Trends in Telephone Service Industry Analysis and Technology Division Wireline Competition Bureau August 2008 This report is available for reference in the FCC’s Information Center at 445 12th Street, S.W., Courtyard Level. Copies may be purchased by calling Best Copy and Printing, Inc., Portals II, 445 12th Street S.W., Room CY-B402, Washington DC 20554 at 800-378-3160, facsimile 202-488-5563, or via e-mail fcc@bcpiweb.com. The report can also be downloaded from the Wireline Competition Bureau Statistical Reports Internet site at: www.fcc.gov/wcb/iatd/trends.html. Table of Contents 1-1 1-1 Table 1.1 Interstate Per-Line Access Charges……………………………………………………… 1-3 Table 1.2 Interstate Per-Minute Access Charges…………………………………………………… 1-4 Table 1.3 Interstate Per-Line Access Charges by Carrier…………...……………………………… 1-5 Table 1.4 Interstate Per-Minute Access Charges by Carrier……………………………… ……… 1-6 2-1 Table 2.1 High-Speed Lines………………………………………………………………………… 2-3 Chart 2.1 Total High-Speed Lines…………………………………………………………………… 2-3 Chart 2.2 High-Speed Lines by Technology………………………………………………………… 2-3 Table 2.2 Advanced Services Lines………………………………………………………………… 2-4 Chart 2.3 Advanced Services Lines………………………………………………………………… 2-4 Chart 2.4 Advanced Services Lines by Technology………………………………………………… 2-4 Table 2.3 Residential High-Speed Lines…………………………………………………………… 2-5 Chart 2.5 Residential High-Speed Lines…………………………………………………………… 2-5 Chart 2.6 Residential High-Speed Lines by Technology…………………………………………… 2-5 Table 2.4 Residential Advanced Services Lines…………………………………………………… 2-6 Chart 2.7 Residential Advanced Services Lines…………………………………………………… 2-6 Chart 2.8 Residential Advanced Services Lines by Technology…………………………………… 2-6 Table 2.5 High-Speed Lines by Information Transfer Rates……………………………………… 2-7 Chart 2.9 High-Speed Lines by Information Transfer Rates in the Faster Directions……………… 2-7 Table 2.6 High-Speed Lines by Technology………………………………………………………… 2-9 Table 2.7 High-Speed Lines by State……………………………………………………………… 2-10 Table 2.8 Percentage of Residential End-User Premises with Access to High-Speed Services…… 2-11 Chart 2.10 Percentage of U.S. Households with Computers, Internet Access, and High-Speed Access…………………………………………………………………….. 2-12 Table 2.9 Percent of U.S. Households with Internet Connections: Rural vs Urban………………… 2-13 Chart 2.11 Percent of U.S. Households with Internet Connections: Rural vs Urban………………… 2-13 Consumer Expenditures…………………………………………………………………………… 3-1 Table 3.1 Household Expenditures for Telephone Service………………………………………… 3-3 Table 3.2 Average Monthly Household Telecommunications Expenditures by Type of Provider………………………………………………………………………… 3-4 Table 3.3 Personal Consumption Expenditures……………………………………………………. 3-5 Chart 3.1 Personal Consumption Expenditures for Telephone Service…………………………… 3-6 Chart 3.2 Monthly Personal Consumption Expenditures for Telephone Service per Household…… 3-6 Introduction……………………………………….……………………………………………… Access Charges…………………………………………………………………………………… Advanced Telecommunications…………………………………………………………………… i Earnings …………………………………………………………………………………………. 4-1 Table 4.1 Interstate Rate of Return Summary: Years 1998 through 2006 ………………………… 4-3 Employment and Labor Productivity …………………………………………………………. 5-1 Table 5.1 Average Number of Employees in the Telecommunications Industry ………………… 5-3 Chart 5.1 Average Number of Employees in the Telecommunications Industry ...………………… 5-3 Table 5.2 Labor Productivity Index for the Wired and Wireless Telecommunications Industry …………………………………………………………… 5-4 Chart 5.2 Wired and Wireless Telecommunications Carriers (NAICS 5171 and 5172) Labor Productivity Index ……………………………………. 5-4 Table 5.3 Number of Telecommunications Service Providers by Size of Business ……………… 5-5 International Telephone Service ………………………………………………………………… 6-1 Table 6.1 International Service from the United States …………………………………………… 6-3 Chart 6.1 Billed Revenues per Minute and per Call ……………………………………………… 6-3 Table 6.2 International Telephone Service Settlements …………………………………………… 6-4 Table 6.3 International Message Telephone Service for 2005 …………………………………… 6-5 Chart 6.2 U.S. Billed Minutes by Country for 2005 ……………………………………………… 6-5 Table 6.4 U.S. Billed Revenues of Facilities-Based and Facilities-Resale Carriers in 2005……… 6-6 Table 6.5 Top Providers of Pure Resale International MTS in 2005 ……………………………… 6-7 Lines ……………………………………………………………………………………………… 7-1 Table 7.1 Total U.S. Wireline Telephone Lines …………………………………………………… 7-3 Table 7.2 Telephone Loops of Incumbent Local Exchange Carriers by State ……………………… 7-4 Table 7.3 Telephone Loops of Incumbent Local Exchange Carriers by Holding Company ……… 7-5 Chart 7.1 Five Largest Holding Companies' Share of Loops ……………………………………… 7-5 Table 7.4 Additional Residential Lines for Households with Telephone Service ………………… 7-6 Table 7.5 Number of Payphones Owned by LECs and Independent Operators …………………… 7-7 Table 7.6 Number of Payphones Over Time ………………………………….…………………… 7-8 Local Telephone Competition …………………………………………………………………… 8-1 Table 8.1 End-User Switched Access Lines Reported …………………………….…..…………. 8-5 Chart 8.1 End-User Switched Access Lines Reported …………………………….…..…………. 8-5 Table 8.2 End-User Switched Access Lines by Customer Type …..……………….…..………… 8-6 Chart 8.2 Percent of Lines that Serve Residential Customers ……………………………………… 8-6 ii Table 8.3 Reporting Competitive Local Exchange Carriers ……………………………………… 8-7 Chart 8.3 Competitive Local Exchange Carriers' End-User Lines ……………………………… 8-7 Table 8.4 Reporting Incumbent Local Exchange Carriers ………………………………………… 8-8 Chart 8.4 ILEC Lines and the Percent Provided to Other Carriers ……………………………… 8-8 Table 8.5 End-User Switched Access Lines Served By Reporting Local Exchange Carriers …… 8-9 Table 8.6 Competitive Local Exchange Carriers Share of End-User Switched Access Lines …… 8-10 Table 8.7 Nationwide Local Service Revenues and New Competitors' Share …………………… 8-11 Chart 8.5 ILEC and New Local Competitor Share of Local Service Revenues ..………………… 8-11 Table 8.8 Telephone Number Porting Activity Since Wireless Pooling Started ………………… 8-13 Table 8.9 Telephone Numbers Remaining in the Porting Database at the End of Each Quarter … 8-14 Table 8.10 Numbers in the Porting Database by Quarter Most Recently Ported …………………… 8-15 Long Distance Telephone Industry………………………………………………………… 9-1 Table 9.1 Toll Revenues by Provider ……………………………………………………………. 9-5 Table 9.2 Intrastate, Interstate, and International Toll Revenues ………………………………… 9-7 Chart 9.1 Toll Revenues by Market Segment …………………………………………………… 9-7 Table 9.3 End-User Toll Revenues ……………………………………………………………… 9-8 Table 9.4 Number of Toll Service Providers ……………………………………………………… 9-9 Table 9.5 Residential Household Market Shares: 1995-2006 …………………………………… 9-10 Chart 9.2 Residential Household Market Shares: 2006 ………………………………………… 9-10 Table 9.6 Residential Household Market Shares by Region: 2006 ……………………………… 9-12 Chart 9.3 Residential Household Market Shares by Region: 2006 ……………………………… 9-12 Table 9.7 Regional Bell Operating Companies'Applications to Provide In-Region InterLATA Service ………………………………………………… 9-14 Minutes ……………………………………………………………………………………… 10-1 Table 10.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers ………… 10-3 Chart 10.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers ………… 10-3 Table 10.2 Telephone Calls and Billed Access Minutes of Large ILECs Reporting to the Commission …………………..………………………………………………………. 10-4 Mobile Wireless Service ……………………………………………………………………. 11-1 Table 11.1 Measures of Mobile Wireless Telephone Subscribers……………………………………11-3 Chart 11.1 Mobile Wireless Telephone Subscribers ……………………………………………… 11-4 Table 11.2 Mobile Wireless Telephone Subscribers ……………………………………………… 11-5 Table 11.3 Mobile Wireless Telephone Service: Industry Survey Results ………………………… 11-6 Table 11.4 Distribution of Residential Wireless Calls and Minutes ……………………………… 11-7 Table 11.5 Duration of Residential Wireless Calls: 2006 ………………………………………… 11-8 Table 11.6 Distribution of Residential Intrastate Wireless Minutes by Day and Time: 2006 ………11-9 Table 11.7 Distribution of Residential Interstate Wireless Minutes by Day and Time: 2006 ………11-10 iii Price Indices for Telephone Services …………………………………………………………12-1 Table 12.1 Long-Term Changes for Various Price Indices (Annual Rates of Change) …………… 12-3 Chart 12.1 CPI All Items and CPI Telephone Services …………………………………………… 12-3 Table 12.2 Annual Changes in Major Price Indices ………………………………………………… 12-4 Chart 12.2 Percent Change in CPI All Items and CPI Telephone Services ………………………… 12-4 Table 12.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services ……12-5 Chart 12.3 CPI Telephone Service Price Indices …………………………………………………… 12-5 Price Levels ……………………………………………………………………………………13-1 Table 13.1 Average Residential Rates for Local Service in Urban Areas: 1986 - 2007 …………… 13-3 Table 13.2 Average Local Rates for Businesses with a Single Line In Urban Areas: 1989 - 2007 … 13-4 Table 13.3 Average Rate for a Residential Access Line …………………………………………… 13-5 Table 13.4 Average Revenue Per Minute …………………………………………………………… 13-6 Chart 13.1 Revenue Per Minute for Interstate Calls ……………………………………………….. 13-7 Residential Wireline Usage ………………………………………………………………… 14-1 Table 14.1 Distribution of Residential Wireline Toll Calls and Minutes ..………………………… 14-3 Table 14.2 Average Residential Wireline Monthly Toll Minutes ……………………………………14-3 Table 14.3 Distribution of Residential Wireline Long Distance Call Durations: 2006 ….………… 14-4 Table 14.4 Duration and Distance of Intrastate Toll Calls ………………………………………… 14-5 Table 14.5 Duration and Distance of Interstate Toll Calls ………………………….……………… 14-5 Table 14.6 Distribution of Residential Wireline Long Distance Minutes by Day and Time………… 14-6 Revenues ……………………………………………………………………………………… 15-1 Table 15.1 Telecommunications Industry Revenues …………………………………………………15-3 Chart 15.1 End-User Telecommunications Revenues ……………………………………………… 15-3 Table 15.2 Telecommunications Revenues Reported by Type of Service ………………...…………15-4 Table 15.3 Number of Interstate Telecommunications Providers By Principal Type of Business … 15-5 Table 15.4 Gross Revenues Reported by Type of Carrier ……………………………………………15-6 Table 15.5 Total Telecommunications Revenues by State ………………………………………… 15-7 Table 15.6 Telecommunications Revenues by State: 2005 ………………………………………… 15-8 Table 15.7 Telecommunications Revenues by Type of Service: 2005 ...…………………………… 15-9 Subscribership ………………………………………………………………………………. 16-1 Table 16.1 Household Telephone Subscribership in the United States ……………………………… 16-3 Table 16.2 Historical Telephone Penetration Estimates …………………………………………… 16-4 Table 16.3 Telephone Penetration by State: Households with Telephone Service ……...……………16-5 Table 16.4 Telephone Penetration by State: Houseing Units with Telephone Service ……...……… 16-6 Table 16.5 Telephone Penetration by Selected Characteristics ………………………………………16-7 iv Technology and Infrastructure……………………………………………………………….. 17-1 Table 17.1 Central Office Switches and Access Lines by Technology …………………………… 17-5 Table 17.2 Switches by Metropolitan Statistical Area (MSA) and Non-MSA and Switches by Line Counts ……………………………………………………………………………. 17-6 Table 17.3 Local Transmission Technology (Bell Operating Companies) and Working Telecommunications Channels ……………………………………………… 17-7 Table 17.4 Central Offices Converted to Equal Access (As of February 1, 2008) …………….…… 17-8 Table 17.5 Broadband Capabilities of NECA's 2007 Rural Incumbent LEC Survey Respondents … 17-9 Chart 17.1 Telecommunications Patents …………………..…………………………..……………17-10 Table 17.6 Capital Expenditures for Structures and Equipment ……………………………………17-11 Chart 17.2 Capital Expenditures for Structures and Equipment by Carriers ……………..…………17-12 Telephone Numbers ………………………………………………………………………………18-1 Table 18.1 Area Codes by State …………………………………………………………………… 18-3 Table 18.2 Area Code Assignments ………………………………………………………………… 18-4 Table 18.3 Telephone Numbers Assigned for Toll-Free Service (800, 888, 877, 866) …………… 18-6 Chart 18.1 Working Toll-Free Numbers .…………………………………………………………. 18-6 Table 18.4 Telephone Numbers Assigned for Toll-Free Service 800 Toll-Free Service ………...… 18-7 Table 18.5 Telephone Numbers Assigned for 888 Toll-Free Service ……………………………… 18-8 Table 18.6 Telephone Numbers Assigned for 877 Toll-Free Service ……………………………… 18-9 Table 18.7 Telephone Numbers Assigned for 866 Toll-Free Service ………………………………18-10 Table 18.8 Number of Digits Necessary to Dial Local and Toll Calls in the U.S. …………………18-11 Universal Service ……………………………………………………………………………….. 19-1 Table 19.1 Universal Service Support Mechanisms: 2006 & 2007 ………………………………… 19-5 Chart 19.1 Distribution of Universal Service Payments: 2006 & 2007 …………………………… 19-5 Table 19.2 Universal Service Support Received by Service Provider: 2006 & 2007 ……………… 19-6 Chart 19.2 Universal Service Support Received by Service Provider: 2006 & 2007 ……………… 19-6 Table 19.3 High-Cost Support Fund Payment History ………………………………………………19-8 Chart 19.3 Total High-Cost Support Fund Payments ..………………………………………………19-8 Table 19.4 High-Cost Support Fund Payments by State: 2006 & 2007………………………………19-9 Table 19.5 High-Cost Support Received by Incumbent LECs and CETCs ……………………...… 19-11 Chart 19.4 Percent of High-Cost Support Received by CETCs ……………………………………19-11 Table 19.6 High-Cost Support by Type of Carriers: 2006 & 2007 …………………………………19-12 Table 19.7 Lifeline Monthly Support by State or Jurisdiction ………………………………………19-14 Table 19.8 Lifeline Subscribers and Link-Up Beneficiaries …….………………………………… 19-15 Table 19.9 Lifeline Subscribers and Link-Up Beneficiaries by State or Jurisdiction: 2006 …………19-16 Table 19.10 Low-Income Support Payments …………………………………………………………19-17 Chart 19.5 Lifeline and Link-Up Support Payments ……………………………………………… 19-17 Table 19.11 Low-Income Support Payments by State or Jurisdiction: 2006 …………………………19-18 Table 19.12 Low-Income Support Received by ILECs and CETCs …………..………..……………19-19 Chart 19.6 Percent of Low-Income Support Received by CETCs ….………………………………19-19 v Table 19.13 Schools and Libraries Funding by Type of Service …………………………………… 19-20 Chart 19.7 Total Schools and Ldibraries Funds Committed and Disbursed ……………….……… 19-20 Table 19.14 Schools and Libraries Funding by State and Type of Service …….…………………… 19-21 Table 19.15 Rural Health Care Fund Disbursements by Service Speed ………………………………19-22 Chart 19.8 Rural Health Care Fund Disbursements by Service Speed ………………………………19-22 Table 19.16 Rural Health Care Fund Disbursements by Service Speed and by State ……………… 19-23 Table 19.17 Universal Service Fund Contribution Factors …………………….…………………… 19-24 Table 19.18 Share of Universal Service Contributions by Principal Type of Contributor Using Traditional Carrier Categories …………………………………………………… 19-25 Chart 19.9 Share of Universal Service Contributions by Principal Type of Contributor …………… 19-25 Appendix A - List of Publications by the Industry Analysis and Technology Division ……… 20-A Appendix B - Sources of Telecommunications Information …………………………………… 21-A Appendix C - Contacting the Report Authors ………………………………………………… 22-A vi 1 - 1 Introduction Trends in Telephone Service is published by the Industry Analysis and Technology Division of the Federal Communication Commission’s Wireline Competition Bureau. 1 This report is designed to provide answers to some of the most frequently asked questions about the telephone industry -- questions asked by consumers, members of Congress, other government agencies, telecommunications carriers, and members of the business and academic communities. To this end, the report contains summary information about the size, growth, and development of the telephone industry, including data on market shares, minutes of calling, number of lines, and telephone subscribership. The report also provides information about access charges, advanced telecommunications, consumer expenditures for service, infrastructure, international telephone traffic, local telephone competition, telephone rates and price changes, toll service providers, and universal service support. Trends in Telephone Service summarizes a variety of information contained in other reports that are published periodically by the Industry Analysis and Technology Division. 2 In most cases, these other reports provide more detailed information than that provided here. These reports can be accessed from the Wireline Competition Bureau Statistical Reports Internet site, at www.fcc.gov/wcb/stats. In addition, to facilitate further information gathering by consumers and others, we have listed additional sources of information in Appendix B, and we have provided information on contacting the authors of this report in Appendix C. 1 Access Charges Long distance companies rely on the loops, switches, and transport facilities of local telephone companies for access to their customers. As a result, local telephone companies recover a portion of their costs from long distance companies accessing their networks. Both the manner in which these access charges have been assessed and the proportion of the costs they have recovered have varied considerably over time. In the early 1980s, AT&T provided about three-quarters of the nation's local telephone service and almost all interstate long distance service. Because revenue sharing was largely an internal process for AT&T, it was able to charge prices above true economic cost for long distance calls and share the revenues with local telephone companies. These transfers, while reducing the pressures on the local companies to raise monthly rates, contributed to inefficiently high long distance rates. The high rates were responsible for suppressing demand for long distance calls and inducing large corporations to bypass the public switched network. Moreover, while such revenue sharing arrangements were sustainable in an industry where one firm monopolized both long distance and local service, they were not compatible with a competitive 1 Trends in Telephone Service was last published in February 2007. 2 See Appendix A for a list of these publications. 1 - 2 long distance industry. In mid-1984 the FCC, in cooperation with a Federal-State Joint Board composed of both federal and state regulators, introduced sweeping changes in the way that local telephone companies charged for their services. The historic method of sharing revenues was replaced with a new system of access charges that provided a uniform method for local telephone companies to charge long distance carriers for the origination and termination of interstate traffic on their local networks. In addition, monthly subscriber line charges (SLCs) were introduced to recover a portion of the fixed costs of the local telephone companies’ loops directly from end users on a per-line basis. Since local telephone companies were required to reduce their charges to long distance carriers -- dollar for dollar -- as SLCs were introduced, the pricing changes reduced the implicit subsidy from long distance use to local service. The rebalancing of prices between local service and interstate long distance calls during the 1980s had a fundamental impact on the telephone industry as the price of long distance service fell and the volume of long distance calling surged. In mid-1997, as part of its implementation of the 1996 Telecommunications Act, the FCC introduced further interstate access charge reform. Prior to the 1997 reform, local carriers continued to recover part of their fixed costs in per-minute charges (from long distance carriers) and part from end users (in SLCs.) Presubscribed interexchange carrier charges (PICCs) were created in order to allow local carriers to recover the remaining portion of their fixed loop costs from long distance carriers on a per-line, instead of a per-minute, basis. As part of access charge reform in May of 2000, the FCC started to eliminate PICCs and consolidate them with SLCs. All price-cap local exchange carriers implemented lower access charges paid by long distance carriers. In October of 2001, the FCC modified its interstate access charge rules for rate-of-return incumbent local exchange carriers. These changes for the rate-of-return carriers were designed to align the interstate access rate structure more closely with the manner in which costs are incurred by driving per-minute access charges towards lower, more cost-based levels. Average monthly SLCs and PICCs are shown in Table 1.1, and average per-minute rates charged to long distance carriers are shown in Table 1.2. Both tables report historical averages for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Current per-line charges and per-minute charges are reported for each of the carriers in Tables 1.3 and 1.4, respectively. Table 1.1 Residential and Non-Primary Multiline Non-Primary Multiline From To Single-Line Residential Business Residential Business Business and Centrex 05/26/84 05/31/85 $0.00 $4.99 06/01/85 09/30/85 1.00 4.99 10/01/85 05/31/86 1.00 4.97 06/01/86 12/31/86 2.00 4.97 01/01/87 06/30/87 2.00 5.12 07/01/87 12/31/87 2.60 5.12 01/01/88 11/30/88 2.60 5.01 12/01/88 03/31/89 3.20 5.01 04/01/89 12/31/89 3.50 4.94 01/01/90 06/30/90 3.48 4.84 07/01/90 12/31/90 3.48 4.83 01/01/91 06/30/91 3.48 4.77 07/01/91 11/27/91 3.49 4.74 11/28/91 06/30/92 3.49 4.76 07/01/92 06/30/93 3.49 4.68 07/01/93 06/30/94 3.50 5.37 07/01/94 06/30/95 3.50 5.45 07/01/95 06/30/96 3.50 5.50 07/01/96 06/30/97 3.50 5.53 07/01/97 12/31/97 3.50 5.68 01/01/98 06/30/98 3.50 $4.98 6.92 $0.49 $1.50 $2.52 $0.35 07/01/98 12/31/98 3.50 4.99 7.11 0.49 1.38 2.38 0.38 01/01/99 06/30/99 3.50 5.88 7.05 0.49 1.38 2.22 0.32 07/01/99 12/31/99 3.50 5.84 6.94 0.95 1.77 2.78 0.42 01/01/00 06/30/00 3.50 5.81 6.94 0.92 1.70 2.44 0.35 08/11/00 06/30/01 4 4.28 5.99 6.88 0.00 0.00 2.30 0.37 07/01/01 12/31/01 4.78 6.66 0.00 0.00 1.35 0.22 01/01/02 06/30/02 4.92 6.79 0.00 0.00 1.35 0.22 07/01/02 06/30/03 5.62 6.45 0.00 0.00 0.48 0.08 07/01/03 06/30/04 5.96 6.37 0.00 0.00 0.20 0.04 07/01/04 06/30/05 5.92 6.24 0.00 0.00 0.19 0.05 07/01/05 06/30/06 5.92 6.26 0.00 0.00 0.21 0.04 07/01/06 06/30/07 5.91 6.27 0.00 0.00 0.23 0.04 07/01/07 06/30/08 5.93 6.30 0.00 0.00 0.23 0.05 Source: Access tariff filings. 4 Although the charges took effect on July 1, 2000, some companies made adjustments to the tariffs which did not take effect until August 11, 2000. 2 Prior to 1/01/98, carriers did not charge separate subscriber line charge (SLC) rates for primary and non-primary residential lines. Therefore, the residential and single-line business average SLCs reported prior to 1/01/98 include all residential SLC charges. The average residential and single-line business SLC rate as of 1/01/98 excludes non-primary residential SLCs. Non-primary SLCs are now reported separately, except for the LECs in the NECA pool, which continue to charge a single residential SLC. Under price-cap regulation, as of July 1, 2003, the caps on SLCs for primary residential and single-line business, non-primary residential, and multiline business and Centrex lines equal $6.50, $7.00, and $9.20, respectively. For NECA pool companies, the residential SLC cap is $6.50, while the multiline business and Centrex SLC cap equals $9.20. 3 On 1/01/98, price-cap carriers began to charge presubscribed interexchange carrier charges (PICCs). The reported PICCs are averages per line including both price-cap and NECA pool lines. While carriers did not charge different rates for Centrex and multiline business SLCs, they did charge different PICC rates for these lines. Therefore, the average multiline business and Centrex PICC rates are reported separately. However, multiline business line counts, used to compute average PICC rates, include Centrex lines for LECs in the NECA pool, which do not charge PICCs or distinguish in access filings between the two line types. On 7/01/00, price-cap carriers stopped charging residential and single- line business PICCs. Therefore, under price-cap regulation, as of July 1, 2000, the caps on PICCs for multiline business lines equal $4.31. Centrex groups of 9 or fewer lines are capped at the multiline business PICC rate of $4.31 per group. Centrex groups with more than 9 lines are capped at $0.48 per line (1/9th the multiline business rate). Interstate Per-Line Access Charges (National Average per Month per Line) 1 Rates in Effect 1 This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Residential and Single-Line Business Centrex Charged to Long Distance Carriers 3 (Presubscribed Interexchange Carrier Charges)(Subscriber Line Charges) 5.81 5.93 5.93 Charged to End Users 2 5.88 5.94 5.85 5.83 5.81 1 - 3 Table 1.2 Interstate Per-Minute Access Charges (National Average in Cents per Minute) 1 Total Charge per Conversation Minute 3 05/26/84 01/14/85 5.24 ข 5.24 ข 3.10 ข 17.26 ข 01/15/85 05/31/85 5.43 5.43 3.10 17.66 06/01/85 09/30/85 4.71 4.71 3.10 16.17 10/01/85 05/31/86 4.33 4.33 3.10 15.38 06/01/86 12/31/86 3.04 4.33 3.10 14.00 01/01/87 06/30/87 1.55 4.33 3.10 12.41 07/01/87 12/31/87 0.69 4.33 3.10 11.49 01/01/88 11/30/88 0.00 4.14 3.10 10.56 12/01/88 02/14/89 0.00 3.39 3.00 9.60 02/15/89 03/31/89 0.00 3.25 3.00 9.46 04/01/89 12/31/89 1.00 1.83 3.00 9.11 01/01/90 06/30/90 1.00 1.53 2.50 7.78 07/01/90 12/31/90 1.00 1.23 2.50 7.48 01/01/91 06/30/91 1.00 1.14 2.40 7.18 07/01/91 06/30/92 0.88 1.06 2.40 6.97 07/01/92 06/30/93 0.79 0.95 2.40 6.76 07/01/93 06/30/94 0.88 1.16 2.20 6.66 07/01/94 06/30/95 0.84 1.08 2.10 0.28 ข 6.89 07/01/95 06/30/96 0.74 0.89 1.96 0.21 6.16 07/01/96 06/30/97 0.72 0.89 1.95 0.17 6.04 07/01/97 12/31/97 0.64 0.84 1.63 0.14 5.18 01/01/98 06/30/98 0.68 0.23 1.29 0.21 4.04 07/01/98 12/31/98 0.91 0.20 0.99 0.30 3.82 01/01/99 06/30/99 0.82 0.16 0.98 0.32 3.71 07/01/99 12/31/99 0.37 0.10 0.86 0.28 2.82 01/01/00 06/30/00 0.32 0.10 0.86 0.31 2.85 08/11/00 06/31/00 4 0.23 0.07 0.52 0.26 1.91 07/01/01 12/31/01 0.15 0.07 0.48 0.24 1.71 01/01/02 06/30/02 0.15 0.07 0.47 0.24 1.69 07/01/02 06/30/03 0.02 0.01 0.48 0.22 1.46 07/01/03 06/30/04 0.00 0.00 0.48 0.22 1.44 07/01/04 06/30/05 0.00 0.00 0.50 0.25 1.53 07/01/05 06/30/06 0.00 0.00 0.52 0.25 1.59 07/01/06 06/30/07 0.01 0.00 0.54 0.25 1.63 07/01/07 06/30/08 0.01 0.00 0.56 0.26 1.71 Source: Access tariff filings. Rates in Effect From To Sensitive per Switched Interstate Charges for Switched Access Service Minute 2 Traffic Sensitive per Switched Minute Non-Traffic Minute 1 Carrier Common Line per Terminating Access Minute 1 Carrier Common Line per Originating Access 4 Although the charges took effect on July 1, 2000, some companies made adjustments to the tariffs which did not take effect until August 11, 2000. 1 This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. The average rates reported here do not include the average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), both of which are reported in Table 1.1. Effective 07/01/03, the carrier common line (CCL) rates for NECA carriers were eliminated. 2 Non-traffic-sensitive charges include charges assessed on a per-month, per-unit basis. Prior to 07/01/94, these charges were included in the average traffic-sensitive rates. 3 The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per originating access minute plus the traffic-sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non-traffic-sensitive charge per switched minute. Terminating charges per conversation minute equal carrier common line charges per terminating access minute plus both traffic-sensitive and non-traffic-sensitive charges per switched minute. 1 - 4 Table 1.3 Interstate Per-Line Access Charges by Carrier (In Dollars per Month per Line) 1 Rates Effective from 07/01/07 to 06/30/08 Subscriber Line Charges Presubscribed Interexchange Carrier Charges 2006 Average Monthly Access Lines 2 (Thousands) Company Residential Non-Primary Multiline Residential Non-Primary Centrex Residential Non-Primary Multiline and Residential Business and Residential and Residential Business Single-Line and Single-Line Single-Line and Business Centrex Business Business Centrex ALLTEL (KY & NE) $6.06 $6.43 $7.73 $0.00 $0.00 $1.79 $1.47 458 14 191 AT&T 4 5.54 5.38 5.50 0.00 0.00 0.00 0.00 35,832 4,714 19,201 CenturyTel 3 6.37 6.57 7.51 0.00 0.00 0.80 1.15 428 22 117 Cincinnati Bell 5.25 5.25 5.25 0.00 0.00 0.00 0.00 575 43 258 Citizens 3 6.11 6.40 9.20 0.00 0.00 4.31 0.74 1,373 79 379 Embarq 5 5.70 5.59 7.00 0.00 0.00 0.00 0.00 4,690 445 1,536 Hawaiian Telecom 6.50 7.00 8.15 0.00 0.00 0.00 0.00 419 46 114 Iowa Telecom 6.15 6.15 8.66 0.00 0.00 0.00 0.00 176 7 42 Qwest 6.02 6.24 6.52 0.00 0.00 0.00 0.00 7,902 887 2,947 Verizon 6.28 6.30 6.77 0.00 0.00 0.53 0.07 24,890 3,370 12,552 Windstream 6 6.50 7.00 9.20 0.00 0.00 2.10 1.64 329 34 80 Price Caps 5.87 5.81 6.14 0.00 0.00 0.24 0.05 77,072 9,660 37,417 NECA 6.50 NA 9.20 0.00 NA 0.00 NA 8,683 NA 2,074 Price Caps and NECA $5.93 $5.81 $6.30 $0.00 $0.00 $0.23 $0.05 85,755 9,660 39,491 NA - Not Available. 3 Data reflect only those company study areas subject to price-cap regulation. 5 Embarq replaced Sprint after their merger which occurred on May 17, 2006. 6 Windstream replaced Valor after their merger which occurred on July 17, 2006. Source: Access tariff filings. 4 Following the merger of SBC Communications Inc. (SBC) with AT&T Corporation on November 18, 2005, SBC changed its name to AT&T Inc. Bellsouth became part of AT&T Inc. on December 29, 2006. 2 Access line counts measure lines that companies report as qualified to receive subscriber line charges (SLCs). ISDN-BRI lines, which are charged non-primary SLC and PICC rates, are included in the non-primary residential line counts. ISDN-PRI lines, which are charged rates equal to five times the multiline business SLC and PICC rates, are multiplied by five and add to multiline business counts. Multiline Business 1 This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. For example, non-primary residential SLCs can be less than primary residential SLCs due to weighting by access lines. Note that at the disaggregated level, non-primary rates are always greater than or equal to non-primary rates. The primary line rate is weighted by the number of primary residential lines and the non-primary residential rate is similarly weighted by the number of non-primary access lines. Because the weight on primary lines versus non-primary lines is not constant, the primary rate is not necessarily lower than the non-primary rate at the holding company level. No information is available for those carriers that are not in the NECA pool, but are subject to rate-of-return regulation. 1 - 5 Table 1.4 Interstate Per-Minute Access Charges by Carrier (In Cents per Minute) 1 Rates Effective from July 1, 2007 to June 30, 2008 Year 2006 Minutes of Use Carrier (Millions) Common Line per Company Originating Access Local Minute 2 Originating Terminating Switching ALLTEL (KY & NE) 0.00 ข 0.00 ข 0.55 ข 0.32 ข 1.79 ข 561 854 1,916 AT&T ILEC 5 0.00 0.00 0.46 0.27 1.48 46,215 108,977 158,451 CenturyTel 6 0.14 0.00 0.55 0.30 1.88 404 1,381 1,785 Cincinnati Bell 0.00 0.00 0.61 0.40 2.07 655 1,998 2,580 Citizens 0.20 0.00 0.51 0.51 2.28 1,107 3,957 5,063 Embarq 7 0.00 0.00 0.79 0.17 1.97 4,708 18,683 20,669 Hawaiian Telecom 0.00 0.00 0.63 0.20 1.71 355 1,013 1,839 Iowa Telecom 0.00 0.00 1.59 0.67 4.63 221 331 551 Qwest 0.00 0.00 0.74 0.16 1.84 13,007 24,166 37,296 Verizon 0.03 0.00 0.50 0.22 1.52 30,245 83,119 113,797 Windstream 8 0.00 0.00 0.77 0.48 2.56 245 832 1,120 Price Caps 0.01 0.00 0.53 0.24 1.59 97,723 245,311 345,069 NECA 0.00 0.00 1.30 0.69 4.07 * * 17,063 All Price Caps and NECA 0.01 0.00 0.56 0.26 1.71 * * 362,132 * NECA no longer files information regarding originating and terminating Carrier Common Line (CCL) charges. 6 Data reflect only those company study areas subject to price-cap regulation. 7 Embarq replaced Sprint after their merger which occurred on May 17, 2006. 8 Windstream replaced Valor after their merger which occurred on July 17, 2006. Source: Access tariff filings. 