*Pages 1--2 from Microsoft Word - 56605.doc* PUBLIC NOTICE Federal Communications Commission 445 12th St., S. W. Washington, D. C. 20554 April 24, 2006 DA 06- 922 ANNUAL ADJUSTMENT OF REVENUE THRESHOLDS This notice announces the inflation- adjusted 2005 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 $129 million. 3 The revenue threshold between larger Class A carriers and mid- sized carriers is increased to $7.668 billion. 4 The revenue thresholds for 2005 were determined as follows: Mid- sized Larger Class A Threshold Threshold (1) GDP- CPI Base 86.68 5 102.40 6 (2) 2005 GDP- CPI 7 112.18 112.18 (3) Inflation Factor (line 2 ÷ 1) 1.2914 1.0954 (4) Original Revenue Threshold $100 million $7 billion (5) 2005 Revenue Threshold 8 (line 3 * 4) $129 million $7.668 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 Telecommunications Act of 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. Pub. L. No. 104- 104, § 402( c), 110 Stat. 56, 130 (1996). In accordance with the statute, 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 2006, 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 1 2 Action by Chief, Pricing Policy Division, Wireline Competition Bureau 2