BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION

Relief Plan for the 570 NPA : P-2009-2117193

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COMMENTS OF THE OFFICE OF CONSUMER ADVOCATE ______

I. INTRODUCTION

The Pennsylvania Office of Consumer Advocate (OCA) hereby files these Comments in

response to the Order adopted by the Pennsylvania Public Utility Commission (Commission) in

the above-captioned matter on July 29, 2009 and published in the Pennsylvania Bulletin on

August 8, 2009. In this Order, the Commission discusses the recurrence of area code exhaust for

the 570 Numbering Plan Area (NPA) that comprises northeastern Pennsylvania.1 In its July 29th

Order, the Commission seeks Comment on “how to implement the new area code” and “when the new area code needs to be implemented.” July 29th Order at 9.

As indicated in the Commission’s Order, a petition was filed on July 1, 2009 by Neustar

Inc., (Neustar), the North American Numbering Plan Administrator, in its role as neutral third

party area code relief planner for Pennsylvania. In that petition, Neustar requested that an “all services distributed overlay for the geographic area covered by the 570 NPA” be implemented.

Neustar Petition at 1. With an “all services distributed overlay,” a new area code is assigned to

the same geographic area as the existing area code. July 29th Order at 7. This form of area code

relief requires “10-digit dialing” for all calls but eliminates the need for approximately half of the

area code to automatically change their number to a new area code. In contrast, implementing

1 The geographic area covered by the 570 NPA is comprised of 21 north-central counties and includes the cities of Williamsport, Wilkes-Barre, Scranton and Stroudsburg. July 29th Order at 4.

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area code relief through a “geographic split” allows customers to retain 7-digit dialing for all

calls, but approximately half of the population would need to change signage and printed material, as well as reprogram any auto-dialing equipment, to recognize the new area code.2

Neustar estimated that the 570 NPA was projected to exhaust, i.e., run out of assignable

telephone numbers, during the third quarter of 2011.

The OCA has been active on area code issues at both the state and federal levels for more

than a decade. In addition to its involvement in area code issues before the Commission, the

OCA has long advocated consumer interests regarding area code issues on behalf of the National

Association of State Utility Consumer Advocates (NASUCA) before the Federal

Communications Commission (FCC) and the North American Numbering Council (NANC).

NANC advises the FCC on numbering issues.

The OCA appreciates the extensive efforts of this Commission over the past decade to judiciously implement new area codes in a manner that is both pro-competitive and pro-

consumer. This Commission, and particularly Commissioner Kim Pizzingrilli, has been a leader

nationwide in number conservation efforts for many years. This is particularly important given

the fact that not only are telephone numbers in each area code diminishing, but that the total

number of areas codes is diminishing as well. Such leadership has benefitted consumers not only

in Pennsylvania, but throughout the country.

At this time, the OCA submits that area code relief should only be approved after it is

determined by the Commission that a new area code is in fact truly needed. Once such a

determination has been made, the OCA concurs with the recommendation that area code relief

2 See, July 29th Order at App. A, for a complete list of advantages and disadvantages of the various forms of area code relief.

2 should be implemented for the 570 NPA in the form of an all services overlay.

In support of these Comments, the OCA submits as follows:

II. SUMMARY OF COMMENTS

The Commission should first determine whether an additional area code is truly needed.

It is important to recall that this Commission was asked to grant virtually the same relief nearly a decade ago when Neustar filed a Petition in July 2000 stating that the numbers in the 570 area code would be exhausted by the first quarter of 2002. Needless to say, that relief was not granted at that time, and the Commission and the industry instead took steps to preserve the 570 area code in its present form for another decade. As it has done in the past, the Commission should assure itself that area code relief is needed now. Such a determination requires examining whether the telephone numbers previously distributed have been used efficiently, and reclaiming those telephone numbers that have been found to be used inefficiently.

