TELECOMMUNICATIONS

Pac Bell Loses Battle Over Area Code Policy: The California Public Utilities Commission rejected a plan backed by Pacific Bell to overlay new area codes on top of existing ones as it attempts to devise new ways to meet the increasing demand for telephone numbers caused by exploding numbers of fax machines, cellular phones and pagers. Instead, the commission voted to continue splitting overcrowded area codes, forcing a portion of the customers change their three-digit area codes. Commissioner Henry Duque said he did not want the commission to change its policy until Californians are surveyed about which method they prefer for adding area codes. Pacific Bell, the main unit of San Francisco-based Pacific Telesis Group, says California needs to double its 13 area codes over the next five years. Potential rivals in the state’s $6-billion local phone market, such as AT&T; Corp. and MCI Communications Corp., say overlays are anti-competitive.