*Pages 1--28 from C:\Pdf2Text\Ready4Text_in\pdf\54065.pdf* 7 - 1 7. Rates and Price Indices This section contains information on telephone price indices and rate levels. 1 It describes and presents a series of price indices maintained by the Bureau of Labor Statistics (BLS). It also discusses rate levels and changes in average rate levels. Telephone Service Price Indices The BLS collects a variety of information on telephone service as part of three separate programs -- the Consumer Price Index (CPI), the Producer Price Index (PPI), and the Consumer Expenditure Survey. They can be found on the Internet at . The monthly price indices represent prices sampled in the middle of the month. A Consumer Price Index for telephone services was first published in 1935. 2 Since that time, telephone prices have tended to increase at a slower pace than most other prices. Table 7.1 shows long- run changes in the Consumer Price Indices for all items, all services, telephone services, each of the seven major categories that currently constitute the overall CPI, and several services that are often characterized as public utilities. The price of telephone service has increased less rapidly than the prices of most of these categories when viewed over a long period of time. Chart 7.1 shows the levels of the overall CPI and the CPI for telephone services over time. The CPI index of telephone services is based on a "market basket" intended to represent the telephone- related expenditures of a typical urban household. It includes both local and long distance services. The annual rate of change during recent years is shown in Table 7.2 for the overall CPI (which measures the impact of inflation on consumers), and the CPI for telephone services. In addition, Table 7.2 shows the Gross Domestic Product chain- type price index (which reflects inflation throughout the economy) prepared by the Bureau of Economic Analysis. Chart 7.2 shows the changes in the overall CPI and the CPI for telephone services over time. For 2004 the nation's overall level of prices (measured by the CPI for all items) rose by 3.3%. The CPI for telephone services fell by 2.5% during 2004. The CPI for telephone services is composed of three subindices. During 2004, the local service component (including subscriber line charges) rose by 1.1%, while the price index for interstate toll calls fell by 8.7%, and the price index for intrastate toll calls fell by 6.6%. The changes in these subindices over time are shown in Chart 7.3. 1 For more detailed information, see Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (2005). Much, but not all, of the material in this section is based on that report. 2 BLS publishes two sets of Consumer Price Indices. The CPI- U, used herein, is based on expenditures of all urban consumers. The CPI- W series is based on expenditures of urban wage earners and clerical workers. 1 7 - 2 The Bureau of Labor Statistics publishes a number of price indices related to local telephone service, two of which are important to the monitoring program. The CPI index of local telephone charges is based on a broadly defined "market basket" of local services that includes monthly service charges, message unit charges, leased equipment, installation, service enhancements (such as tone dialing and call waiting), taxes, subscriber line charges, and all other consumer expenditures associated with local telephone services except long distance charges. In contrast, the PPI index of monthly residential rates is much more narrowly defined. It is based only on monthly service charges for residential service, optional tone dialing service, and subscriber line charges. It excludes taxes and all other telephone service charges. The annual rates of change for these two indices are presented in Table 7.3. CPI data are available for intrastate toll and interstate toll services since December 1977. Table 7.3 also presents the annual changes in these series for recent years. Price indices are less reliable when industries are changing rapidly. For example, in 1992, long distance carriers began to increase basic long distance rates while at the same time greatly expanding their range of discount offerings aimed at medium and heavy users of long distance service. The fixed market basket of toll calls measured for the CPI did not fully reflect these discounts. In 1998, the CPI for telephone services was altered to include cellular telephone services, making the new index not directly comparable to prior years. In 1995, BLS made major changes to the PPI telephone series, and there are no data after July 1995 comparable with prior data. At that time the BLS introduced revenue- weighted telephone price indices. The new indices categorize the telephone industry into much finer detail, though the new series are not comparable to the old in many categories. Because of these sorts of difficulties, measures of average revenues are sometimes used as alternatives to price indices. Monthly data for the new CPI telephone indices are shown in Table 7.4. With the release of data for January 2004, the Producer Price Index program changed its basis for industry classification from the 1987 Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS). Developed in cooperation with Canada and Mexico, NAICS represents a profound change for statistical programs focusing on emerging economic activities. The system was developed using a production- oriented conceptual framework, grouping establishments into industries based on the activity in which they are primarily engaged. While many NAICS industries directly compare with SIC industries, a number of SIC industries were split or combined to form a new NAICS industry. The PPI treats the SIC- to- NAIC comparison as continuous if 80 percent or more of the weight of the SIC- based index comprises at least 80 percent of the weight of the NAICS- based index. All index series that have passed this test are published under the NAICS structure using the index base date and price index history established by the SIC- based index. Documentation of the NAICS to SIC concordance for all subsectors, industry groups, and products may be found at http:// www. bls. gov/ ppi/ ppinaics. htm. 3 The current 3 Several telecommunications PPIs published by the BLS under the SIC classification system are no long published after the conversion to NAICS. These include “Other Local Service” (SIC pcu4813# 114), “Other Local Service except Directory Assistance” (SIC pcu4813# 11409), “LEC Intrastate Private Line Service” (SIC pcu4813# 311), “Directory Advertising” (SIC pcu4813# 91), and “Other Telephone Services” (SIC pcu4813# 99). In addition, “Directory Assistance” (SIC pcu4813# 11401) is now classified as “Other Local 2 7 - 3 PPI indices are shown in Table 7.5. Information on Rate Levels Local rates are regulated by state regulatory agencies and vary greatly from area to area. Characterization of any rate as "typical" is therefore difficult. Table 7.6 presents average local residential rates in urban areas. The price indices published by the BLS indicate percentage changes in the price of the telephone services. The BLS does not publish the actual level of rates. The averages shown in Table 7.6 are based on an FCC survey using the same sampling areas and weights that were used by the BLS in constructing the 1986 Consumer Price Index. 4 In October 2004 the national average for the representative total residential service charge was $24.31 monthly. The average charge for connecting new phone service was $42.59. Table 7.7 presents average monthly local rates for single- line business customers in urban areas. Like the residential rates presented above, they are based on an FCC survey using the same sampling areas and weights used by the BLS in constructing the 1986 Consumer Price Index. In October 2004, the representative average monthly charge was $43.75, while the average charge for connecting phone service was $74.17. Table 7.8 contains average revenue per minute for interstate calls. These estimates show that billed revenue per minute has declined over time for both international and domestic services. Standard Deviation Analysis of Residential Rates In October 2003, the Federal Communications Commission adopted a recommendation by the Federal- State Joint Board on Universal Service establishing an annual adjusted nationwide urban rate benchmark for purposes of determining universal service support for non- rural carriers. This benchmark is used by the states and the Commission as a tool to assess the reasonable comparability of rates in rural and high- cost areas served by non- rural carriers to Service” (NAICS 517110114) and “Telephone Communications except Radiotelephone” is now referred to as “Wired Telecommunications Carriers”. 