4 The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per originating access minute plus the traffic-sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non-traffic- sensitive charge per switched minute. Terminating charges per conversation minute equal carrier common line charges per terminating access minute plus both traffic-sensitive and non-traffic-sensitive charges per switched minute. Switched Traffic Sensitive per Carrier Common Line per Terminating Switched Non-Traffic Sensitive per Total Charge per Access Minute Conversation Minute 4 5 Following the merger of SBC Communications Inc. (SBC) with AT&T Corporation on November 18, 2005, SBC changed its name to AT&T Inc. Bellsouth became part of AT&T Inc. on December 29, 2006. Carrier Common Line 2 Effective 07/01/03, the carrier common line (CCL) rates for NECA carriers were eliminated. 3 Non-traffic sensitive charges include charges assessed on a per-month, per-unit basis. Prior to July 1, 1994 these charges were included in the average traffic-sensitive rates. Access Minute 3 Access Minute 2 1 This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. No information is available for those carriers that are not in the NECA pool, but are subject to rate-of-return regulation. The average rates reported here do not include the average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), both of which are reported in Table 1.1. 1 - 6 2 - 1 2 Advanced Telecommunications Congress directed the Commission and the states, in section 706 of the Telecommunications Act of 1996, to encourage deployment of advanced telecommunications capability in the United States on a reasonable and timely basis. To assist in its evaluation of such deployment, the Commission instituted a formal data collection program to gather standardized information about subscribership to high-speed services, including advanced services, from wireline telephone companies, cable system operators, terrestrial wireless service providers, satellite service providers, and any other facilities-based providers of advanced telecommunications capability. For reporting purposes, high-speed service “lines” are wired or wireless connections to end users (i.e., to Internet-access service subscribers) that are faster than 200 kilobits per second (kbps) in at least one direction. Advanced services lines are faster than 200 kbps in both directions (and are therefore a subset of high-speed lines). All facilities-based providers of high-speed lines were required to report to the Commission basic information about their service offerings and types of customers, starting with the June 30, 2005 data. Previously collected data (i.e., as of December 31, 1999 and each succeeding June 30 and December 31 through the end of 2004) were reported by facilities-based providers with at least 250 high-speed lines in service in a particular state, and by a few smaller entities that filed on a voluntary basis. 1 Small providers, many of whom serve rural areas with relatively small populations, were therefore underrepresented in the earlier data. More than twice as many holding companies and unaffiliated entities reported information about high-speed lines in June 2005 as had reported six months earlier. Starting with the June 30, 2005 data, all facilities-based providers report added detail about line speeds. And two groups of providers – incumbent local exchange carriers (LECs) and cable system operators – report the extent to which their high-speed lines are available to the households to whom they offer local telephone service or cable TV service (i.e., available whether or not the household actually subscribes to a high-speed Internet-access service). Table 2.1 shows high-speed lines for the following types of technology: asymmetric digital subscriber line (ADSL), symmetric digital subscriber line (SDSL), traditional wireline, cable modem, fiber, satellite, fixed wireless, mobile wireless, and power line and other. Chart 2.1 shows the growth of high-speed lines from December 1999 through June 2007, and Chart 2.2 shows the proportion of high-speed lines by technology as of June 30, 2007. Table 2.2 shows advanced services lines by the above technologies. Chart 2.3 shows the growth of advanced services lines from December 1999 through June 2007, and Chart 2.4 shows the proportion of advanced services lines by technology as of June 30, 2007. 1 High-speed lines reported in earlier voluntary submissions represented less than 0.05% of total reported high- speed lines. As of June 30, 2005, filers with fewer than 250 lines in a state (including entities that previously filed on a voluntary basis) represented about 0.2% of total reported high-speed lines. 2 - 2 Comparable data for residential lines, only, are shown in Table 2.3 and Table 2.4, and in Charts 2.5 through 2.8. Table 2.5 and Chart 2.9 provide additional detail about speeds (i.e., information transfer rates) of reported high-speed lines, by technology. Table 2.6 shows high-speed lines, by state and by technology, as of June 30, 2007. Table 2.7 shows total reported high-speed lines by state over time. Table 2.8 provides nationwide and state-specific estimates of the extent to which digital subscriber line (DSL) high-speed lines provided by incumbent LECs, and cable modem high- speed service provided by cable system operators, are available to the households to whom these companies offer local telephone service or cable TV service. The U.S. Department of Commerce periodically has asked the U.S. Census Bureau to include questions on whether households have telephones, computers, and Internet access as part of the Current Population Survey. Chart 2.10 shows the percent of U.S. households with computers, Internet access, and high-speed access. The chart presents summary statistics from two National Telecommunications and Information Administration (NTIA) reports: A Nation Online: Entering the Broadband Age, and Networked Nation: Broadband in America: 2007, which are available through NTIA’s web site at www.ntia.doc.gov. Table 2.9 and Chart 2.11 show the percent of U.S. households with Internet Connections for rural and urban areas. Table 17.5, appearing in section 17 of this report, presents broadband capabilities of small, mostly rural telephone companies based upon a periodic survey conducted by the National Exchange Carrier Association (NECA). 2003 2007 ADSL 951,583 2,693,834 5,101,493 7,675,114 11,398,199 16,316,309 19,515,483 22,584,255 25,412,883 27,516,171 SDSL and Traditional Wireline 758,594 1,088,066 1,186,680 1,215,713 1,407,121 898,468 878,973 948,134 1,030,698 1,028,654 SDSL - - - - - 411,731 368,782 337,412 344,759 319,932 Traditional Wireline - - - - - 486,737 510,191 610,722 685,939 708,722 Cable Modem 2,284,491 5,184,141 9,172,895 13,684,225 18,592,636 24,017,442 26,558,206 29,174,494 31,981,705 34,408,553 Fiber 3 46,635 81,248 105,991 111,386 130,928 315,651 448,257 685,823 1,035,677 1,402,652 Satellite and Wireless 65,615 194,707 220,588 309,006 421,690 965,068 3,812,655 11,872,998 23,344,106 36,560,197 Satellite - - - - - 376,837 426,928 495,365 571,980 668,803 Fixed Wireless - - - - - 208,695 257,431 361,113 484,277 586,141 Mobile Wireless - - - - - 379,536 3,128,296 11,016,520 22,287,849 35,305,253 Power Line and Other - - - - - 4,872 4,571 5,208 4,776 5,420 Total Lines 4,106,918 9,241,996 15,787,647 22,995,444 31,950,574 42,517,810 51,218,145 65,270,912 82,809,845 100,921,647 For data through December 2004, only those providers with at least 250 lines per state were required to file. See additional notes following Chart 10. High-Speed Lines by Technology as of June 30, 2007 Jun Jun Jun Chart 2.2 Total High-Speed Lines Chart 2.1 Dec Technology 2 2000 Jun 2004 Jun DecJun Jun Table 2.1 (Over 200 kbps in at least one direction) High-Speed Lines 1 2001 2002 2005 2006 Jun 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 110,000,000 Jun 2000 Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Cable Modem 34.1% SDSL and Traditional Wireline 1.0% ADSL 27.3% Fiber 1.4% All Other 36.2% 2 - 3 2003 2007 Jun Jun Jun Jun Jun Jun Dec Jun Dec Jun ADSL 326,816 998,883 1,852,879 2,536,368 3,768,019 13,176,095 15,921,336 18,310,957 21,144,159 23,381,289 SDSL and Traditional Wireline 758,594 1,088,066 1,186,680 1,215,713 1,407,121 869,772 874,261 946,874 1,029,782 1,027,937 SDSL -----387,451 368,736 336,586 344,739 319,293 Traditional Wireline 482,321 505,525 610,288 685,043 708,644 Cable Modem 1,469,130 3,329,976 6,819,395 11,935,866 17,567,468 22,745,012 26,293,596 28,878,587 31,594,111 33,939,919 Fiber 3 40,627 81,204 104,015 110,829 129,636 314,229 447,235 684,729 1,034,317 1,400,565 Satellite and Wireless 3,649 73,476 66,073 64,393 93,805 223,274 338,635 2,275,154 4,982,675 9,800,951 Satellite -----10,966 36,331 27,489 36,026 57,202 Fixed Wireless 191,229 220,268 333,209 455,741 553,919 Mobile Wireless -----21,079 82,036 1,914,456 4,490,908 9,189,830 Power Line and Other 4,174 4,501 5,209 4,776 5,420 Total Lines 2,598,816 5,571,605 10,029,042 15,863,169 22,966,048 37,332,557 43,879,564 51,101,510 59,789,820 69,556,081 For data through December 2004, only those providers with at least 250 lines per state were required to file. See additional notes following Chart 10. Chart 2.4 Advanced Services Lines by Technology as of June 30, 2007 200620042000 2001 Chart 2.3 Advanced Services Lines Total High-Speed Lines Table 2.2 Advanced Services Lines 1 (Over 200 kbps in both directions) Technology 2 2002 2005 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 Jun 2000 Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Cable Modem 48.8% SDSL and Traditional Wireline 1.5% ADSL 33.6% Fiber 2.0% All Other 14.1% 2 - 4 2003 2007 Jun Jun Jun Jun Jun Jun Dec Jun Dec Jun ADSL 772,272 2,490,740 4,395,033 6,429,938 10,759,495 14,442,823 17,370,508 20,152,290 22,768,500 24,690,513 SDSL and Traditional Wireline 111,490 138,307 223,599 250,372 393,049 159,489 129,444 112,017 117,708 117,437 SDSL -----153,978 122,220 102,605 105,012 104,944 Traditional Wireline 5,511 7,224 9,412 12,696 12,493 Cable Modem 2,215,259 4,998,540 9,157,285 13,660,541 18,525,265 23,578,060 25,714,461 28,365,648 31,118,079 33,340,678 Fiber 3 325 2,623 6,120 16,132 22,719 83,293 213,479 442,027 763,394 1,152,195 Satellite and Wireless 64,320 182,165 202,251 288,786 387,563 428,367 532,704 1,840,060 3,589,607 6,598,329 Satellite -----265,017 320,142 382,047 455,936 530,357 Fixed Wireless 160,775 203,179 301,293 424,284 522,752 Mobile Wireless ----- 2,574 9,384 1,156,720 2,709,387 5,545,220 Power Line and Other 4,447 4,550 5,093 4,711 5,347 Total Lines 3,163,666 7,812,375 13,984,287 20,645,769 30,088,091 38,696,480 43,965,147 50,917,135 58,361,999 65,904,499 For data through December 2004, only those providers with at least 250 lines per state were required to file. Small business lines were included in totals through December 2004. See additional notes following Chart 10. Table 2.3 Residential High-Speed Lines 1 (Over 200 kbps in at least one direction) Technology 2 2000 2001 2002 200620052004 Chart 2.6 Residential High-Speed Lines by Technology as of June 30, 2007 Chart 2.5 Residential High-Speed Lines 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 Jun 2000 Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 SDSL and Traditional Wireline 0.2% ADSL 37.5% Fiber 1.7% Cable Modem 50.6% All Other 10.0% 2 - 5 2003 2007 ADSL 195,324 916,364 1,580,575 2,071,779 3,174,022 11,731,303 14,242,291 16,416,522 18,878,873 20,835,274 SDSL and Traditional Wireline 111,490 138,307 223,599 250,372 393,049 151,979 125,116 111,935 117,652 116,881 SDSL -----149,862 122,220 102,580 105,002 104,432 Traditional Wireline 2,118 2,895 9,355 12,650 12,449 Cable Modem 1,401,434 3,146,953 6,809,170 11,920,207 17,505,907 22,324,471 25,533,423 28,121,912 30,770,517 32,920,397 Fiber 3 325 2,617 5,118 15,751 21,866 82,831 212,862 441,128 762,083 1,150,246 Satellite and Wireless 2,916 60,988 47,787 46,407 72,485 150,893 204,703 1,449,299 3,114,987 6,074,665 Satellite ----- 2,244 25,117 15,055 23,334 35,319 Fixed Wireless 146,074 170,515 277,524 399,732 494,144 Mobile Wireless ----- 2,574 9,071 1,156,720 2,691,921 5,545,202 Power Line and Other 3,916 4,481 5,093 4,711 5,347 Total Lines 1,711,488 4,265,229 8,666,249 14,304,515 21,167,329 34,445,394 40,322,876 46,545,889 53,648,823 61,102,810 For data through December 2004, only those providers with at least 250 lines per state were required to file. Small business lines were included in totals through December 2004. See additional notes following Chart 10. Residential Advanced Services Lines Chart 2.8 Residential Advanced Services Lines by Technology as of June 30, 2007 Table 2.4 Residential Advanced Services Lines 1 (Over 200 kbps in both directions) Chart 2.7 Dec 2006 JunDec 2005 Jun Jun JunJun Jun Technology 2 200420022000 2001 Jun Jun 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 Jun 2000 Jun 2001 Jun 2002 Jun 2003 Jun 2004 Jun 2005 Jun 2006 Jun 2007 Fiber 1.9% All Other 10.0% SDSL and Traditional Wireline 0.2% ADSL 34.1% Cable Modem 53.9% 2 - 6 ADSL 4,134,882 13,025,758 10,303,122 52,373 * * SDSL 639 317,401 1,805 * * 0 Traditional Wireline 78 671,080 18,740 5,928 6,245 6,651 Cable Modem 468,634 3,941,006 26,682,038 3,246,906 * * Fiber 2,087 214,373 646,776 508,829 16,292 14,295 Satellite 611,601 57,202 0 0 0 0 Fixed Wireless 32,222 523,309 30,061 * * * Mobile Wireless 26,115,423 * * 0 0 0 Power Line and Other 0 * * 0 * 0 Total Lines 31,365,566 27,944,008 37,683,911 3,814,471 91,983 21,708 * Data withheld to maintain firm confidentiality. See notes following Chart 10. Greater than 200 kbps and less than 2.5 mbps in the faster direction Greater than or equal to 2.5 mbps and less than 10 mbps in the faster direction Chart 2.9 Lines by Information Transfer Rates in the Faster Directions as of June 30, 2007 (Includes only lines exceeding 200 kbps in both directions) Greater than or equal to 100 mbps in the faster direction Greater than or equal to 10 mbps and less than 25 mbps in the faster direction Greater than or equal to 25 mbps and less than 100 mbps in the faster direction Table 2.5 High-Speed Lines by Information Transfer Rates 1 As of June 30, 2007 Exceeding 200 kbps in both directions, and: Technology 2 Exceeding 200 kbps in only one direction 40.2% 5.6% 54.2% > than 200 kbps, < than 2.5 mbps ? than 2.5 mbps, < than 10 mbps ? than 10 mbps 2 - 7 Source: Industry Analysis & Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of June 30, 2007 (March 2008). 3 Fiber lines included electric power line through December 2004. Notes for Tables 2.1 - 2.5 and Charts 2.1 - 2.9. Advanced services lines, residential high-speed lines, and residential advanced services lines are estimated based on data reported on FCC Form 477. Therefore, figures may not add to totals due to rounding. 1 High-speed lines are connections to end-user locations that deliver services at speeds exceeding 200 kbps in at least one direction. Advanced services lines, which are a subset of high-speed lines, are connections that deliver services at speeds exceeding 200 kbps in both directions. In Tables 2 and 4, we enumerate those reported high-speed lines that also qualify as advanced services lines. More detailed information about connection speeds is presented in Table 5. Line counts presented in this report are not adjusted for the number of persons at a single end-user location who have access to, or who use, the Internet-access services that are delivered over the high-speed connection to that location. 2 The mutually exclusive types of technology are, respectively: Asymmetric digital subscriber line (ADSL) technologies, which provide speeds in one direction greater than speeds in the other direction; symmetric digital subscriber line (SDSL) technologies; traditional wireline technologies when used to provide equivalent Internet access functionality, including Ethernet service if delivered to the subscriber's location over copper (as opposed to optical fiber) plant; cable modem, including the typical hybrid fiber-coax (HFC) architecture of upgraded cable TV systems; optical fiber to the subscriber's premises (e.g., Fiber-to-the-Home, or FTTH); satellite and fixed and mobile terrestrial wireless systems, which use radio spectrum to communicate with a radio transmitter; electric power line; and other. 2 - 8 Traditional Cable Fixed Mobile Power Line Wireline Modem Wireless Wireless and Other Alabama 356,732 5,483 10,528 374,029 1,050 * 662 * * 1,117,951 Alaska 63,708 8,673 483 * * * 8,269 * 0 156,187 American Samoa * * 0 0 0 0 0 0 0 * Arizona 405,724 1,491 12,630 850,307 1,996 * 17,122 * 0 2,192,644 Arkansas 226,842 1,406 3,018 205,349 2,254 * * * 0 528,653 California 4,582,000 32,731 145,031 3,410,983 194,514 * 60,899 * 0 14,446,700 Colorado 529,504 2,810 16,060 560,557 1,285 * 21,864 * 0 1,827,860 Connecticut * 3,414 5,964 513,211 2,860 * 0 * 0 1,546,724 Delaware * 151 1,901 * * * 0 * 0 353,763 District of Columbia * 2,462 2,675 * 704 * * * 0 337,897 Florida 1,960,025 8,186 54,413 2,344,445 * * * * 0 6,349,084 Georgia 1,218,885 6,472 33,415 802,047 2,793 * 3,797 * 0 3,091,055 Guam * 0 * 0 0 0 0 0 0 * Hawaii * * 813 * 329 * * * 0 486,337 Idaho 129,188 340 1,507 116,273 635 * 34,905 * 0 483,049 Illinois 1,299,358 11,815 35,976 1,465,869 21,020 * 28,822 * * 4,305,351 Indiana 566,103 3,855 11,042 410,438 34,449 * 10,834 * * 1,809,728 Iowa 270,101 4,244 3,151 267,712 5,633 * 14,802 * 0 826,096 Kansas 216,800 4,568 5,555 351,371 3,474 * 13,303 * 0 869,111 Kentucky 340,350 4,352 7,208 383,593 2,513 * 2,100 * 0 959,771 Louisiana 306,283 3,693 9,265 446,485 14,266 * 2,171 * * 1,087,384 Maine 106,037 3,179 5,083 169,458 2,684 * * * 0 349,868 Maryland 512,156 9,180 16,776 829,473 * * * * 0 2,172,295 Massachusetts * 6,273 16,986 1,088,170 * * * * 0 2,660,501 Michigan 668,725 4,408 22,575 1,197,105 9,033 * 6,655 * 0 2,966,289 Minnesota 449,452 21,562 7,114 570,448 6,961 * 27,403 * 0 1,578,290 Mississippi 180,281 184 4,645 151,539 623 * * * 0 399,571 Missouri 618,302 5,653 12,129 473,449 4,731 * 7,512 * * 1,564,371 Montana 95,790 2,549 876 74,246 286 * 7,653 * 0 346,230 Nebraska 124,126 3,135 1,081 238,019 527 * 10,866 * 0 537,693 Nevada 207,051 1,565 6,422 * 1,810 * 10,997 * 0 1,059,761 New Hampshire 98,113 2,427 4,908 234,466 * * * * 0 544,115 New Jersey 731,487 5,561 17,592 1,473,709 * * * * 0 4,150,053 New Mexico 179,856 401 1,867 117,336 424 * 2,518 * 0 544,706 New York 1,178,637 22,270 26,764 3,164,178 * * 507 * 0 6,797,126 North Carolina 725,396 24,100 21,531 1,134,075 5,683 * * * 0 2,894,042 North Dakota 51,096 3,288 382 76,353 5,508 * 4,873 * 0 144,994 Northern Mariana Isl. * 0 * 0 * 0 * 0 0 * Ohio 945,096 4,722 18,124 1,405,899 15,876 * 13,573 * * 3,956,535 Oklahoma 301,523 3,109 4,637 347,813 4,241 * 3,324 * 0 780,533 Oregon 338,765 7,844 6,121 489,902 23,118 * 21,293 * 0 1,285,947 Pennsylvania 1,125,794 18,768 18,624 1,271,157 * * 1,214 * 0 4,120,573 Puerto Rico * 0 3,880 * * * * * 0 332,671 Rhode Island * 1,078 1,799 * * * 0 * 0 416,053 South Carolina 322,858 92 12,527 459,110 7,684 * * * 0 1,308,281 South Dakota 45,772 3,895 252 100,903 2,724 * 4,878 * 0 164,627 Tennessee 446,551 912 24,648 662,520 9,890 * 354 * 0 2,036,625 Texas 2,180,827 13,629 37,066 2,081,963 169,821 * 72,403 * 0 6,855,680 Utah 249,683 5,454 3,947 * 1,907 * 21,252 * 0 818,665 Vermont 68,041 936 2,273 * * * * * 0 193,151 Virgin Islands * * * 0 0 * * * 0 16,014 Virginia 547,941 5,052 18,940 906,252 100,609 * 9,507 * * 2,689,907 Washington 569,397 7,688 10,799 862,049 19,849 * 45,664 * * 2,481,537 West Virginia 123,645 * 2,193 155,867 * * * * 0 306,449 Wisconsin 443,296 13,977 15,225 636,675 10,838 * 8,624 * 0 1,459,607 Wyoming 49,933 1,657 190 * 294 * 3,445 * 0 205,711 Nationwide 27,516,171 319,932 708,722 34,408,553 1,402,652 668,803 586,141 35,305,253 5,420 100,921,647 Source: Industry Analysis & Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of June 30, 2007 (March 2008). Table 2.6 High-Speed Lines by Technology as of June 30, 2007 (Over 200 kbps in at least one direction) SDSLADSL Fiber Satellite TotalState * Data withheld to maintain firm confidentiality. 2 - 9 2007 Jun Jun Jun Jun Jun Dec Jun Dec Jun Alabama 86,234 172,365 283,946 350,691 455,300 531,976 615,510 898,850 1,117,951 Alaska 20,906 46,791 61,121 88,076 95,761 109,484 125,005 145,008 156,187 American Samoa 0 0 0 * **** * Arizona 154,883 305,304 441,227 618,677 809,819 1,039,445 1,392,711 1,832,564 2,192,644 Arkansas 40,803 84,061 128,100 188,185 258,270 302,881 363,933 431,530 528,653 California 1,639,921 2,527,275 3,378,373 4,608,822 5,954,876 7,337,217 9,395,265 11,894,864 14,446,700 Colorado 142,295 238,702 338,083 515,081 688,189 882,669 1,165,853 1,489,091 1,827,860 Connecticut 146,266 233,277 364,371 516,039 679,891 807,796 1,024,053 1,262,569 1,546,724 Delaware 12,158 35,941 54,272 74,732 108,554 132,399 157,648 273,734 353,763 District of Columbia 28,861 44,266 58,800 83,213 113,086 139,594 200,221 268,008 337,897 Florida 634,703 1,103,236 1,634,552 2,236,963 2,958,350 3,537,720 4,408,427 5,346,321 6,349,084 Georgia 285,637 494,263 748,016 1,039,440 1,328,956 1,610,750 2,054,171 2,547,165 3,091,055 Guam 0 0 0 * **** * Hawaii * * * * * * 294,612 417,674 486,337 Idaho 20,233 43,119 64,353 99,845 149,023 167,926 202,521 381,283 483,049 Illinois 325,085 525,817 840,632 1,270,907 1,817,481 2,159,932 2,666,304 3,538,857 4,305,351 Indiana 77,617 156,375 233,679 515,812 742,667 922,569 1,191,752 1,417,112 1,809,728 Iowa 72,583 102,932 162,257 229,811 325,701 394,359 446,187 657,102 826,096 Kansas 101,478 149,415 248,405 322,742 419,384 470,287 595,979 728,569 869,111 Kentucky 39,297 90,284 121,594 300,704 408,184 508,198 629,538 774,736 959,771 Louisiana 121,685 207,257 315,682 420,917 536,934 508,009 730,203 892,835 1,087,384 Maine 37,888 61,069 85,212 123,739 176,396 214,599 248,440 306,006 349,868 Maryland 171,423 306,504 458,128 655,588 899,640 1,120,826 1,492,484 1,813,960 2,172,295 Massachusetts 342,643 566,796 802,423 1,004,229 1,213,640 1,431,925 1,811,845 2,243,742 2,660,501 Michigan 389,441 531,524 729,113 946,819 1,336,312 1,557,918 1,917,892 2,430,869 2,966,289 Minnesota 143,819 269,433 394,982 561,411 716,826 855,752 1,057,576 1,312,900 1,578,290 Mississippi 21,185 57,168 95,628 139,429 191,675 219,552 262,671 332,307 399,571 Missouri 120,863 220,477 362,040 537,343 704,273 811,837 1,016,732 1,275,123 1,564,371 Montana 10,446 17,969 28,023 57,650 90,583 112,662 139,946 264,121 346,230 Nebraska 55,188 92,849 141,172 199,282 253,968 305,120 355,013 470,118 537,693 Nevada 78,076 137,407 209,028 290,518 401,932 474,019 614,151 792,950 1,059,761 New Hampshire 55,241 85,697 118,304 168,000 236,817 268,128 302,957 443,207 544,115 New Jersey 394,198 654,235 924,835 1,194,557 1,605,301 1,989,803 2,654,674 3,392,607 4,150,053 New Mexico 20,099 44,462 71,355 115,147 174,534 204,054 252,361 422,964 544,706 New York 811,386 1,364,556 1,891,457 2,349,956 3,067,983 3,660,500 4,854,803 5,669,523 6,797,126 North Carolina 205,100 461,378 680,828 965,761 1,222,648 1,482,930 1,914,822 2,366,079 2,894,042 North Dakota 6,277 14,164 25,474 39,274 86,274 96,314 108,476 131,348 144,994 Northern Mariana Isl. 0 0 0 0 0 * * * * Ohio 354,258 575,756 817,020 1,152,300 1,601,981 1,932,269 2,461,379 3,200,543 3,956,535 Oklahoma 90,147 148,006 231,106 331,605 444,777 502,984 569,398 657,940 780,533 Oregon 91,457 197,778 316,300 437,040 558,489 688,487 860,385 1,060,386 1,285,947 Pennsylvania 249,119 501,950 755,947 1,123,876 1,578,981 1,999,118 2,646,898 3,374,313 4,120,573 Puerto Rico * * 32,063 43,091 66,484 118,268 169,917 251,163 332,671 Rhode Island 48,258 71,463 104,444 141,981 185,415 221,901 276,141 349,994 416,053 South Carolina 96,839 175,088 262,868 354,877 464,315 549,019 646,344 1,041,762 1,308,281 South Dakota 5,448 12,555 22,016 34,026 112,506 124,243 138,621 154,738 164,627 Tennessee 151,706 293,516 413,476 534,597 682,369 847,025 1,153,432 1,574,022 2,036,625 Texas 614,704 1,015,245 1,571,250 2,203,490 2,943,487 3,467,504 4,357,437 5,554,547 6,855,680 Utah 54,005 92,623 133,467 196,590 259,150 313,854 471,137 638,618 818,665 Vermont 16,230 29,990 39,773 56,033 82,279 95,901 108,622 170,245 193,151 Virgin Islands * * * * 2,183 2,967 7,226 11,139 16,014 Virginia 202,663 348,716 553,635 817,881 1,117,591 1,367,465 1,792,817 2,197,693 2,689,907 Washington 227,066 422,348 577,378 775,027 1,000,412 1,219,631 1,575,375 2,015,564 2,481,537 West Virginia 16,697 58,209 90,173 127,283 178,323 205,984 245,669 268,746 306,449 Wisconsin 127,172 256,735 401,565 564,670 731,934 859,114 1,034,646 1,253,335 1,459,607 Wyoming * 10,990 17,507 35,464 55,905 70,574 83,086 156,940 205,711 Nationwide 9,241,996 15,787,647 22,995,444 31,950,574 42,517,810 51,218,145 65,270,912 82,809,845 100,921,647 Source: Industry Analysis & Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of June 30, 2007 (March 2008). 2006 Table 2.7 High-Speed Lines by State (Over 200 kbps in at least one direction) * Data withheld to maintain firm confidentiality. 2003 20042001 2002 State 2005 2 - 10 xDSL Availability Where Cable Modem Availability Where State ILECs Offer Local Telephone Service Cable Systems Offer Cable TV Service Alabama 75% 92% Alaska 76% * American Samoa *0% Arizona 82% 99% Arkansas 75% 73% California 89% 98% Colorado 87% 96% Connecticut * 100% Delaware ** District of Columbia Florida 89% 97% Georgia 91% 90% Guam *0% Hawaii * * Idaho 76% 99% Illinois 83% 98% Indiana 79% 94% Iowa 85% 89% Kansas 83% 91% Kentucky 87% 90% Louisiana 79% 96% Maine 68% 93% Maryland 75% 99% Massachusetts * 99% Michigan 72% 98% Minnesota 85% 94% Mississippi 72% 91% Missouri 79% 97% Montana 78% 88% Nebraska 88% 94% Nevada 90% * New Hampshire 61% 99% New Jersey 87% 100% New Mexico 78% 77% New York 77% 99% North Carolina 85% 96% North Dakota 88% 83% Northern Mariana Isl. *0% Ohio 84% 98% Oklahoma 80% 90% Oregon 83% 95% Pennsylvania 83% 94% Puerto Rico ** Rhode Island South Carolina 79% 93% South Dakota 78% 73% Tennessee 81% 96% Texas 79% 96% Utah 87% * Vermont 66% * Virgin Islands *0% Virginia 66% 95% Washington 82% 96% West Virginia 73% 85% Wisconsin 81% 96% Wyoming 80% * Nationwide 82% 96% * Data withheld to maintain firm confidentiality. Source: Industry Analysis & Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of June 30, 2007 (March 2008). xDSL includes both asymmetric and symmetric DSL. Each state-specific estimate is a weighted average of the availability percentages that ILECs or cable system operators report for the areas they serve. Reported xDSL availability is weighted by ILEC end-user switched access lines. Reported cable modem availability is weighted by cable TV subscribers. The weighted averages include ILECs or cable system operators that report no availability. Table 2.8 Percentage of Residential End-User Premises with Access to High-Speed Services as of June 30, 2007 2 - 11 * Data on computer penetration are not available for 2007. Sources: Networked Nation: Broadband in America: 2007, January 2008, U.S. Department of Commerce, National Telecommunications and Information Administration (NTIA), and A Nation Online: Entering the Broadband Age, September 2004, U.S. Department of Commerce, Economics and Statistics Administration (ESA), National Telecommunications and Information Administration, and U.S. Census Bureau. Chart 2.10 Percent of U.S. Households With Computers, Internet Access, and High-Speed Access Selected Years (1997 - 2007) 38.6% 18.6% 42.1% 26.2% 51.0% 41.5% 4.4% 56.2% 50.5% 9.1% 61.8% 54.6% 19.9% 61.7% 50.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% P ercent of U . S. H ouseholds Computer 38.6% 42.1% 51.0% 56.2% 61.8% Internet Access 18.6% 26.2% 41.5% 50.5% 54.6% 61.7% High-Speed Access 4.4% 9.1% 19.9% 50.8% Oct 1997 Dec 1998 Aug 2000 Sept 2001 Oct 2003 Oct 2007 * 2 - 12 Internet Service 58.3 % 62.6 % 61.7 % Dial-Up Service 19.3 8.5 10.7 High-Speed Service 38.8 53.8 50.8 Other 0.3 0.3 0.3 Sources: Networked Nation: Broadband in America: 2007, January 2008, U.S. Department of Commerce, National Telecommunications and Information Administration (NTIA). Note: Figures may not add up due to rounding. Table 2.9 Percent of U.S. Households with Internet Connections Rural versus Urban Rural Urban Total (As of October 2007) (As of October 2007) Chart 2.11 Percent of U.S. Households with Internet Connections Rural versus Urban 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Rural 58.3% 19.3% 38.8% Urban 62.6% 8.5% 53.8% Internet Service Dial-Up Service High-Speed Service 2 - 13 3 - 1 3 Consumer Expenditures The Bureau of Labor Statistics conducts surveys of consumer expenditures, in part, to develop weights for CPI indices. Table 3.1 shows total annual expenditures for telephone service for all consumer units. About 2% of all consumer expenditures are devoted to telephone service. This percentage has remained virtually unchanged over the past twenty years, despite major changes in the telephone industry and in telephone usage. Average annual expenditures on telephone service increased from $360 per household in 1981 to $1,087 in 2006. Bill Harvestingฎ data collected by TNS Telecoms provide information on the telecommunications expenditures of households. (Additional information on TNS Telecoms can be found in Section 14 and Appendix B.) Expenditures can be classified by the type of service provider. Table 3.2 presents average monthly household bills from wireline and wireless providers for 1995 through 2007. 1 The upper portion of the table shows average monthly expenditures for the entire sample of households while the lower shows average monthly expenditures among those households billed by each type of service provider. The average monthly household expenditures are greater in the latter portion of the table since those households not billed for particular services are removed from the average. Another measure of consumer expenditures for telephone service is provided by the Bureau of Economic Analysis. The estimates of personal consumption expenditures by wireline and cellular services in Table 3.3 and Charts 3.1 and 3.2 illustrate the increasing importance of the wireless share of household telephone service expenditures. 1 In this Trends Report, expenditures by local exchange providers and long distance providers have been combined. The breakout between local exchange and long distance expenditures has become more difficult to identify over time as LECs have increased the amount of bundled services that they provide to consumers. 1981 $17,558 $360 2.1 % 1982 18,071 375 2.1 1983 19,692 415 2.1 1984 21,975 435 2.0 1985 23,490 455 1.9 1986 23,866 471 2.0 1987 24,414 499 2.0 1988 25,892 537 2.1 1989 27,810 567 2.0 1990 28,381 592 2.1 1991 29,614 618 2.1 1992 29,846 623 2.1 1993 30,692 658 2.1 1994 31,731 690 2.2 1995 32,264 708 2.2 1996 33,797 772 2.3 1997 34,819 809 2.3 1998 35,535 830 2.3 1999 36,995 849 2.3 2000 38,045 877 2.3 2001 39,518 914 2.3 2002 40,677 957 2.4 2003 40,817 956 2.3 2004 43,395 990 2.3 2005 46,409 1,048 2.3 2006 48,398 1,087 2.2 Source: Bureau of Labor Statistics, Consumer Expenditure Survey. Table 3.1 Annual Expenditures for All Households Telephone Expenditures as a Percent of All Expenditures Year All Expenditures Telephone Expenditures Household Expenditures for Telephone Service 3 - 3 Table 3.2 Average Monthly Household Telecommunications Expenditures By Type of Provider Year Wireline Providers Wireless Providers Total 1995 $51 $7 $58 1996 51 9 60 1997 57 11 68 1998 56 14 70 1999 55 17 72 2000 53 23 76 2001 51 29 80 2002 48 35 83 2003 47 41 88 2004 45 47 92 2005 44 53 97 2006 44 58 102 2007 45 68 113 Year Wireline Providers Wireless Providers Total 1995 $54 $46 $100 1996 56 45 101 1997 60 40 100 1998 61 41 102 1999 59 42 101 2000 59 46 105 2001 57 51 108 2002 55 56 111 2003 53 62 115 2004 49 67 116 2005 49 74 122 2006 48 78 126 2007 48 85 133 (Averages for all Households) (Averages for only those Households Billed for Service) Note: Average monthly household expenditures are estimates based on sample data. All households in the sample have wireline telephone service. Households in Alaska and Hawaii are excluded from the analysis. No effort was made to distinguish bundled prices from a la carte prices. For households taking bundled local and long distance from the same provider, the entire bill is generally considered local. