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Order CRTC 2000-772
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Ottawa, 15 August 2000
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New area code overlay to be introduced in 905 region
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Reference: 8698-C12-07/00
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The Commission approves the introduction of a new area code in the southern Ontario region currently served by area code 905. The new area code will be implemented in a "distributed overlay" over the exchanges that comprise the current 905 area code. All existing customers in the 905 area code will retain their current telephone number. Once implemented in June 2001, new numbers may be assigned from the new area code.
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Distributed overlay chosen for area code 905
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The Commission finds that the exhaust date for area code 905 is April 2001. By invoking code conservation measures, this date will be delayed until 9 June 2001, at which time a new area code will be introduced using the "distributed overlay" method. This method would apply a new area code in the same geographic area as the existing area code 905. No existing subscribers will be required to change the area code portion of their telephone number, but 10-digit dialing will be required on all local calls.
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The demand for telephone numbers has increased faster than was previously predicted. Many residential and business customers are ordering extra phone lines for Internet access, facsimile machines, wireless phones and pagers. All local exchange carriers (LECs) are currently assigned a block of 10,000 numbers just to offer service to a single customer in an exchange. Access to new technology and increased local competition are quickly depleting the pool of telephone numbers in Canada and around the world.
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Each area code has a finite supply of telephone numbers
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Each geographic area code contains 792 useable central office (CO) codes, also known as NXXs. CO codes are comprised of the three numbers that follow the area code, which are the first three digits of a seven-digit telephone number. Each CO code has 10,000 individual telephone numbers, for a total capacity of about 7.9 million telephone numbers in each area code. Certain CO codes can't be used because they would cause dialing conflicts or customer confusion, such as the same digits as the area code, toll-free area codes and 9-1-1. This reduces the quantity of telephone numbers available to end-users.
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When area codes exhaust, new area codes must be added to make more numbers available. Adding area codes causes costly disruption to both the public and the telecommunications industry. In these instances, there is generally a good deal of debate over which solution should be used to make more numbers available. Inconvenience to the end-user is frequently proportionate to the longevity of the remedy. Although area code relief provides a temporary solution, it does not address the ongoing need for additional telephone numbers and the finite ability of a single area code to meet the need.
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Area code 905 serves a large number of subscribers in southern Ontario
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Area code 905 serves the south central portion of Ontario, surrounding the Toronto area code 416. There are 94 exchanges within the Number Plan Area (NPA) 905 area code. Forecasts indicate that CO codes in NPA 905 will be depleted by April 2001. Area code 905 is considered to be in a "jeopardy condition" because relief cannot be provided before exhaust. Therefore, the Commission sets out appropriate code conservation measures in this order to ensure that numbering resources continue to be available until relief can be provided.
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In August 1999, Science Applications International Corporation (SAIC) -- in its role as the Canadian Numbering Administrator (CNA) - announced that area code 905 was projected to exhaust by the first quarter of 2004. In seeking a solution for this number exhaust, the CNA prepared and distributed an Initial Planning Document identifying alternatives available for introducing a new area code.
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A special Central Office Code Utilization Survey (COCUS) was conducted to collect exchange-by-exchange data from carriers providing service or intending to provide service in what is currently the 905 area code. The original survey concluded that all available CO codes were likely be assigned to carriers by the first quarter of 2004, and subsequent COCUS's advanced the exhaust period to the second quarter of 2001.
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CISC ad hoc committee considered five relief option
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In December 1999, the Commission released Telecom Public Notice CRTC 99-24, announcing the establishment of the NPA 905 Relief Planning Committee as an ad hoc committee of the CRTC Interconnection Steering Committee (CISC). Over several meetings, the CISC ad hoc committee identified and considered five area code relief options:
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- Municipality split
- Municipality and exchange split
- Rings around Toronto
- Municipality three-way split
- Distributed overlay
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Members of the NPA 905 Relief Planning Committee concluded that 905 area code exhaust would best be addressed by using a distributed overlay model. This recommendation was supported by CISC at its 21 January 2000 meeting. The other four options appear in the Appendix in this order.
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No consensus among stakeholders
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Consistent with its normal practice, the Commission issued Public Notice CRTC 2000-67, Comments solicited for solution to telephone number exhaust in Ontario, dated 18 May 2000. This public notice sought to identify the most appropriate relief solution for NPA 905 and included the relief options considered by the CISC ad hoc committee. Although the deadline for public comment was originally 8 June 2000, the Commission extended the deadlines twice in response to numerous requests from the public. The Commission considers public involvement to be very important in finding suitable solutions to area code exhaust problems. The Commission wishes to thank all parties for their comments and participation in this proceeding.
