1 - 1 1. Industry Revenues and Contributions This section provides a general overview of the revenues of the U.S. telecommunications industry, and the contributions to the universal service support mechanisms that are based on these revenues. 1 Most of the data for 2004 are taken from filings of annual Telecommunications Reporting Worksheets (FCC Form 499-A) made with the Universal Service Administrative Company (USAC) on April 1, 2005. 2 Revenue data collected on these worksheets are used to administer contributions to the universal service fund (USF), Interstate Telecommunications Relay Service (TRS), North American Numbering Plan (NANP), and local number portability (LNP) programs. Filer revenues also are used to calculate FCC Interstate Telecommunications Service Provider (ITSP) regulatory fees. 3 Data presented for 2005 are taken from May 1, 2005, August 1, 2005, November 1, 2005, and February 1, 2006 FCC Form 499-Q quarterly filings. Revenue Information Universal service requirements include several mechanisms that help ensure that all Americans have access to affordable telecommunications service. In section 254(d) of the Telecommunications Act of 1996, 4 Congress mandated that "[e]very telecommunications carrier 1 Portions of this section are based on Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Industry Revenues (March 2006). 2 Telecommunications providers filed worksheets containing calendar year 2005 revenue data on April 1, 2006. The worksheets are filed with the FCC’s Data Collection Agent, which extensively reviews and validates data. Telecommunications providers routinely make revised filings. As a result, the data are not considered reliable enough for publication for several months after the initial filing date. Therefore, the 2006 filings were not available for use in this report and 2005 data were based on the more abbreviated and less reliable FCC Form 499-Q quarterly filings. April 2005 FCC Form 499-A filings containing 2004 revenues were used to compile the 2004 data. Compilation was based on a database prepared by the Data Collection Agent as of October 15, 2005. Therefore, revised or new 2005 FCC Form 499-A filings that were received after October 15, 2005, are not reflected herein. 3 Much of the information filed on FCC Form 499-A is proprietary. Publicly available information on individual carriers is contained in Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Provider Locator (March 2006). See also . 4 Pub. L. No. 104-104, 110 Stat. 56 codified at 47 U.S.C. §§ 151 et seq. 1 - 2 that provides interstate telecommunications services shall contribute, on an equitable and nondiscriminatory basis, to the specific, predictable, and sufficient mechanisms established by the Commission to preserve and advance universal service." 5 The Commission implemented this mandate in a 1997 Report and Order. 6 The Commission subsequently selected USAC as the administrator of the universal service support mechanisms. Telecommunications providers currently file FCC Form 499-A (Telecommunications Reporting Worksheets, due each April) and FCC Form 499-Q (Telecommunications Reporting Worksheets, due one month after the close of each calendar quarter). Virtually all providers of telecommunications must file FCC Form 499-A each year. 7 On June 21, 2006, the Commission ruled that providers of interconnected Voice over Internet Protocol (VoIP) service also must file FCC Form 499-A worksheets. 8 These filers will provide revenue 5 47 U.S.C. § 254(d). 6 See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776 (1997) (subsequent history omitted). 7 There are certain exceptions. Providers that offer telecommunications for a fee exclusively on a non-common carrier basis are not required to file if their total annual contribution to universal service would be less than $10,000. Government entities that purchase telecommunications services in bulk on their own behalf, public safety and local government entities licensed under Subpart B of Part 90 of the Commission’s rules, and entities providing interstate telecommunications exclusively to government or public safety entities are not required to file. In addition, broadcasters, non-profit schools, non- profit libraries, non-profit colleges, non-profit universities and non-profit health care providers are not required to file. Finally, systems integrators that derive less than 5% of their systems integration revenues from the resale of telecommunications and entities that provide services only to themselves or to commonly owned affiliates need not file. However, services provided to exempt entities are subject to contribution requirements and therefore exempt entities may be required to pay USF pass-through charges to underlying services providers. 8 See Universal Service Contribution Methodology; Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review – Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, Truth-in-Billing and Billing Format, WC Docket No. 06-122, CC 1 - 3 information in their April 2007 FCC Form 499-A filings. Reporting Worksheets are not filed directly with the FCC but rather with USAC, which serves as the data collection agent. FCC Form 499-A asks each filer to report total, interstate and international revenues in two broad categories: those billed to universal service contributors for resale (carrier's carrier revenues); and those billed to de minimis telecommunications providers and end users (end-user revenues). 9 Filers must provide further breakdowns of local, wireless, and toll services. The form also asks each filer to choose the communications business that best describes its operations: 10 • All Distance Carrier • Competitive Access Provider (CAP) or Competitive Local Exchange Carrier (CLEC) • Cellular, Personal Communications Service (PCS) and Specialized Mobile Radio (SMR) Wireless Telephony Service Provider • Coaxial Cable • Incumbent Local Exchange Carrier (ILEC) • Interexchange Carrier (IXC) • Local Reseller • Operator Service Provider (OSP) • Other Local Service Provider • Other Mobile Service Provider • Other Toll Service Provider • Paging and Messaging Service Provider • Payphone Provider • Prepaid Calling Card Provider • Private Service Provider • Satellite Service Provider • Shared-Tenant Service Provider • Specialized Mobile Radio - Dispatch Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170, Report and Order and Notice of Proposed Rulemaking and Report and Order,FCC 06-94 (adopted June 21, 2006) (2006 Contribution Methodology Reform Order). 9 Telecommunications providers are considered de minimis and thus are not required to contribute to universal service (or file Form 499-Q) if their annual contributions to universal service would be less than $10,000. For universal service contribution purposes, underlying service providers treat de minimis firms as end users. 10 The detailed definitions of the filer categories are contained in section III.A of the Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A available at www.fcc.gov/Forms/Form499-A/499a.pdf. Starting in 2004, carriers were instructed to select up to 5 ranked categories of telecommunications service providers. 1 - 4 • Toll Reseller • Wireless Data Service Provider The Form 499-A instructs filers to report amounts actually billed to customers. This means that filers are required to report revenues net of discounts, but without making adjustments to reflect uncollectible revenues or international settlement payments and receipts. Most filers are able to report revenues in this manner using information contained in their corporate books of account. Some service providers, however, have no business or regulatory requirements to record intrastate or international revenues separately from interstate revenues, or to use the detailed revenue categories contained in the worksheets. Many wireless providers use the interim safe harbor percentages to estimate the interstate portion of their revenues. 11 Form 499-A filings sometimes contain mistakes. Initial examination of the data occasionally reveals carrier types, revenue amounts and/or revenues reported in service categories inconsistent with the known operations of the filer. Some corrections have been made based on supplemental filer information or as a result of audits. Nonetheless, disaggregated data are likely to be less accurate than industry totals. Table 1.1 shows the major components of telecommunications revenues for 1997 through 2005. This table was created by simply aggregating the revenues in the major classifications designated on Form 499-A. Tables 1.2 and 1.3 provide a look at annual industry revenues over time. Generally, Form 499-A revenue data can be tabulated in two distinct ways: by type of service provided and by type of business. Table 1.2 categorizes revenues by type of service and shows, for example, that carriers reported $96.5 billion in wireless service revenues for 2004. This total includes wireless service revenues from some carriers that are not identified as wireless carriers. In contrast, Table 1.3 shows that wireless service providers reported total revenues of $99.5 billion, including some revenues for fixed local and toll services. Revenue data shown for 1994 through 1996 were derived from information filed on TRS worksheets. Revenue data for 1997 and 1998 were derived by combining TRS worksheet and Universal Service worksheet data. Since 1999, revenue data came from Form 499-A, which 11 See Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A section III.C.3., available at http://www.fcc.gov/Forms/Form499-A/499a-2005.pdf. In 2001 and 2002, the interim safe harbor for wireless carriers was 15%. In December 2002, the Commission raised the wireless interim safe harbor to 28.5%. Wireless carriers began reporting revenues based on the higher interim safe harbor percent on the FCC Form 499-Q due on February 1, 2003, and began contributing on this basis in April 2003. In June 2006 Contribution Methodology Reform Order, the Commission raised the wireless interim safe harbor to 37.1%. Wireless carriers began reporting revenues based on this higher interim safe harbor percent in the FCC Form 499-Q due on August 1, 2006. 1 - 5 replaced both the TRS and Universal Service worksheets. Because of reporting changes, data since 1999 are not entirely consistent with data for prior years. 12 Note also that each year, many filers erroneously report substantial amounts of switched toll revenues as other long distance revenues. The data are examined and some revenues are reclassified based on staff research. Even so, the other long distance category of Table 1.2 probably continues to contain some switched toll revenues, perhaps significant amounts in some years. Table 1.4 illustrates how data from the Form 499-A are used to develop the funding base for the USF. 13 As noted above, providers are considered de minimis for USF purposes if their annual contribution is expected to be less than $10,000. Revenue data for individual filers are not available to the public. However, Tables 1.5 through 1.8 present detailed industry totals by type of revenue and type of filer. Table 1.5 provides a detailed breakout of revenues for each of the Form 499-A revenue categories used to report services provided to other filers for resale. Table 1.6 displays similar detail for each of the revenue categories used to report telecommunications service provided to end users. Table 1.7 combines data from Tables 1.5 and 1.6 with data on non-telecommunications revenues to develop total industry revenues. Table 1.8 provides more aggregated revenue information by type of filers. The revenue categories presented in Tables 1.5 through 1.7 are explained in the Form 499-A filing instructions. Table 1.9 presents data from quarterly filings of Form 499-Q for 2005. Form 499-Q is far less detailed than Form 499-A. Because Form 499-Q filings do not include a business type, filers were categorized based on the primary business type selected on their Form 499-A filings. The 12 For example, special access revenues were included with other access revenues prior to 1997 but have been included with local private line services since then. Similarly, through 1996, filers reported as other local and mobile revenues substantial amounts of customer premises equipment, billing and collection, and other types of revenues that are excluded from contributions to universal service. These revenues are now reported as non- telecommunications revenues. Both tables contain estimates of non-telecommunications revenues that had been reported in prior years. Based on staff estimates, the 1996 telecommunications revenues reported on TRS Worksheets would have been $10.5 billion lower if revenues had been reported using current instructions. Some inconsistencies existed in the 1997 - 1998 period. For example, filers were required in 1997 to include inside wiring maintenance revenues as part of local exchange revenues. In 1998, filers were instructed to report these revenues as non-telecommunications service revenues. The local exchange service revenue data in Table 1.2 would show a greater increase from 1997 to 1998 if the same reporting instructions had been used for each year. 13 See Telecommunications Industry Revenues 2004 for a comparison with the funding bases used for TRS, NANP, and LNP. See also http://www.fcc.gov/wcb/iatd/lec.html. 1 - 6 quarterly form asks filers to identify revenues as carrier’s carrier, contribution base end-user, or non- telecommunications and to indicate the interstate and international shares of each category. Unlike Form 499-A, the quarterly form does not require filers to report revenues to the provision of specific types of services. Also, international-to-international revenues are included with non- telecommunications revenues rather than with end-user revenues. 14 The universal service rules prohibit the fund administrator from releasing company-specific information contained in Form 499-A and Form 499-Q worksheets. 15 Revenue data for individual filers are not available to the public. Program Requirements and Contribution Factors Carriers make payments into the USF based on their interstate and international end-user revenues. Carriers report their revenue data to USAC, which tabulates the data, and reports it to the Commission. The Commission reviews program requirements and revenue data, and determines the appropriate contribution factor. The Commission’s Wireline Competition Bureau releases a public notice stating the proposed contribution factor for the upcoming quarter. If, after 14 days, the Commission takes no action regarding the proposed contribution factor, the factor becomes final. The Commission issued an order in February 2002 that changed the methodology used to determine payments that carriers make into the federal USF. 16 It issued another order in December 2002 that made further changes. 17 Before these changes, service providers filed historic revenue 14 Filers record international-to-international revenues for calls that they receive outside the United States and that they carry to points outside the United States where the filer is operating as a U.S. carrier. 15 47 C.F.R. §54.711(b). 16 See Federal-State Joint Board on Universal Service; 1998 Biennial Regulatory Review - Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms; Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990; Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size; Number Resource Optimization; Telephone Number Portability; Truth-in-Billing and Billing Format, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752 (2002). 