4 The form used in conducting the 2003 urban rate survey has been revised from previous years. Specifically, a more detailed breakout of carriers’ surcharges and taxes now appear as separate line items on the survey instrument. All carriers are now required to submit all line- item data in terms of dollar amounts (whereas before some line items were reported as percentages). In addition, local rates pertaining to multiline- business customers are no longer requested. These changes to the survey form allow for more accurate estimates of the total monthly recurring costs for basic local residential and single- line business service. Note that all estimates for 2002 and 2003 reflect usage of the revised survey form, while estimates for years 2001 and prior reflect those obtained from the previous survey instrument. 3 7 - 4 nationwide urban rates. 5 The urban rate benchmark adopted by the Commission is based upon the most recent average urban residential rate as shown in Table 7.9. Because of the great variation in urban rates nationwide, the Commission adopted a “standard deviation analysis” which measures the dispersion of urban rates from the average. As such, an urban rate benchmark level of two (weighted) standard deviations above the (weighted) average urban rate is used. Table 7.10 presents the results of such a standard deviation analysis for the residential rates reported in the Urban Rate Survey as of October 15, 2004. The average, plus the two standard deviation benchmark, is $34.21. Table 7.10 shows the historical trend in the standard deviation analysis for the years 1993- 2004. Over this period the average, plus the two standard deviation benchmark, rose by 20%. Subscriber Line and Access Charges Long distance companies rely on the loops, switches, and transport facilities of local telephone companies for access to their customers. As a result, local telephone companies recover a portion of their costs from long distance companies accessing their networks. Both the manner in which these access charges have been assessed and the proportion of the costs they have recovered have varied considerably over time. In the early 1980s, AT& T provided about three- quarters of the nation's local telephone service and almost all interstate long distance service. Because revenue sharing was largely an internal process for AT& T, it was able to charge prices above cost for long distance calls and share the revenues with local telephone companies. These transfers, while reducing the pressures on the local companies to raise monthly local rates, contributed to inefficiently high long distance rates. The high rates were responsible for suppressing demand for long distance calls and inducing large corporations to bypass the public switched network. Moreover, while such revenue sharing arrangements were sustainable in an industry where one firm monopolized both long distance and local service, they were not compatible with a competitive long distance industry. In mid- 1984, the FCC, in cooperation with a Federal- State Joint Board comprised of both federal and state regulators, introduced sweeping changes to the way that local companies charged for their services. The historic method of sharing revenues was replaced with a new system of access charges that provided a uniform method for local telephone companies to charge for the origination and termination of interstate traffic on their local networks. In particular, monthly subscriber line charges (SLCs) were introduced to recover a portion of the fixed costs of the local telephone companies’ loops directly from end users on a per- line basis. Since local telephone companies were required to reduce their charges to long distance carriers -- dollar for dollar -- the introduction of SLCs permitted reductions in implicit subsidies from long 5 See Federal- State Joint Board on Universal Service, CC. Docket No. 96- 45, Order on Remand, Further Notice of Proposed Rulemaking, and Memorandum Opinion and Order, 18 FCC Rcd 22559, 22607- 22610, paras. 80- 82 (2003), remanded, Qwest Communications Int’l, Inc. v. FCC, Nos. 03- 9617, 04- 9518, 04- 9519, 2005 WL 41969 (10 th Cir. Feb. 23, 2005). 4 7 - 5 distance service to local service. The rebalancing of prices between local service and interstate long distance calls during the 1980s had a fundamental impact on the telephone industry as the price of long distance service fell and the volume of long distance calling surged. In mid- 1997, as part of its implementation of the 1996 Telecommunications Act, the FCC introduced further interstate access charge reform. Presubscribed interexchange carrier charges (PICCs) were created in order to allow local carriers to recover the remaining portion of their fixed loop costs from long distance carriers on a per- line, instead of a per- minute, basis. A further access charge reform was adopted on May 31, 2000, which eliminated the PICC and consolidated it with the SLC. This took effect on July 1, 2000. 6 Average monthly SLCs and PICCs are shown in Table 7.11 and average per- minute rates charged to long distance carriers are shown in Table 7.12. Both tables report historical averages for all local exchange carriers (LECs) that file access tariffs subject to price- cap regulation and LECs in the National Exchange Carrier Association (NECA) pool. These LECs control over 98% of the industry's regulated access lines. Current per- line charges and per- minute charges are reported for each of the carriers in Tables 7.13 and 7.14, respectively. The averages in Table 7.12 clearly illustrate the effectiveness of access reform in reducing the prices long distance carriers pay per minute for access to the local telephone companies' networks. The reductions in per- minute access prices over time have been a major contributing factor to reductions in long distance prices. 6 Although the changes took effect on July 1, some companies made subsequent adjustments to their tariffs, which did not take effect until August 11. 5 1954 - 2004 1994 - 2004 CPI All Items 4.0 % 2.5 % CPI All Services 4.9 3.2 CPI Telephone Services ** 1.7 -0.1 CPI Major Categories: - Food & Beverages * 2.6 - Housing * 2.7 - Apparel 2.1 -1.0 - Transportation 3.7 2.0 - Medical Care 5.9 3.9 - Recreation * 1.6 - Other Goods & Services * 4.4 CPI Public Transportation 5.0 2.0 CPI Utility Natural Gas Service 5.2 5.2 CPI Electricity 3.3 1.2 CPI Sewer & Water Maintenance 5.6 3.5 CPI Postage 4.7 2.8 * ** Source: Bureau of Labor Statistics. Chart 7.1 The CPI telephone service index was revised in December of 1997. Table 7.1 Long- Term Changes for Various Price Indices (Annual Rates of Change) Series not established until after 1954. CPI All Items and CPI Telephone Services 1982 - 1984 = 100 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0 200.0 1924 1929 1934 1939 1944 1949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004 CPI All Items CPI Telephone Services 7 - 6 6 1978 7.3 % 9.0 % 0.9 % 1979 8.7 13.3 0.7 1980 9.7 12.5 4.6 1981 8.3 8.9 11.7 1982 5.2 3.8 7.2 1983 3.4 3.8 3.6 1984 3.6 3.9 9.2 1985 2.8 3.8 4.7 1986 2.3 1.1 2.7 1987 2.9 4.4 -1.3 1988 3.7 4.4 1.3 1989 3.5 4.6 -0.3 1990 4.1 6.1 -0.4 1991 3.1 3.1 3.5 1992 2.1 2.9 -0.3 1993 2.3 2.7 1.8 1994 2.2 2.7 0.7 1995 2.0 2.5 1.2 1996 1.9 3.3 2.1 1997 1.5 1.7 0.2 1998 1.1 1.6 0.3 * 1999 1.5 2.7 0.4 2000 2.3 3.4 -2.3 2001 2.5 1.6 1.3 2002 1.5 2.4 0.2 2003 1.7 1.9 -2.7 2004 2.4 3.3 -2.5 * The CPI telephone service index was revised in December of 1997. Sources: Bureau of Labor Statistics and Bureau of Economic Analysis. Chart 7.2 Table 7.2 Annual Changes in Major Price Indices GDP Chain- type Price Index CPI - All Items CPI - Telephone Services Note: All values calculated as the percent change from December of the previous year through December of the year shown, except the GDP price index, which is based on changes from 4th quarter to 4th quarter. CPI All Items and Telephone Services -20 -10 0 10 20 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Percent Change from Prior Year CPI - All Items CPI - Telephone Service 7 - 7 7 1978 1.4 % 3.1 % -0.7 % 0.0 % 1.3 % 0.1 % 1979 1.7 1.6 -0.8 -0.9 0.1 -0.7 1980 7.0 7.1 3.4 5.5 -0.6 2.3 1981 12.6 15.6 14.6 15.9 6.2 8.0 1982 10.8 9.0 2.7 3.9 4.2 1.7 1983 3.1 0.2 1.4 0.0 7.4 3.9 1984 17.2 10.4 -4.3 -5.1 3.6 3.8 1985 8.9 12.4 -3.7 -3.0 0.6 2.1 1986 7.1 8.9 -9.4 -10.0 0.3 -3.5 1987 3.3 2.6 -12.4 -11.8 -3.0 -3.0 1988 4.5 4.6 -4.2 -2.1 -4.2 -3.8 1989 0.6 1.9 -1.3 -1.7 -2.6 0.5 1990 1.0 1.5 -3.7 -0.1 -2.2 -2.2 1991 5.1 2.1 1.3 -1.3 -1.5 -2.6 1992 0.5 -0.2 -1.3 1.0 -2.4 1.3 1993 1.0 0.8 6.5 3.8 0.2 -1.1 1994 -0.3 0.7 5.4 6.1 -1.0 -1.4 1995 2.6 ** 0.1 ** -3.8 ** 1996 0.9 0.2 3.7 0.7 6.1 0.9 1997 1.0 0.2 -4.3 7.8 2.8 -4.3 1998 1.3 -0.1 -0.8 -0.4 1.5 -3.7 1999 2.8 0.2 -0.7 2.3 -1.6 -2.7 2000 5.5 1.6 -11.2 -4.3 -6.0 0.1 2001 4.5 2.2 2.0 -5.5 -1.7 0.7 2002 5.3 2.2 -5.9 -17.7 -6.1 0.8 2003 2.6 2.0 -10.9 -2.5 -9.4 -12.5 2004 1.1 0.6 -8.7 0.7 -6.6 -2.9 Chart 7.3 CPI PPI Source: Bureau of Labor Statistics. * CPI toll indices represent rates for households. Through 1994, PPI toll indices represent rate changes for both business and residential consumers. Since 1995, PPI indices reflect rates for residential customers. CPI PPI CPI PPI Note: All values calculated as the percent change from December of the previous year through December of the year shown. ** The PPI telephone indices were revised in June of 1995. The series are not comparable. Table 7.