Discussion

Pursuant to Pub. Util. Code §§ 7936 and 7943(c)¹¹, before approving any new area code, the Commission must obtain utilization data from NANPA for any area code for which an area code change is proposed and must "perform a telephone utilization study and implement all reasonable telephone number conservation measures." Where there is no reasonable alternative other than to create a new area code, the Commission must "do so in a way that creates the least inconvenience for customers."¹²

As set out above, the Commission adopted various number conservation measures, which extended the life of the 714 area code for several years. Despite these measures, NANPA now projects the 714 area code will exhaust in the second quarter of 2008. NANPA fully supported this projection by providing utilization data and performing a utilization study on the 714 area code. We find, therefore, that we have met the statutory requirements of §§ 7936 and 7943(c). Accordingly, there is no other reasonable alternative but to create a new area code.

NANPA and the telecommunications industry have developed both area code split and overlay options and presented these options to the public. The consensus recommendation of the industry and preferred option of the public was an all-services overlay of the 714 area code, which will add the new 657 area code to the same geographic region of the 714 area code. NANPA's application identified several key factors in this determination. First, the 714 area code is home to numerous significant tourist attractions including Disneyland and other theme parks. These tourist attractions would be severely disrupted by an area code split, which would require some, but not all, to change their area code. Second, no logical lines of demarcation were readily apparent, as communities and cities were not contained within rate center boundaries. Finally, an overlay could be implemented more quickly than an area code split.

We note, however, that a significant number of customers did not support the proposed overlay. The reason most commonly cited was the inconvenience of 1+10-digit dialing.¹³ Similarly, numerous members of the public opposed any change at all. While we are sympathetic to these concerns, some level of inconvenience is inevitable to expand the supply of telephone numbers available in this region. Ceasing to issue new telephone numbers is not a reasonable course of action. On balance, we conclude that the all-services overlay option will cause the least inconvenience for consumers. We, therefore, adopt the all-services overlay for the 714 area code in NANPA's application as proposed.

¹¹ All citations are to the Public Utilities Code, unless otherwise indicated.

¹² § 7943(a).

¹³ In ordering paragraph 5 of D.96-12-086, the Commission ordered that mandatory 1+10-digit dialing "be implemented as a condition of approving any overlay, but only in the NPA regions covered by the overlay" to alleviate any anticompetitive consequences of an area code overlay.