1. Number Optimization Working Group (NRO-WG) Report NANC Meeting Washington D.C. September 19, 2000

2. Meetings held since July NANC: August 10, 2000 - Chicago August 25, 2000 - conference call September 6, 2000 - Kansas City September 14, 2000 - conference call Future meetings scheduled: September 28, 2000 - conference call, 1 - 4 PM Eastern (conference bridge 954-797-0718, PIN 982913) October 11 - 13, 2000 - Seattle WA. October 26, 2000 - conference call November 9, 2000 - Washington, D.C.

3. Fees for Reservation Extensions Letter forwarded to NANC Chair on September 15th NRO-WG recommends: End users should be allowed to extend their reservations, subject to the payment of a common monthly fee The fee should be set at a level that compels end users to retain only those reservations they actually need Service providers should be allowed to retain that portion of the fee that covers their costs Revenues collected in excess of costs, should be remitted to the NBANC to be used to offset number optimization and administration costs. Service providers may choose to not offer extensions Service providers that do choose to offer extensions (subject to fees) should not be penalized for doing so.

4. Fees (continued) Questions raised on the fee amount: Should the fee be discounted for certain classes of customers (e.g., governmental agencies, not-for-profit organizations, etc.)? At what level does the fee become a disincentive to end users for holding reservations they dont actually need? At what level does the fee become cost-prohibitive, even for end users that desperately need to retain their reservations? At what level does the fee ensure that most carriers can cover their costs for reserving numbers? Should carriers remit revenues collected in excess of fees, if the amount is insignificant?

5. Fees (continued) Wide range of opinions on these questions from NRO-WG participants, which included representatives from ILECs, CLECs, Wireless carriers, state PUCs and consumer groups. Participants acknowledged the lack of empirical data and expertise to render a fully supportable decision on the fee amount. Participants also acknowledged that completion of a thorough economic study may not be possible by December 1. As an interim measure, the NRO-WG recommends that the FCC set a minimum rate of $0.25 per reserved number, per month. Service providers with higher costs should be allowed to set a higher interim fee. The interim fee will address the current situation whereby many service providers offer reservations at little or no charge.

6. Other NRO-WG Activities Work continues on a COCUS requirements document. Objective is to complete by October NANC meeting. Discussion has begun on ITN pooling. Objective is to complete a recommendation by November NANC meeting or sooner. Consensus reached to allow the INC LNPA workshop to develop a report/recommendation on UNP, since work is already underway within that committee and it is staffed by many of the same people. The NRO-WG co-chairs invite and encourage all NANC and NARUC members to actively participate in the NRO-WG meetings and conference calls.