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 2005 are taken from filings of annual Telecommunications Reporting Worksheets (FCC Form 499-A) made with the Universal Service Administrative Company (USAC) on April 1, 2006. 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 2006 are taken from May 1, 2006, August 1, 2006, November 1, 2006, and February 1, 2007 FCC Form 499-Q quarterly filings. Revenue Information The Commission has established several universal service mechanisms, governed by section 254 of the Telecommunications Act of 1996, that help ensure that all Americans have access to affordable telecommunications service. In section 254(d) of the Telecommunications Act of 1996, 4 1 Portions of this section are based on Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Industry Revenues (June 2007). 2 Telecommunications providers filed worksheets containing calendar year 2006 revenue data on April 1, 2007. 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 2007 filings were not available for use in this report and 2006 data were based on the more abbreviated and less reliable FCC Form 499-Q quarterly filings. April 2006 FCC Form 499-A filings containing 2005 revenues were used to compile the 2005 data. Compilation was based on a database prepared by the Data Collection Agent as of October 18, 2006. Therefore, revised or new 2006 FCC Form 499-A filings that were received after October 18, 2006, 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 (September 2007). See also FCC Form 499-A at gullfoss2.fcc.gov/cib/form499/499a.cfm. 4 Pub. L. No. 104-104, 110 Stat. 56 codified at 47 U.S.C. §§ 151 et seq. 1 - 2 Congress mandated that "[e]very telecommunications carrier 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 universal service fund administrator. 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 provided 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. Telecommunications 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 • 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) • Interconnected VoIP • 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 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, 21 FCC Rcd 7518 (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 providers 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. The 2004 through 2006 forms included a category for All Distance carriers. 1 - 4 • Shared-Tenant Service Provider • Specialized Mobile Radio - Dispatch • 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 2006. 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 $107.1 billion in wireless service revenues for 2005. 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 $108.8 billion, including some revenues for fixed local and toll services. 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 the 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 Revenue data shown for 1995 and 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 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. 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 2005, available at http://www.fcc.gov/wcb/iatd/lec.html for a comparison with the funding bases used for TRS, NANP, and LNP. 1 - 6 Table 1.9 presents data from quarterly filings of Form 499-Q for 2006. 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 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 classify revenues by types of service. 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 Contributors make payments into the USF based on their interstate and international end user telecommunications revenues. Contributors 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 Office of Managing Director 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. 16 In February 2002, the Commission issued an order that, in relevant part, eliminated from the contribution base charges identified on the bill as recovering contributions to the universal service support mechanisms, a situation known as “circularity.” 17 Specifically, to account for the inclusion 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 47 C.F.R. §54.709(a)(3). 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 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; 1 - 7 of universal service line-item revenues in their contribution bases, service providers would increase their universal service line items above the contribution factor. Before these changes, service providers filed historic revenue information each quarter, including revenue derived from pass through charges on customers’ bills, and the Commission would use these revenue totals along with total estimated program requirement to calculate the contribution factor. 18 The elimination of circularity was implemented in the third quarter of 2002, and 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. In December 2002, the Commission adopted an order that changed the basis for contribution assessments from historic gross-billed revenues to projected collected revenues. 19 This change addressed the reason given by service providers with declining revenue for marking up their pass through charges. These service providers argued that they had to contribute based on historic amounts that were greater than their current period billings, resulting in the need to mark up their pass through charges. This change was fully implemented in the second quarter of 2003. Having addressed circularity and changing the contribution assessment methodology to address declining revenues, the two main reasons cited by providers for marking up their pass through charges, the Commission adopted a rule requiring those contributors that recover their 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). 18 The Commission reduces the revenue estimates by 1% to account for uncollectibles. 19 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, Report and Order and Second Further Notice of Proposed Rulemaking, 17 FCC Rcd 24952 (2002). 1 - 8 universal service contributions through a universal service line item to limit their recovery to the interstate portion of the customer’s bill times the relevant contribution factor. 20 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. Table 1.10 shows the program funding requirements for 2006 and the first three quarters of 2007. 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 2006. 21 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 2006. 22 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. 20 47 C.F.R. §54.712. 21 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 2006. 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. 22 For a discussion of the methodology used to estimate contributions per state, see the Technical Appendix below and Table 1.13. 1 - 9 The nationwide sum of contributions to support universal service is equal to the payments made from USAC to recipients of funds from the 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 2005 by state are reported in Table 1.13. Each state’s share of interstate end user revenues is reported in Table 1.12. 23 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 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. 24 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 ARMIS 25 are used to estimate on a state-by-state basis ILECs’ local exchange service revenues, access revenues, and toll revenues. 26 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 telecommunications revenues by category for ILECs’ local exchange service, CLECs, wireless, access, ILEC toll, and 23 Each state’s share of interstate end user revenues is reported under the heading “estimated contributions percent of total.” 24 The notes in Table 1.14 discuss how revenues from Tables 1.5 and 1.6 are assigned to categories in Table 1.14. 25 Automated Reporting Management Information System (ARMIS). ARMIS data are available on the ARMIS Internet site, which can be reached at www.fcc.gov/wcb/eafs/. 26 Revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are not estimated using data from ARMIS because these jurisdictions have no telephone companies subject to the FCC's ARMIS 43-01 and 43-08 reporting requirements. In 2005, no telephone companies filed ARMIS data for Hawaii. As an estimate for Hawaii in 2005, the data filed in the 2004 ARMIS filings for Hawaii are used instead. 1 - 10 non-ILEC toll. 27 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. 28 Data from ARMIS are adjusted prior to allocating nationwide revenues to the states. ARMIS data include those ILECs with annual operating revenues over $125 million for 2004 and revenues over $129 million in 2005. The ARMIS revenue data represent approximately 92 percent of the local telephone industry based on USF loops. Here, data from ARMIS are expanded to include the entire ILEC industry based on USF loops. Column 1 of Table 1.17 shows USF loops at year-end 2005. Column 2 shows the percent of the ILEC industry that reported in the ARMIS filings. It is the average for year-end 2004 and 2005 data. 29 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 ARMIS Report 43-01 filings. 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. The allocation percentage is determined by dividing the number of CLEC lines in a state, as reported in FCC Form 477, by nationwide CLEC lines. 30 In Table 1.20, we allocate interstate and intrastate mobile wireless revenues on a state-by- 27 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. 28 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. 29 The staff estimate is based on the share of USF loops that are associated with carriers that file ARMIS reports. 30 See Local Telephone Competition at http://www.fcc.gov/wcb/iatd/comp.html for CLEC lines as of June 2005. 1 - 11 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 nationwide wireless subscribers using data from FCC Form 477. 31 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 ARMIS Report 43-01 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 ARMIS Report 43-08. Multi-line business lines (Column 3) are estimated for the industry by multiplying the number of lines in ARMIS Report 43-01 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 2006 filings and from National Exchange Carrier Association (NECA) pool and rate-of-return carriers. 32 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 2006 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 2006 TRP filings for price-cap companies and from NECA pool and rate-of-return carriers. 33 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 ARMIS Report 43-08 and the adjustment formula presented in Table 1.17. Revenues for allocation are the difference between gross access revenues for allocation and 31 See Local Telephone Competition at http://www.fcc.gov/wcb/iatd/comp.html for wireless subscribers as of June 2005. 32 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. 33 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 subscriber line charge revenues. 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 revenues of each type (see Table 1.14). In Table 1.23, intrastate access revenues are allocated between states based on intrastate access revenues from ARMIS Report 43-08. 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 ARMIS Report 43-08, and ILEC intrastate toll revenues. 34 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. 35 Non-LEC toll is the difference between intrastate toll revenues and LEC toll revenues. 36 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 ARMIS Report 43-01 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. 37 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). 34 ILECs’ toll revenues are assumed to be intrastate revenues. 35 Intrastate access revenues are a proxy for intrastate toll rates. 36 We assume that all LEC toll revenues are end user revenues. 