III. Discussion
A. Requirement to Open New Area Code
We conclude that in order to avoid exhaust of required numbering resources, the time has come for implementation of the 310/424 area code split. In D.99-09-067, we stated that the public interest demanded an accounting of what numbers are actually in use before we set a date for further 310 area code relief. Now, with that accounting completed, we can state confidently that a rigorous scrutiny of existing number utilization has been undertaken, and several reforms have been instituted to ensure more efficient utilization of scarce numbering resources. Customers have been spared the risk of being prematurely forced to undergo an area code change.
Nonetheless, we remain cognizant of our obligation to provide for adequate numbering resources so that the public may have a competitive choice in selecting a local carrier. The FCC has required that in any area code in jeopardy where the Commission implements number pooling, steps must be taken to adopt an area code back-up relief plan that could be implemented if numbering resources were in imminent danger of being exhausted.
In D.00-09-073, we took a preliminary step toward area code relief by adopting a back-up contingency plan for a geographic split of the 310 area code should it become necessary, as required by FCC directive. The back-up plan adopted in D.00-09-073 provided for implementation of Alternative 1A, the geographic split plan previously proposed by the industry relief planning group as originally described in D.98-05-021. Under the adopted plan, the northern portion, including the majority of Inglewood, and all of Culver City, Marina Del Rey, Mar Vista, Santa Monica, Beverly Hills, West Los Angeles, Malibu and a small portion of the City of Hawthorne and Ventura County shall retain the 310 area code. The southern portion of the current 310 area code, including El Segundo, Hawthorne, Compton, Redondo, Lomita, Torrance and San Pedro shall be split off to form a new 424 area code. The boundary lines and rate centers covered by the new area code are depicted in Appendix A of this order.
While we approved Alternative 1A as the designated back-up plan in D.00-09-073, we deferred its implementation pending independent confirmation that carrier-reported utilization data underlying number exhaust forecasts for the 310 area code were accurate and reliable. Considerable effort went into preparing the March 16, 2000 TD Report on number utilization in the 310 area code (as described above), but the reported results of the Report reflected only the representations of carriers. In order to rely on the findings underlying the TD Report, therefore, we required independent confirmation that representations made by carriers were valid and that they properly conformed with the state and federal rules adopted for reporting purposes. Thus, we ordered TD staff to conduct an independent audit of the number utilization data underlying the TD Report on the 310 area code. The audit report findings were released on February 16, 2001.
Based on the published audit findings, TD reached three overall conclusions. First, carriers did not deliberately misreport telephone number utilization data for the March 2000 Report on the 310 area code. Second, the audit authenticates the utilization data that carriers submitted for the March Report, except for certain recommended adjustments as noted in the audit report. Third, the additional telephone number adjustments noted in the audit report are not sufficient to extend the life of the 310 area code. As of the date of the audit report, there remained only 12 prefix codes available for assignment, exclusive of codes set aside for number pooling. In addition, two additional codes were due to be returned in March 2001 for reassignment. Out of 16 prefix codes that were initially set aside for pooling in the 310 area code, three codes had been assigned as of February 2001, one code was returned in March 2001. Accordingly, in view of the limited quantity of prefix codes remaining, particularly for carriers that could not participate in the number pool, the audit report recommended that the 310 area codes back-up plan should proceed with implementation.
Parties filed comments on the audit report by March 5, 2001. Although certain parties took exception to various findings in the report, no party questioned the conclusion that implementation of the 310 area code back-up plan should proceed.
On October 16, 2003, the Commission issued D.03-10-060, finding that notwithstanding carriers' claims to the contrary, adequate telephone numbers still remained available at that time in the 310 area code to provide customers and telephone carriers with sufficient service. We concluded that it was not yet necessary to split the 310 area code by implementing the back-up area code split plan adopted in D.00-09-073. Instead, we directed that the additional need for telephone numbers in the 310 area code be closely monitored during the following six months to ensure adequate telephone number supplies.