The Commission should continue its proactive approach to numbering issues and ensure that the existing telephone numbers assigned in the 570 area code are being used efficiently and reclaim those numbers that are not. This is important given the history of the 570 area code as well as current indications that telephone numbers could be used more efficiently in lieu of implementing a new area code. The OCA commends the Commission for its recent Petition to the FCC seeking authority to implement thousands-block pooling throughout Pennsylvania.3

The OCA supports the Commission’s Petition as an effective form of ensuring that numbering

3 Pennsylvania Public Utility Commission’s Petition for Delegated Authority to Implement Number Conservation Measures, In the Matter of Numbering Resource Optimization, CC Docket No. 99-200 (dated July 13, 2009) (July 13th Petition).

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resources are being utilized efficiently and intends to file Comments at the FCC in support of this

Petition.

In the meantime, however, the OCA submits that, if it is determined that an additional

area code is needed, the OCA concurs with the industry recommendation that the Commission should implement an area code overlay in the 570 NPA. An area code overlay will provide the necessary numbering resources without unduly burdening consumers. All existing customers would retain the 570 area code and would not have to change their telephone number. The

overlay will create less financial impact on business customers because there will be no need to

change signage, advertising, stationery, etc. unless they currently only show the 7-digit numbers.

An overlay also avoids the disruption associated with drawing a new boundary required when

implementing a geographic split. The benefits of area code overlay relief outweigh any

detriments.4

III. COMMENTS

A. Introduction.

The Pennsylvania Commission has been at the forefront of area code proliferation issues

nationwide for more than a decade. Even before the introduction of local exchange competition

brought about with the passage of the Federal Act of 1996 (TA-96),

Pennsylvania experienced one of the first new area codes in the country when the 215 NPA in

southeastern Pennsylvania was geographically split and the 610 NPA was introduced. Following

4 The OCA would note in this regard that when this question last arose nearly a decade ago, the OCA supported a geographic split primarily because of concerns over customer confusion with 10-digit dialing and potential anti- competitive impacts on those entities that received the new overlay codes. Based on our experience with overlay codes in other portions of Pennsylvania over the last 10 years as described above, however, the OCA would now agree with the recommendation in favor of an overlay at this time.

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the passage of TA-96, which included specific provisions regarding numbering administration,

see, 47 U.S.C. § 251(e), the Commission recognized the value of thousands-block pooling when

it petitioned the FCC for authority to conduct pooling trials. Thousands-block pooling is the

distribution of telephone numbers to carriers in blocks of 1,000 (NXX-X), instead of in blocks of

10,000 (NXX). That petition led to the FCC’s seminal “Pennsylvania Numbering Order,”5 one

of the FCC’s first major Orders on area code issues.

Since the FCC’s Pennsylvania Numbering Order, this Commission has also been proactive in petitioning the FCC for additional numbering authority, including most recently filing a Petition for Delegated Authority to Implement Number Conservation Measures filed on

July 13, 2009 wherein the Commission seeks authority to mandate thousands-block pooling throughout Pennsylvania. Currently, the Commission is only permitted to mandate thousands- block pooling in certain rate centers, but the July 13, 2009 Petition to the FCC would allow the

Commission to mandate thousands-block pooling in every . Once the Comment period is opened, the OCA intends to file Comments at the FCC in support of that Petition. The

Commission’s number conservation efforts have even included ordering the rescission of area code relief proposed for the 835 area code in southwestern Pennsylvania and the 445 area code for southeastern Pennsylvania once the Commission determined the additional area codes were not needed. The Commission should be commended for its efforts to manage scarce numbering resources in a pro-competitive and pro-consumer manner.

Commissioner Pizzingrilli has been particularly active on number conservation for the

Commission throughout her tenure as Commissioner. Commissioner Pizzingrilli has recognized

5 Petition for Declaratory Ruling and Request for Expedited Action on the July 15, 1997 Order of the Pennsylvania Public Utility Commission Regarding Area Codes 412, 610, 215 and 717, Memorandum Opinion and Order and Order on Reconsideration, 13 FCC Rcd at 19027 (1998).