37 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 2006 Carrier's Carrier Revenues 2/ Local Service 3/ $28,289 $29,374 $33,156 $36,621 $40,108 $38,412 $37,742 $38,546 $39,213 $38,942 Wireless Service 2,752 3,060 4,652 5,144 6,180 5,020 4,465 4,164 6,334 7,660 Toll Service 11,598 13,448 14,934 21,849 19,999 16,476 18,205 15,703 16,892 16,872 Intrastate 16,201 18,892 22,293 25,553 27,848 25,770 24,825 25,852 27,486 27,942 Interstate and International 4/ 26,438 26,990 30,449 38,060 38,439 34,138 35,587 32,561 34,953 35,532 Total 42,639 45,758 52,742 63,613 66,287 59,907 60,412 58,413 62,439 63,473 End User Revenues 2/ Local Service 3/ 69,137 75,189 78,608 84,526 87,704 88,712 86,474 83,407 82,382 80,925 Wireless Service 30,199 33,714 43,843 56,857 68,507 76,501 85,254 94,404 100,743 110,385 Toll Service 89,193 91,607 93,311 87,767 79,302 67,222 58,983 55,511 52,358 45,044 Intrastate 117,454 123,216 134,919 147,465 155,347 154,815 150,889 153,265 154,310 157,221 Interstate and International 4/ 71,076 77,294 80,844 81,685 80,165 77,619 79,822 80,057 81,173 79,134 Total 188,529 200,510 215,763 229,149 235,513 232,434 230,711 233,322 235,482 236,354 Total Revenues Local Service 3/ 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 119,867 Wireless Service 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 118,045 Toll Service 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 61,916 Intrastate 133,655 142,108 157,212 173,018 183,195 180,585 175,714 179,117 181,796 185,162 Interstate and International 4/ 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,617 116,125 114,665 Total $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $299,828 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 (June 2007). 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 2005, but are not included in the universal service contribution base. These revenues are not included in preliminary 2006 data. Preliminary 2006 data are based on FCC Form 499-Q quarterly filings through November 2006. 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 2006 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 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Local Exchange $45,194 $48,717 $53,771 $59,245 $64,940 $69,947 $72,346 $71,320 $70,606 $68,238 $66,506 Pay Telephone 1/ 2,182 2,536 2,218 1,932 1,585 1,192 1,063 1,002 924 Local Private Line 2/ 1,226 1,616 8,282 10,403 12,914 16,864 21,966 23,070 22,415 23,840 25,673 Other Local 3/ 3,233 2,674 2,847 2,179 2,501 3,249 3,391 3,418 3,242 2,944 3,331 Subscriber Line Charges 2/ 7,597 7,829 8,327 11,052 10,826 11,563 12,127 12,758 12,136 11,715 11,113 Access 2/ 26,314 27,812 21,423 18,449 18,105 17,017 15,096 13,955 12,972 12,352 11,822 103 260 575 1,301 1,410 1,783 1,862 2,227 595 595 Total Local Service 83,564 88,647 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 Wireless Service 16,883 23,444 32,760 36,240 48,117 61,505 74,006 80,678 88,023 96,450 104,489 345 379 495 681 842 1,696 2,118 2,587 189 189 Total Wireless Service 16,883 23,444 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 Operator 1/ 11,170 10,975 12,002 12,205 10,049 11,406 10,389 7,902 6,567 6,542 6,631 Non-Operator Switched Toll 65,217 73,751 72,059 74,168 78,389 75,183 65,325 54,475 50,178 46,387 44,876 Long Distance Private Line 9,719 10,665 10,504 11,952 13,169 16,189 16,402 15,108 15,316 13,906 13,264 Other Long Distance 3,523 4,299 4,695 3,386 3,656 3,372 3,259 2,445 2,222 1,801 2,021 1,810 2,983 3,467 3,927 3,767 2,905 2,577 2,458 1,532 1,532 Total Toll Service 89,629 99,691 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 Total Telecommunications 3/ 190,076 211,782 231,168 246,392 268,505 292,762 301,799 292,341 291,122 291,735 297,921 Non-Telecommunications 3/ 9,071 10,474 25,633 27,944 33,144 42,261 48,036 60,406 65,186 71,493 86,764 Total Reported Revenues 199,147 222,256 256,801 272,019 301,648 335,023 349,835 352,747 356,308 363,227 384,685 Service Reported as: Intrastate 3/ 112,923 127,849 133,654 142,108 157,212 173,018 183,195 180,585 175,714 179,129 181,796 Interstate and International 86,224 94,407 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,605 116,125 Total Telecommunications 3/ $199,147 $222,256 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 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 TRS Worksheet Data See notes on next page. 1 - 14 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 and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (June 2007). Data for 1995 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/ 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/ 1 - 15 Table 1.3 Telecommunications Revenues Reported by Type of Carrier (Dollar Amounts Shown in Millions) FCC Form 499-A Data & TRS Data Service Provider Category 1/ 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Incumbent Local Exchange Carriers 2/ $95,612 $100,021 $105,154 $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 $105,496 $103,561 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 623 1,011 1,919 3,348 5,652 9,814 12,998 13,043 15,509 15,112 16,930 Local Resellers 206 410 511 879 1,393 1,538 721 1,215 630 Other Local Exchange Carriers 157 36 171 11 329 406 338 245 216 Private Carriers 112 147 87 39 15 281 267 532 770 Shared-Tenant Service Providers 87 93 87 202 46 42 22 22 22 Competitors of ILECs 623 1,011 2,481 4,034 6,508 10,945 14,781 15,309 16,857 17,126 18,568 Fixed Local Service Providers 96,235 101,032 107,634 112,268 118,725 127,103 132,666 130,300 126,337 122,622 122,128 Payphone Providers 349 357 933 1,101 1,213 972 836 641 523 445 481 Wireless Telephony Including Cellular, 15,488 21,400 29,944 33,139 46,513 59,823 71,887 78,568 88,168 98,329 107,834 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 1,007 872 579 Specialized Mobile Radio (SMR) 186 191 214 206 33 46 226 Dispatch Wireless Data Service Providers Other Mobile Service Providers 1,277 1,909 225 731 221 164 110 220 135 218 169 Wireless Service Providers 16,765 23,310 33,030 37,032 50,152 63,280 74,596 80,467 89,342 99,465 108,809 Interexchange Carriers (IXCs) 70,938 79,057 79,080 83,443 87,570 87,311 81,272 68,146 61,246 51,589 46,856 Operator Service Providers (OSPs) 500 461 603 590 337 635 611 554 567 523 548 Prepaid Calling Card Providers 16 238 519 888 866 727 133 460 812 1,635 1,828 Satellite Service Providers 1,011 475 280 336 373 406 663 721 714 Toll Resellers 4,220 6,564 8,010 9,885 9,211 10,641 8,797 9,279 9,294 12,192 13,362 Other Toll Carriers 773 577 348 710 150 1,758 2,516 2,089 2,339 2,543 3,195 Toll Service Providers 76,447 86,896 89,570 95,992 98,414 101,407 93,702 80,934 74,920 69,204 66,503 Non-Telecommunications Revenues in Prior Year Data 2/ 280187 000000000 , , , , , , , , , , , Total Telecommunications Revenues $190,076 $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 1/ 2/ 3/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (June 2007). 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 through 2005, 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. TRS Worksheet Data 1 - 16 2005 Revenues subject to universal service contribution Billed interstate and international end-user revenues [ Line 412(e) + Line 420(d) + Line 420(e) ] $81,173 less uncollectible contribution base revenues [ Line 422(d) + Line 422(e) ] 1,231 less revenues for international - to - international services [ Line 412(e) ] 873 less international revenues of international-only filers and international revenues that were excluded because of 3,742 the 12% rule 2/ less interstate and other international revenues for 2,485 filers who are ide minimis or otherwise exempt from universal service support requirements 54 equals $75,272 Revenues subject to TRS contribution Interstate and international end-user revenues $81,173 less interstate and international revenues for 135 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 470 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 [ Line 511(b) ] 108 equals $80,594 Revenues subject to NANPA and LNP contribution Total telecommunications service end-user revenues (including intrastate, interstate and international) $235,482 less telecommunications revenues for 711 filers who identify themselves as private service providers, shared tenent service providers or payphone service providers and who therefore are exempt from North American Numbering Plan Administration (NANPA) and local number portability administration (LNP) contribution requirements if they provide no carrier services 1,025 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 [ Line 511 (a) ] 125 equals $234,332 1/ 2/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (June 2007). 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 /: 2005 (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 iFederal-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 November 1, 2006. The universal service administrator continues to receive additional and corrected 1 - 17 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2005 (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) $3,965 $492 $4,457 $133 $6 * $140 0 Provided under other arrangements 643 133 776 107 81 * 188 Total Line 303 4,608 626 5,233 240 87 * 327 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 3,228 2,341 5,569 2,368 1,040 2 3,410 0 Provided as unbundled network elements or other contract arrangement 617 396 1,013 81 29 * 110 Total Line 304 3,845 2,737 6,582 2,449 1,069 2 3,520 305 Local private line & special access 712 9,688 10,400 290 1,264 * 1,554 306 Payphone compensation from toll carriers 96 99 195 1 3 * 4 307 Other local telecommunications service revenues 1,882 513 2,394 32 6 38 308 Universal service support revenues received from 919 930 1,849 614 1,798 * 2,412 Federal or state sources Total fixed local service provided for resale 12,062 14,592 26,654 3,626 4,227 2 7,855 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 62 13 74 13 3 15 Total mobile service provided for resale 62 13 74 13 3 15 Toll service 310 Operator and toll calls with alternative billing 15 * 15 1 * * 1 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 200 * 200 6 2 * 8 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 18 7 25 7 5 12 313 Satellite services 314 All other long distance services * 1 1 4 1 * 5 Total toll service provided for resale 233 8 241 17 8 * 25 Total service provided for resale (carrier's carrier) $12,357 $14,612 $26,969 $3,655 $4,237 $3 $7,895 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 (June 2007). 1 - 18 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2005 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) $62 $137 $3 $202 $1 * * $1 0 Provided under other arrangements 108 16 * 124 Total Line 303 170 153 3 326 1 * * 1 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 536 274 5 816 * * * * 0 Provided as unbundled network elements or other contract arrangement 357 40 11 408 * * * Total Line 304 893 314 16 1,223 * * * * 305 Local private line & special access 589 740 * 1,330 1 * * 1 306 Payphone compensation from toll carriers 5 6 * 11 70 64 2 135 307 Other local telecommunications service revenues 171 7 178 1 * * 2 308 Universal service support revenues received from 42 18 * 60 * * * * Federal or state sources Total fixed local service provided for resale 1,871 1,239 20 3,129 73 64 2 139 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll * 2 3 Total mobile service provided for resale * 2 3 Toll service 310 Operator and toll calls with alternative billing 36 4 1 40 1 * * 1 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 148 91 24 262 * * * * 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 158 510 8 676 313 Satellite services * 78 17 94 314 All other long distance services 11 28 1 40 * * * * Total toll service provided for resale 352 711 50 1,112 2 * * 2 Total service provided for resale (carrier's carrier) $2,223 $1,952 $69 $4,244 $75 $64 $2 $141 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 (June 2007). 