We also observed in D.03-10-060 that the success of wireless industry compliance with local number portability requirements, which took effect on November 24, 2003, should be evaluated before imposing an area code split in the 310 area code. By porting migrating customers' existing numbers from one wireless carrier to another, wireless carriers no longer require new blocks of numbers for customers migrating between carriers.
The passage of time has provided the opportunity to evaluate the results of number pooling, as well as other number conservation measures adopted by this Commission and the FCC, including those discussed in D.03-10-060. Only six unassigned prefix codes currently remain available in the 310 area code for allotment through the semi-monthly lottery process, and only three prefix codes remain available as a set-aside for replenishing the 310 area code number pool. As of July 29, 2004, a total of 477 thousand-number blocks remained available for assignment in the 310 number pool.
Nonetheless, even with the unused blocks of numbers remaining, there are various constraints on the ability of carriers to make use of these unassigned numbers in meeting current customer service needs. For example, per FCC rules, a certain quantity of unused numbers must remain reserved for carriers' inventory needs. Also, in certain cases, carriers may need numbers in a particular rate center.7 The tabulation set forth in Appendix B shows that the 477 remaining thousand-blocks are not evenly distributed. For example, no blocks remain available in the San Pedro Rate Center. Less than five blocks remain available in each of three other rate centers. Even if there are unused numbers in other rate centers, a carrier may be unable to use those numbers to serve customers in a rate center where there is a shortage of central office prefixes or number blocks.8
Given the limited number of remaining prefix codes and number blocks available for assignment either to the lottery or to the number pool, and continued demand for numbers over the next 16 months, implementation of the 310 area code back-up relief plan must go forward now in order to avoid exhaustion of numbering resources before January 7, 2006 (i.e., the earliest date that new prefix codes would become available for assignment under the implementation schedule adopted herein).
B. Public Meetings
The industry first began customer notification of the impending exhaustion of the 310 area code in May 1997 in accordance with the 24-month customer notification required by Pub. Util. Code § 7930(a). A local jurisdiction meeting for city and county government representatives was held on August 27, 1997, to provide local jurisdictions with a status on the relief process and to gather additional information.
Public meetings were required to occur within six months of the May 1997 customer notification, i.e., by November of 1997. The industry team held four public meetings, one more than required (Pub. Util. Code § 7930) due to the request of the Commission staff to insure adequate coverage of the geographic area served by the existing 310 area code. The industry conducted one meeting per day from November 17-20, 1997, presenting multiple alternatives for a geographic split as well as an overlay relief plan.
Although there was no statutory requirement to do so, the Commission subsequently held additional public meetings during 2001, to provide updated public input regarding the 310 area code geographic split plan in view of the passage of time since the original public meetings held in 1997. These were held in the cities of Carson and Redondo Beach on April 23, 2001, and in Culver City on April 24, 2001. The comments of members of the public appearing to speak were transcribed, and we have taken those comments into consideration in preparing this order.
C. Technical Preparations for New Area Code
The implementation of a new area code requires time for carriers to convert their switches to accommodate dialing of the new area code and to provide advance notice to customers. Some carriers may need more time than others to accomplish the conversion given the size of the networks and the complexity of the conversion. Since the Pacific Bell Telephone Company (Pacific), has the most switches and most complex network, its conversion time represents a critical overall constraint for scheduling the necessary time to prepare for permissive dialing. Pacific must also reconfigure the network to allow each E-911 call to be completed to the appropriate E-911 destination point. Pacific is responsible for these reconfiguration assessments not only for itself, but also for competitive local carriers (CLCs), independent telephone companies, and Public Safety Answering Points.9 Other carriers with fewer switches than Pacific should be able to complete their conversion within a shorter time.
In accordance with industry numbering guidelines, the following industry-standard prefixes should be duplicated (i.e., set aside for the same special use for which they are used in 310) in the 424 area code: the N11 prefixes (211, 311, etc.), 555, 700, 950, 958, 959, and 976. Additionally, the following non-standard special-use prefixes should be duplicated in the 424 area code until such time as the Commission formally addresses the possibility of consolidating or eliminating them throughout the state: 853 (time) and 520 (high-volume call-in).