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that “[a]dding new area codes has a detrimental impact on the Commonwealth” that forces

consumers to incur substantial costs, such as reprogramming phones and changing signage and

stationery, while the phone companies incur implementation costs.6 In addition to these initial

problems, Commissioner Pizzingrilli has recognized that “the viability of the entire numbering

system in North America is threatened” because “[t]here are only a finite number of area codes

available” and thus, it is imperative that the Commission “continue[s] to preserve existing area

codes and ensure that numbering resources are used efficiently.”7 As discussed further below,

there are obviously fewer than one thousand three-digit area codes available for the national

calling system, and when those numbers run out, the entire numbering system will have to be

revamped.

The Commission should continue to remain proactive in its efforts to ensure that

numbering resources are utilized efficiently. The impact of area code exhaust will cause

significant burden and expense and all reasonable efforts should be taken to avoid such a situation if it can be avoided. As a result, the Commission should assure itself that telephone numbers in the 570 area code are being used efficiently. If such assurances have been received, the Commission should implement an area code overlay for the 570 NPA.

B. The Commission Should Determine Whether A New Area Code Is Truly Needed And, If So, Implement An All Services Overlay Area Code In the 570 NPA.

1. The Commission should only implement a new area code after having taken the necessary steps to ensure that such actions are in fact necessary.

6 Joint Statement of Chairman Glen R. Thomas and Commissioner Kim Pizzingrilli, In re NXX Codes Designated as Unavailable in the 724, 215, 267, 610 and 484 NPAs to be Assigned to Verizon Pennsylvania, Inc. or Released, at 2, Docket Nos. P-00961027, P-00961061 (Aug. 8, 2002).

7 Id.

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In its July 29th Order, the Commission seeks Comment on when any new area code must

be implemented. July 29th Order at 9. In particular, the Commission asks a series of questions, including what is the shortest amount of time an can be implemented, whether the industry could implement an overlay but not activate it until total exhaust of the 570 NPA, and other technical questions. Id. at 12. The OCA appreciates the Commission’s efforts to obtain technical data regarding the implementation of various area code relief alternatives. The OCA defers to the industry for those technical answers but continues to encourage the Commission to implement area code relief only when the Commission is confident that such relief is necessary and in the public interest. This includes taking all possible efforts to reclaim unused telephone numbers and to distribute numbering resources in an efficient manner.

The 570 area code was activated on April 8, 1999 as part of a split of the 717 area code.

July 29th Order at 4. At that time, the 570 area code was projected to have enough telephone

numbers to last for six years. Id. Later projections, however, revised the exhaust date to the first

quarter of 2002. Id. Consequently, industry members, in consultation with Neustar,

recommended that the Commission adopt an all services overlay to provide area code relief with implementation to begin on October 2, 2000 for activation in May 2002. Id. at 5. In September,

2000, however, the Commission directed the industry to delay implementation of its schedule for

area code relief until the Commission could consider comments from the public on the relief

alternatives. In addition, the Commission instituted mandatory thousands-block pooling in

February 2002. Id. at 5, n. 7. By Order entered July 17, 2003, the projected exhaust date for the

570 area code was revised to the second quarter of 2008 and then to third quarter 2011.

The OCA notes that, at the time of that prior Petition, number assignment data raised

serious questions about the utilization rates of certain NXX codes in the 570 NPA. For example,

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in Comments filed on October 30, 2000, the OCA pointed out that there were 47 NXX codes, or

470,000 telephone numbers, assigned to the Wilkes Barre exchange even though Wilkes Barre

had a population of only 42,358 at that time. As noted by the OCA, the largest holder of NXX

codes in Wilkes Barre at that time was a company called CCCPA, Inc. d/b/a CONNECT which

had been assigned fifteen 10,000 number NXX codes in Wilkes Barre alone. Thus, CCCPA

CONNECT alone had 150,000 telephone numbers in Wilkes Barre, enough to provide nearly

four telephone numbers to every man, woman and child in the Wilkes Barre area, even though,

to OCA’s knowledge, there was no evidence that this company was providing service to any

customers in Wilkes-Barre at that time.