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services Local Residential Service Toll Service * Interstate Intrastate CPI Telephone Service Price Indices -20 -10 0 10 20 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Percent Change from Prior Year CPI Local Services CPI Interstate Toll CPI Intrastate Toll 7 - 8 8 All Goods and Services Telephone Services Land- line telephone services, local charges Land- line telephone services, long distance charges Land- line interstate toll calls Land- line intrastate toll calls Wireless Telephone Services CUUR0000SA0 CUUR0000SEED CUUR0000SEED01 CUUR0000SEED02 CUUR0000SS27051 CUUR0000SS27061 CUUR0000SEED03 1999 January 101.9 100.7 102.2 99.9 99.3 101.3 90.9 February 102.0 100.4 102.0 99.5 99.1 100.7 89.7 March 102.3 100.2 102.3 98.9 98.4 100.3 89.0 April 103.0 100.0 100.9 99.8 99.5 100.7 87.8 May 103.0 99.6 102.7 97.5 96.4 100.2 85.8 June 103.0 99.7 103.2 97.4 96.3 100.2 84.0 July 103.3 99.5 103.7 96.7 95.3 100.0 82.9 August 103.6 99.8 103.8 97.1 95.9 99.8 82.3 September 104.1 99.6 103.7 96.8 95.9 99.2 82.6 October 104.3 99.8 103.5 97.4 96.9 98.8 82.0 November 104.3 100.6 103.9 98.7 99.1 99.2 81.2 December 104.3 100.7 104.2 98.6 98.5 99.9 81.1 2000 January 104.6 100.9 104.8 98.5 98.3 100.1 80.6 February 105.3 99.4 104.9 95.5 94.0 99.2 79.7 March 106.1 98.9 105.1 94.4 93.1 98.5 79.2 April 106.2 98.6 105.2 93.7 92.4 97.8 78.9 May 106.3 98.5 105.3 93.4 92.0 97.6 78.2 June 106.9 97.2 105.8 90.6 89.0 95.0 76.8 July 107.1 98.2 107.3 91.3 89.8 95.7 74.9 August 107.1 98.9 109.5 90.7 89.2 95.1 73.7 September 107.7 97.0 108.5 87.9 86.2 92.0 72.8 October 107.9 98.3 109.8 89.4 87.9 92.9 73.0 November 107.9 97.5 110.3 87.2 85.0 91.9 72.9 December 107.9 98.4 110.0 89.5 87.5 93.9 71.1 2001 January 108.6 98.8 110.5 89.9 88.0 94.2 68.9 February 109.0 98.7 110.7 89.5 87.6 93.7 68.9 March 109.2 99.4 110.9 90.7 89.0 94.5 68.7 April 109.7 99.0 111.9 89.1 87.2 93.1 68.8 May 110.2 98.7 112.1 88.2 86.2 92.6 68.5 June 110.4 99.0 112.3 88.7 86.7 93.0 68.1 July 110.0 99.6 113.2 88.9 86.8 93.0 68.6 August 110.0 99.6 113.9 88.5 86.4 92.7 68.1 September 110.5 99.2 114.1 87.6 85.5 92.0 67.2 October 110.2 99.9 114.6 88.5 86.4 92.9 67.1 November 110.0 99.6 114.8 87.6 85.5 92.2 67.5 December 109.5 99.7 114.9 87.9 85.8 92.3 67.2 2002 January 109.8 100.3 115.7 88.2 86.2 92.6 67.5 February 110.2 100.3 116.1 87.9 85.8 92.6 67.5 March 110.8 99.1 114.1 87.0 85.0 91.5 67.5 April 111.5 98.2 114.0 85.1 82.7 90.1 67.6 May 111.5 99.3 116.8 85.2 82.6 90.4 66.7 June 111.5 99.2 116.9 85.0 82.4 90.1 66.6 July 111.7 99.5 118.7 84.0 81.3 89.1 67.0 August 112.0 100.6 120.2 84.7 82.6 89.1 67.8 September 112.2 100.1 120.4 83.7 81.4 88.2 67.5 October 112.4 99.9 120.6 83.0 80.7 87.5 67.9 November 112.4 99.8 120.8 82.7 80.7 87.0 67.5 December 112.2 99.9 121.0 82.6 80.7 86.7 67.4 2003 January 112.6 100.4 121.3 83.4 81.9 87.0 67.6 February 113.5 100.5 121.2 83.5 82.2 86.9 67.7 March 114.2 99.7 121.7 81.5 79.8 85.1 67.6 April 113.9 98.7 121.9 79.2 77.4 83.1 67.5 May 113.7 98.1 122.0 77.9 76.0 81.8 67.5 June 113.8 97.5 122.2 76.7 74.6 80.8 66.3 July 114.0 98.1 123.1 77.2 75.6 80.8 66.2 August 114.4 97.8 123.7 76.0 74.0 79.7 66.1 September 114.8 97.4 123.8 75.2 73.3 78.9 66.1 October 114.6 97.1 124.0 74.3 72.1 78.7 66.1 November 114.3 97.2 124.2 74.1 71.8 78.3 66.7 December 114.2 97.2 124.1 74.3 72.0 78.6 66.5 2004 January 114.8 97.0 124.4 73.9 71.6 78.0 66.3 February 115.4 97.1 124.2 73.9 71.6 77.8 66.6 March 116.1 96.7 124.2 73.1 70.6 77.2 66.5 April 116.5 96.5 123.9 72.8 70.1 77.2 66.4 May 117.2 95.9 124.2 71.3 68.8 75.5 66.5 June 117.6 95.8 124.2 71.2 68.4 75.4 66.4 July 117.4 95.6 124.7 70.1 67.6 74.2 66.5 August 117.5 95.0 124.7 68.7 66.0 72.9 66.5 September 117.7 95.3 124.9 69.6 67.0 73.9 66.3 October 118.4 94.6 125.2 68.3 65.7 72.6 65.5 November 118.4 94.9 125.1 69.3 66.4 74.0 65.5 December 118.0 94.8 125.5 68.6 65.7 73.4 65.6 2005 January 118.2 94.8 125.9 68.5 65.7 72.9 65.3 February 118.9 95.1 126.9 68.5 65.3 73.8 65.4 March 119.8 95.0 127.4 67.9 64.9 72.5 65.2 April 120.6 95.3 127.8 68.4 64.9 73.4 65.2 May 120.5 94.8 127.3 67.5 64.0 72.6 65.2 June 120.6 94.6 127.5 67.1 63.7 72.1 65.2 Note: Figures for All Goods and Services, Local Telephone Service, Interstate Toll Service, and Intrastate Toll Service after M ay, 2000 are converted from 1982- 1984 base index series reported by the Bureau of Labor Statistics. Historical data on these series based upon the 1982- 1984 index for January, 1972 through May, 2000 can be found in the Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (October 2002). Table 7.4 Consumer Price Indices (December 1997 = 100 ) BLS Series ID 7 - 9 9 Wired Telecommunication s Carrier Local Service, except Private Lines Residence Local Service Business Local Service Coin Local Service Other Local Service NAICS Series I D 1995 June 100.0 100.0 100.0 100.0 100.0 100.0 July 102.8 100.0 100.0 100.0 100.0 100.0 August 100.7 100.0 100.0 100.0 100.0 100.0 September 100.6 100.1 100.0 100.2 100.6 100.0 October 100.4 100.0 99.8 100.2 100.6 100.0 November 99.6 100.0 99.8 100.2 100.6 100.0 December 99.6 100.0 99.8 100.2 100.6 100.0 1996 January 99.3 100.0 99.8 100.1 100.6 100.0 February 99.6 100.0 99.8 100.2 100.6 100.0 March 99.5 100.1 99.8 100.2 101.9 100.0 April 99.7 100.1 99.8 100.2 101.9 100.0 May 99.5 100.1 99.8 100.2 101.9 100.0 June 99.9 100.2 100.0 100.2 101.9 100.0 July 100.3 100.3 100.0 100.4 102.0 100.0 August 100.6 100.4 100.0 100.5 102.0 100.0 September 100.5 100.4 100.0 100.5 102.0 100.0 October 100.4 100.4 100.0 100.5 102.0 100.0 November 100.1 100.4 100.0 100.5 102.0 100.0 December 99.5 100.4 100.0 100.5 102.0 100.0 1997 January 100.5 100.4 100.0 100.5 102.0 100.0 February 99.8 100.4 100.0 100.5 102.0 100.0 March 99.0 100.3 100.0 100.5 102.0 100.0 April 99.2 100.4 100.0 100.6 102.0 100.0 May 99.9 100.5 100.2 100.7 102.1 100.0 June 100.4 100.5 100.2 100.7 102.1 100.0 July 100.1 100.4 100.1 100.5 102.1 100.0 August 100.4 100.4 100.1 100.5 102.1 100.0 September 99.3 100.4 100.1 100.5 102.1 100.0 October 99.0 100.4 100.2 100.5 102.1 100.0 November 99.0 100.5 100.2 100.5 102.1 103.6 December 99.1 100.4 100.2 100.5 101.4 103.6 1998 January 99.2 100.5 100.2 100.6 101.7 103.6 February 99.0 100.5 100.2 100.6 101.7 103.6 March 98.7 100.5 100.2 100.6 101.7 103.6 April 98.6 100.5 100.2 100.6 101.7 103.6 May 98.7 100.4 100.0 100.5 101.7 103.6 June 98.2 100.3 100.0 100.4 101.7 103.6 July 99.0 100.3 100.1 100.3 101.7 103.6 August 98.7 100.3 100.1 100.3 101.7 103.6 September 98.5 100.3 100.1 100.4 101.7 103.6 October 97.9 100.3 100.1 100.3 101.7 103.6 November 97.3 100.3 100.1 100.3 101.7 103.6 December 97.4 100.3 100.1 100.4 101.7 103.6 1999 January 96.9 100.4 100.2 100.4 101.7 103.6 February 96.2 100.4 100.2 100.5 101.7 103.6 March 96.6 100.4 100.2 100.5 101.7 103.6 April 97.3 100.5 100.2 100.5 101.7 103.6 May 97.0 100.5 100.2 100.5 101.7 103.6 June 97.1 100.5 100.2 100.5 101.7 103.6 July 95.5 100.5 100.2 100.5 101.8 104.0 August 95.8 100.5 100.2 100.5 101.8 104.0 September 95.7 100.5 100.4 100.5 101.8 104.0 October 95.2 100.5 100.4 100.5 101.8 104.0 November 94.3 100.5 100.4 100.5 101.8 104.0 December 94.5 100.5 100.3 100.5 101.8 104.0 Table 7.5 Producer Price Indices (June 1995 = 100) 517110111 517110112 517110113517110114 517110 5171101 7- 10 10 Wired Telecommunication s Carrier Local Service, except Private Lines Residence Local Service Business Local Service Coin Local Service Other Local Service NAICS Series I D 2000 January 94.8 100.6 100.3 100.6 101.8 104.0 February 94.1 100.6 100.3 100.6 101.8 104.0 March 94.8 100.7 100.3 100.9 101.8 104.0 April 94.1 100.7 100.5 100.7 101.5 104.0 May 93.4 100.7 100.6 100.6 101.9 104.0 June 94.1 100.8 100.8 100.5 102.3 104.0 July 94.0 101.3 101.7 100.6 102.7 104.0 August 94.0 101.3 101.7 100.6 103.2 104.0 September 93.8 101.5 101.9 100.6 103.6 104.2 October 93.4 101.4 101.9 100.5 103.6 104.2 November 93.0 101.4 101.9 100.5 103.6 104.2 December 93.1 101.4 101.9 100.5 103.6 104.2 2001 January 92.2 101.4 101.9 100.5 103.6 104.5 February 92.0 101.5 101.9 100.5 103.6 104.5 March 92.0 101.5 101.9 100.5 103.6 104.5 April 91.9 101.9 102.5 100.7 103.5 104.5 May 91.8 101.9 102.6 100.7 103.4 104.5 June 91.4 102.0 102.9 100.7 103.6 104.5 July 91.5 102.7 104.4 100.7 103.7 104.8 August 91.8 102.8 104.4 100.7 103.9 104.8 September 92.0 102.9 104.5 100.7 104.1 104.8 October 90.1 102.9 104.5 100.8 104.3 104.8 November 90.1 102.9 104.5 100.8 104.3 104.8 December 89.2 102.9 104.5 100.8 104.3 104.8 2002 January 88.4 103.4 105.2 101.0 104.3 104.8 February 88.0 103.4 105.2 101.0 104.3 104.8 March 87.9 103.4 105.3 101.0 104.3 104.8 April 87.5 103.4 105.4 101.0 104.3 104.8 May 87.8 103.4 105.3 101.0 104.3 104.8 June 87.7 103.5 105.5 101.1 104.3 104.8 July 87.4 104.0 106.1 101.1 104.3 119.5 August 87.8 104.0 106.1 101.2 104.3 119.5 September 87.7 104.0 106.2 101.1 103.9 119.9 October 85.5 104.0 106.2 101.1 103.9 119.9 November 86.4 103.9 106.2 101.1 103.9 119.9 December 86.0 104.0 106.2 101.1 103.9 119.9 2003 January 85.7 103.9 106.2 101.1 103.9 119.9 February 85.8 103.9 106.2 101.1 103.9 119.9 March 85.8 104.0 106.2 101.1 103.9 119.9 April 85.5 104.5 106.8 101.5 103.9 119.9 May 85.9 104.8 107.4 101.6 