1 - 19 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2005 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) $1 $1 * $2 0 Provided under other arrangements 4.6 * 5.1 * * Total Line 303 6 1 * 7 * * 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 5 3 * 7 * * * 0 Provided as unbundled network elements or other contract arrangement 56 6 * 62 1 * 1 Total Line 304 60 9 * 69 1 * 1 305 Local private line & special access 45 * 45 306 Payphone compensation from toll carriers * * * * * * 307 Other local telecommunications service revenues 12 * 12 * * * 308 Universal service support revenues received from 80 335 * 415 * * * Federal or state sources Total fixed local service provided for resale 203 345 * 548 2 * 2 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 5,112 1,069 4 6,185 31 7 * 39 Total mobile service provided for resale 5,112 1,069 4 6,185 31 7 * 39 Toll service 310 Operator and toll calls with alternative billing 102 39 * 140 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 266 127 1 394 1 1 2 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 1 * * 2 313 Satellite services 314 All other long distance services 9 1 9 1 * 1 Total toll service provided for resale 378 166 1 545 3 1 3 Total service provided for resale (carrier's carrier) $5,693 $1,580 $6 $7,278 $36 $8 * $45 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 (June 2007). 1 - 20 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2005 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) $57 $14 * $72 $4,219 $651 $4 $4,874 0 Provided under other arrangements 40 11 * 51 903 241 * 1,144 Total Line 303 98 25 1 123 5,122 892 4 6,018 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 74 73 30 177 6,210 3,731 38 9,978 0 Provided as unbundled network elements or other contract arrangement 215 34 1 250 1,327 505 12 1,844 Total Line 304 289 107 31 426 7,537 4,236 50 11,822 305 Local private line & special access 63 193 1 256 1,700 11,885 1 13,586 306 Payphone compensation from toll carriers 9 18 * 27 182 188 2 372 307 Other local telecommunications service revenues 27 1 * 28 2,126 527 * 2,653 308 Universal service support revenues received from 26 1 27 1,680 3,083 * 4,763 Federal or state sources Total fixed local service provided for resale 510 344 33 887 18,347 20,810 57 39,213 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 13 5 * 18 5,231 1,099 4 6,334 Total mobile service provided for resale 13 5 * 18 5,231 1,099 4 6,334 Toll service 310 Operator and toll calls with alternative billing 24 39 62 126 178 82 63 323 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 2,338 4,074 5,124 11,536 2,959 4,294 5,149 12,403 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 524 1,988 150 2,661 707 2,510 158 3,375 313 Satellite services 13 53 280 346 13 131 296 440 314 All other long distance services 26 159 109 295 52 190 110 351 Total toll service provided for resale 2,925 6,314 5,725 14,964 3,908 7,207 5,776 16,892 Total service provided for resale (carrier's carrier) $3,448 $6,663 $5,757 $15,868 $27,486 $29,116 $5,836 $62,439 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 (June 2007). 1 - 21 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2005 (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, $36,848 $50 $36,898 $7,144 $42 $7,186 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 195 7,683 7,878 61 1,752 * 1,813 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 37,043 7,733 44,776 7,205 1,793 * 8,999 406 Local private line and special access service 2,595 4,912 7,507 352 617 * 969 407 Payphone coin revenues (local and long distance) 262 * 262 21 2 * 23 408 Other local telecommunications service revenues 309 10 319 82 3 * 85 Line 403 surcharges on fixed local service 1/ 188 1,327 1,515 35 239 274 Total fixed local service provided to end users 40,396 13,982 54,379 7,695 2,655 * 10,350 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 173 23 * 195 51 11 62 410 Message charges including roaming, but excluding 104 4 107 24 7 31 toll charges Line 403 surcharges on mobile service 1/ 1 2 3 * 1 2 Total mobile service provided to end users 277 28 * 305 75 18 94 Toll service 411 Prepaid calling card (including card sales to 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 126 1 127 4 * * 5 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 2,003 96 2,099 192 38 2 232 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 965 1 966 71 8 * 79 416 Satellite services 1 1 417 All other long distance services 34 * 34 6 * 6 Line 403 surcharges on toll service 1/ 6 10 16 1 3 * 4 Total toll service provided to end users 3,134 108 3,242 275 50 3 328 Total telecommunications service provided to $43,807 $14,119 * $57,926 $8,046 $2,724 $3 $10,772 end users 422 Uncollectible revenue/bad debt expense associated 750 125 * 875 78 18 * 96 with end user revenues other than Line 412 423 Net universal service contribution base revenues $43,057 $13,994 * $57,051 $7,967 $2,706 $3 $10,675 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 (June 2007). 1 - 22 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2005 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, $6,582 $130 $5 $6,717 * * 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 20 978 * 998 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 6,602 1,108 5 7,715 * * 406 Local private line and special access service 1,238 1,789 1 3,028 14 1 * 15 407 Payphone coin revenues (local and long distance) 3 18 * 21 223 11 1 234 408 Other local telecommunications service revenues 214 3 * 217 2 * * 2 Line 403 surcharges on fixed local service 1/ 38 261 * 300 * * Total fixed local service provided to end users 8,096 3,178 6 11,280 238 12 1 251 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 10 2 * 13 * * 410 Message charges including roaming, but excluding 2 1 3 toll charges Line 403 surcharges on mobile service 1/ * * * Total mobile service provided to end users 12 3 * 16 * * Toll service 411 Prepaid calling card (including card sales to 16 3 40 58 * * * * customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 1 1 foreign points 413 Operator and toll calls with alternative billing 21 39 1 61 51 12 * 63 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 766 1,060 210 2,036 18 5 1 24 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 193 390 43 625 * * 416 Satellite services 8 48 7 62 417 All other long distance services 19 14 2 35 1 * 2 Line 403 surcharges on toll service 1/ 5 139 7 150 * * * Total toll service provided to end users 1,027 1,692 309 3,028 70 17 2 89 Total telecommunications service provided to $9,135 $4,873 $315 $14,324 $308 $29 $2 $340 end users 422 Uncollectible revenue/bad debt expense associated 221 78 9 308 5 1 * 6 with end user revenues other than Line 412 423 Net universal service contribution base revenues $8,914 $4,796 $305 $14,015 $303 $29 $2 $334 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 (June 2007). 1 - 23 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2005 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, $81 $1 $83 $13 $7 * $20 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 7 7 1 1 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 81 8 89 13 8 * 21 406 Local private line and special access service 11 * 11 * * * 407 Payphone coin revenues (local and long distance) * * * * * * 408 Other local telecommunications service revenues 7 7 14 2 * 16 Line 403 surcharges on fixed local service 1/ * 1 1 * 1 1 Total fixed local service provided to end users 99 10 108 28 11 * 38 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 61,994 16,520 153 78,668 618 111 1 729 410 Message charges including roaming, but excluding 13,861 4,052 29 17,942 40 13 1 54 toll charges Line 403 surcharges on mobile service 1/ 404 2,151 6 2,561 3 12 * 15 Total mobile service provided to end users 76,260 22,723 188 99,171 661 136 1 798 Toll service 411 Prepaid calling card (including card sales to 19 1 2 22 44 17 61 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 5 5 9 9 foreign points 413 Operator and toll calls with alternative billing 28 9 * 38 * * * arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 825 277 15 1,117 9 4 * 13 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 27 12 1 40 * * 416 Satellite services * * * 1 6 7 417 All other long distance services 4 10 2 17 * * * * Line 403 surcharges on toll service 1/ 5 34 * 40 * 3 3 Total toll service provided to end users 909 344 25 1,277 53 25 15 93 Total telecommunications service provided to $77,267 $23,077 $213 $100,556 $741 $172 $16 $930 end users 422 Uncollectible revenue/bad debt expense associated 1,388 391 5 1,784 10 2 * 12 with end user revenues other than Line 412 423 Net universal service contribution base revenues $75,879 $22,685 $203 $98,767 $732 $170 $7 $909 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 (June 2007). 1 - 24 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2005 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, $4,546 $275 $1 $4,821 $55,214 $505 $5 $55,725 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 3 414 417 279 10,834 * 11,113 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 4,549 689 1 5,239 55,493 11,339 6 66,838 406 Local private line and special access service 83 464 9 556 4,293 7,784 10 12,087 407 Payphone coin revenues (local and long distance) 9 2 * 12 518 33 1 552 408 Other local telecommunications service revenues 25 8 * 33 652 26 * 678 Line 403 surcharges on fixed local service 1/ 16 121 * 137 277 1,949 * 2,227 Total fixed local service provided to end users 4,683 1,283 10 5,976 61,235 21,131 17 82,382 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 257 41 1 299 63,103 16,708 155 79,965 410 Message charges including roaming, but excluding 43 8 2 54 14,074 4,084 32 18,190 toll charges Line 403 surcharges on mobile service 1/ 2 5 * 7 410 2,172 6 2,587 Total mobile service provided to end users 302 54 3 359 77,586 22,964 192 100,743 Toll service 411 Prepaid calling card (including card sales to 202 255 2,980 3,436 280 277 3,023 3,579 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 859 859 873 873 foreign points 413 Operator and toll calls with alternative billing 639 599 326 1,563 869 660 328 1,856 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 8,420 14,185 4,348 26,953 12,232 15,665 4,576 32,474 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 584 6,642 953 8,179 1,841 7,052 996 9,889 416 Satellite services 24 98 224 345 33 147 236 415 417 All other long distance services 117 520 84 721 181 544 88 814 Line 403 surcharges on toll service 1/ 36 2,098 111 2,245 53 2,287 119 2,458 Total toll service provided to end users 10,021 24,395 9,884 44,300 15,489 26,631 10,238 52,358 Total telecommunications service provided to $15,005 $25,732 $9,897 $50,635 $154,310 $70,726 $10,447 $235,482 end users 422 Uncollectible revenue/bad debt expense associated 457 476 125 1,059 2,910 1,091 140 4,140 with end user revenues other than Line 412 423 Net universal service contribution base revenues $14,548 $25,256 $8,913 $48,718 $151,400 $69,635 $9,434 $230,469 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 (June 2007). 1 - 25 Table 1.7 Total Revenues: 2005 (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 $52,100 $28,475 $80,575 $11,299 $6,877 $3 $18,178 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 358 99 457 22 5 * 27 [Lines 306 and 407] Mobile service 339 41 * 380 88 21 109 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 3,367 116 3,483 292 58 3 352 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 56,164 28,731 * 84,895 11,701 6,960 5 18,666 Total telecommunications service provided for resale 12,357 14,612 26,969 3,655 4,237 3 7,895 (from Table 5) Total telecommunications service provided to 43,807 14,119 * 57,926 8,046 2,724 3 10,772 end users (from Table 6) Total telecommunications service revenues 56,164 28,731 * 84,895 11,701 6,960 5 18,666 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 13,523 - - - - - - - - - 2,899 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 - - - - - - - - - $98,418 - - - - - - - - - $21,565 421 Uncollectible revenue/bad debt expense associated $1,175 $144 with gross billed revenues Total collected revenues from all sources $97,243 $21,421 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 (June 2007). 