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 3 - 4 Table 3.3 Personal Consumption Expenditures (Expenditure Amounts Shown in Millions) All Goods Wireline Cellular Total Telephone Wireline Cellular and Telephone Telephone Telephone Service as a as a Services Services Services Services as a Percentage Percentage 1/ 2/ 3/ Percentage of All of All of All Telephone Telephone Goods & Service Service Services 1980 $1,757,133 $27,560 $0 $27,560 1.6 % 100 % 0 % 1981 1,941,060 30,883 0 30,883 1.6 100 0 1982 2,077,268 35,140 0 35,140 1.7 100 0 1983 2,290,556 38,639 0 38,639 1.7 100 0 1984 2,503,287 41,786 0 41,786 1.7 100 0 1985 2,720,305 45,877 101 45,978 1.7 100 0 1986 2,899,724 49,088 173 49,261 1.7 100 0 1987 3,100,234 51,637 242 51,879 1.7 100 0 1988 3,353,615 53,771 591 54,362 1.6 99 1 1989 3,598,496 56,689 1,352 58,041 1.6 98 2 1990 3,839,937 58,276 2,246 60,522 1.6 96 4 1991 3,986,066 60,660 3,088 63,748 1.6 95 5 1992 4,235,265 65,803 4,866 70,669 1.7 93 7 1993 4,477,887 68,370 6,423 74,793 1.7 91 9 1994 4,743,287 72,634 8,522 81,156 1.7 89 11 1995 4,975,787 73,753 11,274 85,027 1.7 87 13 1996 5,256,832 79,052 13,735 92,787 1.8 85 15 1997 5,547,400 87,942 15,706 103,648 1.9 85 15 1998 5,879,482 91,410 18,902 110,312 1.9 83 17 1999 6,282,474 94,249 24,149 118,397 1.9 80 20 2000 6,739,378 94,881 30,187 125,068 1.9 76 24 2001 7,055,038 91,658 36,713 128,371 1.8 71 29 2002 7,350,722 87,002 41,750 128,752 1.8 68 32 2003 4/ 7,703,630 83,509 46,212 129,721 1.7 64 36 2004 4/ 8,195,862 81,360 51,610 132,970 1.6 61 39 2005 4/ 8,694,113 75,183 57,785 132,968 1.5 57 43 2006 4/ 9,207,207 70,640 65,110 135,750 1.5 52 48 2007 9,710,168 69,585 72,077 141,662 1.5 49 51 1/ Represents the sum of three series: Durable Goods (Series E1TDG1 A); Non-durable goods (Series E1TND1 A) and Services (Series E1TSS1 A). 2/ Represents the sum of two series: Local Telephone Service (Series E1OLC1 D) and Long Distance Telephone Services (Series E1LDT1 D). 3/ Cellular Telephone Service (Series E1CEL1 D). 4/ Revised Figures. Source: Bureau Of Economic Analysis, National Economic Accounts, Table 2.4.5U. Personal Consumption Expenditures by Type of Product. See http://www.bea.gov/national/nipaweb/nipa_underlying/SelectTable.asp, last visited August 14, 2008. 3 - 5 Monthly Personal Consumption Expenditures for Telephone Service per Household Chart 3.1 Personal Consumption Expenditures for Telephone Service ($ Billions) Chart 3.2 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $ B illio n s 1980 1985 1990 1995 2000 2005 Wireline Cellular $0 $10 $20 $30 $40 $50 $60 $70 $80 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Wireline Cellular 3 - 6 4 - 1 4 Earnings Beginning in the mid-1980s, local exchange carriers that file access tariffs with the Commission were required to file rate-of-return reports (FCC Form 492). The first reports were filed for the monitoring period October 1, 1985 - December 31, 1986. Carriers filed reports for each subsequent two-year monitoring period (1987-88 and 1989-90). In 1991, carriers that became subject to price-cap incentive regulation began filing reports on a yearly basis. Non-price-cap carriers filed annual reports for each monitoring period. Table 4.1 is a summary of interstate rates of return for 1998-2006 filed by price-cap carriers. Rates of return for 1991-1997 can be found in the August 2001 Trends report which can be accessed at www.fcc.gov/wcb/stats. The rates of return shown in Table 4.1 were those posted at the time of the carriers’ individual FCC Form 492 filings. They do not reflect revisions filed by the carriers at a later date. Thus, they are not necessarily the official versions for regulatory purposes, but they do illustrate general industry trends. Summaries of the filings can be found on the Wireline Competition Bureau Statistical Reports web site at www.fcc.gov/wcb/stats. Copies of the FCC Form 492A reports are on file in the FCC's Reference Information Center, Courtyard Level, 445 12th Street S.W., Washington, D.C. 20554. Reporting Entity AT&T, Inc. 1 AT&T Southeast (formerly BellSouth Communications Inc) 15.89 25.00 22.68 21.93 19.35 21.25 22.83 20.99 20.80 2 Ameritech Operating Companies 33.22 27.92 22.51 20.55 20.24 25.72 30.24 28.93 22.59 3 Nevada Bell Telephone Company 33.54 31.29 24.76 20.16 14.86 20.86 21.55 19.26 16.02 4 Pacific Bell Telephone Company 48.35 36.81 28.77 26.23 21.00 23.79 19.20 21.01 16.50 5 Southern New England Telephone Company, The 28.58 27.47 21.82 6 23.93 18.47 23.57 18.21 12.12 10.99 6 Southwestern Bell Telephone Company L.P. 26.72 20.27 16.38 6 15.60 14.88 18.81 15.17 10.22 9.91 7 Qwest Corporation, Including Malheur and El Paso 41.73 28.60 10 25.07 22.74 20.08 19.14 19.93 19.06 16.56 Verizon Telephone Companies 8 Verizon Telephone Companies (Verizon FCC Tariff No. 1 & No. 11) 16.61 18.37 11.24 8.00 11.95 12.93 13.36 13.66 (Former Bell Atlantic Companies) Bell Atlantic 13.88 Bell Atlantic (NYNEX) 11.40 New England Telephone and Telegraph Co. New York Telephone 9 Verizon California Inc. (California - GTCA) 32.33 27.89 34.99 29.17 28.50 28.48 25.87 22.01 17.19 11 Verizon California Inc. (Arizona - COAZ) 19.58 26.11 6.17 2.05 6.99 13.25 10.9 15.57 13.80 10 Verizon California Inc. (California - COCA) 54.16 40.93 36.93 30.64 28.22 29.80 28.74 28.28 22.71 12 Verizon California Inc. (Nevada - CONV) 40.44 27.98 28.79 28.51 24.08 26.66 28.82 20.57 24.01 13 Verizon Florida Inc. (Florida - GTFL) 31.76 32.25 28.96 24.46 22.03 29.23 21.90 18.93 14.58 14 Verizon North Inc. (COPA + COQS = COPT) 32.55 38.92 32.88 6 40.74 43.61 39.71 41.05 39.58 45.97 15 Verizon North Inc. (Illinois - COIL) 42.83 41.27 41.72 60.34 54.09 53.67 44.51 41.03 14.11 16 Verizon North Inc. (Indiana - COIN) 54.82 51.36 40.36 47.34 46.06 46.55 47.67 41.40 34.61 17 Verizon North Inc. (Ohio - GTOH) 19.83 20.96 18.58 19.39 19.53 20.45 21.88 21.7 21.83 18 Verizon North Inc. (Pennsylvania - GTPA) 9.42 52.26 20.50 13.76 22.50 23.17 21.95 21.41 14.67 19 Verizon North Inc. (Wisconsin - GTWI) 17.19 13.86 11.53 6 10.85 9.90 14.16 16.99 17.85 16.08 20 Verizon North/Verizon South (GTIN + GLIN = GAIN) 20.06 22.78 22.34 22.64 24.75 32.82 33.00 32.47 29.06 21 Verizon North/Contel South (GTMI + GLMI = GAMI) 20.06 17.88 14.83 6 15.10 16.64 17.49 16.45 15.75 13.17 22 Verizon North/Verizon South (GTIL + GLIL = GAIL) 25.56 23.11 23.29 21.99 21.54 23.67 23.90 22.35 23.07 27 Verizon Northwest Inc. (Idaho - GTID) 47.65 43.93 34.53 28.20 33.01 38.74 34.17 32.24 30.89 23 Verizon Northwest Inc. (Oregon - GTOR) 29.21 32.43 25.44 26.28 26.10 31.69 30.95 31.56 27.03 25 Verizon Northwest Inc. (Washington - COWA) 39.13 33.53 30.44 36.20 31.57 40.06 39.49 39.17 30.41 26 Verizon Northwest Inc. (Washington - GTWA) 40.09 33.22 33.91 29.82 28.97 34.03 33.26 32.91 27.33 24 Verizon Northwest Inc. (West Coast CA - GNCA) (1.59) (33.59) (9.44) (13.80) (5.17) 1.91 (8.35) (9.93) (6.85) 28 Verizon South Inc. (North Carolina - GTNC) 29.10 (27.32) 17.52 16.74 23.45 30.08 26.44 24.85 27.92 29 Verizon South Inc. (N. Carolina - CONC) 25.24 26.27 10.10 14.77 21.97 22.17 17.75 19.87 12.78 30 Verizon South Inc. (GTSC + COSC = GTST) 34.71 26.00 39.63 28.19 29.82 32.44 31.19 30.70 Verizon South Inc. (Alabama - GTAL) 24.02 20.24 22.23 17.59 Verizon South Inc. (Kentucky - COKY) 30.95 20.60 9.55 5.97 Verizon South Inc. (Kentucky - GTKY) 27.21 25.07 24.03 22.34 GTE South Inc. (South Carolina - GTSC) 30.62 GTE South Inc. (South Carolina - COSC) 26.14 31 Verizon South Inc. (Virginia - COVA) 50.55 46.88 33.50 39.52 40.41 40.69 40.85 34.74 35.19 32 Verizon South Inc. (Virginia - GTVA) 13.94 19.98 24.17 (22.01) 1.76 9.53 6.62 9.94 20.56 33 GTE Southwest Inc. dba Verizon Southwest (Texas - COTX) 13.34 11.09 11.23 10.05 12.46 11.9 12.17 17.13 14.96 34 GTE Southwest Inc. dba Verizon Southwest (Texas - GTTX) 16.32 18.38 18.21 18.74 20.47 24.35 21.65 21.42 16.43 GTE Midwest Inc. (Missouri - COMO + COCM + COEM = COMT) 20.33 17.06 15.29 12.56 GTE Midwest Inc. (Missouri - GTMO) 23.92 19.15 11.82 16.08 GTE Systems of The South (Alabama - COAL) 15.77 14.93 10.88 7.97 19982004 (Final Reports for 1998 Through 2005 and Initial Report for 2006) 1 %%%%%%%%% 2001 20002003 200220052006 1999 Table 4.1 Interstate Rate of Return Summary * Years 1998 through 2006 Price-Cap Companies Reporting FCC Form 492A 4 - 3 Reporting Entity Embarq 35 Central Telephone Company - Nevada Division 53.49 % 8 45.80 % 43.37 % 34.16 % 23.80 % 19.61 % 19.29 % 21.15 % 17.79 % 36 Embarq - Florida Incorporated 40.43 8 43.03 40.98 6 35.54 29.41 25.89 27.38 27.17 26.14 37 Embarq Local Telephone Cos. - Eastern (NJ & PA) 50.74 8 56.61 55.14 6 45.38 37.78 26.21 25.62 20.87 14.59 38 Embarq Local Telephone Cos. - Midwest (MO, KS, MN, NE, WY, TX) 30.84 8 32.36 29.17 6 25.24 18.89 16.63 18.88 17.69 19.66 39 Embarq Local Telephone Cos. - North Carolina 46.08 8 50.82 51.62 6 45.89 36.64 25.56 22.23 15.92 12.55 40 Embarq Local Telephone Cos. - Northwest (OR & WA) 32.06 8 33.80 23.90 6 33.51 34.62 31.55 32.77 31.86 32.54 41 Embarq Local Telephone Cos. - Southeast (TN, VA & SC) 40.98 8 38.35 36.14 6 34.34 33.76 25.33 23.32 17.50 15.87 42 United Telephone Co. of Indiana, Inc. 64.24 8 71.95 68.80 6 46.47 41.75 35.19 38.21 28.98 24.19 43 United Telephone Co. of Ohio 50.39 8 46.30 39.01 6 31.50 30.89 27.13 20.03 20.16 17.33 All Other Companies 44 CenturyTel of Belle-Hermann/So Missouri/Sw Missouri (CNMO) 26.29 30.75 22.94 14.53 4.69 2 45 CenturyTel of Central Missouri (CNMC) 40.53 47.21 37.88 6 32.54 11.83 2 46 CenturyTel of Northern Alabama (CNAN) 44.51 26.77 11.97 8.23 7.49 3 47 CenturyTel of Southern Alabama (CNAS) 39.47 32.36 23.21 24.13 15.78 3 48 Cincinnati Bell Telephone Company 47.98 53.10 33.71 6 32.48 28.64 4 30.09 28.95 25.45 17.81 49 Citizens Comms Cos. dba Citizens Comms FCC Tariff 1 (CTC1) 45.66 41.31 34.99 6 24.40 19.27 15.73 19.68 16.71 17.87 50 Citizens Comms Cos. dba Citizens Comms FCC Tariff 2 (CTC2) 59.07 48.43 37.75 6 16.14 20.67 17.30 24.05 15.74 14.29 51 Citizens Comms Cos. dba Citizens Comms FCC Tariff 3 (CTC3) 23.46 22 12.19 6 10.40 8.94 4.52 16.12 15.56 52 Citizens Comms Cos. dba Citizens Comms FCC Tariff 4 (CTC4) 56.69 57.95 42.79 6 35.38 23.31 13.08 30.94 56 Citizens Telecommunications Cos. (CTC5) 40.37 4.90 0.86 (11.23) 53 Frontier Telephone of Rochester 18.21 11.32 55.89 6 10.67 11.47 12.32 18.91 16.77 18.37 54 Frontier Tier 2 Concurring Companies 51.56 59.64 11.45 6 38.49 33.34 38.12 38.95 43.42 45.45 55 Frontier Comms of Minnesota & Frontier Comms of Iowa 34.9 47.18 33.67 6 32.16 31.15 25.24 33.16 35.40 29.28 57 Hawaiian Telecom 22.41 21.88 10 9.44 7 16.96 15.30 16.72 17.87 17.62 15.64 58 Iowa Telecom Service Group 25.51 19.36 10 17.30 6 17.58 5 14.26 4 13.07 59 Iowa Telecom Systems Service Group 15.2 19.14 10 20.16 23.97 5 20.47 4 18.45 60 Micronesian Telecommunications Corp. 45.48 43.52 43.52 67 33.91 32.75 21.83 23.58 29.24 34.45 61 Windstream Nebraska 23.87 9 28.40 10 14.25 6 13.43 12.20 12.57 12.99 19.27 15.02 62 Windstream Kentucky East - Lexington, Inc. 30.15 9 38.10 10 33.40 6 26.75 27.78 63 Windstream Kentucky East - London, Inc. 14.12 9 23.37 10 25.50 6 26.26 28.76 64 Valor Telecom of TX d/b/a Windstream Com S/W New Mexico #1164 11.6 9 28.25 10 22.96 6 18.45 16.86 11.45 20.67 65 Valor Telecom of TX d/b/a Windstream Com S/W New Mexico #1193 5.54 9 17.77 10 21.16 6 20.41 15.88 8.39 13.35 66 Valor Telecom of TX d/b/a Windstream Com S/W Oklahoma -1.34 9 19.38 10 15.29 6 8.69 9.31 11.65 11.22 67 Valor Telecom of TX d/b/a Windstream Com S/W Texas -1.13 9 18.08 10 13.47 6 15.21 10.66 5.70 5.24 Maximum Rate of Return 64.24 % 71.95 % 68.80 % 59.89 % 54.09 % 53.67 % 47.67 % 43.42 % 48.69 % Minimum Rate of Return (1.59) (33.59) (9.44) (17.50) (5.17) 0.86 (11.23) (9.93) (25.83) Weighted Arithmetic Mean 23.48 20.44 20.44 18.06 17.69 19.62 18.04 18.50 15.60 Standard Deviation 9.13 9.00 9.00 8.63 5.69 5.80 5.17 5.96 3.96 1 For years 1991 - 1997, see Industry Analysis Division, Common Carrier Bureau, Trends in Telephone Service (August 2001). 2 For the reporting period 9/1/02 - 12/31/02. 3 For the reporting period 7/1/02 - 12/31/02. 4 For final 2002, there were no changes to the preliminary. 5 For final 2003, there were no changes to the preliminary. 6 For final 2004, there were no changes to the preliminary. 7 Verizon sold these companies in 2005. 8 Sprint and Nextel completed the spin-off of its local business to Embarq Corporation on May 17, 2006. 9 Windstream formed through spinoff of Alltel's landline business and merger with Valor Communications. 10 For final 2005, there were no changes to the preliminary. For example, price-cap carriers also report interstate rates of return on the Commission's Automated Reporting Management Information System's (ARMIS) 43-01 report. The interstate rates of return reported by carriers on the ARMIS 43-01 include revenues and costs for non-price-cap services. 2000 1999 1998 * The interstate rates of return reported by carriers on the FCC Form 492A may not necessarily agree with the interstate rates of return reported by the carriers on other Commission forms. Table 4.1 (Final Reports for 1998 Through 2005 and Initial Report for 2006) 1 20052006 Interstate Rate of Return Summary * Years 1998 through 2006 Price-Cap Companies Reporting FCC Form 492A - Continued 2004 2003 2002 2001 4 - 4 5 - 1 5 Employment and Labor Productivity The Bureau of Labor Statistics (BLS) publishes monthly data regarding the total number of employed workers in the communications industry. Specifically, BLS compiles employment statistics for the entire telephone communications industry. 1 These are classified according to the North American Industry Classification System (NAICS). NAICS is a collaborative effort between the United States, Canada, and Mexico to provide new comparability in statistics about business activity across North America. The telecommunications industry subsector (517) can be found in the 2007 NAICS Information Sector – 50. 2 The industry groups under telecommunications are as follows: wired telecommunications carriers (5171) 3 ; wireless telecommunications carriers (5172) 4 ; telecommunications resellers (517911) 5 ; and other telecommunications (5179). Further information on NAICS can be found on the Bureau of Labor Statistics web site at http://www.bls.gov/ces/cesnaics07.htm. Table 5.1 and the associated graph show the information compiled by BLS for the annual average employment figures for the telecommunications industry – NAICS 517, as well as the industry distributions for wired telecommunications carriers – NAICS 5171, wireless telecommunications carriers – NAICS 5172, telecommunications resellers – NAICS 517911, and other telecommunications – NAICS 5179. Monthly employment data for these categories from 1990 to the present can be found on the BLS web site at www.bls.gov. Table 5.2 and the associated graph show the information compiled by BLS for the labor productivity index for wired telecommunications carriers – NAICS 5171 and wireless telecommunications carriers – NAICS 5172. The BLS index of labor productivity relates output to the employee hours expended in producing that output. 1 BLS used to compile data based on the Standard Industrial Classification (SIC) system. With the May 2003 data, the employment series underwent a complete industry reclassification, changing from the 1987 SIC system to the 2002 NAICS. Employment statistics from 1951 to 2002 based on the SIC system can be found in Table 5.1 of the Industry Analysis and Technology Division, Wireline Competition Bureau, Trends in Telephone Service (August 2003). The Labor Productivity Index for the telephone communications industry for the years 1951 to 2002 based on the SIC system can also be found in the August 2003 edition of Trends in Table 5.2. 2 On February 1, 2008, the CES National Nonfarm Payroll series was updated to the 2007 NAICS from the 2002 NAICS basis. The conversion to NAICS 2007 resulted in minor definitional changes within manufacturing, telecommunications, financial activities, and professional and technical services. Several industry titles and descriptions were updated. The most significant revisions are in the Information sector, particularly within the telecommunications area. 3 Wired telecommunications carriers (5171) now includes Cable and Other Program Distribution (5175). 4 Wireless telecommunications carriers (5172) now includes Cellular and Other Wireless Carriers (517212). 5 Telecommunications resellers changed their series from (5173) to (517911). 5 - 2 Table 5.3 presents estimates of the number of telecommunications service providers that the Small Business Administration’s Office of Size Standards defines as small businesses (i.e., 1,500 or fewer employees, including all affiliates). Year Telecom 1 Wired 2 Wireless 3 Telecom Other 4 Carriers Telecom Telecom Resellers Telecom Carriers Carriers 517 5171 5172 517911 5179 1990 1,008.5 759.5 35.8 179.5 33.7 1991 999.9 749.9 41.8 178.1 30.2 1992 972.9 725.8 47.8 172.6 26.7 1993 969.5 716.5 56.3 170.5 26.2 1994 989.5 719.2 71.7 171.8 26.8 1995 1,009.3 717.6 90.3 171.2 30.2 1996 1,038.1 722.2 110.1 171.6 34.2 1997 1,108.0 755.7 132.1 181.3 38.9 1998 1,167.4 789.8 144.2 188.7 44.7 1999 1,270.8 853.2 159.9 200.2 57.4 2000 1,396.6 921.8 185.6 213.6 75.7 2001 1,423.9 933.8 201.4 214.1 74.7 2002 1,280.9 837.1 197.3 179.5 67.1 2003 1,166.8 761.8 189.9 154.9 60.2 2004 1,115.1 720.4 189.7 147.3 57.8 2005 1,071.3 689.6 191.3 135.1 55.4 2006 1,047.6 669.2 200.2 125.6 52.5 2007 1,028.5 654.6 209.1 119.4 45.3 Note: The 2007 figures are preliminary. 1 Figures may not add up due to rounding. 2 Cable and Other Program Distribution (formerly 5175) is no longer reported separately and is reported in Wired Telecom Carriers (5171). 3 Cellular and Other Wireless Carriers (formerly 517212) is no longer reported separately and is reported in Wireless Telecom Carriers (5172). 4 Totals for Other Telecom (5179) exclude data reported for Telecom Resellers (517911). Source: Bureau of Labor Statistics. Annual Average Number of Employees in the Telecommunications Industry (In Thousands) Table 5.1 Annual Average Number of Employees in the Telecommunications Industry (In Thousands) Chart 5.1 0 200 400 600 800 1,000 1,200 1,400 1,600 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Telecom Carriers Wired Carriers Wireless Carriers Telecom Resellers Other Telecom 5 - 3 Year 1988 62.02 77.86 1989 65.26 76.97 1990 66.04 70.38 1991 68.07 66.17 1992 72.13 74.42 1993 76.85 83.81 1994 82.41 89.59 1995 87.59 90.05 1996 96.50 101.66 1997 100.00 100.00 1998 107.73 110.48 1999 116.65 145.21 2000 122.68 152.76 2001 116.74 191.88 2002 124.13 217.94 2003 130.52 242.49 2004 133.91 292.02 2005 140.16 392.38 Source: Bureau of Labor Statistics. Wired Wireless Table 5.2 Labor Productivity Index for the Wired and Wireless Telecommunications Industry Measured in Output per Hour (OPH) (Base Year 1997 = 100) Carriers Carriers Wired and Wireless Telecommunications Carriers (NAICS 5171 and 5172) Labor Productivity Index (NAICS 5171) (NAICS 5172) Chart 5.2 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 400.00 450.00 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Wired (5171) Wireless (5172) 5 - 4 Table 5.3 Number of Telecommunications Service Providers by Size of Business (As of November 1, 2006) 1,500 or Fewer Employees 2 More than 1,500 Employees 2 Incumbent Local Exchange Carriers (ILECs) 1,311 1,024 287 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 1,005 918 87 Local Resellers 151 149 2 Shared-Tenant Service Providers 16 16 0 Other Local Service Providers 89 89 0 Total Local Competitors 1,261 1,172 89 Total Fixed Local Service Providers 2,572 2,196 376 Payphone Service Providers 526 524 2 Private Service Providers 18 17 1 Wireless Telephony Including Cellular, Personal Communications Service (PCS) and SMR Telephony Carriers 434 222 212 Paging and Messaging Service Providers 281 279 2 Specialized Mobile Radio (SMR) Dispatch 155 155 0 Wireless Data and Other Mobile Service Providers 69 65 4 Total Wireless Service Providers 939 721 218 Interexchange Carriers (IXCs) 300 268 32 Operator Service Providers (OSPs) 28 27 1 Prepaid Calling Card Providers 88 85 3 Satellite Service Providers 51 47 4 Toll Resellers 815 787 28 Other Toll Carriers 91 88 3 Total Toll Service Providers 1,373 1,302 71 All Filers 5,428 4,760 668 Holding Company Analysis Filers without Affiliates: Holding Company Level 2,920 2,906 14 Filer Level 2,920 2,906 14 Filers with Affiliates 3 : Holding Company Level 671 629 42 Filer Level 2,508 1,854 654 Total, Holding Company Level 3,591 3,535 56 Total, Filer Level 5,428 4,760 668 2 Employee counts are estimated at the holding company level, yet presented at the filer level. If our analysis indicates that, at the holding company level, a group of filers together employs more than 1,500 people, then each of the individual filers that comprise the holding company are entered in the column labeled as such. Therefore, our estimates do not imply that each or any of the individual filers alone employs more than 1,500 persons. Source: FCC Form 499-A filings and IATD staff estimates. Filers that in Combination with Affiliates Have Number of FCC Form 499-A Filers 1 Type of Provider 1 While FCC Form 499-A filings are not publicly available, filer registration information is published by the Industry Analysis and Technology Division (IATD) in the Telecommunications Provider Locator (September 2007), which can be accessed at www.fcc.gov/wcb/stats. This same information is searchable online at www.fcc.gov/wcb/iatd/locator.html. Note: Estimates are based on gross revenue data filed on the 2006 FCC Form 499-A worksheets, and public employment data from ARMIS and Securities and Exchange Commission filings. Filers were considered affiliated based on information from their FCC Form 499-A filings. These estimates do not reflect affiliates that do not file the FCC Form 499-A, such as firms that are not in the telecommunications business or firms that operate solely outside the United States. 3 In some cases, affiliated companies may file a single FCC Form 499A for all operations. Such consolidated filings are included in this category. 5 - 5 6 -1 6 International Telephone Service International telecommunications has become an increasingly important segment of the telecommunications market. International telephone calling -- propelled by technological innovation, lower prices and increased international trade and travel -- has skyrocketed. In 1980, customers in the United States were billed for almost 2 billion minutes of calls to international points. This figure increased to 8 billion in 1990, 30 billion in 2000, and 72 billion in 2006. Americans spent $7.3 billion on international calls in 2006. On average, carriers billed 10 cents per minute for international calls in 2006, a decline of 93% since 1980, and 80% since 2000. International private line revenues increased through 2000 but have declined significantly since then. These trends are shown in Table 6.1. Chart 6.1 shows the trends in billed revenues per minute and per call since 1980. U.S. and foreign carriers compensate each other when one carries traffic that the other bills. Because Americans place more international calls than they receive, U.S. carriers make substantial net payments to foreign carriers -- $3.6 billion in 2006. Falling compensation rates have more than offset the growth in traffic in recent years. Trends in settlement payments are shown in Table 6.2. International traffic data are available on a country-by-country basis. Table 6.3 summarizes traffic by region of the world. Five markets -- Canada, Guatemala, Mexico, the Philippines, and India -- currently account for about 50% of the international billed minutes in the United States. Chart 6.2 shows the percentage breakout for the five markets. Since 1985, when MCI began to compete with AT&T for international calls, numerous carriers have begun to provide international service. In 2006, seventy-one carriers provided international telecommunications service between the United States and international points by using their own facilities or lines leased from other carriers. These carriers provided $7.3 billion of international telephone service, $678 million of international private line service, and $99 million other miscellaneous international services. Table 6.4 lists these companies and shows international service revenues for those that did not request confidential treatment. Eight hundred and twenty carriers reported revenues for international message telephone service that they provided on a pure resale basis. These carriers reported $6.1 billion of pure resale revenues in 2006. Table 6.5 shows pure resale revenues for the carriers with the highest pure resale messages, minutes and revenues. The data compiled in Tables 6.1 - 6.5 are filed pursuant to section 43.61 of the Commission's rules. Preliminary data are filed July 31st of each year and final data are filed October 31st. Additional information can be found in a number of international reports on the Internet on the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/stats. Table 6.1 International Service from the United States (Minute, Message, and Revenue Amounts Shown in Millions) Telephone Service Other Services Billed Revenues Billed Revenues Minutes Total Per Per Call Telex Misc. End-User 1 Minute 2 Services 1980 1,569 199 $2,097 $1.34 $10.53 $325 $63 $115 1981 1,857 233 2,239 1.21 9.61 350 62 126 1982 2,187 274 2,382 1.09 8.70 363 56 138 1983 2,650 322 2,876 1.09 8.92 379 54 154 1984 3,037 367 3,197 1.05 8.71 394 46 158 1985 3,446 411 3,487 1.01 8.49 415 45 172 1986 4,126 482 4,004 0.97 8.30 390 42 175 1987 4,819 570 4,751 0.99 8.33 360 35 191 1988 5,679 687 5,806 1.02 8.45 310 30 194 1989 6,751 835 6,912 1.02 8.28 243 27 208 1990 8,030 984 8,059 1.00 8.19 196 24 201 1991 9,072 1,384 9,263 1.02 6.69 201 15 309 $23 1992 10,294 1,663 10,382 1.01 6.25 156 16 323 24 1993 11,513 1,945 11,564 1.00 5.95 136 12 366 23 1994 13,616 2,347 12,543 0.92 5.35 123 12 441 25 1995 15,889 2,830 14,335 0.90 5.07 120 6 514 48 1996 19,325 3,520 14,598 0.76 4.15 119 5 661 26 1997 22,753 4,259 15,661 0.69 3.68 110 4 851 28 1998 24,250 4,477 14,726 0.61 3.29 64 2 921 36 1999 28,515 5,305 14,980 0.53 2.82 57 2 1,216 31 2000 30,135 5,742 14,909 0.49 2.60 33 1 1,480 251 2001 33,287 6,265 11,380 0.34 1.82 10 * 1,419 199 2002 35,064 5,926 9,956 0.28 1.64 ** ** 988 113 2003 42,664 7,350 8,944 0.21 1.22 ** ** 743 156 2004 63,553 10,895 9,178 0.14 0.84 ** ** 574 137 2005 70,064 13,134 7,976 0.11 0.61 ** ** 628 110 2006 72,440 13,673 7,299 0.10 0.53 ** ** 678 99 * Denotes revenues less than $500,000. ** Data not filed. 1 Billed revenues in Table 6.1 differ from billed revenues in Table 6.3. The amounts shown here represent charges to end-user customers and equal the amounts billed by underlying carriers plus estimated reseller markups. The amounts shown in Table 6. U.S. billed minutes and revenues. Data for Table 13.3 represent charges for most U.S. billed calls that originate or terminate in th United States. International-to-international revenues and reorigination, country-beyond and country-direct minutes are not include in that table. confidential treatment. Data through 2004 from International Bureau, International Telecommunications Data (March 2006). Data for 2005 and 2006 from International Bureau, International Telecommunications Data. Billed Revenues per Minute and per Call Note: Data represent traffic and circuits from all U.S. points. Data for some prior years have been revised. Chart 6.1 Telegraph Private Line 3 Messages Source: 3 Starting in 2003, private line revenue includes a small amount of miscellaneous service revenue for which carriers requested are the amounts reported by the underlying carriers that carried the traffic to foreign destinations. 2 Billed revenue per minute for international service differs in Table 6.1 and Table 13.3. Data in Table 6.1 are calculated using all $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 Per Minute Per Call 6 - 3 Table 6.2 International Telephone Service Settlements (Revenue Amounts Shown in Millions) Average per Minute Settlement Settlement U.S. Owed to Due from Carrier Net End-User Retained Due from Net Foreign Foreign End-User Billed Owed to End-User Foreign Net End-User Carriers Carriers Revenues Revenues Foreign Revenues Carriers Settlements Revenues for U.S. for Foreign All 1/ Carriers 1/ 2/ 1/ Billed Calls Billed Calls Traffic 3/ 1980 $2,097 $1,063 $1,034 $716 ($347) $1,750 $0.68 0.62 $0.64 1981 2,239 1,330 910 799 (531) 1,708 0.72 0.56 0.52 1982 2,382 1,674 708 961 (712) 1,670 0.77 0.60 0.44 1983 2,876 2,036 841 1,086 (950) 1,926 0.77 0.60 0.43 1984 3,197 2,269 928 1,066 (1,203) 1,994 0.75 0.54 0.40 1985 3,487 2,398 1,089 1,243 (1,155) 2,332 0.70 0.55 0.41 1986 4,004 2,865 1,140 1,396 (1,469) 2,536 0.69 0.56 0.38 1987 4,751 3,423 1,328 1,671 (1,752) 2,999 0.71 0.59 0.39 1988 5,806 4,039 1,767 1,906 (2,133) 3,674 0.71 0.59 0.41 1989 6,912 4,735 2,177 2,213 (2,523) 4,390 0.70 0.58 0.42 1990 8,059 5,297 2,762 2,426 (2,871) 5,188 0.66 0.56 0.42 1991 9,263 5,852 3,411 2,536 (3,317) 5,946 0.65 0.51 0.42 1992 10,382 6,008 4,375 2,650 (3,357) 7,025 0.58 0.46 0.44 1993 11,564 6,372 5,192 2,667 (3,705) 7,859 0.55 0.43 0.44 1994 12,543 7,010 5,533 2,719 (4,291) 8,252 0.51 0.39 0.40 1995 14,335 7,569 6,766 2,631 (4,938) 9,397 0.48 0.35 0.40 1996 14,598 8,252 6,345 2,594 (5,658) 8,939 0.43 0.30 0.32 1997 15,661 8,031 7,630 2,602 (5,429) 10,232 0.35 0.27 0.31 1998 14,726 7,022 7,704 2,538 (4,484) 10,242 0.29 0.21 0.28 1999 14,980 6,383 8,597 1,782 (4,601) 10,379 0.22 0.15 0.26 2000 14,909 5,536 9,373 1,609 (3,927) 10,982 0.18 0.11 0.25 2001 11,380 4,526 6,854 1,181 (3,346) 8,034 0.14 0.08 0.17 2002 9,956 3,733 6,223 892 (2,842) 7,114 0.11 0.05 0.14 2003 8,944 3,649 5,295 873 (2,777) 6,167 0.09 0.04 0.10 2004 9,188 4,623 4,530 1,016 (3,642) 5,546 0.07 0.04 0.07 2005 7,975 4,098 3,877 637 (3,461) 4,514 0.06 0.03 0.05 2006 7,907 4,146 3,761 517 (3,630) 4,277 0.06 0.02 0.05 1/ Billed revenues in Table 6.2 differ from billed revenues in Table 6.3. The amounts shown here represent charges to end-user customers and equal the amounts billed by underlying carriers plus estimated markups, where service was provided through resellers. The amounts shown in Table 6.3 are the amounts reported by the underlying carriers. Similar differences exist for retained end-user and net revenues. 2/ Beginning in 1991, includes net settlement receipts for transiting traffic. 3/ Beginning in 1991, includes transiting traffic. Data for 2005 and 2006 from International Bureau, International Telecommunications Data . Note: Data represent traffic to and from all U.S. points. Source: Data through 2004 from International Bureau, Trends in the International Telecommunications Industry (September 2005). 6 - 4 Table 6.3 International Message Telephone Service for 2006 (Figures Rounded to the Nearest Million) Traffic Billed in the United States Traffic Billed in Foreign Countries Total Originating or Terminating Transiting U.S. in the United States Carrier Number Number U.S. Owed to Retained Number Number Due from Retained Retained of of Carrier Foreign Revenues of of Foreign Revenues Revenues Region of the World 1 Messages Minutes Revenues Carriers Messages Minutes Carriers Africa 620 3,246 $513 $421 $91 41 243 $15 $6 $113 Asia 3,091 14,496 1,561 887 674 877 3,884 121 31 826 Caribbean 702 3,884 611 413 198 235 701 15 8 221 Eastern Europe 353 2,295 233 145 88 31 230 8 6 101 Middle East 445 1,923 293 202 91 113 695 17 5 114 North and Central America 4,831 29,833 2,420 1,213 1,207 3,333 11,170 190 73 1,470 Oceania 327 1,091 121 58 63 103 472 9 3 75 Other Regions 2 2 4 2 1 * * * (*) 1 South America 833 6,872 590 339 251 182 993 37 30 317 Western Europe 2,463 8,752 946 461 486 1,332 5,008 103 180 769 Total for Foreign Points 13,637 72,279 7,287 4,141 3,146 6,227 23,286 513 342 4,000 Total for U.S. Points 36 161 12 5 7 23 124 4 * 11 Total for All International 13,673 72,440 $7,299 $4,146 $3,153 6,250 23,410 $517 $342 $4,011 Points * Denotes values that are less than half a million. 