In D.00-09-073, in which we adopted the 310 area code back-up plan, we directed carriers to begin immediately with any network conversions and E-911 reconfigurations necessary to prepare for the beginning of the permissive dialing period. Undertaking the conversion process early helped to ensure that there would be flexibility once a schedule was adopted, to allow for an expeditious customer notice, to implement the back-up plan without undue delay. Because we ordered carriers to begin making E-911 reconfigurations and switch translations in D.00-09-073 in order to accommodate the new area code, the implementation schedule we adopt should provide sufficient time for completion of any necessary remaining switch translations before the new area code is opened.
D. Public Notification of Implementation Schedule
The implementation period for the new 424 area code must provide sufficient time for the public to prepare for and to incorporate necessary changes reflecting the new area code. An initial notice must be sent to customers advising them of the boundaries of the new area code, the prescribed dates when permissive and mandatory dialing will take effect, and the prefixes that will change to the new 424 area code. Subscribers must go through the process of adjusting to the new area code. Business subscribers, in particular, must notify their own customers of the area code change, and will have to print new business cards, stationary, advertising, etc. with the new area code. We recognize the critical importance of notifying the public as quickly as possible regarding the schedule for opening the new area code in order to make the transition as smooth as possible and to minimize the potential for disruption or confusion regarding the proper area code to be dialed.
In D.00-09-073, we outlined a contingent schedule for implementing the 310 area code back-up relief plan. We envisioned a triggering mechanism to activate the schedule when, or if, we determined that impending code exhaustion warranted implementation. Under the trigger mechanism, the Telecommunications Division Director was to notify the assigned Commissioner and the assigned administrative law judge (ALJ) by letter at any point thereafter when it is determined that code exhaustion would occur within eight months. Upon confirmation of the forecast, the assigned Commissioner, in consultation with the assigned ALJ and Telecommunications Division, was to then authorize the NANPA to provide carrier notification for the back-up plan to take effect. The Assigned Commissioner's authorization to the NANPA was to be made within 30 days of receipt of the notification letter of the Telecommunications Division. In such an event, the NANPA was to immediately notify carriers that implementation of the back-up plan must proceed, indicating the specific dates for permissive and mandatory dialing to begin.
In view of the passage of time since D.00-09-073 was adopted and the continuing depletion of remaining prefix codes, we now believe a more efficient approach is to collapse these two events into one. In this manner, carrier notice shall proceed immediately, and there is no need for a one-month delay waiting for separate TD notification to the assigned Commissioner. Parties were provided an opportunity to comment on this proposed revision to D.00-09-073 by ALJ ruling dated March 30, 2001. No party objected to this revision. We thus find it reasonable to adopt the ALJ's suggested revision in this respect.
Accordingly, we shall dispense with any separate notice from TD, and hereby authorize NANPA to notify carriers immediately to begin implementation of the geographic split plan (Alternative 1A) to take effect under the schedule adopted herein. Carriers shall have 120 days from the effective date of this decision to provide written notification to their customers of the impending area code change. All notifications to customers shall require approval by the Public Advisor's office of the Commission and the Telecommunications Division.
In addition to any regular notice by bill insert, we shall direct carriers to send separate customer notices of the schedule for the area code change, the new 310 and 424 area code boundaries and a list of the prefixes changing to the 424 area code by direct mail within 120 days of today's order. The separate mailings are necessary to help ensure customers receive prominent notice of the new area code. We direct the Telecommunications Division and Consumer Services Division, in cooperation with the Public Advisor, to monitor the customer notification process concerning the new area code split and to advise the assigned Commissioner in the event that further customer outreach efforts are needed.
We are particularly concerned about the need for the new area code to be explained to the customers as clearly as possible, particularly in light of customers' previous experience with suspension of the overlay and mandatory 1+10-digit dialing. In addition to identifying the schedule for permissive and mandatory dialing, the new area code boundaries and a list of prefixes changing to the 424 area code, the notice also needs to explain that the Commission and carriers remain firm on the resolve to use number resources efficiently and to minimize the growth of new area codes in the future.