1 - 26 Table 1.7 Total Revenues: 2005 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 $9,958 $4,394 $25 $14,377 $18 $1 * $20 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 9 23 * 32 293 75 2 370 [Lines 306 and 407] Mobile service 13 6 * 18 * * [Lines 309, 409, 410, and a portion of 403 1/] Toll service 1,379 2,402 359 4,140 72 18 2 91 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 11,358 6,825 385 18,568 383 94 4 481 Total telecommunications service provided for resale 2,223 1,952 69 4,244 75 64 2 141 (from Table 5) Total telecommunications service provided to 9,135 4,873 315 14,324 308 29 2 340 end users (from Table 6) Total telecommunications service revenues 11,358 6,825 385 18,568 383 94 4 481 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 9,152 - - - - - - - - - 450 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 - - - - - - - - - $27,720 - - - - - - - - - $931 421 Uncollectible revenue/bad debt expense associated $435 $12 with gross billed revenues Total collected revenues from all sources $27,285 $919 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 (June 2007). 1 - 27 Table 1.7 Total Revenues: 2005 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 $302 $354 * $656 $30 $11 * $40 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone * * * * * * [Lines 306 and 407] Mobile service 81,372 23,792 192 105,356 692 144 2 837 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 1,286 510 27 1,822 56 26 15 97 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 82,960 24,656 219 107,834 777 181 16 974 Total telecommunications service provided for resale 5,693 1,580 6 7,278 36 8 * 45 (from Table 5) Total telecommunications service provided to 77,267 23,077 213 100,556 741 172 16 930 end users (from Table 6) Total telecommunications service revenues 82,960 24,656 219 107,834 777 181 16 974 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 33,756 - - - - - - - - - 2,243 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 - - - - - - - - - $141,591 - - - - - - - - - $3,217 421 Uncollectible revenue/bad debt expense associated $2,202 $17 with gross billed revenues Total collected revenues from all sources $139,389 $3,200 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 (June 2007). 1 - 28 Table 1.7 Total Revenues: 2005 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 $5,175 $1,607 $42 $6,824 $78,881 $41,720 $70 $120,671 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 18 20 * 38 700 221 3 924 [Lines 306 and 407] Mobile service 314 59 3 377 82,817 24,063 196 107,076 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 12,946 30,709 15,609 59,264 19,397 33,839 16,014 69,250 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 18,453 32,395 15,655 66,503 181,796 99,842 16,283 297,921 Total telecommunications service provided for resale 3,448 6,663 5,757 15,868 27,486 29,116 5,836 62,439 (from Table 5) Total telecommunications service provided to 15,005 25,732 9,897 50,635 154,310 70,726 10,447 235,482 end users (from Table 6) Total telecommunications service revenues 18,453 32,395 15,655 66,503 181,796 99,842 16,283 297,921 418 Enhanced services, inside wiring maintenance, billing - - - - - - - - - 24,741 - - - - - - - - - 86,764 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 - - - - - - - - - $91,244 - - - - - - - - - $384,685 421 Uncollectible revenue/bad debt expense associated $1,255 $5,239 with gross billed revenues Total collected revenues from all sources $89,989 $379,446 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 (June 2007). 1 - 29 Table 1.8 Revenues by Type of Carrier 1/: 2005 (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 $26,654 $74 $241 $26,969 $54,379 $305 $3,242 $57,926 Other Incumbent Local Exchange Carriers (LECs) 7,855 15 25 7,894 10,350 94 328 10,772 Total Incumbent LECs 34,509 90 265 34,863 64,729 399 3,570 68,698 Competitive Access Providers (CAPs) and Competitiv 2,887 1 787 3,674 10,683 11 2,562 13,255 Local Exchange Carriers (CLECs) Local Resellers 56 2 58 442 1 130 573 Private Service Providers 54 2 288 343 109 3 314 426 Shared-Tenant Service Providers * * * 16 * 6 22 Other Local Service Providers 133 36 168 30 1 17 47 Total Local Competitors 3,129 3 1,112 4,244 11,280 16 3,028 14,324 Fixed Local Service Providers 37,637 92 1,377 39,107 76,009 415 6,598 83,021 Wireless Telephony Including Cellular, Personal 548 6,185 545 7,278 108 99,171 1,277 100,556 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 1 32 1 34 9 527 8 545 Specialized Mobile Radio (SMR) Dispatch * 1 * 1 1 223 1 225 Wireless Data and Other Mobile Service Providers 1 6 2 9 28 48 84 160 Wireless Service Providers 550 6,224 548 7,322 146 99,969 1,371 101,486 Interexchange Carriers (IXCs) 775 4 11,158 11,937 5,272 199 29,448 34,919 Operator Service Providers (OSPs) 2 32 34 3 510 513 Prepaid Calling Card Providers 1 1 161 163 1 29 1,635 1,665 Satellite Service Providers * 4 75 79 171 14 451 635 Toll Resellers 46 8 1,992 2,046 405 117 10,793 11,316 , , , , All Filers $39,213 $6,334 $16,891 $62,439 $82,382 $100,743 $52,358 $235,482 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 (June 2007). 1 - 30 Table 1.8 Revenues by Type of Carrier 1/: 2005 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 $13,994 $56,164 $28,731 * $84,895 $13,523 $98,418 Other Incumbent Local Exchange Carriers (ILECs) 2,708 11,701 6,960 5 18,666 2,899 21,565 Total ILECs 16,702 67,865 35,691 5 103,561 16,422 119,982 Competitive Access Providers (CAPs) and Competit 4,650 10,534 6,122 * 274 16,930 5,726 22,656 Local Exchange Carriers (CLECs) Local Resellers 128 476 143 * 11 630 107 737 Private Service Providers 280 183 514 * 72 770 2,839 3,608 Shared-Tenant Service Providers 7 15 6 1 22 41 63 Other Local Service Providers 37 150 41 1 24 216 439 655 Total Local Competitors 5,101 11,358 6,825 1 384 18,568 9,152 27,720 Fixed Local Service Providers 21,803 79,222 42,516 1 389 122,128 25,574 147,702 Wireless Telephony Including Cellular, Personal 22,888 82,960 24,656 5 214 107,834 33,756 141,591 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 72 503 76 * 579 304 883 Specialized Mobile Radio (SMR) Dispatch 56 168 58 * 226 252 478 Wireless Data and Other Mobile Service Providers 49 106 47 9 7 169 1,687 1,856 Wireless Service Providers 23,066 83,737 24,837 14 221 108,809 35,999 144,807 Interexchange Carriers (IXCs) 23,954 12,871 25,805 539 7,641 46,856 19,041 65,897 Operator Service Providers (OSPs) 143 345 180 2 20 548 198 745 Prepaid Calling Card Providers 1,590 66 45 4 1,713 1,828 281 2,109 Satellite Service Providers 370 250 215 29 221 714 2,081 2,796 Toll Resellers 6,729 4,426 5,941 272 2,723 13,362 2,426 15,788 , , , , All Filers $79,069 $181,796 $99,842 $873 $15,410 $297,921 $86,764 $384,685 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 (June 2007). 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 2006 1/ Regional Bell Operating Companies $13,011 $12,864 1.1 % $26,356 $55,551 $81,907 $13,481 Other Incumbent Local Exchange 2,652 2,611 1.6 7,743 10,420 18,163 2,604 Carriers (ILECs) Total ILECs 15,663 15,475 1.2 34,099 65,971 100,070 16,085 Competitive Access Providers 4,177 4,086 2.2 3,507 12,973 16,480 4,115 (CAPs) and Competitive Local Exchange Carriers (CLECs) Local Resellers 317 304 4.2 714 759 1,472 155 Private Service Providers 181 178 1.7 308 351 660 242 Shared-Tenant Service Providers 4 4 10.2 1 17 4 Interconnected VoIP 4/ 252 245 0.7 33 260 293 209 Other Local Service Providers 43 37 15.5 152 209 360 33 Total Local Competitors 4,974 4,853 2.4 4,716 14,567 19,283 4,758 Fixed Local Service Providers 20,636 20,328 1.5 38,815 80,538 119,353 20,843 Payphone Service Providers 24 24 1.3 136 339 475 29 Wireless Telephony Including Cellular, 26,086 25,618 1.8 7,322 109,404 116,726 26,857 Personal Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 67 64 7.0 90 616 706 77 Specialized Mobile Radio (SMR) Dispatch 58 57 2.1 0 213 213 40 Wireless Data and Other Mobile Service 119 118 0.9 7 223 229 88 Providers Wireless Service Providers 26,330 25,857 1.8 7,419 110,456 117,875 27,062 Interexchange Carriers (IXCs) 20,630 20,300 1.6 11,569 29,695 41,263 21,351 Operator Service Providers (OSPs) 135 113 16.5 71 496 567 143 Prepaid Calling Card Providers 1,524 1,478 3.0 187 2,435 2,622 1,689 Satellite Service Providers 249 246 1.5 121 553 674 276 Toll Resellers 7,729 7,447 3.7 2,209 11,416 13,625 7,409 Other Toll Carriers 417 402 4.0 2,659 492 3,151 375 Toll Service Providers 30,684 29,987 2.3 16,815 45,088 61,903 31,243 All Filers $77,675 $75,271 4/ 1.9 % $63,186 $236,420 $299,606 $79,178 See notes on next page. Intrastate, interstate and International Historic Revenues Reported for 2006 1/ Billed to Resellers 2/ Implied Uncollectible Rate 3/ Interstate and International Billed to End Users 2/ Total Revenue 2/ Billed to End Users 2/ Interstate and International ($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: 2006 (Dollar Amounts Shown in Millions) ($millions) ($millions) ($millions) 1 - 32 Notes for Table 1.9 1/ 2/ 3/ 4/ 5/ ($millions) First Quarter $18,450.9 Second Quarter $18,318.0 Third Quarter $18,773.7 Fourth Quarter $19,362.7 Total Projected Collected $74,905.3 Data filed on FCC Forms 499-Q and 499-A Worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (June 2007) available at http://www.fcc.gov/wcb/stats. Interconnected Voice over Internet Protocol (Interconnected VoIP) providers were required to file FCC Form 499Q worksheets starting August 1, 2006, but were not required to include historic data until the February 2, 2007 filing. Therefore, the totals for 2006 are incomplete. 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 2006 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 2006 1 - 33 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 $342.554 $1,358.785 Local Switching Support $120.755 $121.215 $121.873 $123.196 $487.039 Interstate Common Line Support $312.688 $322.958 $311.457 $313.379 $1,260.482 Interstate Access Support Mechanism $181.318 $180.892 $174.352 $179.947 $716.509 Forward-Looking High Cost Mechanism $77.375 $88.127 $84.624 $85.812 $335.938 Prior Period True-ups -$81.418 -$15.423 -$15.119 -$121.855 -$233.815 Administrative expenses $5.254 $5.082 $5.280 $3.598 $19.214 Interest income 1 -$3.343 -$4.305 -$3.284 -$4.287 -$15.219 Program Total $948.701 $1,037.819 $1,020.069 $922.344 $3,928.933 Low Income Lifeline Assistance $196.927 $193.488 $198.346 $189.856 $778.617 Link-Up $9.868 $8.860 $8.767 $8.060 $35.555 Incremental Toll Limitation $1.746 $1.717 $2.002 $2.191 $7.656 Hurricane Katrina Relief $29.700 $14.100 $0.000 $43.800 Prior Period true-ups -$4.117 -$4.152 -$10.760 -$27.548 -$46.577 Administrative expenses $1.289 $1.215 $1.239 $1.242 $4.985 Interest income 1 -$0.752 -$1.112 -$1.122 -$2.466 -$5.452 Program Total $234.661 $214.116 $198.472 $171.335 $818.584 Rural Health Rural Health Care Support $7.834 $12.413 $7.292 $11.552 $39.091 Prior Period True-ups -$0.642 $0.716 $1.826 $1.030 $2.930 Administrative expenses $1.164 $1.676 $0.946 $0.959 $4.745 Interest income 1 -$0.502 -$0.403 -$0.403 -$0.560 -$1.868 Program Total $7.854 $14.402 $9.661 $12.981 $44.898 Schools & Libraries Schools and Libraries Support $562.500 $562.500 $562.500 $562.500 $2,250.000 Prior Period True-ups 2 -$23.242 -$14.513 $6.540 -$41.416 -$72.631 Administrative expenses $16.486 $16.053 $16.299 $19.468 $68.306 Interest income 1 -$41.262 -$40.515 -$34.706 -$40.111 -$156.594 Program Total $514.482 $523.525 $550.633 $500.441 $2,089.081 Grand Total $1,705.698 $1,789.862 $1,778.835 $1,607.101 $6,881.496 Applicable interstate and international end-user revenues Reported