1 The region totals include all international traffic reported by carriers serving domestic U.S. points including Guam and the U.S. Virgin Islands. Most traffic between Guam, the U.S. Virgin Islands, American Samoa and Northern Mariana Islands and other U.S. points are shown separately as the total for U.S. points, and also are included in the total for all international points. The total for all international points also includes all traffic originating in American Samoa and the Northern Mariana Islands, which is excluded from the region totals. Source: International Bureau, International Telecommunications Data. Chart 6.2 U.S. Billed Minutes by Country Mexico 20% Guatamala 4% Philippines 4% India 9% Canada 13% All Other 50% 6 - 5 Table 6.4 U.S. Billed Revenues of Facilities-Based and Facilities-Resale Carriers in 2006 1/ (Revenue Amounts Shown in Millions) International Service Total Telephone Private Miscellaneous International Line Billed Revenues Americatel, Inc. $46 $46 AT&T Corp. ** ** ** BCE Nexxia Corporation ** ** ** Bestel USA Inc. 59 59 Bharti Airtel Limited 36 36 BT Americas Inc. ** ** Cable & Wireless Americas Operations, Inc. 4 4 Carrier PB Telco, Inc. 1 1 Centennial Puerto Rico Operations Corp. 5 5 China Telecom (USA) Corporation 12 12 China Unicom USA Corp. ** ** Chungwa Telecom Global, Inc. 1 1 Cinergy Telecommunications, Inc. 4 4 Colt Telecommunications 2 2 Comsat International Holdings, LLC 15 15 Deutsche Telekom AG/T-Systems ** ** Equant Inc. d/b/a Orange Business Services ** ** ** France Telecom Long Distance USA, LLC 6 3 9 Global Crossing/Impsat USA, Inc. 30 30 Global Telecom & Technology Americas, Inc. ** ** GNG Networks America, Inc. * * IDT Corporation ** ** Intelsat USA License Corp. 2 2 IT&E Overseas, Inc. 8 1 8 IUSATEL USA, Inc. ** ** KDDI America, Inc. 11 10 21 KPN International Network Services, Inc. ** ** Level 3 Communications, LLC 6 6 Local Communications International LLC 1 1 New Century InfoComm Tech Co. ** ** New Edge Networks * * Nexion Media, Inc. ** ** NTT America, Inc. 7 7 Orbitel S.A. E.S.P. 19 7 26 Pacifica Telecom Inc. 7 * 7 PCCW Global Limited 38 1 39 Philippine Long Distance Telephone Co., Ltd. 1 * 1 Primus Telecommunications, Inc. ** ** Q-Comm Corp./Norlight Telecommunications * * Qwest Services Corporation 42 42 Reach Services (USA) Inc. ** ** ** Reliance Communications, Inc. 297 4 301 Saskatchewan Telecommunications ** ** Satellite Communication Systems, Inc. * 22 SAVVIS, Inc. ** ** Sierra USA Communications, Inc. 5 5 Singapore Telecom USA, Inc. ** ** ** Smitcoms, Inc. Sprint Nextel Corporation 1,911 81 86 2,078 Startec Global Communications Corporation 3 3 Stratos Mobile Networks, Inc. 2 2 Syniverse Technologies, Inc. 69 69 Telecom Argentina USA, Inc. 7 7 Telecom Colombia USA, Inc. 9 9 Telecom Italia Sparkle of North America, Inc 135 135 Telecom New Zealand USA, Ltd. ** ** Telecomunicaciones Ultramarinas-Puerto Rico * * Telefonica Larga Distancia, Inc. (TLD) 3 * 4 Telekom Malaysia (USA), Inc. * * Telenor Global Services AS 2 2 TeliaSonera AB ** ** ** Telmex 23 23 Telstra Incorporated ** ** TELUS Corporation ** ** ** Tricom USA, Inc. 45 45 UniPlex Telecom Technologies, Inc. * * Universal Telecom Services, Inc. 15 15 Verizon Communications Inc. ** ** ** ** Verizon Commun. Inc./MCI Int'l., Inc./VICSI 1,266 76 1,342 Viatel Holding (Bermuda) Limited * * VSNL America, Inc. ** ** ** Total All Carriers 2/ $7,292 $678 $99 $8,069 * Represents revenues greater than $0 but less than $500,000. ** 1/ 2/ Represents amounts for which the carrier requested confidential treatment. The amounts are included in the totals. Source: International Bureau, International Telecommunications Data. Includes revenues reported for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands. Also includes $12 million of revenues for calls between the domestic United States and these points. Totals exclude pure resale services. Data do not show settlement receipts for terminating foreign billed traffic. 6 - 6 Table 6.5 Top Providers of Pure Resale International MTS in 2006 Percent Number of Number of U.S. Carrier of Total Messages Minutes Revenues IMTS (Millions) (Millions) ($ Millions) Resale Revenues Acceris Management and Acquisition LLC 15 152 $18 0.30 % Qwest Communications International, Inc. 2 23 7 0.12 Deutsche TeleKom AG 31 394 94 1.54 Sprint Nextel Corporation 139 205 24 0.40 Verizon Communications, Inc. 9 69 12 0.21 Locus Telecommunications, Inc 3 16 8 0.14 Reliance Communications International, Inc 37 155 8 0.14 Global Crossing 8 77 10 0.16 Americatel, Inc. 4 18 8 0.14 Computer Tel, Inc. 3 19 10 0.16 Startec Global Communications Corporation 6 59 14 0.22 Dollar Phone Corp. 58 581 73 1.20 Telecom Italia Sparkle of North America, Inc 9 182 16 0.27 Cox Communications, Inc. 31 305 38 0.63 NobelTel, LLC 235 1,406 414 6.82 Embarq Communications, Inc. 64 872 47 0.78 NECC Telecom, Inc. 12 94 35 0.57 Trilogy International Enterprises LLC 891 4,148 135 2.22 Belgacom International Carriers Services S.A 31 125 21 0.35 Gold Line Telemanagement, Inc 5 48 16 0.26 One Phone, Inc. 84 249 16 0.26 Acceris Management and Acquisition LLC 256 3,517 198 3.26 PaeTec Corporation 11 207 17 0.28 Logical Telecom, LP 6 57 9 0.15 Comtel Telcom Assets LP 20 211 10 0.17 Level 3 Communications, Inc. 25 244 29 0.47 Hawaiian Telcom Services Company, Inc 28 47 6 0.09 WDT World Discount Telecommunications Co. 21 201 6 0.10 Comcast 46 361 35 0.58 Cavalier Telephone Corporation 7 68 9 0.14 Telmex 9 103 20 0.33 Virgin Mobile USA, LLC 38 135 18 0.30 United States Cellular Corporation 1,329 6,337 435 7.16 Maskina Communications 107 1,286 174 2.87 CIMA Telecom, Inc. 24 193 5 0.09 StarVox Communications, Inc. 509 1,834 268 4.42 Citizens Communications Company 35 324 52 0.86 Lunex Telecom, Inc. 234 418 10 0.16 NOS Communications, Inc. 527 5,353 684 11.25 CenturyTel, Inc. 26 272 7 0.11 Chunghwa Telecom Global, Inc. 116 619 42 0.69 Cincinnati Bell, Inc. 15 187 12 0.19 Telscape Communications, Inc. 5 56 8 0.14 Working Assets Funding Services, Inc. 35 168 29 0.47 ACN Communication Services, Inc. 6 24 11 0.19 Windstream Communications, Inc. 463 2,211 246 4.04 Telecom Argentina USA, Inc. 9 48 11 0.19 Next Communication, Inc. 23 213 15 0.25 Net One International, Inc. 4 21 7 0.11 RNK, Inc. d/b/a RNK Telecom 2 19 8 0.13 Total for 30 Companies Requesting Confidential Treatment 3,058 17,860 2,499 41.12 Total for 733Companies Not Shown Above 1/ 676 2,305 172 2.83 Total for all Reporting Carriers 9,347 54,094 $6,077 100.00 % 1/ Data are consolidated for affiliated carriers. A total of 820 companies made a total of 927 filings. Source: International Bureau, International Telecommunications Data . 6 - 7 7 - 1 7 Lines Within the telephone industry there are several alternative, but closely related, definitions of telephone lines or loops. While these differences often make it difficult to reconcile data from different statistical series, they are not usually large enough to affect comparisons among companies or trends over time. Since 1970, over 90% of households and virtually all businesses have subscribed to telephone service. Until 2000, line growth over time, averaging about 3% per year, has historically reflected growth in the population and the economy. Since then, the number of lines provided by wireline carriers has declined, likely due to some consumers substituting wireless service for wireline service, and some households eliminating second lines when they move from dial-up Internet service to broadband service. Table 7.1 shows the nation's total number of telephone lines using three alternative measures. The first measure is the number of end-user switched access lines for both incumbent local exchange carriers (LECs) and competitive local exchange carriers (CLECs) as reported to the Commission on the FCC Form 477. These data undercount lines by a small amount because carriers with less than 10,000 lines in a state were not required to file the FCC Form 477 prior to September 2005. The second measure is the number of local loops, which is a way of counting lines that is used to determine the amount of high-cost universal service support provided to eligible telecommunications carriers. The number of local loops includes end-user access lines, lines resold to other carriers and UNE loops with switching (UNE-P). This measure excludes CLEC lines provided over their own facilities. The third measure, access lines, represents estimates for the whole incumbent LEC industry based on data filed with the Commission by large incumbent LECs through the Automated Reporting Management Information System (ARMIS). This measure excludes a substantial number of incumbent LEC lines provided to CLECs as UNE-P lines between 2001 and 2006. Table 7.2 shows the number of local exchange operating areas (study areas – company’s operations in one state) and loops in each state, and shows breakdowns by loops for price-cap and average-schedule companies. 1 Table 7.3 shows the number of loops by holding companies, and Chart 7.1 shows the five largest holding companies’ share of loops. Table 7.4 compares residential local loops with the number of households with telephone service. Before 2001, the difference between these series was an approximate measure of the number of non-primary residential lines. However, beginning in 2001, a significant number of households started replacing wireline service with wireless service, requiring an adjustment be made to account for wireless only households. Table 7.4 1 Average schedule companies have been permitted by the Commission to estimate their access settlements and universal service support through the use of average schedules to avoid the difficulties and expenses involved with conducting company-specific cost studies. 7 - 2 shows that the number of non-primary residential lines grew dramatically from 2.3 million in 1988 to 26.3 million in 2001 and then decreased back to 10.5 million in 2006. Tables 7.5 and 7.6 display payphone line information. Long distance carriers are required to pay payphone owners 49 cents for every completed dial-around call (calls where the consumer chooses the long distance carrier over the payphone’s presubscribed long distance carrier). 2 Because of this requirement, several long distance carriers employ the National Payphone Clearinghouse to administer payments on their behalf. On an annual basis, the National Payphone Clearinghouse 3 supplies the FCC with data that allow the number of payphones in each state to be calculated. Table 7.5 shows the number of payphones owned by LECs and by independent payphone operators in each state. The number of payphones is broken down by whether the payphones are served by an RBOC or by another LEC. Payphones located in RBOC territories but served by a CLEC are accounted for in the RBOC territories columns. Similarly, payphones located in non-RBOC territories (i.e., other incumbent LEC territories) but served by a CLEC are accounted for in the all other LEC territories columns. Data for earlier years can be found in earlier editions of Trends. Table 7.6 shows the number of payphones over time. The National Payphone Clearinghouse began providing detailed data to the Commission starting with data as of March 31, 1999. Where possible, data from the payphone proceedings were used to fill values for 1997 and 1998 (see the footnotes to Table 7.6 for citations). 2 See Report and Order, CC Docket 03-225, adopted Jul. 27, 2004. 3 Further information on the National Payphone Clearinghouse can be found at https://www.npc.cc/home.aspx. Table 7.1 Total U.S. Wireline Telephone Lines (End of Year Data) Year Annual ILEC Local Annual ILEC Access Annual End Growth Loops 2 Growth Lines 3 Growth (%) (%) (%) 1980 102,216,367 1981 105,559,222 3.3 % 1982 107,519,214 1.9 1983 110,612,689 2.9 1984 112,550,739 1.8 113,832,113 1985 115,985,813 3.1 117,384,865 3.1 % 1986 118,289,121 2.0 120,730,205 2.8 1987 122,789,249 3.8 124,625,693 3.2 1988 127,086,765 3.5 126,899,632 1.8 1989 131,504,568 3.5 130,860,026 3.1 1990 136,114,201 3.5 134,685,732 2.9 1991 139,412,884 2.4 139,613,309 3.7 1992 143,341,581 2.8 142,367,463 2.0 1993 148,106,159 3.3 147,033,132 3.3 1994 153,447,946 3.6 151,543,061 3.1 1995 159,658,662 4.0 158,152,644 4.4 1996 166,445,580 4.3 165,350,308 4.6 1997 173,866,799 4.5 173,857,193 5.1 1998 179,849,045 3.4 180,516,161 3.8 1999 189,397,096 185,002,911 2.9 186,594,497 3.4 2000 192,432,431 1.6 % 188,499,586 1.9 187,581,092 0.5 2001 191,570,800 -0.4 185,587,160 -1.5 179,811,283 -4.1 2002 189,250,143 -1.2 180,095,333 -3.0 172,245,846 -4.2 2003 182,933,281 -3.3 173,140,710 -3.9 161,374,473 -6.3 2004 177,690,711 -2.9 165,979,938 -4.1 154,039,066 -4.5 2005 175,160,940 -1.4 157,037,503 -5.4 147,993,264 -3.9 2006 167,504,016 -4.4 146,848,926 -6.5 140,029,044 -5.4 1 Include end-user switched access lines for competitive local exchange carriers (CLECs) and incumbent local exchange carriers (ILECs) as reported in FCC Form 477. Prior to June 2005, only carriers with greater than 10,000 lines in a state were required to report. Now all carriers are required to report. 2 Include end-user switched access lines, resold lines, and UNE-P lines. 3 Beginning in 2001, a substantial number of ILEC lines provided to CLECs as UNE-P lines are not included in this total. Source: CLEC and ILEC access lines: Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2006 (December 2007). Local loops: National Exchange Carrier Association, Universal Service Fund filings. Access Lines: Industry Analysis and Technology Division, Wireline Competition Bureau, Statistics of Communications Common Carriers , Table 4.10, after inflating access lines of reporting carriers to represent the total industry. The 1996 adjustment factor was used for the years prior to 1996. CLEC and ILEC Lines 1 7 - 3 Table 7.2 Telephone Loops of Incumbent Local Exchange Carriers by State (As of December 31, 2006) Price Cap Non-Price Cap Study Areas Bell Company Loops 1 Other Company Loops Average Schedule Company Loops 2 Other Company Loops Total Loops Alabama 28 1,617,991 271,386 28,869 167,660 2,085,906 Alaska 25 0 0 224 369,767 369,991 American Samoa 1 0 0 0 10,746 10,746 Arizona 17 2,053,580 158,343 0 39,693 2,251,616 Arkansas 28 837,953 0 12,609 395,546 1,246,108 California 22 19,282,590 146,722 0 209,436 19,638,748 Colorado 28 2,176,671 0 1,100 123,595 2,301,366 Connecticut 2 1,833,313 0 21,090 0 1,854,403 Delaware 1 491,408 0 0 0 491,408 District of Columbia 1 724,194 0 0 0 724,194 Florida 12 7,207,066 1,827,355 0 180,192 9,214,613 Georgia 36 3,340,992 2,503 57,327 766,173 4,166,995 Guam 1 0 0 0 62,640 62,640 Hawaii 2 0 586,201 0 1,541 587,742 Idaho 20 606,888 21,308 1,512 43,681 673,389 Illinois 57 6,131,721 108,394 34,222 189,442 6,463,779 Indiana 42 2,699,891 222,681 31,252 117,641 3,071,465 Iowa 154 862,668 287,771 165,127 66,384 1,381,950 Kansas 39 963,488 102,642 0 125,659 1,191,789 Kentucky 19 971,468 650,787 67,096 122,321 1,811,672 Louisiana 20 1,736,929 0 1,262 166,246 1,904,437 Maine 20 594,367 0 33,727 101,947 730,041 Maryland 2 3,273,534 0 0 7,132 3,280,666 Massachusetts 3 3,228,285 0 0 3,820 3,232,105 Michigan 39 4,484,198 22,631 24,105 153,162 4,684,096 Minnesota 88 1,658,043 384,698 204,994 177,154 2,424,889 Mississippi 19 1,100,881 0 9,444 80,086 1,190,411 Missouri 44 2,114,009 514,530 9,743 288,929 2,927,211 Montana 18 284,363 7,824 3,539 153,359 449,085 Nebraska 40 312,844 306,857 14,937 84,525 719,163 Nevada 14 384,602 766,065 0 33,479 1,184,146 New Hampshire 10 619,293 0 2,209 51,530 673,032 New Jersey 3 4,856,793 183,259 0 8,176 5,048,228 New Mexico 17 733,152 93,020 0 45,890 872,062 New York 44 8,210,556 733,106 13,943 226,334 9,183,939 North Carolina 26 2,238,738 1,205,756 214,502 461,309 4,120,305 North Dakota 22 157,828 0 54,441 106,198 318,467 Northern Mariana Islands 1 0 20,926 0 0 20,926 Ohio 42 3,883,542 1,156,077 46,956 347,418 5,433,993 Oklahoma 39 1,227,273 82,967 3,845 221,902 1,535,987 Oregon 33 1,510,495 78,065 2,559 141,835 1,732,954 Pennsylvania 36 5,447,602 376,312 546,707 231,762 6,602,383 Puerto Rico 2 0 0 0 1,068,168 1,068,168 Rhode Island 1 380,875 0 0 0 380,875 South Carolina 26 1,370,672 86,363 56,424 452,562 1,966,021 South Dakota 31 165,310 0 67,431 75,066 307,807 Tennessee 25 2,159,372 319,140 102,785 246,654 2,827,951 Texas 58 9,139,311 630,792 10,122 528,617 10,308,842 Utah 14 884,440 22,549 10,126 60,764 977,879 Vermont 10 322,138 0 4,560 58,425 385,123 Virgin Islands 1 0 0 0 68,130 68,130 Virginia 21 3,379,034 369,633 86,895 25,980 3,861,542 Washington 25 2,673,506 73,659 4,434 238,211 2,989,810 West Virginia 10 737,998 149,380 1,451 15,102 903,931 Wisconsin 90 1,896,253 51,578 184,366 548,005 2,680,202 Wyoming 10 203,026 6,343 0 44,230 253,599 Total 1,439 123,171,144 12,027,623 2,135,935 9,514,224 146,848,926 1 Includes loops owned by Verizon/GTE and SBC/Southern New England Telephone. Excludes Woodbury Telephone of Connecticut, affiliated with AT&T, 21,090 average schedule company loops. Also excludes Puerto Rico Telephone Company, affiliated with Verizon, 1,068,168 rate of return lines. Source: NECA, Universal Service Fund 2007 Submission of 2006 Study Results (October 1, 2007). 2 Average schedule companies have been permitted by the Commission to estimate their access settlements and universal service support through the use of average schedules to avoid the difficulties and expenses involved with conducting company-specific cost studies. 7 - 4 Table 7.3 (As of December 31, 2006) Holding Companies Loops Percent of Loops AT&T Inc. 65,669,563 44.72 % Verizon Communications Inc. 45,524,091 31.00 Qwest Communications International, Inc. 13,066,748 8.90 Embarq Corporation 6,603,481 4.50 Windstream Corporation 3,014,037 2.05 CenturyTel, Inc. 2,065,242 1.41 Citizens Communications Company 2,001,652 1.36 Cincinnati Bell 814,120 0.55 TDS Telecommunications Corporation 619,888 0.42 Hawaiian Telecom Communications, Inc. 586,201 0.40 Commonwealth Telephone Enterprises, Inc. 298,947 0.20 Alaska Communications Systems 240,814 0.16 Iowa Network Services, Inc. 240,796 0.16 FairPoint Communications, Inc. 239,994 0.16 Consolidated Communications, Inc. 219,929 0.15 Madison River Telephone Company 164,179 0.11 Comporium Communications 139,126 0.09 D&E Communications, Inc. 129,313 0.09 Surewest Communications 121,615 0.08 CT Communications, Inc. 107,989 0.07 North State Communications Corporation 107,530 0.07 Horry Telephone Cooperative, Inc. 93,706 0.06 Hargray Communications Group, Inc. 75,384 0.05 Virgin Island Telephone Company 68,130 0.05 North Pittsburgh Telephone Company 65,270 0.04 Guam Telephone Authority 62,640 0.04 Matanuska Telephone Association, Inc. 61,203 0.04 Famers Telephone Cooperative, Inc. (SC) 55,089 0.04 Pioneer Telephone Cooperative (OK) 52,666 0.04 Hickory Tech Corporation 51,788 0.04 Lynch Interactive Corporation 51,715 0.04 Ntelos, Inc. 43,485 0.03 Atlantic Telephone Membership Corporation 42,813 0.03 Golden West Telecommunications Cooperative, Inc. 41,977 0.03 Guadalupe Valley Telephone Cooperative, Inc. 41,961 0.03 Twin Lake Telephone Cooperative Corporation 37,607 0.03 SRT Services Corporation 37,605 0.03 Skyline Telephone Membership Corporation 36,153 0.02 East Ascension Telephone Company, LLC 35,933 0.02 All Other Companies 3,918,546 2.67 Total 146,848,926 100.00 % Source: NECA, Universal Service Fund 2007 Submission of 2007 Study Results (October 1, 2007). Telephone Loops of Incumbent Local Exchange Carriers by Holding Company 1 1 Includes incumbent local exchange carriers' loops for holding companies with more than 35,000 loops. Five Largest Holding Companies' Share of Loops Chart 7.1 AT&T Inc. 44.7% Qwest 8.9% Windstream 2.1% Verizon 31.0% Embarq 4.5% All Others 8.8% 7 - 5 Table 7.4 Additional Residential Lines For Households with Telephone Service (End-of-Year Data in Millions) Wireline Loops 1 Households Households Primary Non-Primary with with Residential Residential Residential Non- Total Telephone Wireless Wirelines Wirelines Residential Loops Service 2 Only 3 87.7 38.5 126.2 85.4 85.4 2.3 90.0 40.6 130.6 87.4 87.4 2.6 92.2 42.9 135.1 88.4 88.4 3.9 95.9 42.5 138.4 89.4 89.4 6.5 99.3 43.0 142.3 91.0 91.0 8.3 101.8 45.2 147.0 93.0 93.0 8.8 105.1 47.2 152.3 93.7 93.7 11.4 108.1 50.4 158.5 94.2 94.2 13.9 111.1 54.3 165.4 95.1 95.1 16.0 114.7 58.2 172.9 96.5 96.5 18.2 117.1 62.6 179.8 98.0 98.0 19.1 122.7 63.5 186.2 99.1 99.1 23.6 126.4 65.8 192.2 100.2 100.2 26.2 127.3 62.8 190.1 102.2 1.2 101.0 26.3 120.5 64.6 185.1 104.0 1.8 102.2 18.4 2003 118.1 60.6 178.8 107.1 5.0 102.1 16.0 2004 113.9 59.2 173.1 106.4 6.3 100.1 13.8 2005 107.8 58.0 165.8 107.0 11.3 95.6 12.1 2006 100.0 56.8 156.8 108.8 19.3 89.5 10.5 1 Loop counts provided by the National Exchange Carrier Association. American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands totals have been removed. Total loops were divided between residential and non-residential using the ratio of residential to non-residential access lines reported in Industry Analysis and Technology Division, Wireline Competition Bureau, Statistics of Communications Common Carriers . Those totals also exclude Puerto Rico, but cover only the carriers that file ARMIS reports (of which there are none for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands). Loop counts beginning in 1996 have been increased by estimated competitive local exchange carrier lines from the Association for Local Telecommunications Services (now known as Comptel/ALTS) and the report by the Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2006 (December 2007). Beginning in 2001 a significant number of households began to have wireless service. The estimate of this amount for 2001 is from the November 2001 Current Population Survey. Beginning in 2002, the numbers of primary and non-primary residential lines for households with telephones was estimated using the ratio of primary (Lifeline and Non-Lifeline) to non- primary residential access lines reported in Table 2.4 of Statistics of Communications Common Carriers, and the estimate of wireless-only is based on the difference between households with phone service and estimated primary residential lines. 2 Current Population Survey (U.S. Department of Commerce, U.S. Census Bureau). 3 Because the number of households with wireless only is calculated as a difference between households with telephone service and primary residential lines, this estimate may include some VoIP customers not included in the Local Telephone Competition report. Source: FCC staff estimates. 1995 2000 2001 2002 1996 1997 1998 1999 1991 1992 1993 1994 Year 1988 1989 1990 7 - 6 Table 7.5 Number of Payphones Owned by LECs and Independent Operators (As of March 31, 2007) RBOC Territories All Other LEC Territories Grand State LEC-Owned Independent LEC-Owned Independent LEC-Owned Independent Total Alabama 0 6,541 1,012 1,451 1,012 7,992 9,004 Alaska 0 0 2,127 1,239 2,127 1,239 3,366 Arizona 58 15,611 14 1,824 72 17,435 17,507 Arkansas 2,422 1,425 1,643 771 4,065 2,196 6,261 California 46,043 70,914 288 1,570 46,331 72,484 118,815 Colorado 0 10,255 206 340 206 10,595 10,801 Connecticut 6,666 760 0 2 6,666 762 7,428 Delaware 1,683 1,217 0 0 1,683 1,217 2,900 District of Columbia 3,956 576 0 0 3,956 576 4,532 Florida 5,426 25,839 5,316 4,457 10,742 30,296 41,038 Georgia 44 13,443 1,840 2,841 1,884 16,284 18,168 Hawaii 0 0 5,235 464 5,235 464 5,699 Idaho 386 2,090 105 254 491 2,344 2,835 Illinois 16,840 15,528 239 1,142 17,079 16,670 33,749 Indiana 7,922 5,770 1,286 663 9,208 6,433 15,641 Iowa 15 4,362 391 884 406 5,246 5,652 Kansas 1,681 2,422 537 421 2,218 2,843 5,061 Kentucky 0 4,813 2,292 2,849 2,292 7,662 9,954 Louisiana 0 6,858 255 484 255 7,342 7,597 Maine 3,074 457 17 263 3,091 720 3,811 Maryland 15,579 6,926 0 8 15,579 6,934 22,513 Massachusetts 17,376 7,745 0 0 17,376 7,745 25,121 Michigan 10,205 11,728 473 459 10,678 12,187 22,865 Minnesota 58 7,325 939 1,177 997 8,502 9,499 Mississippi 111 4,738 91 176 202 4,914 5,116 Missouri 4,040 5,042 2,455 2,224 6,495 7,266 13,761 Montana 45 1,733 341 415 386 2,148 2,534 Nebraska 0 2,307 2,507 589 2,507 2,896 5,403 Nevada 577 1,265 1,866 5,614 2,443 6,879 9,322 New Hampshire 2,895 1,058 98 44 2,993 1,102 4,095 New Jersey 30,515 10,830 926 94 31,441 10,924 42,365 New Mexico 0 4,416 180 702 180 5,118 5,298 New York 68,166 33,317 4,613 3,742 72,779 37,059 109,838 North Carolina 821 8,227 4,944 6,262 5,765 14,489 20,254 North Dakota 0 556 74 131 74 687 761 Ohio 11,395 8,042 5,845 2,325 17,240 10,367 27,607 Oklahoma 3,110 3,365 1,036 531 4,146 3,896 8,042 Oregon 736 8,322 466 810 1,202 9,132 10,334 Pennsylvania 20,351 13,581 2,076 5,086 22,427 18,667 41,094 Rhode Island 2,205 1,606 0 0 2,205 1,606 3,811 South Carolina 608 7,392 1,013 1,230 1,621 8,622 10,243 South Dakota 1 1,345 305 173 306 1,518 1,824 Tennessee 0 9,483 1,271 1,875 1,271 11,358 12,629 Texas 20,735 32,952 1,764 3,130 22,499 36,082 58,581 Utah 1 4,222 127 463 128 4,685 4,813 Vermont 1,562 218 3 68 1,565 286 1,851 Virginia 16,443 7,832 1,576 971 18,019 8,803 26,822 Washington 1,886 12,455 365 1,055 2,251 13,510 15,761 West Virginia 4,380 574 18 880 4,398 1,454 5,852 Wisconsin 4,100 4,109 2,692 1,785 6,792 5,894 12,686 Wyoming 0 1,482 142 118 142 1,600 1,742 Totals 334,117 413,074 61,009 64,056 395,126 477,130 872,256 Source: Raw data provided by National Payphone Clearinghouse. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. Statewide 7 - 7 All Other LECs' Territories Grand Year LEC-Owned Independent Total LEC Owned Independent Total LEC Owned Independent Total 1997 1,399,600 1 NA NA NA NA NA NA NA 2,086,540 2 1998 1,381,800 1 NA NA NA NA NA NA NA 2,100,558 2 1999 1,305,463 572,503 1,877,966 80,491 163,069 243,560 1,385,954 735,572 2,121,526 2000 1,244,535 633,022 1,877,557 63,808 122,353 186,161 1,308,343 755,375 2,063,718 2001 1,131,377 571,778 1,703,155 88,399 128,086 216,485 1,219,776 699,864 1,919,640 2002 964,999 531,801 1,496,800 95,639 118,622 214,261 1,060,638 650,423 1,711,061 2003 854,295 464,479 1,318,774 75,885 101,127 177,012 930,180 565,606 1,495,786 2004 737,146 455,506 1,192,652 78,642 73,705 152,347 815,788 529,211 1,344,999 2005 587,373 486,384 1,073,757 78,815 63,603 142,418 666,188 549,987 1,216,175 2006 444,649 453,283 897,932 59,197 49,673 108,870 503,846 502,956 1,006,802 2007 334,117 413,074 747,191 61,009 64,056 125,065 395,126 477,130 872,256 NA - Not Available. Table 7.6 Number of Payphones Over Time (As of March 31 of Each Year) Source: Unless otherwise noted, raw data provided by National Payphone Clearinghouse. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. 1 See RBOC/GTE/SNET Payphone Coalition Comments on Remand Issues in CC Docket No. 96-128, Report of Arthur Andersen on Per- Call Compensation, Carl R. Geppert at 10 (July 13, 1998). 2 See Letter from Denny Reuss, NPC Product Manager, to Craig Stroup, Federal Communications Commission, CC Docket 96-128 at 1 (Filed October 22, 1998. The 1997 data point is as of June 30, 1997.) RBOCs' Territories 7 - 8 8 - 1 8 Local Telephone Competition For most of the past century, households and businesses had no choice in selecting their local telephone company. In the 1980s, competitive access providers (CAPs) began to market access services provided over CAPs’ wired networks to business customers. To some extent they also carried local telephone calls among their customers. In the 1990s, some CAPs and other companies, including affiliates of cable television companies and local service divisions of long distance companies, began to offer local telephone services to a broader range of customers. Companies with operations in larger cities added operations in smaller cities, where the typical customer is more likely to be a small or medium-sized business than a large business, and some new companies focused on smaller cities from the beginning. The newer competitors are often called competitive local exchange carriers (CLECs), although the terms CAPs and CLECs are sometimes used interchangeably. The Telecommunications Act of 1996 (1996 Act) contemplated three vehicles for competitors to enter local telephone service markets. First, CLECs may resell the services of incumbent local exchange carriers (LECs). Second, CLECs may make use of incumbent LEC facilities, for example, by leasing incumbent LEC unbundled network elements (UNEs) loops and transport. Third, CLECs may build the complete set of facilities they need to compete. Individual competitors have used various combinations of these methods at different times. 1. CLEC Share of Switched Access Lines All incumbent LECs and CLECs were required to report to the Commission basic information about their local telephone service, as of June 30, 2005. The FCC previously (i.e., as of December 31, 1999 and each succeeding June 30 and December 31 through the end of 2004) collected data from carriers with at least 10,000 switched access lines in service in a particular state. Small carriers, many of whom serve rural areas with relatively small populations, were therefore underrepresented in the earlier data. 1 Table 8.1 and the associated chart show the number of incumbent LEC and CLEC end-user switched access lines from December 1999 through June 2007. Table 8.2 and the associated chart show the relative shares of the residential end-user switched access lines provisioned by incumbent LECs and CLECs from December 1999 through June 2007. 1 As of December, 2005, filers with fewer than 10,000 switched access lines in a state (including entities that previously filed on a voluntary basis) reported about 4.5 million lines (about 2.0 million incumbent LEC lines and about 2.5 million CLEC lines). 8 - 2 Table 8.3 shows the percentages of CLEC end-user lines that were provisioned over their own facilities and those lines acquired from unaffiliated carriers from December 1999 through June 2007. Chart 8.3 displays that information graphically for June 2007. Data reported by incumbent LECs, presented in Table 8.4, show the lines that incumbent LECs provided to other carriers as UNE loops provided with incumbent LEC switching (including the UNE-platform), UNE loops provided without switching, and resale. Chart 8.4 shows the trend, from December 1999 through June 2007, of incumbent LEC total switched access lines and the percentages provided to other carriers. Table 8.5 shows incumbent LEC and CLEC end-user switched access lines by state, and the CLEC share by state, at the end of June 2007. Table 8.6 presents historical data on CLEC share by state. 2. CLEC Share of Local Telephone Service Revenues As discussed in Section 15, the Commission has been collecting revenue data from local exchange carriers since 1993. Table 8.7 shows CLEC and incumbent LEC local telephone service revenues from 1995 through 2006. Chart 8.5 shows the incumbent LEC and CLEC shares of local service revenues from 1998 through 2006. 