NOTICES

PENNSYLVANIA PUBLIC UTILITY COMMISSION

Generic Investigation Regarding Virtual NXX Codes

[32 Pa.B. 5240]

Public Meeting held
August 8, 2002

Commissioners Present:  Glen R. Thomas, Chairperson; Robert K. Bloom, Vice Chairperson; Aaron Wilson, Jr.; Terrance J. Fitzpatrick; Kim Pizzingrilli

Generic Investigation Regarding Virtual NXX Codes;
Doc. No. I-00020093

Investigation Order

By the Commission:

   The proceeding of Level 3 Communications, LLC v. Marianna Scenery Hill Telephone Co. at Docket No. C-20028114 has raised the broader issue of Virtual NXX codes¹¹ and the impact that this numbering assignment practice may have on numbering conservation measures across this Commonwealth. Virtual NXX code arrangements are a relatively recent phenomena that have impacted many states across the country.

   Traditionally, customers are assigned telephone numbers based on their physical location. When a telephone company receives a group of telephone numbers (NXX codes) to operate, those numbers are associated to a particular switch residing in a rate center²² . Consequently, when the telephone company assigns a telephone number to its customer, it assigns the customer a telephone number associated with the particular switch serving the rate center where the customer is physically located. This assignment procedure ensures the integrity of the rating structure so that calls between customers located in different rate centers may be properly billed by the telephone company as local flat rate, local measured rate or toll.

   On the contrary, Virtual NXX codes allow a customer to obtain a telephone number in a local calling area in which the customer is not physically located. As far as the person calling the number is concerned, the call is a local call, but the party answering the call is actually located somewhere else within the local access and transport area (LATA)³³ , usually outside of the local calling area of the caller. This type of arrangement is referred to as ''virtual'' because the customer assigned to the telephone number has a virtual presence in the associated local calling area, not a physical one.

   Virtual NXX codes are primarily used by competitive local exchange carriers (CLECs) to give their customers a wider local calling area. Nevertheless, some telecommunications carriers, mostly incumbent local exchange carriers (ILECs), have asserted that use of Virtual NXX codes amounts to the improper use of finite numbering resources. We note that the Maine Public Utility Commission recently addressed the issue of Virtual NXX codes when it directed the North American Numbering Plan Administrator (NANPA)⁴⁴ to reclaim the codes that Brooks Fiber used to provide ''unauthorized interexchange service'' as opposed to ''facilities-based local exchange service.''⁵⁵ We also note that the Federal Communications Commission initiated a Notice of Proposed Rulemaking proceeding which requested comments on the use of Virtual NXX codes by telecommunications carriers. See In the Matter of Developing a Unified Intercarrier Compensation Regime, CC Docket 01-92, Notice of Proposed Rulemaking, 16 FCC Rcd 9610 (2001). In light of these developments, we will open an on-the-record proceeding to further investigate this relatively new numbering assignment practice.

   Also, as part of this Commission's on-going initiative to ensure the efficient use of numbering resources, we believe that it is appropriate to open an on-the-record proceeding to further investigate the Virtual NXX code numbering assignment practice. We direct the Office of Administrative Law Judge (OALJ) to conduct this investigation. We expect this investigation to culminate with an Investigative Report regarding the use of Virtual NXX codes and direct the OALJ to allow interested parties to provide written comments so as to fully address this matter. We direct all interested parties to file comments which address the following issues related to Virtual NXX codes:

   1.  How many carriers in this Commonwealth are actively utilizing Virtual NXX arrangements?

   2.  In what exchanges in Pennsylvania are Virtual NXX codes being utilized?

   3.  What are the benefits of these arrangements to customers and the telephone companies using them?

   4.  Are there any detriments to customers and telephone companies in using Virtual NXX code arrangements?

   5.  What is the impact, if any, that Virtual NXX code arrangements have on number conservation?

   6.  How many customers utilize this service to provide in-coming local calling from exchanges outside of the customers' local calling areas?

