Establishes investigation, hearing and determination procedures with respect to the creation of new area codes

Justification

Historically, when there was only one provider of local telephone service, that provider received new number allocations in blocks of 10,000 for each local exchange rate center. The three digit "NXX" in a telephone number, such as 518-NXX-1234, represents the exchange code; each NXX mathematically contains 10,000 numbers. Each NXX code can only be used in its designated rate center New NXX codes were added when existing codes neared exhaustion.

With the advent of competitive providers of telephone service, it became necessary to make numbering resources available to them. It became apparent that these resources would be exhausted swiftly if they continued to be given out in blocks of 10,000 to each new competitor The PSC (to which the Federal Communication Commission (FCC) delegated approval of new number allocations) and the FCC adopted number conservation policies encouraging or requiring holders of 10,000 telephone number NXX codes to "pool" unused numbers for use by competitors in blocks of 1,000 before giving out new thousand blocks. The block NXX-1000 would be given to one competitor, the block NXX-2000 would be given to another competitors, etc. Also, in granting certificates to new competitive providers, the PSC required them to be capable of utilizing numbers in blocks of 1,000.

These policies began in 2000 with major urban areas (nationally the largest 100 MSA's) and were intended to be expanded to other areas as competitive providers extended the geographic scope of their services and needed new numbers. As a result of these number conservation policies, and the advent of local number portability (LNP) which allows the transfer of a customer's telephone number from one provider to another without requiring use of any new numbers, the rate at which NXX codes are being exhausted, requiring new area codes, was substantially reduced.

Despite the policies favoring number conservation through thousands block pooling, the PSC continued to permit full NXX codes to be granted to competitive telephone companies in rural areas of the state. As a result, multiple NXX codes with 10,000 numbers each were allocated in the past few years to many locations with populations easily served with fewer codes. Had thousands block pooling been in force statewide, this would not have occurred.

The PSC in 2005, asked the FCC for permission to extend thousands block pooling to rural areas. In November 2006, the FCC clarified that the PSC has that authority. It was not until March 2007, that the PSC finally ordered thousands block pooling statewide, including rural areas where it had been permitting 10,000 block NXX codes to be issued on request to competitive providers.

From 2005, until thousands block pooling was finally implemented, the PSC allowed at least 78 new NXX codes, with 10,000 numbers each, to competitive carriers in rural areas of the 315 area code, some of them with populations bardyover 1,000. For example, full NXX codes were allocated to Adams Center (population 1,500), Branchport (population 4818), and Henderson (population 1,377), in March 2007.

In Case 07-C1486, the PSC proposed to create a new area code within the current region now served with a 315 area code because, although millions of telephone numbers within 315 remained unused, the NXX codes- many of them extra codes allocated in rural areas-- were nearing exhaustion. The PSC rejected a request for appointment of an administrative law judge to conduct proceedings on the record regarding the possible over-allocation of multiple NXX codes in sparsely populated areas, and the PSC did not conduct evidentiary proceedings to consider evidence regarding feasibility of reclaiming possible wasted numbering resources in such areas. The PSC instead resumed its plans to create a new area code within the current 315 area in a decision issued April 25, 2008.

The PSC has issued orders requiring the return of unused numbering resources and NXX codes so that they can be pooled and made available in areas where existing NXX codes are nearly full and new ones are really needed. See, e.g., Case 98-C-0689 (An October 30, 2002 Order requiring return of unused Telergy codes). Even if improvidently allocated, when NXX codes have only been partially used, the few assigned numbers could be changed, freeing up the NXX codes for reallocation to areas that are truly filling existing NXX blocks, and the massive impact of area code changes affecting far larger numbers of people could be avoided. This bill would require the PSC to balance the comparative inconvenience of changing relatively few numbers now within underutilized exchanges to reclaim and free those exchanges for reallocation with the cost and inconvenience of implementing a new area code adversely affecting over one million people.

This bill would not obstruct the PSC in creation of new area codes where that is necessary. It only requires on the record proceedings conducted by an administrative law judge (ALJ) to examine evidence supporting the need for a new area code and to determine whether previously allocated NXX codes and numbers can be reclaimed in order to avoid or reduce the cost and expense to consumers.

The added procedural protection would develop a record based on evidence and would not add significantly to costs or time because it only requires appointment of a stiff ALJ to develop a record and make a recommended decision regarding infrequent area code changes The cost of such added review and protection is far outweighed by the enormous cost and inconvenience to telephone customers if it can prevent or significantly delay implementation of a new area code.

This bill would apply to pending area code proceedings regarding the current 315 area code. The additional hearings and investigations required by this bill will not interfere with implementation of new area codes in 315 if ultimately they are required because the estimated time for exhaustion of number resources within 315 has been extended six months from the date previously estimated, allowing ample time for the investigation of number reclamation alternatives.

Legislative history

S.8506 Passed Senate/A.11082 Ways and Means Committee

Fiscal implications

None.

Effective date

Immediate.