Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Maribeth A. Bushey is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. An overlay plan for relief of the 714 area code was adopted in 1999.

2. Because of public controversy regarding this and five other pending area code overlays, in D.99-12-051 we suspended all six overlay plans, and instead ordered the development and implementation of more efficient means of using numbering resources to extend the life of area codes.

3. NANPA filed this application on March 13, 2007, and served copies of the application on all parties to the Local Competition Docket, R.95-04-043.

4. At the direction of the assigned Administrative Law Judge, NANPA provided additional service on all local cities and counties in the 714 Number Planning Area, as well as all carriers that are code holders in the area.

5. NANPA's application, forecasted the 714 area code will exhaust in the 4th quarter of 2008 and the telecommunications industry recommended a 13-month implementation schedule for the 714/657 all-services overlay.

6. No protests have been submitted.

7. Pub. Util. Code § 7931(e)(2) requires that NANPA and CPUC staff conduct at least one local jurisdiction and three public meetings within nine months from when NANPA informs the Commission of the need for an area code change. This allows for the local representatives and the public to voice their opinions and to discuss the possible impacts of the proposed area code change options

8. NANPA now projects that the 714 are code will exhaust in the 2nd quarter of 2008.

9. NANPA fully supported the projected exhaust of the 714 area code by providing utilization data and performing a utilization study on the 714 area code, which complies with §§ 7936 and 7943(c).

10. This overlay area code will be only the second overlay area code California has implemented. The first area code overlay in California involved the 310 area code, also in Southern California, which added the 424 area code.

11. With NANPA's assistance, Commission staff conducted an extensive public comment process to discuss both overlay and split alternatives, beginning with a meeting with officials from various local jurisdictions on January 17, 2007, in Anaheim. Afterwards, NANPA and CPUC staff conducted three public meetings, one each in Anaheim, Orange, and Huntington Beach.

12. The consensus recommendation of both the public and industry was for an all-services overlay of the 714 Number Planning Area with a new 657 Number Planning Area.

13. A significant number of customers did not support the proposed overlay. The reason most commonly cited was the inconvenience of 1+10-digit dialing.

14. The telecommunications industry did not include providing customer notifications in its schedule matrix, but it did indicate in its public education plan that it has scheduled two customer notifications before and after the permissive dialing period to "Announce the new area code plan," which will include information about the mandatory 10-digit dialing and the affected areas.

15. Historically, the Commission has used the terms "permissive" and "mandatory" dialing periods as components of the transitional dialing period. The overlay does not involve a "permissive" dialing period as narrowly defined in Section 7932 (i.e., where the caller can reach the same party by dialing either the old or new area code). The term "permissive" dialing period in connection with the overlay, however, refers to the period during which consumers can reach the same party by dialing or not dialing the area code.

16. In NANPA's application, the telecommunications industry proposed to conduct a PEP. The PEP plan the industry proposed and contained in Attachment D currently does not demonstrate that it will meet the criteria, requirements, objectives, and goals ordered in this decision.

17. The public is familiar with the traditional association of a single area code with a unique geographic area, and has had a long standing expectation that telephone calls between numbers within a single area code require dialing only seven digits.

18. In the past 310/424 overlay PEPs, volunteer efforts by employees of individual service providers were sometimes challenging with much work being done by just a few volunteers resulting in delays. Some sub-committees had greater participation than others.

19. In the case of overlays implemented in other states, we observed that some customers had expressed confusion, thinking that the overlay area code served a different geographic area, perceived as requiring a toll call. We noted the concern as to the competitive consequences of such a misperception should it emerge in California, since competitive local carriers would be more likely than incumbents to serve customers with the new, less recognized overlay area code.

20. No hearing is necessary.

Conclusions of Law

1. In Paragraph 70 of its order FCC 00-429, the FCC "required mandatory 10-digit dialing for all calls in areas served by overlays to ensure that competition will not be deterred in overlay area codes as a result of dialing disparity." Our own D.96-12-086 coincides with the FCC's requirement. Hence, mandatory 10-digit dialing should be instituted with the 714/657 area code overlay.

2. Conservation measures have extended the life of the 714 area code for several years, thus delaying the need for an area code change. All reasonable telephone number conservation measures have been implemented. To accommodate future needs, there is no reasonable alternative other than to create a new area code. Accordingly, we have complied with § 7943(c) by ordering an area code change.

3. Pursuant to §§ 7931(f)(2) and (g), and § 7932(a)(3), some key transitional events in the implementation schedule of any area code change must include customer notifications from each service provider and transitional dialing periods before opening a new area code. Service providers should disseminate written customer notices before and after the permissive dialing period, which includes information about the new area code plan, the new dialing procedure, and the affected areas.