103.9 119.9 June 85.9 105.0 107.9 101.6 103.9 119.9 July 86.0 105.2 108.2 101.6 103.9 120.3 August 86.1 105.2 108.2 101.6 103.9 120.3 September 85.7 105.2 108.2 101.6 103.9 120.3 October 85.2 105.2 108.3 101.6 103.9 120.3 November 84.7 105.2 108.3 101.6 103.9 120.3 December 84.1 105.2 108.3 101.6 103.9 120.3 2004 January 84.5 105.4 108.6 101.6 103.9 120.3 February 84.0 105.4 108.6 101.6 103.9 120.3 March 84.1 105.4 108.6 101.6 103.9 120.3 April 83.9 105.4 108.6 101.6 103.9 120.3 May 83.7 105.4 108.6 101.6 103.9 120.3 June 83.8 105.4 108.6 101.6 103.9 120.3 July 83.6 105.4 108.6 101.7 103.9 120.3 August 83.7 105.4 108.6 101.7 103.9 120.3 September 83.5 105.5 108.7 101.7 103.9 120.5 October 83.3 105.5 108.8 101.7 103.9 121.0 November 83.2 105.6 108.9 101.7 103.9 121.0 December 83.0 105.6 109.0 101.7 103.9 121.0 2005 January 83.3 106.0 109.6 101.9 103.9 121.0 February* 82.5 106.0 109.7 101.8 103.9 121.0 March* 82.9 106.0 109.7 101.8 103.9 121.0 April* 83.2 106.0 109.7 102.0 103.3 121.0 May* 83.2 106.1 109.7 102.0 103.3 121.0 * Subject to revision. Table 7.5 (June 1995 = 100) Producer Price Indices 517110 5171101 517110111 517110112 517110113517110114 7- 11 11 Public Switched Toll Service Residence Switched Toll Service Intrastate Residence Switched Toll Service Interstate Residence Switched Toll Service International Residence Switched Toll Service Business Switched Toll Service Business Switched Access Toll Service NAICS Series I D 1995 June 100.0 100.0 100.0 100.0 100.0 100.0 100.0 July 105.2 102.6 101.2 105.2 99.4 108.2 104.0 August 101.3 101.3 101.1 103.7 95.7 101.4 101.4 September 101.0 101.0 103.2 100.1 97.2 101.0 102.1 October 100.8 102.0 105.8 100.9 96.4 99.5 100.3 November 99.3 99.7 102.9 98.1 94.3 98.8 99.2 December 99.1 100.1 104.2 96.3 97.1 98.0 98.4 1996 January 98.8 99.6 101.6 99.3 95.0 97.8 98.7 February 99.3 100.3 104.7 98.2 95.0 98.0 99.0 March 99.0 101.3 106.3 98.8 92.9 96.3 96.5 April 99.3 100.6 104.2 98.6 93.3 97.8 98.4 May 98.8 100.8 106.0 97.9 93.8 96.5 96.7 June 99.5 101.2 106.0 98.2 94.2 97.5 97.2 July 100.2 102.8 106.4 102.3 92.8 97.1 97.4 August 100.9 103.3 110.4 99.2 90.5 98.0 99.4 September 100.6 102.1 107.8 98.1 89.3 98.9 100.3 October 100.4 101.2 104.0 101.3 85.9 99.4 102.5 November 99.9 100.1 105.7 99.1 79.8 99.7 101.3 December 98.8 99.2 105.1 97.0 77.8 98.2 99.2 1997 January 100.6 102.7 103.5 105.4 82.0 98.0 100.1 February 99.3 101.7 103.1 104.1 79.6 96.4 98.8 March 97.7 99.5 102.2 99.0 80.2 95.7 98.3 April 98.2 100.2 101.0 102.2 80.1 95.8 98.7 May 99.3 101.4 101.8 105.0 80.1 96.9 100.7 June 100.3 101.8 101.4 104.9 84.4 98.5 103.2 July 99.7 102.2 99.9 107.0 85.1 96.7 103.0 August 100.4 103.4 100.9 107.1 85.6 96.9 104.2 September 98.4 100.9 100.5 104.2 85.6 95.5 103.2 October 97.8 99.4 100.7 102.0 84.7 95.8 103.3 November 97.6 98.2 103.9 97.3 80.7 96.9 104.6 December 97.9 99.7 100.6 104.6 83.4 95.8 104.4 1998 January 98.0 100.5 99.0 107.2 82.7 95.0 102.9 February 97.7 100.2 96.7 110.0 76.8 94.6 103.0 March 97.2 100.8 94.0 115.1 78.1 93.0 100.5 April 97.0 99.1 97.8 107.3 78.0 94.4 103.0 May 97.2 99.9 99.2 107.3 79.6 94.0 102.7 June 96.4 98.9 99.3 105.3 77.6 93.5 102.2 July 97.9 100.9 99.0 108.7 76.3 94.3 103.4 August 97.2 99.6 97.8 109.1 76.7 94.3 102.3 September 96.8 98.7 97.2 108.3 74.2 94.6 105.8 October 95.7 98.9 97.5 107.8 76.4 92.0 102.6 November 94.6 96.3 96.9 102.4 73.2 92.5 102.3 December 94.8 96.2 96.9 104.2 68.3 93.1 103.4 1999 January 93.9 97.3 97.2 105.0 72.7 89.9 100.0 February 92.5 95.4 96.4 102.0 69.6 89.1 99.7 March 93.3 96.9 97.0 106.0 68.0 89.0 100.0 April 94.5 97.6 96.6 108.0 69.1 90.8 101.2 May 93.9 97.3 96.8 106.8 69.5 89.9 100.5 June 94.2 97.4 96.7 107.2 69.3 90.5 101.9 July 91.1 98.4 97.2 108.7 71.6 82.4 93.8 August 91.7 99.4 97.5 110.1 73.9 82.5 95.8 September 91.4 99.0 96.6 110.1 73.1 82.4 94.8 October 90.5 97.6 96.9 107.5 69.7 82.1 94.1 November 88.8 95.4 95.2 104.0 67.0 80.9 92.4 December 89.3 95.8 94.3 106.6 65.8 81.5 93.4 Table 7.5 Producer Price Indices - Continued (June 1995 = 100) 5171102 51711021 517110211 517110212 51711021351711022 517110221 7- 12 12 Public Switched Toll Service Residence Switched Toll Service Intrastate Residence Switched Toll Service Interstate Residence Switched Toll Service International Residence Switched Toll Service Business Switched Toll Service Business Switched Access Toll Service NAICS Series I D 2000 January 89.7 96.5 94.8 107.4 67.5 81.6 95.4 February 88.4 94.1 96.2 100.1 65.9 81.6 92.9 March 89.7 96.2 95.0 105.9 68.2 82.1 95.3 April 88.3 94.6 94.4 102.8 67.0 80.8 93.4 May 87.0 92.9 93.6 99.3 65.7 80.0 93.2 June 88.3 95.1 94.4 104.1 67.0 80.3 94.0 July 87.8 94.3 93.8 102.1 68.0 80.0 94.6 August 87.7 94.2 93.8 102.2 67.2 80.0 94.5 September 87.3 94.8 93.9 104.7 64.5 78.4 92.6 October 86.6 93.2 93.5 101.7 61.6 78.8 93.1 November 85.6 92.6 93.5 101.7 58.4 77.3 91.5 December 85.9 93.0 93.7 101.8 60.2 77.5 91.1 2001 January 84.2 92.2 93.3 107.4 60.9 74.7 87.6 February 83.8 92.1 94.1 99.5 61.8 73.9 87.9 March 83.9 92.4 94.7 98.2 61.3 73.8 87.5 April 83.4 92.1 94.3 98.6 61.3 73.0 87.2 May 83.1 92.2 94.3 98.2 60.4 72.2 85.8 June 82.4 91.4 95.2 98.9 57.4 71.6 84.7 July 81.9 91.3 95.6 96.9 57.9 70.7 84.3 August 82.5 92.8 95.8 96.0 54.8 70.2 83.2 September 82.7 91.7 95.9 101.2 52.9 72.0 84.3 October 79.2 88.4 94.9 92.2 49.7 68.2 80.5 November 79.1 89.0 95.5 94.7 45.6 67.4 77.6 December 77.4 88.2 96.0 92.4 44.5 64.6 74.6 2002 January 75.7 86.7 95.4 89.1 43.9 62.7 72.7 February 75.0 85.2 95.8 85.4 42.4 62.8 73.3 March 74.6 84.5 95.6 84.8 40.2 62.8 73.6 April 73.8 83.9 95.3 82.9 41.2 61.9 73.4 May 74.5 83.5 95.3 82.1 40.6 63.7 73.7 June 74.2 83.3 95.1 81.3 41.6 63.3 74.3 July 73.3 83.1 94.7 80.9 42.1 61.5 72.1 August 74.1 84.1 96.9 81.5 42.3 62.0 72.4 September 73.8 83.0 96.9 78.8 41.4 62.8 72.8 October 69.7 77.1 96.8 63.6 39.4 60.7 71.1 November 71.4 80.9 96.4 74.9 38.3 60.2 69.8 December 70.7 80.9 95.7 75.4 38.5 58.6 69.1 2003 January 70.0 79.9 95.6 73.0 38.2 58.3 68.5 February 70.4 79.7 87.4 81.2 37.2 59.2 68.9 March 70.2 79.8 87.4 81.6 37.0 58.7 67.9 April 69.4 78.2 86.9 78.2 35.6 58.9 68.7 May 69.8 79.5 87.1 82.2 34.4 58.3 67.1 June 69.7 78.9 87.1 80.7 33.8 58.7 68.3 July 69.8 79.4 86.9 81.3 36.3 58.4 67.0 August 69.9 79.5 86.7 82.2 35.4 58.5 67.2 September 69.3 78.1 85.9 79.8 33.9 58.7 67.7 October 68.3 77.6 85.4 79.5 32.5 57.4 66.5 November 67.4 76.1 84.7 76.5 31.8 57.0 64.9 December 66.3 74.6 83.7 73.5 31.3 56.3 64.6 2004 January 66.7 75.4 83.1 76.6 30.8 56.4 64.7 February 65.9 74.1 82.6 73.1 31.4 56.1 64.3 March 66.1 74.7 82.2 76.4 29.1 55.8 63.9 April 65.8 74.4 82.1 75.2 29.9 55.5 63.4 May 65.4 74.3 82.0 75.3 29.1 54.9 62.5 June 65.5 74.3 82.1 75.7 28.5 55.0 62.9 July 65.2 74.4 82.3 75.1 29.5 54.2 62.4 August 65.3 75.0 82.5 76.8 29.6 53.9 62.0 September 64.9 74.3 81.9 75.7 28.7 53.8 61.8 October 64.5 74.5 82.2 75.9 28.6 52.8 60.4 November 64.2 73.7 81.9 75.1 26.7 52.9 61.1 December 63.7 73.2 81.3 74.0 27.0 52.6 60.2 2005 January 64.0 73.7 81.5 74.8 28.0 52.5 59.9 February* 62.6 71.7 80.3 70.6 27.6 51.8 59.3 March* 63.3 73.6 81.0 74.9 28.3 51.1 59.0 April* 63.8 74.0 81.1 75.5 28.9 51.8 59.3 May* 63.8 74.6 81.2 77.7 28.1 51.0 58.0 Table 7.5 (June 1995 = 100) Producer Price Indices - Continued 51711021351711022 517110221 5171102 51711021 517110211 517110212 7- 13 13 Outbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Outbound Interstate Business Switched Access Toll Service, Outbound International Business Switched Access Toll Service, Outbound Inbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Inbound Interstate Business Switched Access Toll Service, Inbound International Business Switched Access Toll Service, Inbound NAICS Series I D 1995 June 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 July 103.8 100.6 102.7 116.4 104.4 100.6 107.5 94.6 August 101.3 100.7 102.7 99.2 101.6 100.7 101.8 103.9 September 103.1 101.0 103.3 109.4 100.3 98.9 101.1 92.4 October 99.4 100.8 98.9 97.0 101.9 98.3 104.1 99.3 November 99.4 100.8 98.5 97.9 98.9 99.5 99.5 95.5 December 99.2 100.3 98.5 98.9 97.1 101.0 93.5 107.1 1996 January 99.1 100.9 95.9 102.7 98.0 96.2 95.6 106.6 February 98.3 101.5 96.5 94.0 100.1 97.4 98.8 101.2 March 96.2 100.7 93.7 88.7 97.0 95.3 90.4 93.4 April 98.0 101.2 94.8 96.3 99.0 95.9 94.9 91.0 May 97.8 101.6 95.1 93.9 94.7 91.2 92.3 88.1 June 97.5 101.1 96.5 87.6 96.5 96.6 90.0 93.9 July 97.2 101.6 95.3 88.8 97.7 95.6 89.6 93.2 August 99.7 102.0 101.6 88.5 98.9 91.4 94.8 100.6 September 101.7 102.2 108.2 84.0 97.7 92.3 94.2 92.9 October 105.0 103.1 114.5 87.4 98.1 91.0 94.4 93.6 November 101.4 101.7 106.0 89.1 101.0 91.6 97.9 86.7 December 97.8 101.8 98.2 82.2 101.5 90.8 91.5 93.2 1997 January 97.6 102.6 96.1 86.6 104.4 87.1 95.6 101.5 February 97.5 102.4 98.8 81.1 101.0 90.5 95.5 91.8 March 97.9 101.0 98.2 89.1 98.9 90.3 93.0 82.8 April 98.7 100.8 100.5 88.7 98.8 90.7 92.2 90.2 May 100.7 101.3 106.5 85.8 100.8 87.8 99.0 86.9 June 103.7 100.4 113.6 90.7 102.4 86.9 100.5 91.7 July 105.9 100.4 121.0 86.0 98.1 82.2 94.0 84.4 August 107.0 100.8 124.0 85.2 99.4 81.7 97.4 79.4 September 107.9 101.9 125.9 83.1 95.2 79.7 88.9 72.5 October 107.6 102.1 124.0 86.7 95.9 80.8 87.4 74.3 November 108.3 