ALJ/TRP/sid Mailed 4/21/2003

Decision 03-04-056 April 17, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion into Competition for Local Exchange Service.	Rulemaking 95-04-043 (Filed April 26, 1995)
Order Instituting Investigation on the Commission's Own Motion into Competition for Local Exchange Service.	Investigation 95-04-044 (Filed April 26, 1995)

OPINION IMPLEMENTING

CHANGES TO GRANDFATHERING POLICY

Today's decision represents another step in our continuing program to promote efficient utilization of telephone numbering resources in order to minimize the need for and disruption of area code changes. The specific focus of this decision is on modifying the Commission's policies relating to the treatment of telephone numbers located within the boundaries of a numbering plan area (NPA) that are "grandfathered," thereby keeping their old area code even though the area code is different for other surrounding customers as a result of an area code split.

This decision finds the original circumstances that formed the basis for our grandfathering policy have changed. Technological advances have alleviated the difficulties in reprogramming handsets to recognize new area codes. Moreover, with the advent of number pooling and porting, the constraints imposed by grandfathered codes have become problematic.

Accordingly, we modify our prospective policy to adopt a presumption in favor of geographical consistency in assigning new area codes. Prospectively, grandfathering may only be considered on a limited case-by-case basis in response to an express request affirmatively showing that the advantages of grandfathering outweigh the disadvantages in a specific area. We also adopt a plan for a combination of measures to phase out existing grandfathered codes over a three-year period.

I. Background

Since 1996, area code splits implemented in California have included a "grandfather" provision applicable to certain customers of commercial mobile radio service (CMRS) carriers. Under the grandfather provision, affected customers are permitted to retain their preexisting area code after a geographic split, even when the rate center of the carrier's assigned NXX code lies within the geographic boundaries prescribed for the new area code. The Commission adopted this provision for CMRS carriers in Decision (D.) 96-08-028 (Conclusion of Law 23) as a means of relieving the burden on CMRS customers who would otherwise have to bring their handset equipment to the carrier for reprogramming, or else reprogram the equipment themselves, to recognize the change in area code.¹

As part of our continuing initiative to promote efficient use of scarce numbering resources in the interests of minimizing area code changes and customer disruption, we recently initiated a reexamination of this grandfathering policy. On May 30, 2002, an "Assigned Commissioner's Ruling" (ACR) was issued, concerning potential modification of existing treatment of CMRS carriers' assigned rate center designation in connection with the implementation of area code splits. In responses to the ACR, parties addressed the issue in the context of a prospective-only change in the grandfathering provisions as new area code changes are implemented. Prospective-only changes would not address the problems created by existing grandfathered numbers that are the product of past area code splits. Accordingly, on October 2, 2002, the assigned ALJ issued a ruling to provide notice and opportunity to comment on the issue of a retrospective reversal of the grandfathering provisions as applied to existing area codes.

As stated in each of the rulings, modification of the grandfathering policy is being considered as a measure to promote the efficient utilization of numbering resources, particularly in those areas closer to exhaust.

The following parties filed comments in response to the rulings: Pacific Bell (Pacific), Verizon California, Inc., Verizon Wireless, Cellular Carriers Association of California (CCAC), AT&T Wireless Services, Allied National Paging Association (Allied), and jointly by the California Cable & Telecommunications Association (CCTA), AT&T Communications of California, Inc., and Time Warner Telecom of California, LP (Joint Parties). Comments were also filed by NeuStar, Inc. in its capacity as the designated National Number Pooling Administrator.