3. Ported Telephone Numbers When telecommunications customers switch service providers, they have the option of taking their local telephone number with them. This is called porting. All ported numbers reside in one of seven regional databases. These databases contain several elements of information about ported numbers, including identifiers for the old and new carriers, and the date the number was ported. The porting databases are overseen by the local number portability administrator, currently NeuStar, Inc. NeuStar provides the FCC with two sets of information on ported numbers. The first set of information is a rollup of the quantity of telephone numbers that were ported each month. This information forms the basis for Table 8.8. Unlike Tables 8.9 and 8.10 (see footnote 2 in Table 8.10), these figures include instances where the customer ports the number back to the original carrier. The second set of information that the FCC receives from NeuStar on a monthly basis is a current list of all ported numbers where the customer changed carriers. For each number, the list includes identifiers for the old and new carriers for that number, and the date the number was ported. In order to protect consumer privacy, the Commission receives the information in a manner that prevents it from determining if any particular telephone number has been ported. This information forms the basis for Tables 8.9 and 8.10. 8 - 3 Table 8.9 shows the quantities of ports in the porting databases at the end of each quarter. The ports are broken out by service type: from landline to landline, landline to mobile, mobile to mobile, or mobile to landline. Table 8.10 examines the ports in the databases as of December 31, 2007. It shows, by service type, when each number in the database was ported. Date ILEC Lines CLEC Lines Total Dec 1999 181,202,853 8,194,243 189,397,096 4.3 % Jun 2000 179,648,725 11,557,381 191,206,106 6.0 Dec 2000 177,561,022 14,871,409 192,432,431 7.7 Jun 2001 174,752,275 17,274,727 192,027,002 9.0 Dec 2001 171,917,359 19,653,441 191,570,800 10.3 Jun 2002 167,330,006 21,644,928 188,974,934 11.5 Dec 2002 164,386,452 24,863,691 189,250,143 13.1 Jun 2003 158,274,538 26,985,345 185,259,883 14.6 Dec 2003 153,157,843 29,775,438 182,933,281 16.3 Jun 2004 147,993,218 32,033,915 180,027,133 17.8 Dec 2004 144,809,899 32,880,812 177,690,711 18.5 Jun 2005 143,757,708 33,975,336 177,733,044 19.1 Dec 2005 143,773,101 31,387,839 175,160,940 17.9 Jun 2006 142,293,047 29,896,109 172,189,156 17.4 Dec 2006 138,833,928 28,625,971 167,459,899 17.1 Jun 2007 134,458,920 28,711,461 163,170,381 17.6 (Lines in Millions) CLEC Share Table 8.1 End-User Switched Access Lines Reported Only LECs with at least 10,000 lines in a state were required to report through December 2004. Beginning with the June 2005 data all LECs are required to report. End-User Switched Access Lines Reported Chart 8.1 Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). 0 20 40 60 80 100 120 140 160 180 200 ILEC Lines CLEC lines CLEC lines 8.2 11.6 14.9 17.3 19.7 21.6 24.9 27.0 29.8 32.0 32.9 34.0 31.4 29.9 28.6 28.7 ILEC Lines 181.2 179.6 177.6 174.8 171.9 167.3 164.4 158.3 153.2 148.0 144.8 143.8 143.8 142.3 138.8 134.5 Dec 1999 Jun 2000 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Dec 2002 Jun 2003 Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 8 - 5 Dec 1999 139,694,481 41,508,372 77.1 % 3,368,702 4,825,541 41.1 % Jun 2000 140,566,144 39,082,581 78.2 4,579,501 6,977,880 39.6 Dec 2000 138,824,111 38,736,911 78.2 6,620,471 8,250,938 44.5 Jun 2001 134,530,884 40,221,391 77.0 7,793,071 9,481,656 45.1 Dec 2001 133,320,119 38,597,240 77.5 9,489,049 10,164,392 48.3 Jun 2002 130,937,328 36,392,678 78.3 11,080,676 10,564,252 51.2 Dec 2002 127,494,698 36,891,754 77.6 14,608,495 10,255,196 58.8 Jun 2003 122,573,530 35,701,008 77.4 16,770,561 10,214,784 62.1 Dec 2003 118,658,867 34,498,976 77.5 18,702,229 11,073,209 62.8 Jun 2004 114,533,368 33,459,850 77.4 20,871,756 11,162,159 65.2 Dec 2004 112,054,420 32,755,479 77.4 19,811,711 13,069,101 60.3 Jun 2005 95,315,689 48,442,019 66.3 16,338,117 17,637,219 48.1 Dec 2005 94,392,526 49,380,575 65.7 13,873,331 17,514,508 44.2 Jun 2006 92,453,320 49,839,727 65.0 12,474,434 17,421,675 41.7 Dec 2006 89,166,539 49,667,389 64.2 12,210,978 16,414,993 42.7 Jun 2007 85,508,200 48,950,720 63.6 12,105,557 16,605,904 42.2 1 Included small business lines through December 2004. 2 Excluded small business lines through December 2004. 1 Included small business lines through December 2004. Table 8.2 End-User Switched Access Lines by Customer Type Reporting CLECsReporting ILECs Date Percent of Lines That Serve Residential Customers 1 Chart 8.2 Only LECs with at least 10,000 lines in a state were required to report through December 2004. Beginning with the June 2005 data all LECs are required to report. % Residential Business 2 Business 2 Residential 1 % Residential Residential 1 Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). 0% 10% 20% 30% 40% 50% 60% 70% 80% ILECs CLECs ILECs 77.1% 78.2% 78.2% 77.0% 77.5% 78.3% 77.6% 77.4% 77.5% 77.4% 77.4% 66.3% 65.7% 65.0% 64.2% 63.6% CLECs 41.1% 39.6% 44.5% 45.1% 48.3% 51.2% 58.8% 62.1% 62.8% 65.2% 60.3% 48.1% 44.2% 41.7% 42.7% 42.2% Dec 1999 Jun 2000 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Dec 2002 Jun 2003 Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 8 - 6 CLEC- Owned 81 8,194 3,513 1,959 2,723 42.9% 23.9% 33.2% 78 11,557 4,315 3,201 4,042 37.3 27.7 35.0 89 14,871 4,114 5,540 5,217 27.7 37.3 35.1 91 17,275 3,919 7,580 5,776 22.7 43.9 33.4 94 19,653 4,250 9,332 6,072 21.6 47.5 30.9 96 21,645 4,478 10,930 6,236 20.7 50.5 28.8 112 24,864 4,677 13,709 6,479 18.8 55.1 26.1 125 26,985 4,887 15,728 6,370 18.1 58.3 23.6 136 29,775 4,842 17,888 7,045 16.3 60.1 23.7 137 32,034 4,927 19,624 7,483 15.4 61.3 23.4 149 32,881 5,417 18,961 8,503 16.5 57.7 25.9 326 33,975 5,826 19,025 9,124 17.1 56.0 26.9 382 31,388 6,704 14,521 10,163 21.4 46.3 32.4 400 29,896 6,548 12,547 10,802 21.9 42.0 36.1 397 28,626 5,819 11,663 11,144 20.3 40.7 38.9 398 28,711 6,184 11,505 11,023 21.5 40.1 38.4 2 Lines provided over CLEC-owned "last-mile" facilities. Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). Lines 2 Resold UNEs CLEC- Owned CLECs Reporting Total End- User Lines Resold Lines UNEs 1 Dec 2006 Dec 2005 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Acquired from Other Carriers Dec 2003 Chart 8.3 Competitive Local Exchange Carriers' End-User Lines Dec 2004 Jun 2004 Jun 2006 Only LECs with at least 10,000 lines in a state were required to report through December 2004. Beginning with the June 2005 data all LECs are required to report. Figures may not add to totals due to rounding. 1 Includes unbundled network element (UNE) loops leased from an unaffiliated carrier on a stand-alone basis and also UNE loops leased in combination with UNE switching or any other unbundled network element. Jun 2005 Date Jun 2007 Table 8.3 Reporting Competitive Local Exchange Carriers (End-User Switched Access Lines in Thousands) Jun 2003 Dec 1999 Percent Jun 2000 Dec 2002 UNEs 40.1% CLEC-Owned 38.4% Resold 21.5% 8 - 7 Dec 1997 9 159,008 157,132 133 1,876 1.2 % Jun 1998 8 161,810 159,118 244 2,692 1.7 Dec 1998 7 164,614 161,191 361 3,423 2.1 Jun 1999 7 167,177 162,909 685 4,268 2.6 Dec 1999 168 187,190 181,203 1,493 5,987 3.2 Jun 2000 159 188,058 179,649 3,312 8,409 4.5 Dec 2000 166 188,223 177,561 5,274 10,662 5.7 Jun 2001 156 187,092 174,752 7,922 12,340 6.6 Dec 2001 164 185,391 171,917 9,460 13,474 7.3 Jun 2002 166 182,345 167,330 11,540 15,015 8.2 Dec 2002 174 181,616 164,386 14,487 17,229 9.5 Jun 2003 181 177,770 158,275 17,263 19,495 11.0 Dec 2003 185 174,453 153,158 19,463 21,296 12.2 Jun 2004 185 171,050 147,993 21,458 23,057 13.5 Dec 2004 190 167,063 144,810 20,763 22,253 13.3 Jun 2005 757 164,449 143,758 18,895 20,691 12.6 Dec 2005 807 160,881 143,773 15,315 17,108 10.6 Jun 2006 805 156,872 142,293 12,856 14,579 9.3 Dec 2006 814 151,958 138,834 11,511 13,124 8.6 Jun 2007 814 146,491 134,459 10,515 12,032 8.2 With Switching 1,723 Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). Total UNEs 4,217 16,546 15,176 2,743 Without Switching 1 Data prior to December 1999 are from Common Carrier Bureau voluntary surveys. Only LECs with at least 10,000 lines in a state were required to report data for December 1999 through December 2004, after which all LECs are required to report. Figures may not add to totals due to rounding. 1,613 4,408 7,103 1,517 4,285 6,230 4,413 8,443 4,322 17,136 1,600 1,490 1,793 4,287 4,227 13,036 3,161 4,761 Chart 8.4 ILEC Lines and the Percent Provided to Other Carriers 3,679 5,781 4,469 10,846 4,300 14,596 1,796 2,232 2,838 2,436 4,259 10,227 7,478 3,475 4,061 4,417 1,004 489 1,696 1,616 3,583 1,743 2,448 Table 8.4 Reporting Incumbent Local Exchange Carriers (Switched Access Lines in Thousands) UNEs Provided to Other Carriers Percent of Total Lines Total UNEs & Resold Lines Date 1 End-User Lines Resold Lines ILECs Reporting Total Lines 4,014 1,833 5,388 3,062 5,098 4,494 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Dec 1999 Jun 2000 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Dec 2002 Jun 2003 Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Total ILEC Lines Percent of Total Lines Provided to Other Carriers 8 - 8 State ILECs CLECs Total Alabama 1,982,341 292,484 2,274,825 13 % Alaska 317,632 * * * American Samoa 10,705 0 10,705 0 Arizona 2,109,166 1,042,689 3,151,855 33 Arkansas 1,131,562 178,090 1,309,652 14 California 18,485,441 2,898,469 21,383,910 14 Colorado 2,134,297 424,043 2,558,340 17 Connecticut 1,784,922 260,817 2,045,739 13 Delaware 432,092 99,197 531,289 19 District of Columbia 832,308 137,088 969,396 14 Florida 8,707,976 1,295,973 10,003,949 13 Georgia 3,956,794 729,770 4,686,564 16 Guam 66,984 0 66,984 0 Hawaii 562,078 87,551 649,629 13 Idaho 651,097 78,053 729,150 11 Illinois 5,975,780 949,607 6,925,387 14 Indiana 2,874,513 292,751 3,167,264 9 Iowa 1,244,715 250,859 1,495,574 17 Kansas 1,045,618 349,999 1,395,617 25 Kentucky 1,684,001 327,737 2,011,738 16 Louisiana 1,801,337 363,022 2,164,359 17 Maine 649,459 130,629 780,088 17 Maryland 2,984,383 526,796 3,511,179 15 Massachusetts 2,829,937 865,351 3,695,288 23 Michigan 4,118,050 923,265 5,041,315 18 Minnesota 2,119,898 651,920 2,771,818 24 Mississippi 1,090,688 125,099 1,215,787 10 Missouri 2,722,229 436,388 3,158,617 14 Montana 434,740 82,330 517,070 16 Nebraska 627,976 257,518 885,494 29 Nevada 1,158,231 355,806 1,514,037 24 New Hampshire 575,471 171,449 746,920 23 New Jersey 4,346,654 895,483 5,242,137 17 New Mexico 834,387 76,701 911,088 8 New York 7,404,103 2,866,491 10,270,594 28 North Carolina 3,973,280 846,146 4,819,426 18 North Dakota 261,387 70,727 332,114 21 Northern Mariana Isl. 19,406 0 19,406 0 Ohio 4,973,233 1,068,758 6,041,991 18 Oklahoma 1,375,337 419,998 1,795,335 23 Oregon 1,501,815 325,293 1,827,108 18 Pennsylvania 5,953,091 1,520,708 7,473,799 20 Puerto Rico 916,442 * * * Rhode Island 327,155 291,057 618,212 47 South Carolina 1,865,872 348,666 2,214,538 16 South Dakota 272,296 116,651 388,947 30 Tennessee 2,618,129 483,262 3,101,391 16 Texas 9,608,287 1,858,766 11,467,053 16 Utah 863,672 242,423 1,106,095 22 Vermont 355,423 47,415 402,838 12 Virgin Islands 67,321 0 67,321 0 Virginia 3,642,470 1,048,063 4,690,533 22 Washington 2,762,458 479,502 3,241,960 15 West Virginia 806,214 121,173 927,387 13 Wisconsin 2,375,288 688,513 3,063,801 22 Wyoming 232,779 46,164 278,943 17 Nationwide 134,458,920 28,711,461 163,170,381 18 % * Data withheld to maintain firm confidentiality. Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). CLEC Share Table 8.5 End-User Switched Access Lines Served by Reporting Local Exchange Carriers (As of June 30, 2007) 8 - 9 2005 Alabama 5 % 5 % 5 % 9 % 11 % 13 % 15 % 16 % 16 15 % 16 % 13 % 13 % Alaska * * * *******2 ** American Samoa NA NA NA NA NA NA NA NA 00000 Arizona 7 9 11 12 16 22 25 25 27 30 30 32 33 Arkansas * * * 10 * 11 12 12 13 11 12 13 14 California 7 8 9 11 13 15 16 17 18 13 13 14 14 Colorado 10 13 14 15 16 17 17 16 17 20 19 17 17 Connecticut 7 7 9 9 10 10 11 13 14 11 12 12 13 Delaware 0 0 * * 9 12 16 16 20 20 18 18 19 District of Columbia 12 13 16 14 16 17 19 19 20 17 14 14 14 Florida 7 7 9 13 13 14 16 16 16 17 15 13 13 Georgia 10 11 13 15 17 18 19 20 21 18 19 14 16 Guam NA NA NA NA NA NA NA NA NA 0000 Hawaii ********679113 Idaho ****567710101 0 Illinois 13 15 17 19 19 20 21 22 20 15 15 15 14 Indiana 55789131413141010109 Iowa 11 12 12 13 13 13 14 14 14 14 15 16 17 Kansas 8 9 12 17 21 21 22 24 25 21 24 23 25 Kentucky * * * 4 5 8 11 11 14 15 16 15 16 Louisiana 445791012141917181617 Maine ****8 4820206 Maryland 64671014161181811515 Massachusetts 12 15 16 16 18 21 23 25 25 25 24 24 23 Michigan 9 13 18 21 22 25 26 26 25 19 18 17 18 Minnesota 11 13 14 17 17 19 20 21 21 24 23 22 24 Mississippi 43267910101412131010 Missouri 6 7 8 10 10 11 13 13 14 11 13 13 14 Montana ****3444810121416 Nebraska * 12 16 18 20 21 22 25 25 26 27 28 29 Nevada 10 * * 11 9 10 11 11 13 13 17 15 24 New Hampshire 8 10 13 14 16 17 20 23 25 25 24 23 23 New Jersey 4 5 6 10 15 19 20 22 22 21 17 18 17 New Mexico ******8887888 New York 23 25 25 24 27 28 30 30 30 31 27 27 28 North Carolina 6668991131315161618 North Dakota *****8872092022 Northern Mariana Isl. NA NA NA NA NA NA NA NA NA 0000 Ohio 457911415151515151618 Oklahoma 6 8 10 11 11 14 13 16 18 18 20 21 23 Oregon 577981213161319161718 Pennsylvania 13 14 15 16 17 19 20 22 23 23 20 19 20 Puerto Rico ************* Rhode Island 10 16 18 21 25 28 32 35 40 42 43 46 47 South Carolina 4357991011313151416 South Dakota ****1418**0 33030 Tennessee 88790 14151617181516 Texas 14 16 16 17 18 18 19 19 19 16 16 17 16 Utah 11 13 13 15 19 20 23 24 23 22 24 21 22 Vermont ********1412121212 Virgin Islands 00000000***00 Virginia 9 11 12 12 14 17 20 21 21 22 21 22 22 Washington 6 8 9 10 10 11 13 14 14 14 14 14 15 West Virginia *******11212121313 Wisconsin 9 11 12 13 15 18 19 18 19 18 19 20 22 Wyoming ******** 241517 Nationwide 9 % 10 % 11 % 13 % 15 % 16 % 18 % 18 % 19 % 18 % 17 % 17 % 18 % * Data withheld to maintain firm confidentiality. NA is an abbreviation for not applicable. Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). 20022001 Dec 20062003 2004 DecJun DecJunJun Dec State Only LECs with at least 10,000 lines in a state were required to report through December 2004. Beginning with the June 2005 data all LECs are required to report. Jun 2007 Table 8.6 Competitive Local Exchange Carrier Share of End-User Switched Access Lines Jun Dec Jun JunDec 8 - 10 TRS Data TRS & USF Data FCC Form 499 Data 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Number of Local Competitors 1 RBOCs & Other Incumbent LECs 1,347 1,376 1,410 1,348 1,318 1,335 1,335 1,309 1,301 1,304 1,303 1,311 CAPs & CLECs 57 94 129 212 298 479 511 542 601 690 734 985 Local Resellers, Shared Tenant, Private Carriers, & Other Local NA 25 18 64 96 128 158 186 172 228 309 649 All Other Carriers Reporting Local Exchange Service Revenues NA 74 109 133 143 229 168 176 179 186 176 203 Total 2 1,404 1,569 1,666 1,757 1,855 2,171 2,172 2,213 2,253 2,408 2,522 3,148 Local Service Revenues 3 Incumbent LECs Bell Operating Companies 4 $65,485 $70,290 $68,028 $69,801 $76,586 $93,135 $93,388 $91,158 $85,558 $82,555 $81,032 $77,282 Other Incumbent LECs 4 24,269 24,899 24,960 26,989 26,084 15,166 17,490 17,590 18,141 18,326 18,205 17,862 Total 5 89,754 95,189 92,988 96,790 102,670 108,301 110,879 108,749 103,699 100,881 99,237 95,144 Local Service Competitors CAPs & CLECs 595 949 1,556 2,393 4,505 7,552 10,629 10,001 12,373 12,363 12,363 13,769 Local Resellers, Shared Tenant, Private Carriers, & Other Local NA NA 224 329 522 914 1,395 1,644 943 1,405 840 1,192 All Other Filers (Local Exchange Service Revenues Only) 5 56 59 381 809 1,319 2,028 2,796 3,337 4,979 5,136 6,435 7,157 Total 651 1,008 2,161 3,530 6,347 10,494 14,820 14,982 18,295 18,904 19,637 22,118 Total $90,405 $96,197 $95,149 $100,320 $109,016 $118,795 $125,698 $123,730 $121,994 $119,785 $118,874 $117,262 Share of Local Service Revenues Incumbent LECs Bell Operating Companies 72.4% 73.1% 71.5% 69.6% 70.3% 78.4% 74.3% 73.7% 70.1% 68.9% 68.2% 65.9% Other Incumbent LECs 26.8% 25.9% 26.2% 26.9% 23.9% 12.8% 13.9% 14.2% 14.9% 15.3% 15.3% 15.2% Total 99.3% 99.0% 97.7% 96.5% 94.2% 91.2% 88.2% 87.9% 85.0% 84.2% 83.5% 81.1% Local Service Competitors CAPs & CLECs 0.7% 1.0% 1.6% 2.4% 4.1% 6.4% 8.5% 8.1% 10.1% 10.3% 10.4% 11.7% Local Resellers, Shared Tenant, Private Carriers, & Other Local NA NA 0.2% 0.3% 0.5% 0.8% 1.1% 1.3% 0.8% 1.2% 0.7% 1.0% Providers All Other Filers 0.1% 0.1% 0.4% 0.8% 1.2% 1.7% 2.2% 2.7% 4.1% 4.3% 5.4% 6.1% Total 0.7% 1.0% 2.3% 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8% 16.5% 18.9% Total Telecommunications Revenues (Including Payphone, Mobile, & Toll Service) Incumbent LECs 4 $102,820 $107,905 $105,154 $108,234 $112,216 $116,158 $117,885 $114,999 $109,480 $105,496 $103,561 $99,997 Local Competitors 637 1,012 2,481 4,034 6,508 10,945 14,781 15,309 16,857 18,215 18,568 19,473 Ratio of ILEC Total Telecommunications 165 : 1 107 : 1 42 : 1 27 : 1 17 : 1 11 : 1 8 : 1 8 : 1 6 : 1 6 : 1 6 : 1 5 : 1 Revenues to Local Competitor Total Telecommunications Revenues Chart 8.5 ILEC and New Local Competitor Share of Local Service Revenue Table 8.7 Nationwide Local Service Revenues and New Competitors' Share 1 (Dollar Amounts Shown in Millions) See notes on following page. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ILEC Share 96.5% 94.2% 91.2% 88.2% 87.9% 85.0% 84.2% 83.5% 81.1% New Competitor Share 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8% 16.5% 18.9% 1998 1999 2000 2001 2002 2003 2004 2005 2006 8 - 11 Notes to Table 8.7. NA - Not available. 1 Counts for incumbent LECs, CLECs, CAPs, local resellers, shared tenant service providers, private carriers and other local service providers are based on the numbers of filers actually reporting revenues. The category All Other Filers includes payphone, mobile service, and toll providers that reported local exchange service revenues. Non-incumbent LEC affiliates of incumbent LECs are classified as local service competitors, not as incumbent LECs. 2 The total number of local service providers shown in Table 8.7 differs from the total fixed local service providers shown in Table 15.3 because the number shown in Table 8.7 represents filers that self identify as mobile or toll providers, and that repo some end-user local exchange service revenues. 3 For most categories of carriers for 1996, local service revenues include revenues from the following TRS reporting categories: local exchange, local private line, other local services, interstate access services, and intrastate access services. The amounts shown do not include pay telephone, mobile, or toll service revenues. See also footnote four. 1998 revenues for carriers that filed TRS worksheets but not universal service worksheets were estimated using 1998 TRS worksheets. These worksheets contain carrier revenue data for calendar year 1997. 4 Incumbent LEC local service revenues for 1996 and prior years include significant amounts of yellow pages, billing and collection, and other revenues that were reported as other local service revenues. If these revenues were included in 1997, incumbent LECs would show significant revenue growth from 1996 to 1997. Inside wire maintenance was included in local service revenues in 1997 but not thereafter. 5 Toll carriers typically provide resold special access and private line services as part of toll service operations. Accordingly, the table shows local exchange revenues rather than all local revenues for these carriers. Sources: Data filed on FCC Forms 431, 457, 499-Q and 499-A worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues. 8 - 12 Table 8.8 Telephone Number Porting Activity Since Wireless Porting Started 1 Landline to Landline to Mobile to Cellular/PCS Month Landline Mobile Mobile 2 to Landline Total (thousands) (thousands) (thousands) 2003 November 3 561 2 61 1 625 December 638 12 756 1 1,407 2004 January 809 24 713 1 1,547 February 711 65 591 2 1,369 March 776 79 632 1 1,488 April 718 49 613 1 1,381 May 756 73 689 1 1,519 June 789 165 873 2 1,829 July 656 143 806 3 1,608 August 4 786 95 824 * 1,705 September 701 43 787 1 1,532 October 899 97 738 1 1,735 November 736 131 736 2 1,605 December 692 86 910 1 1,689 2005 January 698 53 808 2 1,561 February 936 81 735 1 1,753 March 1,257 74 815 2 2,148 April 959 55 797 1 1,812 May 892 56 862 1 1,811 June 1,064 38 1,153 2 2,257 July 1,006 62 982 2 2,052 August 1,203 42 933 2 2,179 September 1,114 31 835 2 1,982 October 991 37 866 2 1,896 November 1,023 29 826 2 1,880 December 1,079 22 1,031 2 2,135 2006 January 1,242 37 879 4 2,162 February 1,347 22 807 3 2,178 March 1,422 19 876 2 2,319 April 1,095 19 747 2 1,863 May 1,213 46 813 2 2,073 June 1,010 30 862 2 1,904 July 960 55 866 1 1,883 August 1,111 61 953 2 2,127 September 941 36 839 2 1,818 October 1,049 33 823 2 1,908 November 907 40 812 3 1,762 December 977 41 993 2 2,013 2007 January 902 31 1,021 2 1,956 February 864 45 1,049 2 1,960 March 1,035 40 1,155 2 2,232 April 926 33 1,112 2 2,072 May 973 45 1,083 3 2,103 June 1,026 82 1,095 3 2,207 July 1,288 124 1,136 3 2,550 August 1,440 149 1,135 5 2,728 September 1,235 90 1,012 3 2,340 October 1,539 93 1,027 2 2,661 November 1,302 111 1,187 3 2,603 December 2,500 53 1,274 2 3,829 Cumulative Total 50,753 2,980 43,929 97 97,758 * Indicates a number between 1 and 499. Source: Raw data from Local Number Portability Administrator (NeuStar, Inc.). Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. 1 Monthly figures include numbers that were ported back to the original carrier, or where the subscriber with the ported number terminated service. 3 Wireless porting started November 24, 2003. These figures include all ports during the month of November, which for ports from or to a wireless carrier, include a small number of test ports that happened prior to November 24. 4 Due to a data problem, does not include numbers that were ported back to the original carrier, or where the subscriber with the ported number terminated service. 2 Excludes significant porting activity between Cingular and AT&T Wireless following the closing of their merger in October 2004. 8 - 13 Table 8.9 Telephone Numbers Remaining in the Porting Database at the End of Each Quarter 1 Landline to Landline to Mobile to Mobile to Total Year Quarter Landline Mobile Mobile 2 Landline (thousands) (thousands) (thousands) 1999 Second 1,840 * * * 1,840 Third 2,658 * * * 2,658 Fourth 3,854 * * * 3,854 2000 First 5,029 * * * 5,029 Second 5,781 * * * 5,781 Third 7,595 * * * 7,595 Fourth 9,146 * * * 9,146 2001 First 10,567 * * * 10,567 Second 12,310 * * * 12,310 Third 14,610 * * * 14,610 Fourth 15,519 * * * 15,519 2002 First 16,810 * * * 16,810 Second 18,210 * * * 18,210 Third 19,862 * * * 19,862 Fourth 21,449 * * * 21,449 2003 First 22,781 * * * 22,781 Second 23,723 * * * 23,723 Third 24,796 * * * 24,796 Fourth 25,869 16 795 2 26,682 2004 First 28,462 173 2,686 3 31,324 Second 28,371 406 4,635 4 33,417 Third 29,396 667 6,874 9 36,945 Fourth 30,607 832 9,041 11 41,491 2005 First 32,399 1,001 10,860 16 44,276 Second 34,136 1,092 12,926 19 48,173 Third 35,959 1,201 14,327 23 51,510 Fourth 37,607 1,226 16,101 29 54,963 2006 First 40,194 1,272 17,577 34 59,077 Second 42,130 1,333 19,032 42 62,538 Third 43,743 1,407 20,509 46 65,705 Fourth 45,149 1,480 21,920 50 68,600 2007 First 46,761 1,541 23,518 50 71,870 Second 48,396 1,659 25,399 54 75,508 Third 50,282 1,952 27,173 56 79,463 Fourth 53,225 1,909 29,188 63 84,384 2 Excludes significant porting activity between Cingular and AT&T Wireless following the closing of their merger. Source: Raw data from Local Number Portability Administrator (NeuStar, Inc.). Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. * Wireless portability started November 24, 2003. A small number of test ports were conducted before then. 1 Numbers ported because customer changed carriers. The database contains the date when the telephone number record was last updated. For most telephone numbers, this was the most recent port. For those telephone numbers affected by area code changes, however, the date refers to when the record was updated to reflect the new area code. See the text for a fuller discussion. 8 - 14 Table 8.10 Numbers in the Porting Database by Quarter in Which They Were Most Recently Ported 1 December 31, 2007 2 Ported During Landline to Landline to Mobile to Mobile to Year Quarter Landline Mobile Mobile Landline (thousands) (thousands) 1998 First 0 3 ** * Second 3 * * * Third 38 * * * Fourth 119 * * * 1999 First 208 * * * Second 323 * * * Third 342 * * * Fourth 429 * * * 2000 First 465 * * * Second 525 * * * Third 665 * * * Fourth 767 * * * 2001 First 722 * * * Second 876 * * * Third 935 * * * Fourth 1,089 * * * 2002 First 924 * * * Second 1,029 * * * Third 1,275 * * * Fourth 1,317 * * * 2003 First 976 * * * Second 1,114 * * * Third 1,111 * * * Fourth 1,083 8 400 1 2004 First 1,507 116 915 1 Second 1,475 107 1,066 3 Third 1,540 177 1,261 6 Fourth 1,489 111 1,317 2 2005 First 1,864 87 1,251 2 Second 1,971 75 1,400 2 Third 2,184 95 1,599 3 Fourth 2,063 64 1,712 9 2006 First 2,956 54 1,723 3 Second 2,410 68 1,805 2 Third 2,103 121 2,062 3 Fourth 2,079 99 2,128 5 2007 First 2,327 102 2,256 3 Second 2,593 135 2,388 3 Third 3,383 255 2,779 9 Fourth 4,952 234 3,124 4 1 Numbers ported because customer changed carriers. 3 Number is between 0 and 499. Source: Raw data from Local Number Portability Administrator (NeuStar, Inc.). Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. 2 The local number portability database was designed solely for the purpose of routing calls. As such, it retains only the mos recent porting activity for any given number. So if a consumer ports a number from Carrier A to Carrier B, and later the consumer then ports the number from Carrier B to Carrier C, the database will not reflect the original port from Carrier A to Carrier B. Also, numbers that revert back to the original carrier (either because the customer ports the number back to the original carrier or because the customer discontinues service with that number) are dropped from the database. Lastly, area code splits can make a number appear to be ported later than it actually was. * Wireless portability started November 24, 2003. A small number of test ports were conducted before then. NeuStar supplies information indicating which carriers are wireless and which are wireline. Occasionally, a carrier that had been identified as a wireline carrier is later identified as a wireless carrier, and vice-versa. 8 - 15 9 - 1 9 Long Distance Telephone Industry Until the 1970s, AT&T had a virtual monopoly on long distance service in the United States. In the 1970s, competitors such as MCI and Sprint began also to offer long distance service. With the gradual emergence of competition, basic rates dropped, calling surged, and AT&T’s dominance declined. More than 1,600 toll companies now offer wireline long distance service. These carriers remain subject to the Commission’s jurisdiction. The Commission, however, has chosen to rely on competition, rather than regulation, as much as possible. Thus, the Commission forbears from regulating most aspects of long distance service. 1. Toll Revenues In 2006, carriers providing toll service generated $64.4 billion in toll revenues. These include toll revenues from long distance carriers, wireless toll from wireless carriers, and toll revenues from local exchange carriers. These revenues are shown in Table 9.1. Table 9.1 also shows the share of toll revenues by the five largest and the next twenty largest providers. The trend is for smaller firms to have a greater share of industry toll revenues. Toll calls can be divided into three jurisdictional categories - intrastate calls, domestic interstate calls, and international calls. The revenues, from 1980 through 2006, for each of the three jurisdictional categories are shown in Table 9.2. Toll revenues also can be divided between residential and nonresidential services, as in Table 9.3. In 2006, residential customers generated a quarter of all end-user toll revenues. 2. Number of Companies The number and types of carriers reporting long distance revenues are shown in Table 9.4. The Telecommunications Reporting Worksheet (FCC Form 499-A) requires each filer to select up to five of 20 categories as best describing its primary line of business. Six of these categories consist of carriers that are primarily engaged in providing long distance service and are collectively described as being toll carriers: interexchange carriers (IXCs), operator service providers (OSPs), other toll service providers, prepaid calling card providers, satellite service providers, and toll resellers. In 2006, 1,666 filers selected at least one of the above toll service provider categories as their primary line of business and are therefore categorized as being a toll carrier. (They were also asked to rank their choices with one being the most important.) Prior to 1986, carrier identification codes (CICs) provided information on the number of firms seeking to acquire certain types of interconnecting arrangements with local telephone companies. Beginning in 1986, a number of corporations, government 9 - 2 agencies and other organizations began to acquire carrier identification codes for their own use, rather than for the purpose of providing telecommunications services to others. After that time, the use of such codes to estimate the number of long distance carriers became less reliable. The number of codes assigned over time can be found in the long distance section of the May 2004 Trends report which can be accessed at www.fcc.gov/wcb/stats.html. CICs are currently assigned by the North American Numbering Plan Administration (NANPA), which is part of Neustar, Inc. Further information on such codes can be found on the Internet at www.nanpa.com. 3. Long Distance Market Shares A generation ago, before the breakup of the Bell System, AT&T’s local telephone companies provided local service to most of the United States. At the beginning of 1984, however, AT&T’s local operating companies were divested in the settlement of an antitrust case. After the AT&T divestiture, AT&T’s former operating companies were restricted to providing service within their own local access and transport areas (LATAs), i.e., they were precluded from offering toll service that crossed LATA boundaries. As a result, two separate and distinct toll markets emerged. In the first, AT&T competed with small but rapidly growing competitors for calls that crossed LATA boundaries. This market included almost all interstate and international calls and a large number of intrastate toll calls as well. A second and much smaller market consisted of short distance toll calls that did not cross LATA boundaries. This second market was dominated, at least initially, by the local exchange carriers operating within their own service territories. Over time, the distinctions between the two markets have become blurred as customers acquired the ability to select among competing carriers for their intraLATA calls as well as their interLATA calls. As discussed in greater detail in the following section, the 1996 Telecommunications Act established a procedure for Bell companies to offer in-region, interLATA long distance service after complying with certain preconditions to open their own markets. Bill Harvestingฎ data collected by TNS Telecoms (TNS) are used to calculate residential market shares. Further information on TNS and its Bill Harvestingฎ data can be found in Section 14 and in Appendix B. Table 9.5, which is based on this information, presents nationwide market shares of households, and directly dialed intraLATA and interLATA minutes from 1995 to 2007. Chart 9.2 shows the residential household market shares for the largest carriers for 2007. Table 9.6 presents market shares by region for 2007. Chart 9.3 shows residential market shares for the largest carriers for the northeast and southwest regions for 2007. 