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CONTACT: Kyle DeVine             December 20, 1996   CPUC - 570
         213-897-4225                             (R.95-04-043)

     CPUC APPROVES AREA CODE SPLITS, RATHER THAN OVERLAYS,
                     FOR MOST OF THE STATE

    In response to input from consumers, the California Public
Utilities Commission (CPUC) today directed that the state will
continue to use geographic splits rather than overlays to
establish new area codes through the year 2000 with a possible
exception of the 310 area the next time it runs out of numbers.
    The Commission also determined that area code splits will
be the preferred method for telephone number relief in the 21st
Century for most areas.  The Commission will continue to
examine the use of overlays in the 21st Century for
geographically small, densely populated areas similar to the
310 area.
    An area code split is when an area is divided in two and
one part keeps the old code while the other is changed to the
new code.  An area code overlay is where the area is not split;
a new code is added to the area and assigned to new telephone
lines in the area.  When an overlay is used, all customers in
the area must dial 11 digits (1 + area code + 7 digit number)
on all calls even when they are placed within the same area
code.
    The decision to continue use of area code splits is based
on input from three separate consumer preference studies,
telecommunications companies' comments about area code
planning, and position papers that were submitted about the
relief plan for the 213 code in Los Angeles.
    All three consumer surveys showed preference for the use of
splits when compared to overlays.  The split was preferred
because it permits use of the same area code for all lines in a
residence or business, consumers do not have to dial 11 digits
on calls within their area code and the code can be identified
with a particular geographic region.
    An overlay's advantage is that cities or communities are
not divided as may happen in splits.  However, 35 percent of
the consumers who agreed that keeping a community in one code
may be an advantage, stated the issue made no difference to
them.  The greatest concerns about an overlay are having a mix
of codes within the same household or business, and requiring
11-digit dialing.
    The area code relief plan specifys conditions that must be
met in the future if overlays are used that will alleviate
anticompetitiveness and avoid inconviencing consumers.
    Overlays may be anticompetitive for telecommunications
carriers mainly because they are the new and unknown area
codes.  Businesses who want to be identified with an area may
be reluctant to have them and may not want to have service with
a telecommunications carrier if doing so would leave them with
the new code.  To mitigate this, all carriers that serve that
area will have at least one prefix in the older, familiar area
code, and permanent number portability (PNP), where consumers
can keep their numbers when they switch carriers, will be in
place.
    Overlays can inconvience consumers.  Since most numbers
that customers in an overlay area would dial are in the old
code, customers in the new code are inconvienced by having to
dial 11 digits on most calls they make.  To alleviate the
disparity, mandatory 11-digit dialing will be required on all
calls in areas overlaid.  To avoid inconviencing consumers
statewide, 11-digit dialing will not be required in areas where
overlays are not used.  To avoid mixing codes in homes and
businesses, overlays will be implemented before the old area
code runs out of numbers so that a company could assign numbers
in the old code to existing customrs.
    The decision also turns down the proposed overlay plan for
the 213 area code.  The split that the industry has agreed on
for 213 is a doughnut shape where central Los Angeles - which
includes Downtown, University of Southern California, Westlake,
Echo Park and Koreatown - would keep the 213 area code and the
area surrounding central Los Angeles would get a new code.
    The Commission deferred deciding whether to consider an
overlay for the 310 area code the next time it runs out of
numbers and a new code must be added to the area which might be
by the turn of the century.  The California Code Administrator,
who monitors number use and recommends new areas, has claimed
the new 310 area, which goes into effect early next year, may
be too small geographically and too densly populated for its
next split to be balanced.  Before deciding whether to split or
overlay the area, the Commission will take further comments
from parties and consider further customer preferences for area
code relief options.

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