Rather than implement a new area code for the 570 NPA at that time, the Commission

took a series of steps, including thousands-block pooling and number reclamation, to preserve

our Commonwealth’s numbering resources. As noted above, the Commission has recently

petitioned the FCC for additional numbering authority so that it can mandate thousands-block

pooling in every rate center in Pennsylvania, not just those in the top 100 metropolitan statistic

areas (MSA). In that Petition, the Commission notes that 61 out of 180 rate centers in the 570

NPA are considered “optional” for pooling purposes.8 Thousands-block pooling, however,

should be implemented in all 180 rate centers in the 570 NPA to ensure that numbering resources

are being used efficiently throughout the entire area code, not just in selected rate centers.

Implementing thousands-block pooling in every rate center in the 570 area code will more

efficiently use numbering resources and could prolong the life of the area code.

8 See, July 13, 2009 Petition at 7. In rate centers considered “optional” for pooling purposes, the Commission cannot require a carrier to take numbers in blocks of 1,000, instead of blocks of 10,000.

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As the Commission is well aware, thousands-block pooling is a more efficient way to

allocate numbering resources. As the Commission illustrated in its July 13th Petition to the FCC

to note the efficacy of thousands-block pooling:

For example, in March 2002, the telecommunications industry had just agreed to recommend to the Pa PUC an all-services distributed overlay because the 814 NPA was projected to exhaust in 1Q2005. However, as mentioned above, 1K number pooling was implemented in the 814 NPA in August 2002. Initially, within six months of the implementation of 1K number pooling in the 814 NPA, the projected life of the 814 NPA was extended two years – from 1Q2005 to 3Q2007. A year later, or April 2004, the projected exhaust date for the 814 NPA was extended another two years or until 4Q2009. Again, in October, 2005, the 814 NPA projected exhaust date was extended to 3Q2010. Lastly, the 2006 NPA Exhaust Analysis showed that the life of the 814 area code was extended to 1Q2011.9

Simply put, thousands-block pooling works to extend the life of area codes.

Furthermore, the Commission must make sure that the numbers that already have been

distributed are being used efficiently. For example, the OCA notes that in the petition filed at

this docket on July 1, 2009, the industry provides a summary of NXX code usage in the 570

NPA as of May 27, 2009.10 In that summary, the industry identifies the number of NXX codes

that have been assigned in the 570 NPA each month since January 2006. For the most part, the

number of codes assigned each month since January 2006 is either 0, 1, 2, 3 or 4. There are two

months when 5 codes were assigned and two months when 6 codes were assigned. In October,

2008, however, 14 codes were assigned and in March, 2009, fifty-five (55) codes were assigned in that month alone. The Petition does not explain the reason for the extreme spike in demand for NXX codes in March 2009, but it is important to ensure that those 550,000 telephone

9 Id. at 7-8.

10 Neustar Petiton at Exhibit A, Attachment 2.

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numbers distributed in March 2009 alone are being used efficiently. The OCA submits that this

issue should be thoroughly explored before a final decision is reached on the implementation of

an additional area code.

A more efficient use of numbering resources is necessary particularly since, according to

the most recent FCC reports, only 48.1% of all telephone numbers nationwide from current area

codes were assigned to customers.11 In total, Pennsylvania has assigned 48.6% of its usable

telephone numbers12 with the 570 NPA specifically having assigned 42.8% of its usable

telephone numbers.13 In contrast, some area codes in other states currently have reached

utilization levels of 77% and 75.3%.14 Any unused Pennsylvania numbering resources should be

reclaimed if they are not being used efficiently before any new area code is implemented.

