NEWSReport No. DC 96-60 ACTION IN DOCKET CASE June 27, 1996 COMMISSION ADOPTS RULES ON TELEPHONE NUMBER PORTABILITY (CC DOCKET 95-116) The Commission today took an important step toward bringing competition to local telecommunications markets by adopting rules that will permit both residential and business consumers to retain their telephone numbers when switching from one local service provider to another. The rules adopted today governing number portability will remove a significant impediment to the development of vigorous competition in the local exchange markets. The rules adopted today implement provisions of the Telecommunications Act of 1996 more than one month prior to the statutory deadline. In fact, the action taken today represents the culmination of a rulemaking process that Commission began last July -- seven months before enactment of the new law. Adoption of these rules completes the first portion of the Commission's implementation of Section 251 of the new law -- the portion that governs local competition. The Commission must issue the balance of the rules under Section 251 by August 8. The provision of number portability is one of the obligations the 1996 Act imposes on all local exchange carriers (LECs) in order to promote a pro-competitive, deregulatory national telecommunications policy framework. Congress recognized that number portability will lower barriers to entry and promote competition in the local exchange marketplace by enabling customers to switch to a new local service provider without having to change their telephone numbers. Once number portability is implemented, consumers will be able to select a local telephone company based on service, quality, and price, rather than on a desire to keep a particular telephone number. In today's action, the Commission ordered all LECs to begin the phased deployment of a long-term service provider portability method in the 100 largest Metropolitan Statistical Areas (MSAs) no later than October 1, 1997, and to complete deployment in those MSAs by December 31, 1998. Number portability must be provided in these areas by all LECs to all requesting telecommunications carriers, including commercial mobile radio services (CMRS) providers. After December 31, 1998, each LEC must make number portability available within six months after receiving a specific request by another telecommunications carrier in areas outside the 100 largest areas MSAs in which the requesting carrier is operating or plans to operate. Rather than mandating a particular technology for the provision of long-term number portability, the Commission assumed a flexible, technology-neutral approach by establishing performance criteria that any long-term portability method selected by a LEC must meet. The Commission determined that it is unnecessary to mandate a particular technology because there is sufficient momentum in the industry toward the deployment of compatible methods nationwide. In addition, the Commission found that there was insufficient information on the record to select one of the proposed long-term methods, and that referring the issue to an industry body for a recommendation would likely delay implementation of number portability that is already under way in several states. The Commission also noted that dictating a particular method of number portability might stifle innovation by foreclosing the ability of carriers to improve on methods already being deployed or to implement compatible hybrid methods. Pursuant to the requirements of the 1996 Act, the performance criteria adopted by the Commission require that any long-term number portability method: (1) support existing network services, features and capabilities; (2) efficiently use numbering resources; (3) not require end users to change their telecommunications numbers; (4) not require telecommunications carriers to rely on databases, other network facilities, or services provided by other telecommunications carriers in order to route calls to the proper termination point; (5) not result in unreasonable degradation in service quality or network reliability when implemented; (6) not result in any degradation of service quality or network reliability when customers switch carriers; (7) not result in any carrier having a proprietary interest; (8) be able to accommodate location and service portability in the future; and (9) have no significant adverse impact outside the areas where portability is deployed. The Commission did not decide in this proceeding whether CMRS providers must provide number portability as LECs under the 1996 Act because this issue is being considered in the on-going proceeding on interconnection issues. Instead, the Commission will require cellular, broadband PCS, and certain "covered" Specialized Mobile Radio (SMR) providers to provide long-term service provider portability under the FCC's independent authority in the Communications Act of 1934. All cellular, broadband PCS, and covered SMR carriers must have the capability of delivering calls from their networks to ported numbers anywhere in the country by December 31, 1998, and to offer service provider portability, including the ability to support roaming throughout their networks, by June 30, 1999. The Commission concluded that until long-term service portability is available, all LECs must provide currently available number portability measures, such as Remote Call Forwarding and Direct Inward Dialing, as soon as reasonably possible after a specific request from another carrier. It determined, however, that CMRS providers need not provide such measures due to technical considerations specific to that industry. The Commission enunciated principles that, consistent with the new law, ensure that the costs of currently available measures are borne by all telecommunications carriers on a competitively neutral basis, and concluded that states may employ various cost recovery mechanisms, so long as they are consistent with these principles. The Commission declined at this time to require provision of either service or location portability. The Commission determined that the new law requires LECs to provide number portability for 500 and 900 numbers, but directed the Industry Numbering Committee (INC) to address the technical feasibility of LECs providing 500 and 900 portability. The INC is to report its findings to the Commission within twelve months of the effective date of the Order. Finally, the Commission adopted a Further Notice of Proposed Rulemaking regarding cost recovery for long-term number portability. Action by the Commission June 27, 1996, by Report and Order and Further Notice of Proposed Rulemaking (FCC 96-286). Chairman Hundt, Commissioners Quello, Ness, and Chong. - FCC - News Media contact: Mindy J. Ginsburg at (202) 418-1500. Common Carrier Bureau contact: Jason R. Karp at (202) 418-1517.