17 See Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review - Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number 1 - 7 information each quarter, which, after being reduced by 1% to account for uncollectible contributions, was divided into the total program requirements in order to calculate the contribution factor. Some service providers placed surcharges on customer bills to recover the amounts that they expected to make in USF contribution payments. These surcharges are called "pass-through" charges, and often exceeded the actual contribution rates. Service providers asserted several reasons for marking up contribution pass-through charges. The most important reason was because the revenues from pass-through charges also were included in the service provider contribution bases. Filers used the term "circularity" to describe this situation. Service providers also relied upon markups because they had to contribute on revenues even where the customer failed to pay. Some service providers also added markups to recover administrative expenses that they claimed were related to contributions. Finally, some service providers had declining revenues. Those providers had to contribute on a historic amount that was greater than their current period billings. The markups resulted in numerous consumer complaints. The Commission twice changed the universal service contribution methodology to ensure that markups matched contributions. The first change, adopted in February 2002 and implemented in the third quarter of 2002, reduced each carrier’s contribution base by the amount that the carrier paid into USF during the prior quarter. The line item “Circularity Adjustment” in Table 1.10 accounts for this change. The “Circularity Adjustment” represents the industry’s actual contributions during the prior quarter as reported by USAC. This eliminated circularity as a reason for carriers to inflate pass-through charges. After this first change, some service providers continued to impose pass-through charges in excess of the published contribution factor. In December 2002, the Commission adopted additional changes to its contribution methodology, which were fully implemented in the second quarter of 2003. Form 499-Q filers now file information on billed revenues for the previous quarter and both projected billed revenues and projected collected revenues for the upcoming quarter. Projected collected revenues, which are projected billed revenues less an allowance for uncollectible revenues, form the basis for USF contribution assessments. Projected collected revenues are then adjusted to eliminate circularity. Starting with the second quarter of 2003, the "Circularity Adjustment" amounts shown in Table 1.10 (discussed in more detail below) reflect expected USF contributions for the quarter rather than the industry's actual contributions from a prior quarter. Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, Truth-in-Billing and Billing Format, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170, Report and Order and Second Further Notice of Proposed Rulemaking, 17 FCC Rcd 24952 (2002). 1 - 8 Table 1.10 shows the program funding requirements for 2005 and the first three quarters of 2006. For each program and for each quarter, the table lists projected program demand, administrative costs, interest income, and periodic true-ups. The table also shows the revenue base and contribution factors for each quarter. As explained above, the contribution base is 1% less than reported revenues to reflect the fact that some contribution assessments may prove uncollectible. Table 1.11 shows universal service disbursements on a mechanism-by-mechanism basis for 2005. 18 Chart 1.1 shows the same information graphically. Table 1.12 shows, on a state-by-state basis, the total amount of funding disbursements for each of the universal service mechanisms, estimated contributions towards universal service, and the net estimated dollar flow (disbursements less estimated contributions) for 2005. 19 Technical Appendix Carrier revenue information is not reported on a state-by-state basis. Therefore, it is necessary to estimate revenues per state in order to derive contributions made per state. The nationwide sum of contributions to support universal service is equal to the payments made from USAC to carriers for universal service mechanisms plus administration costs. Contributions on a per-state basis are computed by multiplying nationwide contributions by the ratio of interstate end-user revenues in each state to nationwide interstate end-user revenues. Estimates of interstate end-user revenues for 2004 by state are reported in Table 1.13. Each state’s share of interstate end user revenues is reported in Table 1.12. 20 The remainder of this appendix provides a detailed description on how revenues are allocated to the states. Tables 1.5 and 1.6 present nationwide data on telecommunications revenues derived from information filed on Form 499-A Telecommunications Reporting 18 Figures in Table 1.11 are lower than those in Table 1.10 due to the difference between projected demand and actual disbursements. The figures used in Tables 1.11 and 1.12 are for the calendar year and include disbursements that were committed over several years but paid out in calendar year 2005. In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. 19 For a discussion of the methodology used to estimate contributions per state, see the Technical Appendix below and Table 1.13. 20 State’s share of interstate end user revenues are reported under the heading “estimated contributions percent of total.” 1 - 9 Worksheets. Nationwide (cumulative) telecommunications revenues from these tables are divided into categories. These categories are ILECs’ local exchange service revenues, CLEC revenues, subscriber line charge (SLC) revenues, access revenues, mobile wireless revenues and toll revenues. 21 Table 1.14 presents telecommunication revenues for each of these categories at the nationwide level. As set forth below, once the revenues are divided into categories, we use data from several sources to estimate each state’s telecommunications revenues. Data from the Statistics of Communication Common Carriers 22 are used to estimate on a state-by-state basis ILECs’ local exchange service revenues, access revenues, and toll revenues. 23 Data from tariff access filings with the FCC are used to estimate SLC revenues. CLEC and mobile wireless revenues are estimated on a state-by-state basis using data from FCC Form 477. Table 1.15 shows intrastate carrier’s carrier, end-user and total telecommunication revenues by category for ILECs’ local exchange service, CLECs, wireless, access, ILEC toll, and non-ILEC toll. 24 Components of interstate carrier’s carrier, end-user and total telecommunications revenues are presented in Table 1.16. These components include ILECs, CLECs, wireless, SLCs, access, and toll. 25 Data from the 2004/2005 Statistics of Communications Common Carriers are adjusted prior 21 The notes in Table 1.14 discuss how revenues from Tables 1.5 and 1.6 are assigned to categories in Table 1.14. 22 Industry Analysis and Technology Division, Wireline Competition Bureau, Statistics of Communications Common Carriers, 2004/2005 edition (November 2005). 23 Revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are not estimated using data from the Statistics of Communications Common Carriers because these jurisdictions have no telephone companies subject to the FCC's Automated Reporting Management Information System (ARMIS) 43-01 and 43- 08 reporting requirements. 24 Estimated intrastate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average intrastate telephone revenues per loop by number of loops in the jurisdiction. 25 Estimated interstate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average interstate telephone revenues per access minute by number of access minutes in the jurisdiction. 1 - 10 to allocating nationwide revenues to the states. Data compiled in the Statistics of Communications Common Carriers include those ILECs with annual operating revenues over $123 million for 2003 and revenues over $125 million in 2004. The Statistics of Communications Common Carriers revenue data represent approximately 92 percent of the local telephone industry based on USF loops. Here, data from the Statistics of Communications Common Carriers are expanded to include the entire ILEC industry based on USF loops. Column 1 of Table 1.17 shows USF loops at year-end 2004. Column 2 shows the percent of the ILEC industry that is included in the tables in the Statistics of Communications Common Carriers. It is the average for year-end 2003 and 2004 data. 26 The adjustment formula in Column 3 is (100/Column 2). In Table 1.18, ILECs’ state local exchange revenues are allocated based on local exchange service and state miscellaneous revenues from Table 2.11 of the 2004/2005 Statistics of Communications Common Carriers. Local exchange revenues for allocation are the product of reported ILECs’ local exchange service and miscellaneous revenues and the adjustment formula in Table 1.17. Allocation percentages in each state are the ratio of the state’s allocation revenues to nationwide revenues. Local exchange revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.19, we allocate interstate and intrastate CLEC revenues on a state-by-state basis by multiplying national revenues (see Table 1.14) by an allocation percentage. For those states with publicly available data on CLEC lines that exceed 100,000, the allocation percentage is determined by dividing the number of CLEC lines as reported in FCC Form 477 by nationwide CLEC lines. 27 It is more difficult to determine the allocation percentage for the other states. For these states, the allocation percentage is the product of the following two percentages: 1) the percentage of nationwide CLEC lines that are in states in which CLEC line totals are not publicly available or have fewer than 100,000 CLEC lines, and 2) the ratio of Regional Bell Operating Company (RBOC) resold lines and unbundled network element (UNE) loops in the state as compared to RBOC resold lines and UNE loops in all states in which CLEC lines are not reported or have fewer than 100,000 CLEC lines reported. 28 In Table 1.20, we allocate interstate and intrastate mobile wireless revenues on a state-by- state basis by multiplying national revenues (see Table 1.14) by an allocation percentage. The allocation percentage is determined by dividing the number of wireless subscribers in a state by 26 See Table 5.7 of the Statistics of Communications Common Carriers, 2004/2005 edition, for year-end 2003 data. 27 See for CLEC lines as of June 2004. 28 See for RBOC data on resold lines and UNE loops as of June 2004. 1 - 11 nationwide wireless subscribers using data from FCC Form 477. 29 SLC revenues are allocated by state in Table 1.21. The sum of residential non-Lifeline lines (including both primary and non-primary lines) and single-line business lines are estimated by multiplying residential non-Lifeline lines and single-line business lines from Table 2.17 of the 2004/2004 Statistics of Communications Common Carriers by the adjustment factor from Table 1.17. Column 1 shows primary residential lines and single-line business lines which is the difference between total residential and single-line business lines, and non-primary lines. Non- primary residential lines are from Table 2.4 of the Statistics of Communications Common Carriers. Multi-line business lines (Column 3) are estimated for the industry by multiplying the number of lines in Table 2.17 of the Statistics of Communications Common Carriers by the adjustment factor in Table 1.17. Primary residential and single-line business lines SLC rates per month, shown in Column 4 are the rates filed in the Tariff Review Plan (TRP) for price-cap carriers from July 2003 filings and from National Exchange Carrier Association (NECA) pool and rate-of-return carriers. 30 Non- primary SLC revenues per line per month for price-cap companies, shown in Column 5, are the rates filed in the TRPs from the July of 2003 filings. Multiline business SLC rates per line per month in each state, shown in Column 6, are estimated based on the rates in the July 2003 TRP filings for price-cap companies and from NECA pool and rate-of-return carriers. 31 Revenues used for allocating SLC revenues by state are determined by the following formula: 12 * [primary residential and single-line business SLC per line per month * (primary residential lines and single-line business lines) + multiline business SLC per line per month * (multiline business lines) + non-primary lines * non-primary SLC per line per month]. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. SLC revenues are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.22, interstate access revenues and private line revenues are allocated on a state- by-state basis based on net access revenues. Gross access revenues for allocation are the product of interstate access revenues from Table 2.11 of the 2004/2005 Statistics of Communications Common Carriers and the adjustment formula presented in Table 1.17. Revenues for allocation are the difference between gross access revenues for allocation and subscriber line charge revenues. 29 See for wireless subscribers as of June 2004. 30 Carrier USF loop counts are used as weights. We assume that the residential SLC for NECA pool and rate-of-return carriers during the relevant time period was $6.50. 31 The rates of NECA pool carriers and rate-of-return carriers are assumed to be $9.20 per line per month for multiline business. 1 - 12 Allocation percentages in each state are the ratio of the state’s allocation revenues to nationwide revenues. Access revenues by type are determined by multiplying the allocation factors by the type of revenues (see Table 1.14). In Table 1.23, intrastate access revenues are allocated between states based on intrastate access revenues from Table 2.11 of the 2004/2005 Statistics of Communications Common Carriers. Intrastate access revenues for allocation are the product of these access revenues and the adjustment formula in Table 1.17. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. Access revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). Table 1.24 shows ILEC toll revenues of large ILECs reported in Table 2.11 of the Statistics of Communications Common Carriers, and ILEC intrastate toll revenues. 32 ILEC intrastate toll revenues are the product of ILEC reported revenues and the adjustment formula in Table 1.17. Table 1.25 shows how non-LECs’ intrastate toll revenues are allocated between states based on intrastate access minutes and intrastate access revenues. 33 Non-LEC toll is the difference between intrastate toll revenues and LEC toll revenues. 34 Intrastate toll revenues are reported in Table 1.14, and LEC toll revenues are reported in Table 1.24. Column 1 shows access minutes for allocation. Access minutes for allocation are the product of intrastate-interLATA access minutes from Table 2.5 of the 2004/2005 Statistics of Communications Common Carriers and the adjustment formula in Table 1.17. Column 2 shows each state’s percentage of intrastate access minutes. Column 3 shows each state’s percentage of intrastate access revenues. 35 The allocation percentages for non-LECs’ intrastate toll revenues, presented in Column 4, are (75% * Column 2) + (25% * Column 3). Intrastate toll revenues by type presented in Columns 5 and 6 are determined by multiplying the allocation percentage by the type of revenues. In Table 1.26, interstate toll revenues are allocated on a per state basis by interstate access minutes. Interstate access minutes are from Table 8.4. The allocation percentages are each state’s percentage of interstate access minutes. Interstate toll revenues by type presented are determined by multiplying the allocation percentage by the type of revenues. (see Table 1.14). 32 ILECs’ toll revenues are assumed to be intrastate revenues. 33 Intrastate access revenues are a proxy for intrastate toll rates. 34 We assume that all LEC toll revenues are end-user revenues. 35 Intrastate access revenues are reported in Table 1.23. Non-LEC toll is the difference between intrastate toll revenues and LEC toll. LEC toll is assumed to be end-user toll. Intrastate toll revenues are reported in Table 1.14 and LEC toll in Table 1.24. Table 1.1 Total Telecommunications Industry Revenues 1/ (Dollar Amounts Shown in Millions) Preliminary 5/ 1997 1998 1999 2000 2001 2002 2003 2004 2005 Carrier's Carrier Revenues 2/ Local Service 3/ $28,289 $29,374 $33,156 $36,621 $40,108 $38,412 $37,742 $38,546 $38,986 Wireless Service 2,752 3,060 4,652 5,144 6,180 5,020 4,465 4,164 5,998 Toll Service 11,598 13,448 14,934 21,849 19,999 16,476 18,205 15,703 17,376 Intrastate 16,201 18,892 22,293 25,553 27,848 25,770 24,825 25,852 27,073 Interstate and International 4/ 26,438 26,990 30,449 38,060 38,439 34,138 35,587 32,561 35,288 Total 42,639 45,758 52,742 63,613 66,287 59,907 60,412 58,413 62,360 End User Revenues 2/ Local Service 3/ 69,137 75,189 78,608 84,526 87,704 88,712 86,474 83,407 83,341 Wireless Service 30,199 33,714 43,843 56,857 68,507 76,501 85,254 94,404 101,863 Toll Service 89,193 91,607 93,311 87,767 79,302 67,222 58,983 55,511 48,968 Intrastate 117,454 123,216 134,919 147,465 155,347 154,815 150,889 153,265 156,251 Interstate and International 4/ 71,076 77,294 80,844 81,685 80,165 77,619 79,822 80,057 77,920 Total 188,529 200,510 215,763 229,149 235,513 232,434 230,711 233,322 234,171 Total Revenues Local Service 3/ 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 122,327 Wireless Service 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,861 Toll Service 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 66,343 Intrastate 133,655 142,108 157,212 173,018 183,195 180,585 175,714 179,117 182,124 Interstate and International 4/ 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,617 113,208 Total $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $296,532 Note: Detail may not add to totals due to rounding. 