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Most consumers who responded were in favour of a "split" option or proposed options not considered by the CISC ad hoc committee. Several consumers supported the distributed overlay recommended by the CISC ad hoc committee to avoid potential changes to their telephone numbers. Frequent consumer concerns included changing their telephone number, business expenses caused by such a change, retaining a geographic association with the area code and general confusion arising from number changes.
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Municipal/regional governments as well as businesses and business associations that responded were almost evenly divided between the "Distributed overlay", "Rings around Toronto" and "Municipal three-way split" options. They expressed concerns with respect to customer disruption or confusion, additional expenses to business customers prompted by telephone number changes, the impact of this decision on future relief options, and 10-digit local dialing.
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The industry participants reaffirmed their support for the recommendation submitted by the CISC ad hoc committee.
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Among the options proposed in this proceeding that had not been studied by the committee, the Commission found considerable merit in the Richmond Hill and Whitby Chambers of Commerce suggestions. Each of these parties suggested a variation of an overlay solution in NPA 905. The Richmond Hill Chamber of Commerce recommended that a new NPA be overlaid in each region within the 905 area code. The Whitby Chamber of Commerce suggested that the 905 area be divided into six regions that would each be assigned a distinct overlay area code.
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Chambers of Commerce offer preferred option, but implementation time insufficient
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Based on the record of this proceeding, the Commission considered the most appropriate quantity of new area codes in a multiple overlay scenario would be three. As the "Municipality three-way split" option had already defined three separate regions, the Commission used these regions in its examination of the multiple concentrated overlays option. These regions were:
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Area 1: Exchanges in the Halton Regional Municipality, Peel Regional Municipality and Simcoe County.
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Area 2: Exchanges in Haldimand-Norfolk Regional Municipality, Hamilton-Wentworth Regional Municipality and the Niagara Regional Municipality.
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Area 3: Exchanges within York Regional Municipality, Durham Regional Municipality and Northumberland County.
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The Commission found considerable merit in a three-way concentrated overlay because, among other things, it addressed many of the concerns raised by parties. With this solution, existing 905 customers would retain their 905 telephone numbers. While they would be required to dial 10 digits for local calls, the Commission notes that the migration to a 10-digit local dial plan has already begun and is likely to be needed across North America in the not too distant future. The Commission considered that the benefits of introducing a consistent 10-digit dial plan across the 905 area code would be in the public interest, particularly as this dial plan is already required on local calls from the 905 area code to Toronto's 416 area code.
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An important element in determining the suitability of a relief solution is its technical implementation, including the matter of timing. These matters had not been addressed with respect to the "Three-way concentrated overlay". The Commission therefore sought additional comments, limited to technical matters including timing, from the CISC participants, as this group had previously examined the technical issues relating to the options considered by the CISC ad hoc committee. Although the CISC participants identified no insurmountable technical problems, Bell Canada stated, among other things, that it would be unable to implement the "Three-way concentrated overlay" option before 31 January 2002.
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Since the Commission has found in this proceeding that the exhaust date is April 2001, and given Bell Canada's statement that it would be unable to implement the "Three-way concentrated overlay" option until 31 January 2002, the Commission accepts that despite its considerable merit, it would not be in the public interest to choose this option at this time.
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Distributed overlay only viable solution within available time
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Based on the record of this proceeding, the Commission considers that, on balance, the distributed overlay option is the most appropriate relief option at this time.
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This solution will:
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- introduce a new area code in the same geographic coverage area as the existing NPA 905;
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- allow existing subscribers to retain their 905 area code; and
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- require the implementation of 10-digit local dialing on all local calls.
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The Commission notes that with this solution, additional area codes will likely be required in the same region by 2008, 2015 and 2020.
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The Commission directs the NPA 905 CISC ad hoc committee to file with the Commission a plan no later than 1 November 2000 to implement this solution.
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Permissive dialing period essential for orderly change
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As in Telecom Order CRTC 99-1141, the Commission considers that a clear and consistent public awareness program, that includes a standard automatic announcement period, is critical to the successful implementation of an area code relief plan, particularly in a jeopardy condition. Accordingly, the Commission directs Canadian carriers that operate in the 905 area code to ensure that a standard 10-digit dialing automatic announcement is implemented no later than 7 April 2001 until mandatory 10-digit dialing is implemented on 9 June 2001.
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To minimize customer confusion, the Commission directs the CISC ad hoc committee to establish a working group to develop a consumer awareness program to be filed with its 1 November 2000 implementation plan to the CRTC. In addition, all service providers are required to report any major relief plan concerns as they are identified, along with proposed solutions. Service providers will also be expected to address consumer concerns reported directly to the Commission.
