ORDER NO. 95-438

ENTERED 5/4/95

(ELECTRONIC COPY: APPENDICES NOT INCLUDED)

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UM 740

DISPOSITION: NEW AREA CODE APPROVED

Summary

In this order the Commission approves a new area code plan for Oregon; adopts a geographic division of the state; assigns 503 to the northwest area and the new area code 541 to the south and east area of the state; and establishes a permissive dialing period during which telephone customers can be dialed using either their new or old area code. The new area code will be implemented on November 5, 1995. The permissive dialing period will extend from that date until June 30, 1996.

Procedural History

On February 22, 1995, the Numbering Plan Administration Center (NPA) of the telecommunications industry presented to the Commission an industry proposal to address the pending exhaustion of available prefix numbers within the 503 area code. At its March 7, 1995, public meeting, the Commission directed its staff to conduct an investigation of the industry proposal.

As part of its investigation, staff sought public input, both directly and with the assistance of the telecommunications industry. Input was solicited by: (1) press releases requesting public comments; (2) direct mailings from the Commission to industry requesting written comments; (3) telephone company bill inserts and newsletters; and (4) a market study commissioned by industry.

In addition, public comment hearings were held before Hearings Officers for the Commission in Eugene (April 5) and Lincoln City (April 12).

The Commission staff presented its recommendations to the Commission at its May 2, 1995, public meeting. A copy of the staff report is attached hereto as Appendix A and incorporated by this reference. The Commission reviewed and approved the recommendations in the staff report.

Background

The need for a new area code for Oregon is being driven by the limited supply of unassigned prefix numbers within the existing 503 area code. The maximum capacity of an area code is 792 prefix codes. Currently, 738 prefixes are assigned or reserved, representing 93 percent of the total capacity. Under current growth projections, the available prefix codes may be exhausted as early as the end of 1995. At that point, no more prefix codes could be assigned and expansion of communications facilities in area code 503 would cease. The imminent exhaustion of available prefixes is attributable to a number of factors including an influx of new residential and business customers, expansion by existing business customers, a high rate of growth in cellular and paging services, and the introduction and use of new services, equipment, and features.

Issues

The following issues were presented in this proceeding:

Whether a "split" or "overlay" method should be used to implement a new area code in Oregon.

 

If the "split" method is selected, where should the boundary line be drawn?

 

If the "split" method is selected, which area retains the current 503 area code?

 

What is the proper time frame for implementation?

 

The NPA Proposal

The NPA proposal includes the following recommendations:

The Commission should adopt the "split" method.

 

The split should divide the northwest corner of the state, including Portland and Salem, and the remainder of the state, including all of the Eugene LATA, as well as that portion of the Portland LATA which lies primarily to the east and southeast of the Cascade Mountain range. Also included in the new area would be that portion of the Idaho LATA which extends into Oregon in the Ontario area.

 

The northwest corner of the state should retain the existing 503 area code.

 

The Commission should adopt a "permissive" dialing period extending from November 5, 1995, to April 28, 1996, during which customers in the new area code could be reached by dialing either the old or new area code.

 

Discussion

1. Split vs. Overlay

Under the "split" option, the state would be divided into two geographic areas, one retaining the current 503 area code and the other receiving a new area code. Under the "overlay" method, existing customers’ lines would retain the 503 area code, while all new access lines (telephone, fax, cellular, data) would be given the new area code, regardless of geographic location.

Most of the disadvantages of the "split" method will affect the area of the state which would receive the new area code. They include: (1) change of telephone number and the cost of changing stationery, business cards, advertising and other materials, (2) reprogramming of telephone number in computer systems, (3) reprogramming of cellular phones in the new area code, and (4) use of a "permissive" dialing period, which would necessitate implementing the split earlier than under the overlay method. The split method is projected to provide area code stability until approximately the year 2005 in the high activity metropolitan portion of the split and until approximately 2010 in the remainder of the state.

The primary disadvantages of the "overlay" method include feasibility problems, the use of 10-digit dialing, and the loss of geographic identification. Feasibility is a particular concern. An overlay has never been attempted on a statewide basis. The industry has expressed concerns about the technical and logistical feasibility and workability of the overlay method, particularly in view of the limited time left before the 503 area code reaches saturation. The overlay method is projected to provide stability to approximately the year 2007, at which time a second overlay (third area code) would be required.