1/ 2/ 3/ 4/ 5/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements. Carrier's carrier revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale. This includes, for example, access services that local exchange carriers provide to toll carriers. Sales to de minimis resellers, end-user customers, governments, non-profits, and any other non-contributors are treated as end-user revenues. Filers contribute to the universal service funding mechanisms based on their end-user revenues. Payphone revenues are included with local service revenues in this table. Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table through 2004, but are not included in the universal service contribution base. Preliminary 2005 data are based on FCC Form 499-Q quarterly filings through November 2005. Companies that do not contribute to universal service are not required to make these filings. The quarterly filings include preliminary data for the just closed quarter and projections for the coming quarter, and therefore are not as accurate as the subsequent annual filings. Also, FCC Form 499-Q filers do not separate revenue by type of service. Therefore, revenue totals by service type for 2005 are based on type of filer rather than on data filed by service. 1 - 13 Table 1.2 Telecommunications Industry Revenues by Service (Dollar Amounts Shown in Millions) Universal Service FCC Form 499-A Data & TRS Data 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Local Exchange $42,245 $45,194 $48,717 $53,771 $59,245 $64,940 $69,947 $72,346 $71,320 $70,606 $68,238 Pay Telephone 1/ 2,182 2,536 2,218 1,932 1,585 1,192 1,063 1,002 Local Private Line 2/ 1,138 1,226 1,616 8,282 10,403 12,914 16,864 21,966 23,070 22,415 23,840 Other Local 3/ 1,407 3,233 2,674 2,847 2,179 2,501 3,249 3,391 3,418 3,242 2,944 Subscriber Line Charges 2/ 7,310 7,597 7,829 8,327 11,052 10,826 11,563 12,127 12,758 12,136 11,715 Access 2/ 25,449 26,314 27,812 21,423 18,449 18,105 17,017 15,096 13,955 12,972 12,352 103 260 575 1,301 1,410 1,783 1,862 595 595 Total Local Service 77,548 83,564 88,647 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 Wireless Service 12,863 16,883 23,444 32,760 36,240 48,117 61,505 74,006 80,678 88,023 96,450 345 379 495 681 842 1,696 2,118 189 189 Total Wireless Service 12,863 16,883 23,444 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 Operator 1/ 10,539 11,170 10,975 12,002 12,205 10,049 11,406 10,389 7,902 6,567 6,542 Non-Operator Switched Toll 61,468 65,217 73,751 72,059 74,168 78,389 75,183 65,325 54,475 50,178 46,387 Long Distance Private Line 9,043 9,719 10,665 10,504 11,952 13,169 16,189 16,402 15,108 15,316 13,906 Other Long Distance 3,428 3,523 4,299 4,695 3,386 3,656 3,372 3,259 2,445 2,222 1,801 1,810 2,983 3,467 3,927 3,767 2,905 2,577 1,532 1,532 Total Toll Service 84,478 89,629 99,691 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 Total Telecommunications 3/ 174,890 190,076 211,782 231,168 246,392 268,505 292,762 301,799 292,341 291,122 291,735 Non-Telecommunications 3/ 8,324 9,071 10,474 25,633 27,944 33,144 42,261 48,036 60,406 65,186 71,493 Total Reported Revenues 183,214 199,147 222,256 256,801 272,019 301,648 335,023 349,835 352,747 356,308 363,227 Service Reported as: Intrastate 3/ 102,603 112,923 127,849 133,654 142,108 157,212 173,018 183,195 180,585 175,714 179,129 Interstate and International 80,611 86,224 94,407 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,605 Total Telecommunications 3/ $183,214 $199,147 $222,256 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 TRS Worksheet Data See notes on next page. Universal Service Surcharges on Local Service Bills 4/ Additional Revenues from TRS Worksheets Universal Service Surcharges on Wireless Service Bills 4/ Additional Revenues from TRS Worksheets Universal Service Surcharges on Toll Service Bills 4/ Additional Revenues from TRS Worksheets 1 - 14 TRS filers generally reported pay telephone revenues as local service revenues, access revenues or operator toll revenues. The Universal Service and FCC Form 499-A worksheets contain a separate category for payphone coin revenues. Starting in 1997, payphone revenues include payphone compensation received from toll carriers. TRS Worksheet filers generally reported special access revenues as access revenues. Reporting changes implemented with the Universal Service Worksheet explain the increase in local private line revenues and the fall in access revenues shown for 1997. TRS Worksheet filers included subscriber line charges with other access charges. Through 1996, these revenues have been disaggregated by assuming that the end- user access revenues in Table 4.2 of Statistics of Communications Common Carriers represents 93% of industry total subscriber line charge revenues. Universal Service Worksheet filers report subscriber line charges in a separate category. The increase from 1997 to 1998 represents PICC charges levied by ILECs as well as $1.2 billion of PICC pass-through charges levied by toll carriers. Significant amounts of enhanced services, billing and collection, CPE and other non-telecommunications revenues were reported in the TRS mobile and other local service categories through 1996. Universal Service Worksheet filers report these revenues in the non- telecommunications category. For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of amounts reported as mobile service revenue. These amounts have been removed from Other Local and moved to the Non-Telecommunications category. Note: Detail may not add to totals due to rounding. Some data for prior years have been revised. 1/ Notes for Table 1.2 2/ 3/ Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless and toll revenues. Reported amounts are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll intrastate and interstate revenues by type of carrier. Source: Industry Analysis Division, Common Carrier Bureau, Telecommunications Industry Revenues (March 2005). Data for 1994 through 1996 summarized from FCC Form 431 TRS Worksheets. Data for 1992 through 1996 summarized from FCC Form 431 TRS Worksheets. Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets. Starting in 1999, data summarized from FCC Form 499-A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. 4/ 1 - 15 Table 1.3 Telecommunications Revenues Reported by Type of Carrier (Dollar Amounts Shown in Millions) TRS Worksheet Data FCC Form 499-A Data & TRS Data Service Provider Category 1/ 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Incumbent Local Exchange Carriers 2/ $91,527 $95,612 $100,021 $105,154 $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 $105,496 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 281 623 1,011 1,919 3,348 5,652 9,814 12,998 13,043 15,509 15,112 Local Resellers 206 410 511 879 1,393 1,538 721 1,215 Other Local Exchange Carriers 157 36 171 11 329 406 338 245 Private Carriers 112 147 87 39 15 281 267 532 Shared-Tenant Service Providers 87 93 87 202 46 42 22 22 Competitors of ILECs 281 623 1,011 2,481 4,034 6,508 10,945 14,781 15,309 16,857 17,126 Fixed Local Service Providers 91,807 96,235 101,032 107,634 112,268 118,725 127,103 132,666 130,300 126,337 122,622 Payphone Providers 300 349 357 933 1,101 1,213 972 836 641 523 445 Wireless Telephony Including Cellular, 11,933 15,488 21,400 29,944 33,139 46,513 59,823 71,887 78,568 88,168 98,329 Personal Communications Service (PCS) and SMR Telephony Carriers 2/ Paging & Messaging Service 2/ 2,861 3,161 3,232 3,102 2,197 1,473 1,007 872 Specialized Mobile Radio (SMR) 186 191 214 206 33 46 Dispatch Wireless Data Service Providers Other Mobile Service Providers 845 1,277 1,909 225 731 221 164 110 220 135 218 Wireless Service Providers 12,777 16,765 23,310 33,030 37,032 50,152 63,280 74,596 80,467 89,342 99,465 Interexchange Carriers (IXCs) 66,381 70,938 79,057 79,080 83,443 87,570 87,311 81,272 68,146 61,246 51,589 Operator Service Providers (OSPs) 536 500 461 603 590 337 635 611 554 567 523 Prepaid Calling Card Providers 16 238 519 888 866 727 133 460 812 1,635 Satellite Service Providers 1,011 475 280 336 373 406 663 721 Toll Resellers 2,840 4,220 6,564 8,010 9,885 9,211 10,641 8,797 9,279 9,294 12,192 Other Toll Carriers 709 773 577 348 710 150 1,758 2,516 2,089 2,339 2,543 Toll Service Providers 70,466 76,447 86,896 89,570 95,992 98,414 101,407 93,702 80,934 74,920 69,204 Non-Telecommunications Revenues in Prior Year Data 2/ (461) 280 187 00000000 , , , , , , , , , , , Total Telecommunications Revenues $174,890 $190,076 $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $292,341 $292,341 1/ 2/ 3/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). Other adjustments include some amounts withheld to preserve confidentiality and revisions made after the initial publication of the data. Universal Service Other Adjustments 3/ Filers are asked to select for themselves a service provider category that best describes their operations. The choices have changed over the years. For example, most satellite service providers identified themselves as other toll carriers in their 1997 FCC Form 431 TRS worksheets because there was no separate category for satellite service providers. For 2003 and 2004, some filers identified themselves as all distance carriers. These filers have been reclassified to be consistent with prior classifications. Significant amounts of enhanced services, billing and collection, CPE and other non-telecommunications revenues were reported in the TRS mobile and other local service categories through 1996. Universal Service Worksheet filers report these revenues in the non- telecommunications category. For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of amounts reported as mobile service revenue. These amounts have been removed from Other Local and moved to the Non-Telecommunications category. 1 - 16 2004 Revenues subject to universal service contribution Interstate and international end-user revenues $80,057 less revenues for international - to - international services 644 less international revenues of international-only filers and international revenues that were excluded because of 3,118 the 12% rule 2/ less interstate and other international revenues for 2,606 filers who are ide minimis or otherwise exempt 66 from universal service support requirements less uncollectible contribution base revenues 1,574 equals $74,654 Revenues subject to TRS contribution Interstate and international end-user revenues $80,057 less interstate and international revenues for 114 filers who identify themselves as private service providers or as shared tenent service providers and who therefore are exempt from telecommunications relay service (TRS) contribution requirements if they provide no carrier services 438 less interstate and international revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service support mechanisms 175 equals $79,443 Revenues subject to NANPA and LNP contribution Total telecommunications service end-user revenues (including intrastate, interstate and international) $233,322 less telecommunications revenues for 756 filers who identify themselves as private service providers, shared tenent service providers or payphone service providers and who therefore are exempt from service (TRS) contribution requirements if they provide no carrier services 1,099 less telecommunications revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service support mechanisms 398 equals $231,824 1/ 2/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). Exempt amounts were based on revenues and the filer type information contained in the FCC Form 499-A filings. The fund administrators may use carrier type, revenue type, line 603 exemption certifications and additional information requested from filers to determine which filers must contribute. The universal service fund administrator bills delinquent filers based on estimated revenues and may, in some instances, include estimated revenue amounts in contribution base amounts. Note also that universal service contribution factors are set quarterly based on FCC Form 499-Q filings. FCC Form 499-A data are used for true-up and auditing purposes. Also note that local number portability contribution amounts are determined by region of the country rather than on a nationwide basis. As a result of these factors, actual contribution bases have been based on slightly different amounts than those shown. Table 1.4 Contribution Base Revenues By Program 1 /: 2004 (Dollar Amounts Shown in Millions) International revenues are excluded from the contribution base if the total amount of interstate revenues for the filing entity consolidated with all affiliates is less than 12% of the total of interstate and international revenues for the filing entity consolidated with all affiliates. See 47 C.F.R. § 54.706(c). The threshold was increased from 8% to 12% in 2002. See Federal-State Joint Board on Universal Service, et al., CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-166, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752, 3806, para. 125 (2002). In addition, filers that provide only international services are exempt regardless of services offered by affiliates. This table shows how contribution bases differ for different programs and provides relative magnitudes, but does not provide the actual amounts used for determining contribution amounts. Amounts shown represent the amounts contained in the FCC Form 499-A database as of October 20, 2005. The universal service administrator continues to receive additional and corrected filings. 1 - 17 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2004 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) $4,217 $606 $4,822 $127 $6 * $134 0 Provided under other arrangements 567 129 696 111 87 * 198 Total Line 303 4,784 735 5,518 238 93 * 332 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 3,484 2,445 5,929 2,528 1,049 2 3,580 0 Provided as unbundled network elements or other contract arrangement 583 408 991 78 20 * 98 Total Line 304 4,067 2,853 6,920 2,606 1,069 2 3,677 305 Local private line & special access 681 9,314 9,995 281 1,179 * 1,461 306 Payphone compensation from toll carriers 81 63 38 182 1 1 1 3 307 Other local telecommunications service revenues 1,478 379 1,858 31 3 34 308 Universal service support revenues received from 936 920 1,855 614 1,758 * 2,372 Federal or state sources Total fixed local service provided for resale 12,026 14,264 38 26,328 3,772 4,104 3 7,879 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 58 58 11 2 14 Total mobile service provided for resale 58 58 11 2 14 Toll service 310 Operator and toll calls with alternative billing 13 * 13 1 * * 1 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 220 * 221 6 2 * 7 toll-free 800/888 etc. service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services 17 2 19 6 5 11 313 Satellite services 314 All other long distance services * 1 1 2 2 * 4 Total toll service provided for resale 250 3 253 15 8 * 23 Total service provided for resale (carrier's carrier) $12,335 $14,267 $38 $26,640 $3,798 $4,114 $3 $7,915 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 18 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECS and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) $121 $154 $3 $278 * * * * 0 Provided under other arrangements 249 17 * 266 Total Line 303 370 171 3 544 * * * * 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 538 414 6 958 * * * * 0 Provided as unbundled network elements or other contract arrangement 233 35 1 269 Total Line 304 771 449 7 1,226 * * * * 305 Local private line & special access 536 484 * 1,021 1 * * 1 306 Payphone compensation from toll carriers 2 1 1 4 40 31 19 89 307 Other local telecommunications service revenues 221 13 * 234 3 1 * 3 308 Universal service support revenues received from 26 9 34 * * * * Federal or state sources Total fixed local service provided for resale 1,926 1,128 11 3,064 43 32 19 94 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 1 * 1 Total mobile service provided for resale 1 * 1 Toll service 310 Operator and toll calls with alternative billing 29 * * 29 1 * * 1 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 97 65 32 194 * * * 1 toll-free 800/888 etc. service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services 157 394 11 562 * * 313 Satellite services 1 81 12 94 314 All other long distance services 24 2 1 27 2 * * 2 Total toll service provided for resale 307 542 56 905 4 1 * 5 Total service provided for resale (carrier's carrier) $2,233 $1,669 $67 $3,970 $47 $32 $19 $99 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 19 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) * * * * * 0 Provided under other arrangements * * * * 1 0.8 2 Total Line 303 * * * * 1 1 2 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 2 3 6 * * * 0 Provided as unbundled network