9 - 3 4. Section 271 Applications Section 271 of the Communications Act required the regional Bell operating companies (RBOCs) to apply to the Commission, on a state-by-state basis, for authorization to provide in-region interLATA services. To obtain such authorization pursuant to section 271, the RBOC had to demonstrate that it satisfied the 14-point competitive checklist, that it complied with the separate affiliate and nondiscrimination requirements of section 272, and that the requested authorization was consistent with the public interest, convenience, and necessity. After a section 271 application was filed with the Commission, the Commission had 90 days to determine whether the RBOC had taken the statutorily required steps to open its local telecommunications markets to competition. A RBOC applicant had to demonstrate either that: A) one or more unaffiliated competing providers of local telephone service to residential and business subscribers was connected to the RBOC’s network, and that such local telephone service was being “offered by such competing providers either exclusively over their own telephone exchange service facilities or predominately over their own telephone exchange service facilities in combination with the resale of the telecommunications services of another carrier” (commonly referred to as “Track A”); or B) if no potential competing provider had requested to connect to a RBOC’s network, the RBOC had a statement of generally available terms and conditions in place demonstrating that it is ready to allow potential competitors to connect to its facilities (commonly referred to as “Track B”). On December 22, 1999, the first regional Bell operating company’s application (Bell Atlantic, now known as Verizon) was approved by the Commission to provide in- region interLATA service in the state of New York. On December 3, 2003, the final Bell operating company’s application (Qwest) was approved to provide in-region interLATA service in the state of Arizona. Table 9.7 shows the states in which the BOCs filed section 271 applications, the Bell operating company’s name, and the application’s resolution date. The companies approved must continue to comply with the section 271 requirements. The Commission has a number of enforcement tools at its disposal, including imposing penalties or suspension of approval. Table 9.1 -- Toll Service Revenues 1/ by Provider 2/ (Revenue Amounts Shown in Millions) Preliminary 2000 2001 2002 2003 2004 2005 2006 2007 Revenue $81,546 $73,486 $59,864 $52,172 $46,511 $46,599 $43,892 $37,587 Percentage of total 74.4% 74.0% 71.5% 67.6% 65.3% 67.3% 68.2% 62.8% Revenue $17,024 $15,122 $13,808 $13,837 $13,534 $10,683 $8,636 $9,479 Percentage of total 15.5% 15.2% 16.5% 17.9% 19.0% 15.4% 13.4% 15.8% Revenue $11,045 $10,722 $10,026 $11,179 $11,168 $11,968 $11,850 $12,791 Percentage of total 10.1% 10.8% 12.0% 14.5% 15.7% 17.3% 18.4% 21.4% Total Service Revenue $109,615 $99,053 $83,697 $77,188 $71,214 $69,250 $64,379 $59,857 Companies reporting toll 1,401 1,715 1,668 1,835 2,173 2,117 2,091 1,938 service revenue 2000 Five companies reporting the most toll service revenue: Next twenty: 2001 Five companies reporting the most toll service revenue: Next twenty: 2002 Five companies reporting the most toll service revenue: Next twenty: Totals for the five companies that report the most toll revenue Totals for the next twenty companies that report the most toll revenue Totals for all other companies Totals for all companies AT&T Communications; SBC Communications, Inc.; Sprint Corp.; Verizon Communications, Inc.; WorldCom, Inc. AT&T Communications; SBC Communications, Inc.; Sprint Corp.; Verizon Communications, Inc.; WorldCom, Inc. AT&T Communications; Qwest Services Corp.; SBC Communications, Inc.; Sprint Corp.; WorldCom, Inc. ALLTEL Corp.; Atlas Telecommunications S.A.; BCE, Inc. (Bell Canada Enterprises); BellSouth Corporation; Broadwing, Inc.; Cable & Wireless Holdings, Inc.; Global Crossing, Ltd.; IDS Telcom, LLC; IDT Corp.; Intermedia Communications, Inc.; McLeod USA Inc.; Pacific Gateway Exchange, Inc.; Primus Telecommunications Group, Inc.; Star Telecommunications; Talk.com Inc.; VarTec Telecom, Inc.; Verizon; Viatel, Inc.; Williams Communications Group, Inc.; World Access, Inc. ALLTEL Corp.; BellSouth Corp.; Broadwing, Inc.; Cable & Wireless USA, Inc.; Citizens Communication; Empresa Nacional de Telecomunicaciones SSA; Global Crossing; IDT Corp.; ITC^DeltaCom, Inc.; McLeodUSA, Inc.; Network Plus Corp.; Nextel Communications, Inc.; Pacific Gateway Exchange, Inc.; Primus Telecommunications Group, Inc.; Qwest Services Corp.; Star Telecommunications, Inc.; Touch America Holdings, Inc.; VarTec Telecom; WilTel Communications Group, Inc.; World Access, Inc. ALLTEL Corp.; BellSouth Corp.; Broadwing, Inc.; Cable & Wireless USA, Inc.; CenturyTel, Inc.; Cincinnati Bell, Inc.; Citizens Communications; Comcast Corp.; Empresa Nacional de Telecomunicaciones SSA; Evercom, Inc.; Global Crossing North American Holdings, Inc.; IDT Corp.; ITC^DeltaCom, Inc.; McLeod USA Inc.; Qwest Services Corp.; Telco Group, Inc.; Touch America Holdings, Inc.; VarTec Telecom, Inc.; WilTel Communications Group, Inc.; XO Communications, Inc. 9 - 5 2003 Five companies reporting the most toll service revenue: Next twenty: 2004 Five companies reporting the most toll service revenue: Next twenty: 2005 Five companies reporting the most toll service revenue: Next twenty: 2006 Five companies reporting the most toll service revenue: Next twenty: 2007 Five companies reporting the most toll service revenue: Preliminary Next twenty: 1/ 2/ ALLTEL Corporation; Broadwing Corporation; CenturyTel, Inc.; Comcast Corporation; Dollar Phone Corp.; Embarq Corporation; Epana Networks; Global Crossing North America, Inc.; Gtel Holdings, Inc.; iBasis, Inc.; IDT Telecom, Inc.; Locus Telecommunications, Inc.; New Cingular Wireless Services, Inc.; Reliance Infocomm Ltd.; STi Prepaid, LLC; T-Mobile USA, Inc.; T-NETIX, INC.; Touch-Tel USA, LLC; Videsh Sanchar Nigam Limited; Windstream Corp. Filings of affiliated companies have been consolidated to create this table. The annual Telecommunications Provider Locator reports are one source of information showing which filers are treated as affiliates. For the purpose of this table, revenues for Cingular were divided between Bell South and SBC in proportion to their ownership interest. Revenues for CellCo Partnership were consolidated with Verizon. AT&T, Inc; Level 3 Financing, Inc.; Qwest Services Corp.; Sprint Nextel Corporation; Verizon Communications, Inc. Table 9.1 -- Toll Service Revenues 1/ by Provider 2/ -- Continued ALLTEL Corp.; BellSouth Corp.; Broadwing Communications, LLC; CenturyTel, Inc.; Citizens Communications; Excel, Inc.; General Communication, Inc.; Global Crossing North America, Inc.; IDT Corp.; Level 3 Financing, Inc.; Locus Telecommunications, Inc.; McLeodUSA, Inc; Primus Telecommunications Group, Inc; Qwest Services Corp.; Securus Technologies; Telco Group, Inc.; Teleglobe International Holdings Ltd; T-Mobile USA, Inc.; VarTec Telecom, Inc.; WilTel Communications Group, Inc. ALLTEL Corp.; Broadwing Corporation; CenturyTel, Inc.; Comcast Corporation; Embarq Corporation; Epana Networks; Global Crossing North America, Inc.; Gtel Holdings, Inc.; iBasis, Inc.; Level 3 Financing, Inc.; Locus Telecommunications, Inc.; Reliance Infocomm Ltd.; Telecom Corporation of New Zealand LTD; T-Mobile USA, Inc.; T-NETIX, INC.; Touch-Tel USA, LLC; VarTec Telecom, Inc.; Videsh Sanchar Nigam Limited; WilTel Communications Group, Inc.; XO Communications, Inc. ALLTEL Corp.; Broadwing Corporation; BT United States LLC; CenturyTel, Inc.; Epana Networks; Global Crossing North America, Inc.; IDT Corp.; ITC DeltaCom, Inc.; Level 3 Financing, Inc.; Locus Telecommunications, Inc.; Pacific Gateway Exchange, Inc.; Reliance Infocomm Ltd.; Telco Group, Inc.; Time Warner Inc.; T-Mobile USA, Inc.; Touch-Tel USA, LLC; Videsh Sanchar Nigam Limited; WilTel Communications Group, Inc.; World Access, Inc.; XO Communications, Inc. AT&T, Inc.; IDT Telecom, Inc.; Qwest Services Corp.; Sprint Nextel Corp.; Verizon Communications, Inc. AT&T, Inc; BellSouth Corporation; Qwest Services Corp.; Sprint Nextel Corp.; Verizon Communications, Inc. Toll revenues consist of carrier's carrier revenues reported on the FCC Form 499-A Lines 310 through 314; end user revenues reported on Lines 411 through 417, and a portion of USF pass-through revenue reported on Line 403. Source: Data filed on FCC Form 499A and press reports. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Provider Locator. AT&T Communications; MCI, Inc.; SBC Communications, Inc.; Sprint Corp.; Verizon Communications, Inc. ALLTEL Corp.; BellSouth Corp.; Broadwing Corp.; CenturyTel, Inc.; Cincinnati Bell, Inc.; Citizens Communications; Evercom, Inc.; Global Crossing North America, Inc.; IDT Corporation; ITC^DeltaCom, Inc.; McLeod USA Inc.; Primus Telecommunications Group, Inc.; Qwest Services Corp.; Telco Group, Inc.; Teleglobe Netherlands Holdings B.V.; Telenor Global Services AS; T-Mobile USA, Inc.; VarTec Telecom, Inc.; WilTel Communications Group, Inc.; XO Communications, Inc. AT&T Communications; MCI, Inc.; SBC Communications, Inc.; Sprint Corp.; Verizon Communications, Inc. 9 - 6 Intrastate, Interstate, and International Toll Revenues (Dollar Amounts Shown in Millions) Toll Revenues End-User Revenues Total Toll Year Intrastate Interstate International Revenues Intrastate Interstate International Revenues 1980 $12,700 $19,049 $1,586 $33,335 $1,475 1981 14,632 21,948 2,599 39,180 2,485 1982 16,457 24,685 2,777 43,919 2,651 1983 17,612 26,418 2,940 46,970 2,802 1984 19,077 28,616 3,463 51,156 3,309 1985 20,408 30,613 3,794 54,815 3,636 1986 21,340 32,010 4,119 57,468 3,947 1987 21,563 32,345 4,611 58,519 4,436 1988 22,900 34,350 5,350 62,600 5,146 1989 23,850 35,775 6,399 66,024 6,340 1990 25,622 33,678 7,492 66,792 7,390 1991 24,090 35,837 8,631 68,558 8,480 1992 27,667 37,871 10,207 75,744 9,810 1993 30,950 40,212 11,364 82,525 10,901 1994 29,815 42,028 12,635 84,478 12,100 1995 31,519 43,955 14,155 89,629 13,144 1996 34,181 48,903 16,607 99,691 15,023 1997 32,859 49,247 18,688 100,793 $30,144 $43,640 15,409 $89,193 1998 34,699 50,000 20,356 105,055 30,800 44,153 16,654 91,607 1999 33,600 54,590 20,056 108,246 29,976 47,598 15,737 93,311 2000 33,030 56,225 20,361 109,615 28,501 42,980 16,286 87,767 2001 29,530 46,389 23,381 99,301 25,891 36,660 16,751 79,302 2002 25,772 39,725 18,200 83,697 22,122 31,707 13,392 67,222 2003 23,160 38,501 15,527 77,188 18,889 28,088 12,006 58,983 2004 21,748 34,664 14,802 71,214 17,762 27,487 10,262 55,511 2005 19,397 33,839 16,014 69,250 15,489 26,811 10,238 52,538 2006 18,791 31,420 14,168 64,379 15,415 25,164 8,699 49,278 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues, International Bureau, Trends in the U.S. International Telecommunications Industry and International Traffic Data, 47 CFR ง 43.21(c) data through 1991. Through 1996, some breakouts based on staff estimates. Table 9.2 Toll Revenues by Market Segment (Dollar Amounts Shown in Billions) Chart 9.1 Total Toll $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Interstate Intrastate International 9 - 7 Table 9.3 End-User Toll Revenues (Dollar Amounts Shown in Millions) Residential End-User End-User Toll Revenues Toll as a Toll By Customer Type Percentage Revenues 2/ of all End- Year User Toll Residential Other Revenues 1/ 1995 46 % $75,638 $35,103 $40,535 1996 45 82,616 37,543 45,074 1997 46 89,193 40,978 48,215 1998 44 91,607 40,284 51,323 1999 42 93,311 39,466 53,845 2000 38 87,767 33,327 54,440 2001 33 79,302 26,075 53,227 2002 34 67,222 23,018 44,204 2003 35 58,983 20,905 38,078 2004 33 55,511 18,225 37,286 2005 29 52,538 15,206 37,332 2006 25 49,278 12,456 36,822 Note: Data for 2004 and 2005 were revised. 1/ Staff estimates are based on market segment data in carrier annual reports to shareholders; average household payments to long distance carriers shown in Table 3.2; and residential toll revenues published by the U.S. Census Bureau in the Service Annual Survey: 2006 , Table 3.3.7, and previous reports. 2/ Toll services are telecommunications services that enable customers to communicate outside of local exchange calling areas. Toll service revenues include revenues from ordinary long distance, subscriber toll-free, operator service, prepaid calling card, long distance private line, satellite services, and other long distance services. End-user toll revenues consist of toll service revenues from end-user customers, governments, non-profits, de minimis resellers, and any other customer that does not contribute directly to universal service. Source: End-user toll revenues for 1997 through 2006 are taken from Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues current and previous editions. Figures for 1995 and 1996 are staff estimates. 9 - 8 Table 9.4 Number of Toll Service Providers TRS Data TRS & FCC Form 499-A Data USF Data 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Carriers That Provide Toll Service 1/ Toll Carriers Interexchange Carriers (IXCs) 130 149 151 171 178 212 233 229 232 257 262 361 Other Toll Carriers Operator Service Providers (OSPs) 25 27 32 24 15 20 19 18 17 19 23 29 Pre-paid Calling Card Providers 8 16 18 20 18 23 27 27 50 67 69 154 Satellite Service Providers NA 22 13 13 17 25 34 33 40 40 40 43 Toll Resellers 260 345 340 388 406 493 558 574 642 751 721 923 Other Toll Service Providers 30 28 15 31 17 35 69 51 45 70 63 127 Total Toll Service Providers 453 587 569 647 651 808 940 932 1,026 1,204 1,178 1,666 Fixed Local Service, Payphone, and Mobile Service Filers with Toll Service Revenues NA NA 1,537 1,740 1,870 1,678 1,884 1,602 1,678 1,680 1,706 1,937 All Toll Service Providers 2/ NA NA 2,106 2,387 2,521 2,486 2,824 2,534 2,704 2,884 2,884 3,603 NA - Not available. 1/ Counts of toll carriers represent the numbers of filers that reported telecommunications revenues and that identified themselves using a toll carrier category. Filers that identified themselves as Fixed Local Service, Payphone, and Mobile Service providers were counted as toll providers only if they reported toll service revenues. 2/ Toll carrier counts in Table 9.4 differ from toll carrier counts in Table 9.1 for two reasons. Counts in this table include firms that identify temselves as toll carriers even if they reported only non-toll telecom revenues. In addition, counts in this table were made by filing entity whereas Table 9.1 consolidates affiliated filers. Toll carrier counts also differ from toll carrier counts in Table 5.3. Table 5.3 includes companies that made an FCC Form 499.A filing for registration purposes but that had not yet reported toll revenues. Sources: Competition Bureau, Telecommunications Industry Revenues and Telecommunications Provider Locator. Data filed on FCC Forms 431, 457, and 499-A worksheets. See also: Industry Analysis and Technology Division, Wireline 9 - 9 AT&T 1 MCI 2 Sprint 3 BellSouth 4 Qwest 5 SBC 6 Verizon 7 Other 8 1995 74.6 % 13.0 % 4.2 % (8) % (8) % (8) % (8) % 8.2 % 1996 69.9 14.1 5.0 (8) (8) (8) (8) 11.0 1997 67.2 13.2 5.7 (8) (8) (8) (8) 13.8 1998 62.6 15.1 5.7 (8) (8) (8) (8) 16.6 1999 62.5 16.0 6.2 (8) (8) (8) (8) 15.4 2000 51.1 18.0 6.6 0.1 1.6 1.0 4.6 17.0 2001 42.3 18.5 6.8 0.1 2.9 2.6 6.7 20.0 2002 36.7 15.8 7.6 0.2 2.5 3.8 9.3 24.1 2003 31.7 13.0 7.1 2.2 3.2 7.5 10.8 24.4 2004 23.5 9.9 6.9 4.4 5.7 13.2 12.9 23.5 2005 18.1 7.7 6.2 5.9 5.9 15.9 16.2 24.1 2006 29.3 -- 3.8 6.6 6.1 -- 25.2 29.0 2007 28.5 -- 2.1 -- 5.3 -- 27.3 36.8 1995 8.9 % 2.4 % 4.6 % (8) % (8) % (8) % (8) % 84.1 % 1996 9.5 5.4 4.4 (8) (8) (8) (8) 80.6 1997 13.9 6.7 3.7 (8) (8) (8) (8) 75.7 1998 15.6 8.7 3.8 (8) (8) (8) (8) 71.8 1999 16.9 12.0 3.6 (8) (8) (8) (8) 67.5 2000 17.3 12.8 5.0 1.6 5.0 18.6 18.0 21.7 2001 15.4 13.2 4.8 1.4 4.3 17.9 17.6 25.3 2002 14.0 11.8 4.8 1.1 2.9 18.5 16.3 30.7 2003 10.7 11.4 8.1 0.9 2.7 17.7 13.2 35.4 2004 7.5 9.4 5.0 1.0 4.6 30.5 12.2 29.9 2005 5.5 9.2 5.3 1.3 5.3 34.3 12.2 26.7 2006 38.1 -- 1.8 1.2 6.9 -- 17.8 34.2 2007 33.9 -- 0.8 -- 5.7 -- 20.0 39.7 1995 69.5 % 16.1 % 5.8 % (8) % (8) % (8) % (8) % 8.6 % 1996 62.5 15.9 7.1 (8) (8) (8) (8) 14.5 1997 62.4 14.9 6.5 (8) (8) (8) (8) 16.2 1998 58.4 17.0 6.5 (8) (8) (8) (8) 18.1 1999 53.2 20.9 6.6 (8) (8) (8) (8) 19.3 2000 44.7 22.0 7.3 0.1 1.6 0.5 2.5 21.3 2001 36.3 20.5 7.6 0.1 1.9 1.8 3.6 28.1 2002 31.2 18.1 9.0 0.3 1.6 3.1 5.6 31.0 2003 26.0 16.6 7.9 1.4 1.8 6.6 6.6 32.9 2004 17.0 12.5 8.1 1.9 6.4 20.3 6.7 27.0 2005 10.8 11.3 8.6 2.6 8.5 23.7 8.2 26.3 2006 35.6 -- 3.3 2.4 10.3 -- 16.4 32.0 2007 32.7 -- 1.5 -- 10.8 -- 12.7 42.4 Residential Household Market Shares Table 9.5 Residential Household Market Shares (1995 - 2007) Chart 9.2 Households 9 Direct Dial IntraLATA Minutes Direct Dial InterLATA Minutes 2007 AT&T 28.5%Other 36.8% Sprint 2.1% Qwest 5.3% Verizon 27.3% 9 - 10 Notes for Table 9.5 3 Excluding Embarq starting in 2006. 5 Qwest and U S WEST Long Distance. 8 Until 2000, the regional Bell operating companies are not broken out of the "Other" category. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor ™, Bill Harvesting ฎ. 9 Each household is assumed to have a single access line (less than 8% of households in the 2003 sample had more than one access line). These lines are allocated across carriers based on the household's primary long distance carrier which is imputed by the provider of the data, TNS Telecoms. In 1995, 1996 and 1999-2003, TNS defined the household's primary long distance carrier. In 1997, a household's primary long distance carrier was determined based on calls made through long distance carriers, and in 1998, a household's primary long distance carrier was determined based on interLATA calls. Note: Market shares are estimates based on sample data. Shares for past years have been revised to take into account mergers and acquisitions and changes in methodology. Columns may not sum to 100% due to rounding. 6 Ameritech Communications, Ameritech 800, Pacific Bell, Southwest Long Distance, SBC Long Distance and SNET All Distance. Starting in 2006, SBC's figures were included in the totals for AT&T. Starting in 2007, BellSouth's figures were included in the totals for AT&T. 1 AT&T Long Distance, Lucky Dog Phone Co. and ACC Long Distance. Starting in 2006, AT&T includes the former SBC. 4 BellSouth Long Distance and BellSouth Public Communications. Starting in 2007, BellSouth's figures were included in the totals for AT&T. 2 MCI Long Distance, Telecom USA, Touch 1, TTI National, LDDS WorldCom and WorldCom Network Service. Starting in 2006, MCI's figures were included in the totals for Verizon. 7 Bell Atlantic Long Distance, NYNEX/Bell Atlantic North, Verizon Select Services and GTE. Starting in 2006, MCI's figures were included in the totals for Verizon. 9 - 11 Region 1 AT&T 2 MCI 3 Sprint 4 Sample Size Southeast 42.4 % -- % 2.4 % -- % 1.2 % -- % 13.7 % 40.3 % 4,731 West 7.2 -- 2.3 -- 32.8 -- 12.8 45.0 3,242 West Coast 46.4 -- 3.3 -- 1.6 -- 23.6 25.2 2,561 Mid-Atlantic 11.1 -- 1.3 -- 0.7 -- 54.2 32.6 4,139 Mid-West 37.8 -- 2.4 -- 2.2 -- 19.3 38.4 3,990 Northeast 13.0 -- 1.2 -- 0.3 -- 45.9 39.6 3,891 Southwest 48.5 -- 2.7 -- 1.5 -- 15.6 31.7 2,634 Total 28.5 % -- % 2.1 % -- % 5.3 % -- % 27.3 % 36.8 % 25,188 Southeast 16.1 % -- % 0.4 % -- % 0.2 % -- % 18.6 % 64.6 % 43,041 West 2.2 -- 1.1 -- 46.9 -- 10.2 39.7 48,259 West Coast 61.6 -- 1.4 -- 0.2 -- 19.7 17.2 72,498 Mid-Atlantic 6.0 -- 0.7 -- 0.8 -- 35.3 57.2 57,506 Mid-West 47.7 -- 0.7 -- 0.7 -- 16.2 34.7 96,716 Northeast 19.0 -- 1.1 -- 0.4 -- 17.5 62.0 46,535 Southwest 50.1 -- 0.1 -- 1.2 -- 22.2 26.3 75,608 Total 33.9 % -- % 0.8 % -- % 5.7 % -- % 20.0 % 39.7 % 440,163 Southeast 20.4 % -- % 2.1 % -- % 0.6 % -- % 13.0 % 63.9 % 148,819 West 2.1 -- 1.3 -- 53.8 -- 8.2 34.6 156,636 West Coast 55.1 -- 2.6 -- 0.8 -- 9.5 32.0 112,687 Mid-Atlantic 13.1 -- 2.0 -- 2.5 -- 24.7 57.8 91,961 Mid-West 48.6 -- 0.8 -- 0.8 -- 9.8 39.9 140,785 Northeast 33.1 -- 1.1 -- 0.1 -- 23.7 41.9 82,718 Southwest 66.1 -- 0.5 -- 1.0 -- 7.1 25.4 109,009 Total 32.7 % -- % 1.5 % -- % 10.8 % -- % 12.7 % 42.4 % 842,615 Direct Dial IntraLATA Minutes Direct Dial InterLATA Minutes Households Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvesting ฎ. Chart 9.3 Residential Household Market Shares by Region: 2007 Note: Market shares are estimates based on sample data. Columns may not sum to 100% due to rounding. For footnotes, please see the next page. Table 9.6 Residential Household Market Shares By Region: 2007 BellSouth 5 Qwest 6 SBC 7 Verizon 8 Other 9 Northeast Other 39.6% Qwest 0.3% Verizon 45.9% AT&T 13.0% Sprint 1.2% Southwest Other 31.7% Verizon 15.6% Qwest 1.5% Sprint 2.7% AT&T 48.5% 9 - 12 Notes for Table 9.6 3 MCI Long Distance, Telecom USA, Touch 1, TTI National, LDDS WorldCom and WorldCom Network Service 4 Not including Embarq. 5 BellSouth Long Distance and BellSouth Public Communications. 6 Qwest and U S WEST Long Distance. 8 Bell Atlantic Long Distance, NYNEX/Bell Atlantic North, Verizon Select Services and GTE. Starting in 2006, MCI's figures were included in the totals for Verizon. 1 Southeast: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. West: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. Mid-Atlantic: Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia 9 Households with any other presubscribed carrier. Note that households for which the presubscribed carrier is unknown or could not be determined have been excluded from the sample. 7 Ameritech Communications, Ameritech 800, Pacific Bell, Southwest Long Distance, SBC Long Distance and SNET All Distance. Starting in 2006, SBC's figures were included in the totals for AT&T. West Coast: California and Nevada. Mid-West: Illinois, Indiana, Michigan, Ohio and Wisconsin. Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. Southwest: Arkansas, Kansas, Missouri, Oklahoma and Texas. 2 AT&T Long Distance, Lucky Dog Phone Co. and ACC Long Distance. Starting in 2006, AT&T includes the former SBC. 9 - 13 Table 9.7 Regional Bell Operating Companies' Applications To Provide In-Region InterLATA Service (Section 271 Applications) State Bell Operating Company Date Application Resolved Alabama BellSouth 09/18/02 Arkansas SBC 11/16/01 Arizona Qwest 12/03/03 California SBC 12/19/02 Colorado Qwest 12/23/02 Connecticut Verizon 07/20/01 Delaware Verizon 09/25/02 District of Columbia Verizon 03/19/03 Florida BellSouth 12/19/02 Georgia BellSouth 05/15/02 Idaho Qwest 12/23/02 Illinois SBC 10/15/03 Indiana SBC 10/15/03 Iowa Qwest 12/23/02 Kansas SBC 01/22/01 Kentucky BellSouth 09/18/02 Louisiana BellSouth 05/15/02 Maine Verizon 06/19/02 Maryland Verizon 03/19/03 Massachusetts Verizon 04/16/01 Michigan SBC 09/17/03 Minnesota Qwest 06/26/03 Mississippi BellSouth 09/18/02 Missouri SBC 11/16/01 Montana Qwest 12/23/02 Nebraska Qwest 12/23/02 Nevada SBC 04/14/03 New Hampshire Verizon 09/25/02 New Jersey Verizon 06/24/02 New Mexico Qwest 04/15/03 New York Verizon 12/22/99 North Carolina BellSouth 09/18/02 North Dakota Qwest 12/23/02 Ohio SBC 10/15/03 Oklahoma SBC 01/22/01 Oregon Qwest 04/15/03 Pennsylvania Verizon 09/19/01 Rhode Island Verizon 02/22/02 South Carolina BellSouth 09/18/02 South Dakota Qwest 04/15/03 Tennessee BellSouth 12/19/02 Texas SBC 06/30/00 Utah Qwest 12/23/02 Vermont Verizon 04/17/02 Virginia Verizon 10/30/02 Washington Qwest 12/23/02 West Virginia Verizon 03/19/03 Wisconsin SBC 10/15/03 Wyoming Qwest 12/23/02 9 - 14 10 - 1 10 Minutes As in the case of telephone lines, there are several alternative measures of calling volumes. Most subscribers purchase service with unlimited local calling. As a result, most local calls are not metered. Periodic studies have been used within the telephone industry to estimate the number of calls and calling minutes for a variety of purposes. For example, periodic studies of dial equipment minutes (DEMs) historically were used to estimate the proportion of calling that is interstate and to allocate costs between interstate and intrastate services. However, DEMs are no longer being used for separations purposes because the separations factors are now frozen. Historical data for DEMs can be found in the August 2003 issue of Trends in Telephone Service. 1. Interstate Switched Access Minutes Switched access minutes are those minutes transmitted by long distance carriers that also use the distribution networks of local telephone companies, i.e., calls made on private telecommunications networks and on leased lines are excluded. On ordinary long distance calls, minutes are counted both where the call originates and where the call terminates. Access minutes include only the domestic portion of international calls. WATS and toll-free (800/888/877/866) calls are counted only on one end of the call. WATS calls generate access minutes only at the terminating end of the call and toll-free (800/888/877/866) calls generate access minutes only at the originating end of the call; both types of minutes are counted in the terminating minutes because they are billed at the terminating rate. Originating WATS and terminating toll-free minutes are covered under special access arrangements, and hence are not subject to switched access charges. Finally, switched access minutes include time for incomplete calls and setup time. Table 10.1 and Chart 10.1 show the total number of interstate switched access minutes handled by all long distance carriers starting with mid-1984, when the data first became available. The number of minutes grew steadily from mid-1984 to 2000 stemming from a combination of overall economic growth and price reductions. Since 2001, interstate switched access minutes have declined, due to a number of reasons including substitution of other services. 2. Billed Access Minutes and Calls Another measure of usage is the number of interLATA billed access minutes and the number of local calls and toll calls. The large incumbent LECs file data on this as part of their Automated Reporting Management Information System (ARMIS) reports. The individual carrier's data can be obtained from the ARMIS Report 43-08 on the ARMIS web page at www.fcc.gov/wcb/armis. The number of interLATA access minutes is based on bills sent to interexchange carriers. They include total originating and terminating access minutes of use. Where these data are unavailable, a statistically valid calculation is sometimes used. The number of local calls refers 10 - 2 to the number of originating calls completed or unanswered between points both of which are within the local service area of the calling telephone, or total originating calls minus total originating toll calls. The number of toll calls completed refers to the number of completed calls directed to a point outside the local service area of the calling telephone. IntraLATA toll calls completed (originating) consist of the number of completed toll calls carried by the reporting local operating company within a given local access and transport area (LATA) and interLATA toll calls completed (originating) consist of completed calls directed to and carried by interexchange carriers. IntraLata toll calls carried by interexchange carriers are not included. More detailed definitions can be found on the ARMIS web site. Intralata toll calls carried by Interexchange carriers are not included. Table 10.2 shows historical data on the number of local and toll calls and the number of interLATA billed access minutes for the large ILECs reporting to the Commission. Toll calls are further categorized by intraLATA, interLATA interstate and interLATA intrastate. Interstate and intrastate billed access minutes are also shown. (In Billions) Access Access Access Year Period Minutes Year Period Minutes Year Period Minutes 1992 First Quarter 85.6 2000 First Quarter 142.8 Second Quarter 86.5 Second Quarter 142.9 1984 Third Quarter 37.5 Third Quarter 87.9 Third Quarter 141.3 Fourth Quarter 39.6 Fourth Quarter 89.8 Fourth Quarter 139.9 Total 1992 349.7 Total 2000 566.9 1985 First Quarter 39.6 1993 First Quarter 90.6 2001 First Quarter 138.1 Second Quarter 41.5 Second Quarter 91.2 Second Quarter 137.1 Third Quarter 42.8 Third Quarter 93.6 Third Quarter 133.3 Fourth Quarter 43.3 Fourth Quarter 95.9 Fourth Quarter 131.3 Total 1985 167.1 Total 1993 371.2 Total 2001 539.8 1986 First Quarter 43.0 1994 First Quarter 98.7 2002 First Quarter 124.7 Second Quarter 44.8 Second Quarter 97.9 Second Quarter 124.3 Third Quarter 46.7 Third Quarter 101.9 Third Quarter 119.6 Fourth Quarter 48.5 Fourth Quarter 102.9 Fourth Quarter 118.0 Total 1986 183.1 Total 1994 401.4 Total 2002 486.6 1987 First Quarter 51.2 1995 First Quarter 105.6 2003 First Quarter 114.2 Second Quarter 52.5 Second Quarter 106.8 Second Quarter 112.1 Third Quarter 55.0 Third Quarter 109.0 Third Quarter 109.9 Fourth Quarter 57.0 Fourth Quarter 110.6 Fourth Quarter 107.7 Total 1987 215.7 Total 1995 431.9 Total 2003 443.9 1988 First Quarter 59.0 1996 First Quarter 115.7 2004 First Quarter 109.2 Second Quarter 59.6 Second Quarter 114.7 Second Quarter 106.0 Third Quarter 62.1 Third Quarter 117.5 Third Quarter 105.1 Fourth Quarter 64.0 Fourth Quarter 120.2 Fourth Quarter 102.0 Total 1988 244.6 Total 1996 468.1 Total 2004 422.3 1989 First Quarter 66.2 1997 First Quarter 122.1 2005 First Quarter 101.2 Second Quarter 68.5 Second Quarter 124.4 Second Quarter 100.4 Third Quarter 69.7 Third Quarter 124.9 Third Quarter 100.6 Fourth Quarter 72.6 Fourth Quarter 125.8 Fourth Quarter 98.8 Total 1989 277.1 Total 1997 497.3 Total 2005 401.0 1990 First Quarter 74.7 1998 First Quarter 124.0 2006 First Quarter 98.1 Second Quarter 75.8 Second Quarter 131.3 Second Quarter 95.3 Third Quarter 77.9 Third Quarter 130.7 Third Quarter 94.0 Fourth Quarter 79.1 Fourth Quarter 132.8 Fourth Quarter 91.8 Total 1990 307.4 Total 1998 518.8 Total 2006 379.2 1991 First Quarter 79.2 1999 First Quarter 135.6 2007 First Quarter 90.6 Second Quarter 81.9 Second Quarter 138.1 Second Quarter 88.5 Third Quarter 82.6 Third Quarter 138.3 Third Quarter 86.4 Fourth Quarter 84.4 Fourth Quarter 140.3 Fourth Quarter Total 1991 328.0 Total 1999 552.3 Total 2007 Source: National Exchange Carrier Association (NECA), MOU/Data/Summary of NECA's Total Pool Results, December 17, 2007. Industry Analysis and Technology Division, Wireline Competition Bureau, Universal Service Monitoring Report (December 2007). Table 10.