E. Transitional Dialing Periods
Pub. Util. Code § 7932 requires that a "transitional dialing period" be scheduled as part of the opening of a new area code to provide the public with a period of time to adjust to the change in area code. This transitional period has traditionally been referred to as comprising (1) a permissive and (2) a mandatory dialing period.
For certain area code splits in the past, the Commission has adopted a six-month permissive dialing period. During the permissive dialing period, a called party in the new area code can be reached by dialing either the old or the new area code plus the called party's seven-digit number (for those outside the area code) or simply by dialing the party's seven-digit number (for those within the same area code). The permissive dialing period is followed by a mandatory dialing period, during which a calling party outside the area code must dial the new area code to reach a party in that area.10 If the old area code is dialed, the calling party hears a recorded message to hang up and redial using the new area code. From the consumer's perspective, the new area code takes effect at the beginning of the mandatory dialing period.
There is no statutory restriction on how long the transitional dialing periods must last. The situation we face in terms of number resources in the 310 area code, however, constrains the available time for permissive and mandatory dialing periods. Under the preliminary schedule framework anticipated in D.00-09-073, permissive dialing was to begin two months from the effective date of the notice from the NANPA and to continue for three months thereafter. Under that assumption, seven months would elapse from the date of NANPA's notification to the industry until the end of the mandatory dialing period.
The ALJ ruling issued on March 30, 2001, solicited comments on revisions to the implementation timeframe for the 310/424 area code split to provide for additional flexibility in scheduling the transitional dialing periods, rather than adhering strictly to the scheduling assumptions underlying D.00-09-073.
As noted in the ALJ ruling, the premise underlying the seven-month schedule adopted in D.00-09-073 was that insufficient codes were available to permit a longer preparation period, and that the prefix codes reserved for number pooling would not be available for allocation to the 310 lottery. Yet, the ALJ ruling noted that the experience with the 310 number pool indicated that some of the prefix codes previously reserved for pooling were able to be reassigned to extend the lottery without jeopardizing carriers' access to numbers through the pool. By reallocating NXX codes between the pool and the lottery, additional flexibility has been added to the required time for the 310 area code split plan implementation.
A group of joint commenters11 responded to the ALJ ruling, opposing the idea of transferring prefix codes from the pool into the lottery, arguing that any reduction in the 310 number pool inventory below its current level at that time would be inconsistent with FCC rules that require a six-month inventory of numbers in the pooling inventory. The joint commenters pointed to the 310 Pooling Administrator's inventory data account indicating that only approximately six months of inventory remained in the pool. The joint commenters therefore claimed that there are no excess codes in the number pool that were available to be transferred to the lottery in order to extend the life of the lottery.
We disagree with the claim that transferring prefix codes from the pool to the lottery violates FCC rules. Commenters' claim is based on the premise that prefix codes in the inventory will last no longer than six-months. Yet, comparisons of actual demand for thousand blocks versus forecasted demand since the inception of the 310 area code number pool indicate that carriers have consistently overestimated their actual demand for number blocks by several orders of magnitude. For example, for the year 2000, carriers forecasted 883 thousand-number blocks would be needed to meet demand. In reality, however, only 161 thousand-number blocks were actually used by carriers participating in the 310 NPA number pool, representing less than 20% of forecast demand. Likewise, in 2001, carriers forecasted that 581 thousand-number blocks would be required from the 310 area code number pool to meet demand. By contrast, only 20 blocks were actually assigned during the same period. Thus, only 3.4% of the forecast block demand was actually needed during 2001. For 2002, carriers forecasted a need for 626 blocks, but actually took only 227 blocks. The relative increase in 2002 over 2001 was due to the impact of wireless carriers entering the number pool.
In view of the consistent pattern of carriers' significant overforecasting of demand for thousand blocks, carriers' forecasts of blocks required to meet six-month inventory needs are also likely to be overforecasted. To address this concern, an Assigned Commissioner's Ruling was issued on July 16, 2004, soliciting comments on the development of carriers' number inventory guidelines. More accurate forecasting of inventory requirements will promote efficient number utilization.
