The original area codes only existed in the US and Canada.
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Parts of Canada, Alaska, and Hawaii were not yet included. When the phone formats we commonly use today first came into service in the s and the s, blocks of phone numbers were allocated to a phone carrier in 10, phone numbers ie. Frequently, the 10, numbers would be enough for a small town with larger towns being allocated multiple prefixes.
Further, local phone carriers frequently had a monopoly on local phone service which prevented large portions of an allocated block from being unutilized. In the s, cell phones became much more popular which created an explosion of demand for new phone numbers. Cell phones also reduced the monopoly of local phone providers which reduced utilization of allocated prefixes.
Instead of a single primary phone carrier, cities had two or more carriers - each needing their own prefix. In addition, the rise in popularity in the internet dial up and DSL and voice over IP VOIP , local interenet service providers and cable companies started to request prefixes. Many of these prefixes included few, if any, subscribers.
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For decades, new area codes were created through a "split" of an existing area code into multiple regions. Normally, the more populated region would continue to use the existing area code. The less populated areas would have all existing phone numbers reassigned to use a new area code to free up more numbers in the original area code. This process forced many into a new phone number which would require updates to letterhead, business cards, phone directories, personal contact lists, etc.
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Many people would dial the incorrect area code which caused confusion. In , area code was created as the first "overlay" area code. With an overlay area code, the overlay serves the same geographic as the original to increase the pool of numbers available in the area. When the original phone systems were put in place, 7-digit dialing without the area code could be used to make local calls, and digit dialing with the area code only needed to be used for long distance calls.
In , area code was introduced as the first overlay with forced 10 digit dialing for local calls. Initially, there was substantial public resistance to overlays because of the digit dialing requirement for local calls. However, the last area code split in Canada was in with the split of splitting off and the last area code split in the US was in with splitting off No area code splits are currently proposed and both countries have agreed: without exceptional circumstances, all new area codes will be overlays.
Today, 7-digit dialing is broken in most major cities. Many areas not served by an overlay can still use 7-digit dialing. Something besides allocating more area codes needed to be done to improve the system. After a few trials, mandatory number pooling was implemented in with a national rollout to the largest metropolitan areas.
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With number pooling, an entire prefix of 10, numbers is allocated to a specific area, but phone numbers are only allocated to a specific carrier in 1, block increments. While several US markets are still not required to implement number pooling and Canada has no number pooling, the effects dramatically slowed the need to allocate new prefixes and new area codes because of increased utilization. The rate of issuing new area codes dropped to nearly half that of the s.
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