101.7 125.9 88.3 98.2 79.5 92.0 79.8 December 108.8 103.0 126.3 87.2 96.6 75.6 90.9 73.9 1998 January 108.7 102.6 126.3 85.3 92.8 76.0 85.4 68.8 February 111.1 102.5 132.1 87.5 88.9 74.2 84.7 74.3 March 108.9 102.3 128.2 83.6 85.9 75.7 80.6 74.8 April 112.6 102.5 137.3 85.8 86.4 72.9 84.2 67.3 May 111.5 101.6 135.6 86.5 87.3 69.5 85.8 62.3 June 111.2 102.8 132.8 87.0 86.5 70.0 85.0 59.8 July 112.0 103.7 134.6 85.3 88.4 75.6 85.6 60.1 August 112.9 104.2 135.4 87.9 84.1 74.2 78.6 62.8 September 115.6 105.6 142.1 85.2 88.7 75.6 86.7 61.1 October 111.2 106.9 130.0 82.3 87.6 74.6 85.4 55.7 November 111.4 106.4 129.1 87.1 86.6 70.5 84.8 60.1 December 112.5 106.3 132.1 87.8 87.5 73.8 84.6 65.6 1999 January 108.1 104.7 122.2 88.1 86.0 75.3 79.6 69.9 February 106.4 104.5 118.4 86.2 88.0 78.0 83.4 65.2 March 107.5 104.9 120.3 88.0 87.0 74.7 82.9 65.4 April 107.9 104.3 122.2 88.1 89.4 76.5 86.8 70.9 May 107.9 104.1 120.6 92.3 87.8 74.4 83.7 75.7 June 110.5 104.7 123.8 100.2 86.9 73.6 82.4 74.5 July 100.0 102.5 104.6 84.2 83.0 70.7 74.5 79.3 August 103.2 102.9 112.9 83.5 83.0 70.0 75.3 74.4 September 101.8 102.5 110.4 82.1 82.5 69.8 74.8 69.0 October 100.0 102.3 109.6 72.6 83.7 70.5 76.1 79.9 November 98.8 101.9 108.1 69.3 81.3 68.3 72.3 74.7 December 99.3 101.9 107.0 75.4 83.1 69.7 75.0 81.2 Table 7.5 Producer Price Indices - Continued (June 1995 = 100) 517110221135171102212 5171102211 51711022123 51711022111 51711022112 51711022121 51711022122 7- 14 14 Outbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Outbound Interstate Business Switched Access Toll Service, Outbound International Business Switched Access Toll Service, Outbound Inbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Inbound Interstate Business Switched Access Toll Service, Inbound International Business Switched Access Toll Service, Inbound NAICS Series I D 2000 January 102.1 102.4 109.9 85.2 83.8 70.7 76.6 76.2 February 98.5 101.5 104.8 76.9 83.2 70.2 75.7 75.0 March 101.4 103.0 113.6 69.3 84.6 76.1 74.9 80.1 April 100.0 102.0 110.5 70.5 81.9 69.5 74.6 58.9 May 100.5 102.0 110.5 74.0 80.7 68.4 72.7 56.5 June 100.6 102.2 111.1 72.6 82.6 68.8 77.4 52.0 July 101.6 102.2 110.5 80.9 82.5 68.7 77.3 51.0 August 101.6 102.2 110.8 80.3 82.2 68.3 76.6 54.1 September 100.1 102.0 110.0 73.0 79.5 61.9 74.2 51.9 October 98.9 101.8 108.2 69.6 83.1 69.4 78.2 52.9 November 97.5 101.3 105.6 68.3 81.1 67.5 75.2 46.9 December 96.9 100.8 103.0 72.4 81.1 67.2 74.8 52.5 2001 January 92.1 99.4 95.6 62.8 79.7 65.8 72.5 51.1 February 91.2 99.0 95.5 58.0 82.2 68.5 77.3 46.8 March 91.0 99.5 92.7 62.2 81.5 67.6 75.7 51.4 April 91.0 98.4 96.1 57.1 80.6 66.3 74.5 50.7 May 89.3 97.7 93.2 55.1 79.7 66.4 72.3 49.6 June 87.0 98.0 86.7 55.3 80.6 66.7 74.3 49.3 July 87.1 98.4 86.3 55.3 79.4 67.5 71.0 49.3 August 86.2 98.3 85.6 51.9 77.8 64.9 69.1 47.4 September 88.2 97.6 91.1 53.3 77.6 63.5 68.9 51.9 October 81.5 95.4 77.6 48.9 78.6 66.8 70.1 45.9 November 80.2 96.7 70.8 53.5 73.2 62.0 60.2 45.4 December 74.6 93.4 60.7 51.3 74.5 56.5 66.9 40.4 2002 January 72.6 93.3 56.2 48.9 72.7 60.8 60.8 37.4 February 72.3 93.3 55.1 49.3 75.1 62.6 64.7 37.9 March 73.3 93.1 57.4 50.9 74.1 63.2 61.9 39.8 April 72.7 92.8 54.5 53.9 74.7 60.7 65.2 36.4 May 72.4 91.7 49.7 64.2 76.1 63.3 66.2 41.0 June 72.9 92.1 52.9 61.1 76.7 62.5 67.0 41.0 July 70.5 91.9 49.4 53.4 74.8 63.2 63.5 39.4 August 69.3 91.8 48.7 48.4 77.6 64.7 68.2 42.1 September 69.7 91.8 49.0 50.2 78.0 64.9 67.6 55.1 October 68.3 91.4 48.9 43.0 75.9 62.6 64.0 58.4 November 67.7 91.0 48.2 42.2 73.6 61.0 61.5 45.7 December 66.0 90.5 44.4 40.9 74.4 60.2 63.9 45.3 2003 January 65.3 90.2 42.5 41.6 73.9 62.9 60.3 52.2 February 64.4 89.9 41.1 39.8 76.7 63.2 65.9 54.3 March 64.4 90.0 40.6 40.4 74.0 63.3 60.2 52.6 April 64.4 89.4 41.4 40.4 76.0 63.4 64.2 55.4 May 62.3 89.1 37.6 36.8 75.5 63.5 62.6 57.5 June 63.0 89.2 37.8 39.8 77.4 64.6 66.4 54.8 July 61.8 88.9 34.5 40.4 75.9 64.5 61.9 65.5 August 62.0 88.8 34.3 41.9 76.1 64.6 62.9 60.3 September 61.3 88.8 34.4 38.1 78.6 67.2 65.8 68.8 October 61.1 88.7 35.5 35.1 75.8 64.3 62.7 59.8 November 60.0 88.5 32.9 34.4 73.3 62.4 59.8 47.7 December 59.5 88.3 31.9 33.7 73.4 60.0 61.7 46.1 2004 January 59.2 88.2 32.1 32.0 74.0 61.2 62.6 43.1 February 58.3 87.2 30.4 32.7 74.5 60.0 64.6 41.7 March 58.4 88.1 30.5 30.4 73.3 60.5 62.4 35.8 April 57.8 87.5 29.4 31.0 72.9 60.9 60.9 39.6 May 57.1 86.9 28.5 30.2 71.6 60.5 58.4 39.5 June 57.4 87.1 28.7 30.9 72.5 60.2 60.6 38.8 July 57.0 87.0 27.6 31.4 71.5 59.8 58.5 40.4 August 57.1 86.7 27.9 31.5 70.6 61.0 55.6 40.4 September 56.6 86.6 27.2 30.6 70.8 61.3 56.0 39.8 October 54.7 85.0 24.9 27.9 70.3 60.9 55.3 38.5 November 55.1 86.1 25.3 27.2 71.4 61.0 58.0 35.1 December 54.7 85.4 24.2 28.3 69.8 60.2 54.7 39.0 2005 January 54.1 85.1 23.6 26.9 70.0 59.6 55.8 36.3 February* 54.1 85.2 23.7 26.7 68.1 58.7 52.4 35.7 March* 53.9 85.1 23.6 25.8 67.7 59.4 50.9 36.7 April* 54.0 85.2 23.8 25.7 68.5 60.9 51.7 36.1 May* 53.0 84.7 22.2 24.4 66.7 60.9 48.0 34.7 Table 7.5 (June 1995 = 100) 5171102211 51711022111 51711022112 Producer Price Indices - Continued 517110221135171102212 51711022121 51711022122 51711022123 7- 15 15 Business Special Access Switched Toll Service, except Private Lines Outbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Outbound Interstate Business Special Access Switched Toll Service, Outbound International Business Special Access Switched Toll Service, Outbound Inbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Inbound NAICS Series I D 1995 June 100.0 100.0 100.0 100.0 100.0 100.0 100.0 July 115.4 119.9 119.0 98.9 152.8 107.3 101.6 August 101.3 100.3 105.6 98.9 100.4 103.3 107.4 September 99.1 97.7 98.9 95.3 99.7 101.7 104.9 October 98.0 98.3 107.4 92.9 105.7 97.5 93.8 November 98.0 98.5 105.8 94.9 105.1 97.0 93.3 December 97.3 97.8 100.0 95.3 103.8 96.4 94.2 1996 January 96.3 95.8 105.2 92.6 97.8 97.1 93.5 February 96.4 95.1 103.6 91.7 96.6 98.9 96.7 March 95.8 94.3 101.2 89.4 98.7 98.5 92.5 April 96.9 95.3 102.1 92.4 97.1 99.9 108.5 May 96.2 96.6 93.8 92.2 100.6 95.5 98.3 June 98.2 96.2 102.2 86.6 103.2 101.6 102.2 July 96.7 95.1 112.2 82.9 101.7 99.4 101.2 August 95.6 95.9 110.6 89.6 101.2 95.0 101.7 September 96.6 95.1 100.7 91.6 98.7 99.3 100.1 October 94.2 93.3 96.0 91.2 93.2 95.9 103.0 November 96.9 93.6 93.8 94.3 91.5 102.9 113.1 December 96.7 90.7 90.3 87.7 93.7 107.3 103.0 1997 January 94.6 90.5 85.5 86.9 97.4 102.0 106.0 February 92.3 89.6 87.9 88.8 94.4 97.3 109.9 March 91.2 88.5 86.3 85.2 95.3 96.2 106.7 April 91.0 89.0 88.3 87.8 93.1 94.6 101.3 May 90.5 86.7 87.0 85.6 88.8 97.3 102.5 June 90.5 87.3 82.0 83.7 89.3 96.1 99.9 July 86.1 83.3 83.4 77.7 90.5 91.1 98.5 August 84.4 81.0 83.5 74.0 89.0 90.6 96.0 September 82.4 76.9 82.8 68.5 83.2 92.3 86.6 October 83.2 77.9 81.2 72.4 81.7 92.7 88.4 November 83.8 77.8 85.5 72.0 82.1 94.6 80.3 December 81.3 76.8 86.0 69.3 79.3 89.5 79.1 1998 January 81.7 75.9 83.4 69.0 82.3 92.2 71.7 February 80.6 73.2 79.7 65.7 82.6 93.9 73.6 March 80.3 76.7 85.8 69.9 86.0 86.7 68.4 April 79.7 74.7 77.9 70.3 80.9 88.8 65.6 May 79.2 73.0 79.8 69.6 75.2 90.4 71.2 June 78.8 68.7 76.0 63.5 72.3 96.9 76.8 July 79.0 67.4 65.2 64.6 70.2 99.9 79.0 August 80.7 70.5 70.4 65.1 78.1 99.0 74.9 September 75.8 66.1 70.5 62.9 66.4 93.3 80.4 October 74.1 65.4 65.7 62.1 67.7 89.6 74.9 November 76.0 70.1 71.4 68.0 72.4 86.5 77.2 December 75.9 67.2 70.1 63.3 70.3 91.4 79.3 1999 January 72.9 65.4 67.0 61.4 68.5 86.3 77.3 February 71.2 63.5 63.0 58.3 68.0 84.9 84.6 March 70.5 62.3 63.5 58.5 63.8 85.2 80.3 April 73.3 64.7 69.5 63.6 61.5 88.6 79.8 May 72.0 63.1 66.0 63.5 57.7 88.0 79.9 June 71.2 60.0 61.9 60.0 54.2 91.2 83.8 July 63.0 58.3 61.5 56.6 53.6 71.6 64.0 August 60.1 51.5 54.5 53.1 38.7 75.7 67.4 September 61.4 54.2 58.7 55.0 43.4 74.4 65.5 October 61.9 57.6 60.8 57.3 50.6 69.5 59.5 November 61.4 53.9 54.0 51.2 50.1 74.8 65.6 December 61.5 56.0 56.3 53.7 52.5 71.2 61.6 Table 7.5 Producer Price Indices - Continued (June 1995 = 100) 51711022212 517110222 5171102221 51711022211 517110222135171102222 51711022221 7- 16 16 Business Special Access Switched Toll Service, except Private Lines Outbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Outbound Interstate Business Special Access Switched Toll Service, Outbound International Business Special Access Switched Toll Service, Outbound Inbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Inbound NAICS Series I D 2000 January 58.2 50.6 47.0 44.9 51.3 71.9 62.4 February 62.4 55.5 55.3 51.9 53.8 74.8 66.0 March 59.7 52.6 52.3 49.4 49.1 72.5 63.1 April 59.7 53.2 52.6 50.2 49.7 71.3 61.6 May 57.7 51.7 50.0 48.3 48.6 68.5 58.3 June 57.0 50.5 51.3 48.4 43.8 68.8 58.6 July 55.4 49.0 49.4 48.0 40.3 66.8 56.1 August 55.6 48.7 50.3 48.2 38.5 67.9 57.4 September 54.3 46.5 46.3 45.3 36.9 68.3 57.9 October 54.7 48.9 49.2 46.8 41.6 65.3 54.3 November 53.3 48.2 49.1 47.2 38.7 62.5 50.9 December 54.5 45.7 45.5 44.2 36.4 70.3 60.5 2001 January 53.0 43.8 40.7 39.4 39.0 69.5 59.5 February 50.2 42.8 43.1 39.7 34.4 63.5 52.1 March 50.7 41.9 41.1 39.5 32.2 66.5 55.4 April 48.9 41.3 47.0 34.8 35.4 62.4 52.9 May 49.3 41.4 49.5 35.5 33.8 63.4 58.5 June 49.6 40.7 44.4 34.9 34.4 65.5 56.8 