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Code conservation procedures required until more numbers are available
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The life of an area code may be prolonged through the prudent use of code conservation measures. However, code conservation measures limit the ability of consumers and service providers to access telephone numbers when they are needed. As noted in Order 99-1141, code conservation measures are not a substitute for proper NPA relief planning. NPA 905 exhaust dates have shifted frequently based on the results of various COCUSs over the past few years. When 1999 COCUS results suggested exhaust wasn't likely to occur as quickly as indicated by previous COCUSs, industry members opted to defer area code relief planning.
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Since late 1999, area code exhaust dates are established by a neutral administrator, the CNA, based on confidential COCUS data submitted and validated by individual service providers. The Commission notes the poor quality and/or lack of COCUS submissions provided by certain service providers operating or intending to operate in NPA 905. In these circumstances, the Commission finds it necessary to implement stricter code conservation measures than those recommended by the CISC ad hoc committee to the CISC on 27 April 2000. The Commission wishes to point out that these measures are not intended to reflect on the performance of SAIC in its role as the neutral Canadian Numbering Administrator.
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NPA 905 is currently in a serious jeopardy situation requiring that the existing assignments of CO codes to carriers, and assignment criteria for remaining resources be very closely managed. The Commission has reviewed the code conservation procedures recommended by the CISC ad hoc committee and supports the suggested procedures, with the amendments identified below.
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Conservation directives:
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The Commission directs that all service providers implement the measures set out in this order below, effective immediately, unless otherwise stated:
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a) When applying for a CO code, service providers must certify that they have already implemented all code conservation measures set out in this order. The CNA shall not assign a CO code without such certification.
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b) All "held" telephone numbers are to be released for general assignment effective immediately. In a jeopardy condition, the immediate needs of consumers must take priority over potential requirements determined by a service provider. The Commission is of the view that the "held" number category must be eliminated once a jeopardy condition is announced and that service providers must include these numbers as "available" in their COCUS submissions.
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c) In all instances, reserved telephone numbers are to be reduced to no more than 10 percent of the quantity of numbers in service for the individual customer, in each switch from which it is served. Implementation of this requirement is to be completed within 90 calendar days of this order.
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d) New reservations are to be limited to no more than 10 percent of a customer's working numbers in the switch from which it is served.
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e) By 1 October 2000, telephone numbers which have been held in reserve for more than one year are to be reduced to 10 percent of the subscribers' working numbers.
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f) All CO codes that are not being used or intended to be used to directly serve customers are to be returned to the assignment pool by 1 September 2000. If such codes are not voluntarily returned, they will be reclaimed and returned to the assignment pool.
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g) All telephone numbers within CO codes that do not directly serve end customers (e.g., test numbers) are to be reduced to no more than 50 telephone numbers per CO code effective 1 October 2000. All service providers are to assess the need for numbers in the "administration" category, and adjust business practices to ensure these numbers are also fully utilized and any spare capacity will be made available for the provision of service to consumers.
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h) In all areas where a new telephone directory is published between now and June 2001, the aging period is to be reduced to three months following directory release. All service providers are required to advise the Commission of the dates for next directory release by 1 September 2000.
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i) Service providers applying for an initial NXX must demonstrate that the switch for which the code is being requested will be activated, and the code placed in service, within 90 days of applying for the CO code. The CNA shall not assign initial codes without proof that this requirement has been met.
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j) The CISC ad hoc committee had recommended that available CO codes be assigned proportionately based on quantities forecast in the April Jeopardy-COCUS (J-COCUS), which would mean the service provider with the highest forecast would have access to the largest number of available CO codes, regardless of its true needs. With this approach, all service providers are given significant incentive to inflate their forecasts to allow increased access to the resource pool. Code conservation measures are implemented as a serious means of maximizing the utilization of these public resources, while minimizing the impact to those who depend on these resources. The Commission believes that it is not in the public interest to support a process in which a service provider is rewarded for overstating its needs. Such a process would consume even more resources and advance the projected exhaust date. In all cases, access to these public resources must facilitate entry into the marketplace and be based on demonstrated need.
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The Commission directs that, when applying for a growth code, service providers certify that all code conservation measures set out in this order have been met, and demonstrate that the growth code is required within the next 90 calendar days. These applications, as well as proof of need, are to be submitted to both the CNA and the Commission. Commission staff will evaluate the applications, and forward all properly completed application forms to the CNA within three business days. The CNA's 10-day application processing period is to be adjusted by the number of days it takes staff to provide direction to ensure that the overall application process does not exceed the current 10 business day response cycle.