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers Chart 10.1 (In Billions) Interstate Switched Access Minutes for Incumbent Local Exchange Carriers 0.0 100.0 200.0 300.0 400.0 500.0 600.0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 10 - 3 Table 10.2 Telephone Calls and Billed Access Minutes of Large ILECs Reporting to the Commission Number of Telephone Calls InterLATA Billed Access Minutes (Thousands) Carried by IXCs (Originating and Terminating) (Thousands) Toll Calls Completed 1 (Originating) Number of Local Calls Total InterLATA InterLATA Year Carriers Carried by InterLATA Interstate Intrastate Total Interstate Intrastate the ILECs Carried by Carried by Carried by IXCs IXCs IXCs 1984 75 350,391,981 NA NA NA NA NA NA NA NA 1985 55 365,304,830 NA NA NA NA NA NA NA NA 1986 57 372,296,473 NA NA NA NA NA NA NA NA 1987 52 379,864,264 NA NA NA NA NA NA NA NA 1988 52 379,035,883 67,547,342 18,983,768 48,563,574 36,752,925 11,810,649 NA NA NA 1989 51 389,383,322 68,547,451 19,406,222 49,141,229 37,593,867 11,547,362 NA NA NA 1990 51 402,492,293 63,359,346 20,263,554 43,095,792 31,888,748 11,207,044 NA NA NA 1991 52 416,213,954 67,333,207 23,337,553 43,995,654 32,126,555 11,869,099 405,456,048 305,745,611 99,710,437 1992 54 434,175,743 71,502,090 22,612,572 48,889,518 36,036,032 12,853,486 432,356,515 327,821,281 104,535,234 1993 53 447,473,714 78,077,246 23,757,662 54,319,584 38,746,788 15,572,796 465,270,369 351,022,599 114,247,770 1994 52 465,207,539 83,441,709 23,796,633 59,645,076 43,244,593 16,400,483 500,297,267 374,996,101 125,301,166 1995 53 484,195,345 94,051,667 23,327,801 70,723,866 50,618,771 20,105,095 549,982,263 405,579,546 144,402,717 1996 51 504,131,507 94,905,927 21,376,847 73,529,080 52,677,037 20,852,043 598,563,946 438,772,880 159,791,066 1997 51 522,025,261 98,424,977 21,844,925 76,580,052 54,563,338 22,016,714 647,813,708 469,638,292 178,175,416 1998 52 544,288,934 96,934,938 18,469,316 78,465,622 55,974,210 22,491,412 690,523,467 497,138,901 193,384,566 1999 52 553,853,237 102,245,666 18,116,240 84,129,426 57,806,961 26,322,465 739,042,459 519,272,905 219,769,554 2000 52 536,523,081 105,978,596 16,157,912 89,820,684 59,212,055 30,608,629 792,263,836 535,011,649 257,252,187 2001 52 515,335,676 97,849,444 14,970,794 82,878,650 53,319,645 29,559,005 745,754,124 504,026,109 241,728,015 2002 53 453,603,777 95,709,932 13,324,887 82,385,045 52,905,686 29,479,359 666,477,372 451,602,651 214,874,720 2003 54 418,024,360 87,750,048 11,938,818 75,811,230 48,942,707 26,868,523 611,454,607 414,766,241 196,688,366 2004 56 380,783,208 82,246,587 10,176,082 72,070,505 47,560,862 24,509,643 600,794,362 406,315,068 194,479,294 2005 56 330,018,175 79,410,078 9,320,956 70,089,122 45,362,434 24,726,688 577,264,068 388,640,682 188,623,386 2006 56 280,182,070 73,065,925 8,619,197 64,446,728 41,993,036 22,453,692 543,163,434 372,044,483 171,118,950 1 Excludes IntraLata toll carried by interexhange carriers. NA - Not available. Notes: Between 1987 and 1988, there were significant changes in the definitions of many of the items in this table due to the implementation of a new Uniform System of Accounts (USOA) in 1988. In 1992, some of these definitions were further refined when the reporting mechanism of the carriers was changed for the filing of 1991 data. For these reasons, there may be inconsistencies in the data reported for 1984-1987 compared to what was reported for 1988, and also between 1988 and subsequent years, as the carriers were adapting to the new USOA and automated reporting requirements. ILEC is an abbreviation for incumbent local exhange carrier. IXC is an abbreviation for interexchange carrier. Source: Industry Analysis and Technology Division, Wireline Competition Division, Statistics of Communications Common Carriers, with updates and revisions contained in the ARMIS database for the most recent five years. Totals may be understated because certain data pertaining to the carriers included in this table are not available. IntraLATA carried by ILECs Total 1 10 - 4 11 - 1 11 Mobile Wireless Service 1. Industry Statistics There are several measures of mobile wireless subscribers. While there are some differences in these data series, they all show significant growth in mobile wireless subscribers. The Commission collects data on the number of wireless subscribers by state as part of the local competition and broadband data gathering program (FCC Form 477). This program requires providers of wireless service to file information twice each year. Prior to June 2005, only wireless carriers with at least 10,000 subscribers in a state were required to report. 1 The Commission also collects data on wireless numbers as part of the data collection on Numbering Resources and Utilization/Forecasting (FCC Form 502). Wireless numbers are a good proxy for wireless subscribers since wireless carriers generally assign only one subscriber per number. The CTIA-The Wireless Association TM periodically publishes summary information on the industry. CTIA can be found on the Internet at www.ctia.org. Table 11.1 and Chart 11.1 show three measures of mobile wireless subscribers over time. In 1984 there were 92,000 subscribers, as compared with about 240 million subscribers as of June 30, 2007. Table 11.2 shows the number of wireless subscribers per state as of June 30, 2007 using data from FCC Form 477. Table 11.3 provides information on the industry published by CTIA. These trends include revenues, cell sites, employees, and average monthly bills. The table shows that the industry had more than 257 thousand employees as of June 2007, as compared to about 3,500 employees in 1986; and there was a significant drop in the average monthly bill from $96.83 at the end of 1987 to $49.94 as of June 2007. 2. Residential Wireless Toll Calling Patterns The summary of residential wireless usage presented in Tables 11.4 through 11.7 is based on calling data captured from a sample of consumer bills by TNS Telecoms. (For additional information on TNS Telecoms, see Appendix B.) While these tables were constructed in a manner similar to those describing wireline toll calling patterns in Section 14, the two sets of tables should be compared with caution. In most cases, wireless bills contain an itemization of all calls, rather than just toll calls. 2 As a result, these tables characterize wireless local and long-distance calling where the tables in Section 14 only cover wireline long distance. To provide some frame of reference, 1 Mobile telephony service providers with fewer than 10,000 subscribers in a state reported about 389,000 subscribers as of June 30, 2005. Such filers reported (on a voluntary basis) about 69,000 subscribers six months earlier. 2 In fact, since this analysis generally includes all outgoing wireless calls, many of the calls in the data are not traditional voice calls. The data include calls made to access voicemail, move data, access the Internet, send faxes or text messages, etc. 11 - 2 wireline distinctions have been imposed on the wireless calling data. That is, we distinguished wireless interstate from intrastate calls. Table 11.4 shows the estimated distribution of residential wireless calls and minutes over time. The vast majority of both calls and minutes were intrastate. The number of interstate calls rose from about 9% to 13% of the total from 2000 to 2003, and interstate minutes rose from 16% to 27% of the total over the same period. This was likely an adjustment to the introduction of flat-rate pricing during that time. Since 2003, the jurisdictional distribution of calls and minutes has been relatively stable. We note that these figures are estimates, based on sample data, and the distribution of calls and minutes may vary across carriers. A snapshot of the duration of wireless calls is presented in Table 11.5. In the 2007 data shown, wireless calls were generally brief. About 72% of intrastate wireless calls (which, again, represent the vast majority of calls) were 2 minutes or less. Like wireline traffic, the data are right-skewed such that a handful of long calls pull the average call duration far above the median duration. As a measure of central tendency, the median is more representative of the duration of a typical call than is the average in this context. Tables 11.6 and 11.7 show when wireless intrastate and interstate calls, respectively, were made. Over the years shown, patterns in intrastate calls have changed only slightly. Daytime minutes gained share from nighttime minutes (from about 72.1% in 2005 to 73.5% in 2007), and weekend use fell slightly as a share of total use. Traffic was typically heaviest on Friday and lightest on Sunday. Patterns in interstate calling were different. Unlike intrastate calls, interstate calls were generally most likely on the weekend, particularly on Sunday. Further, though both types of calls were more likely during the day than at night, relative to intrastate calls, interstate calls were allocated more heavily to the nighttime hours. Nonetheless, the same forces acting to change intrastate calling patterns seem to be having similar, yet more dramatic effects on interstate calling. For example, like intrastate calls, the share of interstate minutes made during the day has continued to increase, from about 63% of the total in 2005 to almost 66% in 2007. Weekend use has also continued to fall, from 38.1% in 2005 to 35.5% in 2007. 1984 December 92 1985 June 204 December 340 1986 June 500 December 682 1987 June 884 December 1,231 1988 June 1,609 December 2,069 1989 June 2,692 December 3,509 1990 June 4,369 December 5,283 1991 June 6,390 December 7,557 1992 June 8,893 December 11,033 1993 June 13,067 December 16,009 1994 June 19,284 December 24,134 1995 June 28,154 December 33,786 1996 June 38,195 December 44,043 1997 June 48,706 December 55,312 1998 June 60,831 December 69,209 1999 June 76,285 December 86,047 79,696 2000 June 97,036 90,643 December 109,478 101,043 99,019 2001 June 118,398 114,029 111,734 December 128,375 123,991 128,493 2002 June 134,561 130,751 136,927 December 140,767 138,878 141,776 2003 June 148,066 147,624 151,861 December 158,722 157,042 160,637 2004 June 169,467 167,313 170,406 December 182,140 181,105 184,819 2005 June 194,479 192,053 198,381 December 207,896 203,667 213,212 2006 June 219,652 217,418 227,135 December 233,041 229,619 241,834 2007 June 243,428 238,230 251,945 NA indicates not available. 1 See Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). Carriers with under 10,000 lines in a state were not required to report until June 2005. 2 Numbers are adjusted for porting. See current and previous editions of Industry Analysis and Technology Division, wireless numbers. 11 - 3 (In Thousands) Table 11.1 Measures of Mobile Wireless Telephone Subscribers FCC Form 502 2 Reported by CTIA Subscribers FCC Form 477 1 Wireline Competition Bureau, Numbering Resource Utilization in the United States. Source: CTIA-The Wireless Association TM and FCC Forms 477 and 502. FCC Form 502 contains assigned (Subscribers in Thousands) Mobile Wireless Telephone Subscribers As of December Chart 11.1 0 50,000 100,000 150,000 200,000 250,000 300,000 CTIA 5,283 7,557 11,033 16,009 24,134 33,786 44,043 55,312 69,209 86,047 109,478 128,375 140,767 158,722 182,140 207,896 233,041 FCC Form 477 79,696 101,043 123,991 138,878 157,042 181,105 203,667 229,619 FCC Form 502 99,019 128,493 141,776 160,673 184,819 213,212 241,834 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 11 - 4 2002 2007 Jun Jun Jun Jun Jun Dec Jun Dec Jun Alabama 12 6 % 1,930,631 2,027,845 2,100,557 2,301,847 2,874,367 3,104,664 3,275,933 3,374,701 3,605,490 Alaska 9 1 218,424 242,133 * 307,323 340,507 376,695 397,429 412,112 431,653 American Samoa * * 0 0 0 * * * * * * Arizona 10 9 2,018,410 2,412,998 2,643,952 3,079,657 3,542,844 3,844,357 4,153,491 4,405,032 4,637,471 Arkansas 6 7 891,275 1,130,302 1,351,291 1,376,564 1,680,975 1,780,621 1,924,313 2,044,217 2,149,312 California 12 5 14,184,625 16,007,376 18,892,619 21,575,797 24,572,034 25,537,232 27,496,682 29,717,334 30,203,842 Colorado 10 10 1,983,405 2,247,166 2,426,929 2,727,910 3,040,589 3,246,994 3,428,381 3,608,209 3,756,215 Connecticut 5 6 1,418,367 1,577,873 1,791,944 2,064,204 2,328,966 2,463,249 2,582,367 2,705,023 2,786,594 Delaware 4 8 389,284 433,059 503,353 593,452 585,113 618,165 650,328 682,636 724,342 Dist. of Columbia 4 6 382,457 415,399 520,182 555,958 752,548 825,195 878,846 880,077 965,816 Florida 9 6 7,536,670 8,607,715 10,252,348 11,916,615 12,619,929 12,568,133 14,176,756 14,761,666 15,255,433 Georgia 11 6 4,076,119 4,300,831 4,709,288 5,332,517 6,001,411 6,079,022 6,865,466 7,281,724 7,598,387 Guam * * * * * * * * * * * Hawaii 4 4 543,283 640,247 732,262 819,262 934,405 983,227 1,010,341 1,034,788 1,066,608 Idaho 16 7 398,781 500,693 572,406 653,779 773,893 834,219 901,455 972,825 1,018,617 Illinois 10 7 5,621,044 5,409,370 6,834,217 7,529,966 8,227,185 8,654,888 9,147,657 9,588,517 9,949,126 Indiana 9 10 1,781,247 2,032,290 2,456,509 2,844,568 3,442,612 3,715,504 3,972,560 4,271,412 4,448,186 Iowa 52 8 861,382 1,157,580 1,250,305 1,445,711 1,633,697 1,811,400 1,867,015 2,009,826 2,058,022 Kansas 12 12 901,225 1,061,171 1,195,230 1,345,160 1,659,662 1,794,268 1,905,342 2,046,542 2,133,399 Kentucky 10 10 1,176,756 1,505,982 1,595,290 2,000,459 2,507,816 2,662,278 2,820,938 2,966,195 3,015,370 Louisiana 9 7 1,677,292 2,187,811 2,365,224 2,547,153 2,942,463 3,191,583 3,355,503 3,492,358 3,611,553 Maine 6 14 399,616 457,835 524,246 610,533 710,985 746,141 786,811 844,537 882,039 Maryland 6 6 2,446,818 2,684,441 3,108,086 3,575,747 3,967,969 4,239,259 4,470,542 4,691,026 4,818,275 Massachusetts 5 6 2,753,685 3,289,934 3,506,039 3,919,139 4,487,601 4,727,742 4,916,500 5,128,860 5,289,432 Michigan 12 7 4,071,091 4,758,538 4,889,269 5,430,637 6,229,949 6,603,942 6,862,582 7,093,721 7,333,242 Minnesota 8 10 2,014,317 2,254,895 2,564,783 2,823,079 3,132,453 3,379,832 3,542,865 3,701,515 3,833,826 Mississippi 9 8 993,781 1,106,700 1,232,750 1,411,277 1,631,331 1,821,087 1,923,365 2,029,916 2,069,897 Missouri 12 8 1,937,684 2,246,430 2,515,325 2,859,953 3,595,157 3,853,072 4,067,585 4,322,458 4,480,384 Montana 7 5 * 291,429 343,160 * 466,022 525,003 575,034 619,620 650,381 Nebraska 10 5 712,685 838,568 900,744 984,355 1,070,550 1,160,062 1,198,714 1,272,067 1,325,131 Nevada 8 8 766,581 895,586 1,077,380 1,319,684 1,604,713 1,777,387 1,883,273 1,990,215 2,092,872 New Hampshire 6 9 445,181 529,795 598,504 686,746 790,639 849,344 896,661 943,330 973,105 New Jersey 4 5 3,896,778 4,531,457 5,392,240 6,326,459 6,233,984 6,616,560 6,953,528 7,207,018 7,419,289 New Mexico 9 9 619,582 735,107 828,869 939,091 1,024,852 1,170,186 1,252,770 1,333,210 1,415,726 New York 10 7 6,749,096 7,915,526 8,829,070 9,939,759 12,995,534 13,804,502 14,573,548 15,261,760 15,901,378 North Carolina 14 7 3,377,331 4,610,120 4,305,521 4,875,916 5,503,202 5,791,947 6,209,483 6,626,582 6,961,656 North Dakota 6 4 * * * * 367,850 431,675 456,806 472,799 492,101 Northern Mariana Isl. * * * * * * * * * * * Ohio 11 8 4,255,934 4,887,376 5,659,459 6,188,081 6,993,803 7,503,673 7,939,126 8,380,138 8,722,523 Oklahoma 15 8 1,200,234 1,366,475 1,574,588 1,724,505 2,001,835 2,188,590 2,317,197 2,479,877 2,571,878 Oregon 11 8 1,268,909 1,473,883 1,682,036 1,894,285 2,055,890 2,339,414 2,484,176 2,655,905 2,781,196 Pennsylvania 11 9 4,378,216 4,987,067 5,681,653 6,420,037 7,397,397 7,942,340 8,348,713 8,831,238 9,200,793 Puerto Rico 6 4 1,374,747 1,136,619 1,401,599 1,698,702 2,002,851 2,110,798 2,170,540 2,301,275 2,322,737 Rhode Island 4 7 401,805 463,636 527,366 615,398 689,209 749,091 765,355 797,603 828,969 South Carolina 13 7 1,502,345 1,830,516 2,041,541 2,337,367 2,606,827 2,783,511 3,000,861 3,208,504 3,339,733 South Dakota 7 4 * 292,210 344,825 382,906 433,927 481,404 513,850 547,812 569,513 Tennessee 12 8 2,251,208 2,660,068 2,800,735 3,171,487 4,065,964 4,417,140 4,730,704 5,126,510 4,970,756 Texas 29 6 8,294,338 9,650,715 10,776,234 12,091,134 14,424,253 15,644,066 16,927,880 17,822,230 18,792,225 Utah 11 7 833,492 970,854 1,094,563 1,229,029 1,413,756 1,529,501 1,649,265 1,774,755 1,874,345 Vermont 4 15 * * * * 294,984 314,325 333,551 358,052 374,984 Virgin Islands * * * * * * * * * * * Virginia 8 7 3,059,420 3,429,450 3,879,582 4,392,319 4,851,206 5,072,921 5,325,173 5,607,350 6,148,261 Washington 10 9 2,493,214 2,849,043 3,102,750 3,567,896 4,062,372 4,249,357 4,494,964 4,799,143 5,034,885 West Virginia 9 14 452,036 549,722 579,983 713,657 820,838 858,310 964,649 1,040,224 1,095,038 Wisconsin 11 8 2,008,679 2,523,956 2,533,215 2,831,645 3,200,301 3,366,332 3,517,283 3,509,528 3,641,432 Wyoming 9 7 173,939 168,232 276,344 277,658 315,347 342,008 358,668 387,164 410,464 Nationwide 170 7 % 114,028,928 130,751,459 147,623,734 167,313,001 192,053,067 203,667,474 217,418,404 229,619,397 238,229,953 2 Percentage of mobile wireless subscribers receiving their service from a mobile wireless reseller. 1 For data through December 2004, only facilities-based wireless carriers with at least 10,000 mobile telephony subscribers per state were required to report data, and they were instructed to use billing addresses to determine subscriber counts by state. Starting with the June 2005 data, all facilities-based wireless carriers are required to report, and to use the area codes of telephone numbers provided to subscribers to determine subscriber counts by state. Jun 2007 Carriers 1 Percent Resold 2 2001 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2007 (March 2008). Table 11.2 Subscribers * Data withheld to maintain firm confidentiality. 2004State 2003 2005 2006 Mobile Wireless Telephone Subscribers 1 11 - 5 Table 11.3 Mobile Wireless Telephone Service: Industry Survey Results (As Reported by CTIA-The Wireless Association TM ) Employees 1986 June 500,000 $360,585 1,194 3,556 December 681,825 462,467 1,531 4,334 1987 June 883,778 479,514 1,732 5,656 December 1,230,855 672,005 2,305 7,147 $96.83 1988 June 1,608,697 886,075 2,789 9,154 95.00 December 2,069,441 1,073,473 $89,331 3,209 11,400 98.02 1989 June 2,691,793 1,406,463 121,368 3,577 13,719 85.52 December 3,508,944 1,934,132 173,199 4,169 15,927 89.30 1990 June 4,368,686 2,126,362 192,350 4,768 18,973 83.94 December 5,283,055 2,422,458 263,660 5,616 21,382 80.90 1991 June 6,380,053 2,653,505 302,329 6,685 25,545 74.56 December 7,557,148 3,055,017 401,325 7,847 26,327 72.74 1992 June 8,892,535 3,633,285 436,725 8,901 30,595 68.51 December 11,032,753 4,189,441 537,146 10,307 34,348 68.68 1993 June 13,067,318 4,819,259 587,347 11,551 36,501 67.31 December 16,009,461 6,072,906 774,266 12,824 39,775 61.48 140 1994 June 19,283,306 6,519,030 778,116 14,740 45,606 58.65 December 24,134,421 7,710,890 1,052,666 17,920 53,902 56.21 119 1995 June 28,154,414 8,740,352 1,120,337 19,833 60,624 52.42 December 33,785,661 10,331,614 1,422,233 22,663 68,165 51.00 119 1996 June 38,195,466 11,194,247 1,314,943 24,802 73,365 48.84 December 44,042,992 12,440,724 1,465,992 30,045 84,161 47.70 125 1997 June 48,705,553 13,134,551 1,392,440 38,650 97,039 43.86 December 55,312,293 14,351,082 1,581,765 51,600 109,387 42.78 117 1998 June 60,831,431 15,286,660 1,584,891 57,674 113,111 39.88 December 69,209,321 17,846,515 1,915,578 65,887 134,754 39.43 136 1999 June 76,284,753 19,368,304 1,922,416 74,157 141,929 40.24 December 86,047,003 20,650,185 2,163,001 81,698 155,817 41.24 185 2000 June 97,035,925 24,645,365 1,971,625 95,733 159,645 45.15 December 109,478,031 27,820,655 1,911,356 104,288 184,449 45.27 255 2001 June 118,397,734 30,905,721 1,727,058 114,059 186,317 45.56 December 128,374,512 34,410,513 2,209,387 127,540 203,580 47.37 380 2002 June 134,561,370 36,707,086 1,846,267 131,350 186,956 47.42 December 140,766,842 39,801,101 2,049,245 139,338 192,410 48.40 427 2003 June 148,065,824 41,384,171 1,825,243 147,719 187,169 49.46 December 158,721,981 46,239,922 1,941,024 162,986 205,629 49.91 507 2004 June 169,467,393 49,275,671 2,015,780 174,368 212,368 49.49 December 182,140,362 52,845,539 2,194,532 175,725 226,016 50.64 584 2005 June 194,479,364 55,689,208 1,941,960 178,025 225,162 49.52 December 207,896,198 57,849,013 1,844,371 183.689 233,067 49.98 708 2006 June 219,652,457 60,450,669 1,713,680 197,576 238,236 49.30 December 233,040,781 65,006,156 1,780,614 195,613 253,793 50.56 714 2007 June 243,428,202 67,887,668 1,830,435 210,360 257,401 49.94 * Represents the average per month for the last six months of the year. Source: CTIA-The Wireless Association TM : Estimates for Total Industry. Subscribers (Thousands) Six-Month Revenues (Thousands) Cell SitesRoamer Service Revenues Month * Bill * Average Minutes of Use per Average Monthly 11 - 6 Intrastate Interstate Others 2 Intrastate Interstate Others 2 2000 87 9 4 295,892 82 16 2 760,380 2001 84 11 5 330,444 76 22 2 952,993 2002 82 13 5 502,946 71 26 2 1,614,341 2003 82 13 5 547,767 71 27 3 1,797,559 2004 82 14 4 508,799 70 28 2 1,690,428 2005 81 15 4 506,072 70 28 2 1,717,643 2006 81 14 5 610,693 71 27 3 2,123,705 2007 81 15 4 381,996 71 28 1 1,366,040 1 Outgoing, itemized calls only. Calls Minutes Table 11.4 Distribution of Residential Wireless Calls and Minutes 1 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Percentage of Calls Total Calls in Sample Percentage of Minutes Total Minutes in Sample Year Note: Individual figures may not add to totals due to rounding. Some previously published figures have been revised. 2 Inter-, intrastate status could not be determined. 11 - 7 Table 11.5 Duration of Residential Wireless Calls: 2007 1 Duration of Call (Minutes) Intrastate Interstate All Calls 1 49.0 % 39.0 % 47.5 % 2 22.6 20.0 22.2 3 8.3 7.1 8.2 4 4.7 4.5 4.6 5 2.9 3.3 3.0 6 2.1 2.7 2.2 7 1.5 2.2 1.6 8 1.2 1.9 1.3 9 1.0 1.6 1.1 10 0.8 1.4 0.9 11-15 2.5 5.4 2.9 16-20 1.3 3.3 1.6 21-25 0.7 2.0 0.9 26-30 0.4 1.5 0.6 31-45 0.5 2.3 0.8 46-60 0.2 0.9 0.3 > 60 0.2 1.0 0.3 Average Duration 3.3 6.5 3.8 Median Duration 2.0 2.0 2.0 Sample Size 291,142 52,047 343,189 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ . 1 Outgoing, itemized calls only. All seven-digit dialed calls are considered intrastate. 800-type calls and calls for which a cross-state distinction could not be made were excluded from this analysis. Note: Individual figures may not add to totals due to rounding. 11 - 8 Table 11.6 Distribution of Residential Intrastate Wireless Minutes By Day and Time 1 2007 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 10.3 % 3.7 % 14.0 % Tuesday 11.1 4.0 15.1 Wednesday 10.9 4.2 15.1 Thursday 11.2 4.2 15.5 Friday 11.9 3.9 15.8 Saturday 10.1 3.2 13.3 Sunday 7.9 3.3 11.2 Total 73.5 % 26.5 % 100.0 % Calls in sample =291,142. 2006 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 10.7 % 3.7 % 14.4 % Tuesday 10.8 4.1 14.9 Wednesday 11.0 4.0 15.1 Thursday 11.1 4.2 15.3 Friday 11.8 3.9 15.7 Saturday 10.2 3.3 13.5 Sunday 7.7 3.4 11.1 Total 73.4 % 26.6 % 100.0 % Calls in sample = 463,098. 2005 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 10.2 % 4.0 % 14.2 % Tuesday 10.7 4.1 14.8 Wednesday 10.9 4.1 15.0 Thursday 11.0 4.4 15.4 Friday 11.6 3.9 15.4 Saturday 9.8 3.7 13.4 Sunday 8.0 3.7 11.7 Total 72.1 % 27.9 % 100.0 % Calls in sample = 384,751. Note: Individual figures may not add to totals due to rounding. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Outgoing, itemized calls only. All seven-digit dialed calls are considered intrastate. 800-type calls and calls for which a cross-state distinction could not be made were excluded from this analysis. 11 - 9 Table 11.7 Distribution of Residential Interstate Wireless Minutes By Day and Time 1 2007 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 8.7 % 4.6 % 13.3 % Tuesday 8.2 4.6 12.8 Wednesday 7.7 4.7 12.3 Thursday 8.5 5.0 13.5 Friday 8.5 4.1 12.6 Saturday 12.5 4.1 16.6 Sunday 12.4 6.5 18.9 Total 66.5 % 33.5 % 100.0 % Calls in sample = 52,047. 2006 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 7.9 % 4.8 % 12.7 % Tuesday 8.1 4.7 12.8 Wednesday 7.9 5.0 12.9 Thursday 8.1 5.0 13.1 Friday 8.2 4.2 12.4 Saturday 12.4 4.3 16.7 Sunday 12.7 6.6 19.3 Total 65.3 % 34.7 % 100.0 % Calls in sample = 81,632. 2005 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 7.4 % 5.2 % 12.6 % Tuesday 6.9 5.1 12.0 Wednesday 7.0 5.3 12.3 Thursday 7.2 5.1 12.3 Friday 7.9 4.8 12.7 Saturday 13.2 4.7 17.9 Sunday 13.4 6.9 20.3 Total 62.9 % 37.1 % 100.0 % Calls in sample = 73,762. Note: Individual figures may not add to totals due to rounding. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Outgoing, itemized calls only. All seven-digit dialed calls are considered intrastate. 800-type calls and calls for which a cross-state distinction could not be made were excluded from this analysis. 11 - 10 12 - 1 12 Price Indices for Telephone Services The Bureau of Labor Statistics (BLS) collects a variety of information on telephone service as part of three separate programs -- the Consumer Price Index (CPI), the Producer Price Index (PPI), and the Consumer Expenditure Survey. They can be found on the Internet at www.bls.gov. The following material illustrates the range of information available from price indices. 1. Long-Term Trends in Price Indices A price index for telephone service was first published in 1935. Since that time, telephone prices have tended to increase at a slower pace than most other prices. Table 12.1 shows long-term changes in the consumer price indices for all items, all services, telephone services, each of the seven major categories that currently constitute the overall CPI and several services that are often characterized as being public utilities. Chart 12.1 shows the CPI telephone services trend as compared to the CPI all items trend from 1956 through 2006. 2. Comprehensive Price Indices The CPI index of telephone services is based on a market basket intended to represent the telephone-related expenditures of a typical urban household. It includes local, long distance, and cellular services. Beginning in 1987, the CPI for all items has consistently been higher than the CPI for telephone services as shown in Chart 12.1. The annual rates of change are shown in Table 12.2 and the associated chart for the overall CPI (which measures the impact of inflation on consumers) and the CPI for telephone services. In addition, Table 12.2 shows the gross domestic product chain-type price index (which measures inflation throughout the economy) prepared by the Department of Commerce’s Bureau of Economic Analysis. Chart 12.2 shows the annual percentage changes for the overall CPI and CPI for telephone services. 3. Price Indices for Local Service The CPI index of local telephone charges is based on a broadly defined market basket that includes: monthly service charges, message unit charges, leased equipment, installation, service enhancements (such as tone dialing and call waiting), taxes, and subscriber line charges. In contrast, the PPI index of monthly residential rates is much more narrowly defined. It is based only on monthly service charges for residential service, optional touch-tone service, and subscriber line charges. It excludes taxes, charges for special services such as call waiting, and all other expenditures. The annual rates of change for these indices of local costs are presented in Table 12.3 and Chart 12.3. 4. Price Indices for Long Distance Service Price indices are available for intrastate toll and interstate toll services. These series are also presented in Table 12.3 and Chart 12.3. 12 - 2 5. Price-Index Limitations Price indices are less reliable when industries are changing rapidly. For example, in 1992, long distance carriers began to increase basic rates while greatly expanding their range of discount offerings. The fixed market basket of toll calls measured for the CPI did not fully reflect these discounts. In 1995, BLS made major changes to the PPI telephone series, and there are no data after July 1995 comparable with prior data. Because of these sorts of difficulties, measures of average revenues are sometimes used as alternatives to price indices. 1956 - 2006 1996 - 2006 CPI All Items 4.1 % 2.5 % CPI All Services 5.0 3.2 CPI Telephone Services 1 1.7 -0.3 CPI Major Categories: - Food & Beverages * 2.4 - Housing * 2.9 - Apparel 2.0 -1.0 - Transportation 3.9 2.4 - Medical Care 5.9 4.0 - Recreation * 1.3 - Other Goods & Services * 4.1 CPI Public Transportation 5.1 2.2 CPI Utility (Piped) Gas Service 5.5 7.5 CPI Electricity 3.6 2.5 CPI Water & Sewerage Maintenance 5.6 3.8 CPI Postage 4.8 2.3 Source: Bureau of Labor Statistics. Long-Term Changes for Various Price Indices Chart 12.1 CPI All Items and CPI Telephone Services Base Periods: 1982-84 = 100 Table 12.1 (Annual Rates of Change) * Series not established until after 1955. 1 The CPI telephone service index was revised in December of 1997. 0 50 100 150 200 250 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 CPI All Items CPI Telephone Services 12 - 3 1978 7.3 % 9.0 % 0.9 % 1979 8.7 13.3 0.7 1980 9.7 12.5 4.6 1981 8.3 8.9 11.7 1982 5.2 3.8 7.2 1983 3.4 3.8 3.6 1984 3.6 3.9 9.2 1985 2.8 3.8 4.7 1986 2.3 1.1 2.7 1987 2.9 4.4 -1.3 1988 3.7 4.4 1.3 1989 3.5 4.6 -0.3 1990 4.1 6.1 -0.4 1991 3.1 3.1 3.5 1992 2.1 2.9 -0.3 1993 2.3 2.7 1.8 1994 2.2 2.7 0.7 1995 2.0 2.5 1.2 1996 1.9 3.3 2.1 1997 1.5 1.7 0.2 1998 1.1 1.6 0.3 * 1999 1.5 2.7 0.4 2000 2.3 3.4 -2.3 2001 2.5 1.6 1.3 2002 1.7 2.4 0.2 2003 2.0 1.9 -2.7 2004 2.9 3.3 -2.5 2005 3.1 3.4 0.4 2006 2.5 3.1 0.4 * The CPI telephone service index was revised in December of 1997. Sources: Bureau of Labor Statistics and Bureau of Economic Analysis. Table 12.2 Annual Changes in Major Price Indices GDP Chain-Type Price Index CPI - All Items CPI - Telephone Services Percent Change in CPI All Items and CPI Telephone Services Chart 12.2 Note: All values calculated as the percent change from December of the previous year through December of the year shown, except the GDP price index which is based on changes from the 4th quarter to 4th quarter. -15% -10% -5% 0% 5% 10% 15% 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Percent Cha n g e fro m Pri o r Yea r CPI - All Items CPI - Telephone Services 12 - 4 1978 1.4 % 3.1 % -0.7 % 0.0 % 1.3 % 0.1 % 1979 1.7 1.6 -0.8 -0.9 0.1 -0.7 1980 7.0 7.1 3.4 5.5 -0.6 2.3 1981 12.6 15.6 14.6 15.9 6.2 8.0 1982 10.8 9.0 2.7 3.9 4.2 1.7 1983 3.1 0.2 1.4 0.0 7.4 3.9 1984 17.2 10.4 -4.3 -5.1 3.6 3.8 1985 8.9 12.4 -3.7 -3.0 0.6 2.1 1986 7.1 8.9 -9.4 -10.0 0.3 -3.5 1987 3.3 2.6 -12.4 -11.8 -3.0 -3.0 1988 4.5 4.6 -4.2 -2.1 -4.2 -3.8 1989 0.6 1.9 -1.3 -1.7 -2.6 0.5 1990 1.0 1.5 -3.7 -0.1 -2.2 -2.2 1991 5.1 2.1 1.3 -1.3 -1.5 -2.6 1992 0.5 -0.2 -1.3 1.0 -2.4 1.3 1993 1.0 0.8 6.5 3.8 0.2 -1.1 1994 -0.3 0.7 5.4 6.1 -1.0 -1.4 1995 2.6 2 0.1 2 -3.8 2 1996 0.9 0.2 3.7 0.8 6.1 0.9 1997 1.0 0.1 -4.3 7.8 2.8 -4.3 1998 1.3 0.0 -0.8 -0.4 1.5 -3.7 1999 2.8 0.2 -0.7 2.4 -1.6 -2.8 2000 5.5 1.5 -11.2 -4.3 -6.0 0.2 2001 4.5 2.7 -2.0 -9.4 -1.7 1.7 2002 5.3 1.6 -5.9 -18.5 -6.1 -0.3 2003 2.6 1.9 -10.9 -2.4 -9.4 -12.6 2004 1.1 0.7 -8.7 0.7 -6.6 -2.9 2005 3.3 0.9 -3.0 7.4 0.4 0.2 2006 2.2 2.0 3 5.1 23.1 3 3.3 0.9 3 Note: Data reflect the percent change from December of the previous year through December of the year shown. Source: Bureau of Labor Statistics. CPI PPICPI PPI CPI PPI Table 12.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services Local Residential Service Toll Service 1 Interstate Intrastate 3 Preliminary and subject to revision. 1 The CPI toll indices represent rates for households. Through 1994, PPI toll indices represent rate changes for both business and residential consumers. Since 1995, PPI indices reflect rates for residential customers. 2 The PPI telephone indices were revised in June of 1995. The series are not comparable. CPI Telephone Service Price Indices Chart 12.3 Base Periods: 1982-1984 = 100 0 20 40 60 80 100 120 140 160 180 200 220 1979 1981 1983 1985 1987 1989 1991 1993 1996 1998 2000 2002 2004 2006 CPI Local Services CPI Interstate Toll CPI Intrastate Toll 12 - 5 13 - 1 13 Price Levels 1. Local Rates The price indices maintained by the Bureau of Labor Statistics indicate percentage changes in the price of telephone services. BLS does not publish actual rate levels. Calculations of average rates are based on surveys by FCC staff. These surveys use the same sampling areas and weights used by BLS in constructing the Consumer Price Index. Table 13.1 presents average local rates for residential customers in urban areas. In October 2007, the average monthly charge was $24.80 while the average charge for connecting phone service was $40.67. Table 13.2 presents average local rates for a business with a single phone line in an urban area. In October 2007, the average monthly charge was $48.14 while the average charge for connecting phone service was $69.18. Table 13.3 presents the average local rate for a residential phone line from 1940 to 2007. The table shows, after adjusting for inflation, the price of a local exchange line declined from 1940 through the early 1980s. 2. Long Distance Rates Table 13.4 contains measures of average revenue per minute (ARPM) for long distance calls. Estimates of ARPM are often used interchangeably with estimates of the average price. From 1984 to 2006 the cost of long distance calling dropped from 32 cents per minute to 7 cents per minute. The average price of 7 cents per minute represents a mix of international calling (10 cents per minute) and domestic interstate calling (6 cents per minute). The decline in prices since 1984 is more than 85% after adjusting for the impact of inflation. Chart 13.1 shows that on a per minute basis, the cost of access and of contributing to universal service support has declined over time. These declines account for much of the decrease in interstate toll rates. 