July 47.9 41.1 41.5 38.7 30.8 60.1 49.9 August 48.4 39.5 37.5 34.6 33.0 64.4 57.7 September 51.2 43.5 49.1 37.2 38.5 65.1 58.5 October 47.4 40.7 49.7 33.6 34.1 59.6 53.3 November 50.2 41.9 29.5 32.6 47.3 65.0 60.8 December 47.7 40.2 47.8 30.0 38.8 61.3 53.4 2002 January 46.0 36.9 47.2 25.7 34.9 62.8 62.8 February 45.3 39.1 48.3 29.4 36.1 56.2 45.7 March 44.9 38.9 52.2 28.3 35.5 55.3 48.1 April 42.8 36.8 53.8 25.0 33.1 53.5 45.4 May 46.7 39.4 50.0 30.2 34.8 59.9 57.0 June 45.0 38.7 49.0 29.5 34.2 56.2 51.9 July 43.9 38.1 49.7 27.7 34.5 54.2 48.5 August 44.8 38.4 43.7 29.4 35.0 56.2 51.2 September 45.0 40.0 52.1 30.4 35.8 56.3 50.5 October 45.9 36.8 45.8 27.0 33.0 54.8 47.2 November 43.9 37.9 47.7 28.6 33.3 54.5 46.3 December 41.2 35.4 43.1 24.3 33.5 51.6 46.6 2003 January 41.5 34.9 47.3 25.1 29.0 53.2 54.0 February 42.8 36.1 42.5 27.3 31.0 54.8 46.7 March 43.1 37.4 46.8 29.7 29.9 53.2 51.5 April 42.6 36.3 47.1 25.3 33.3 53.9 47.8 May 43.4 37.5 41.8 28.1 35.1 53.7 50.8 June 42.6 35.9 44.2 26.2 31.7 54.7 46.9 July 43.7 39.4 51.1 31.0 32.9 51.0 51.0 August 43.9 38.8 49.6 30.0 33.2 52.5 44.3 September 43.5 38.6 50.5 29.0 34.1 51.7 52.3 October 41.9 36.7 46.2 28.4 29.8 51.0 48.1 November 43.5 38.7 49.3 30.5 32.2 51.6 50.2 December 42.3 36.9 46.9 28.5 30.2 51.6 48.8 2004 January 42.4 36.6 47.4 28.1 29.6 52.5 49.4 February 42.3 37.1 42.6 31.7 26.8 51.3 46.9 March 42.0 35.6 42.4 29.6 25.4 53.5 50.0 April 42.0 36.1 46.0 29.7 25.3 52.4 46.7 May 41.8 36.0 43.6 29.7 26.0 52.2 48.4 June 41.6 35.7 43.8 29.3 25.5 52.0 50.5 July 40.4 35.1 43.0 27.7 26.5 49.8 47.7 August 40.0 34.5 44.1 26.4 26.2 49.8 48.4 September 40.2 34.4 45.0 26.8 25.1 50.5 51.7 October 39.8 34.6 44.0 26.5 26.5 48.8 48.0 November 39.1 33.9 41.2 26.1 25.6 48.3 45.0 December 39.5 33.9 42.2 26.1 25.4 49.5 47.2 2005 January 39.7 34.0 41.1 26.1 26.2 49.9 48.3 February* 39.1 34.1 38.0 26.4 27.3 47.8 46.0 March* 37.9 32.5 42.7 23.7 24.4 47.6 46.6 April* 39.0 33.8 43.0 24.7 27.4 47.9 49.2 May* 38.9 34.5 46.5 25.0 27.8 46.5 50.2 Table 7.5 (June 1995 = 100) Producer Price Indices - Continued 517110222 5171102221 51711022211 51711022212 517110222135171102222 51711022221 7- 17 17 Interstate Business Special Access Switched Toll Service, Inbound International Business Special Access Switched Toll Service, Inbound Other Toll Service Private Line Service Intrastate Private Line Service Other Telephone Services NAICS Series I D 1995 June 100.0 100.0 100.0 100.0 100.0 100.0 July 109.0 99.6 100.0 100.0 100.0 100.0 August 102.2 98.5 100.0 100.0 100.0 100.0 September 99.9 97.6 100.0 100.0 100.0 100.0 October 99.7 97.3 100.0 100.0 100.0 100.0 November 98.7 97.2 100.0 100.0 100.0 100.2 December 97.1 97.1 100.0 100.0 100.0 100.2 1996 January 97.7 97.0 100.0 100.0 100.0 100.2 February 101.5 97.3 100.0 100.0 99.9 100.2 March 100.8 97.4 100.0 100.0 99.9 100.2 April 98.8 97.6 100.0 100.4 101.1 100.2 May 96.0 97.5 100.1 100.4 101.1 100.2 June 105.4 97.7 99.8 100.4 101.1 100.2 July 101.1 97.5 100.3 100.4 101.1 100.2 August 91.1 97.2 100.9 100.4 101.1 100.2 September 100.1 97.1 100.2 100.4 101.1 100.2 October 97.8 97.2 100.2 100.3 100.8 100.4 November 107.5 96.9 100.2 100.3 100.8 100.6 December 118.1 96.7 100.2 100.3 100.8 100.6 1997 January 106.4 96.7 100.2 100.3 100.8 100.5 February 96.0 96.5 100.2 100.3 100.8 100.6 March 96.5 96.6 100.2 100.3 100.8 100.5 April 97.4 96.8 100.2 100.3 100.8 100.5 May 101.1 97.2 100.2 100.3 100.9 100.5 June 99.4 97.3 100.2 100.3 100.9 100.5 July 90.0 96.9 100.2 100.3 100.9 100.5 August 91.4 97.1 100.2 100.3 100.9 100.5 September 97.2 97.0 100.2 100.3 100.8 100.5 October 97.2 96.9 100.6 100.3 100.8 100.7 November 99.1 96.7 100.6 100.3 100.8 100.7 December 89.7 96.7 100.7 100.3 100.8 100.7 1998 January 96.3 96.5 100.5 100.3 100.8 100.7 February 104.0 96.5 101.3 100.3 100.8 100.8 March 94.4 96.4 101.0 100.3 100.8 100.7 April 103.5 96.6 101.8 100.3 100.8 100.7 May 101.8 96.4 101.8 100.3 100.8 100.7 June 110.9 96.5 101.8 100.3 100.8 100.7 July 120.4 96.5 102.0 100.3 100.8 100.7 August 121.6 96.4 101.4 100.3 100.8 100.7 September 109.7 96.5 102.3 100.3 100.8 100.6 October 104.3 96.5 102.0 100.3 100.8 100.8 November 98.0 96.2 101.8 100.3 100.8 100.8 December 106.5 96.1 102.0 100.3 100.8 100.8 1999 January 97.6 96.0 101.5 100.2 100.6 100.8 February 93.0 96.1 101.5 100.3 100.8 100.8 March 94.7 96.0 101.5 100.3 100.8 100.8 April 101.2 96.2 101.4 100.3 100.8 100.8 May 100.0 96.2 102.0 100.3 100.8 100.8 June 104.9 96.9 100.1 100.3 100.8 100.8 July 74.2 97.1 101.6 100.3 100.8 100.2 August 80.7 96.5 100.0 100.3 100.8 100.2 September 79.0 96.2 101.9 100.3 100.8 100.8 October 71.6 92.1 100.0 100.3 100.8 100.8 November 79.6 85.0 98.8 100.3 100.8 100.9 December 74.3 84.5 99.1 100.4 101.2 100.4 Table 7.5 Producer Price Indices - Continued (June 1995 = 100) 51711022222 5171102222351711029 517110351711031 517110 9 7- 18 18 Interstate Business Special Access Switched Toll Service, Inbound International Business Special Access Switched Toll Service, Inbound Other Toll Service Private Line Service Intrastate Private Line Service Other Telephone Services NAICS Series I D 2000 January 75.2 90.6 99.1 100.4 101.2 100.7 February 79.5 90.0 99.6 100.4 101.2 100.9 March 76.1 90.8 100.2 100.4 101.2 100.5 April 74.3 88.5 100.6 100.4 101.2 100.6 May 70.2 89.1 100.3 100.4 101.2 100.0 June 70.6 89.1 100.8 100.4 101.2 100.0 July 67.6 85.2 100.6 100.4 101.2 100.7 August 69.2 93.0 100.3 100.4 101.2 100.6 September 69.8 95.5 100.4 100.4 101.2 101.3 October 65.2 93.0 99.3 100.4 101.1 100.0 November 61.2 78.2 99.8 100.4 101.2 101.3 December 72.9 88.8 95.6 100.4 101.2 101.0 2001 January 71.6 84.2 101.7 100.4 101.1 101.5 February 62.7 81.3 102.9 100.4 101.0 101.5 March 67.2 84.5 101.0 100.4 101.0 101.5 April 60.4 90.4 101.6 100.4 101.0 101.5 May 60.6 90.1 101.4 100.3 100.7 101.5 June 65.0 93.2 101.2 100.3 101.0 101.5 July 56.9 92.6 100.3 100.3 101.0 101.4 August 62.8 88.5 100.2 100.3 101.0 101.4 September 63.7 87.7 101.0 100.5 101.5 101.5 October 55.1 85.7 100.6 100.6 101.7 101.5 November 63.0 80.7 100.3 100.6 101.7 101.7 December 58.3 70.4 101.6 100.6 101.7 101.7 2002 January 58.4 78.6 102.4 100.6 101.7 101.7 February 50.6 76.0 100.5 100.6 101.9 101.7 March 48.4 77.2 99.2 100.6 101.9 101.7 April 45.6 75.6 99.2 100.7 102.2 101.7 May 54.5 74.4 99.9 100.8 102.3 101.6 June 48.9 74.6 100.1 100.9 102.5 101.6 July 46.1 74.2 99.5 100.9 102.7 101.6 August 49.1 75.6 99.6 100.9 102.7 101.6 September 49.6 75.2 99.5 100.9 102.7 101.6 October 47.6 73.5 95.9 101.3 103.7 101.9 November 47.3 74.5 96.4 101.3 103.7 101.8 December 41.6 74.0 93.9 101.3 103.7 102.0 2004 January 42.7 73.9 91.5 101.3 103.7 102.0 February 47.7 74.4 92.4 101.3 103.7 101.9 March 43.4 60.9 90.5 101.3 103.7 101.9 April 45.8 61.3 90.4 101.3 103.7 101.9 May 44.5 59.2 87.2 101.3 103.7 101.9 June 47.5 55.4 86.9 101.3 103.7 101.9 July 39.4 56.4 85.6 101.2 103.6 101.9 August 44.2 54.6 86.7 101.2 103.6 101.7 September 40.4 56.2 84.9 101.2 103.6 101.7 October 40.2 58.6 84.1 101.2 103.6 101.9 November 40.8 52.4 82.7 101.2 103.6 101.9 December 41.1 52.3 81.6 101.2 103.6 101.9 2004 January 42.7 55.6 82.9 101.2 103.6 101.9 February 41.1 54.3 80.7 101.2 103.6 101.9 March 44.4 62.6 78.7 101.2 103.6 101.8 April 43.3 48.5 77.4 101.2 103.6 101.8 May 42.4 46.9 76.9 101.2 103.6 101.8 June 41.4 49.2 75.2 101.2 103.6 101.8 July 38.2 46.6 74.6 101.2 103.6 101.8 August 38.0 45.1 73.3 101.2 103.6 101.8 September 38.2 44.4 74.0 101.3 103.8 101.8 October 36.1 44.1 71.9 101.3 103.9 102.0 November 36.0 37.1 71.2 101.4 104.1 102.0 December 37.7 38.1 71.7 101.5 104.3 102.6 2005 January 38.2 36.8 69.7 101.6 104.6 102.6 February* 34.8 23.5 70.4 101.6 104.6 102.6 March* 34.2 37.7 68.1 101.6 104.6 102.6 April* 34.1 35.4 68.1 101.7 105.0 102.6 May* 31.1 35.4 66.3 101.7 105.0 102.6 (June 1995 = 100) Table 7.5 51711022222 5171102222351711029 5171103 Producer Price Indices - Continued 51711031 517110 9 7- 19 19 Year 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004** Representative Monthly Charge *** $12.58 $12.44 $12.32 $12.30 $12.36 $13.03 $13.05 $13.16 $13.19 $13.62 $13.71 $13.67 $13.75 $13.77 $13.64 $14. 