contribution base revenues $18,450.881 $18,317.957 $18,773.679 $19,362.701 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,689.212 -$1,773.809 $1,762.536 -$1,587.633 Subtotal $16,761.669 $16,544.148 $20,536.215 $17,775.068 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $16,594.052 $16,378.707 $20,330.853 $17,597.317 Contribution factor 10.2% 10.9% 10.5% 9.1% Contribution factor times contribution base $1,692.593 $1,785.279 $2,134.740 $1,601.356 Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2007/ 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 - 34 Universal Service Program Requirements and Contribution Factors for 2007 (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 $354.150 $364.112 $372.220 Local Switching Support $122.527 $123.551 $126.710 Interstate Common Line Support $322.713 $330.271 $385.810 Interstate Access Support Mechanism $180.087 $181.671 $177.310 Forward-Looking High Cost Mechanism $86.616 $86.902 $86.780 Prior Period True-ups -$104.433 $13.680 $27.910 Administrative expenses $7.928 $9.252 $6.150 Interest income 1 -$8.975 -$6.048 -$4.510 Program Total $960.613 $1,103.391 $1,178.380 Low Income Lifeline Assistance $192.318 $185.937 $191.790 Link-Up $9.006 $8.750 $7.400 Incremental Toll Limitation $2.333 $2.273 $2.440 Prior Period true-ups -$33.901 $2.734 -$24.820 Administrative expenses $2.407 $2.488 $1.660 Interest income 1 -$3.592 -$2.798 -$2.700 Program Total $168.571 $199.384 $175.770 Rural Health Rural Health Care Support $39.440 $40.796 $25.140 Prior Period True-ups -$2.919 -$0.029 $13.990 Administrative expenses $1.874 $2.209 $1.550 Interest income 1 -$0.729 -$0.643 -$0.740 Program Total $37.666 $42.333 $39.940 Schools and Libraries Schools and Libraries Support $562.500 $562.500 $562.500 Prior Period True-ups 2 -$70.037 -$3.883 -$35.730 Administrative expenses $21.565 $23.348 $18.710 Interest income 1 -$37.527 -$47.395 -$53.420 Program Total $476.501 $534.570 $492.060 Grand Total $1,643.351 $1,879.678 $1,886.150 Applicable interstate and international end-user revenues Reported contribution base revenues $18,549.119 $18,013.566 $18,566.483 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,621.786 -$1,856.330 -$1,867.440 Subtotal $16,927.333 $16,157.236 $16,699.043 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $16,758.060 $15,995.664 $16,532.053 Contribution factor 9.7% 11.7% 11.3% Contribution factor times contribution base $1,625.532 $1,871.493 $1,868.122 Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2007/ 1 Interest income is shown as negative because it is subtracted from expenses to yield the total. 2 For the schools and 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 $4,096 61.8 % High-Cost Loop Support 1,309 19.8 Safety Net Additive Support 29 0.4 Safety-Valve 1 0.0 High-Cost Model Support 358 5.4 Long Term Support 4 0.1 Interstate Common Line Support 1,266 19.1 Interstate Access Support 681 10.3 Local Switching Support 448 6.8 Low-Income Support 820 12.4 School and Libraries 1,669 25.2 Rural Health Care 41 0.6 All Universal Service Support $6,626 100.0 % Distribution of Universal Service Payments: 2006 Chart 1.1 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 2006. 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: 2006 (Dollars in Millions) Disbursements Low Income 12.4% High Cost 61.8% Rural Health Care 0.6% Schools & Libraries 25.2% 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 $115,971 $4,203 $22,845 $287 $143,306 2.16% $100,753 1.50% $42,553 Alaska 153,586 12,442 19,663 24,188 209,879 3.17% 22,002 0.33% 187,877 American Samoa 2,736 56 0 0 2,792 0.04% 249 0.00% 2,543 Arizona 83,015 21,875 32,072 1,670 138,632 2.09% 127,607 1.90% 11,025 Arkansas 132,506 2,742 12,284 78 147,610 2.23% 60,848 0.91% 86,762 California 106,058 292,343 212,024 500 610,925 9.22% 730,849 10.88% -119,924 Colorado 79,538 3,346 21,713 140 104,737 1.58% 121,905 1.82% -17,168 Connecticut 2,148 5,048 22,574 0 29,770 0.45% 102,686 1.53% -72,916 Delaware 261 246 748 0 1,255 0.02% 25,757 0.38% -24,502 Dist. of Columbia 0 927 11,050 0 11,977 0.18% 32,689 0.49% -20,712 Florida 81,607 17,752 52,923 141 152,423 2.30% 469,930 7.00% -317,507 Georgia 107,717 9,080 53,197 395 170,389 2.57% 217,680 3.24% -47,291 Guam 16,705 356 4,362 0 21,423 0.32% 3,935 0.06% 17,488 Hawaii 40,797 605 2,396 157 43,955 0.66% 27,938 0.42% 16,017 Idaho 52,130 3,982 3,272 121 59,505 0.90% 33,796 0.50% 25,709 Illinois 67,769 9,503 75,724 668 153,664 2.32% 275,354 4.10% -121,690 Indiana 63,457 5,924 17,684 130 87,195 1.32% 126,200 1.88% -39,005 Iowa 105,625 6,847 10,158 253 122,883 1.85% 61,954 0.92% 60,929 Kansas 190,190 3,117 12,604 193 206,104 3.11% 58,993 0.88% 147,111 Kentucky 99,107 8,027 18,986 349 126,469 1.91% 84,622 1.26% 41,847 Louisiana 126,983 10,598 41,463 209 179,253 2.71% 94,640 1.41% 84,613 Maine 36,951 8,577 6,699 13 52,240 0.79% 31,423 0.47% 20,817 Maryland 4,547 512 11,627 0 16,686 0.25% 152,393 2.27% -135,707 Massachusetts 2,827 13,045 25,069 37 40,978 0.62% 156,510 2.33% -115,532 Michigan 58,938 14,787 36,223 819 110,767 1.67% 193,406 2.88% -82,639 Minnesota 119,894 7,783 20,399 1,549 149,625 2.26% 107,048 1.59% 42,577 Mississippi 276,033 5,327 34,097 98 315,555 4.76% 60,094 0.89% 255,461 Missouri 86,089 6,905 28,909 82 121,985 1.84% 128,950 1.92% -6,965 Montana 78,159 3,690 3,275 391 85,515 1.29% 23,457 0.35% 62,058 Nebraska 81,771 2,520 7,108 1,132 92,531 1.40% 37,456 0.56% 55,075 Nevada 31,254 3,738 5,062 29 40,083 0.60% 65,681 0.98% -25,598 New Hampshire 8,077 618 1,432 7 10,134 0.15% 35,867 0.53% -25,733 New Jersey 1,279 14,485 34,019 0 49,783 0.75% 247,748 3.69% -197,965 New Mexico 65,528 13,413 49,127 324 128,392 1.94% 44,762 0.67% 83,630 New York 48,922 42,636 111,613 25 203,196 3.07% 413,887 6.16% -210,691 North Carolina 81,469 14,685 54,029 271 150,454 2.27% 201,024 2.99% -50,570 North Dakota 80,903 4,261 4,482 692 90,338 1.36% 14,892 0.22% 75,446 Northern Mariana Is. 816 87 1,082 0 1,985 0.03% 1,051 0.02% 934 Ohio 41,582 34,436 61,504 234 137,756 2.08% 230,522 3.43% -92,766 Oklahoma 123,629 42,990 31,630 169 198,418 2.99% 73,973 1.10% 124,445 Oregon 72,250 6,425 9,690 19 88,384 1.33% 81,119 1.21% 7,265 Pennsylvania 65,514 14,222 63,940 16 143,692 2.17% 280,967 4.18% -137,275 Puerto Rico 123,321 13,883 25,873 0 163,077 2.46% 57,810 0.86% 105,267 Rhode Island 35 4,033 3,793 0 7,861 0.12% 21,882 0.33% -14,021 South Carolina 81,895 3,145 40,193 47 125,280 1.89% 97,199 1.45% 28,081 South Dakota 89,471 7,886 600 850 98,807 1.49% 16,639 0.25% 82,168 Tennessee 51,814 6,396 51,578 196 109,984 1.66% 130,517 1.94% -20,533 Texas 230,723 71,720 213,749 457 516,649 7.80% 445,509 6.63% 71,140 Utah 24,174 3,567 14,258 703 42,702 0.64% 50,314 0.75% -7,612 Vermont 30,838 2,954 1,399 89 35,280 0.53% 17,433 0.26% 17,847 Virgin Islands 25,250 58 849 43 26,200 0.40% 7,745 0.12% 18,455 Virginia 79,510 2,290 24,314 308 106,422 1.61% 193,667 2.88% -87,245 Washington 102,763 19,122 13,774 54 135,713 2.05% 142,810 2.13% -7,097 West Virginia 70,341 707 8,674 98 79,820 1.20% 42,958 0.64% 36,862 Wisconsin 134,209 9,139 19,307 2,287 164,942 2.49% 113,556 1.69% 51,386 Wyoming 57,637 1,295 1,940 80 60,952 0.92% 15,116 0.23% 45,836 Total $4,096,319 $820,356 $1,669,059 $40,598 $6,626,332 100.00% $6,715,770 100.00% -$89,438 2 Estimated contributions include administrative cost of approximately $89 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: 2006 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 Table 1.13 Total Telecommunications Revenues: 2005 (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 $1,218 $2,434 $3,651 $521 $415 $935 $1,738 $2,848 $4,587 1.54 % Alaska 266 382 648 115 68 183 380 450 831 0.28 American Samoa 3 11 14 1 2 3 4 13 17 0.01 Arizona 1,542 2,526 4,069 628 430 1,059 2,171 2,957 5,127 1.72 Arkansas 735 1,406 2,142 323 245 568 1,058 1,651 2,709 0.91 California 8,834 18,812 27,645 3,703 3,694 7,397 12,537 22,505 35,042 11.76 Colorado 1,473 2,442 3,915 676 422 1,098 2,149 2,864 5,013 1.68 Connecticut 1,241 1,897 3,138 531 260 791 1,772 2,157 3,929 1.32 Delaware 311 504 815 132 67 198 443 571 1,014 0.34 Dist. of Columbia 395 685 1,080 218 99 317 613 784 1,397 0.47 Florida 5,680 9,952 15,632 2,439 1,847 4,286 8,119 11,799 19,918 6.69 Georgia 2,631 4,974 7,605 1,263 790 2,053 3,894 5,763 9,657 3.24 Guam 48 64 111 20 11 32 68 75 143 0.05 Hawaii 338 652 989 133 107 240 471 759 1,229 0.41 Idaho 408 594 1,002 189 109 297 597 702 1,300 0.44 Illinois 3,328 6,474 9,802 1,309 1,002 2,311 4,637 7,476 12,113 4.07 Indiana 1,525 2,753 4,278 609 501 1,110 2,134 3,254 5,389 1.81 Iowa 749 1,267 2,016 331 282 614 1,080 1,550 2,630 0.88 Kansas 713 1,250 1,963 327 198 525 1,040 1,448 2,488 0.84 Kentucky 1,023 2,043 3,066 430 361 790 1,453 2,404 3,856 1.29 Louisiana 1,144 2,426 3,570 466 394 860 1,610 2,820 4,430 1.49 Maine 380 755 1,134 175 116 291 555 870 1,425 0.48 Maryland 1,842 3,286 5,128 788 524 1,313 2,630 3,811 6,441 2.16 Massachusetts 1,892 3,704 5,595 836 531 1,366 2,728 4,234 6,962 2.34 Michigan 2,338 4,955 7,293 888 908 1,796 3,225 5,864 9,089 3.05 Minnesota 1,294 2,358 3,652 577 401 977 1,871 2,759 4,629 1.55 Mississippi 726 1,539 2,265 318 251 569 1,044 1,789 2,834 0.95 Missouri 1,559 2,858 4,417 689 644 1,333 2,248 3,502 5,750 1.93 Montana 284 411 695 122 95 217 406 506 912 0.31 Nebraska 453 879 1,332 222 195 417 675 1,074 1,749 0.59 Nevada 794 1,128 1,922 326 159 485 1,120 1,287 2,407 0.81 New Hampshire 434 740 1,173 181 120 301 615 859 1,474 0.49 New Jersey 2,994 5,374 8,368 1,276 849 2,125 4,270 6,222 10,493 3.52 New Mexico 541 824 1,365 241 169 410 782 992 1,775 0.60 New York 5,003 10,551 15,554 2,278 1,892 4,170 7,281 12,444 19,724 6.62 North Carolina 2,430 4,341 6,771 1,036 751 1,787 3,466 5,092 8,558 2.87 North Dakota 180 312 492 89 65 153 269 376 645 0.22 N. Mariana Islands 13 22 35 5 4 9 18 26 45 0.01 Ohio 2,786 5,732 8,518 1,150 1,068 2,218 3,936 6,800 10,736 3.60 Oklahoma 894 1,627 2,521 405 259 664 1,299 1,886 3,185 1.07 Oregon 980 1,600 2,580 432 280 712 1,412 1,879 3,292 1.10 Pennsylvania 3,396 6,128 9,524 1,483 1,158 2,641 4,879 7,286 12,166 4.08 Puerto Rico 699 1,396 2,095 255 187 442 954 1,583 2,537 0.85 Rhode Island 264 517 782 104 77 181 369 594 963 0.32 South Carolina 1,175 2,228 3,403 505 399 904 1,680 2,627 4,306 1.45 South Dakota 201 345 546 89 77 166 290 422 712 0.24 Tennessee 1,578 3,050 4,628 653 458 1,110 2,230 3,508 5,738 1.93 Texas 5,385 12,060 17,445 2,376 2,342 4,718 7,760 14,402 22,162 7.44 Utah 608 1,013 1,621 269 172 440 877 1,185 2,062 0.69 Vermont 211 306 517 95 50 146 306 357 663 0.22 Virgin Islands 94 68 161 40 12 52 134 80 214 0.07 Virginia 2,341 3,995 6,336 1,067 731 1,798 3,408 4,726 8,134 2.73 Washington 1,726 2,956 4,682 753 569 1,323 2,480 3,525 6,005 2.02 West Virginia 519 829 1,348 230 154 384 749 983 1,732 0.58 Wisconsin 1,373 2,611 3,984 546 470 1,017 1,919 3,082 5,000 1.68 Wyoming 183 265 448 89 48 136 271 313 584 0.20 Total $81,173 $154,310 $235,483 $34,953 $27,486 $62,439 $116,125 $181,796 $297,921 100.00 % Note: Figures may not add due to rounding. 1 - 38 Table 1.14 2005 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 $53,139 $9,135 $77,574 $0 $0 $14,462 $154,310 Interstate 415 5,189 23,153 11,544 6,004 34,868 81,172 Intrastate + Interstate 53,554 14,324 100,727 11,544 6,004 49,330 235,482 Carriers' Carrier Revenues Intrastate 9,833 2,223 5,231 0 6,644 3,557 27,486 Interstate 4,508 2,021 1,100 0 15,101 12,223 34,952 Intrastate + Interstate 14,341 4,244 6,331 0 21,744 15,779 62,439 Total Revenues Intrastate 62,971 11,358 82,805 0 6,644 18,019 181,796 Interstate 4,923 7,210 24,253 11,544 21,104 47,091 116,125 Intrastate + Interstate 67,894 18,568 107,058 11,544 27,748 65,110 297,921 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: 2005 (June 2007). 