elements or other contract arrangement 58 7 * 64 * * * Total Line 304 60 10 * 70 * * * 305 Local private line & special access 39 * 39 * * 306 Payphone compensation from toll carriers * * * * 307 Other local telecommunications service revenues 1 1 * * 308 Universal service support revenues received from 51 149 200 * * * Federal or state sources Total fixed local service provided for resale 151 159 * 310 2 1 3 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 3,232 706 4 3,941 103 25 * 128 Total mobile service provided for resale 3,232 706 4 3,941 103 25 * 128 Toll service 310 Operator and toll calls with alternative billing 20 2 * 22 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 263 113 1 378 1 * * 1 toll-free 800/888 etc. service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services * * * * 313 Satellite services * 3 3 314 All other long distance services 3 1 * 4 Total toll service provided for resale 286 117 2 404 1 3 * 4 Total service provided for resale (carrier's carrier) $3,668 $982 $5 $4,655 $106 $29 * $135 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 20 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) $71 $21 $3 $95 $4,536 $787 $6 $5,329 0 Provided under other arrangements 10 * 11 939 234 * 1,173 Total Line 303 82 21 3 105 5,475 1,021 6 6,501 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 166 47 15 228 6,719 3,959 23 10,701 0 Provided as unbundled network elements or other contract arrangement 171 52 6 229 1,123 521 7 1,651 Total Line 304 337 99 21 457 7,842 4,480 30 12,352 305 Local private line & special access 50 180 1 230 1,588 11,158 1 12,747 306 Payphone compensation from toll carriers 11 9 5 25 135 105 64 303 307 Other local telecommunications service revenues 23 3 * 27 1,757 400 * 2,157 308 Universal service support revenues received from 22 1 * 24 1,648 2,837 * 4,486 Federal or state sources Total fixed local service provided for resale 525 313 30 868 18,444 20,001 101 38,546 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 16 5 * 21 3,422 739 4 4,164 Total mobile service provided for resale 16 5 * 21 3,422 739 4 4,164 Toll service 310 Operator and toll calls with alternative billing 30 40 123 193 93 43 123 259 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 2,276 4,265 3,900 10,441 2,863 4,446 3,934 11,242 toll-free 800/888 etc. service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services 772 2,029 190 2,991 953 2,429 201 3,583 313 Satellite services 3 30 105 138 4 114 117 235 314 All other long distance services 44 140 163 347 75 146 164 385 Total toll service provided for resale 3,124 6,505 4,482 14,110 3,986 7,177 4,540 15,703 Total service provided for resale (carrier's carrier) $3,665 $6,823 $4,512 $15,000 $25,852 $27,916 $4,645 $58,413 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 21 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2004 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, $38,853 $213 $39,065 $7,305 $21 * $7,326 vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405 Tariffed subscriber line charges and PICC charges 206 8,159 8,365 60 1,851 * 1,912 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 39,059 8,371 47,430 7,365 1,872 * 9,237 406 Local private line and special access service 2,568 4,249 6,816 357 515 * 872 407 Payphone coin revenues (local and long distance) 352 * 353 22 * * 22 408 Other local telecommunications service revenues 350 7 357 83 4 * 87 Line 403 surcharges on fixed local service 1/ 180 1,090 1,270 29 200 229 Total fixed local service provided to end users 42,509 13,717 56,226 7,856 2,591 * 10,448 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 176 8 185 47 9 56 410 Message charges including roaming, but excluding 77 12 89 21 5 26 toll charges Line 403 surcharges on mobile service 1/ 1 2 3 * 1 1 Total mobile service provided to end users 255 23 277 68 15 83 Toll service 411 Prepaid calling card (including card sales to 1 * 1 * 1 1 1 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in foreign points 413 Operator and toll calls with alternative billing 147 1 148 6 1 * 7 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 2,266 89 2,355 226 37 2 265 toll-free 800/888 etc. service, "10-10" calls, associated monthly account maintenance, PICC pass-through, an other switched services not reported above) 415 Long distance private line services 985 1 986 73 6 * 79 416 Satellite services * * 417 All other long distance services 35 * 36 8 1 * 10 Line 403 surcharges on toll service 1/ 7 8 15 2 3 * 4 Total toll service provided to end users 3,441 99 3,541 315 48 3 366 Total telecommunications service provided to $46,205 $13,839 $60,044 $8,239 $2,654 $3 $10,897 end users 422 Uncollectible revenue/bad debt expense associated 915 139 1,054 94 20 * 114 with end user revenues other than Line 412 423 Net universal service contribution base revenues $45,290 $13,700 $58,990 $8,145 $2,635 $3 $10,783 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 22 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECS and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, $6,044 $147 $18 $6,210 * * * * vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405 Tariffed subscriber line charges and PICC charges 8 948 * 957 * * * levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 6,053 1,095 18 7,166 * * * * 406 Local private line and special access service 1,128 1,829 5 2,962 3 * 4 407 Payphone coin revenues (local and long distance) 5 2 * 7 246 14 1 260 408 Other local telecommunications service revenues 254 27 23 304 4 * * 4 Line 403 surcharges on fixed local service 1/ 33 229 2 264 * * * Total fixed local service provided to end users 7,473 3,183 48 10,704 253 15 1 268 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 10 3 * 13 410 Message charges including roaming, but excluding 1 1 2 toll charges Line 403 surcharges on mobile service 1/ * * * Total mobile service provided to end users 12 3 * 15 Toll service 411 Prepaid calling card (including card sales to 1 1 21 23 * * * * customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in * * foreign points 413 Operator and toll calls with alternative billing 35 28 1 64 55 12 * 67 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 671 757 207 1,635 9 1 * 10 toll-free 800/888 etc. service, "10-10" calls, associated monthly account maintenance, PICC pass-through, an other switched services not reported above) 415 Long distance private line services 191 267 43 501 * * 416 Satellite services 13 31 6 50 417 All other long distance services 39 18 6 63 * * * * Line 403 surcharges on toll service 1/ 4 94 4 102 * * * Total toll service provided to end users 953 1,195 289 2,437 64 13 * 78 Total telecommunications service provided to $8,438 $4,381 $337 $13,156 $318 $28 $1 $346 end users 422 Uncollectible revenue/bad debt expense associated 243 81 10 333 2 1 * 2 with end user revenues other than Line 412 423 Net universal service contribution base revenues $8,195 $4,300 $328 $12,823 $316 $27 $1 $344 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 23 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, $77 * * $77 $14 * * $14 vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405 Tariffed subscriber line charges and PICC charges 4 4 * 1 1 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 77 4 * 81 14 1 * 15 406 Local private line and special access service 16 * 17 38 * 38 407 Payphone coin revenues (local and long distance) * * * * * * 408 Other local telecommunications service revenues 2 2 14 1 15 Line 403 surcharges on fixed local service 1/ * * * * * * Total fixed local service provided to end users 96 4 * 100 66 3 * 69 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 56,282 15,377 136 71,795 680 88 * 768 410 Message charges including roaming, but excluding 14,492 4,308 28 18,829 59 32 1 92 toll charges Line 403 surcharges on mobile service 1/ 342 1,742 * 2,084 2 19 * 21 Total mobile service provided to end users 71,116 21,428 164 92,708 740 140 1 881 Toll service 411 Prepaid calling card (including card sales to 7 1 2 10 * * * * customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 5 5 * * foreign points 413 Operator and toll calls with alternative billing 27 9 * 37 * * * arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 526 183 12 721 14 4 * 18 toll-free 800/888 etc. service, "10-10" calls, associated monthly account maintenance, PICC pass-through, an other switched services not reported above) 415 Long distance private line services 25 13 1 39 * 30 30 416 Satellite services 3 3 417 All other long distance services 5 15 2 23 * * * * Line 403 surcharges on toll service 1/ 10 21 * 32 * * * * Total toll service provided to end users 600 243 22 866 15 37 * 52 Total telecommunications service provided to $71,812 $21,675 $187 $93,674 $821 $179 $1 $1,001 end users 422 Uncollectible revenue/bad debt expense associated 1,482 423 3 1,909 8 1 * 9 with end user revenues other than Line 412 423 Net universal service contribution base revenues $70,330 $21,252 $178 $91,760 $814 $178 $1 $992 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 24 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, $4,491 $60 $8 $4,558 $56,785 $441 $26 $57,251 vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405 Tariffed subscriber line charges and PICC charges 58 419 * 477 333 11,382 * 11,715 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 4,549 479 8 5,036 57,117 11,822 26 68,966 406 Local private line and special access service 74 304 7 385 4,184 6,897 12 11,093 407 Payphone coin revenues (local and long distance) 30 25 1 56 655 42 1 699 408 Other local telecommunications service revenues 14 3 * 18 721 42 23 787 Line 403 surcharges on fixed local service 1/ 20 77 * 98 263 1,597 2 1,862 Total fixed local service provided to end users 4,688 889 15 5,592 62,941 20,402 64 83,407 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 316 46 5 367 57,512 15,531 141 73,183 410 Message charges including roaming, but excluding 53 11 1 65 14,703 4,369 30 19,103 toll charges Line 403 surcharges on mobile service 1/ 2 6 * 8 347 1,771 * 2,118 Total mobile service provided to end users 371 62 6 439 72,562 21,670 171 94,404 Toll service 411 Prepaid calling card (including card sales to 354 402 2,507 3,263 363 405 2,531 3,299 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 639 639 644 644 foreign points 413 Operator and toll calls with alternative billing 739 835 443 2,018 1,009 886 445 2,341 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 9,586 15,673 4,884 30,142 13,297 16,742 5,106 35,145 toll-free 800/888 etc. service, "10-10" calls, associated monthly account maintenance, PICC pass-through, an other switched services not reported above) 415 Long distance private line services 1,370 6,249 1,070 8,689 2,644 6,566 1,114 10,323 416 Satellite services 7 96 154 257 20 129 160 310 417 All other long distance services 233 386 122 742 321 420 131 872 Line 403 surcharges on toll service 1/ 85 2,211 127 2,423 108 2,338 132 2,577 Total toll service provided to end users 12,373 25,852 9,947 48,173 17,762 27,487 10,262 55,511 Total telecommunications service provided to $17,432 $26,803 $9,969 $54,204 $153,265 $69,559 $10,498 $233,322 end users 422 Uncollectible revenue/bad debt expense associated 723 707 268 1,698 3,467 1,371 281 5,119 with end user revenues other than Line 412 423 Net universal service contribution base revenues $16,709 $26,096 $9,062 $51,867 $149,798 $68,187 $9,573 $227,558 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 25 Table 1.7 Total Revenues: 2004 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $54,102 $27,918 $82,020 $11,605 $6,694 $3 $18,301 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 433 63 38 534 23 1 1 25 [Lines 306 and 407] Mobile service 313 23 336 79 18 97 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 3,692 102 3,793 330 56 3 389 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 58,540 28,106 38 86,684 12,037 6,769 6 18,812 Total telecommunications service provided for resale 12,335 14,267 38 26,640 3,798 4,114 3 7,915 (from Table 5) Total telecommunications service provided to 46,205 13,839 60,044 8,239 2,654 3 10,897 end users (from Table 6) Total telecommunications service revenues 58,540 28,106 38 86,684 12,037 6,769 6 18,812 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 12,725 - - - - - - - - - 2,641 and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 419 Gross billed revenues from all sources - - - - - - - - - $99,409 - - - - - - - - - $21,454 421 Uncollectible revenue/bad debt expense associated $827 $178 with gross billed revenues Total collected revenues from all sources $98,582 $21,275 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 26 Table 1.7 Total Revenues: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECS and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $9,392 $4,307 $58 $13,757 $12 $1 * $13 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 7 4 1 11 285 45 19 349 [Lines 306 and 407] Mobile service 13 4 * 16 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 1,260 1,736 345 3,342 68 14 1 82 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 10,671 6,050 404 17,126 365 60 20 445 Total telecommunications service provided for resale 2,233 1,669 67 3,970 47 32 19 99 (from Table 5) Total telecommunications service provided to 8,438 4,381 337 13,156 318 28 1 346 end users (from Table 6) Total telecommunications service revenues 10,671 6,050 404 17,126 365 60 20 445 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 10,704 - - - - - - - - - 426 and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 419 Gross billed revenues from all sources - - - - - - - - - $27,829 - - - - - - - - - $871 421 Uncollectible revenue/bad debt expense associated $479 $5 with gross billed revenues Total collected revenues from all sources $27,351 $866 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 27 Table 1.7 Total Revenues: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $246 $164 * $410 $68 $3 * $71 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone * * * * * * * [Lines 306 and 407] Mobile service 74,348 22,133 168 96,649 844 165 1 1,009 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 886 360 24 1,270 15 40 1 55 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 75,480 22,657 192 98,329 927 208 2 1,136 Total telecommunications service provided for resale 3,668 982 5 4,655 106 29 * 135 (from Table 5) Total telecommunications service provided to 71,812 21,675 187 93,674 821 179 1 1,001 end users (from Table 6) Total telecommunications service revenues 75,480 22,657 192 98,329 927 208 2 1,136 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 25,858 - - - - - - - - - 1,947 and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 419 Gross billed revenues from all sources - - - - - - - - - $124,187 - - - - - - - - - $3,083 421 Uncollectible revenue/bad debt expense associated $2,307 $14 with gross billed revenues Total collected revenues from all sources $121,880 $3,070 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 28 Table 1.7 Total Revenues: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $5,171 $1,168 $40 $6,378 $80,595 $40,255 $100 $120,951 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 42 34 6 82 790 147 65 1,002 [Lines 306 and 407] Mobile service 387 67 6 460 75,984 22,409 175 98,568 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 15,498 32,357 14,429 62,283 21,748 34,664 14,802 71,214 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 21,097 33,626 14,481 69,204 179,117 97,475 15,143 291,734 Total telecommunications service provided for resale 3,665 6,823 4,512 15,000 25,852 27,916 4,645 58,413 (from Table 5) Total telecommunications service provided to 17,432 26,803 9,969 54,204 153,265 69,559 10,498 233,322 end users (from Table 6) Total telecommunications service revenues 21,097 33,626 14,481 69,204 179,117 97,475 15,143 291,734 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 17,192 - - - - - - - - - 71,493 and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 419 Gross billed revenues from all sources - - - - - - - - - $86,395 - - - - - - - - - $363,227 421 Uncollectible revenue/bad debt expense associated $2,132 $5,941 with gross billed revenues Total collected revenues from all sources $84,263 $357,286 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 29 Table 1.8 Revenues by Type of Carrier 1/: 2004 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Telecommunications Services Telecommunications Services Provided for Resale 2/ Provided to End Users 2/ Fixed Mobile Toll Total Fixed Mobile Toll Total Local Local Regional Bell Operating Companies $26,328 $58 $253 $26,640 $56,226 $277 $3,540 $60,044 Other Incumbent Local Exchange Carriers (ILECs) 7,879 14 23 7,915 10,447 83 366 10,897 Total ILECs 34,207 72 276 34,555 66,674 361 3,906 70,941 Competitive Access Providers (CAPs) and Competitiv 2,718 1 660 3,379 9,644 12 2,077 11,733 Local Exchange Carriers (CLECs) Local Resellers 116 6 122 931 * 162 1,093 Private Service Providers 46 * 211 257 83 3 190 275 Shared-Tenant Service Providers 2 * 2 14 * 6 20 Other Local Service Providers 182 29 211 32 * 2 34 Total Local Competitors 3,064 1 905 3,970 10,704 15 2,437 13,156 Fixed Local Service Providers 37,271 73 1,181 38,525 77,378 376 6,343 84,097 Wireless Telephony Including Cellular, Personal 310 3,941 404 4,655 100 92,708 866 93,673 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers * 123 4 127 4 725 16 745 Specialized Mobile Radio (SMR) Dispatch * 1 * 1 * 44 * 44 Wireless Data and Other Mobile Service Providers 2 5 7 64 112 35 211 Wireless Service Providers 313 4,070 408 4,790 169 93,589 917 94,675 Interexchange Carriers (IXCs) 777 8 11,074 11,859 4,917 284 34,528 39,729 Operator Service Providers (OSPs) 1 26 28 2 493 495 Prepaid Calling Card Providers 3 1 119 123 59 32 1,421 1,512 Satellite Service Providers 1 5 140 145 155 14 407 576 Toll Resellers 37 7 1,928 1,973 438 109 9,673 10,220 , , All Filers $38,546 $4,164 $15,703 $58,413 $83,407 $94,404 $55,511 $233,321 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ 2/ Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as All Distance or Coaxial Cable Service Providers have been re-categorized for the purpose of creating summary statistics Telecommunications service provided for resale consists of services provided to other contributors to federal universal service support mechanisms for resale. Revenues from services provided to firms that are de minimis under or exempt from federal universal service support mechanisms are reported as end-user service and are subject to contribution requirements. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 1 - 30 Table 1.8 Revenues by Type of Carrier 1/: 2004 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Universal Telecommunications Service Revenues Other Total Service Revenues Contribution Intrastate Interstate International Other Total 4/ Base Revenues to International 2/ 3/ International Regional Bell Operating Companies $13,700 $58,540 $28,106 $38 $86,684 $12,725 $99,409 Other Incumbent Local Exchange Carriers (ILECs) 2,638 12,037 6,769 6 18,812 2,641 21,453 Total ILECs 16,338 70,577 34,875 44 105,496 15,367 120,862 Competitive Access Providers (CAPs) and 4,150 9,410 5,403 * 299 15,112 5,037 20,149 Competitive Local Exchange Carriers (CLECs) Local Resellers 249 930 265 * 20 1,215 218 1,433 Private Service Providers 202 109 340 * 83 532 5,048 5,580 Shared-Tenant Service Providers 4 17 3 2 22 43 65 Other Local Service Providers 23 205 39 1 245 357 602 Total Local Competitors 4,628 10,671 6,050 * 404 17,126 10,704 27,829 Fixed Local Service Providers 20,966 81,248 40,925 * 449 122,622 26,070 148,692 Wireless Telephony Including Cellular, Personal 21,430 75,480 22,657 5 187 98,329 25,858 124,187 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 108 735 137 * 872 343 1,215 Specialized Mobile Radio (SMR) Dispatch 1 44 1 * 46 80 126 Wireless Data and Other Mobile Service Providers 70 147 70 * 1 218 1,524 1,742 Wireless Service Providers 21,609 76,407 22,864 5 188 99,465 27,805 127,270 Interexchange Carriers (IXCs) 26,007 15,752 27,314 463 8,060 51,589 12,888 64,477 Operator Service Providers (OSPs) 131 348 152 4 19 523 151 674 Prepaid Calling Card Providers 1,167 239 160 36 1,200 1,635 127 1,762 Satellite Service Providers 297 221 195 59 245 721 700 1,422 Toll Resellers 6,064 4,204 5,474 56 2,458 12,192 2,728 14,920 , , , , All Filers $77,760 $179,117 $97,475 $644 $14,498 $291,734 $71,493 $363,227 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ 2/ 3/ 4/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). Carriers report non-telecommunications service revenues on Line 418. This category includes enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet, foreign carrier and other non-U.S. telecommunications service revenues. Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as All Distance or Coaxial Cable Service Providers have been re-categorized for the purpose of creating summary statistics Telecommunications service provided for resale consists of services provided to other contributors to federal universal service support mechanisms for resale. Revenues from services provided to firms that are de minimis under or exempt from federal universal service support mechanisms are reported as end-user service and are subject to contribution requirements. Universal service contribution base revenues consist of all interstate and international end-user telecommunications revenues except for international-to-international revenues reported on Line 412. The totals include revenues from filers who are de minimis or otherwise exempt from contributing. This table also includes international revenues that were exempt from contribution because of the 12 percent rule. See Table 1.4 for details on exempt amounts. Contribution base amounts reported as uncollectible on Line 422 have been removed. 1 - 31 Data from FCC Form 499-Q Projected Revenues for 2004 1/ Regional Bell Operating Companies $13,998 $13,676 2.3 % $27,083 $57,837 $84,920 $14,000 Other Incumbent Local Exchange 2,687 2,648 1.5 7,871 10,872 18,744 2,736 Carriers (ILECs) Total ILECs 16,685 16,323 2.2 34,954 68,709 103,664 16,736 Competitive Access Providers 4,465 4,361 2.3 3,185 11,744 14,929 4,441 (CAPs) and Competitive Local Exchange Carriers (CLECs) Local Resellers 260 248 4.7 177 1,529 1,706 270 Private Service Providers 208 202 3.0 166 239 405 196 Shared-Tenant Service Providers 5 4 10.8 0 18 18 4 Other Local Service Providers 27 26 5.5 179 270 449 38 Total Local Competitors 4,966 4,841 2.5 3,709 13,800 17,508 4,949 Fixed Local Service Providers 21,650 21,164 2.2 38,663 82,509 121,172 21,685 Payphone Service Providers 28 26 4.7 71 262 332 23 Wireless Telephony Including Cellular, 23,901 23,414 2.0 6,489 99,829 106,318 22,965 Personal Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 96 91 4.5 86 489 575 65 Specialized Mobile Radio (SMR) Dispatch 60 58 2.1 1 213 214 57 Wireless Data and Other Mobile Service 116 115 0.9 28 338 365 115 Providers Wireless Service Providers 24,172 23,679 2.0 6,604 100,869 107,473 23,202 Interexchange Carriers (IXCs) 21,697 21,162 2.5 11,228 33,307 44,535 22,923 Operator Service Providers (OSPs) 924 871 5.8 346 791 1,136 383 Prepaid Calling Card Providers 1,107 1,025 7.4 142 1,453 1,595 1,235 Satellite Service Providers 199 196 1.4 107 412 520 165 Toll Resellers 7,199 6,870 4.6 1,991 11,355 13,346 7,193 Other Toll Carriers 294 278 5.5 2,147 484 2,630 326 Toll Service Providers 31,421 30,401 3.2 15,961 47,801 63,762 32,225 All Filers $77,271 $75,271 4/ 2.6 % $61,298 $231,441 $292,739 $77,135 See notes on next page. Intrastate, interstate and International Historic Revenues Reported for 2004 1/ Billed to Resellers 2/ Implied Uncollectible Rate 3/ Interstate and International Billed to End Users 2/ Total Revenue 2/ Billed to End Users 2/ Interstate and International ($millions) Billed to End Users 2/ Collected from End Users 2/ 3/ ($millions) ($millions) Table 1.9 Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2004 (Dollar Amounts Shown in Millions) ($millions) ($millions) ($millions) 1 - 32 Notes for Table 1.9 1/ 2/ 3/ 4/ ($millions) First Quarter $18,351.9 Second Quarter $18,331.6 Third Quarter $18,370.2 Fourth Quarter $17,869.7 Total 2004 Contribution Base $72,923.4 Data filed on FCC Forms 499-Q and 499-A Worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006) available at http://www.fcc.gov/wcb/stats. Note: Amounts may not add to totals due to rounding. Each quarter, telecommunications providers that are required to contribute to universal service support mechanisms must to file an FCC Form 499-Q. The FCC Form 499-Q collects total, interstate and international billed revenues for the most recently completed calendar quarter (historic revenues) and also collects projected interstate and international -- but not total -- revenues for the upcomming calendar quarter (projected revenues.) Some telecommunications providers file the form even though they are not required to contribute. USAC estimates revenues for most non-filers. Filers contribute based on the interstate and international telecommunications revenues that they collect from end-users. On the FCC Form 499-Q, filers project the amount of contribution base they expect to bill in the upcomming quarter and then project the amount of contribution base revenues that they expect to collect. The difference between projected billed revenues and projected collected revenues is amount of revenue that the filer expects to be uncollectible (the implied uncollectible rate). Filers contribute in a quarter based on the end user revenues that they project collecting in that quarter. Filers report actual billings and uncollectibles in their April 1 FCC Form 499-A filings. This information is used to true-up contributions, and provides more accurate information on billings and collections for the year. FCC Form 499-A data for 2005 is not yet available for publication. The FCC Form 499-Q collects historic revenues divided into three categories: telecommunications service provided for resale (carrier's carrier); telecommunications service provided to end-users (end user); and other revenues. Telecommunications providers that contribute directly to federal universal service support mechanisms are referred to as "contributors". Telecommunications provided for resale refers to contributors provided to contributors for resale as. Underlying carriers do not contribute based on these revenues. Revenues from services provided to firms that are de minimis or otherwise exempt from federal universal service support mechanisms are reported as end-user service. The other revenue filing category consists of international-to-international revenues and revenues from goods and services that are not classified as U.S. telecommunications. International-to-international service refers to calls that originate in a foreign point, traverse the United States, and terminate in a foreign point. These revenues, which are exempt from universal service contribution, are reported in a separate end-user telecommunications revenue category in the FCC Fo Sources: The amounts actually used to calculate contribution factors in 2005 are shown below. These amounts total less than the total projected collected revenues shown in the table. One reason is that amounts in the table reflect all amounts shown in the FCC Form 499-Q data base, including estimated amounts for non-filers and amounts reported by filers that are de minimis or do not contribute because they provide only international services. In addition, filers are not required to contribute on international revenues if their interstate end-user revenues represent less than 12% of their combined interstate and international end-user revenues -- a test referred to as the "12%" rule. In addition, the totals shown above include estimated amounts for some carriers. Finally, some difference may be explained by late filings and corrections made to the data base after the Commission calculated contribution factors. Contribution bases used to calculate Factors in Calendar 2005 1 - 33 Universal Service Program Requirements and Contribution Factors for 2005 (Dollar Amounts Shown in Millions) First Second Third Fourth Full Quarter Quarter Quarter Quarter Year All Support Mechanisms Projections of demand and administrative expenses at the time the contribution factors were adopted High Cost High-Cost Loop Support $319.016 $323.938 $324.922 $324.937 $1,292.813 Local Switching Support $116.055 $117.617 $118.841 $118.924 $471.437 Interstate Common Line Support $282.172 $287.403 $311.937 $315.034 $1,196.546 Interstate Access Support Mechanism $186.484 $190.748 $190.622 $179.823 $747.677 Forward-Looking High Cost Mechanism $73.181 $72.827 $72.572 $74.165 $292.745 Prior Period True-ups $15.057 $12.496 -$71.382 -$112.494 -$156.323 Administrative expenses 1 $10.317 $10.931 $11.441 -$8.701 $23.988 Interest income 2 -$0.341 -$0.822 -$0.842 -$2.419 -$4.424 Program Total $1,001.941 $1,015.138 $958.111 $889.269 $3,864.459 Low Income Lifeline Assistance $183.394 $183.162 $193.421 $193.063 $753.040 Link-Up $8.541 $9.064 $9.048 $8.832 $35.485 Incremental Toll Limitation $1.294 $1.386 $1.515 $1.462 $5.657 Prior Period true-ups $0.532 $12.288 $1.251 $0.294 $14.365 Administrative expenses 1 $2.193 $2.206 $2.299 -$0.752 $5.946 Interest income 2 -$0.063 -$0.290 -$0.389 -$0.544 -$1.286 Program Total $195.891 $207.816 $207.145 $202.355 $813.207 Rural Health Rural Health Care Support $11.248 $4.344 $4.419 $11.638 $31.649 Prior Period True-ups -$0.473 $0.822 -$1.047 -$0.710 -$1.408 Administrative expenses 1 $1.084 $1.012 $1.048 $0.411 $3.555 Interest income 2 -$0.026 -$0.084 -$0.127 -$0.363 -$0.600 Program Total $11.833 $6.094 $4.293 $10.976 $33.196 Schools and Libraries Schools and Libraries Support $546.903 $544.068 $542.386 $562.500 $2,195.857 Prior Period True-ups 3 -$10.806 $26.564 -$35.072 -$2.320 -$21.634 Administrative expenses 1 $15.597 $18.432 $20.114 $7.069 $61.212 Interest income 2 -$3.829 -$11.609 -$18.320 -$29.857 -$63.615 Program Total $547.865 $577.455 $509.108 $537.392 $2,171.820 Grand Total $1,757.530 $1,806.503 $1,678.657 $1,639.992 $6,882.682 Applicable interstate and international end-user revenues Reported contribution base revenues $18,351.876 $18,331.555 $18,370.223 $17,869.740 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,757.529 -$1,806.503 -$1,678.657 -$1,632.923 Subtotal $16,594.347 $16,525.052 $16,691.566 $16,236.817 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $16,428.404 $16,359.801 $16,524.650 $16,074.449 Contribution factor 10.6981% 11.1% 10.2% 10.2% Contribution factor times contribution base $1,757.527 $1,815.938 $1,685.514 $1,639.594 2 Interest income is shown as negative because it is subtracted from expenses to yield the total. 3 For the schools and libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods. Table 1.10 1 The fourth quarter administrative expenses are significantly lower (and in some cases negative) than administrative expenses in other quarters because the costs for the Universal Service Fund (USF) oversight audit program to be conducted in coordination with the FCC Office of Inspector General are lower than was anticipated. Consequently, the 4Q2005 USAC budget reflects a significant reduction in administrative expenses. See Universal Service Administrative Company Federal Universal Service Support Mechanisms Fund Size Projections for the Fourth Quarter 2005, page 3. 1 - 34 Universal Service Program Requirements and Contribution Factors for 2006 (Dollar Amounts Shown in Millions) First Second Third Fourth Full Quarter Quarter Quarter Quarter Year All Support Mechanisms Projections of demand and administrative expenses at the time the contribution factors were adopted High Cost High Cost Loop Support $336.072 $339.273 $340.886 Local Switching Support $120.755 $121.215 $121.873 Interstate Common Line Support $312.688 $322.958 $311.457 Interstate Access Support Mechanism $181.318 $180.892 $174.352 Forward-Looking High Cost Mechanism $77.375 $88.127 $84.624 Prior Period True-ups -$81.418 -$15.423 -$15.119 Administrative expenses $5.254 $5.082 $5.280 Interest income 1 -$3.343 -$4.305 -$3.284 Program Total $948.701 $1,037.819 $1,020.069 Low Income Lifeline Assistance $196.927 $193.488 $198.346 Link-Up $9.868 $8.860 $8.767 Incremental Toll Limitation $1.746 $1.717 $2.002 Hurricane Katrina Relief $29.700 $14.100 $0.000 Prior Period true-ups -$4.117 -$4.152 -$10.760 Administrative expenses $1.289 $1.215 $1.239 Interest income 1 -$0.752 -$1.112 -$1.122 Program Total $234.661 $214.116 $198.472 Rural Health Rural Health Care Support $7.834 $12.413 $7.292 Prior Period True-ups -$0.642 $0.716 $1.826 Administrative expenses $1.164 $1.676 $0.946 Interest income 1 -$0.502 -$0.403 -$0.403 Program Total $7.854 $14.402 $9.661 Schools & Libraries Schools and Libraries Support $562.500 $562.500 $562.500 Prior Period True-ups 2 -$23.242 -$14.513 $6.540 Administrative expenses $16.486 $16.053 $16.299 Interest income 1 -$41.262 -$40.515 -$34.706 Program Total $514.482 $523.525 $550.633 Grand Total $1,705.698 $1,789.862 $1,778.835 Applicable interstate and international end-user revenues Reported contribution base revenues $18,450.881 $18,317.957 $18,773.679 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,689.212 -$1,773.809 $1,762.536 Subtotal $16,761.669 $16,544.148 $20,536.215 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $16,594.052 $16,378.707 $20,330.853 Contribution factor 10.2% 10.9% 10.5% Contribution factor times contribution base $1,692.593 $1,785.279 $2,134.740 1 Interest income is shown as negative because it is subtracted from expenses to yield the total. 