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Geographic telephone numbers Geographic telephone numbers Safeguarding the future of geographic numbers ( Redacted for publication) Further Consultation Publication date: 20 March 2012 Closing Date for Responses: 2 May 2012 Geographic telephone numbers Geographic telephone numbers Contents Section Page 1 Summary 1 2 Introduction and background 6 3 Closing local dialling in the Bournemouth 01202 area code 18 4 Charging for geographic numbers 34 5 Allocation of 100-number blocks 76 6 Summary of proposals and next steps 94 Annex Page 1 Background on geographic numbers 99 2 Data analysis and forecasting 109 3 Approach to number charges when the CP using the number is different from the range holder 120 4 Implementing number charging in a pilot scheme 130 5 Reviewing our administrative processes for allocating geographic numbers 141 6 Legal framework 145 7 Notification of proposals for a modification to provisions of the Numbering Plan under section 60(3) of the Communications Act 2003 149 8 Notification proposing the setting of new conditions under section 48A(3) of the Communications Act 2003 153 9 Respondents to the September 2011 statement and consultation 161 10 Consultation questions 162 11 Responding to this consultation 163 12 Ofcom‘s consultation principles 166 13 Consultation response cover sheet 167 Geographic telephone numbers Section 1 1 Summary 1.1 This consultation concerns geographic telephone numbers - these are fixed-line telephone numbers that begin with ‗01‘ and ‗02‘. These numbers are widely recognised, valued and trusted by consumers. Ofcom administers this national resource and seeks to ensure that sufficient numbers are available to allocate to communications providers (‗CPs‘) so that they can provide a choice of services to consumers. 1.2 Geographic numbers are an increasingly scarce resource. Although the quantity of geographic numbers that CPs already hold in total exceeds likely demand from end- users, individual CPs nevertheless need new allocations of geographic numbers from time to time. Our forecast of CPs‘ demand shows that, unless we take action, we risk running out of geographic numbers to allocate to CPs in some of the areas which have four- and five-digit area codes1 in the foreseeable future. We therefore consulted in November 2010 and September 2011 on measures designed to ensure the ongoing availability of geographic numbers across the UK. 1.3 In September 2011 we decided that where an area with a four-digit area code needs more local numbers, we will increase supplies by closing local dialling. This means that fixed-line phone users in those areas will need to dial the area code when making local calls. This change in dialling behaviour enables us to release new numbers for use2 without requiring any changes to existing phone numbers. Dialling the full number will not affect the cost of the call. 1.4 The Bournemouth 01202 area code will be the first area code in which we will implement our policy for increasing the supply of numbers in this way. Demand for 01202 numbers is high and we forecast that we will run out of new 01202 numbers to allocate to CPs later this year if we do not take action. In this document we are consulting on the date for closing local dialling in the Bournemouth area. 1.5 We are also consulting further on some measures to improve the effective and efficient use of geographic telephone numbers that we proposed in the November 2010 and September 2011 consultations. These measures are introducing a pilot scheme to charge CPs for allocated numbers in 30 specified area codes and allocating smaller blocks of numbers in 11 areas with five-digit area codes. 1.6 In summary, the purpose of this document is to: 1 These are area codes in the format 01XXX and 01XXXX. Areas with ‗0‘ plus two-digit area codes (such as London (020) and Cardiff (029)) and ‗0‘ plus three-digit area codes (such as Glasgow (0141) and Nottingham (0115)) are not likely to run out of numbers. The area codes running out of numbers are some other large population centres, for example Brighton (01273), Bournemouth (01202) and Aberdeen (01224) with ‗0‘ plus four-digit area codes. 