Prior to ordering a new area code, the OCA recommends that the Commission ensure that all numbering resources in the 570 area code are being used efficiently through the greatest possible use of thousands-block pooling and reclaiming any unused numbers that have already been distributed.

2. An all services overlay is the preferred method of implementing a new area code for the 570 NPA if one is found to be necessary.

In its July 29th Order, the Commission seeks Comment on how to implement any new

area code, if one is found to be necessary. In particular, “the Commission is seeking comments

on the five relief alternatives submitted by [Neustar] to the industry and is open to suggestions

11 See, Numbering Resource Utilization in the , Federal Communications Commission Wireline Competition Bureau Industry Analysis and Technology Division, March, 2009, at Table 4 (March 2009 Utilization Report). Report of utilization data as of June 30, 2008.

12 Id.

13 Id., at Table 6.

14 Id. New York’s area code 646 is the most utilized area code with 77.0% of numbers assigned to customers and Arizona’s area code 480 is the second most utilized area code with 75.3% of numbers assigned to customers.

10 regarding any other potential alternative for providing relief to the 570 NPA.” July 29th Order at

10. The alternatives include an area code overlay and various geographic split alternatives. Id. at App. A. The Commission further asks Commenters to consider what form of relief would create longer lasting NPAs for the 570 region and what form of area code relief is least disruptive to consumers. Id. at 11.

To the extent that the Commission determines that an additional area code is necessary, the OCA supports the industry recommendation for the implementation of an all services overlay. The area code overlay maintains the same geographic scope of the area code but adds a new area code to the area. The area code overlay requires all telephone calls to be made using

10-digit dialing and requires consumers to use two different area codes for local calls in their own area. An area code overlay, however, avoids a boundary line being drawn that requires all residential and business customers on one side of the boundary to receive a new area code and incur the costs associated with having a new area code.

The OCA initially opposed an all service overlay when it was first proposed for the 570

NPA earlier this decade. The OCA’s opposition was based on a variety of reasons, including the competitive disadvantages that are created by giving new entrants telephone numbers associated with a new area code that may be unfamiliar to consumers. Other disadvantages of an overlay include the consumer burden associated with the need to reprogram all telephone equipment to incorporate 10-digit dialing and the difficulty associated with remembering a 10-digit phone number instead of a 7-digit phone number.

As experience has been gained with overlay area codes in other portions of the

Commonwealth and the Nation, however, concerns about these competitive and consumer issues related to area code overlays have been alleviated or reduced. As more overlays have occurred,

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consumers now are less inclined to associate an area code with a particular geographic area and have become more accustomed to 10-digit dialing. This has also been accompanied by advances in telephones themselves, where many calls now are made with the push of a single button, rather than the dialing of seven, ten or eleven digits. Consumer outreach and education have also accompanied area code overlays. Additionally, because wireless users often keep their same telephone number when moving to different area codes, the area code has become less distinctive. The competitive disadvantage in having a phone number with an area code that may not match the traditional area code for a particular geographic location appears to be less significant. The OCA has come to the conclusion that the disadvantages of implementing an area code overlay are less than the disadvantages associated with implementing a new area code via a “geographic split.” In particular, with a geographic split, approximately half of all consumers and businesses instantly need to change their telephone number. Geographic splits have a larger impact on a greater number of existing customers due to changes required in customers’ existing telephone numbers.

As such, the OCA submits that the Commission should implement an all services area code overlay but only after it is determined that such additional numbering resources are necessary.