49 $14.38 $14.54 $14.53 Subscriber Line Charges 2.04 2.66 2.67 3.53 3.55 3.56 3.55 3.55 3.55 3.54 3.54 3.53 3.52 3.58 4.50 5.05 5.74 5.86 5.81 Additional Monthly Charge for Touch- Tone Service 1.57 1.52 1.54 1.52 1.33 1.06 0.97 0.94 0.77 0.44 0.30 0.25 0.10 0.09 0.06 0.04 **** **** **** Taxes, 911, and Other Charges 1.51 1.56 1.58 1.70 2.00 2.12 2.15 2.29 2.31 2.41 2.40 2.42 2.39 2.48 2.57 3.03 3.94 4.12 3.97 Total Monthly Charge 17.70 18.18 18.11 19.05 19.24 19.77 19.72 19.95 19.81 20.01 19.95 19.88 19.76 19.93 20.78 22.62 24.07 24.52 24.31 Basic Connection Charge 45.63 44.04 42.94 43.06 43.06 42.00 41.50 41.38 41.28 40.91 41.11 41.04 41.24 41.26 41.45 40.02 39.83 39.22 39.26 Additional Connection Charge for Touch- Tone Service 1.34 1.31 1.55 1.76 1.77 1.27 1.22 1.23 0.85 0.23 0.23 0.17 0.12 0.12 0.12 0.12 **** **** **** Taxes, 911, and Other Charges 2.28 2.20 2.11 2.44 2.32 2.30 2.29 2.30 2.33 2.44 2.36 2.46 2.38 2.57 2.53 2.81 1.33 3.32 3.32 Total Connection Charge 49.25 47.55 46.60 47.26 47.15 45.57 45.01 44.92 44.46 43.58 43.70 43.67 43.74 43.95 44.10 42.95 41.16 42.54 42.59 Additional Charge If Drop Line and Connection Block Needed n. a. n. a. 6.04 6.07 6.89 6.89 6.50 7.29 6.74 5.90 5.74 5.65 5.64 5.86 5.84 5.84 5.85 12.13 12.45 Lowest- Cost Inside Wiring Maintenance Plan 0.58 0.85 0.89 1.07 1.07 1.20 1.25 1.31 1.45 1.52 1.78 1.68 2.22 2.66 3.03 3.62 3.62 3.64 3.98 Note: Details may not add to totals due to rounding. n. a.: not available * Revised estimates. ** Subject to revision. *** Rate is based upon flat- rate service where available, and measured/ message service with 100 five- minute, same- zone business- day calls elsewhere. Beginning in 2001, all rates reflect flat- rate service. *** * Beginning in 2002, additional monthly charges for touch- tone service are included in the monthly recurring rate. Table 7.6 Average Residential Rates for Local Service in Urban Areas (As of October 15) 7 - 20 20 Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004** Monthly Representative Service Charge*** $31.06 $30.97 $32.29 $32.45 $32.70 $32.25 $32.48 $32.58 $32.76 $32.44 $32.41 $32.18 $31.88 $30.86 $30 .65 $32.42 Subscriber Line Charges 3.55 3.57 3.57 3.56 3.57 3.57 3.57 3.54 3.54 3.54 3.52 4.39 4.91 5.63 5.76 5.72 Extra for Touch- Tone**** 2.43 2.35 1.84 1.71 1.67 1.21 0.97 0.82 0.38 0.32 0.25 0.19 0.18 **** **** **** Taxes, 911 and Other Charges 4.21 4.32 4.42 4.57 4.63 4.61 4.79 4.87 4.99 4.97 5.03 5.04 5.45 5.47 5.55 5.62 Total Monthly Charge 41.25 41.21 42.12 42.29 42.57 41.64 41.80 41.81 41.67 41.27 41.21 41.80 42.43 41.95 41.96 43.75 Monthly Charge for Flat- Rate Service $33.04 $33.29 $34.12 $34.06 $34.85 $34.39 $34.45 $34.42 $34.68 $34.39 $33.73 $33.45 $32.02 $32.92 $33.17 $ 32.81 Subscriber Line Charges 3.65 3.69 3.70 3.70 3.70 3.70 3.69 3.61 3.61 3.56 3.50 4.35 4.77 5.77 6.03 5.84 Extra for Touch- Tone**** 2.12 2.11 1.87 1.84 1.76 1.12 1.00 0.89 0.53 0.49 0.47 0.43 0.39 **** **** **** Taxes, 911 and Other Charges 4.90 4.98 5.22 5.34 5.50 5.36 5.58 5.55 5.58 5.63 5.49 5.68 5.98 8.16 7.91 7.57 Total Monthly Charge for Flat- Rate Service 43.71 44.07 44.91 44.94 45.81 44.57 44.71 44.47 44.39 44.07 43.20 43.90 43.15 46.85 47.12 46.21 Number of Sample Cities with Flat- Rate Service 59 56 54 54 54 53 53 53 53 54 54 54 54 52 52 53 Monthly Charge for Measured/ Message Service $16.18 $16.17 $16.76 $16.55 $16.60 $16.74 $17.06 $17.26 $17.28 $17.16 $17.06 $16.92 $17.16 $17.56 $17.21 $17.59 200 Five- Minute Business- Day Same- Zone Calls 16.11 16.19 16.70 17.23 17.57 17.38 17.15 17.10 17.18 17.15 17.24 17.63 17.56 16.78 17.17 19.36 Subscriber Line Charges 3.54 3.55 3.55 3.54 3.55 3.55 3.54 3.51 3.51 3.53 3.52 4.39 4.90 5.56 5.65 5.66 Extra for Touch- Tone**** 2.48 2.39 1.87 1.73 1.68 1.22 0.98 0.83 0.39 0.33 0.25 0.20 0.19 **** **** **** Taxes, 911 and Other Charges 4.41 4.53 4.56 4.77 4.86 4.83 5.01 5.13 5.22 5.19 5.28 5.32 5.76 4.71 4.78 4.90 Total Monthly Charge for Measured/ Message Service 42.72 42.83 43.44 43.82 44.26 43.72 43.75 43.84 43.57 43.35 43.35 44.45 45.57 44.61 44.82 47. 51 Number of Sample Cities with Measured/ Message Service 83 83 84 84 84 87 87 86 85 85 85 85 85 86 85 85 Cost of a Five- Minute Business- Day Same- Zone Call $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.10 $0.09 $0.09 $0.09 $0. 10 Basic Connection Charge $71.05 $71.36 $72.75 $72.55 $71.41 $69.88 $67.87 $68.47 $68.67 $65.83 $67.87 $67.77 $67.04 $67.29 $67.23 $67.24 Additional Connection Charge for Touch- Tone Service**** 1.70 1.89 1.13 1.19 1.17 0.92 0.27 0.17 0.17 0.12 0.12 0.12 0.12 **** **** **** Taxes 4.06 4.15 4.32 4.33 4.25 4.13 4.17 4.20 4.45 4.13 4.53 4.40 4.69 5.09 6.95 6.93 Total Connection Charge 76.81 77.40 78.20 78.07 76.83 74.93 72.31 72.85 73.29 70.09 72.55 72.29 71.86 72.39 74.18 74.17 Additional Charge If Drop Line and Connection Block Needed $5.92 $7.87 $6.90 $6.83 $6.64 $6.49 $7.28 $6.98 $6.54 $6.54 $6.65 $6.62 $6.62 $6.5 2 $13.43 $13.76 Lowest- Cost Inside Wiring Maintenance Plan $1.78 $1.91 $2.05 $2.03 $2.08 $2.26 $2.39 $2.63 $2.84 $3.04 $3.53 $3.92 $4.86 $4.73 $4.65 $5.25 Note: Details may not add to totals due to rounding. * Revised figures. ** Subject to revision. *** Rate is based upon flat- rate service where available, and measured/ message service with 200 five- minute same- zone business- day calls elsewhere. **** Starting in 2002, additional monthly charges for touch- tone service are included in the monthly charge. Table 7.7 Average Local Rates for Businesses with a Single Line in Urban Areas (As of October 15) 7 - 21 21 Table 7.8 Average Revenue per Minut e AT& T All Carriers All Interstate All Interstate and International and International International All Interstate Switched Services Switched Services Switched Services Switched Services 1984 $0.32 NA NA NA 1985 0.31 NA NA NA 1986 0.28 NA NA NA 1987 0.25 NA NA NA 1988 0.23 NA NA NA 1989 0.22 NA NA NA 1990 0.20 NA NA NA 1991 0.20 NA NA NA 1992 0.19 $0.19 $1.01 $0.15 1993 0.19 0.19 1.02 0.15 1994 0.18 0.18 0.93 0.14 1995 NA 0.17 0.91 0.12 1996 NA 0.16 0.76 0.12 1997 NA 0.15 0.69 0.11 1998 NA 0.14 0.58 0.11 1999 NA 0.14 0.54 0.11 2000 NA 0.12 0.52 0.09 2001 NA 0.10 0.35 0.08 2002 NA 0.09 0.28 0.07 2003 NA 0.08 0.20 0.07 NA - Not available. Note: Data for some prior years have been revised. Sources: AT& T information provided by AT& T. Other estimates from Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2005). 7 - 22 22 a. Maximum Charge 34.47 $ b. Minimum Charge 16.05 $ c. Representative Monthly Charge (Weighted Average) 24.31 $ d. Weighted Standard Deviation (Std Dev) 4.95 $ e. Average + 2*( Std Dev) ( = c + 2d) 34.21 $ f. Percent to Average ( = [e/ c ] * 100) 141% Table 7.9 Standard Deviation Analysis of Residential Rates in the Sample Citie s (As of October 15, 2004) 7 - 23 23 1993 199 4 1995 1996 1997 1998 1999 2000 2001 2002 2003 *2004* * Maximum Rate $32.68 $31.63 $30.62 $28.65 $28.78 $28.27 $28.75 $29.72 $34.75 $34.95 $35.56 $34.47 Minimum Rate $12.18 $12.18 $13.04 $13.04 $13.05 $13.05 $13.05 $13.21 $15.31 $15.93 $16.30 $16.05 Representative Monthly Rate (Average)$ 19.95 $19.81 $20.01 $19.95 $19.88 $19.76 $19.93 $20.78 $22.62 $24.07 $24.52 $24.31 Weighted Standard Deviation (Std Dev)$ 4.23 $4.28 $3.41 $3.28 $3.35 $3.24 $3.46 $3.57 $4.20 $4.32 $4.90 $4.95 Average + 2*( Std Dev) $28.41 $28.38 $26.84 $26.51 $26.58 $26.24 $26.85 $27.92 $31.01 $32.71 $34.32 $34.21 Percentage to Average 142% 143% 134% 133% 134% 133% 135% 134% 137% 136% 140% 141% Average + 3*( Std Dev) $32.65 $32.66 $30.25 $29.78 $29.93 $29.47 $30.31 $31.49 $35.21 $37.03 $39.22 $39.16 Percentage to Average 164% 165% 151% 149% 151% 149% 152% 152% 156% 154% 160% 161% * Revised estimates. ** Subject to revision. Table 7.10 Historical Standard Deviation Analysis of Residential Rates in the Sample Citie s (As of October 15) 7 - 24 24 Charged to End Users †Charged to Long Distance Carriers ‡ (S ubscriber Line Charges) (Presubscribed Interexchange Carrier Charges) Residential Multiline Business Non- Primary Multiline Centre x From To and Single- Line Residential Business Business Centre xBusiness 05/ 26/ 84 05/ 31/ 85 $0.00 $4.99 06/ 01/ 85 09/ 30/ 85 1.00 4.99 10/ 01/ 85 05/ 31/ 86 1.00 4.97 06/ 01/ 86 12/ 31/ 86 2.00 4.97 01/ 01/ 87 06/ 30/ 87 2.00 5.12 07/ 01/ 87 12/ 31/ 87 2.60 5.12 01/ 01/ 88 11/ 30/ 88 2.60 5.01 12/ 01/ 88 03/ 31/ 89 3.20 5.01 04/ 01/ 89 12/ 31/ 89 3.50 4.94 01/ 01/ 90 06/ 30/ 90 3.48 4.84 07/ 01/ 90 12/ 31/ 90 3.48 4.83 01/ 01/ 91 06/ 30/ 91 3.48 4.77 07/ 01/ 91 11/ 27/ 91 3.49 4.74 11/ 28/ 91 06/ 30/ 92 3.49 4.76 07/ 01/ 92 06/ 30/ 93 3.49 4.68 07/ 01/ 93 06/ 30/ 94 3.50 5.37 07/ 01/ 94 06/ 30/ 95 3.50 5.45 07/ 01/ 95 06/ 30/ 96 3.50 5.50 07/ 01/ 96 06/ 30/ 97 3.50 5.53 07/ 01/ 97 12/ 31/ 97 3.50 5.68 01/ 01/ 98 06/ 30/ 98 3.50 $4.98 6.92 $0.49 $1.50 $2.52 $0.35 07/ 01/ 98 12/ 31/ 98 3.50 4.99 7.11 0.49 1.38 2.38 0.38 01/ 01/ 99 06/ 30/ 99 3.50 5.88 7.05 0.49 1.38 2.22 0.32 07/ 01/ 99 12/ 31/ 99 3.50 5.84 6.94 0.95 1.77 2.78 0.42 01/ 01/ 00 06/ 30/ 00 3.50 5.81 6.94 0.92 1.70 2.44 0.35 08/ 11/ 00 06/ 30/ 01 4.28 5.99 6.88 0.00 0.00 2.30 0.37 07/ 01/ 01 12/ 31/ 01 4.78 5.93 6.66 0.00 0.00 1.35 0.22 01/ 01/ 02 06/ 30/ 02 4.92 5.93 6.79 0.00 0.00 1.35 0.22 07/ 01/ 02 06/ 30/ 03 5.62 5.88 6.45 0.00 0.00 0.48 0.08 07/ 01/ 03 06/ 30/ 04 5.96 5.94 6.37 0.00 0.00 0.20 0.04 07/ 01/ 04 06/ 30/ 05 5.92 5.85 6.24 0.00 0.00 0.19 0.05 * † ‡ Source: Access tariff filings. Table 7.11 Interstate Per- Line Access Charges (National Average per Month per Line) * Residential Non- Primary Residential Prior to 1/ 01/ 98 carriers did not charge separate subscriber line charge (SLC) rates for primary and non- primary residential li nes. Therefore, the residential and single- line business average SLCs reported prior to 1/ 01/ 98 include all residential SLC charges . The average residential and single- line business SLC rate as of 1/ 01/ 98 excludes non- primary residential SLC charges. Non- primary SLC charges are now reported separately, except for the LECs in the NECA pool, which continue to charge a single residential SLC. Under price- cap regulation, as of January 1, 2003, the caps on SLCs for primary residential and single- line business, non- prima ry residential, and multiline business and Centrex lines