2 For the schools & libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods. Table 1.10 1 - 35 Mechanism Percent of Total High-Cost Support $3,824 58.7 % High-Cost Loop Support 1,219 18.7 Safety Net Additive Support 15 0.2 Safety-Valve 4 0.1 High-Cost Model Support 292 4.5 Long-Term Support 0 0.0 Interstate Common Line Support 1,178 18.1 Interstate Access Support 691 10.6 Local Switching Support 425 6.5 Low-Income Support 809 12.4 School and Libraries 1,862 28.6 Rural Health Care 26 0.4 All Universal Service Support $6,520 100.0 % Distribution of Universal Service Payments: 2005 Chart 19.1 Notes: Figures may not add due to rounding. The figures used in this table are for the calendar year and include disbursements that were committed over several years but paid out in calendar year 2005. In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. Source: Universal Service Administration Company (USAC). Table 1.11 Universal Service Support Mechanisms: 2005 (Dollars in Millions) Disbursements Low Income 12.4% High Cost 58.7% Rural Health Care 0.4% Schools & Libraries 28.6% 1 - 36 (Annual Payments and Contributions in Thousands) Payments from USF to Service Providers 1 State or Jurisdiction High-Cost Support Low-Income Support Schools & Libraries Rural Health Care Amount % of Total Amount % of Total Alabama $109,343 $3,224 $28,023 $19 $140,609 2.16% $95,271 1.44% $45,338 Alaska 120,274 7,374 15,909 14,949 158,506 2.43% 22,070 0.33% 136,435 American Samoa 2,318 60 2,421 0 4,799 0.07% 184 0.00% 4,614 Arizona 74,550 20,310 36,008 675 131,543 2.02% 125,949 1.91% 5,595 Arkansas 140,997 2,369 15,662 120 159,148 2.44% 58,606 0.89% 100,542 California 98,866 304,668 220,789 456 624,779 9.58% 716,580 10.85% -91,802 Colorado 79,277 3,514 11,256 120 94,167 1.44% 121,551 1.84% -27,384 Connecticut 2,249 5,315 19,307 0 26,871 0.41% 100,797 1.53% -73,926 Delaware 259 277 377 0 913 0.01% 24,842 0.38% -23,929 Dist. of Columbia 0 893 10,840 0 11,733 0.18% 31,241 0.47% -19,508 Florida 91,450 17,761 53,437 107 162,755 2.50% 474,550 7.18% -311,795 Georgia 111,693 8,282 50,126 114 170,215 2.61% 212,680 3.22% -42,465 Guam 19,165 421 3,093 0 22,679 0.35% 3,402 0.05% 19,278 Hawaii 29,525 694 1,812 277 32,308 0.50% 28,039 0.42% 4,268 Idaho 55,055 3,923 2,797 153 61,928 0.95% 32,363 0.49% 29,565 Illinois 63,506 9,291 73,442 196 146,435 2.25% 267,388 4.05% -120,953 Indiana 56,632 5,716 12,516 112 74,976 1.15% 122,711 1.86% -47,734 Iowa 90,336 6,198 10,042 186 106,762 1.64% 60,490 0.92% 46,272 Kansas 178,684 3,149 10,545 290 192,668 2.96% 58,672 0.89% 133,996 Kentucky 83,600 7,537 26,481 720 118,338 1.81% 80,627 1.22% 37,711 Louisiana 111,241 2,414 41,487 5 155,147 2.38% 90,833 1.38% 64,314 Maine 28,812 8,795 9,099 49 46,755 0.72% 29,995 0.45% 16,760 Maryland 4,327 502 12,644 0 17,473 0.27% 147,285 2.23% -129,813 Massachusetts 3,634 14,270 20,954 0 38,858 0.60% 157,471 2.38% -118,613 Michigan 53,575 11,425 34,722 694 100,416 1.54% 187,795 2.84% -87,380 Minnesota 113,352 5,993 19,911 845 140,101 2.15% 106,743 1.62% 33,358 Mississippi 209,251 3,619 29,364 133 242,367 3.72% 58,511 0.89% 183,855 Missouri 85,146 5,396 36,291 118 126,951 1.95% 126,036 1.91% 915 Montana 76,731 2,631 3,807 542 83,711 1.28% 23,456 0.36% 60,255 Nebraska 55,890 2,406 6,254 746 65,296 1.00% 37,675 0.57% 27,620 Nevada 29,639 4,075 3,166 36 36,916 0.57% 68,888 1.04% -31,972 New Hampshire 8,732 632 1,736 2 11,102 0.17% 34,363 0.52% -23,261 New Jersey 1,332 14,530 39,404 0 55,266 0.85% 246,120 3.73% -190,854 New Mexico 58,511 10,655 17,819 293 87,278 1.34% 45,014 0.68% 42,264 New York 51,833 52,544 298,250 6 402,633 6.18% 406,561 6.15% -3,928 North Carolina 80,179 14,504 36,946 149 131,778 2.02% 200,447 3.03% -68,669 North Dakota 62,718 3,804 2,956 503 69,981 1.07% 14,669 0.22% 55,312 Northern Mariana Is. 668 85 1,364 0 2,117 0.03% 1,056 0.02% 1,061 Ohio 37,754 35,022 57,444 45 130,265 2.00% 224,776 3.40% -94,511 Oklahoma 120,188 32,358 44,003 129 196,678 3.02% 74,099 1.12% 122,579 Oregon 68,469 7,307 11,394 22 87,192 1.34% 82,192 1.24% 5,000 Pennsylvania 65,504 19,156 67,149 75 151,884 2.33% 276,859 4.19% -124,976 Puerto Rico 133,786 13,286 2,966 0 150,038 2.30% 52,930 0.80% 97,107 Rhode Island 44 4,622 6,925 0 11,591 0.18% 22,577 0.34% -10,986 South Carolina 76,322 2,869 27,579 41 106,811 1.64% 95,834 1.45% 10,978 South Dakota 77,788 7,280 5,434 469 90,971 1.40% 15,846 0.24% 75,125 Tennessee 54,684 6,141 59,517 61 120,403 1.85% 125,508 1.90% -5,105 Texas 230,017 72,330 274,218 132 576,697 8.84% 434,538 6.58% 142,159 Utah 23,579 2,927 7,542 363 34,411 0.53% 49,090 0.74% -14,678 Vermont 35,244 2,842 1,236 20 39,342 0.60% 16,024 0.24% 23,318 Virgin Islands 22,618 158 3,976 102 26,854 0.41% 6,739 0.10% 20,115 Virginia 87,312 2,257 25,263 299 115,131 1.77% 193,412 2.93% -78,280 Washington 94,387 19,823 16,679 64 130,953 2.01% 145,534 2.20% -14,581 West Virginia 66,318 710 7,658 91 74,777 1.15% 42,624 0.65% 32,153 Wisconsin 130,225 8,829 21,021 940 161,015 2.47% 111,194 1.68% 49,821 Wyoming 56,598 1,395 684 100 58,777 0.90% 14,719 0.22% 44,058 Total $3,824,186 $808,568 $1,861,745 $25,568 $6,520,067 100.00% $6,605,426 100.00% -$85,359 2 Estimated contributions include administrative cost of approximately $85 million, as shown in USAC's Annual Report. Allocation of contributions among states is an FCC staff estimate. 3 Net dollar flow is positive when payments from USF to carriers exceed contributions to USF. Total is negative because of administrative expenses. 1 Data from USAC Annual Report Table 1.12 Universal Service Support Mechanisms by State: 2005 Estimated Net Dollar Flow 3 Notes: Figures may not add due to rounding. Support payments do not include quarterly true-ups. USF is an abbreviation for the Universal Service Fund. Estimated Contributions 2 Total 1 - 37 Rev. 1/25/2007 Table 1.13 Total Telecommunications Revenues: 2004 (Dollars in Millions) End User Carrier's Carrier Total: End User + Carrier's Carrier Percent Interstate Intrastate Total Interstate Intrastate Total Interstate Intrastate Total of Total Alabama $1,155 $2,327 $3,481 $466 $371 $837 $1,621 $2,697 $4,318 1.48 % Alaska 267 383 650 109 65 173 376 447 823 0.28 American Samoa 2 10 12 1 2 3 3 12 15 0.01 Arizona 1,526 2,487 4,014 586 374 960 2,112 2,861 4,974 1.70 Arkansas 710 1,353 2,063 299 230 529 1,010 1,582 2,592 0.89 California 8,685 18,708 27,393 3,448 3,462 6,910 12,133 22,170 34,303 11.76 Colorado 1,473 2,484 3,957 626 401 1,027 2,099 2,885 4,984 1.71 Connecticut 1,222 1,869 3,090 503 227 730 1,724 2,096 3,821 1.31 Delaware 301 468 770 121 56 177 422 524 946 0.32 Dist. of Columbia 379 625 1,004 207 85 292 585 710 1,296 0.44 Florida 5,751 10,221 15,973 2,257 1,772 4,030 8,009 11,994 20,003 6.86 Georgia 2,578 4,937 7,515 1,179 722 1,901 3,757 5,659 9,415 3.23 Guam 41 62 103 17 10 27 58 72 130 0.04 Hawaii 340 631 970 129 96 225 469 726 1,196 0.41 Idaho 392 564 957 171 96 266 563 660 1,223 0.42 Illinois 3,241 6,414 9,654 1,199 955 2,154 4,440 7,369 11,809 4.05 Indiana 1,487 2,761 4,248 556 494 1,050 2,043 3,254 5,298 1.82 Iowa 733 1,268 2,001 300 257 558 1,033 1,525 2,559 0.88 Kansas 711 1,238 1,949 304 183 487 1,015 1,421 2,436 0.84 Kentucky 977 1,930 2,907 397 330 727 1,374 2,260 3,634 1.25 Louisiana 1,101 2,398 3,499 423 356 779 1,524 2,754 4,278 1.47 Maine 364 718 1,081 165 106 271 529 824 1,353 0.46 Maryland 1,785 3,178 4,963 712 488 1,200 2,497 3,666 6,163 2.11 Massachusetts 1,909 3,724 5,633 778 487 1,265 2,687 4,211 6,897 2.36 Michigan 2,276 4,926 7,203 834 861 1,695 3,110 5,787 8,897 3.05 Minnesota 1,294 2,368 3,662 542 374 916 1,836 2,742 4,578 1.57 Mississippi 709 1,542 2,251 292 225 517 1,001 1,767 2,768 0.95 Missouri 1,528 2,781 4,309 640 573 1,213 2,168 3,354 5,522 1.89 Montana 284 409 694 116 88 203 400 497 897 0.31 Nebraska 457 903 1,360 211 173 384 667 1,076 1,744 0.60 Nevada 835 1,056 1,891 322 136 457 1,157 1,192 2,348 0.80 New Hampshire 416 673 1,090 166 106 272 583 779 1,362 0.47 New Jersey 2,983 5,299 8,282 1,187 789 1,976 4,170 6,088 10,258 3.52 New Mexico 546 837 1,383 226 159 384 771 996 1,767 0.61 New York 4,927 10,674 15,601 2,157 1,835 3,992 7,084 12,509 19,593 6.72 North Carolina 2,429 4,364 6,794 966 722 1,688 3,395 5,087 8,482 2.91 North Dakota 178 308 485 85 59 145 263 367 630 0.22 N. Mariana Islands 13 23 35 5 4 9 18 26 44 0.02 Ohio 2,724 5,714 8,438 1,052 999 2,050 3,776 6,713 10,489 3.60 Oklahoma 898 1,650 2,549 378 242 620 1,276 1,893 3,169 1.09 Oregon 996 1,654 2,651 420 286 706 1,416 1,940 3,356 1.15 Pennsylvania 3,355 6,141 9,497 1,393 1,174 2,567 4,748 7,315 12,063 4.14 Puerto Rico 642 1,305 1,947 236 171 407 877 1,476 2,354 0.81 Rhode Island 274 536 809 99 72 171 372 608 980 0.34 South Carolina 1,161 2,162 3,324 453 347 801 1,615 2,509 4,124 1.41 South Dakota 192 325 517 82 68 150 274 393 667 0.23 Tennessee 1,521 2,918 4,439 598 405 1,004 2,119 3,323 5,442 1.87 Texas 5,267 11,824 17,091 2,243 2,277 4,519 7,509 14,101 21,610 7.41 Utah 595 1,007 1,602 247 154 401 842 1,161 2,003 0.69 Vermont 194 262 456 87 46 134 282 308 590 0.20 Virgin Islands 82 64 146 33 11 44 115 75 190 0.07 Virginia 2,344 4,021 6,365 992 717 1,709 3,336 4,738 8,074 2.77 Washington 1,764 3,089 4,853 740 578 1,318 2,504 3,668 6,172 2.12 West Virginia 517 828 1,344 217 146 363 734 973 1,707 0.59 Wisconsin 1,348 2,580 3,928 505 388 893 1,853 2,968 4,821 1.65 Wyoming 178 262 440 84 43 127 262 305 567 0.19 Total $80,056 $153,265 $233,321 $32,561 $25,852 $58,413 $112,617 $179,117 $291,734 100.00 % Note: Figures may not add due to rounding. 1 - 38 Table 1.14 2004 Telecommunications Revenues (In Millions of Dollars) Incumbent Subcriber Local Exchange Mobile Line Services 1/ Wireless Charges 2/ Access 3/ Toll 4/ Total End-User Revenues Intrastate $55,468 $8,438 $72,550 $0 $0 $16,809 $153,265 Interstate 357 4,718 21,839 11,802 5,075 36,265 80,056 Intrastate + Interstate 55,825 13,156 94,389 11,802 5,075 53,074 233,321 Carriers' Carrier Revenues Intrastate 9,448 2,233 3,421 0 7,071 3,679 25,852 Interstate 4,234 1,736 743 0 14,729 11,119 32,561 Intrastate + Interstate 13,682 3,970 4,163 0 21,800 14,798 58,413 Total Revenues Intrastate 64,916 10,671 75,971 0 7,071 20,488 179,117 Interstate 4,591 6,455 22,581 11,802 19,804 47,384 112,617 Intrastate + Interstate 69,507 17,126 98,552 11,802 26,875 67,873 291,734 1/ Excludes subscriber line charges. 2/ Intrastate subscriber line charges are included under access. 3/ Interstate access includes switched access, special access and local private line. 4/ Intrastate toll includes both incumbent local exchange carrier (LEC) toll and non-ILEC toll. Notes: Interstate revenues include both interstate and international revenues. CLECs End-user revenues are from Table 1.6. CLEC revenues include telecommunication revenues provided to end users by CLECs (including local exchange service, mobile wireless, subscriber line charge, access and toll revenues). Revenues in the other categories (incumbent local exchange service, mobile wireless, subscriber line charge, access and toll) include revenues from all filers other than CLECs. Intrastate incumbent local exchange service revenues include fixed local service revenues provided to end users. Interstate incumbent local exchange revenues include interstate revenues from Form 499- A, Telecommunications Reporting Worksheets, lines 404, 407 and 408. Mobile wireless revenues include mobile wireless revenues provided to end users. Subscriber line charge revenues include revenues from line 405 and 428. Toll revenues include toll service revenues provided to end users. Carrier's carrier revenues are from Table 1.5. CLEC revenues include telecommunications revenues provided for resale by CLECs (including local exchange service, mobile wireless, access and toll). Revenues in the other categories (incumbent local exchange service, mobile wireless, access and toll) include revenues for all filers other than CLECs. Intrastate Incumbent local exchange service revenues include revenues from lines 303, 305, 306, 307 and 308. Interstate incumbent local exchange service revenues include revenues from lines 303, 306, 307 and 308. Mobile wireless revenues include mobile service revenues provided for resale. Intrastate access revenues include revenues in line 304. Interstate access revenues include revenues in lines 304 and 305. Toll revenues include toll service revenues for resale. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues: 2004 (March 2006). 1 - 39 Table 1.15 Intrastate Telecommunications Revenues: 2004 Total: End User + Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $1,207 $121 $1,044 75 $33 $217 $2,697 Alaska NA NA NA NA NA NA 447 American Samoa NA NA NA NA NA NA 12 Arizona 964 270 1,397 84 8 138 2,861 Arkansas 600 54 625 73 96 134 1,582 California 6,556 1,253 9,789 1,169 531 2,873 22,170 Colorado 1,194 165 1,238 97 11 179 2,885 Connecticut 850 90 936 37 158 25 2,096 Delaware 187 30 269 5 11 22 524 District of Columbia 382 72 252 3 0 2 710 Florida 4,242 593 5,407 556 151 1,045 11,994 Georgia 2,436 324 2,420 117 29 332 5,659 Guam NA NA NA NA NA NA 72 Hawaii 270 14 372 29 6 37 726 Idaho 270 13 297 30 4 46 660 Illinois 2,411 555 3,416 234 297 455 7,369 Indiana 1,255 167 1,291 150 83 309 3,254 Iowa 530 66 656 100 7 166 1,525 Kansas 554 105 610 31 22 100 1,421 Kentucky 983 73 907 89 18 191 2,260 Louisiana 1,182 94 1,156 59 24 239 2,754 Maine 345 38 277 13 49 102 824 Maryland 1,323 204 1,622 104 72 340 3,666 Massachusetts 1,360 331 1,778 31 220 491 4,211 Michigan 1,798 523 2,464 279 271 452 5,787 Minnesota 974 201 1,281 91 9 186 2,742 Mississippi 869 44 640 26 29 160 1,767 Missouri 1,301 143 1,298 214 32 366 3,354 Montana 214 9 185 35 3 52 497 Nebraska 410 68 446 60 6 85 1,076 Nevada 476 50 599 19 3 45 1,192 New Hampshire 257 57 312 21 34 98 779 New Jersey 1,676 438 2,870 190 307 607 6,088 New Mexico 409 17 426 59 5 79 996 New York 4,827 1,223 4,510 363 183 1,404 12,509 North Carolina 2,018 191 2,212 194 43 428 5,087 North Dakota 141 19 151 21 2 34 367 N. Mariana Islands NA NA NA NA NA NA 26 Ohio 2,540 325 2,808 295 114 631 6,713 Oklahoma 766 81 783 49 80 135 1,893 Oregon 733 89 859 86 11 162 1,940 Pennsylvania 2,304 566 2,913 386 229 916 7,315 Puerto Rico 569 16 771 44 50 26 1,476 Rhode Island 178 71 279 6 15 59 608 South Carolina 1,050 75 1,060 87 37 200 2,509 South Dakota 135 16 174 29 3 35 393 Tennessee 1,420 158 1,439 53 36 218 3,323 Texas 5,484 770 5,486 770 236 1,355 14,101 Utah 388 96 558 35 8 77 1,161 Vermont 155 14 75 9 16 40 308 Virginia 1,574 330 1,993 204 70 567 4,738 Virgin Islands NA NA NA NA NA NA 75 Washington 1,259 164 1,619 204 42 380 3,668 West Virginia 467 28 324 36 21 98 973 Wisconsin 1,064 208 1,285 86 118 207 2,968 Wyoming 130 12 126 11 2 24 305 Total 2/ $64,915 $10,671 $75,970 $7,071 $3,860 $16,628 $179,117 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. (Dollars in Millions) 1 - 40 Table 1.15 Intrastate Telecommunications Revenues: 2004 - Continued (Dollars in Millions) End User Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $1,031 $96 $997 $0 $33 $169 $2,327 Alaska NA NA NA NA NA NA 383 American Samoa NA NA NA NA NA NA 10 Arizona 824 214 1,334 0 8 108 2,487 Arkansas 512 43 597 0 96 104 1,353 California 5,602 991 9,348 0 531 2,237 18,708 Colorado 1,020 131 1,182 0 11 139 2,484 Connecticut 726 71 894 0 158 19 1,869 Delaware 160 24 257 0 11 17 468 District of Columbia 327 57 241 0 0 1 625 Florida 3,625 469 5,163 0 151 814 10,221 Georgia 2,082 257 2,311 0 29 259 4,937 Guam NA NA NA NA NA NA 62 Hawaii 230 11 355 0 6 29 631 Idaho 230 11 283 0 4 36 564 Illinois 2,060 439 3,263 0 297 354 6,414 Indiana 1,072 132 1,233 0 83 241 2,761 Iowa 453 52 627 0 7 129 1,268 Kansas 473 83 583 0 22 78 1,238 Kentucky 840 57 867 0 18 149 1,930 Louisiana 1,010 74 1,104 0 24 186 2,398 Maine 295 30 265 0 49 80 718 Maryland 1,130 162 1,549 0 72 265 3,178 Massachusetts 1,162 262 1,698 0 220 382 3,724 Michigan 1,536 413 2,353 0 271 352 4,926 Minnesota 832 159 1,223 0 9 145 2,368 Mississippi 742 34 611 0 29 124 1,542 Missouri 1,112 113 1,239 0 32 285 2,781 Montana 183 7 176 0 3 40 409 Nebraska 351 54 426 0 6 66 903 Nevada 407 39 572 0 3 35 1,056 New Hampshire 220 45 298 0 34 77 673 New Jersey 1,432 346 2,741 0 307 473 5,299 New Mexico 350 13 407 0 5 62 837 New York 4,125 967 4,307 0 183 1,093 10,674 North Carolina 1,724 151 2,113 0 43 333 4,364 North Dakota 121 15 144 0 2 26 308 N. Mariana Islands NA NA NA NA NA NA 23 Ohio 2,170 257 2,681 0 114 491 5,714 Oklahoma 654 64 747 0 80 105 1,650 Oregon 626 70 821 0 11 126 1,654 Pennsylvania 1,969 448 2,782 0 229 714 6,141 Puerto Rico 486 12 736 0 50 20 1,305 Rhode Island 152 56 266 0 15 46 536 South Carolina 897 59 1,013 0 37 156 2,162 South Dakota 115 13 166 0 3 27 325 Tennessee 1,213 125 1,374 0 36 170 2,918 Texas 4,686 609 5,239 0 236 1,055 11,824 Utah 332 76 532 0 8 60 1,007 Vermont 133 11 71 0 16 31 262 Virginia 1,345 261 1,903 0 70 441 4,021 Virgin Islands NA NA NA NA NA NA 