdiction meeting, the coordinator and the commission staff shall conduct at least three public meetings in the affected geographical area. The public meetings are to inform members of the public about the proposed area code relief options, and to afford affected customers an opportunity to discuss the potential impact of the proposed area code relief options and measures that may be taken to mitigate any potential disruptions. The commission may order additional public meetings to be held at any time."

²⁴ The first of which was designated as the local jurisdiction meeting.

²⁵ The overlay option is supported by California Assemblymember Campos for the 23rd District, the City of Santa Clara, and the City of San Jose. The split option is supported by the City of Monte Sereno and the Town of Los Gatos.

²⁶ Carriers state that during implementation of an area code split, personnel of the Number Portability Administration Center (NPAC) must update the NPAC database to include both the old and the new area codes. On the same night, all telecommunications service provider in the area code must update their operational support systems with the new and old area codes so that port requests will complete within the designated porting intervals. If such coordination of these efforts by NPAC and the telecommunications service providers fails, calls could be misrouted or denied. We do not need to address this contention because we are approving the overlay proposal in the current application.