1 - 39 Table 1.15 Intrastate Telecommunications Revenues: 2005 Total: End User + Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $1,176 $131 $1,225 77 $31 $209 $2,848 Alaska NA NA NA NA NA NA 450 American Samoa NA NA NA NA NA NA 13 Arizona 889 288 1,528 103 6 143 2,957 Arkansas 596 61 724 66 91 113 1,651 California 6,507 1,343 10,595 1,153 505 2,402 22,505 Colorado 1,127 166 1,315 92 7 157 2,864 Connecticut 838 105 1,004 39 146 24 2,157 Delaware 189 41 306 5 10 20 571 District of Columbia 382 74 322 4 0 2 784 Florida 4,206 581 5,418 503 152 939 11,799 Georgia 2,365 344 2,594 115 45 300 5,763 Guam NA NA NA NA NA NA 75 Hawaii 276 13 403 28 6 34 759 Idaho 265 26 335 30 4 43 702 Illinois 2,380 534 3,694 199 290 379 7,476 Indiana 1,219 164 1,411 126 75 258 3,254 Iowa 531 72 686 105 6 150 1,550 Kansas 533 121 663 28 17 87 1,448 Kentucky 957 101 1,075 81 17 173 2,404 Louisiana 1,058 153 1,291 60 24 234 2,820 Maine 335 56 338 10 44 86 870 Maryland 1,309 239 1,799 87 81 296 3,811 Massachusetts 1,342 363 1,859 24 208 438 4,234 Michigan 1,785 494 2,687 264 232 402 5,864 Minnesota 941 214 1,346 86 5 168 2,759 Mississippi 820 58 701 28 24 158 1,789 Missouri 1,249 151 1,500 242 26 334 3,502 Montana 206 14 201 36 2 46 506 Nebraska 373 76 465 72 6 82 1,074 Nevada 472 62 692 20 3 39 1,287 New Hampshire 251 73 395 20 36 85 859 New Jersey 1,707 463 3,131 172 256 493 6,222 New Mexico 395 25 442 57 4 70 992 New York 4,390 1,191 5,126 351 173 1,212 12,444 North Carolina 1,940 209 2,367 168 45 363 5,092 North Dakota 134 23 167 21 1 30 376 N. Mariana Islands NA NA NA NA NA NA 26 Ohio 2,485 327 3,039 287 105 557 6,800 Oklahoma 720 109 862 44 41 110 1,886 Oregon 672 87 917 69 9 127 1,879 Pennsylvania 2,249 626 3,162 303 211 735 7,286 Puerto Rico 550 56 863 31 66 17 1,583 Rhode Island 156 89 282 5 12 49 594 South Carolina 1,101 97 1,117 91 34 187 2,627 South Dakota 129 43 187 29 2 32 422 Tennessee 1,393 179 1,633 51 45 206 3,508 Texas 5,344 777 6,204 674 228 1,176 14,402 Utah 361 94 610 40 5 75 1,185 Vermont 158 20 127 8 18 26 357 Virginia 1,531 353 2,111 170 76 485 4,726 Virgin Islands NA NA NA NA NA NA 80 Washington 1,121 168 1,721 177 33 304 3,525 West Virginia 442 39 354 33 26 89 983 Wisconsin 1,067 215 1,375 125 98 203 3,082 Wyoming 125 10 142 12 1 22 313 Total 2/ $62,971 $11,358 $82,804 $6,643 $3,600 $14,419 $181,796 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: 2005 - Continued (Dollars in Millions) End User Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $992 $106 $1,147 $0 $31 $157 $2,434 Alaska NA NA NA NA NA NA 382 American Samoa NA NA NA NA NA NA 11 Arizona 750 232 1,431 0 6 107 2,526 Arkansas 503 49 678 0 91 85 1,406 California 5,491 1,080 9,926 0 505 1,810 18,812 Colorado 951 133 1,232 0 7 118 2,442 Connecticut 707 85 941 0 146 18 1,897 Delaware 159 33 287 0 10 15 504 District of Columbia 322 60 301 0 0 2 685 Florida 3,549 468 5,075 0 152 708 9,952 Georgia 1,995 277 2,430 0 45 226 4,974 Guam NA NA NA NA NA NA 64 Hawaii 233 10 377 0 6 26 652 Idaho 224 21 314 0 4 32 594 Illinois 2,009 429 3,460 0 290 286 6,474 Indiana 1,029 132 1,322 0 75 195 2,753 Iowa 448 58 643 0 6 113 1,267 Kansas 450 97 621 0 17 65 1,250 Kentucky 808 81 1,007 0 17 130 2,043 Louisiana 893 123 1,210 0 24 177 2,426 Maine 283 45 317 0 44 65 755 Maryland 1,105 192 1,686 0 81 223 3,286 Massachusetts 1,133 292 1,742 0 208 330 3,704 Michigan 1,506 397 2,517 0 232 303 4,955 Minnesota 794 172 1,261 0 5 126 2,358 Mississippi 692 47 657 0 24 119 1,539 Missouri 1,054 121 1,405 0 26 251 2,858 Montana 174 12 189 0 2 35 411 Nebraska 315 61 435 0 6 62 879 Nevada 398 50 648 0 3 30 1,128 New Hampshire 212 58 370 0 36 64 740 New Jersey 1,441 372 2,933 0 256 371 5,374 New Mexico 333 20 414 0 4 53 824 New York 3,705 958 4,802 0 173 913 10,551 North Carolina 1,637 168 2,218 0 45 274 4,341 North Dakota 113 18 157 0 1 22 312 N. Mariana Islands NA NA NA NA NA NA 22 Ohio 2,097 263 2,847 0 105 419 5,732 Oklahoma 608 88 807 0 41 83 1,627 Oregon 567 70 859 0 9 95 1,600 Pennsylvania 1,898 503 2,962 0 211 554 6,128 Puerto Rico 464 45 808 0 66 13 1,396 Rhode Island 132 72 264 0 12 37 517 South Carolina 929 78 1,046 0 34 141 2,228 South Dakota 109 34 176 0 2 24 345 Tennessee 1,176 144 1,530 0 45 155 3,050 Texas 4,509 625 5,812 0 228 886 12,060 Utah 305 75 571 0 5 56 1,013 Vermont 133 16 119 0 18 19 306 Virginia 1,292 284 1,977 0 76 366 3,995 Virgin Islands NA NA NA NA NA NA 68 Washington 946 135 1,612 0 33 229 2,956 West Virginia 373 32 331 0 26 67 829 Wisconsin 900 173 1,288 0 98 153 2,611 Wyoming 106 8 133 0 1 17 265 Total 2/ $53,138 $9,135 $77,573 $0 $3,600 $10,862 $154,310 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: 2005 - Continued (Dollars in Millions) Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $184 $26 $77 $77 $0 $52 $415 Alaska NA NA NA NA NA NA 68 American Samoa NA NA NA NA NA NA 2 Arizona 139 56 97 103 0 35 430 Arkansas 93 12 46 66 0 28 245 California 1,016 263 669 1,153 0 593 3,694 Colorado 176 32 83 92 0 39 422 Connecticut 131 21 63 39 0 6 260 Delaware 29 8 19 5 0 5 67 District of Columbia 60 15 20 4 0 1 99 Florida 657 114 342 503 0 232 1,847 Georgia 369 67 164 115 0 74 790 Guam NA NA NA NA NA NA 11 Hawaii 43 3 25 28 0 8 107 Idaho 41 5 21 30 0 11 109 Illinois 372 104 233 199 0 94 1,002 Indiana 190 32 89 126 0 64 501 Iowa 83 14 43 105 0 37 282 Kansas 83 24 42 28 0 21 198 Kentucky 150 20 68 81 0 43 361 Louisiana 165 30 82 60 0 58 394 Maine 52 11 21 10 0 21 116 Maryland 204 47 114 87 0 73 524 Massachusetts 210 71 117 24 0 108 531 Michigan 279 97 170 264 0 99 908 Minnesota 147 42 85 86 0 41 401 Mississippi 128 11 44 28 0 39 251 Missouri 195 29 95 242 0 82 644 Montana 32 3 13 36 0 11 95 Nebraska 58 15 29 72 0 20 195 Nevada 74 12 44 20 0 10 159 New Hampshire 39 14 25 20 0 21 120 New Jersey 267 91 198 172 0 122 849 New Mexico 62 5 28 57 0 17 169 New York 685 233 324 351 0 299 1,892 North Carolina 303 41 150 168 0 90 751 North Dakota 21 4 11 21 0 7 65 N. Mariana Islands NA NA NA NA NA NA 4 Ohio 388 64 192 287 0 137 1,068 Oklahoma 112 21 54 44 0 27 259 Oregon 105 17 58 69 0 31 280 Pennsylvania 351 122 200 303 0 181 1,158 Puerto Rico 86 11 54 31 0 4 187 Rhode Island 24 17 18 5 0 12 77 South Carolina 172 19 71 91 0 46 399 South Dakota 20 8 12 29 0 8 77 Tennessee 218 35 103 51 0 51 458 Texas 834 152 392 674 0 290 2,342 Utah 56 18 39 40 0 18 172 Vermont 25 4 8 8 0 6 50 Virginia 239 69 133 170 0 120 731 Virgin Islands NA NA NA NA NA NA 12 Washington 175 33 109 177 0 75 569 West Virginia 69 8 22 33 0 22 154 Wisconsin 167 42 87 125 0 50 470 Wyoming 20 2 9 12 0 5 48 Total 2/ $9,832 $2,223 $5,231 $6,643 $0 $3,557 $27,486 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: 2005 (Dollars in Millions) Total: End User + Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $92 $83 $358 $186 $290 $729 $1,738 Alaska NA NA NA NA NA NA 380 American Samoa NA NA NA NA NA NA 4 Arizona 69 183 447 211 364 897 2,171 Arkansas 47 38 212 95 191 476 1,058 California 508 851 3,098 1,153 2,327 4,600 12,537 Colorado 88 105 385 230 439 903 2,149 Connecticut 65 67 294 156 285 904 1,772 Delaware 15 26 90 42 80 191 443 District of Columbia 30 47 94 39 151 252 613 Florida 328 369 1,584 874 1,480 3,483 8,119 Georgia 185 218 759 362 841 1,530 3,894 Guam NA NA NA NA NA NA 68 Hawaii 22 8 118 65 85 173 471 Idaho 21 16 98 61 124 277 597 Illinois 186 338 1,080 415 692 1,926 4,637 Indiana 95 104 413 257 319 946 2,134 Iowa 41 46 201 104 204 484 1,080 Kansas 42 77 194 83 200 446 1,040 Kentucky 75 64 314 160 244 596 1,453 Louisiana 83 97 378 169 256 627 1,610 Maine 26 36 99 54 107 234 555 Maryland 102 151 526 243 463 1,144 2,630 Massachusetts 105 230 544 275 531 1,043 2,728 Michigan 139 313 786 335 456 1,196 3,225 Minnesota 73 136 393 176 373 719 1,871 Mississippi 64 37 205 102 163 473 1,044 Missouri 97 95 439 225 422 970 2,248 Montana 16 9 59 49 69 203 406 Nebraska 29 48 136 52 152 257 675 Nevada 37 39 202 82 164 596 1,120 New Hampshire 20 46 115 58 104 272 615 New Jersey 133 293 916 409 825 1,695 4,270 New Mexico 31 16 129 100 157 350 782 New York 343 755 1,499 696 1,424 2,564 7,281 North Carolina 151 132 692 373 613 1,503 3,466 North Dakota 10 15 49 24 62 109 269 N. Mariana Islands NA NA NA NA NA NA 18 Ohio 194 207 889 413 645 1,588 3,936 Oklahoma 56 69 252 120 251 551 1,299 Oregon 52 55 268 152 277 608 1,412 Pennsylvania 176 397 925 535 944 1,903 4,879 Puerto Rico 43 35 252 101 129 393 954 Rhode Island 12 56 82 31 55 131 369 South Carolina 86 61 327 177 279 750 1,680 South Dakota 10 27 55 26 54 118 290 Tennessee 109 114 477 243 363 924 2,230 Texas 417 493 1,814 751 1,449 2,836 7,760 Utah 28 59 178 83 178 350 877 Vermont 12 13 37 32 52 159 306 Virginia 120 223 617 329 696 1,423 3,408 Virgin Islands NA NA NA NA NA NA 134 Washington 88 107 503 262 496 1,025 2,480 West Virginia 34 25 103 83 123 381 749 Wisconsin 83 136 402 204 284 809 1,919 Wyoming 10 6 42 27 60 126 271 Total 2/ $4,922 $7,210 $24,252 $11,544 $21,104 $47,090 $116,125 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: 2005 - Continued (Dollars in Millions) End User Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $8 $60 $342 $186 $83 $540 $1,218 Alaska NA NA NA NA NA NA 266 American Samoa NA NA NA NA NA NA 3 Arizona 6 131 426 211 104 664 1,542 Arkansas 4 28 202 95 54 352 735 California 43 613 2,958 1,153 662 3,406 8,834 Colorado 7 75 367 230 125 668 1,473 Connecticut 6 48 280 156 81 670 1,241 Delaware 1 19 85 42 23 141 311 District of Columbia 3 34 90 39 43 187 395 Florida 28 265 1,512 874 421 2,579 5,680 Georgia 16 157 724 362 239 1,133 2,631 Guam NA NA NA NA NA NA 48 Hawaii 2 6 112 65 24 128 338 Idaho 2 12 93 61 35 205 408 Illinois 16 243 1,031 415 197 1,426 3,328 Indiana 8 75 394 257 91 700 1,525 Iowa 3 33 192 104 58 359 749 Kansas 4 55 185 83 57 330 713 Kentucky 6 46 300 160 69 442 1,023 Louisiana 7 70 360 169 73 464 1,144 Maine 2 26 94 54 30 173 380 Maryland 9 109 502 243 132 847 1,842 Massachusetts 9 166 519 275 151 773 1,892 Michigan 12 225 750 335 130 886 2,338 Minnesota 6 98 376 176 106 532 1,294 Mississippi 5 27 196 102 46 350 726 Missouri 8 69 419 225 120 718 1,559 Montana 1 7 56 49 20 151 284 Nebraska 2 35 130 52 43 191 453 Nevada 3 28 193 82 47 441 794 New Hampshire 2 33 110 58 30 201 434 New Jersey 11 211 874 409 235 1,255 2,994 New Mexico 3 11 123 100 45 259 541 New York 29 543 1,431 696 405 1,899 5,003 North Carolina 13 95 661 373 174 1,113 2,430 North Dakota 1 10 47 24 18 81 180 N. Mariana Islands NA NA NA NA NA NA 13 Ohio 16 149 848 413 183 1,176 2,786 Oklahoma 5 50 241 120 71 408 894 Oregon 4 40 256 152 79 450 980 Pennsylvania 15 285 883 535 269 1,409 3,396 Puerto Rico 4 25 241 101 37 291 699 Rhode Island 1 41 79 31 16 97 264 South Carolina 7 44 312 177 79 555 1,175 South Dakota 1 19 52 26 15 87 201 Tennessee 9 82 456 243 103 685 1,578 Texas 35 354 1,732 751 412 2,100 5,385 Utah 2 43 170 83 51 259 608 Vermont 1 9 36 32 15 118 211 Virginia 10 161 589 329 198 1,054 2,341 Virgin Islands NA NA NA NA NA NA 94 Washington 7 77 480 262 141 759 1,726 West Virginia 3 18 99 83 35 282 519 Wisconsin 7 98 384 204 81 599 1,373 Wyoming 1 5 40 27 17 94 183 Total 2/ $415 $5,189 $23,152 $11,544 $6,004 $34,867 $81,173 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: 2005 - Continued Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $84 $23 $16 $0 $208 $189 $521 Alaska NA NA NA NA NA NA 115 American Samoa NA NA NA NA NA NA 1 Arizona 64 51 20 0 261 233 628 Arkansas 43 11 10 0 136 123 323 California 465 239 141 0 1,665 1,194 3,703 Colorado 81 29 17 0 314 234 676 Connecticut 60 19 13 0 204 235 531 Delaware 13 7 4 0 57 50 132 District of Columbia 27 13 4 0 108 66 218 Florida 301 103 72 0 1,059 904 2,439 Georgia 169 61 34 0 602 397 1,263 Guam NA NA NA NA NA NA 20 Hawaii 20 2 5 0 61 45 133 Idaho 19 5 4 0 89 72 189 Illinois 170 95 49 0 495 500 1,309 Indiana 87 29 19 0 228 245 609 Iowa 38 13 9 0 146 126 331 Kansas 38 21 9 0 143 116 327 Kentucky 68 18 14 0 174 155 430 Louisiana 76 27 17 0 183 163 466 Maine 24 10 4 0 76 61 175 Maryland 94 42 24 0 331 297 788 Massachusetts 96 64 25 0 380 271 836 Michigan 128 88 36 0 326 311 888 Minnesota 67 38 18 0 267 187 577 Mississippi 59 10 9 0 117 123 318 Missouri 89 27 20 0 302 252 689 Montana 15 3 3 0 