64 Washington 1,076 130 1,546 0 42 296 3,089 West Virginia 399 22 309 0 21 76 828 Wisconsin 909 165 1,227 0 118 162 2,580 Wyoming 111 10 120 0 2 19 262 Total 2/ $55,467 $8,438 $72,549 $0 $3,860 $12,948 $153,265 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 41 Table 1.15 Intrastate Telecommunications Revenues: 2004 - Continued (Dollars in Millions) Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $176 $25 $47 $75 $0 $48 $371 Alaska NA NA NA NA NA NA 65 American Samoa NA NA NA NA NA NA 2 Arizona 140 57 63 84 0 31 374 Arkansas 87 11 28 73 0 30 230 California 954 262 441 1,169 0 636 3,462 Colorado 174 35 56 97 0 40 401 Connecticut 124 19 42 37 0 5 227 Delaware 27 6 12 5 0 5 56 District of Columbia 56 15 11 3 0 0 85 Florida 617 124 243 556 0 231 1,772 Georgia 355 68 109 117 0 73 722 Guam NA NA NA NA NA NA 10 Hawaii 39 3 17 29 0 8 96 Idaho 39 3 13 30 0 10 96 Illinois 351 116 154 234 0 101 955 Indiana 183 35 58 150 0 68 494 Iowa 77 14 30 100 0 37 257 Kansas 81 22 27 31 0 22 183 Kentucky 143 15 41 89 0 42 330 Louisiana 172 20 52 59 0 53 356 Maine 50 8 12 13 0 23 106 Maryland 193 43 73 104 0 75 488 Massachusetts 198 69 80 31 0 109 487 Michigan 262 109 111 279 0 100 861 Minnesota 142 42 58 91 0 41 374 Mississippi 126 9 29 26 0 35 225 Missouri 189 30 58 214 0 81 573 Montana 31 2 8 35 0 11 88 Nebraska 60 14 20 60 0 19 173 Nevada 69 10 27 19 0 10 136 New Hampshire 37 12 14 21 0 22 106 New Jersey 244 92 129 190 0 134 789 New Mexico 60 4 19 59 0 18 159 New York 703 256 203 363 0 311 1,835 North Carolina 294 40 100 194 0 95 722 North Dakota 21 4 7 21 0 7 59 N. Mariana Islands NA NA NA NA NA NA 4 Ohio 370 68 126 295 0 140 999 Oklahoma 111 17 35 49 0 30 242 Oregon 107 19 39 86 0 36 286 Pennsylvania 335 119 131 386 0 203 1,174 Puerto Rico 83 3 35 44 0 6 171 Rhode Island 26 15 13 6 0 13 72 South Carolina 153 16 48 87 0 44 347 South Dakota 20 3 8 29 0 8 68 Tennessee 207 33 65 53 0 48 405 Texas 798 161 247 770 0 300 2,277 Utah 56 20 25 35 0 17 154 Vermont 23 3 3 9 0 9 46 Virginia 229 69 90 204 0 125 717 Virgin Islands NA NA NA NA NA NA 11 Washington 183 34 73 204 0 84 578 West Virginia 68 6 15 36 0 22 146 Wisconsin 155 44 58 86 0 46 388 Wyoming 19 3 6 11 0 5 43 Total 2/ $9,448 $2,233 $3,421 $7,071 $0 $3,679 $25,852 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 42 Table 1.16 Interstate Telecommunications Revenues: 2004 (Dollars in Millions) Total: End User + Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $85 $73 $310 $185 $257 $710 $1,621 Alaska NA NA NA NA NA NA 376 American Samoa NA NA NA NA NA NA 3 Arizona 68 163 415 222 341 904 2,112 Arkansas 42 33 185 95 181 473 1,010 California 463 757 2,905 1,138 2,180 4,690 12,133 Colorado 84 100 367 240 397 910 2,099 Connecticut 60 55 278 162 293 876 1,724 Delaware 13 18 80 42 75 193 422 District of Columbia 27 43 75 40 145 256 585 Florida 300 358 1,605 894 1,362 3,491 8,009 Georgia 172 196 718 362 790 1,518 3,757 Guam NA NA NA NA NA NA 58 Hawaii 19 8 110 64 85 183 469 Idaho 19 8 88 64 114 271 563 Illinois 170 335 1,014 413 649 1,858 4,440 Indiana 89 101 383 259 295 917 2,043 Iowa 37 40 195 108 187 466 1,033 Kansas 39 64 181 84 183 464 1,015 Kentucky 69 44 269 163 232 597 1,374 Louisiana 83 57 343 184 232 624 1,524 Maine 24 23 82 55 105 239 529 Maryland 93 123 481 244 416 1,139 2,497 Massachusetts 96 200 528 288 489 1,086 2,687 Michigan 127 316 731 330 454 1,152 3,110 Minnesota 69 121 380 182 352 732 1,836 Mississippi 61 26 190 105 150 468 1,001 Missouri 92 86 385 228 386 991 2,168 Montana 15 5 55 51 67 207 400 Nebraska 29 41 132 56 143 266 667 Nevada 34 30 178 87 162 666 1,157 New Hampshire 18 34 93 59 95 283 583 New Jersey 118 265 852 419 763 1,753 4,170 New Mexico 29 10 126 100 144 361 771 New York 341 739 1,338 726 1,326 2,615 7,084 North Carolina 143 116 657 392 573 1,515 3,395 North Dakota 10 11 45 26 62 109 263 N. Mariana Islands NA NA NA NA NA NA 18 Ohio 179 196 833 426 597 1,544 3,776 Oklahoma 54 49 232 126 228 587 1,276 Oregon 52 54 255 163 275 618 1,416 Pennsylvania 163 342 864 553 902 1,924 4,748 Puerto Rico 40 9 229 97 139 363 877 Rhode Island 13 43 83 35 51 148 372 South Carolina 74 45 315 181 251 748 1,615 South Dakota 10 10 52 27 54 121 274 Tennessee 100 95 427 244 338 915 2,119 Texas 387 465 1,628 748 1,380 2,901 7,509 Utah 27 58 165 85 161 345 842 Vermont 11 8 22 32 50 158 282 Virginia 111 199 591 340 639 1,455 3,336 Virgin Islands NA NA NA NA NA NA 115 Washington 89 99 480 300 501 1,034 2,504 West Virginia 33 17 96 84 119 384 734 Wisconsin 75 126 381 205 274 791 1,853 Wyoming 9 7 37 27 58 122 262 Total 2/ $4,591 $6,454 $22,580 $11,802 $19,804 $47,383 $112,617 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 43 Table 1.16 Interstate Telecommunications Revenues: 2004 - Continued (Dollars in Millions) End User Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $7 $53 $300 $185 $66 $544 $1,155 Alaska NA NA NA NA NA NA 267 American Samoa NA NA NA NA NA NA 2 Arizona 5 119 401 222 87 692 1,526 Arkansas 3 24 179 95 46 362 710 California 36 553 2,810 1,138 559 3,590 8,685 Colorado 7 73 355 240 102 697 1,473 Connecticut 5 40 269 162 75 671 1,222 Delaware 1 13 77 42 19 148 301 District of Columbia 2 32 72 40 37 196 379 Florida 23 262 1,552 894 349 2,671 5,751 Georgia 13 143 694 362 203 1,162 2,578 Guam NA NA NA NA NA NA 41 Hawaii 1 6 107 64 22 140 340 Idaho 1 6 85 64 29 207 392 Illinois 13 245 981 413 166 1,422 3,241 Indiana 7 74 370 259 76 702 1,487 Iowa 3 29 188 108 48 357 733 Kansas 3 46 175 84 47 355 711 Kentucky 5 32 260 163 59 457 977 Louisiana 6 42 332 184 60 478 1,101 Maine 2 17 80 55 27 183 364 Maryland 7 90 466 244 107 871 1,785 Massachusetts 7 146 510 288 125 831 1,909 Michigan 10 231 707 330 116 881 2,276 Minnesota 5 89 368 182 90 560 1,294 Mississippi 5 19 184 105 39 358 709 Missouri 7 63 372 228 99 758 1,528 Montana 1 4 53 51 17 159 284 Nebraska 2 30 128 56 37 203 457 Nevada 3 22 172 87 41 510 835 New Hampshire 1 25 89 59 24 217 416 New Jersey 9 193 824 419 195 1,342 2,983 New Mexico 2 7 122 100 37 276 546 New York 27 540 1,294 726 340 2,001 4,927 North Carolina 11 84 635 392 147 1,160 2,429 North Dakota 1 8 43 26 16 84 178 N. Mariana Islands NA NA NA NA NA NA 13 Ohio 14 144 806 426 153 1,182 2,724 Oklahoma 4 36 225 126 58 449 898 Oregon 4 39 247 163 71 473 996 Pennsylvania 13 250 836 553 231 1,472 3,355 Puerto Rico 3 7 221 97 36 278 642 Rhode Island 1 31 80 35 13 114 274 South Carolina 6 33 304 181 64 573 1,161 South Dakota 1 7 50 27 14 93 192 Tennessee 8 70 413 244 87 701 1,521 Texas 30 340 1,574 748 354 2,220 5,267 Utah 2 42 160 85 41 264 595 Vermont 1 6 21 32 13 121 194 Virginia 9 146 572 340 164 1,114 2,344 Virgin Islands NA NA NA NA NA NA 82 Washington 7 72 465 300 129 792 1,764 West Virginia 3 12 93 84 31 294 517 Wisconsin 6 92 369 205 70 605 1,348 Wyoming 1 5 36 27 15 94 178 Total 2/ $357 $4,718 $21,838 $11,802 $5,075 $36,264 $80,056 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 44 Table 1.16 Interstate Telecommunications Revenues: 2004 - Continued Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $79 $20 $10 $0 $191 $167 $466 Alaska NA NA NA NA NA NA 109 American Samoa NA NA NA NA NA NA 1 Arizona 63 44 14 0 254 212 586 Arkansas 39 9 6 0 134 111 299 California 427 204 96 0 1,621 1,101 3,448 Colorado 78 27 12 0 295 214 626 Connecticut 55 15 9 0 218 206 503 Delaware 12 5 3 0 56 45 121 District of Columbia 25 12 2 0 108 60 207 Florida 276 96 53 0 1,013 819 2,257 Georgia 159 53 24 0 588 356 1,179 Guam NA NA NA NA NA NA 17 Hawaii 18 2 4 0 63 43 129 Idaho 18 2 3 0 85 63 171 Illinois 157 90 33 0 483 436 1,199 Indiana 82 27 13 0 219 215 556 Iowa 35 11 6 0 139 109 300 Kansas 36 17 6 0 136 109 304 Kentucky 64 12 9 0 172 140 397 Louisiana 77 15 11 0 173 146 423 Maine 22 6 3 0 78 56 165 Maryland 86 33 16 0 310 267 712 Massachusetts 89 54 17 0 363 255 778 Michigan 117 85 24 0 338 270 834 Minnesota 63 33 12 0 262 172 542 Mississippi 57 7 6 0 112 110 292 Missouri 85 23 13 0 287 232 640 Montana 14 1 2 0 50 49 116 Nebraska 27 11 4 0 106 62 211 Nevada 31 8 6 0 120 156 322 New Hampshire 17 9 3 0 71 67 166 New Jersey 109 71 28 0 567 411 1,187 New Mexico 27 3 4 0 107 85 226 New York 314 199 44 0 986 614 2,157 North Carolina 131 31 22 0 426 355 966 North Dakota 9 3 1 0 46 26 85 N. Mariana Islands NA NA NA NA NA NA 5 Ohio 165 53 27 0 444 362 1,052 Oklahoma 50 13 8 0 169 138 378 Oregon 48 14 8 0 205 145 420 Pennsylvania 150 92 28 0 671 451 1,393 Puerto Rico 37 3 8 0 104 85 236 Rhode Island 12 12 3 0 38 35 99 South Carolina 68 12 10 0 187 176 453 South Dakota 9 3 2 0 40 28 82 Tennessee 92 26 14 0 251 215 598 Texas 357 125 54 0 1,026 681 2,243 Utah 25 16 5 0 120 81 247 Vermont 10 2 1 0 37 37 87 Virginia 103 54 19 0 475 341 992 Virgin Islands NA NA NA NA NA NA 33 Washington 82 27 16 0 373 243 740 West Virginia 30 5 3 0 89 90 217 Wisconsin 69 34 13 0 204 186 505 Wyoming 8 2 1 0 43 29 84 Total 2/ $4,234 $1,736 $742 $0 $14,729 $11,119 $32,561 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. (Dollars in Millions) 1 - 45 Table 1.17 Adjustment Formula: 2004 Average Percent Adjustment Formula Reporting 2/ 100/Average Percent 2004 2004 Reporting Alabama 2,275,897 90.1 % 1.11 Alaska 414,396 0.0 NA American Samoa 10,872 0.0 NA Arizona 2,577,209 92.3 1.08 Arkansas 1,371,860 67.2 1.49 California 21,285,036 98.3 1.02 Colorado 2,606,818 95.0 1.05 Connecticut 2,135,021 98.9 1.01 Delaware 546,439 100.0 1.00 District of Columbia 791,292 100.0 1.00 Florida 10,356,878 98.1 1.02 Georgia 4,611,880 88.0 1.14 Guam 67,059 0.0 NA Hawaii 665,486 99.8 1.00 Idaho 714,999 90.5 1.11 Illinois 7,323,440 95.0 1.05 Indiana 3,492,042 95.4 1.05 Iowa 1,540,622 81.0 1.23 Kansas 1,380,168 82.7 1.21 Kentucky 2,003,264 91.5 1.09 Louisiana 2,268,720 91.9 1.09 Maine 808,894 82.1 1.22 Maryland 3,606,266 99.8 1.00 Massachusetts 3,779,199 99.9 1.00 Michigan 5,688,091 96.2 1.04 Minnesota 2,703,043 70.1 1.43 Mississippi 1,328,966 92.8 1.08 Missouri 3,247,315 80.0 1.25 Montana 506,462 66.0 1.52 Nebraska 815,003 77.7 1.29 Nevada 1,267,684 95.4 1.05 New Hampshire 754,305 92.6 1.08 New Jersey 5,983,090 99.8 1.00 New Mexico 940,723 84.6 1.18 New York 11,284,257 96.5 1.04 North Carolina 4,596,547 89.6 1.12 North Dakota 347,899 51.7 1.93 N. Mariana Islands 24,480 0.0 NA Ohio 6,372,077 94.9 1.05 Oklahoma 1,732,719 80.2 1.25 Oregon 1,933,674 90.8 1.10 Pennsylvania 7,345,084 95.5 1.05 Puerto Rico 1,180,127 100.0 1.00 Rhode Island 491,107 100.0 1.00 South Carolina 2,174,893 71.9 1.39 South Dakota 348,183 58.6 1.71 Tennessee 3,085,923 85.4 1.17 Texas 11,590,562 92.3 1.08 Utah 1,056,543 91.2 1.10 Vermont 407,202 84.3 1.19 Virginia 4,290,319 97.3 1.03 Virgin Islands 69,425 0.0 NA Washington 3,419,234 92.3 1.08 West Virginia 980,333 82.5 1.21 Wisconsin 3,089,638 72.3 1.38 Wyoming 289,052 82.5 1.21 Total 165,977,717 92.3 % 1.08 NA - Not Applicable. 1/ USF loops, a measure of access lines, are defined in subcategory 1.3 of 47 C.F.R. 36.154(a). 2/ Average percent reporting to ARMIS (Report 43-01) is based on USF loops. USF Loops 1/ Year End 1 - 46 Table 1.18 Information for Allocating Incumbent Local Exchange Revenues: 2004 (Dollars in Millions) Revenues Interstate for Total Allocation Revenues Alabama $1,132 1.87 % $1,031 $7 $1,207 $85 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 904 1.49 824 5 964 68 Arkansas 562 0.93 512 3 600 42 California 6,147 10.13 5,602 36 6,556 463 Colorado 1,120 1.85 1,020 7 1,194 84 Connecticut 797 1.31 726 5 850 60 Delaware 175 0.29 160 1 187 13 District of Columbia 358 0.59 327 2 382 27 Florida 3,978 6.56 3,625 23 4,242 300 Georgia 2,285 3.77 2,082 13 2,436 172 Guam NA NA NA NA NA NA Hawaii 253 0.42 230 1 270 19 Idaho 253 0.42 230 1 270 19 Illinois 2,261 3.73 2,060 13 2,411 170 Indiana 1,177 1.94 1,072 7 1,255 89 Iowa 497 0.82 453 3 530 37 Kansas 519 0.86 473 3 554 39 Kentucky 921 1.52 840 5 983 69 Louisiana 1,108 1.83 1,010 6 1,182 83 Maine 324 0.53 295 2 345 24 Maryland 1,240 2.05 1,130 7 1,323 93 Massachusetts 1,275 2.10 1,162 7 1,360 96 Michigan 1,686 2.78 1,536 10 1,798 127 Minnesota 913 1.51 832 5 974 69 Mississippi 815 1.34 742 5 869 61 Missouri 1,220 2.01 1,112 7 1,301 92 Montana 201 0.33 183 1 214 15 Nebraska 385 0.63 351 2 410 29 Nevada 446 0.74 407 3 476 34 New Hampshire 241 0.40 220 1 257 18 New Jersey 1,572 2.59 1,432 9 1,676 118 New Mexico 384 0.63 350 2 409 29 New York 4,527 7.46 4,125 27 4,827 341 North Carolina 1,892 3.12 1,724 11 2,018 143 North Dakota 133 0.22 121 1 141 10 N. Mariana Islands NA NA NA NA NA NA Ohio 2,381 3.93 2,170 14 2,540 179 Oklahoma 718 1.18 654 4 766 54 Oregon 687 1.13 626 4 733 52 Pennsylvania 2,160 3.56 1,969 13 2,304 163 Puerto Rico 534 0.88 486 3 569 40 Rhode Island 167 0.28 152 1 178 13 South Carolina 984 1.62 897 6 1,050 74 South Dakota 127 0.21 115 1 135 10 Tennessee 1,331 2.19 1,213 8 1,420 100 Texas 5,142 8.48 4,686 30 5,484 387 Utah 364 0.60 332 2 388 27 Vermont 145 0.24 133 1 155 11 Virginia 1,476 2.43 1,345 9 1,574 111 Virgin Islands NA NA NA NA NA NA Washington 1,180 1.95 1,076 7 1,259 89 West Virginia 438 0.72 399 3 467 33 Wisconsin 998 1.64 909 6 1,064 75 Wyoming 122 0.20 111 1 130 9 Total $60,657 100.00 % $55,467 $357 $64,915 $4,591 NA - Not Applicable. Note: Incumbent local exchange revenues exclude SLC. Figures may not add due to rounding. 1/ Totals in the last four columns include revenues for locations not estimated. Allocation Percentage Revenues Interstate End-User RevenuesRevenues Total Intrastate End-User Intrastate 1 - 47 Table 1.19 Information for Allocating CLEC Revenues: 2004 (Dollars in Millions) CLEC Allocation Interstate Interstate Intrastate Intrastate Lines Percentage End-User Total End-User Total Jun 04 1/ Revenues Revenues Revenues Revenues Alabama 365,060 NA 1.14 % $53 $73 $96 $121 Alaska NA NA NA NA NA NA NA American Samoa NA NA NA NA NA NA NA Arizona 814,194 NA 2.54 119 163 214 270 Arkansas 162,996 NA 0.51 24 33 43 54 California 3,774,501 NA 11.78 553 757 991 1,253 Colorado 498,583 NA 1.56 73 100 131 165 Connecticut 272,385 NA 0.85 40 55 71 90 Delaware * 81,498 0.28 13 18 24 30 District of Columbia 215,421 NA 0.67 32 43 57 72 Florida 1,785,001 NA 5.57 262 358 469 593 Georgia 977,358 NA 3.05 143 196 257 324 Guam NA NA NA NA NA NA NA Hawaii * 36,725 0.13 6 8 11 14 Idaho * 36,023 0.13 6 8 11 13 Illinois 1,672,522 NA 5.22 245 335 439 555 Indiana 501,936 NA 1.57 74 101 132 167 Iowa 199,115 NA 0.62 29 40 52 66 Kansas 316,946 NA 0.99 46 64 83 105 Kentucky 218,810 NA 0.68 32 44 57 73 Louisiana 283,333 NA 0.88 42 57 74 94 Maine 113,957 NA 0.36 17 23 30 38 Maryland 615,757 NA 1.92 90 123 162 204 Massachusetts 997,760 NA 3.11 146 200 262 331 Michigan 1,575,267 NA 4.92 231 316 413 523 Minnesota 604,152 NA 1.89 89 121 159 201 Mississippi 131,218 NA 0.41 19 26 34 44 Missouri 430,538 NA 1.34 63 86 113 143 Montana * 23,578 0.08 4 5 7 9 Nebraska 205,560 NA 0.64 30 41 54 68 Nevada 149,735 NA 0.47 22 30 39 50 New Hampshire 170,433 NA 0.53 25 34 45 57 New Jersey 1,319,513 NA 4.12 193 265 346 438 New Mexico * 45,707 0.16 7 10 13 17 New York 3,684,036 NA 11.50 540 739 967 1,223 North Carolina 576,538 NA 1.80 84 116 151 191 North Dakota * 50,668 0.18 8 11 15 19 N. Mariana Islands NA NA NA NA NA NA NA Ohio 979,885 NA 3.06 144 196 257 325 Oklahoma 242,737 NA 0.76 36 49 64 81 Oregon 267,121 NA 0.83 39 54 70 89 Pennsylvania 1,706,036 NA 5.33 250 342 448 566 Puerto Rico * 42,299 0.15 7 9 12 16 Rhode Island 213,787 NA 0.67 31 43 56 71 South Carolina 226,284 NA 0.71 33 45 59 75 South Dakota * 44,325 0.15 7 10 13 16 Tennessee 475,312 NA 1.48 70 95 125 158 Texas 2,320,273 NA 7.24 340 465 609 770 Utah 288,009 NA 0.90 42 58 76 96 Vermont * 37,486 0.13 6 8 11 14 Virginia 994,588 NA 3.10 146 199 261 330 Virgin Islands NA NA NA NA NA NA NA Washington 494,375 NA 1.54 72 99 130 164 West Virginia * 75,064 0.26 12 17 22 28 Wisconsin 626,809 NA 1.96 92 126 165 208 Wyoming * 33,421 0.12 5 7 10 12 Total 3/ 32,033,915 NA 100.00 % $4,718 $6,454 $8,438 $10,671 NA - Not Applicable. * Data withheld to maintain firms confidentiality or CLECs have less than 100,000 lines in state. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (July 2006). 2/ RBOC data from FCC Form 477 for only carriers in which CLEC lines are not reported. Data from the former GTE territories are not included. Resold lines and UNEs for Hawaii and Puerto Rico are estimated based on personal income. 