*Pages 1--2 from Microsoft Word - 19526.doc* Consumer Expenditures for Telephone Service • Telephone expenditures gathered by the Bureau of Labor Statistics include consumer expenditures on wireline telephone service, including local and long distance service, payphone service, calling cards, and wireless service. • According to BLS figures, monthly expenditures on telephone service by households with telephone service rose $2.33, from $70.75 in 1999 to $73.08 to 2000, an increase of 3.3%. Telephone service continues to comprise approximately 2% of household expenditures. • According to BLS figures, urban households, who spent $889 on telephone service during the year 2000, continue to spend more on telephone service than do rural households, who spent $790 on telephone service during the year 2000. • According to data for the year 2001 provided by TNS Telecoms, households spent $426 on local service, $176 on long distance service, and $351 on wireless service, for a total annual expenditure of $953 on telephone services. This report is available for reference in the FCC's Reference Information Center, Courtyard Level, 445 12th, S. W. Copies may be purchased by calling Qualex International, Portals II, 445 12th Street S. W., Room CY- B402, Washington, DC 20554, (202) 863- 2893, or via e- mail qualexint@ aol. com. The report can be downloaded from the FCC- State Link Internet site at www. fcc. gov/ wcb/ stats. -- FCC -- For further information, contact the Industry Analysis and Technology Division, Wireline Competition Bureau, at (202) 418- 0940, or for users of TTY equipment, call 202- 418- 0484. 2