49 53 122 Nebraska 27 14 6 0 109 67 222 Nevada 34 11 9 0 117 155 326 New Hampshire 18 13 5 0 74 71 181 New Jersey 122 82 42 0 590 440 1,276 New Mexico 28 4 6 0 112 91 241 New York 314 212 68 0 1,019 666 2,278 North Carolina 139 37 31 0 439 390 1,036 North Dakota 10 4 2 0 45 28 89 N. Mariana Islands NA NA NA NA NA NA 5 Ohio 178 58 40 0 462 412 1,150 Oklahoma 51 19 11 0 180 143 405 Oregon 48 15 12 0 198 158 432 Pennsylvania 161 111 42 0 676 494 1,483 Puerto Rico 39 10 11 0 92 102 255 Rhode Island 11 16 4 0 39 34 104 South Carolina 79 17 15 0 200 195 505 South Dakota 9 8 2 0 39 31 89 Tennessee 100 32 22 0 260 240 653 Texas 382 138 82 0 1,037 736 2,376 Utah 26 17 8 0 127 91 269 Vermont 11 4 2 0 38 41 95 Virginia 109 63 28 0 498 369 1,067 Virgin Islands NA NA NA NA NA NA 40 Washington 80 30 23 0 355 266 753 West Virginia 32 7 5 0 88 99 230 Wisconsin 76 38 18 0 204 210 546 Wyoming 9 2 2 0 43 33 89 Total 2/ $4,508 $2,021 $1,100 $0 $15,100 $12,222 $34,953 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: 2005 Average Percent Adjustment Formula Reporting 2/ 100/Average Percent 2005 2005 Reporting Alabama 2,196,302 89.9 % 1.11 Alaska 389,001 0.0 NA American Samoa 10,956 0.0 NA Arizona 2,419,556 91.8 1.09 Arkansas 1,313,238 67.2 1.49 California 20,610,893 98.6 1.01 Colorado 2,474,508 94.8 1.05 Connecticut 1,997,944 98.8 1.01 Delaware 530,802 100.0 1.00 District of Columbia 766,942 100.0 1.00 Florida 9,875,661 98.1 1.02 Georgia 4,416,698 87.8 1.14 Guam 65,044 0.0 NA Hawaii 632,638 99.8 1.00 Idaho 694,630 90.3 1.11 Illinois 6,944,463 95.0 1.05 Indiana 3,317,961 95.3 1.05 Iowa 1,468,226 80.8 1.24 Kansas 1,284,666 82.2 1.22 Kentucky 1,904,145 91.3 1.10 Louisiana 2,002,682 91.4 1.09 Maine 767,662 81.8 1.22 Maryland 3,483,388 99.8 1.00 Massachusetts 3,529,151 99.9 1.00 Michigan 5,105,300 96.0 1.04 Minnesota 2,565,929 69.4 1.44 Mississippi 1,250,753 92.6 1.08 Missouri 3,081,156 90.0 1.11 Montana 480,860 65.4 1.53 Nebraska 764,517 77.4 1.29 Nevada 1,248,633 95.3 1.05 New Hampshire 719,375 92.4 1.08 New Jersey 5,577,359 99.8 1.00 New Mexico 909,041 84.4 1.18 New York 10,230,291 96.3 1.04 North Carolina 4,362,919 89.2 1.12 North Dakota 332,667 51.1 1.96 N. Mariana Islands 22,770 0.0 NA Ohio 5,887,158 94.8 1.05 Oklahoma 1,635,403 79.9 1.25 Oregon 1,855,141 90.6 1.10 Pennsylvania 7,034,040 95.5 1.05 Puerto Rico 1,158,243 100.0 1.00 Rhode Island 431,042 100.0 1.00 South Carolina 2,073,761 71.3 1.40 South Dakota 333,770 57.3 1.74 Tennessee 2,987,705 85.1 1.17 Texas 10,945,498 92.1 1.09 Utah 1,022,713 91.2 1.10 Vermont 397,603 84.1 1.19 Virginia 4,097,788 97.3 1.03 Virgin Islands 68,956 0.0 NA Washington 3,259,380 97.4 1.03 West Virginia 953,275 82.4 1.21 Wisconsin 2,877,855 71.7 1.39 Wyoming 273,429 82.0 1.22 Total 157,041,487 92.5 % 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: 2005 (Dollars in Millions) Revenues Interstate for Total Allocation Revenues Alabama $1,078 1.87 % $992 $8 $1,176 $92 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 815 1.42 750 6 889 69 Arkansas 546 0.95 503 4 596 47 California 5,968 10.37 5,491 43 6,507 508 Colorado 1,034 1.80 951 7 1,127 88 Connecticut 768 1.34 707 6 838 65 Delaware 173 0.30 159 1 189 15 District of Columbia 350 0.61 322 3 382 30 Florida 3,857 6.70 3,549 28 4,206 328 Georgia 2,169 3.77 1,995 16 2,365 185 Guam NA NA NA NA NA NA Hawaii 253 0.44 233 2 276 22 Idaho 243 0.42 224 2 265 21 Illinois 2,183 3.79 2,009 16 2,380 186 Indiana 1,118 1.94 1,029 8 1,219 95 Iowa 487 0.85 448 3 531 41 Kansas 489 0.85 450 4 533 42 Kentucky 878 1.53 808 6 957 75 Louisiana 970 1.69 893 7 1,058 83 Maine 307 0.53 283 2 335 26 Maryland 1,200 2.09 1,105 9 1,309 102 Massachusetts 1,231 2.14 1,133 9 1,342 105 Michigan 1,637 2.84 1,506 12 1,785 139 Minnesota 863 1.50 794 6 941 73 Mississippi 752 1.31 692 5 820 64 Missouri 1,145 1.99 1,054 8 1,249 97 Montana 189 0.33 174 1 206 16 Nebraska 342 0.59 315 2 373 29 Nevada 433 0.75 398 3 472 37 New Hampshire 230 0.40 212 2 251 20 New Jersey 1,566 2.72 1,441 11 1,707 133 New Mexico 362 0.63 333 3 395 31 New York 4,026 7.00 3,705 29 4,390 343 North Carolina 1,779 3.09 1,637 13 1,940 151 North Dakota 123 0.21 113 1 134 10 Northern Mariana Islands NA NA NA NA NA NA Ohio 2,279 3.96 2,097 16 2,485 194 Oklahoma 660 1.15 608 5 720 56 Oregon 616 1.07 567 4 672 52 Pennsylvania 2,063 3.58 1,898 15 2,249 176 Puerto Rico 505 0.88 464 4 550 43 Rhode Island 143 0.25 132 1 156 12 South Carolina 1,010 1.75 929 7 1,101 86 South Dakota 119 0.21 109 1 129 10 Tennessee 1,278 2.22 1,176 9 1,393 109 Texas 4,901 8.52 4,509 35 5,344 417 Utah 331 0.58 305 2 361 28 Vermont 145 0.25 133 1 158 12 Virginia 1,404 2.44 1,292 10 1,531 120 Virgin Islands NA NA NA NA NA NA Washington 1,028 1.79 946 7 1,121 88 West Virginia 405 0.70 373 3 442 34 Wisconsin 978 1.70 900 7 1,067 83 Wyoming 115 0.20 106 1 125 10 Total 1/ $57,548 100.00 % $53,138 $415 $62,971 $4,922 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. Total Intrastate End-User Intrastate Percentage Revenues Interstate End-User RevenuesRevenues Allocation 1 - 47 Table 1.19 Information for Allocating CLEC Revenues: 2005 (Dollars in Millions) CLEC Allocation Interstate Interstate Intrastate Intrastate Lines Percentage End-User Total End-User Total Jun 05 1/ Revenues Revenues Revenues Revenues Alabama 393,856 1.16 % $60 $83 $106 $131 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 864,526 2.55 131 183 232 288 Arkansas 181,656 0.53 28 38 49 61 California 4,030,126 11.87 613 851 1,080 1,343 Colorado 496,728 1.46 75 105 133 166 Connecticut 316,131 0.93 48 67 85 105 Delaware 121,800 0.36 19 26 33 41 District of Columbia 222,977 0.66 34 47 60 74 Florida 1,744,981 5.14 265 369 468 581 Georgia 1,032,383 3.04 157 218 277 344 Guam NA NA NA NA NA NA Hawaii 38,447 0.11 6 8 10 13 Idaho 77,018 0.23 12 16 21 26 Illinois 1,601,784 4.72 243 338 429 534 Indiana 493,450 1.45 75 104 132 164 Iowa 216,229 0.64 33 46 58 72 Kansas 362,494 1.07 55 77 97 121 Kentucky 302,425 0.89 46 64 81 101 Louisiana 459,748 1.35 70 97 123 153 Maine 168,895 0.50 26 36 45 56 Maryland 716,741 2.11 109 151 192 239 Massachusetts 1,089,068 3.21 166 230 292 363 Michigan 1,482,865 4.37 225 313 397 494 Minnesota 643,452 1.89 98 136 172 214 Mississippi 174,913 0.52 27 37 47 58 Missouri 451,936 1.33 69 95 121 151 Montana 43,205 0.13 7 9 12 14 Nebraska 228,138 0.67 35 48 61 76 Nevada 185,347 0.55 28 39 50 62 New Hampshire 217,847 0.64 33 46 58 73 New Jersey 1,389,235 4.09 211 293 372 463 New Mexico 75,643 0.22 11 16 20 25 New York 3,574,947 10.53 543 755 958 1,191 North Carolina 627,184 1.85 95 132 168 209 North Dakota 68,767 0.20 10 15 18 23 N. Mariana Islands NA NA NA NA NA NA Ohio 981,363 2.89 149 207 263 327 Oklahoma 328,505 0.97 50 69 88 109 Oregon 260,065 0.77 40 55 70 87 Pennsylvania 1,877,661 5.53 285 397 503 626 Puerto Rico * 0.49 25 35 45 56 Rhode Island 267,486 0.79 41 56 72 89 South Carolina 290,102 0.85 44 61 78 97 South Dakota 128,053 0.38 19 27 34 43 Tennessee 538,227 1.58 82 114 144 179 Texas 2,332,263 6.87 354 493 625 777 Utah 280,696 0.83 43 59 75 94 Vermont 60,569 0.18 9 13 16 20 Virginia 1,058,163 3.12 161 223 284 353 Virgin Islands NA NA NA NA NA NA Washington 505,432 1.49 77 107 135 168 West Virginia 117,620 0.35 18 25 32 39 Wisconsin 644,787 1.90 98 136 173 215 Wyoming 30,425 0.09 5 6 8 10 Total 3/ 33,975,336 100.00 % $5,189 $7,210 $9,135 $11,358 NA - Not Applicable. * Data withheld to maintain firms confidentiality. Allocation percentage based on Puerto Rico's personal income. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (January 2007). 2/ Totals in the last four columns include revenues for locations not estimated. 1 - 48 Table 1.20 Information for Allocating Mobile Wireless Revenues: 2005 Alabama 2,843 1.48 % $1,147 $342 $1,225 $358 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 3,547 1.85 1,431 426 1,528 447 Arkansas 1,681 0.88 678 202 724 212 California 24,598 12.84 9,926 2,958 10,595 3,098 Colorado 3,053 1.59 1,232 367 1,315 385 Connecticut 2,332 1.22 941 280 1,004 294 Delaware 711 0.37 287 85 306 90 District of Columbia 747 0.39 301 90 322 94 Florida 12,578 6.57 5,075 1,512 5,418 1,584 Georgia 6,023 3.14 2,430 724 2,594 759 Guam NA NA NA NA NA NA Hawaii 935 0.49 377 112 403 118 Idaho 777 0.41 314 93 335 98 Illinois 8,575 4.48 3,460 1,031 3,694 1,080 Indiana 3,277 1.71 1,322 394 1,411 413 Iowa 1,594 0.83 643 192 686 201 Kansas 1,539 0.80 621 185 663 194 Kentucky 2,495 1.30 1,007 300 1,075 314 Louisiana 2,998 1.56 1,210 360 1,291 378 Maine 786 0.41 317 94 338 99 Maryland 4,178 2.18 1,686 502 1,799 526 Massachusetts 4,316 2.25 1,742 519 1,859 544 Michigan 6,239 3.26 2,517 750 2,687 786 Minnesota 3,124 1.63 1,261 376 1,346 393 Mississippi 1,628 0.85 657 196 701 205 Missouri 3,483 1.82 1,405 419 1,500 439 Montana 468 0.24 189 56 201 59 Nebraska 1,079 0.56 435 130 465 136 Nevada 1,606 0.84 648 193 692 202 New Hampshire 917 0.48 370 110 395 115 New Jersey 7,269 3.79 2,933 874 3,131 916 New Mexico 1,025 0.54 414 123 442 129 New York 11,901 6.21 4,802 1,431 5,126 1,499 North Carolina 5,496 2.87 2,218 661 2,367 692 North Dakota 389 0.20 157 47 167 49 N. Mariana Islands NA NA NA NA NA NA Ohio 7,057 3.68 2,847 848 3,039 889 Oklahoma 2,001 1.04 807 241 862 252 Oregon 2,129 1.11 859 256 917 268 Pennsylvania 7,341 3.83 2,962 883 3,162 925 Puerto Rico 2,003 1.05 808 241 863 252 Rhode Island 654 0.34 264 79 282 82 South Carolina 2,593 1.35 1,046 312 1,117 327 South Dakota 435 0.23 176 52 187 55 Tennessee 3,791 1.98 1,530 456 1,633 477 Texas 14,403 7.52 5,812 1,732 6,204 1,814 Utah 1,416 0.74 571 170 610 178 Vermont 296 0.15 119 36 127 37 Virginia 4,900 2.56 1,977 589 2,111 617 Virgin Islands NA NA NA NA NA NA Washington 3,995 2.09 1,612 480 1,721 503 West Virginia 821 0.43 331 99 354 103 Wisconsin 3,191 1.67 1,288 384 1,375 402 Wyoming 331 0.17 133 40 142 42 Total 2/ 192,053 100.00 % $77,573 $23,152 $82,804 $24,252 NA - Not Applicable. * Data withheld to maintain firms confidentiality. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (January 2007). 2/ Totals in the last four columns include revenues for locations not estimated. (Dollars in Millions) Revenues Intrastate Total Interstate Subscribers Allocation Percentage Wireless Revenues Revenues Interstate End-User Intrastate End-User Revenues Total Jun 05 1/ 1 - 49 Table 1.21 Information for Allocating Subscriber Line Charges' (SLCs) Revenues: 2005 Allocation Residential Percentage SLC 3/ Alabama 1,377,717 79,421 449,748 $6.50 $6.79 $7.30 $153 1.62 % $186 Alaska NA NA NA NA NA NA NA NA NA American Samoa NA NA NA NA NA NA NA NA NA Arizona 1,370,607 161,757 726,356 6.33 6.36 6.56 174 1.83 211 Arkansas 711,513 40,051 352,940 5.66 5.25 6.54 79 0.83 95 California 6,922,377 2,348,972 6,365,335 4.93 5.02 5.23 950 10.04 1,153 Colorado 1,407,508 206,725 681,880 6.50 7.00 7.66 190 2.00 230 Connecticut 1,045,266 224,226 543,451 5.79 5.78 6.26 129 1.36 156 Delaware 277,389 33,765 136,552 6.44 6.44 6.44 35 0.37 42 Dist. of Columbia 177,737 30,612 491,702 3.85 3.85 3.85 32 0.34 39 Florida 5,918,463 675,210 2,294,085 6.50 6.76 7.43 721 7.61 874 Georgia 2,338,435 226,086 1,130,753 6.50 6.76 7.23 299 3.16 362 Guam NA NA NA NA NA NA NA NA NA Hawaii 390,718 54,521 194,728 6.50 7.00 8.10 54 0.57 65 Idaho 413,493 35,031 185,440 6.36 6.49 7.16 50 0.53 61 Illinois 3,256,757 425,734 2,075,702 4.81 4.82 5.20 342 3.61 415 Indiana 1,857,952 137,093 844,748 5.90 6.01 6.97 212 2.24 257 Iowa 859,824 51,391 347,872 5.42 5.34 6.40 86 0.91 104 Kansas 634,256 41,818 329,314 5.48 5.43 5.98 68 0.72 83 Kentucky 1,151,888 49,196 440,174 6.37 6.66 7.48 132 1.39 160 Louisiana 1,131,706 102,422 515,398 6.50 6.76 6.98 140 1.48 169 Maine 394,635 24,761 148,735 6.42 6.40 6.91 45 0.47 54 Maryland 1,683,871 234,879 1,024,735 5.67 5.67 5.68 200 2.12 243 Massachusetts 1,779,779 197,790 971,865 6.40 6.40 6.40 227 2.39 275 Michigan 2,411,977 188,422 1,428,926 5.56 5.59 5.99 276 2.92 335 Minnesota 1,431,895 102,747 613,670 5.39 5.25 6.25 145 1.53 176 Mississippi 729,776 41,411 288,870 