4. Discussion

As discussed above, the 408 area code has been in jeopardy for over ten years, during which time the Commission has imposed conservation measures and member rationing in order to delay the need for relief, satisfying the requirements of Pub. Util. Code § 7943(c).

The 2011 NRUF report shows that the 408 area code will exhaust in the first quarter of 2013, thus requiring both the Commission and the NANPA to act before exhaust occurs. In compliance with Pub. Util. Code § 7936, the NANPA utilizes data in the NRUF in forecasting where the 408 area code will exhaust.

Both the NANPA and the industry recommend an overlay to resolve the forecasted exhaust of the 408 area code. As of July 13, 2011, almost five times as many responding customers support an overlay as support a split. The majority of governmental entities commenting on the alternatives also support an overlay. In particular, the overlay is less confusing for existing customers since they retain the same area code and telephone number, and would not require existing customers, whether they are residential or business customers, to incur the time and expense of having to inform family, friends, customers, and business associates of a new area code. As discussed by the City of San Jose in its letter to the Commission, the overlay option would have the least impact upon City services, in particular its emergency services. We therefore adopt an overlay to resolve the forecast exhaust in the 408 area code.

The NANPA has also requested a 13-month schedule to implement the overlay option. This length of time is consistent with the authority we recently granted in D.08-04-059 regarding the 818 area code; therefore we adopt the requested 13-month schedule.27

The NANPA provided no detail regarding the PEP it proposes to implement for customers in the 408 area code. We therefore require the industry to implement a PEP consistent with the PEPs we authorized in D.08-04-05928 and D.08-10-038.29 Subject to the approval of the Director of the Communications Division (CD), telecommunications service providers must develop a detailed public education plan generally consistent with those we adopted in D.08-04-059 and D.08-10-038. (See Attachment A to this decision.) The CD Director is authorized to oversee the design and implementation of the PEP and must require all actions necessary to achieve a 70% awareness level of the overlay in all major customer and telephone user groups. Such actions may include: additional educational efforts, obtaining outside professional services, reviewing and approving all educational materials, overseeing the customer awareness assessment process, and requiring any needed additional funding from the carriers. The final public education plan, approved by the CD Director, must be filed and served as a compliance filing in the current proceeding, no later than 30 days after the effective date of this decision. The filing of this compliance filing does not reopen the record of this proceeding.

27 See D.08-04-059 at 1.

28 See D.08-04-059 at 6-11, Ordering Paragraphs (OP) 2-22, and Attachment A.

29 See D.08-10-038 at 4-5 and OP 5 and 6.

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