Written comments were received from the cellular phone industry, Sprint Communications Company (Sprint), MCI Telecommunications Corporation (MCI), and the Telephone Ratepayers Association for Cost-Based and Equitable Rates (TRACER). Sprint, MCI and TRACER support the "split." The cellular industry comments supported the overlay approach, arguing that 10-digit dialing would be less disruptive in the long term because it will eventually become the standard nationwide.

Written and oral comments from the general public favored the "split" option on the grounds that the complexities of 10-digit dialing and the loss of geographic area code association would be extremely burdensome.

Cost comparison data prepared by the Oregon Independent Telephone Association (OITA) showed only minimal cost differences between the two implementation choices in terms of software costs for providers. Capital expenditures would be required under either option.

The Commission staff recommended adoption of the "split."

The Commission will adopt the staff recommendation to approve the "split" method for implementing the new area code. Adoption of the overlay would result in statewide 10-digit dialing, a burden the Commission is reluctant to impose on the public. In addition, the overlay method is problematic, in view of the customer confusion and feasibility issues, and because there is little experience with its implementation on a statewide basis.

2. Location of the Boundary

The Commission will adopt the NPA recommendation with the adjustments recommended by staff. The boundary will enclose the northwest corner of the state from the Cascade Mountain Range west to the Pacific Ocean, and from the Columbia River south to the northern boundary of the Eugene LATA, except that the boundary runs north of the Lincoln City exchange at the coast. A detailed description of the exchanges included in the northwest area is attached to this order as Appendix B and incorporated by this reference. This northwest section encloses in excess of 60 percent of the telecommunications customers in the state. The North Coast was included because of its proximity to the Portland metropolitan area. The Depoe Bay and Lincoln City exchanges are included in the south/east sector in order to place all of Lincoln County in the same area code and to avoid cross-boundary EAS.

3. Assignment of the 503 Area Code

The staff recommendation concurs with the NPA proposal that the 503 area code be assigned to the northwest split area. Assignment of the 503 area code to the northwest area of the state will minimize the impact of number changes on all Oregon customers. Because of the high growth rate of the northwest area, a new area code will probably be required in that area within 10 years in any event. If the new area code were assigned to that region now, customers in the northwest area would, therefore, face two area code changes in the next decade. This would have particular impact on northwest area business customers engaged in interstate and international commerce. If the new area code is assigned to the south/east portion of the split, it is projected to last 15 years before exhaustion. Under the latter approach, therefore, each region would experience only one area code change in the next 10-15 years. For these reasons, assignment of 503 area code to the northwest area of the state appears to be the least disruptive for Oregon customers over time. The Commission will adopt the staff recommendation on this issue.

4. Implementation Schedule

Both staff and the NPA recommend that the new area code be implemented beginning November 5, 1995. The primary scheduling matter at issue is the length of time to allow for "permissive" dialing. During the "permissive" dialing period, calls destined for customers in the part of the state assigned the new area code could be dialed using either the new code or the old 503 code. Input from the public in this proceeding emphasized the need for as much time as possible to prepare for the change. The NPA proposal suggests ending the "permissive" dialing period on April 28, 1996, while staff recommends continuing the dialing period until the end of June 1996. This will ease the transition for customers and allow businesses additional time to inform customers of changes, revise stationery and publications, update advertising and make equipment modifications. Some existing business PBXs and other telecommunications computer systems are not able to recognize the new generation of area codes which do not contain "0" or "1" as the middle digit. Providing a longer permissive dialing period will allow more opportunity for customers and industry to address this transitional problem. The Commission will adopt the staff recommendation for a longer permissive dialing period.

ORDER

IT IS ORDERED that:

The NPA proposal for a new Oregon area code is approved, as modified by this order.

 

The new area code shall be implemented by means of a geographic split, dividing the state into two area codes. The boundary of the split shall be approximately the Cascade Mountains, the Pacific Ocean, the Columbia River and the northern boundary of the Eugene LATA. The specific exchanges to be included in the northwest area of the split are listed in Appendix B.

 

The 503 area code shall be assigned to the northwest area of the state, as described in ordering paragraph two. The new area code, 541, will be assigned to the south and east area of the state.

 

The new area code shall be implemented on November 5, 1995. A permissive dialing period shall be implemented for the period November 5, 1995, to 12:01 a.m., June 30, 1996, during which calls destined for the new area code can be dialed using either the new or the old area code.

 

Made, entered, and effective ______________________________________.