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Until relief is in place, the Commission directs that all CO codes be placed in service within 90 days of the assignment date. Codes that are not placed in service within this period are to be returned voluntarily or will be reclaimed for immediate reassignment by the CNA. Until relief is provided, and without an audit process, the Commission may request additional information from service providers to substantiate a request for additional numbering resources.
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k) The CISC ad hoc committee recommended that service providers be required to certify that existing CO codes for the switching entity/point of interconnection (POI), per service provided, are projected to exhaust within four months. When a jeopardy condition exists, the Commission believes that all numbering resources within a switch entity/POI must be made available and fully utilized before additional numbering resources are assigned to that switching entity/POI, regardless of the service for which a CO code was originally assigned.
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The Commission directs that until relief is provided, all CO codes within a switch/POI must be either projected to exhaust within four months or reach 85 percent telephone number (TN) utilization before an additional code will be assigned to that switch or POI.
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Where multiple switches are located in a single building (also called a switching centre), and serve customers in the same exchange, the sharing of all available telephone numbers is required in a jeopardy condition. With each application, service providers are required to identify the quantity of available numbers in all other switching entities/POIs located in the same building, and be prepared to justify why available numbers in one switching entity/POI cannot be used to meet the immediate demand within the same exchange. If required, the Commission may extend this sharing requirement to include all CO codes in all switching centres/POIs within the exchange using local number portability (LNP) capabilities or through other means.
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l) All service providers must identify and report "resell and dealer inventory" as a separate category from "assigned TNs" when completing the recommended TN utilization reports. All "resell and dealer inventories" are to be reduced to no more than two months of growth - based on historical trends - for the individual reseller or dealer by 1 December 2000. The Commission is of the view that two months of inventory for any dealer or reseller is reasonable, and these resources must not be excluded from contributing to code conservation measures.
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m) The CNA is required to immediately reclaim any CO code assigned before 7 March 2000 and not yet placed in service. These CO codes are to be made available for reassignment within 45 calendar days from the date of reclamation where network notification has occurred, and within 30 calendar days where network notification has not been provided. When such CO codes are reclaimed, the service provider is required to make all necessary network notification adjustments to remove the reclaimed codes from the Local Exchange Routing Guide within 45 calendar days.
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n) All "potential CLECs" that have not yet submitted a J-COCUS are to do so by 1 September 2000. The J-COCUS must provide a monthly forecast for each exchange in which they intend to offer service between the period August 2000 and August 2001. Should a proposed CLEC currently registered with the CRTC choose not to submit a forecast, it will be unable to obtain CO code assignments in NPA 905 until a J-COCUS has been submitted. Where a proposed CLEC has been assigned a CO code in preparation for service launch, the code must be placed in service within 90 days or returned to the CNA for reassignment.
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o) In order to improve the reliability of COCUS data, service providers are to:
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- provide a written explanation for any deviations between the various NPA 905 COCUSs submitted since January 2000, as well as deviations between each COCUS forecast and the quantity of CO codes that have been assigned to date; and
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- adjust and resubmit COCUS/J-COCUS to the CNA and the Commission, with detailed written explanations, as soon as the service provider becomes aware of a change which would cause a previous forecast to be understated or overstated. Further, the CNA is to advise the Commission of any instance where a service provider applies for a CO code that was not identified in the service provider's most recent COCUS.
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The CNA is directed to challenge any forecast that it perceives to be over-aggressive, and if not satisfied, to refer the matter to the Commission. All service providers must be prepared to justify their forecasts to both the CNA and to the Commission.
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p) All service providers are required to achieve a minimum telephone number utilization level of 85 percent before an additional CO code is to be assigned. In exceptional circumstances, where a service provider can demonstrate that such utilization levels would immediately affect service, the CO code application and supporting arguments should be submitted before the application time period established in this order.
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q) As in Order 99-1141 (regarding NPA 416), CO codes are to be set aside for new entrants to facilitate entry into the marketplace. Thirty such codes have been set aside by the CISC ad hoc committee for the exclusive use of new entrants in NPA 905 that were not on the list of proposed CLECs as of 11 January 2000 and were not solicited to submit a J-COCUS by the CNA. These 30 CO codes are not to be released to the general assignment pool until the Commission determines it is appropriate to do so.
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The Commission reiterates the necessity, even where a jeopardy condition exists, that geographic numbering resources be made available to new entrants.