We conclude that flexibility exists to reallocate prefix codes between the pool inventory and the lottery allotment as deemed necessary to best provide for carriers' number resource needs between now and the time that the 310/424 area code split is fully implemented. We direct our TD staff to continue to monitor the remaining numbering resources in both the number pool and the lottery, and to make any necessary reallocations in order to provide carriers with necessary numbering resources through the implementation of the 310/424 area code split.
We conclude that it is appropriate to extend the schedule for permissive and mandatory dialing beyond the limited periods anticipated in D.00-09-073. The combined length of the permissive and mandatory dialing periods determines how long before a new supply of numbers becomes available to carriers at the end of the mandatory dialing period. Transitional dialing periods that are too long increase the risk of running out of numbers to meet customers' demand. Transitional dialing periods that are too short, however, increase the potential for customer confusion or disruption resulting from dialing the wrong area code. Customers need time to notify others, change stationery, and business cards, change their listings in printed catalogs, and to reprogram security alarm equipment, etc., to reflect the new area code. Customers also need time to acclimate themselves to dialing numbers in the new area code.
In view of these tradeoffs, we shall establish a three and one-half month permissive dialing period and a four-month mandatory dialing period. The permissive dialing period will provide the necessary time for customers to become acquainted with the new area code while expediting the waiting period before new prefix codes can become available to carriers and their customers. At the end of the permissive dialing period, mandatory dialing of the 424 area code will take effect, requiring callers in the 310 area code to dial the 424 area code to reach a number in that area code. If a customer fails to dial the 424 area code during the mandatory dialing period, a recorded message will instruct the caller to hang up and redial using the 424 area code. This message will continue to play during the four-month mandatory dialing period.
Carriers will not be able to actually issue new numbers from prefixes in the 424 area code, however, until the end of the mandatory dialing period. During this period, numbers that were assigned in the 310 area code prior to the split cannot be reassigned as new numbers to customers in the 424 area code. The mandatory dialing period provides a further opportunity for the public to become accustomed to dialing the new area code. It also allows time for calling card and third-party type call billing records to be applied to the correct customer accounts before the prefixes assigned to the 310 area code are reassigned in the 424 area code.
After the expiration of the four-month mandatory dialing period, carriers can begin to assign new numbers from the prefix codes created by the 310/424 area code split. During the four-month mandatory period, carriers can still draw upon any existing inventory of prefix codes they hold as a source for providing their interim number needs. As prescribed in the Assigned Commissioner's Ruling dated November 15, 1999, setting up the 310 number pool, carriers were permitted to keep a six-month inventory of numbers in the 310 area code
The constrained number resources in the 310 area code preclude delaying the start of mandatory dialing to a later period. In order to guard against adverse impacts on customers from insufficient time to prepare for the new area code, therefore, careful attention needs to be paid to effective customer outreach and notice concerning the new area code.
Under existing industry practice, at the end of the prescribed mandatory dialing period, all service providers and carriers remove from their switching networks the special recorded message instructing the caller to redial using the new area code. After the special recording is removed, callers dialing the wrong area code will simply hear the standard "Vacant Code" recording indicating that call cannot be completed as dialed and instructing the caller to check the number and dial again. This standard recorded announcement continues to play for each prefix until such time as it is assigned to a service provider with a rate center and routing information as provided in the Local Exchange Routing Guide (LERG). Once the prefix is assigned to a service provider, any call dialed to that prefix using the wrong area code will trigger a recorded message indicating that the number is no longer in service. As numbers in that prefix are assigned to new customers, the caller will merely reach a wrong number.