2 We can create new supplies of local numbers (without changing anyone‘s phone number) by stopping the ability to dial a local number without the area code. Doing so will allow us to make new local numbers beginning with ‗0‘ and ‗1‘ available for use. For example, closing local dialling in the Bournemouth 01202 area code would make 01202 0XXXXX and 01202 1XXXXX numbers available for use. We cannot use such numbers while local calls are dialled without the area code because phone networks can confuse them with dialling codes which start with ‗0‘, or with numbers for certain services such as 150, 1471 and 118XXX. 1 Geographic telephone numbers consult on 1 November 2012 as the date on which local dialling in the Bournemouth 01202 area code will be closed. From that date, local consumers would need to include the 01202 area code when dialling local calls from fixed- line phones; consult on the final arrangements for introducing number charging in a pilot scheme covering 30 area codes with the fewest number blocks remaining available for allocation; consult on the detailed arrangements to make a limited quantity of blocks of 100 numbers available to allocate to CPs in the 11 areas with five-digit area codes; and consult on the legal instruments to give effect to these measures. Background 1.7 We maintain forecasts of future availability of new geographic numbers for each of the UK‘s 610 geographic area codes. While the forecasts, by their nature, are subject to significant uncertainties, they nevertheless indicate that if we do not make changes, we risk exhausting our stocks of geographic numbers to allocate to CPs from 2012 onwards, with seven area codes running out of numbers before 2016 and 45 area codes, covering around 18 per cent of the UK population, running out by the end of 2021. 1.8 We allocate contiguous blocks of geographic numbers by area code to CPs that meet certain eligibility requirements. Competition in fixed-line voice services has been developing strongly for many years, and there are now some 300 CPs with allocations of geographic numbers. Currently, we do not charge CPs for phone numbers. 1.9 Under current arrangements, a CP that needs new numbers in an area generally applies to us for a new allocation while a large number of other CPs hold stocks of unused numbers in the same area code. Since our supplies of new numbers in any area code are limited, we could exhaust our supplies for some areas even though the total quantity of numbers already held by CPs for those areas would exceed local consumers‘ needs. If this were to happen, consumers could still obtain phone services with new local numbers, but only from CPs with unused numbers from previous allocations. Consumers may then be constrained in their choice of supplier and denied the benefits of competition and new services. 1.10 Capacity limitations in older equipment used in some networks have so far required us to allocate all geographic numbers in blocks of at least 1,000 contiguous numbers. These limitations are not likely to be relieved substantially in the foreseeable future. Allocations of 1,000 numbers may be larger than some CPs require in some areas, leading to inefficiency in number use. While any of the numbers from a block are in use, the CP to which the block has been allocated cannot return the remaining unused numbers in that block to us for allocation to another CP. 1.11 In light of impending shortages of geographic numbers in some area codes, we launched a review of geographic number management. On 25 November 2010 we 2 Geographic telephone numbers published a document (‘the November 2010 consultation‘)3 inviting views on our proposals to change the way that we manage geographic numbers. They included: measures to make new geographic numbers available in area codes which are likely to exhaust their current supplies in the foreseeable future; a pilot scheme for charging CPs for geographic numbers allocated to them in area codes with the fewest number blocks remaining available for allocation; and steps to strengthen the administrative processes which we use to allocate geographic numbers to CPs. 1.12 Following the November 2010 consultation, we published a statement and further consultation on 7 September 2011 (‗the September 2011 statement and consultation‘).4 In that document we: set out and explained our decision on how we will increase the supply of geographic numbers in four-digit area codes where more numbers are required; consulted on revisions to our proposal to charge CPs for geographic numbers in certain area codes; and consulted on a limited roll out of smaller number blocks in 11 areas with five-digit area codes. Proposals for consultation in this document We will close local dialling in the Bournemouth 01202 area code and we propose to do so on 1 November 2012 1.13 Our forecast for number availability in the Bournemouth 01202 area code is that we will run out of our available stock of numbers to allocate to CPs later this year. We need to safeguard the future supply of landline numbers in the Bournemouth area to ensure that a lack of numbers does not prevent consumers and businesses from enjoying the widest choice of telecoms providers and services. We therefore need to consider an appropriate date on which to close local dialling in the 01202 area code. 1.14 We established an industry group to help us develop a detailed plan for the implementation of closing local dialling in the 01202 area code.

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