3/ Totals in the last four columns include revenues for locations not estimated. June 04 2/ RBOC Lines Resold or UNEs 1 - 48 Table 1.20 Information for Allocating Mobile Wireless Revenues: 2004 Alabama 2,302 1.38 % $997 $300 $1,044 $310 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 3,080 1.85 1,334 401 1,397 415 Arkansas 1,377 0.83 597 179 625 185 California 21,576 12.93 9,348 2,810 9,789 2,905 Colorado 2,728 1.63 1,182 355 1,238 367 Connecticut 2,064 1.24 894 269 936 278 Delaware 593 0.36 257 77 269 80 District of Columbia 556 0.33 241 72 252 75 Florida 11,917 7.14 5,163 1,552 5,407 1,605 Georgia 5,333 3.20 2,311 694 2,420 718 Guam NA NA NA NA NA NA Hawaii 819 0.49 355 107 372 110 Idaho 654 0.39 283 85 297 88 Illinois 7,530 4.51 3,263 981 3,416 1,014 Indiana 2,845 1.71 1,233 370 1,291 383 Iowa 1,446 0.87 627 188 656 195 Kansas 1,345 0.81 583 175 610 181 Kentucky 2,000 1.20 867 260 907 269 Louisiana 2,547 1.53 1,104 332 1,156 343 Maine 611 0.37 265 80 277 82 Maryland 3,576 2.14 1,549 466 1,622 481 Massachusetts 3,919 2.35 1,698 510 1,778 528 Michigan 5,431 3.25 2,353 707 2,464 731 Minnesota 2,823 1.69 1,223 368 1,281 380 Mississippi 1,411 0.85 611 184 640 190 Missouri 2,860 1.71 1,239 372 1,298 385 Montana 407 0.24 176 53 185 55 Nebraska 984 0.59 426 128 446 132 Nevada 1,320 0.79 572 172 599 178 New Hampshire 687 0.41 298 89 312 93 New Jersey 6,326 3.79 2,741 824 2,870 852 New Mexico 939 0.56 407 122 426 126 New York 9,940 5.96 4,307 1,294 4,510 1,338 North Carolina 4,876 2.92 2,113 635 2,212 657 North Dakota 333 0.20 144 43 151 45 N. Mariana Islands NA NA NA NA NA NA Ohio 6,188 3.71 2,681 806 2,808 833 Oklahoma 1,725 1.03 747 225 783 232 Oregon 1,894 1.14 821 247 859 255 Pennsylvania 6,420 3.85 2,782 836 2,913 864 Puerto Rico 1,699 1.02 736 221 771 229 Rhode Island 615 0.37 266 80 279 83 South Carolina 2,337 1.40 1,013 304 1,060 315 South Dakota 383 0.23 166 50 174 52 Tennessee 3,171 1.90 1,374 413 1,439 427 Texas 12,091 7.25 5,239 1,574 5,486 1,628 Utah 1,229 0.74 532 160 558 165 Vermont 164 0.10 71 21 75 22 Virginia 4,392 2.63 1,903 572 1,993 591 Virgin Islands NA NA NA NA NA NA Washington 3,568 2.14 1,546 465 1,619 480 West Virginia 714 0.43 309 93 324 96 Wisconsin 2,832 1.70 1,227 369 1,285 381 Wyoming 278 0.17 120 36 126 37 Total 2/ 167,313 100.00 % $72,549 $21,838 $75,970 $22,580 NA - Not Applicable. * Data withheld to maintain firms confidentiality. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (July 2006). 2/ Totals in the last four columns include revenues for locations not estimated. Jun 04 1/ Revenues Total Revenues Revenues Interstate End-User Intrastate End-UserSubscribers Allocation Percentage Wireless Intrastate Total Interstate Revenues (Dollars in Millions) 1 - 49 Table 1.21 Information for Allocating Subscriber Line Charges' (SLCs) Revenues: 2004 Allocation Residential Percentage SLC 3/ Alabama 1,384,973 89,030 452,281 $6.50 $7.00 $7.59 $157 1.58 % $185 Alaska NA NA NA NA NA NA NA NA NA American Samoa NA NA NA NA NA NA NA NA NA Arizona 1,444,710 187,391 731,130 6.50 6.63 6.81 187 1.89 222 Arkansas 728,074 44,295 356,636 5.68 5.27 6.56 80 0.81 95 California 6,924,728 2,465,472 6,422,055 4.93 5.02 5.23 962 9.69 1,138 Colorado 1,446,710 240,660 694,278 6.50 7.00 8.37 203 2.04 240 Connecticut 1,111,535 254,212 568,849 5.78 5.77 6.24 137 1.38 162 Delaware 281,662 39,909 139,548 6.47 6.47 6.47 36 0.36 42 Dist. of Columbia 188,180 35,984 495,923 3.87 3.87 3.87 33 0.34 40 Florida 6,116,492 775,920 2,279,396 6.50 7.00 7.81 756 7.62 894 Georgia 2,339,910 256,672 1,129,380 6.50 7.00 7.53 306 3.08 362 Guam NA NA NA NA NA NA NA NA NA Hawaii 390,644 54,521 194,696 6.50 7.00 8.17 54 0.55 64 Idaho 426,588 40,270 194,860 6.50 6.65 7.37 54 0.54 64 Illinois 3,276,808 478,515 2,135,137 4.80 4.81 5.19 349 3.52 413 Indiana 1,882,959 161,000 888,398 5.89 6.00 6.94 219 2.20 259 Iowa 906,512 62,244 360,702 5.46 5.39 6.41 91 0.92 108 Kansas 673,099 49,079 331,183 5.49 5.44 5.97 71 0.72 84 Kentucky 1,204,570 57,566 439,656 6.38 6.82 7.69 138 1.39 163 Louisiana 1,280,111 129,641 510,111 6.50 7.00 7.30 155 1.57 184 Maine 404,942 28,303 160,757 6.45 6.44 6.94 47 0.47 55 Maryland 1,721,613 280,728 1,018,423 5.68 5.68 5.69 206 2.08 244 Massachusetts 1,881,695 235,936 1,033,335 6.44 6.44 6.44 244 2.45 288 Michigan 2,395,793 216,069 1,473,715 5.53 5.57 5.97 279 2.81 330 Minnesota 1,493,043 122,551 647,418 5.42 5.29 6.29 154 1.55 182 Mississippi 761,502 47,159 286,248 6.50 7.00 7.28 88 0.89 105 Missouri 1,880,462 162,243 724,639 5.61 5.60 6.34 193 1.94 228 Montana 333,976 18,254 137,165 6.50 7.00 9.20 43 0.43 51 Nebraska 408,433 22,658 259,573 5.42 5.30 6.25 47 0.48 56 Nevada 768,224 95,524 360,160 4.77 4.75 5.57 73 0.74 87 New Hampshire 439,895 45,938 156,996 6.44 6.44 6.65 50 0.50 59 New Jersey 2,362,298 751,556 1,566,653 6.28 6.28 6.38 354 3.57 419 New Mexico 639,095 60,417 271,930 6.50 7.00 9.20 85 0.86 100 New York 4,472,259 704,898 2,695,820 6.38 6.40 6.71 614 6.18 726 North Carolina 2,891,460 244,404 1,011,433 6.38 6.68 7.49 332 3.34 392 North Dakota 169,862 5,285 77,093 6.50 7.00 8.84 22 0.22 26 N. Mariana Islands NA NA NA NA NA NA NA NA NA Ohio 3,407,340 280,811 1,451,695 5.68 5.71 6.25 360 3.63 426 Oklahoma 1,038,926 90,735 439,127 5.52 5.40 6.04 106 1.07 126 Oregon 1,163,078 107,475 399,290 6.54 7.02 7.79 138 1.39 163 Pennsylvania 4,065,755 542,253 1,570,514 6.15 6.16 6.77 468 4.71 553 Puerto Rico 910,682 0 123,874 6.25 0.00 9.20 82 0.83 97 Rhode Island 239,328 23,473 115,805 6.44 6.44 6.44 29 0.29 35 South Carolina 1,339,890 73,282 462,482 6.47 6.93 7.78 153 1.54 181 South Dakota 157,621 7,044 111,224 6.50 6.60 7.73 23 0.23 27 Tennessee 1,851,563 148,521 576,671 6.42 6.87 7.37 206 2.07 244 Texas 5,529,465 803,702 2,810,241 5.57 5.62 6.18 632 6.37 748 Utah 568,413 69,895 273,271 6.50 6.56 6.78 72 0.73 85 Vermont 232,062 17,848 97,107 6.45 6.44 6.88 27 0.28 32 Virginia 2,223,836 274,553 1,202,931 6.30 6.37 6.84 288 2.90 340 Virgin Islands NA NA NA NA NA NA NA NA NA Washington 2,137,518 253,913 857,561 6.24 6.36 7.17 253 2.55 300 West Virginia 660,552 26,394 172,669 6.50 7.00 8.47 71 0.72 84 Wisconsin 1,569,568 117,009 766,745 5.64 5.39 6.52 174 1.75 205 Wyoming 154,152 9,042 94,022 6.50 7.00 9.20 23 0.23 27 Total 3/ 81,293,606 11,310,254 41,730,807 $6.03 $5.93 $6.47 $9,927 100.00 % $11,802 Note: Figures may not add due to rounding. NA - Not Applicable. 1/ Excludes additional lines for residential customers of price-cap carriers. 2/ A staff estimate of additional lines for price-cap carriers. 3/ SLC for single line business is the same as for residential lines. 4/ Totals in the last column include revenues for locations not estimated. AveragePrimary Residential Lines & Single Line Business 1/ Additional Residential Average Interstate (Millions) AllocationBusiness Revenues for SLCs (Millions) Average Additional Line SLC Multiline SLCLines 2/ Business Multilines 1 - 50 Table 1.22 Gross Access SLCs Revenues Allocation Interstate Interstate Revenues for for Percentage End-User Total Allocation Allocation Revenues Revenues Alabama $443 $185 $258 1.30 % $66 $257 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 564 222 342 1.73 87 341 Arkansas 277 95 181 0.92 46 181 California 3,326 1,138 2,189 11.06 559 2,180 Colorado 639 240 399 2.02 102 397 Connecticut 457 162 294 1.49 75 293 Delaware 117 42 75 0.38 19 75 District of Columbia 185 40 145 0.73 37 145 Florida 2,262 894 1,368 6.91 349 1,362 Georgia 1,156 362 794 4.01 203 790 Guam NA NA NA NA NA NA Hawaii 149 64 85 0.43 22 85 Idaho 178 64 114 0.58 29 114 Illinois 1,065 413 651 3.29 166 649 Indiana 555 259 296 1.50 76 295 Iowa 296 108 188 0.95 48 187 Kansas 268 84 184 0.93 47 183 Kentucky 395 163 233 1.18 59 232 Louisiana 417 184 233 1.18 60 232 Maine 161 55 105 0.53 27 105 Maryland 662 244 418 2.11 107 416 Massachusetts 779 288 491 2.48 125 489 Michigan 786 330 456 2.30 116 454 Minnesota 536 182 354 1.79 90 352 Mississippi 256 105 151 0.76 39 150 Missouri 615 228 388 1.96 99 386 Montana 118 51 67 0.34 17 67 Nebraska 200 56 144 0.73 37 143 Nevada 249 87 162 0.82 41 162 New Hampshire 155 59 96 0.48 24 95 New Jersey 1,185 419 766 3.87 195 763 New Mexico 246 100 145 0.73 37 144 New York 2,057 726 1,331 6.73 340 1,326 North Carolina 968 392 576 2.91 147 573 North Dakota 88 26 62 0.31 16 62 N. Mariana Islands NA NA NA NA NA NA Ohio 1,025 426 599 3.03 153 597 Oklahoma 355 126 229 1.16 58 228 Oregon 439 163 276 1.40 71 275 Pennsylvania 1,459 553 906 4.58 231 902 Puerto Rico 237 97 140 0.71 36 139 Rhode Island 86 35 51 0.26 13 51 South Carolina 434 181 252 1.28 64 251 South Dakota 82 27 54 0.27 14 54 Tennessee 583 244 339 1.72 87 338 Texas 2,133 748 1,385 7.00 354 1,380 Utah 247 85 162 0.82 41 161 Vermont 83 32 51 0.26 13 50 Virginia 982 340 642 3.24 164 639 Virgin Islands NA NA NA NA NA NA Washington 803 300 504 2.54 129 501 West Virginia 204 84 120 0.61 31 119 Wisconsin 480 205 275 1.39 70 274 Wyoming 86 27 58 0.29 15 58 Total 1/ $31,528 $11,744 $19,785 100.00 % $5,075 $19,804 NA - Not Applicable. Note: Includes switched and special access revenues and private line revenues. Figures may not add due to rounding. 1/ Totals in the last two columns include revenues for locations not estimated. Information for Allocating Interstate Access Revenues: 2004 (Dollars in Millions) 1 - 51 Table 1.23 Allocation Intrastate Intrastate Percentage End-User Total Revenues Revenues Alabama $73 1.06 % $0 $75 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 82 1.19 0 84 Arkansas 72 1.04 0 73 California 1,146 16.60 0 1,169 Colorado 96 1.38 0 97 Connecticut 37 0.53 0 37 Delaware 5 0.08 0 5 District of Columbia 3 0.04 0 3 Florida 545 7.89 0 556 Georgia 114 1.66 0 117 Guam NA NA NA NA Hawaii 28 0.41 0 29 Idaho 30 0.43 0 30 Illinois 229 3.31 0 234 Indiana 147 2.12 0 150 Iowa 98 1.42 0 100 Kansas 30 0.43 0 31 Kentucky 87 1.26 0 89 Louisiana 58 0.84 0 59 Maine 12 0.18 0 13 Maryland 102 1.48 0 104 Massachusetts 30 0.44 0 31 Michigan 273 3.96 0 279 Minnesota 89 1.29 0 91 Mississippi 25 0.37 0 26 Missouri 210 3.04 0 214 Montana 34 0.50 0 35 Nebraska 59 0.85 0 60 Nevada 19 0.27 0 19 New Hampshire 21 0.30 0 21 New Jersey 186 2.69 0 190 New Mexico 58 0.84 0 59 New York 355 5.15 0 363 North Carolina 190 2.76 0 194 North Dakota 20 0.29 0 21 Northern Mariana Islands NA NA NA NA Ohio 289 4.18 0 295 Oklahoma 48 0.70 0 49 Oregon 84 1.22 0 86 Pennsylvania 378 5.48 0 386 Puerto Rico 44 0.63 0 44 Rhode Island 6 0.08 0 6 South Carolina 85 1.23 0 87 South Dakota 29 0.41 0 29 Tennessee 52 0.75 0 53 Texas 755 10.93 0 770 Utah 35 0.50 0 35 Vermont 9 0.12 0 9 Virginia 200 2.89 0 204 Virgin Islands NA NA NA NA Washington 200 2.89 0 204 West Virginia 35 0.51 0 36 Wisconsin 84 1.22 0 86 Wyoming 11 0.15 0 11 Total 1/ $6,905 100.00 $0 $7,071 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Totals in the last two columns include revenues for locations not estimated. Information for Allocating Intrastate Access Revenues: 2004 Revenues for (Dollars in Millions) Allocation 1 - 52 Table 1.24 Information for Allocating LECs' Intrastate Toll: 2004 (Dollars in Millions) Reported Revenues Intrastate by Revenues 2/ Large ILECs 1/ Alabama $30 $33 Alaska NA NA American Samoa NA NA Arizona 7 8 Arkansas 65 96 California 521 531 Colorado 11 11 Connecticut 156 158 Delaware 11 11 District of Columbia 0 0 Florida 148 151 Georgia 26 29 Guam NA NA Hawaii 6 6 Idaho 4 4 Illinois 283 297 Indiana 80 83 Iowa 6 7 Kansas 18 22 Kentucky 16 18 Louisiana 22 24 Maine 40 49 Maryland 72 72 Massachusetts 220 220 Michigan 261 271 Minnesota 6 9 Mississippi 27 29 Missouri 26 32 Montana 2 3 Nebraska 5 6 Nevada 3 3 New Hampshire 32 34 New Jersey 306 307 New Mexico 5 5 New York 176 183 North Carolina 38 43 North Dakota 1 2 Northern Mariana Islands NA NA Ohio 109 114 Oklahoma 64 80 Oregon 10 11 Pennsylvania 219 229 Puerto Rico 50 50 Rhode Island 15 15 South Carolina 27 37 South Dakota 2 3 Tennessee 31 36 Texas 218 236 Utah 7 8 Vermont 14 16 Virginia 69 70 Virgin Islands NA NA Washington 39 42 West Virginia 17 21 Wisconsin 85 118 Wyoming 1 2 Total 3/ $3,604 $3,860 NA - Not Applicable. 1/ Includes only carriers that file ARMIS Report 43-01. 2/ We assume that there is no carrier's carrier LEC toll. End-user LEC toll equals total LEC toll 3/ Totals in the last column include revenues for locations not estimated. Note: LEC is an abbreviation for local exchange carrier. Figures may not add due to rounding. 1 - 53 Table 1.25 Information for Allocating Non-LECs' Intrastate Toll: 2004 (Dollars in Millions) Access Minutes 1/ State Access Allocation End-User Total for Revenues Percentage 2/ Revenues Revenues Allocation Alabama 2,902,570 1.39 % 1.06 % 1.31 % $169 $217 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 1,495,292 0.72 1.19 0.83 108 138 Arkansas 1,528,034 0.73 1.04 0.81 104 134 California 36,667,366 17.58 16.60 17.34 2,237 2,873 Colorado 2,039,579 0.98 1.38 1.08 139 179 Connecticut 44,057 0.02 0.53 0.15 19 25 Delaware 320,209 0.15 0.08 0.13 17 22 District of Columbia 0 0.00 0.04 0.01 1 2 Florida 12,054,368 5.78 7.89 6.31 814 1,045 Georgia 4,422,042 2.12 1.66 2.00 259 332 Guam NA NA NA NA NA NA Hawaii 339,281 0.16 0.41 0.22 29 37 Idaho 480,711 0.23 0.43 0.28 36 46 Illinois 5,332,102 2.56 3.31 2.75 354 455 Indiana 3,706,671 1.78 2.12 1.86 241 309 Iowa 1,803,612 0.86 1.42 1.00 129 166 Kansas 1,369,167 0.66 0.43 0.60 78 100 Kentucky 2,323,019 1.11 1.26 1.15 149 191 Louisiana 3,424,254 1.64 0.84 1.44 186 239 Maine 1,589,531 0.76 0.18 0.62 80 102 Maryland 4,684,434 2.25 1.48 2.05 265 340 Massachusetts 7,936,378 3.81 0.44 2.96 382 491 Michigan 4,839,629 2.32 3.96 2.73 352 452 Minnesota 2,224,119 1.07 1.29 1.12 145 186 Mississippi 2,422,780 1.16 0.37 0.96 124 160 Missouri 4,030,200 1.93 3.04 2.21 285 366 Montana 523,177 0.25 0.50 0.31 40 52 Nebraska 832,433 0.40 0.85 0.51 66 85 Nevada 568,425 0.27 0.27 0.27 35 45 New Hampshire 1,441,872 0.69 0.30 0.59 77 98 New Jersey 8,310,659 3.99 2.69 3.66 473 607 New Mexico 746,592 0.36 0.84 0.48 62 79 New York 19,974,937 9.58 5.15 8.47 1,093 1,404 North Carolina 5,266,051 2.53 2.76 2.58 333 428 North Dakota 360,599 0.17 0.29 0.20 26 34 N. Mariana Islands NA NA NA NA NA NA Ohio 7,682,596 3.68 4.18 3.81 491 631 Oklahoma 1,772,869 0.85 0.70 0.81 105 135 Oregon 1,873,393 0.90 1.22 0.98 126 162 Pennsylvania 11,567,774 5.55 5.48 5.53 714 916 Puerto Rico 0 0.00 0.63 0.16 20 26 Rhode Island 930,088 0.45 0.08 0.36 46 59 South Carolina 2,505,893 1.20 1.23 1.21 156 200 South Dakota 300,569 0.14 0.41 0.21 27 35 Tennessee 3,142,387 1.51 0.75 1.32 170 218 Texas 15,139,647 7.26 10.93 8.18 1,055 1,355 Utah 936,074 0.45 0.50 0.46 60 77 Vermont 588,799 0.28 0.12 0.24 31 40 Virginia 7,501,203 3.60 2.89 3.42 441 567 Virgin Islands NA NA NA NA NA NA Washington 4,370,300 2.10 2.89 2.29 296 380 West Virginia 1,287,382 0.62 0.51 0.59 76 98 Wisconsin 2,632,572 1.26 1.22 1.25 162 207 Wyoming 294,060 0.14 0.15 0.14 19 24 Total 3/ 208,529,755 100.00 % 100.00 % 100.00 % $12,948 $16,628 NA - Not Applicable. Note: LEC is an abbreviation for local exchange carrier. Figures may not add due to rounding. 1/ Access minutes are in thousands and include both originating and terminating minutes. 2/ Allocation percentage is a function of both access minutes and access revenues. 3/ Totals in the last two columns include revenues for locations not estimated. % of Nation Access Minutes % of Nation 1 - 54 Table 1.26 Information for Allocating Interstate Toll: 2004 Access Minutes Allocation for Percentage Allocation 1/ Alabama 6,330,533 1.51 % $544 $710 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 8,056,121 1.92 692 904 Arkansas 4,219,045 1.00 362 473 California 41,806,069 9.95 3,590 4,690 Colorado 8,112,321 1.93 697 910 Connecticut 7,811,776 1.86 671 876 Delaware 1,723,388 0.41 148 193 District of Columbia 2,282,194 0.54 196 256 Florida 31,111,064 7.40 2,671 3,491 Georgia 13,532,017 3.22 1,162 1,518 Guam NA NA NA NA Hawaii 1,629,168 0.39 140 183 Idaho 2,411,013 0.57 207 271 Illinois 16,561,607 3.94 1,422 1,858 Indiana 8,175,825 1.95 702 917 Iowa 4,156,953 0.99 357 466 Kansas 4,136,265 0.98 355 464 Kentucky 5,323,972 1.27 457 597 Louisiana 5,563,796 1.32 478 624 Maine 2,131,290 0.51 183 239 Maryland 10,148,909 2.42 871 1,139 Massachusetts 9,679,522 2.30 831 1,086 Michigan 10,264,814 2.44 881 1,152 Minnesota 6,521,091 1.55 560 732 Mississippi 4,173,087 0.99 358 468 Missouri 8,829,893 2.10 758 991 Montana 1,846,610 0.44 159 207 Nebraska 2,367,366 0.56 203 266 Nevada 5,939,816 1.41 510 666 New Hampshire 2,526,628 0.60 217 283 New Jersey 15,627,462 3.72 1,342 1,753 New Mexico 3,214,937 0.77 276 361 New York 23,303,950 5.55 2,001 2,615 North Carolina 13,503,157 3.21 1,160 1,515 North Dakota 973,429 0.23 84 109 N. Mariana Islands NA NA NA NA Ohio 13,760,686 3.27 1,182 1,544 Oklahoma 5,232,871 1.25 449 587 Oregon 5,507,327 1.31 473 618 Pennsylvania 17,145,532 4.08 1,472 1,924 Puerto Rico 3,232,275 0.77 278 363 Rhode Island 1,321,925 0.31 114 148 South Carolina 6,667,116 1.59 573 748 South Dakota 1,082,229 0.26 93 121 Tennessee 8,158,156 1.94 701 915 Texas 25,858,875 6.15 2,220 2,901 Utah 3,075,292 0.73 264 345 Vermont 1,404,008 0.33 121 158 Virginia 12,967,395 3.09 1,114 1,455 Virgin Islands NA NA NA NA Washington 9,220,135 2.19 792 1,034 West Virginia 3,421,974 0.81 294 384 Wisconsin 7,051,270 1.68 605 791 Wyoming 1,091,803 0.26 94 122 Total 2/ 420,193,959 100.00 % $36,264 $47,383 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Access minutes are in thousands and include both originating and terminating minutes. 2/ Totals in the last two columns include revenues for locations not estimated. End-User Revenues (Dollars in Millions) Total Revenues 1 - 55