A code breaker: FCC proposal would require upgrades for longer IXC codes

Small local exchange carriers are expected to feel the brunt of a proposed federal rule that would require them to upgrade their equipment to handle longer identification codes for long-distance companies.

The Federal Communications Commission wants LECs to complete their upgrades by the end of the year, although end users won't have to dial seven-digit access codes-five-digit codes exist now-until July 1, 1998. The longer codes identify the interstate interexchange carrier that the originating caller wishes to use to make an interstate call. The seven-digit number includes the carrier's carrier identification code.

Under the current setup, for example, a telephone user dials 10222 for a call to be handled by MCI. Under the new FCC plan, the user would dial 1010222. The change would result in a modest software upgrade for most of the larger LECs, said spokesmen for Ameritech and Bellcore. However, many of the smaller LECs will need expensive hardware upgrades along with software upgrades to comply.

The issue had been in limbo for a couple of years. The FCC started giving long-distance carriers four-number ID codes when the three-number codes started to run out in 1995 because of the rapid proliferation of long-distance carriers. It was only a few years ago that most people thought of AT&T, MCI and Sprint when long-distance was mentioned. While those are still the dominant carriers, hundreds of smaller start-ups have entered the arena, bringing the number of long-distance carriers to nearly 800.

At the time of the 1995 order, many of the local switches couldn't handle the change, so the FCC allowed companies with previously assigned carrier ID codes to continue using those numbers, along with the two-digit "10" identification at the beginning of the number. This was allowed under a permissive dialing agreement that was to be in effect until 2003.

However, a concern that the dialing system would be unable to handle demand until then led the FCC to propose shortening that time frame until the end of this year. Comments filed by Ameritech, MCI and other carriers, as well as by smaller local exchange carriers, convinced the FCC to reconsider its position and change the deadline. Under the revised plan, the permissive dialing period continues through the end of June, but the switches are to be upgraded by the end of the year.

Under the new dialing plan, those with three-digit carrier identification codes will keep those last three digits, with a zero added to the front. An additional 1 is also being added at the end of the "10."

Another change the FCC made in its most recent ruling is that consumers would get a recording if they mistakenly dialed the five-digit rather than the seven-digit code after the permissive dialing period. Under the previous order, the misdialing user would have received a busy signal.

MCI and other carriers argued that this was effectively handing $1 billion to Ameritech and other local phone companies in the 27 states in which intra-LATA calls automatically default to the local carrier unless the dialer uses the IXC code.

"Our concern was that if someone dialed the old code and received a busy signal, they would automatically figure the system wasn't working and would go back to using the local carrier," said Mike Polandick, director of product marketing for MCI.