5. Discussion

Pursuant to Pub. Util. Code §§ 7936 and 7943(c),⁹ 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."¹⁰

As set out above, the Commission adopted various number conservation measures, which extended the life of the 760 area code for several years. Despite these measures, NANPA's current projection is that the 760 area code will exhaust in the third quarter of 2009. NANPA fully supported this projection by providing utilization data and performing a utilization study on the 760 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.

In today's decision, we apply our criteria¹¹ for evaluating area code relief options and conclude that a geographic split, similar to that ordered in 1999, is preferable to an all-service overlay.

In considering plans for area code relief, we apply the following criteria:

1. Minimize end-users' confusion.

2. Balance the cost of implementation for all affected parties.

3. Provide that customers who undergo number changes shall not be required to change again for a period of eight to ten years.

4. Not favor a particular interest group.

5. Cover a period of at least five years beyond the predicted date of exhaustion.

6. Provide that all of the codes in a given area shall exhaust at about the same time in the case of splits. In practice, this may not be possible, but severe imbalances, for example, a difference of 15 years, should be avoided.

7. Comply with state and federal statutes, rulings and orders.

We will address each criterion separately.

5.1. Minimize End-User Confusion

The split alternatives require customers in a portion of the existing 760 area to change their area code to 442. Customers are familiar with area code splits as this has been the most common means of addressing number exhaustion. In fact, customers in the current 760 were "split" from the 619 area code in 1997.

Overlays require customers in the entire area to adopt a new dialing protocol to include area codes on all telephone calls, even local calls across the street. Customers in the 760 area code are unfamiliar with mandatory "10-digit" dialing and will need to learn the new protocol to complete a call.

The overlay alternative requires the most significant changes for placing a call, and the split alternative retains the basic structure of local calls requiring only seven digits. Therefore, the split alternative provides the greatest opportunity to minimize end-user confusion.

5.2. Balance the Cost of Implementation for All Affected Parties.

In a two-way geographic split, customers in the portion receiving the new area code must adapt to a new area code. Customers in the other portion, which retains the existing area code, have no telephone number change at all.

In contrast, an all-services overlay requires all customers in the area code to adopt 10-digit dialing for all calls, all new customers get the new area code, and all existing customers retain their existing full telephone number.

Consequently, overlays more equally distribute the costs of implementation.

5.3. Provide that Customers Who Undergo Number Changes Shall Not Be Required to Change Again for a Period of Eight to Ten Years

All alternatives considered for the 760 area will provide customers with more than 10 years before another area code change may be required. The duration of each alternative is set out in the table below in Section 5.6.

5.4. Not Favor a Particular Interest Group

As noted above, about 75% of the public comment supported some type of geographic split. The primary advocate for an all-services overlay was the telecommunications industry, due to the ease of implementation. Thus, an overlay alternative favors the telecommunications industry.

5.5. Cover a Period of at Least Five Years Beyond the Predicted Date of Exhaustion

All alternatives project a future life greater than ten years. The shortest forecasted life is 14 years, which is for the western portion of geographic split alternative one, and the eastern portion of this alternative has the greatest life, 22 years:

Alternative	Years to Exhaust Area A (Eastern Portion)	Years to Exhaust Area B (Western Portion)
1 (split)	22	14
2 (split)	19	16
3 (overlay)	17	17
4 (split)	18	16

5.6. Provide that All of the Codes in a Given Area Shall Exhaust About the Same Time in the Case of Splits. In Practice, this May Not Be Possible But Severe Imbalances, for Example A Difference in NPA Lifetimes of More Than 15 Years, Should Be Avoided

The overlay alternative is the only one with perfect balance. The differences in the various split alternatives range from two to eight years. No alternative has differences in excess of 15 years.

5.7. Comply with State and Federal Statutes, Rulings and Orders

All alternatives comply with state and federal statutes, rulings and orders.

5.8. Evaluation of Criteria

The alternatives all comply with Criteria 3, 5, 6, and 7. The carriers prefer an overlay due to lower cost and ease of administration. Customers, however, are less likely to be confused by a two-way geographic split, but the costs will not be equally distributed among customers in the existing 760 area code.

The inequity of cost distribution and of one portion of the existing 760 area code bearing all of the inconvenience of a new area code is less persuasive given the unique geographic size and population location of this area code. Exhaustion of the 760 area code is being caused primarily by the fast-growing metropolitan areas near San Diego. The population of the largely rural northeastern section of this area code is not growing at the same rate. The metropolitan areas are also relatively compact, as compared to the geographically expansive northeastern area.

A two-way geographic split, with the northeastern section retaining the 760 area code, will align the cost and inconvenience of a new area code with the metropolitan areas creating the need for a new area code. Such a split will also retain the geographic identity of the 760 area code in eastern California.

The Joint Carriers focus on the cost and inconvenience, especially to businesses, of changing area codes and recommend that this Commission adopt the "progressive" policy of overlays in all cases. These carriers explain that many customers are familiar with 10-digit dialing due to living, working, and having family and friends in numerous area codes, and others will quickly "adapt" to the 10-digit protocol.

We have fully considered these comments and agree that in many instances an overlay is the superior alternative. In this case, however, due to the uniquely expansive geography of the 760 area code, we conclude that customers in the north-east portions of the existing area code are not sufficiently a part of the multiple area code lifestyle to justify a determination that an overlay would not create significant confusion when all calls placed, even local calls within a remote location, require dialing 10 digits. As discussed above, many customers in the north-east section of the 760 area code are located a great distance from a different area code and would not encounter different area codes when conducting typical day-to-day business. These customers, currently located hundreds of miles from a different area code, could be confused by a different area code being necessary to call the new business across the street. These customers now are able to contact businesses and residences in the community using only 7-digit dialing. The sudden need to use 10-digit dialing to reach all nearby locations, the newer of which will have a different area code, could also lead to confusion and annoyance. In sum, the uniquely remote features of the 760 area code result in an all-services overlay creating substantial opportunities for customer confusion.

Therefore, based on the unique circumstances of the 760 area code, we conclude that a two-way geographic split is the best means to create additional numbering resources. We also conclude that the more rural eastern portion of the existing 760 should retain the 760 area code, and the rate centers closer to metropolitan San Diego should be assigned the new 442 area code.¹²

⁹ All citations are to the Public Utilities Code, unless otherwise indicated.

¹⁰ § 7943(a).

¹¹ See CPUC3d 550, 553.

¹² The prefixes in the existing 760 area code to be moved to the new 442 area code are listed in Attachment D.