6.50 6.76 6.94 84 0.89 102 Missouri 1,819,262 158,230 726,575 5.57 5.52 6.11 185 1.96 225 Montana 316,048 15,519 131,936 6.50 7.00 9.20 41 0.43 49 Nebraska 371,800 18,233 248,197 5.24 5.08 6.15 43 0.45 52 Nevada 750,304 87,209 355,246 4.46 4.43 5.29 67 0.71 82 New Hampshire 425,392 39,748 147,093 6.41 6.40 6.62 47 0.50 58 New Jersey 2,327,195 621,404 1,521,569 6.25 6.25 6.35 337 3.56 409 New Mexico 621,280 52,071 268,334 6.50 7.00 9.20 82 0.87 100 New York 4,210,586 598,753 2,583,300 6.34 6.36 6.69 574 6.06 696 North Carolina 2,716,242 208,094 1,008,019 6.27 6.41 7.23 308 3.25 373 North Dakota 148,308 4,208 73,507 6.50 7.00 8.60 20 0.21 24 N. Mariana Islands NA NA NA NA NA NA NA NA NA Ohio 3,237,028 239,234 1,392,397 5.66 5.68 6.25 341 3.60 413 Oklahoma 952,775 76,278 428,319 5.50 5.37 6.04 99 1.04 120 Oregon 1,068,365 90,793 364,865 6.50 6.87 7.81 125 1.32 152 Pennsylvania 3,997,749 454,802 1,522,594 5.99 5.98 6.65 441 4.66 535 Puerto Rico 793,756 0 217,239 6.25 0.00 9.20 84 0.88 101 Rhode Island 209,307 18,550 107,163 6.40 6.40 6.40 26 0.27 31 South Carolina 1,280,498 63,074 458,718 6.46 6.72 7.55 146 1.54 177 South Dakota 142,090 5,715 106,557 6.46 6.43 7.63 21 0.22 26 Tennessee 1,836,933 129,636 583,256 6.38 6.61 7.05 200 2.12 243 Texas 5,445,861 712,218 2,793,989 5.56 5.61 6.21 619 6.54 751 Utah 562,978 60,050 268,646 6.32 6.32 6.56 68 0.72 83 Vermont 228,633 16,326 92,605 6.42 6.40 6.85 26 0.28 32 Virginia 2,117,694 225,999 1,195,243 6.20 6.27 6.75 271 2.87 329 Virgin Islands NA NA NA NA NA NA NA NA NA Washington 1,877,742 212,216 757,030 6.07 6.17 6.99 216 2.28 262 West Virginia 640,711 21,656 162,401 6.50 7.00 8.46 68 0.72 83 Wisconsin 1,507,675 97,443 754,393 5.66 5.41 6.55 168 1.77 204 Wyoming 145,336 7,780 91,117 6.50 7.00 9.20 22 0.23 27 Total 3/ 78,620,196 9,949,280 40,943,292 $5.97 $5.83 $6.38 $9,468 100.00 % $11,544 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. Multiline SLCLines 2/ Business Multilines SLCs (Millions) Average Additional Line SLC Interstate (Millions) AllocationBusiness Revenues forAdditional Residential Average Lines & Single Line Business 1/ Primary Residential Average 1 - 50 Table 1.22 Gross Access SLCs Revenues Allocation Interstate Interstate Revenues for for Percentage End-User Total Allocation Allocation Revenues Revenues Alabama $472 $186 $286 1.38 % $83 $290 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 569 211 359 1.73 104 364 Arkansas 283 95 188 0.91 54 191 California 3,446 1,153 2,293 11.08 662 2,327 Colorado 662 230 432 2.09 125 439 Connecticut 438 156 281 1.36 81 285 Delaware 121 42 79 0.38 23 80 District of Columbia 188 39 148 0.72 43 151 Florida 2,333 874 1,459 7.05 421 1,480 Georgia 1,191 362 828 4.00 239 841 Guam NA NA NA NA NA NA Hawaii 149 65 84 0.41 24 85 Idaho 183 61 123 0.59 35 124 Illinois 1,097 415 682 3.30 197 692 Indiana 572 257 315 1.52 91 319 Iowa 305 104 201 0.97 58 204 Kansas 279 83 197 0.95 57 200 Kentucky 400 160 240 1.16 69 244 Louisiana 422 169 253 1.22 73 256 Maine 159 54 105 0.51 30 107 Maryland 699 243 456 2.21 132 463 Massachusetts 798 275 524 2.53 151 531 Michigan 784 335 449 2.17 130 456 Minnesota 544 176 368 1.78 106 373 Mississippi 263 102 161 0.78 46 163 Missouri 641 225 416 2.01 120 422 Montana 117 49 68 0.33 20 69 Nebraska 202 52 150 0.73 43 152 Nevada 243 82 161 0.78 47 164 New Hampshire 160 58 103 0.50 30 104 New Jersey 1,222 409 813 3.93 235 825 New Mexico 254 100 154 0.75 45 157 New York 2,099 696 1,404 6.78 405 1,424 North Carolina 978 373 604 2.92 174 613 North Dakota 85 24 61 0.30 18 62 N. Mariana Islands NA NA NA NA NA NA Ohio 1,049 413 636 3.07 183 645 Oklahoma 367 120 247 1.19 71 251 Oregon 425 152 273 1.32 79 277 Pennsylvania 1,466 535 930 4.50 269 944 Puerto Rico 229 101 127 0.61 37 129 Rhode Island 86 31 54 0.26 16 55 South Carolina 452 177 275 1.33 79 279 South Dakota 79 26 53 0.26 15 54 Tennessee 601 243 358 1.73 103 363 Texas 2,180 751 1,428 6.90 412 1,449 Utah 258 83 175 0.85 51 178 Vermont 84 32 52 0.25 15 52 Virginia 1,015 329 686 3.31 198 696 Virgin Islands NA NA NA NA NA NA Washington 750 262 488 2.36 141 496 West Virginia 204 83 121 0.59 35 123 Wisconsin 484 204 280 1.35 81 284 Wyoming 86 27 59 0.29 17 60 Total 1/ $32,175 $11,486 $20,689 100.00 % $6,004 $21,104 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. (Dollars in Millions) Information for Allocating Interstate Access Revenues: 2005 1 - 51 Table 1.23 Allocation Intrastate Intrastate Percentage End-User Total Revenues Revenues Alabama $78 1.16 % $0 $77 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 105 1.56 0 103 Arkansas 67 1.00 0 66 California 1,169 17.42 0 1,153 Colorado 93 1.39 0 92 Connecticut 40 0.60 0 39 Delaware 5 0.07 0 5 District of Columbia 4 0.06 0 4 Florida 510 7.59 0 503 Georgia 117 1.74 0 115 Guam NA NA NA NA Hawaii 28 0.42 0 28 Idaho 31 0.46 0 30 Illinois 202 3.01 0 199 Indiana 128 1.90 0 126 Iowa 106 1.59 0 105 Kansas 29 0.43 0 28 Kentucky 82 1.22 0 81 Louisiana 61 0.90 0 60 Maine 10 0.15 0 10 Maryland 88 1.31 0 87 Massachusetts 25 0.37 0 24 Michigan 268 3.99 0 264 Minnesota 87 1.29 0 86 Mississippi 29 0.43 0 28 Missouri 245 3.66 0 242 Montana 36 0.54 0 36 Nebraska 73 1.08 0 72 Nevada 20 0.30 0 20 New Hampshire 21 0.31 0 20 New Jersey 174 2.60 0 172 New Mexico 58 0.86 0 57 New York 355 5.30 0 351 North Carolina 170 2.54 0 168 North Dakota 22 0.32 0 21 Northern Mariana Islands NA NA NA NA Ohio 291 4.33 0 287 Oklahoma 45 0.67 0 44 Oregon 70 1.04 0 69 Pennsylvania 307 4.58 0 303 Puerto Rico 32 0.47 0 31 Rhode Island 5 0.08 0 5 South Carolina 93 1.38 0 91 South Dakota 30 0.44 0 29 Tennessee 52 0.77 0 51 Texas 683 10.18 0 674 Utah 41 0.60 0 40 Vermont 8 0.11 0 8 Virginia 172 2.56 0 170 Virgin Islands NA NA NA NA Washington 180 2.68 0 177 West Virginia 33 0.49 0 33 Wisconsin 127 1.89 0 125 Wyoming 12 0.17 0 12 Total 1/ $6,712 100.00 $0 $6,643 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Totals in the last two columns include revenues for locations not estimated. (Dollars in Millions) Allocation Revenues for Information for Allocating Intrastate Access Revenues: 2005 1 - 52 Table 1.24 Information for Allocating LECs' Intrastate Toll: 2005 (Dollars in Millions) Reported Revenues Intrastate by Revenues 2/ Large ILECs 1/ Alabama $28 $31 Alaska NA NA American Samoa NA NA Arizona 5 6 Arkansas 61 91 California 498 505 Colorado 7 7 Connecticut 145 146 Delaware 10 10 District of Columbia 0 0 Florida 149 152 Georgia 40 45 Guam NA NA Hawaii 6 6 Idaho 3 4 Illinois 275 290 Indiana 72 75 Iowa 5 6 Kansas 14 17 Kentucky 15 17 Louisiana 22 24 Maine 36 44 Maryland 81 81 Massachusetts 207 208 Michigan 222 232 Minnesota 3 5 Mississippi 22 24 Missouri 24 26 Montana 1 2 Nebraska 4 6 Nevada 3 3 New Hampshire 33 36 New Jersey 256 256 New Mexico 3 4 New York 167 173 North Carolina 40 45 North Dakota 1 1 Northern Mariana Islands NA NA Ohio 99 105 Oklahoma 33 41 Oregon 8 9 Pennsylvania 202 211 Puerto Rico 66 66 Rhode Island 12 12 South Carolina 24 34 South Dakota 1 2 Tennessee 39 45 Texas 210 228 Utah 5 5 Vermont 15 18 Virginia 74 76 Virgin Islands NA NA Washington 32 33 West Virginia 21 26 Wisconsin 70 98 Wyoming 1 1 Total 3/ $3,370 $3,600 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: 2005 (Dollars in Millions) Access Minutes 1/ State Access Allocation End-User Total for Revenues Percentage 2/ Revenues Revenues Allocation Alabama 3,020,175 1.55 % 1.16 % 1.46 % $157 $209 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 1,561,598 0.80 1.56 0.99 107 143 Arkansas 1,387,410 0.71 1.00 0.79 85 113 California 32,041,870 16.49 17.42 16.72 1,810 2,402 Colorado 1,923,819 0.99 1.39 1.09 118 157 Connecticut 39,822 0.02 0.60 0.16 18 24 Delaware 321,227 0.17 0.07 0.14 15 20 District of Columbia 0 0.00 0.06 0.01 2 2 Florida 12,022,225 6.19 7.59 6.54 708 939 Georgia 4,279,645 2.20 1.74 2.09 226 300 Guam NA NA NA NA NA NA Hawaii 339,338 0.17 0.42 0.24 26 34 Idaho 474,789 0.24 0.46 0.30 32 43 Illinois 4,895,607 2.52 3.01 2.64 286 379 Indiana 3,427,450 1.76 1.90 1.80 195 258 Iowa 1,673,985 0.86 1.59 1.04 113 150 Kansas 1,287,065 0.66 0.43 0.60 65 87 Kentucky 2,326,562 1.20 1.22 1.20 130 173 Louisiana 3,641,068 1.87 0.90 1.63 177 234 Maine 1,463,231 0.75 0.15 0.60 65 86 Maryland 4,492,032 2.31 1.31 2.06 223 296 Massachusetts 7,658,952 3.94 0.37 3.05 330 438 Michigan 4,664,426 2.40 3.99 2.80 303 402 Minnesota 2,188,192 1.13 1.29 1.17 126 168 Mississippi 2,578,272 1.33 0.43 1.10 119 158 Missouri 3,649,298 1.88 3.66 2.32 251 334 Montana 481,922 0.25 0.54 0.32 35 46 Nebraska 786,440 0.40 1.08 0.57 62 82 Nevada 515,030 0.26 0.30 0.27 30 39 New Hampshire 1,326,187 0.68 0.31 0.59 64 85 New Jersey 7,207,430 3.71 2.60 3.43 371 493 New Mexico 706,858 0.36 0.86 0.49 53 70 New York 18,437,373 9.49 5.30 8.44 913 1,212 North Carolina 4,906,158 2.52 2.54 2.53 274 363 North Dakota 326,175 0.17 0.32 0.21 22 30 N. Mariana Islands NA NA NA NA NA NA Ohio 7,232,699 3.72 4.33 3.87 419 557 Oklahoma 1,549,332 0.80 0.67 0.76 83 110 Oregon 1,609,160 0.83 1.04 0.88 95 127 Pennsylvania 10,298,006 5.30 4.58 5.12 554 735 Puerto Rico 0 0.00 0.47 0.12 13 17 Rhode Island 841,730 0.43 0.08 0.34 37 49 South Carolina 2,473,009 1.27 1.38 1.30 141 187 South Dakota 284,268 0.15 0.44 0.22 24 32 Tennessee 3,220,078 1.66 0.77 1.44 155 206 Texas 14,608,898 7.52 10.18 8.18 886 1,176 Utah 955,304 0.49 0.60 0.52 56 75 Vermont 388,000 0.20 0.11 0.18 19 26 Virginia 7,090,786 3.65 2.56 3.38 366 485 Virgin Islands NA NA NA NA NA NA Washington 3,751,472 1.93 2.68 2.12 229 304 West Virginia 1,288,234 0.66 0.49 0.62 67 89 Wisconsin 2,428,970 1.25 1.89 1.41 153 203 Wyoming 286,361 0.15 0.17 0.15 17 22 Total 3/ 194,357,934 100.00 % 100.00 % 100.00 % $10,862 $14,419 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. % of Nation Access Minutes % of Nation 3/ Totals in the last two columns include revenues for locations not estimated. 1 - 54 Table 1.26 Information for Allocating Interstate Toll: 2005 Access Minutes Allocation for Percentage Allocation 1/ Alabama 6,207,659 1.56 % $540 $729 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 7,641,971 1.92 664 897 Arkansas 4,051,568 1.02 352 476 California 39,174,961 9.82 3,406 4,600 Colorado 7,688,254 1.93 668 903 Connecticut 7,700,937 1.93 670 904 Delaware 1,625,899 0.41 141 191 District of Columbia 2,149,087 0.54 187 252 Florida 29,664,188 7.44 2,579 3,483 Georgia 13,027,789 3.27 1,133 1,530 Guam NA NA NA NA Hawaii 1,471,109 0.37 128 173 Idaho 2,360,787 0.59 205 277 Illinois 16,400,757 4.11 1,426 1,926 Indiana 8,053,522 2.02 700 946 Iowa 4,124,988 1.03 359 484 Kansas 3,796,088 0.95 330 446 Kentucky 5,078,948 1.27 442 596 Louisiana 5,339,272 1.34 464 627 Maine 1,989,405 0.50 173 234 Maryland 9,744,437 2.44 847 1,144 Massachusetts 8,884,613 2.23 773 1,043 Michigan 10,188,985 2.55 886 1,196 Minnesota 6,119,627 1.53 532 719 Mississippi 4,023,675 1.01 350 473 Missouri 8,258,832 2.07 718 970 Montana 1,731,220 0.43 151 203 Nebraska 2,192,138 0.55 191 257 Nevada 5,075,858 1.27 441 596 New Hampshire 2,316,043 0.58 201 272 New Jersey 14,430,104 3.62 1,255 1,695 New Mexico 2,980,295 0.75 259 350 New York 21,835,716 5.47 1,899 2,564 North Carolina 12,801,537 3.21 1,113 1,503 North Dakota 926,298 0.23 81 109 N. Mariana Islands NA NA NA NA Ohio 13,522,513 3.39 1,176 1,588 Oklahoma 4,687,890 1.18 408 551 Oregon 5,177,008 1.30 450 608 Pennsylvania 16,207,625 4.06 1,409 1,903 Puerto Rico 3,346,352 0.84 291 393 Rhode Island 1,119,104 0.28 97 131 South Carolina 6,385,699 1.60 555 750 South Dakota 1,004,383 0.25 87 118 Tennessee 7,872,683 1.97 685 924 Texas 24,151,569 6.05 2,100 2,836 Utah 2,983,557 0.75 259 350 Vermont 1,355,292 0.34 118 159 Virginia 12,118,611 3.04 1,054 1,423 Virgin Islands NA NA NA NA Washington 8,724,753 2.19 759 1,025 West Virginia 3,241,321 0.81 282 381 Wisconsin 6,890,587 1.73 599 809 Wyoming 1,077,119 0.27 94 126 Total 2/ 398,922,632 100.00 % $34,867 $47,090 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. Total Revenues (Dollars in Millions) End-User Revenues 1 - 55