C. Area Code Conservation Is Important In Light Of The Extraordinary Cost Of Running Out Of Area Codes.

The OCA submits that, as the Commission considers how and when to implement any new area code in northeastern Pennsylvania, it consider not only the depletion of numbering resources within each area code but also the depletion of the overall number of area codes available for assignment in the current 10-digit dialing protocol. That is, we are not only running out of numbers within each area code; we are also running out of area codes. Once the overall

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number of usable area codes is depleted, the entire North American numbering plan will have to

be expanded, possibly to a 12-digit or 14-digit dialing protocol. Such change will cause

significant societal expense and burden. The Commission should consider the overall impact on

usable area codes when determining how and when to implement any new area code in

northeastern Pennsylvania. Conserving numbers within each area code will in turn conserve the

number of area codes needed.

When the North American Numbering Plan (NANP) was established in 1947, seventy-

eight area codes were assigned to carriers in the United States.15 In the following 42 years, thirty-six new area codes were added. In the 1990s, however, 109 new area codes were activated in the United States and, even after extensive conservation efforts by the FCC at the turn of the century, another sixty-four new area codes were activated since February 2000. As a result, the rate at which area codes have been assigned nationwide during the last two decades has been vastly greater than the number of area codes assigned during the first four decades. This pace has led the FCC to conclude that “the remaining supply of unassigned area codes is diminishing” and “a premature exhaust of area codes imposes significant costs on consumers.”16

According to Neustar, there are 800 total NPA combinations.17 Of the 800 possible code

combinations, 119 codes are unassignable because they have been set aside for special

purposes—leaving 681 assignable codes. Of the 681 assignable codes, 378 have already been

assigned—leaving 303 unassigned codes.18 Of the 303 unassigned codes, only 255 are for

general-purpose use; and 162 of the 255 are reserved as future geographic codes.19 That leaves a

15 See, March 2009 Utilization Report, supra, at 3.

16 Id.

17 NANPA 2008 Final Report, North American Numbering Plan Admin., Attachment 1 – Area Code Inventory 23, available at http://www.nanpa.com/reports/NANPA_2008AR.pdf (last visited June 22, 2009). An area code cannot begin with a “0” or a “1.”

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total of 93 unassigned, unreserved, general-purpose codes for all of North America. It should be

noted that when this issue arose in 2002, it was estimated that expanding the North American

Numbering Plan once total exhaustion arrives will cost between $50 billion and $150 billion

dollars.20

As such, the Commission should consider the overall impact on usable area codes when

determining how and when to implement any new area code in northeastern Pennsylvania.

IV. CONCLUSION

WHEREFORE, the Pennsylvania Office of Consumer Advocate respectfully submits that

the Honorable Pennsylvania Public Utility Commission consider these Comments as it

determines what relief should be implemented for the 570 NPA. The Commission has

effectively and judiciously directed area code relief throughout Pennsylvania during the past

decade and should continue to do so. Therefore, the Commission should first ensure that

numbering resources are currently being used efficiently throughout the 570 NPA and reclaim

those that are not. If it is determined that an additional area code is needed, the OCA concurs

with the industry recommendation that an area code overlay should be implemented. Continued

efficiency and scrutiny is appropriate and in the public interest, particularly given the extreme

expense and burden of running out of area codes.

18 Id. In addition to the 287 area codes discussed above, 91 additional area codes have been used for other purposes (i.e., toll-free calling, etc.).

19 Id.

20 Area Code Exhaustion: What are the Solutions?, Hearing Before the Subcomm. on Telecomms. and the Internet of the H. Comm. on Energy and Commerce, 107th Cong. 13 (2002) (statement of Dorothy T. Atwood, Chief, Wireline Competition Bureau, Fed. Commc’n Comm’n). No more recent estimate was identified.

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Respectfully Submitted,

______Joel H. Cheskis, Esquire Assistant Consumer Advocate Pa. Attorney ID # 81617

Counsel for: Irwin A. Popowsky Consumer Advocate

Office of Consumer Advocate 555 Walnut Street 5th Floor, Forum Place Harrisburg, PA 17101-1923 Phone: (717) 783-5048 Fax: (717) 783-7152

Dated: September 8, 2009 116494

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