PUBLIC NOTICE
Federal Communications Commission
445 12th St., SW
Washington, DC 20554
News Media Information 202 / 418-0500
Internet: http://www.fcc.gov
TTY: 1-888-835-5322
DA 08-929
April 22, 2008
ANNUAL ADJUSTMENT OF REVENUE THRESHOLDS
This notice announces the inflation-adjusted 2007 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 
$138 million.3 The revenue threshold between larger Class A carriers and mid-sized carriers is 
increased to $8.181 billion.4 The revenue thresholds for 2007 were determined as follows:
Class A to Class B      Larger Class A to Midsize
Threshold Threshold
(1) GDP-CPI Base 86.685 102.406
(2) 2007 GDP-CPI7 119.67 119.67
(3) Inflation Factor (line 2 ÷ 1) 1.3801 1.1687
(4) Original Revenue Threshold $100 million $7 billion
(5) 2007 Revenue Threshold8 (line 3 * 4)   $138 million $8.181 billion
Action by Chief, Pricing Policy Division, Wireline Competition Bureau
  
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, April 2008, Table 1.1.4.
8 Rounded to the nearest million.