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 PUBLIC  NOTICE  Federal  Communications  Commission  445  12th  St.,  S.  W.  Washington,  D.  C.  20554 
 May  4,  2004  DA  #  04-  1259 
 ANNUAL  ADJUSTMENT  OF  REVENUE  THRESHOLDS 
 This  notice  announces  the  inflation-  adjusted  2003  revenue  thresholds  used  for  classifying  carrier  categories  for  various  accounting  and  reporting  purposes:  (1)  distinguishing  Class  A 
 carriers  from  Class  B  carriers;  1  and  (2)  distinguishing  larger  Class  A  carriers  from  mid-  sized  carriers.  2  The  revenue  threshold  between  Class  A  carriers  and  Class  B  carriers  is  increased  to 
 $123  million.  3  The  revenue  threshold  between  larger  Class  A  carriers  and  mid-  sized  carriers  is  increased  to  $7.240  billion.  4  The  revenue  thresholds  for  2003  were  determined  as  follows: 


 Mid-  sized  Larger  Class  A  Threshold  Threshold 
 (1)  GDP-  CPI  Base  85.59  5  102.18  6  (2)  2003  GDP-  CPI  7  105.69  105.69 
 (3)  Inflation  Factor  (line  2  ÷  1)  1.2348  1.0343  (4)  Original  Revenue  Threshold  $100  million  $7  billion 
 (5)  2003  Revenue  Threshold  8  (line  3  *  4)  $123  million  $7.240  billion 


 1  See  47  C.  F.  R.  §§  32.11,  43.21,  43.43  and  64.903. 
 2  See  47  C.  F.  R.  §  32.9000. 
 3  Section  402(  c)  of  the  1996  Act  mandates  that  we  adjust  this  revenue  threshold  annually  to  reflect  the  effects  of 


 inflation  since  October  19,  1992,  at  which  time  the  threshold  was  $100  million.  In  accordance  with  the  Act,  we  adjust  the  threshold  based  on  the  ratio  of  the  gross  domestic  product  chain-  type  price  index  (GDP-  CPI)  in  the 


 revenue  year  and  the  GDP-  CPI  for  October  19,1992.  4  In  the  Phase  2  Report  and  Order  released  November  5,  2001,  the  Commission  concluded  that  it  would  begin 
 annually  indexing  for  inflation  the  $7  billion  threshold  used  to  separate  the  larger  Class  A  carriers  and  the  mid-  sized  carriers  using  the  GDP-  CPI  index  factor.  Because  this  Order  was  released  in  2001,  we  use  the  December  31,  2001, 
 GDP-  CPI  as  the  base.  See  2000  Biennial  Regulatory  Review  –  Comprehensive  Review  of  the  Accounting  Requirements  and  ARMIS  Reporting  Requirements  for  Incumbent  Local  Exchange  Carriers:  Phase  2;  Amendments 
 to  the  Uniform  System  of  Accounts  for  Interconnection;  Jurisdictional  Separations  Reform  and  Referral  to  the  Federal-  State  Joint  Board;  Local  Competition  and  Broadband  Reporting,  CC  Docket  No.  00-  199,  Report  and  Order 
 in  CC  Docket  Nos.  00-  199,  97-  212,  and  80-  286;  Further  Notice  of  Proposed  Rulemaking  in  CC  Docket  Nos.  00-  199,  99-  301,  and  80-  286,  16  FCC  Rcd  19913  (  2001)  (Phase  2  Report  and  Order). 
 5  GDP-  CPI  adjusted  to  October  19,  1992  (2000  =  100). 
 6  GDP-  CPI  for  December  31,  2001  (2000  =  100). 
 7  National  Income  and  Product  Accounts  Table,  Bureau  of  Economic  Analysis,  March  2004,  Table  1.1.4. 
 8  Rounded  to  the  nearest  million. 


 News  media  information  202  /  418-  0500  Fax-  On-  Demand  202  /  418-  2830 
 TTY  202  /  418-  2555  Internet:  http://  www.  fcc.  gov 
 ftp.  fcc.  gov 
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