4. Pursuant to §§ 7931(f) and (f)(1), NANPA is required to inform the general public about the geographic areas included in the old and new area codes and the transitional dialing period. NANPA should notify the applicable code holders and thousand-block holders in the 714 area code of the implementation of the all-services overlay, its schedule, the region included in the overlay, and the dialing procedure for the overlay region within 30 days from the effective of this order.

5. We have established a history of providing criteria, requirements, goals, and objectives for and required public education programs associated with area code changes in D.96-12-086, D.98-05-021, D.98-12-081, D.99-02-074, and D.05-08-040. The Task Force should implement, at a minimum, the public education program plan described in Attachment E. Attachment E sets forth the criteria, requirements, objectives, and goals developed in D.96-12-086, D.98-05-021, D.98-12-081, D.99-02-074, and D.05-08-040 and the activities proposed by the telecommunications industry for the 714/657 area code overlay's public education program. The 714/657 Task Force should utilize the materials and processes developed in the 310/424 PEP, and otherwise take advantage of the experience gained in implementing relief for the 310 area code, to produce a cost-effective and efficient program

6. All service providers operating within the 714 Number Planning Area and/or have numbering resources with the 714 area code should cooperate in implementing the customer education plan as set forth in Attachment E. The Director should oversee the implementation of this plan and should direct any further measures that may be necessary.

7. The implementation period should be 12 months to provide numbering resource relief as soon as possible.

8. In D.99-06-087, the Commission determined that a second-phase PEP extending beyond the opening of the overlay area code might be necessary to promote necessary public awareness regarding the fact that the 408 and 669 area codes would co-exist in the same geographic area. Commission staff should monitor the PEP's effectiveness.

ORDER

Therefore, IT IS ORDERED that:

1. The all-services overlay proposed in the application for the 714 area code to add a new area code, 657, to the same geographic region as the 714 area code is adopted.

2. A 12-month implementation interval is adopted, which will start on the effective date of this order, as set forth in Attachment C. The permissive dialing period shall begin five months after the start of the 12-month implementation schedule and continue for six months, after which the mandatory dialing period shall begin. No sooner than 30 days after the start of the mandatory dialing period, service providers may assign telephone numbers with the new 657 area code to new telephone lines and/or services.

3. Service providers currently operating in the 714 area code or which have numbering resources within the 714 area code shall provide the first written notification to all their affected customers four months from the effective date of this decision. Eleven months from the effective date of this decision, each service provider shall again provide written notification to all its affected customers. The message content of these notices shall be consistent with the criteria in Attachment E. All such customer notices shall be submitted to and approved by the Commission's Public Advisor prior to mailing them.

4. The North American Numbering Plan Administrator shall notify the applicable code holders and thousand-block holders in the 714 area code of the implementation of the all-services overlay, its schedule, the region included in the overlay, and the dialing procedure for the overlay region within 30 days from the effective date of this order.

5. Service providers shall make available permissive dialing within the 714 number plan area (NPA) to their customers during the permissive dialing period.

6. A public education program (PEP) task force (Task Force) is established consisting of Commission staff and at least one representative from each service provider holding numbering resources in the 714 area code as of the effective date of this decision.

7. The Director of the Communications Division or designee (Director) is authorized to oversee all activities of the Task Force. The Director shall require all actions necessary to achieve a 70% awareness level of the overlay in all major customer and telephone user groups. Such actions include, but are not limited to: additional educational efforts, obtaining outside professional services, reviewing and approving all educational materials, overseeing the customer awareness assessment process, and requiring any additional Task Force funding from the carriers.

8. The Task Force shall implement, at a minimum, the public education program plan described in Attachment E.

9. The PEP shall start on the effective date of this decision and shall continue until the new 657 telephone numbers become available, 12 months later.

10. The Task Force shall assign responsibility for the activities described in the PEP plan in Attachment E so that adequate tracking and compliance can be assured. The Task Force may utilize volunteers, but the Director may require outside professionals be hired if necessary to perform the elements of the PEP and adjust the PEP budget accordingly.

11. The PEP shall achieve at least a 70% public awareness. PEP outreach efforts shall specifically target key governmental agencies and community leaders, chambers of commerce, major airports, hospitals, alarm providers, pay telephone providers, police and fire departments, and the state coordinator for emergency services in the 714 NPA region. The PEP shall also include special outreach to senior citizens, children, the disabled, and all major customer groups in the 714 NPA region. The Task Force shall arrange for such paid advertising in print, broadcast, internet, and other media as necessary to achieve 70% customer and telephone user awareness across all major groups within the 714/657 area code region.

12. The PEP's message content for all of its educational, outreach, and paid advertising materials as described in Attachment E shall primarily include the type of area code change being implemented, the new dialing procedure, the region covered by the 714/657 area code overlay, and that the cost or quality of telephone service will not be adversely affected by the change.