We are concerned that the public interest is not adequately served by the present industry practice of discontinuing the special recorded message instructing the caller to dial the new area code immediately after the end of the prescribed mandatory dialing period. We recognize that there may be certain technical, economic, or regulatory issues involved in continuing the special recorded message beyond the end of the mandatory dialing period. Yet, we believe the time has come to critically consider new alternatives that will provide additional support to the public in adjusting to a new area code. In D.03-11-022, in connection with implementing the 909 area code split, we directed parties to submit comments on alternative measures that may be feasible to extend the period during which the special recording is played directing callers to dial the new area code, and to identify any technical, economic or regulatory constraints that may need to be resolved and proposed solutions for their resolution in order to implement the special recording for an indefinite period until the numbers subject to the area code change are assigned to a new customer. We shall address this issue for the 310/424 area code split in a subsequent order based on review of comments previously filed pursuant to D.03-11-022.
F. Number Pooling Requirements
As a condition of approving implementation of the 310/424 area code split, the existing 310 thousand-block number pooling shall continue in effect and apply to all numbers assigned in the 424 area code (except for paging companies) concurrent with its opening. All carriers other than paging shall be required to obtain 424 area code numbers in thousand-block increments through the number pool. Until paging carriers acquire pooling capability, they shall be permitted to obtain full 10,000-block prefix codes subject to meeting the applicable eligibility requirements as previously established by Commission decisions. As soon as those carriers acquire pooling capability, they shall immediately thereafter be required to go through the number pool to meet any subsequent need for new numbers.
The existing thousand-block number pool for the 310 area code shall continue in operation after the split is implemented. Continued operation of the 310 number pool will help ensure that the positive efficiency gains that have been achieved in the 310 area code will continue after the split, and that the area code will not soon be facing yet again another claim of early exhaust of its useful life. Pursuant to the FCC's awarding the national Pooling Administrator contract, NeuStar, Inc. will continue to act as Pooling Administrator both for the 310 and 424 area code number pools. Since federal number pooling has taken effect, the state-mandated 310/424 pools will operate pursuant to federal program rules.
G. Area Code Change for Customers of Wireless Carriers and Paging Carriers
In D.96-08-028, we adopted a policy permitting wireless carriers served by a tandem switch to retain their existing area code assignment even where wireline carriers serving the same geographic area are subject to an area code change. We adopted this grandfather provision to relieve wireless and paging customers of the burden to physically bring in their telephone equipment to be reprogrammed, or else reprogram it themselves. Customers of wireline carriers, by contrast, do not have to bring in their handsets to their serving carrier for reprogramming when they are subject to an area code change.
The policy of not requiring wireless carriers to change the area code of their customers' numbers assigned to rate centers subject to an area code change contributes to less efficient use of numbering resources. By carrying an area code that is not consistent with the geographic area in which it is located, the wireless customers' phone numbers effectively become stranded and cannot be reassigned to wireline carriers through number pooling or other means. In addition, grandfathering imposes 10-digit dialing for these numbers. On April 17, 2003, D.03-04-056 was adopted which implemented a program to phase out the grandfathering of area code assignments for wireless carriers.
Consistent with the policy set forth in the D.03-04-056, all 310 area code numbers (wireline, wireless and paging) assigned to rate centers designated to change to the 424 area code shall be required to take the 424 area code. Wireless carriers will not be allowed to grandfather their 310 area code numbers in the new 424 area code.
H. Audit of Number Reporting By Carriers
As noted above, we ordered an independent staff audit to be conducted of number reporting by carriers in the 310 area code prior to implementing a schedule for the geographic split to proceed. We ordered the independent audit because we otherwise had no independent verification of the carriers' representations concerning number utilization. We note that a similar concern exists not just with the 310 area code, but wherever area code relief plans are under consideration. Therefore, in recognition of this generic concern, it is in consumers' best interests that an independent staff verification of carrier-reported number utilization be made prior to our considering adopting a back-up plan for all future area code relief.
I. Adopted Implementation Schedule
The NANPA shall notify carriers to implement the 310/424 area code split according to the following schedule:
Event |
Due Date |
Carriers to notify customers regarding the split |
Within 120 days |
Permissive dialing begins |
May 21, 2005 |
Second customer notice |
Within three months of beginning date for Mandatory Dialing |
Mandatory dialing begins |
September 10, 2005 |
First code activation |
January 7, 2006 |