   7.  What is the impact that Virtual NXX code arrangements have on the deployment of local number portability in Pennsylvania?

   8.  What are the compensation arrangements among carriers for the use of Virtual NXX codes?

   9.  What are the billing and technical issues that are present when attempting to rate calls by their geographical starting and ending points?

   10.  Any other issues that are deemed necessary and relevant to the investigation.

   After the submission of the parties' substantive comments on the issues listed, the OALJ may conduct hearings as it may deem appropriate to further develop the record to ensure that the Commission receives a comprehensive report on Virtual NXX codes; Therefore,

It Is Ordered That:

   1.  The Commission hereby commences a generic investigation regarding the use of virtual NXX code arrangements in this Commonwealth.

   2.  The OALJ shall conduct the generic investigation.

   3.  A copy of this Order, which gives notice of this generic investigation, shall be published in the Pennsylvania Bulletin and interested parties shall file comments within 30 days of publication of this notice. Interested parties shall file substantive comments to the nine issues listed in the Commission's Order instituting this investigation, as well as any other additional issues the Commission or the parties consider relevant to this investigation.

   4.  The parties shall file their substantive comments at the I-00020093 Docket Number and their comments should be addressed to James J. McNulty, Secretary, Pennsylvania Public Utility Commission, P. O. Box 3265, Harrisburg, PA 17105-3265.

   5.  After the submission of the substantive comments, the OALJ shall institute the hearings as may be necessary to further develop the record to ensure that the investigation fully addresses all relevant and material issues regarding Virtual NXX codes.

   6.  The presiding Administrative Law Judge assigned to this investigation may subsequently limit, or otherwise restrict or eliminate, any additional issues submitted by interested parties if those issues are deemed not to be relevant to this investigation.

   7.  Upon conclusion of hearings, the presiding Administrative Law Judge shall issue an Investigative Report which shall be served on all parties and submitted to the Commission for its consideration at public meeting.

   8.  A copy of this Order shall be served on all jurisdictional telecommunications carriers and the Pennsylvania Telephone Association, Office of Consumer Advocate, OSBA and OTS.

JAMES J. MCNULTY,   
Secretary

October 8, 2002

To All Parties of Record:

   Pursuant to Procedural Rule 402(G), and Ordering paragraph number 3 of the Order, Commissioner Terrance J. Fitzpatrick would like to have the following additional questions addressed in the investigation proceeding:

   1.  Is the current use of virtual NXX codes contrary to, or authorized by existing statutes, or regulations?

   2.  If the current use of virtual NXX codes is not contrary to, or authorized by existing statutes or regulations, what policy should the Commission establish?

   3.  How does the current utilization of virtual NXX codes compare--legally and from a policy standpoint--to the utilization of foreign exchange service offered by the Incumbent Local Exchange Carriers?

Very truly yours,   
James J. McNulty
Secretary

[Pa.B. Doc. No. 02-1864. Filed for public inspection October 18, 2002, 9:00 a.m.]

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¹ A NXX code represents the second set of three digits following the area code in a ten-digit telephone, that is NPA-NXX-XXXX. A NXX code contains 10,000 individual telephone numbers. Traditionally, telecommunication carriers received full NXX codes (or 10,000 individual numbers) to provide telecommunications service. In those areas in which thousand-block number pooling has been implemented, carriers receive telephone numbers in blocks of a thousand (or 1K portions of the full NXX code).

² A rate center is a telephone-company designated geographic area which is assigned a vertical and horizontal coordinate within an area code for the determination of toll rates.

³ A LATA is the service area within which a local telephone company offers telecommunications services--local or long distance.

⁴ The NANPA is the entity responsible for allocating numbering resources to telecommunications carriers and monitoring the life span of area codes. The NANPA works under contract with the Federal Communications Commission.

⁵ Maine Public Utilities Commission, Investigation into Use of Central Office Codes (NXXs) by New England Fiber Communications LLC d/b/a Brooks Fiber Communications. Docket No. 98-758, Order entered June 30, 2000.

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