13. The Task Force shall, within 15 days of the effective date of today's decision file and serve a final PEP plan, which includes the specific start and due dates for all tasks, activities, and milestones in the plan and the delineation of responsibilities needed to comply with this order. The final PEP shall also be served on all cities and counties in the 714 area code.

14. The Director shall monitor the effectiveness of the PEP through the implementation period, and determine any further PEP activities after the overlay area code is opened. In any event, should the customer awareness level not reach at least 70% by the opening of the new 657 area code, then the Task Force shall continue the PEP beyond the opening of the new 657 area code. To determine the awareness level, the Task Force shall conduct a well-balanced and statistically significant survey of telephone users and customers in the 714 NPA region. The Task Force shall submit the survey questions, process, and methodology to the Director for review and approval.

15. We authorize an initial budget of $401,000 for the 714/657 PEP. Of this total amount, we shall require that a minimum of 36% of the PEP budget be allotted to cover paid or mass media advertising, including radio and television, and a minimum of 3% for collateral materials. All service providers that hold thousand-blocks in the 714 area code as of this decision's effective date shall fund the PEP budget. The amount collected from these service providers shall be determined by the relative percentage of thousand-blocks that they hold as of this decision's effective date. Any additional assessments or refunds shall be allocated on the same basis.

16. The Task Force shall arrange for adequate accounting of total PEP costs incurred, to determine the contributions due from each service provider based on their thousand-block holdings, to follow up for collections and disbursements of PEP funds, to monitor the PEP funds remaining, to keep the expenses within the PEP budget, and to disperse the funds to the appropriate sub-committees to pay for any expenses incurred. The Task Force shall not include the labor costs of each service providers' representatives in the Task Force. The Task Force shall provide for periodic reporting to Commission staff concerning the details of collections and disbursements relating to the PEP.

17. Payphone providers shall revise the dialing instructions on pay phones to account for the mandatory 10-digit dialing procedure for the 714 and 657 area codes by the beginning of the mandatory dialing period.

18. Future applications for numbering plan relief shall be served on all cities and counties in the affected area and all code and thousand-block holders.

19. Application 07-03-010 is closed.

This order is effective today.

Dated September 20, 2007, at San Francisco, California.

ATTACHMENT A

Alternative # 4 - NPA Split

The proposed boundary line runs along the eastern borders of the Buena Park, Cypress rate centers and along the north and eastern sides Garden Grove rate center then along the north and eastern border of the Santa Ana rate center. There are six rate areas west of the split line and seven rate areas east of the split line. This alternative splits small portions of the cities of Anaheim, Buena Park and Fullerton, Orange, Santa Ana and Tustin.

Area A Area B

Total CO Codes = 392 Total CO Codes = 338

Rate Centers = 7 Rate Centers = 6

Area code life = 22 years Area Code life = 29 years

Alternative # 5 - All Services Overlay

This alternative is an all services distributed overlay. Customers would retain their current telephone numbers; 1 plus ten-digit dialing by all customers between and within area codes in the area covered by the new area code would be required.

Total CO Codes = 730

Rate Centers = 13

Area code life = 25 years

Alternative # 6 - NPA Split

There was one additional alternative suggested by the CPUC Staff for consideration during the meeting. The proposed boundary line runs along the northern point between Brea and Placentia, and the western point of the region between Cypress and Westminster. Area A contains the rate centers, Cypress, Anaheim, Orange, Buena Park, Fullerton, and Brea. Area B contains the rate centers Westminster, Garden Grove, Santa Ana, Huntington Beach, Silverado, Yorba Linda, and Placentia. This alternative splits the cities of Cypress, Stanton, Anaheim, Orange, Santa Ana, Tustin, Placentia, Fullerton, and Brea.

Area A Area B

Total CO Codes = 396 Total CO Codes = 334

Rate Centers = 6 Rate Centers = 7

Area code life = 21 years Area Code life = 30 years

Source: NeuStar, Inc.

(END OF ATTACHMENT A)

ATTACHMENT B

(END OF ATTACHMENT B)

ATTACHMENT C

714/657 Area Code Overlay Implementation Schedule

MILESTONE

DURATION

START DATE

Adoption of 714/657 Area Code Overlay Decision

   

Public Education Program

12 months

Effective Date of the Order

Network Preparation Period

5 months

Effective Date of the Order

Permissive Dialing Period

5 months

Six Months from the Effective Date of the Order

First Customer Notice

 

Four Months from the Effective Date of the Order

Second Written Customer Notice

 

11 Months from the Effective Date of the Order

Mandatory Dialing Period

 

Six Months from the Start of Permissive Dialing Period

Open New 657 Area Code (i.e., date by which telephone numbers with the 657 area code may be assigned to consumers)

 

At least 30 days from the start of the Mandatory Dialing Period

(END OF ATTACHMENT C)

ATTACHMENT D - Telecommunications Industry's Proposal for a PEP

Subcommittee Responsible

Activity

Description

Audience

Shared or Individual Carrier Effort

N/A

N/A

714 Overlay Order approved

N/A

N/A

Task Force

Information

Update company websites with 714 Overlay information

All telcom users

Individual

Task Force

Administration

Formation of PEP Committee - each carrier to designate a committee representative

N/A

Commission Staff and Carrier Representatives

Task Force

Information

As Directories are published add information on the cover to alert the consumer of 714/657 Area codes.

