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CONTACT: Kyle DeVine              October 25, 1996   CPUC - 551
         213-897-4225                             (R.95-04-043)

             CPUC TURNS DOWN REQUEST TO CHANGE RULES
                SO THAT 818 AREA MAY HAVE OVERLAY

    The California Public Utilities Commission (CPUC) today
turned down a request from the cities of Burbank and Glendale to
permit area code overlays if local utilities will commit to
implementing permanent local number portability (LNP) sooner than
previously planned so that an overlay could be considered in the
818 area.
    The 818 area code serves the San Fernando - where Burbank and
Glendale are located - and San Gabriel Valleys and it is running
out of new telephone numbers.  There are 7.9 million phone
numbers in an area code.  The plan is to split the area in two
with most of the San Fernando Valley remaining in the 818 area
code while Burbank and Glendale along with the San Gabriel Valley
would have the new, 626 area code.  Use of the new area code
would begin in June 1997.
    Burbank and Glendale asked the Commission to change its
August decision which precluded approval of an overlay for the
818 area code based on the lack of availability of permanent LNP.
The cities believe that Pacific Bell and GTE California (GTEC),
the incumbent carriers providing local service in that area,
could implement permanent LNP sooner than previously assumed by
the Commission and in time for an overlay to be used rather than
splitting the area.
    The Commission turned down the request because it has not
been assured when permanent LNP will be in place for the 818 area
code.  Pacific Bell previously indicated to the Commission that
it can implement LNP in that area by December 1997, but that
doing so is a formidable challenge.  Others, including the CPUC
Office of Ratepayer Advocates which represents the interest of

                              more

all ratepayers, are doubtful the December date can be met,
considering that the program is still being developed and has not
been tested or analyzed yet.
    The Commission will hold off on considering overlays until
there is reasonable assurance that permanent LNP will be in
place.  Without assurance, if there were a delay in implementing
permanent LNP, an overlay might become operational before
permanent LNP, making the overlay anticompetitive.

    In addition to the request to change overlay implementation
rules, there are two requests before the CPUC about the area code
split. Burbank and Glendale have asked that the boundary for the
split be changed to include them with the San Fernando Valley.
The City of Monterey Park has asked that the San Gabriel Valley
keep the 818 area code and the new one, 626, serve San Fernando
Valley.  The Commission may decide these issues later this
year.

    Permanent LNP - permits customers to switch from one local
telecommunications provider to another without having to change
telephone numbers.  It plays an important role in making overlays
competitively neutral for the local phone companies and their
competitors, cellular, and paging companies; therefore, must be
in place before overlays can be considered.  In the Los Angeles
area, the target date is December 1997, but an additional nine
months for unexpected delays has been allowed.
    Overlays - are where a second area code is added to serve an
existing area so that one area is served by two area codes.

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