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The Commission also considers it important that new entrants provide sufficient notice of their need for numbering resources by participating in the COCUS process well before an initial code is required. This order establishes certain processes for "potential CLECs" that are applicable to all new entrants. All new entrants must actively participate in the forecast process if they wish to have open access to telephone
numbering resources when they need them. When a new entrant fails to participate in this process, the results could include the sudden advancement of NPA exhaust and the need to invoke jeopardy code conservation measures. The Commission expects that the changes established in this order will help estimate the quantity of CO codes required to meet new entrant needs in the future and avoid sudden area code exhaust.
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r) All existing code holders submitting applications for CO codes within 66 days prior to the activation of the new NPA are to be assigned CO codes in the new NPA. The Commission may direct the CNA to assign an NPA 905 CO code based on a written request which includes justification. This assumes such codes are available and that an assignment in the new NPA would negatively impact the service needs of an end user(s).
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s) The CISC is to identify exchanges in NPA 905 which could be consolidated by 1 February 2001. It may assign this task to the existing ad hoc committee established to examine this issue, or to a special task force as it sees fit. The Commission expects to receive a consensus report by 1 November 2000. This measure was advocated by certain parties in this proceeding as a viable code conservation method and to delay area code exhaust in NPA 905.
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t) The CNA is to limit the contents of the J-COCUS reports provided to the CISC ad hoc committee to include total NPA 905 aggregate quantities, as opposed to aggregate forecasts by exchange. The Commission believes that information at the exchange level is only required in the initial examination of relief solutions. The ongoing publication of this information at the exchange level may reveal sensitive marketing information.
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The Commission directs that the code conservation measures recommended by the CISC as modified by this order are to remain in place until the new area code is introduced. All service providers must file, by 30 November 2000, a report confirming that the code conservation measures identified in this order have been fully implemented by the dates established this order. If a service provider is unable to confirm this, it shall provide a detailed explanation and indicate when it will be in a position to do so.
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Future proceeding to consider area code relief policies
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A number of concerns associated with the current area code exhaust planning process, including certain policy related issues, were identified in this and other similar proceedings. The Commission intends to initiate a separate proceeding to examine these issues on a national basis, the conclusions of which are intended to apply to future proceedings.
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Secretary General
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This document is available in alternative format upon request and may also be consulted at the following Interne site: http://www.crtc.gc.ca
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Appendix
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Other relief options considered by the CISC
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Municipality split:
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- would transfer municipalities south of the Regional Municipality of Peel to the new NPA, with the Regional Municipality of Peel and the remaining municipalities retaining NPA 905;
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- would require a change in telephone number (area code) for approximately 1.5 million subscribers;
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- implementation of 10-digit local dialing would be required on local calls between subscribers in the old and new area codes;
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- Special COCUS predicts NPA 905 would last until 2006 and the new NPA until 2010.
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Municipality and exchange split:
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- municipalities south of the Peel Regional municipality plus four exchanges south of Highway 401, namely Clarkson, Cooksville, Port Credit and Streetsville, would retain NPA 905;
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- balance of the exchanges in Peel and the other municipalities in the remainder of the existing coverage area would transfer to the new NPA;
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- would require a change in area code for approximately 1.5 million subscribers;
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- implementation of 10-digit local dialing would be required on local calls between subscribers in the old and new area codes;
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- Special COCUS predicts NPA 905 would last until 2007 and the new NPA until 2008.
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Rings around Toronto:
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- NPA 905 exchanges surrounding Toronto (inner ring) would be grouped in the new NPA, with the remainder of the exhanges (outer ring) retaining NPA 905;
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- Exchanges in the inner ring consist of Ajax-Pickering, Aurora, Bethesda, Brampton, Castlemore, Clarkson, Cooksville, Gormley, King City, Kleinburg, Malton, Maple, Markham, Newmarket, Nobleton, Oakridges, Oakville, Port Credit, Richmond Hill, South Pickering, Stouffville, Streetsville, Thornhill, Unionville and Woodbridge;
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- all other exchanges currently located in NPA 905 would retain NPA 905;
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- would require a change in area code for approximately 1.6 million subscribers;
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- implementation of 10-digit local dialing would be required on local calls between subscribers in the old and new area codes;
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- Special COCUS predicts NPA 905 would last until 2007 and the new NPA until 2008.
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Municipality three-way split:
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- splits the NPA 905 into three geographic areas with Halton Region, Peel Region and Simcoe County exchanges retaining NPA 905;
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- exchanges in Haldimand-Norfolk Region, Hamilton-Wentworth Region and the Niagara Region would be grouped in the first new NPA;
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- remainder of the exchanges within York Region, Durham Region and Northumberland County would be grouped in the second new NPA;
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- Special COCUS predicts NPA 905 would last until 2013, the first new NPA until 2017 and the second new NPA until 2012.
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