All Telecom Users

Individual

Task Force

Information

Distribute information internally to be used as a tool by customer service representatives in order to answer customer inquiries

Service Representatives

Individual

Special Interest Outreach

Information

Notify the California Relay Service to send messages to alert their customers to the 10-digit dialing in the 714/657 Area Codes

Hearing Impaired

Shared

Greater Public Media

News Release

Telecommunication Industry to issue news release which describes the 714 Area Code relief plan (distribute within 714 Area including chambers of commerce and local government agencies)

All telcom users

Shared

Special Interest Outreach/Customer Communications

Information

Telecommunications industry to send information package to Chambers of Commerce, city councils, John Wayne Airport, key government agencies, alarm-service providers and public safety organizations (e.g., 911PSAPs, police, sheriff and fire) throughout the 714 Area.

Select organizations and associations

Shared

Customer Communications

Information

Customer Notification No. 1: Announce the new area code plan. Include information about 10-digit dialing and indicate affected areas.

Resident (including pre-paid ) and Business Customers

Individual

Special Interest Outreach

Information

Contact key community leaders, legislators, state/local government contacts by letter, phone or visit.

Key Leaders

Shared

Special Interest Outreach

Information

Provide targeted information to advocacy groups (seniors, consumer panels, activist organizations, etc.) by letter, phone or visit

Advocacy groups and consumer groups

Shared

Special Interest Outreach

Public Appearances

Offer speeches or appearances to Chambers of Commerce, economic development organizations, service clubs, and other business organizations.

Select organizations and associations

Shared (Assuming use of Industry Spokesperson(s))

Greater Public Media

Public Appearances

Telecommunications industry to offer appearances on local radio and TV Talk shows

All telecom users

Shared (Assuming use of Industry Spokesperson(s))

Greater Public Media

Information

Telecommunications industry to issue news release to 714 Area media regarding approach of "transitional" dialing period.

All telecom users (714 Area Code Area)

Shared

Permissive Dialing Begins

 

Permissive Dialing begins

 

 

Customer Communications

Information

Customer Notification No. 2: Announce the new area code plan. Include information about mandatory 10-digit dialing and indicate affected areas.

Residence and Business Customers

Individual

Technical

Information

Complete the process for developing recorded announcements required for Mandatory Dialing

Residence and Business Customers

Individual

Greater Public Media

News Release

Telecommunication Industry to issue news release to media regarding the start of mandatory dialing.

All telcom users (within the 714/657 NPAs and adjacent NPA areas)

Shared

Special Interest Outreach

Information

Provide targeted information to advocacy groups (seniors, consumer panels, activist organizations, etc.) by letter, phone or visit

Advocacy groups and consumer groups

Shared

Special Interest Outreach

Information

Provide targeted information to Schools by letter, poster and worksheet

Schools

Shared

Special Interest Outreach

Information

Telecommunications industry to send information package to Chambers of Commerce, city councils, John Wayne Airport, key government agencies, alarm-service providers and public safety organizations (e.g., 911 PSAPs, police, sheriff and fire) throughout the 714 Area.

Select organizations and associations

Shared

Special Interest Outreach

Information

Contact key community leaders, legislators, state/local government contacts by letter, phone or visit.

Key Leaders

Shared

Paid Advertisement/Greater Public Media

Public Appearances

Telecommunications industry to offer appearances on local radio or TV Talk shows.

All telecom users

Shared (Assuming use of Industry Spokesperson(s))

Special Interest Outreach

Public Appearances

Offer speeches or appearances to Chambers of Commerce, economic development organizations, service clubs, and other business organizations.

Select organizations and associations

Shared (Assuming use of Industry Spokesperson(s))

Mandatory Dialing

 

 

 

 

657 Numbering Resources Activated

 

 

 

 

(END OF ATTACHMENT D)

ATTACHMENT E - Commission Adopted PEP

714/657 Area Code Overlay Public Education Program

Goals:

Objectives:

Message Content:

Audiences:

Primary - Consumers in 714 NPA geographic region and those consumers with telephone numbers with the 714 area code

Secondary - Consumers in NPA geographic regions adjacent to the 714 NPA geographic region

Tertiary - California consumers throughout the state

Activities:

(END OF ATTACHMENT E)

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