7. Public Education Program (PEP)

7.1. Background

In D.96-12-086, in Rulemaking (R.) 95-04-043 and Investigation (I.) 95-04-044, we decided that an appropriate customer education program was necessary when instituting overlays to explain the concept of an overlay, the fact that the new dialing procedure will not affect the distinction between local and toll calls or the rates charged for the calls, and the mandatory 1+10-digit dialing procedure. We also required the industry to correct signage for dialing instructions on payphones and in directories.

In D.98-05-021, in R.95-04-043 and I.95-04-044, we:

· Required service providers to institute an instructional announcement directing callers to dial 1+10-digits indefinitely after implementing the overlay;

· Required the PEP to communicate changes associated with the overlay to children, the elderly, the disabled community, and the various ethnic groups in the region;

· Prioritized the education of those entities that will need to reprogram equipment due to the new dialing procedure, such as alarm companies;

· Required the PEP to inform customers how to dial directory assistance to locate numbers applicable to different area codes within the overlay region;

· Required the use of press releases, television and radio announcements, billing inserts and the updating of telephone directories; and

· Extended the coverage of the PEP to include not only the region in which the overlay will be implemented, which should be the first priority, but also the adjacent area codes and, to a lesser extent, the whole state.

In D.98-12-081, in R.95-04-043 and I.95-04-044, we set four major objectives for the PEP:

· Public awareness of the change in dialing patterns and area code identification resulting from implementation of the overlay;

· Public understanding of how they will be affected by the change and the rationale behind the change;

· Public assurance that the cost and quality of service will not be adversely affected; and

· Promotion of positive acceptance by customers of the change.

In D.98-12-081, we required:

· The operation of a call center for consumers to obtain information regarding the overlay;

· Targeted paid advertising in the relevant zoned editions of major newspapers as well as newspapers targeted to ethnic communities;

· Bill insert notices to the adjacent area codes;

· Limited use of billboard and radio advertising; and

· Mailing of letters, brochures, and collateral materials to local government officials in the overlay and adjacent area codes.

In D.05-08-040, in R.95-04-043 and I.95-04-044, we required:

· The activities and standards previously required for the 310 and 408 overlay PEPs to achieve at least a 70% public awareness level;

· PEP outreach efforts to specifically target key governmental agencies, community leaders, chambers of commerce, major airports, hospitals, alarm providers, pay telephone providers and the state coordinator for E-911; and

· Special outreach to senior citizens, children, the disabled, and ethnic minorities including targeted newspaper, billboard, radio, and television advertising.

The application proposes to conduct a PEP, but includes no information on it.

7.2. Discussion

The assigned Administrative Law Judge (ALJ) issued a ruling seeking comments on a proposed PEP. The proposed PEP was based on what we have authorized in previous decisions and the PEPs ultimately implemented. The comments were considered in developing the PEP adopted in this decision and included as Attachment A.

Previously, we have authorized our staff to oversee the finalization and implementation of the PEP.9 Accordingly, we direct the CD Director to perform this function. In doing so, the CD Director may designate CD staff to carry out these tasks.

In previous decisions, we have specified a budget for the PEP.10 We see no need to specify a specific budget here, because the industry should have sufficient experience with previous PEPs to determine the specifics of the budget. We require the industry to fund the PEP as necessary to achieve at least a 70% customer awareness and understanding of the change in dialing patterns and area code identification resulting from implementation of the overlay, how they will be affected by the change and the rationale behind the change. The 70% awareness requirement shall be across all major customer groups.

In previous decisions, we have utilized an industry task force to implement the PEP and manage the PEP fund. We do so here, and require this task force to include Commission staff and representatives from the service providers holding numbering resources in the 818 area code as of the effective date of this decision. We require the task force to develop a reasonable means of delineating the division of responsibility for the PEP activities so that adequate tracking and compliance can be assured. The task force will be responsible for developing the materials and content of the PEP, maximizing the use of prior PEP efforts, and conforming to the requirements of this order.

We authorize the CD Director to require sufficient industry contributions to the PEP budget fund to achieve the 70% customer awareness requirement. The CD Director shall require the task force to conduct a well-balanced and statistically significant survey of customers to determine whether the 70% requirement has been met. The survey shall be designed and conducted such that the general public, a well as senior citizens, the disabled and ethnic minorities are adequately represented in the survey.11 The task force shall submit the survey questions, process, and methodology to the CD Director for review and approval prior to implementation.

If necessary to ensure the success of the PEP, the CD Director may require the task force to employ outside professional assistance in PEP implementation.

PEP educational, outreach, and advertising materials shall explain the type of area code change being implemented and the new dialing procedure, identify the region covered by the overlay, and explain that the cost and quality of telephone service will not be adversely affected by the change. The materials should also address the permissive dialing period, the mandatory dialing period, the tasks consumers should do in preparation of the overlay, and the reasons for adding a new area code. The task force shall submit all PEP educational, outreach, and advertising materials to the CD Director for review and approval.

7.3. Potential for Continuation of the PEP Beyond the Overlay Opening Date

In D.99-06-087, we 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 overlay. Therefore, the CD Director shall monitor the effectiveness of the PEP and, if the 70% customer awareness requirement is not achieved by the end of the 13-month implementation period, shall require the task force to continue the PEP to achieve the requirement.

7.4. PEP Funding

Similar to the funding mechanism established in D.05-08-040 for the 310/424 area code PEP, we shall require PEP funds for tasks jointly assigned to all the service providers to come from those service providers holding thousand-blocks in the 818 area code as of the effective date of this decision. The amount collected from each service provider shall be in proportion to the relative percentage of thousand-blocks that it holds as of the effective date of this decision. Any additional assessments or refunds shall be made on the same basis. Individual service provider costs for service provider-specific tasks shall be the responsibility of each service provider.

The task force shall arrange for adequate accounting of the PEP fund to ensure it is properly managed. The budget shall not include the labor costs of each service provider's representatives on the task force. The task force shall periodically report to the CD Director concerning the details of collections and disbursements.

9 D.98-12-081, Ordering Paragraph 7.

10 D.98-12-081, Ordering Paragraph 1.

11 Senior citizens are defined as those 65 and older.

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