equal $6.50, $7.00, and $9.20, respectively. For NECA pool companies, the residential SLC cap is $6.50, while the multiline business and Centrex SLC cap equals $9.20. On 1/ 01/ 98 price- cap carriers began to charge presubscribed interexchange carrier charges (PICCs). The reported PICCs are averages per line including both price- cap and NECA pool lines. While carriers do not charge different rates for Centrex and multiline business SLCs, they do charge different PICC rates for these lines. Therefore, the average multiline business and Centrex PICC rates are reported separately. However, multiline business line counts, used to compute average PICC rates, include Centrex li nes for LECs in the NECA pool, which do not charge PICCs or distinguish in access filings between the two line types. On 7/ 01/ 00 p rice-cap carriers stopped charging residential and single line business PICCs. Therefore, under price- cap regulation, as of July 1, 2000, the caps on PICCs for primary residential and single- line business, non- primary residential, and multiline business lines equa l $0.00, $0.00, and $4.31, respectively. Centrex groups of 9 or fewer lines are capped at the multiline business PICC rate of $4.31 per group. Centrex groups with more than 9 lines are capped $0.48 per line (1/ 9th the multiline business rate). Rates in Effect This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subje ct to price- cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. and and Single- Line 7 - 25 25 Table 7.12 Interstate Per- Minute Access Charges (National Average in Cents per Minute) * To 05/ 26/ 84 01/ 14/ 85 5.24 ¢5.24 ¢3.10 ¢17.26 ¢ 01/ 15/ 85 05/ 31/ 85 5.43 5.43 3.10 17.66 06/ 01/ 85 09/ 30/ 85 4.71 4.71 3.10 16.17 10/ 01/ 85 05/ 31/ 86 4.33 4.33 3.10 15.38 06/ 01/ 86 12/ 31/ 86 3.04 4.33 3.10 14.00 01/ 01/ 87 06/ 30/ 87 1.55 4.33 3.10 12.41 07/ 01/ 87 12/ 31/ 87 0.69 4.33 3.10 11.49 01/ 01/ 88 11/ 30/ 88 0.00 4.14 3.10 10.56 12/ 01/ 88 02/ 14/ 89 0.00 3.39 3.00 9.60 02/ 15/ 89 03/ 31/ 89 0.00 3.25 3.00 9.46 04/ 01/ 89 12/ 31/ 89 1.00 1.83 3.00 9.11 01/ 01/ 90 06/ 30/ 90 1.00 1.53 2.50 7.78 07/ 01/ 90 12/ 31/ 90 1.00 1.23 2.50 7.48 01/ 01/ 91 06/ 30/ 91 1.00 1.14 2.40 7.18 07/ 01/ 91 06/ 30/ 92 0.88 1.06 2.40 6.97 07/ 01/ 92 06/ 30/ 93 0.79 0.95 2.40 6.76 07/ 01/ 93 06/ 30/ 94 0.88 1.16 2.20 6.66 07/ 01/ 94 06/ 30/ 95 0.84 1.08 2.10 0.28 ¢6.89 07/ 01/ 95 06/ 30/ 96 0.74 0.89 1.96 0.21 6.16 07/ 01/ 96 06/ 30/ 97 0.72 0.89 1.95 0.17 6.04 07/ 01/ 97 12/ 31/ 97 0.64 0.84 1.63 0.14 5.18 01/ 01/ 98 06/ 30/ 98 0.68 0.23 1.29 0.21 4.04 07/ 01/ 98 12/ 31/ 98 0.91 0.20 0.99 0.30 3.82 01/ 01/ 99 06/ 30/ 99 0.82 0.16 0.98 0.32 3.71 07/ 01/ 99 12/ 31/ 99 0.37 0.10 0.86 0.28 2.82 01/ 01/ 00 06/ 30/ 00 0.32 0.10 0.86 0.31 2.85 08/ 11/ 00 # 06/ 30/ 01 0.23 0.07 0.52 0.26 1.91 07/ 01/ 01 12/ 31/ 01 0.15 0.07 0.48 0.24 1.71 01/ 01/ 02 06/ 30/ 02 0.15 0.07 0.47 0.24 1.69 07/ 01/ 02 06/ 30/ 03 0.02 0.01 0.48 0.22 1.46 07/ 01/ 03 06/ 30/ 04 0.00 0.00 0.48 0.22 1.44 07/ 01/ 04 06/ 30/ 05 0.00 0.00 0.50 0.25 1.53 * † ‡ # Source: Access tariff filings. Mi nute* Minute Mi nute* Access Access per Switched Carrier Common Line per Terminating Common Line Rates in Effect Interstate Charges for Switched Access Service Non- Traffic Sensitive Total Charge per Carrier Traffic Sensitive Although the charges took effect on July 1, 2000, some companies made adjustments to the tariffs which did not take effect until August 11, 2000. From This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to price- cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. The average rates reported here do not include the average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), which are re ported in Table 7.9. Non- traffic sensitive charges include charges assessed on a per- month per- unit basis. Prior to 07/ 01/ 94 these charges were included in the average traffic- sensitive rates. The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per originating access minute plus the traffic- sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non- traffic- sensitive charge per switched minute. Terminating charges per conversation minute equal carrier common line charges per terminating access minute plus both traffic- sensitive and non- traffic- sensitive charges per switched minute. per Switched Minute † Conversation Minute ‡ per Originating 7 - 26 26 Rates Effective From 07/ 01/ 04 To 06/ 30/ 05 (In Dollars per Month per Line)* (Thousands) Company Residential Non- Primary Multiline Residential Non- Primary Multiline Centrex Residential Non- Primary Multiline and Residential Business and Residential Business and Residential Business Single- Line and Single- Line Single- Line and Business Centrex Business Business Centrex ALLTEL (KY & NE) 6.00 6.36 8.04 0.00 0.00 0.88 0.62 586 39 180 BellSouth 6.50 6.76 6.76 0.00 0.00 0.00 0.00 13,448 1,843 5,212 CenturyTel ‡ 6.40 6.60 7.70 0.00 0.00 1.04 0.41 469 32 128 Cincinnati Bell 5.37 5.37 5.37 0.00 0.00 0.00 0.00 639 66 270 Citizens 6.11 6.48 9.20 0.00 0.00 4.30 0.72 1,640 159 425 Iowa Telecom 6.50 7.00 9.20 0.00 0.00 4.31 0.86 200 13 41 Qwest 6.12 6.36 6.84 0.00 0.00 0.08 0.08 9,236 1,499 3,273 SBC 4.95 4.86 4.89 0.00 0.00 0.00 0.00 26,291 5,066 14,670 Sprint 5.52 5.43 6.57 0.00 0.00 0.00 0.00 4,628 593 1,440 Valor 6.49 6.65 7.99 0.00 0.00 1.51 0.95 373 53 92 Verizon 6.31 6.35 6.71 0.00 0.00 0.40 0.07 29,657 5,430 13,249 Price- cap Carriers 5.86 5.85 6.07 0.00 0.00 0.21 0.05 87,167 14,793 38,980 NECA 6.50 NA 9.20 0.00 NA 0.00 NA 10,082 NA 2,242 All Price- caps Carriers and NEC A 5.92 5.85 6.24 0.00 0.00 0.19 0.05 97,249 14,793 41,222 * †‡ Data reflect only those company study areas subject to price- cap regulation. NA: Not Available Source: Access tariff filings. Table 7.13 Interstate Per- Line Access Charges by Carrier Access line counts measure lines that companies report as qualified to receive subscriber line charges (SLCs). ISDN- BRI lines, which are charged non- primary SLC and PICC rates are included in the non- primary residential line counts. ISDN- PRI lines, which are charged rates equal to five times the multiline business SLC and PICC rates, are multiplied by five and added to multiline business counts. Subscriber Line Charges Presubscribed Interexchange Carrier Charges 2003 Average Monthly Access Lines † This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subje ct to price- cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. No information is available for those carriers that are not in the NECA pool, but are subject to rate- of- return regulation. 7 - 27 27 2003 Minutes of Use Carrier (Millions) Common Line pe r Company Originating Acces s CCL CCL Local Minute** Originating Terminating Switching ALLTEL (KY & NE) 0.00 0.00 0.49 0.44 1.90 691 1,507 2,245 BellSouth 0.00 0.00 0.39 0.27 1.34 19,691 60,348 60,285 CenturyTel # 0.01 0.00 0.53 0.73 2.55 454 1,524 1,978 Cincinnati Bell 0.00 0.00 0.52 0.31 1.69 769 2,175 2,944 Citizens 0.04 0.00 0.57 0.41 1.99 2,133 4,129 6,264 Iowa Telecom 0.00 0.00 1.15 0.61 3.60 274 429 704 Qwest 0.00 0.00 0.62 0.16 1.61 16,077 29,870 46,146 SBC 0.00 0.00 0.42 0.24 1.35 57,523 62,245 118,294 Sprint 0.00 0.00 0.61 0.14 1.54 4,656 17,943 21,559 Valor 0.00 0.00 0.77 0.38 2.34 306 994 1,301 Verizon 0.00 0.00 0.45 0.20 1.32 36,547 102,421 139,757 Price Caps 0.00 0.00 0.46 0.22 1.41 139,121 283,585 401,476 NECA 0.00 0.00 1.26 0.71 4.03 *** *** 18,994 All Price Caps and NECA 0.00 0.00 0.50 0.25 1.53 *** *** 420,470 NA: Not Available. * ** *** NECA no longer files information regarding originating and terminating Carrier Common Line (CCL) charges. †‡# Data reflect only those company study areas subject to price- cap regulation. Source: Access tariff filings. Effective 07/ 01/ 03, the carrier common line (CCL) rates for NECA carriers were eliminated. Minute ‡ Non- traffic sensitive charges include charges assessed on a per- month per- unit basis. Prior to 07/ 01/ 94 these charges were inc luded in the average traffic- sensitive rates. The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per originating access minute plus the traffic- sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non- traffic- sensitive charge per switched minute. Terminating charges per conversation minute equal carrier common line charges per terminating access minute plus both traffic- sensitive and non- traffic- sensitive charges per switched minute. This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs sub ject to price- cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each lo cal exchange carrier. No information is available for those carriers that are not in the NECA pool, but are subject to rate- of- return regulation. The a verage rates reported here do not include the average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), wh ich are reported in Table 7.11. Minute † Access Minute** Access Minute per Total Charge per Conversation Access per Carrier Common Line per Terminating Switched Traffic Sensitive Switched Non- Traffic Sensitive Table 7.14 Interstate Per- Minute Access Charges by Carrier Rates Effective From 7/ 1/ 04 To 06/ 30/ 05 (In Cents per Minute) * 7 - 28 28