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 2007 2 Representative Monthly Charge 3 4 $12.58 $12.44 $12.32 $12.30 $12.36 $13.03 $13.05 $13.16 $13.19 $13.62 $13.71 $13.67 $13.75 $13.77 $13.64 $14.49 $14.38 $14.54 $14.57 $14.75 $14.47 $15.18 Subscriber Line Charges 2.04 2.66 2.67 3.53 3.55 3.56 3.55 3.55 3.55 3.54 3.54 3.53 3.52 3.58 4.50 5.05 5.74 5.86 5.81 5.81 5.80 5.58 Additional Monthly Charge for Touch-Tone Service 1.57 1.52 1.54 1.52 1.33 1.06 0.97 0.94 0.77 0.44 0.30 0.25 0.10 0.09 0.06 0.04 4 4 4 4 4 4 Taxes, 911, and Other Charges 1.51 1.56 1.58 1.70 2.00 2.12 2.15 2.29 2.31 2.41 2.40 2.42 2.39 2.48 2.57 3.03 3.94 4.12 4.14 4.19 4.09 4.04 Total Monthly Charge $17.70 $18.18 $18.11 $19.05 $19.24 $19.77 $19.72 $19.95 $19.81 $20.01 $19.95 $19.88 $19.76 $19.93 $20.78 $22.62 $24.07 $24.75 $24.52 $24.74 $24.36 $24.80 Basic Connection Charge 4 $45.63 $44.04 $42.94 $43.06 $43.06 $42.00 $41.50 $41.38 $41.28 $40.91 $41.11 $41.04 $41.24 $41.26 $41.45 $40.02 $39.83 $39.22 $39.26 $39.30 $37.59 $37.71 Additional Connection Charge for Touch- Tone Service 1.34 1.31 1.55 1.76 1.77 1.27 1.22 1.23 0.85 0.23 0.23 0.17 0.12 0.12 0.12 0.12 4 4 4 4 4 4 Taxes, 911, and Other Charges 2.28 2.20 2.11 2.44 2.32 2.30 2.29 2.30 2.33 2.44 2.36 2.46 2.38 2.57 2.53 2.81 1.33 3.32 3.44 3.41 2.55 2.96 Total Connection Charge $49.25 $47.55 $46.60 $47.26 $47.15 $45.57 $45.01 $44.92 $44.46 $43.58 $43.70 $43.67 $43.74 $43.95 $44.10 $42.95 $41.16 $42.54 $42.71 $42.71 $40.13 $40.67 Additional Charge if Drop Line and Connection Block Needed NA NA $6.04 $6.07 $6.89 $6.89 $6.50 $7.29 $6.74 $5.90 $5.74 $5.65 $5.64 $5.86 $5.84 $5.84 $5.85 $12.13 $12.45 $12.45 $11.63 $10.37 Lowest-Cost Inside Wiring Maintenance Plan $0.58 $0.85 $0.89 $1.07 $1.07 $1.20 $1.25 $1.31 $1.45 $1.52 $1.78 $1.68 $2.22 $2.66 $3.03 $3.62 $3.62 $3.64 $4.08 $4.31 $4.95 $5.37 NA - Not Available. 3 Rates are based on flat-rate service where available, and measured/message service with one hundred five-minute, same-zone, business-day calls elsewhere. As of 2001, all 95 cities in the Urban Rates Survey offered flat-rate residential service, which made measuring the cost of such calls unnecessary. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (2006) . 1 Revised. 4 Beginning in 2002, additional monthly charges for touch-tone service are included in the monthly charge. 2 Subject to revision. Table 13.1 Average Residential Rates for Local Service in Urban Areas, 1986 - 2007 (As of October 15) 13 - 3 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 2007 2 Monthly Representative Service Charge 3 $31.06 $30.97 $32.29 $32.45 $32.70 $32.25 $32.48 $32.58 $32.76 $32.44 $32.41 $32.18 $31.88 $30.86 $30.65 $32.11 $32.49 $33.33 $36.59 Subscriber Line Charges 3.55 3.57 3.57 3.56 3.57 3.57 3.57 3.54 3.54 3.54 3.52 4.39 4.91 5.63 5.76 5.71 5.72 5.91 5.74 Extra for Touch-Tone Service 4 2.43 2.35 1.84 1.71 1.67 1.21 0.97 0.82 0.38 0.32 0.25 0.19 0.18 4 4 4 4 4 4 Taxes, 911, and Other Charges 4.21 4.32 4.42 4.57 4.63 4.61 4.79 4.87 4.99 4.97 5.03 5.04 5.45 5.47 5.55 5.67 5.74 5.82 5.81 Total Monthly Charge $41.25 $41.21 $42.12 $42.29 $42.57 $41.64 $41.80 $41.81 $41.67 $41.27 $41.21 $41.80 $42.43 $41.95 $41.97 $43.49 $43.94 $45.06 $48.14 Monthly Charge for Flat-Rate Service $33.04 $33.29 $34.12 $34.06 $34.85 $34.39 $34.45 $34.42 $34.68 $34.39 $33.73 $33.45 $32.02 $32.92 $33.17 $34.20 $34.15 $34.60 $35.22 Subscriber Line Charges 3.65 3.69 3.70 3.70 3.70 3.70 3.69 3.61 3.61 3.56 3.50 4.35 4.77 5.77 6.03 6.01 6.04 6.15 6.15 Extra for Touch-Tone Service 4 2.12 2.11 1.87 1.84 1.76 1.12 1.00 0.89 0.53 0.49 0.47 0.43 0.39 4 4 4 4 4 4 Taxes, 911, and Other Charges 4.90 4.98 5.22 5.34 5.50 5.36 5.58 5.55 5.58 5.63 5.49 5.68 5.98 8.16 7.91 7.53 7.71 7.69 7.36 Total Monthly Charge for Flat-Rate Service $43.71 $44.07 $44.91 $44.94 $45.81 $44.57 $44.71 $44.47 $44.39 $44.07 $43.20 $43.90 $43.15 $46.85 $47.12 $47.74 $47.90 $48.45 $48.72 Number of Sample Cities with Flat-Rate Service 59 56 54 54 54 53 53 53 53 54 54 54 56 52 52 56 56 56 56 Monthly Charge for Measured/Message Service $16.18 $16.17 $16.76 $16.55 $16.60 $16.74 $17.06 $17.26 $17.28 $17.16 $17.06 $16.92 $17.16 $17.56 $17.21 $18.49 18.02 $16.56 18.75 200 Five-Minute Same-Zone Business-Day Calls 16.11 16.19 16.70 17.23 17.57 17.38 17.15 17.10 17.18 17.15 17.24 17.63 17.56 16.78 17.17 17.86 17.87 16.67 17.69 Subscriber Line Charges 3.54 3.55 3.55 3.54 3.55 3.55 3.54 3.51 3.51 3.53 3.52 4.39 4.90 5.56 5.65 5.86 5.66 5.52 5.61 Extra for Touch-Tone Service 4 2.48 2.39 1.87 1.73 1.68 1.22 0.98 0.83 0.39 0.33 0.25 0.20 0.19 4 4 4 4 4 4 Taxes, Including 911 Charges 4.41 4.53 4.56 4.77 4.86 4.83 5.01 5.13 5.22 5.19 5.28 5.32 5.76 4.71 4.78 5.07 4.72 4.69 5.02 Total Monthly Charge for Measured/Message Service $42.72 $42.83 $43.44 $43.82 $44.26 $43.72 $43.75 $43.84 $43.57 $43.35 $43.35 $44.45 $45.57 $44.61 $44.82 $47.29 $46.27 $43.44 $47.06 Number of Sample Cities with Measured/Message Service 83 83 84 84 84 87 87 86 85 85 85 85 85 86 85 86 85 89 78 Cost of a Five-Minute Same-Zone Business-Day Call $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.10 $0.09 $0.09 $0.09 $0.10 $0.10 $0.09 $0.10 Basic Connection Charge $71.05 $71.36 $72.75 $72.55 $71.41 $69.88 $67.87 $68.47 $68.67 $65.83 $67.87 $67.77 $67.04 $67.29 $67.23 $67.24 $67.35 $62.95 $63.07 Additional Connection Charge for Touch-Tone Service 4 1.70 1.89 1.13 1.19 1.17 0.92 0.27 0.17 0.17 0.12 0.12 0.12 0.12 4 4 4 4 4 4 Taxes, Including 911 Charges 4.06 4.15 4.32 4.33 4.25 4.13 4.17 4.20 4.45 4.13 4.53 4.40 4.69 5.09 6.95 6.42 6.35 6.50 6.11 Total Connection Charge $76.81 $77.40 $78.20 $78.07 $76.83 $74.93 $72.31 $72.85 $73.29 $70.09 $72.55 $72.29 $71.86 $72.39 $74.18 $74.18 $73.70 $74.18 $69.18 Additional Charge if Drop Line and Connection Block Needed $5.92 $7.87 $6.90 $6.83 $6.64 $6.49 $7.28 $6.98 $6.54 $6.54 $6.65 $6.62 $6.62 $6.52 $13.43 $13.76 $13.76 $9.35 $11.62 Lowest-Cost Inside Wiring Maintenance Plan $1.78 $1.91 $2.05 $2.03 $2.08 $2.26 $2.39 $2.63 $2.84 $3.04 $3.53 $3.92 $4.86 $4.73 $4.65 $4.94 $5.73 $4.70 $5.66 Note: Details may not add to totals due to rounding. 1 Revised. 2 Subject to revision. 3 Rates are based on flat-rate service where available, and measured/message service with 200 five-minute, same-zone, business-day calls elsewhere. 4 Beginning in 2002, additional monthly charges for touch-tone service are included in the monthly charge. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (2006) . Table 13.2 Average Local Rates for Businesses with a Single Line in Urban Areas, 1989 - 2007 (As of October 15) 13 - 4 Table 13.3 Average Rate for a Residential Access Line Consumer Average Rate Consumer Average Rate Price for a Price for a Index Residential Access Line Index Residential Access Line All Urban All Urban All Goods Survey Rate Restated All Goods Survey Rate Restated and Services in 2006 and Services in 2006 (1982-1984 Dollars (1982-1984 Dollars = 100) = 100) 1940 14.0 $3.67 $54.34 1978 65.2 $8.31 $26.42 1941 14.7 3.67 51.75 1979 72.6 8.40 23.99 1942 16.3 3.64 46.29 1980 82.4 8.61 21.66 1943 17.3 3.64 43.62 1981 90.9 9.16 20.89 1944 17.6 3.66 43.11 1982 96.5 10.18 21.87 1945 18.0 3.67 42.27 1983 99.6 13.58 28.26 1946 19.5 3.67 39.01 1984 103.9 15.18 30.29 1947 22.3 3.70 34.40 1985 107.6 16.26 31.33 1948 24.1 3.91 33.63 1986 109.6 17.70 33.48 1949 23.8 4.02 35.01 1987 113.6 18.18 33.18 1950 24.1 4.29 36.90 1988 118.3 18.11 31.73 1951 26.0 4.48 35.72 1989 124.0 19.05 31.85 1952 26.5 4.62 36.14 1990 130.7 19.24 30.52 1953 26.7 4.93 38.28 1991 136.2 19.77 30.09 1954 26.9 5.10 39.30 1992 140.3 19.72 29.14 1955 26.8 5.19 40.15 1993 144.5 19.95 28.62 1956 27.2 5.24 39.94 1994 148.2 19.81 27.71 1957 28.1 5.28 38.95 1995 152.4 20.01 27.22 1958 28.9 5.36 38.45 1996 156.9 19.95 26.36 1959 29.1 5.51 39.25 1997 160.5 19.88 25.68 1960 29.6 5.55 38.87 1998 163.0 19.76 25.13 1961 29.9 5.61 38.89 1999 166.6 19.93 24.80 1962 30.2 5.62 38.58 2000 172.2 20.78 25.02 1963 30.6 5.65 38.28 2001 177.1 22.62 26.48 1964 31.0 5.66 37.85 2002 179.9 24.07 27.74 1965 31.5 5.67 37.31 2003 184.0 24.75 27.88 1966 32.4 5.64 36.09 2004 188.9 24.52 26.91 1967 33.4 5.60 34.76 2005 195.3 24.74 26.26 1968 34.8 5.61 33.42 2006 201.6 25.36 26.08 1969 36.7 5.68 32.08 2007 207.3 24.80 24.80 1970 38.8 5.76 30.77 1971 40.5 6.04 30.92 1972 41.8 6.38 31.64 1973 44.4 6.69 31.24 1974 49.3 7.08 29.77 1975 53.8 7.32 28.21 1976 56.9 7.81 28.45 1977 60.6 8.07 27.61 Sources:Averages for 1940 through 1982 are from an AT&T local rate survey and represent January 1 rates. These averages exclude taxes and are for rotary service including the cost of a telephone. See Reference Book of Rates, Price Indices and Expenditures for Telephone Service, Wireline Competition Bureau. Starting in 1983, averages are from the Urban Rates Survey and represent October 15 rates. These averages include taxes and are for touch tone service but do not include telephone rental charges or any unbundled inside wiring maintenance plan charges. The 2005 and 2006 rates are revised. 13 - 5 Table 13.4 Average Revenue per Minute Consumer Average Revenue Per Consumer Average Revenue Per Minute for Interstate and International Calls Price Minute for Interstate and Price Interstate and International Interstate Calls Index International Calls Index International Calls Calls 1/ All Goods Restated All Goods Restated Net of and Services in 2006 and Services in 2006 Access and (1982-1984 Dollars (1982-1984 Dollars Universal = 100) = 100) Service Cost 1930 16.7 $0.27 $3.32 1970 38.8 $0.23 $1.20 $2.43 $0.20 1931 15.2 0.27 3.57 1971 40.5 0.25 1.22 2.35 0.22 1932 13.7 0.26 3.86 1972 41.8 0.24 1.18 2.31 0.21 1933 13.0 0.28 4.27 1973 44.4 0.25 1.15 2.29 0.22 1934 13.4 0.27 4.09 1974 49.3 0.26 1.05 2.25 0.22 1935 13.7 0.27 3.91 1975 53.8 0.27 1.03 2.23 0.24 1936 13.9 0.25 3.64 1976 56.9 0.29 1.01 2.20 0.25 1937 14.4 0.22 3.03 1977 60.6 0.28 0.95 2.18 0.25 1938 14.1 0.21 3.06 1978 65.2 0.29 0.89 2.09 0.25 1939 13.9 0.22 3.13 1979 72.6 0.29 0.81 1.76 0.26 1940 14.0 0.21 3.03 1980 82.4 0.30 0.74 1.34 0.27 1941 14.7 0.21 2.85 1981 90.9 0.33 0.72 1.21 0.31 1942 16.3 0.22 2.67 1982 96.5 0.34 0.71 1.09 0.32 1943 17.3 0.21 2.45 1983 99.6 0.35 0.70 1.09 0.33 1944 17.6 0.22 2.47 1984 103.9 0.32 0.63 1.05 0.30 1945 18.0 0.21 2.38 1985 107.6 0.31 0.58 1.01 0.29 1946 19.5 0.20 2.04 1986 109.6 0.28 0.52 0.97 0.26 1947 22.3 0.19 1.73 1987 113.6 0.25 0.43 0.99 0.22 1948 24.1 0.19 1.56 1988 118.3 0.23 0.40 1.02 0.21 1949 23.8 0.19 1.60 1989 124.0 0.22 0.35 1.02 0.19 1950 24.1 0.19 1.62 1990 130.7 0.20 0.31 1.00 0.17 1951 26.0 0.20 1.56 1991 136.2 0.20 0.29 1.02 0.15 1952 26.5 0.20 1.54 1992 140.3 0.19 0.28 1.01 0.15 $0.09 1953 26.7 0.21 1.57 1993 144.5 0.19 0.27 1.02 0.15 0.09 1954 26.9 0.22 1.67 1994 148.2 0.18 0.24 0.93 0.14 0.08 1955 26.8 0.23 1.73 1995 152.4 0.17 0.22 0.91 0.12 0.07 1956 27.2 0.23 1.73 1996 156.9 0.16 0.21 0.76 0.12 0.08 1957 28.1 0.24 1.71 1997 160.5 0.15 0.18 0.69 0.11 0.06 1958 28.9 0.24 1.67 1998 163.0 0.14 0.18 0.58 0.11 0.08 1959 29.1 0.24 1.68 1999 166.6 0.14 0.17 0.54 0.11 0.08 1960 29.6 0.24 1.64 2000 172.2 0.12 0.14 0.52 0.09 0.06 1961 29.9 0.25 1.68 2001 177.1 0.10 0.11 0.35 0.08 0.06 1962 30.2 0.25 1.69 2002 179.9 0.09 0.10 0.28 0.07 0.05 1963 30.6 0.25 1.64 2003 184.0 0.08 0.09 0.21 0.06 0.05 1964 31.0 0.25 1.62 2004 188.9 0.08 0.09 0.14 0.06 0.05 1965 31.5 0.24 1.53 2005 195.3 0.07 0.07 0.10 0.06 0.05 1966 32.4 0.24 1.51 2006 201.6 0.07 0.07 0.10 0.06 0.04 1967 33.4 0.24 1.46 1968 34.8 0.24 1.37 1969 36.7 0.24 1.32 Note: Data for some prior years have been revised. 1/ Sources: Estimates for 1930 through 1981 are based on information in AT&T's Long Lines Statistics, 1930-1963, 1946-1970, and Starting in 1992, billed revenue per minute for international service differs in Table 6.1 and Table 13.4. Data in Table 6.1 are calculated using all U.S. billed minutes and revenues. Data for Table 13.4 represent charges for most U.S. billed calls that originate or terminate in the United States. International-to-international revenues and reorigination, country-beyond and country-direct minutes are not included in this table. 1960-1981, and appear to represent data for the conterminous U.S. only. Data prior to 1946 may not be comparable. Data for 1982 and 1983 were estimated using BLS price index changes. Data for 1984 through 1991 were supplied by AT&T. Starting with 1992, data are from the Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues . For 1970 through 1991, interstate revenue per minute was estimated using the combined interstate and international revenue per minute estimates shown in the table, and international revenue and revenue perminute data in Table 1 and Table 2 of Trends in the International Telecommunications Industry . 13 - 6 Item 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Revenue per minute $0.115 $0.117 $0.104 $0.098 $0.097 $0.087 $0.094 $0.094 $0.081 $0.076 $0.062 $0.054 $0.052 $0.049 $0.045 retained by carrier Cost to carrier per minute for $0.062 $0.059 $0.058 $0.054 $0.049 $0.044 $0.037 $0.034 $0.026 $0.020 $0.017 $0.016 $0.015 $0.016 $0.015 access and universal service Chart 13.1 Revenue per Minute for Interstate Calls $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Revenue per minute retained by carrier Cost to carrier per minute for access and universal service 13 - 7 14 - 1 14 Residential Wireline Usage Bill Harvestingฎ data collected by TNS Telecoms provides information on actual usage in the residential telecom market as collected from the actual telecommunications bills of households. TNS Telecoms (TNS), a telecommunications market information firm, conducts nationwide surveys and Bill Harvestingฎ on a quarterly basis from over 120,000 households each year. These surveys, in which households are asked to mail copies of their phone bills for one month to TNS, are called Bill Harvesting studies. The company has donated databases containing information on residential phone usage to the Commission. The Bill Harvesting data reflect calls itemized on residential telephone bills for wireline service. Thus, 800 and 800-like calls made from the residence are not included, nor are collect calls made from the residence. In contrast, 800 and 800-like calls received, and shown on the household monthly bill, are included, as are collect calls received. Table 14.1 shows the percentage of residential wireline long distance telephone usage that is intrastate, interstate and international. In 2007, 34% of residential toll phone calls were interstate as opposed to 47% of minutes. Table 14.2 shows the average number of toll minutes on residential phone bills that are intrastate, interstate and international from 1995-2007. Table 14.3 shows the distribution of residential wireline long distance calls by call duration. The average interstate residential call lasts about nine minutes, although about 41% of interstate toll calls last one minute or less. Tables 14.4 and 14.5 show the duration and the average distance (sometimes called length of haul) of residential wireline intrastate and interstate long distance calls, respectively. The average distance of an interstate toll call in 2007 was 763 miles, as opposed to about 54 miles for an intrastate toll call. Table 14.6 shows the percentage of residential wireline long distance minutes by day of week and time of day. Over the past three years, these data indicate that interLATA wireline traffic has been slowly moving to weekdays from nights and weekends. Type 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Calls IntraLATA-Intrastate 41 % 40 % 38 % 38 % 39 % 39 % 42 % 44 % 45 % 44 % 44 % 45 % 44 % InterLATA-Intrastate 19 18 19 19 18 17 18 17 17 17 16 16 16 IntraLATA-Interstate 1111111111111 InterLATA-Interstate 37 35 37 36 37 36 36 34 33 34 35 32 33 International 1111111122222 Others 1 255 4452222233 Total Calls in Sample 197,787 165,465 483,685 578,850 474,408 538,337 456,328 427,781 340,763 312,918 265,194 247,425 208,877 Minutes IntraLATA-Intrastate 28 % 29 % 27 % 27 % 28 % 29 % 30 % 32 % 35 % 32 % 32 % 34 % 33 % InterLATA-Intrastate 18 18 18 18 17 17 18 18 16 17 16 16 16 IntraLATA-Interstate 1111111111111 InterLATA-Interstate 50 47 49 49 49 47 48 46 44 46 46 45 46 International 2111222223333 Others 1 144 3 3 5 1 1 1112 2 Total Minutes in Sample 1,493,674 1,210,675 3,673,315 4,330,888 3,544,905 4,030,643 3,319,982 2,992,644 2,308,266 2,088,773 1,766,565 1,614,546 1,376,557 Note: Figures may not add to totals due to rounding. 1 Toll-free (800, 888, 877, 866) calls billed to residential customers, 900 calls and calls that cannot be classified. Type 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 IntraLATA-Intrastate 40 41 41 40 36 33 32 28 25 18 17 16 14 InterLATA-Intrastate 26 26 27 26 23 19 19 16 12 10 8 8 7 IntraLATA-Interstate 1 1 1 1 1 1 1 1 1 1 0 1 0 InterLATA-Interstate 71 67 73 71 65 55 51 41 31 26 24 22 19 International 3 1 2 2 2 2 2 2 2 2 2 2 1 Others 1 1 6 6 5 4 5 1 1 1 1 0 1 1 All Types 143 143 149 144 131 116 105 90 71 56 51 49 42 Note: Figures may not add to totals due to rounding. 1 Toll-free (800, 888, 877, 866) minutes billed to residential customers, 900 minutes and minutes for calls that cannot be classified. Average Residential Wireline Monthly Toll Minutes Distribution of Residential Wireline Toll Calls and Minutes Table 14.1 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1995 1996 1997 Table 14.2 14 - 3 Duration of Call (Minutes) Intrastate Interstate All Calls 1 49.2 % 41.2 % 46.2 % 2 14.1 11.3 13.0 3 7.3 5.9 6.8 4 4.7 4.0 4.5 5 3.4 3.3 3.3 6 2.5 2.6 2.6 7 2.1 2.3 2.2 8 1.6 2.0 1.8 9 1.4 1.8 1.5 10 1.3 1.9 1.5 11-15 4.3 6.4 5.1 16-20 2.5 4.3 3.2 21-25 1.6 3.1 2.2 26-30 1.1 2.3 1.5 31-45 1.6 3.9 2.5 46-60 0.7 1.8 1.1 > 60 0.7 1.8 1.1 Average Duration 5.3 9.0 6.7 Median Duration 2.0 2.0 2.0 Sample Size 119,551 71,066 190,617 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Table 14.3 Distribution of Residential Wireline Long Distance Call Durations: 1 The sample includes domestic, directly-dialed calls. 2007 1 14 - 4 Duration Distance (In Minutes) (In Miles) Average Median Average Median 1995 6.0 2.0 53.0 26.0 1996 6.0 2.0 55.0 28.0 1997 6.2 2.0 56.0 28.0 1998 6.0 2.0 55.0 29.0 1999 6.0 2.0 54.0 29.0 2000 6.1 2.0 54.0 28.0 2001 5.9 2.0 53.0 29.0 2002 5.6 2.0 52.0 28.0 2003 5.6 2.0 51.0 28.0 2004 5.3 2.0 55.8 29.5 2005 5.4 2.0 54.6 29.2 2006 5.2 2.0 54.6 30.6 2007 5.3 2.0 54.2 30.0 Duration Distance (In Minutes) (In Miles) Average Median Average Median 1995 10.6 4.0 689 507 1996 10.0 4.0 670 473 1997 10.3 4.0 695 480 1998 10.3 4.0 691 493 1999 10.0 3.9 693 501 2000 10.0 4.0 706 524 2001 9.7 3.0 686 501 2002 9.4 3.0 692 489 2003 8.9 3.0 684 481 2004 8.9 2.0 721 525 2005 8.8 2.0 759 568 2006 8.9 2.0 751 575 2007 9.0 2.0 763 594 Duration and Distance of Intrastate Toll Calls 1 Table 14.4 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Direct-dial calls carried by long distance carriers and local exchange carriers. Includes only domestic calls. Table 14.5 Duration and Distance of Interstate Toll Calls 1 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Direct-dial calls carried by long distance carriers and local exchange carriers. Includes only domestic calls. 14 - 5 2007 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 9.6 % 5.2 % 14.9 % Tuesday 9.2 5.0 14.2 Wednesday 9.1 4.9 13.9 Thursday 9.1 4.8 13.9 Friday 9.2 4.2 13.3 Saturday 9.3 4.0 13.3 Sunday 11.3 5.2 16.6 Total 66.8 % 33.2 % 100.0 % Based on a sample of 102,515 directly-dialed, interLATA calls. 2006 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 9.8 % 5.2 % 15.0 % Tuesday 8.7 5.0 13.7 Wednesday 8.4 5.1 13.5 Thursday 8.7 5.0 13.7 Friday 8.7 4.5 13.2 Saturday 9.6 3.7 13.4 Sunday 11.9 5.6 17.6 Total 65.9 % 34.1 % 100.0 % Based on a sample of 118,243 directly-dialed, interLATA calls. 2005 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 8.9 % 5.6 % 14.6 % Tuesday 8.5 5.2 13.6 Wednesday 8.4 5.4 13.8 Thursday 8.7 5.4 14.1 Friday 8.6 4.3 13.0 Saturday 9.6 4.1 13.7 Sunday 11.3 6.0 17.2 Total 64.0 % 36.0 % 100.0 % Based on a sample of 133,257 directly-dialed, interLATA calls. Note: Individual figures may not add to totals due to rounding. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Table 14.6 Distribution of Residential Wireline Long Distance Minutes By Day and Time 14 - 6 15 - 1 15 Revenues In 1993, the Commission required all carriers with interstate revenues to begin filing an annual Telecommunications Relay Service (TRS) Fund Worksheet. Because revenues derived from providing access to the interstate network are considered to be interstate, virtually all carriers were required to file information. Starting in 1997, larger carriers were required to file Universal Service Fund (USF) worksheets, which contain similar information but with breakouts for revenues from service provided for resale and for service provided to end users. End-user revenues include revenues associated with services to end users and do not include resale (carrier’s carrier) revenues. Carrier's carrier revenues are sales of telecommunications to universal service contributors for resale in the form of telecommunications. Filers report all other revenues as end-user revenues. 1 On April 1, 2000, carriers first filed an FCC Form 499-A Telecommunications Reporting Worksheet to report prior year revenue data for TRS, USF, North American Numbering Planning Administration, and local number portability contribution purposes. The FCC Form 499-A superseded the older reporting requirements and is now filed to satisfy carrier registration requirements at the Commission as well. Table 15.1 shows the major components of telecommunications revenues from 1997 to the present: carrier’s carrier revenues and end-user revenues for local, wireless, and toll service. Chart 15.1 shows the trend of the end-user revenue percentages for local, wireless and toll services. Table 15.2 shows how revenues by type of service have changed over time. Table 15.3 shows the number of telecommunications service providers by principal type of business. The publication Telecommunications Provider Locator (September 2007 edition) lists carriers that filed a FCC Form 499-A worksheet in 2006. It also contains an address and contact telephone number for each carrier. Table 15.4 contains revenues for eleven years through 2006 by type of carrier. Additional revenue detail can be found in the latest Telecommunications Industry Revenues report (June 2007 edition). State-level telephone revenues are estimated using data from various editions of Telecommunications Industry Revenues, Statistics of Communications Common Carriers, Local Telephone Competition, and access filings to the FCC. 2 The carriers also file 1 Carrier's carrier revenues and end-user revenues are defined in the FCC Form 499 instructions. Carrier's carrier revenues includes, for example, most access services that local exchange carriers provide to toll carriers. Sales to de minimis carriers and to others that are exempt from universal service contribution requirements, however, must be classified as end-user revenues. Filers contribute to the universal service funding mechanism based on types of end-user revenues. 2 See Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (various issues), Industry Analysis Division, Common Carrier Bureau, State-by-State Telephone Revenues and Universal Service Data (various issues). Estimates for 2004 use a similar methodology as those used in 2003. 15 - 2 quarterly data reported on form 499Q. Table 15.5 provides estimates of telecommunications revenues by state for 1996 to 2005. Table 15.6 provides estimates of end-user and carrier’s carrier revenues by state for 2005. Table 15.7 provides estimates of telecommunications revenues for incumbent local exchange carriers, competitive local exchange carriers, and mobile wireless carriers by state; as well as estimates for subscriber line charges, access, and toll services. Table 15.1 Telecommunications Industry Revenues 1 (Dollar Amounts Shown in Millions) Preliminary 5/ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 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 $39,392 $40,293 Wireless Service 2,752 3,060 4,652 5,144 6,180 5,020 4,465 4,164 6,334 5,187 6,712 Toll Service 11,598 13,448 14,934 21,849 19,999 16,476 18,205 15,703 16,892 15,101 15,089 Intrastate 16,201 18,892 22,293 25,553 27,848 25,770 24,825 25,852 27,486 24,848 25,854 Interstate and International 4 26,562 27,114 30,449 38,060 38,439 34,138 35,587 32,561 34,953 34,831 36,240 Total 42,639 45,882 52,742 63,613 66,287 59,907 60,412 58,413 62,439 59,679 62,094 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 78,215 78,207 Wireless Service 30,199 33,714 43,843 56,857 68,507 76,501 85,254 94,404 100,743 110,096 117,128 Toll Service 89,193 91,607 93,311 87,767 79,302 67,222 58,983 55,511 52,358 49,278 42,758 Intrastate 117,454 123,216 134,919 147,465 155,347 154,815 150,889 153,265 154,310 157,653 158,240 Interstate and International 4 70,952 77,170 80,844 81,685 80,165 77,619 79,822 80,057 81,173 79,937 79,854 Total 188,406 200,386 215,763 229,149 235,513 232,434 230,711 233,322 235,482 237,589 238,093 Total Revenues Local Service 3 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 118,500 Wireless Service 32,951 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 123,841 Toll Service 100,791 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 57,847 Intrastate 133,655 142,108 157,212 173,018 183,195 180,585 175,714 179,117 181,796 182,501 184,093 Interstate and International 4 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,617 116,125 114,768 116,094 Total $231,168 $246,392 $268,505 $292,762 $301,800 $292,341 $291,123 $291,734 $297,921 $297,268 $300,188 Note: Detail may not add to totals due to rounding. 1 Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements. 2 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. 4 Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table, but are not included in the 5 Preliminary 2007 data are based on FCC Form 499-Q quarterly filings. 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 2007 are based on type of filer rather than on data filed by service. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues , except as noted. End-User Telecommunications Revenues universal service contribution base. 3 Payphone revenues are included with local service revenues in this table. Chart 15.1 1997 Toll Service 47.3% Wireless Service 16.0% Local Service 36.7% 2007 Toll Service 18.0% Local Service 32.8% Wireless Service 49.2% 15 - 3 Table 15.2 Telecommunications Revenues Reported by Type of Service (Dollar Amounts Shown in Millions) TRS Universal Service & FCC Form 499-A Data TRS Data Data Telecommunications Revenues 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Local Exchange $48,717 $53,771 $59,245 $64,940 $69,947 $72,346 $71,320 $70,606 $68,238 $66,506 $63,264 Pay Telephone 1/ 2,182 2,536 2,218 1,932 1,585 1,192 1,063 1,002 924 659 Local Private Line 2/ 1,616 8,282 10,403 12,914 16,864 21,966 23,070 22,415 23,840 25,673 25,448 Other Local 3/ 2,674 2,847 2,179 2,501 3,249 3,391 3,418 3,242 2,944 3,331 3,884 Subscriber Line Charges 2/ 7,829 8,327 11,052 10,826 11,563 12,127 12,758 12,136 11,715 11,113 10,827 Access 2/ 27,812 21,423 18,449 18,105 17,017 15,096 13,955 12,972 12,352 11,822 11,392 Universal Service Surcharges on Local Service Bills 4/ 103 260 575 1,301 1,410 1,783 1,862 2,227 2,133 Additional Revenues from TRS Worksheets 595 595 Total Local Service Revenues 88,647 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 Wireless Service 23,444 32,760 36,240 48,117 61,505 74,006 80,678 88,023 96,450 104,489 112,442 Universal Service Surcharges on Local Service Bills 4/ 345 379 495 681 842 1,696 2,118 2,587 2,841 Additional Revenues from TRS Worksheets 189 189 Total Wireless Service Revenues 23,444 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 Operator 1/ 10,975 12,002 12,205 10,049 11,406 10,389 7,902 6,567 6,542 6,631 5,577 Non-Operator Switched Toll 73,751 72,059 74,168 78,389 75,183 65,325 54,475 50,178 46,387 44,876 41,570 Long Distance Private Line 10,665 10,504 11,952 13,169 16,189 16,402 15,108 15,316 13,906 13,264 12,739 Other Long Distance 4,299 4,695 3,386 3,656 3,372 3,259 2,445 2,222 1,801 2,021 2,154 Universal Service Surcharges on Local Service Bills 4/ 1,810 2,983 3,467 3,927 3,767 2,905 2,577 2,458 2,340 Additional Revenues from TRS Worksheets 1,532 1,532 Total Toll Service Revenues 99,691 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 Total Telecommunications Revenues 3/ 211,782 231,168 246,392 268,505 292,762 301,799 292,341 291,122 291,735 297,921 297,269 Non-Telecommunications Revenues 3/ 10,474 25,633 27,944 33,144 42,261 48,036 60,406 65,186 71,493 86,764 101,061 Total Reported Revenues 222,256 256,801 272,019 301,648 335,023 349,835 352,747 356,308 363,227 384,685 398,329 Service Reported as: Intrastate 3/ 127,849 133,654 142,108 157,212 173,018 183,195 180,585 175,714 179,129 181,796 182,501 Interstate and International 94,407 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,605 116,125 114,768 Total Telecommunications Revenues 3/ $222,256 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 Note: Detail may not add to totals due to rounding. 1/ 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. 2/ 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. For the years 1994 - 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. 3/ 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 revenues. These amounts have been removed from Other Local and moved to the Non-Telecommunications category. 4/ 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. 15 - 4 Table 15.3 Number of Interstate Telecommunications Providers By Principal Type of Business Service Provider Category 1/ 2/ 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Incumbent Local Exchange Carriers (ILECs) 3/ 1,376 1,410 1,348 1,318 1,335 1,335 1,310 1,303 1,304 1,303 1,311 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 94 129 212 298 479 511 451 601 690 734 985 Local Resellers 8 11 54 73 105 132 100 100 136 122 186 Interconnected VoIP Providers 251 Other Local Exchange Carriers 17 7 10 23 23 26 64 72 92 187 212 Total: Competitors of ILECs 119 147 276 394 607 669 615 773 918 1,043 1,634 Total: Fixed Local Service Providers 4/ 1,495 1,557 1,624 1,712 1,942 2,004 1,925 2,076 2,222 2,346 2,945 Payphone Providers 533 509 615 704 699 751 606 605 642 576 595 Wireless Telephony Including Cellular, Personal Communications Service (PCS) and SMR Telephony Carriers 853 732 808 784 783 670 422 413 396 402 467 Paging & Messaging Service 200 137 303 391 425 425 346 347 360 300 315 Specialized Mobile Radio (SMR) Dispatch 163 99 119 199 191 182 138 155 172 155 179 Wireless Data Service Providers and 1 1 28 45 31 29 21 24 35 48 84 Other Mobile Service Providers Total: Wireless Service Providers 1,217 969 1,258 1,419 1,430 1,306 927 939 963 905 1,045 Interexchange Carriers (IXCs) 149 151 171 178 212 233 229 232 257 262 361 Operator Service Providers (OSPs) 27 32 24 15 20 19 18 17 19 23 29 Prepaid Calling Card Providers 16 18 20 18 23 27 27 50 67 69 154 Satellite Service Carriers 22 13 13 17 25 34 33 40 40 40 43 Toll Resellers 345 340 388 406 493 558 574 642 751 721 923 Other Toll Carriers 28 15 31 17 35 69 51 45 70 63 127 587 569 647 651 808 940 932 1,026 1,204 1,178 1,637 All Filers 3,832 3,604 4,144 4,486 4,879 5,001 4,390 4,646 5,031 5,005 6,222 1/ 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 TRS worksheets because that worksheet did not contain a separate category for satellite satellite service providers. Starting with the filings that included 2003 revenues, filers were able to identify up to five service provider types. Counts starting 2003 are based on the category selected as best describing the provider's operations. 2/ Counts are based on the numbers of filers actually reporting revenues. Counts dropped in 2002 because many affiliated filers 3/ Fewer incumbent local exchange carriers filed in 1998 than in 1997 because of consolidation of study areas. 4/ The total number of local service providers shown in Table 8.7 differs from the total fixed local service providers shown in Table 15.3 because the number shown in Table 8.7 includes filers that self identify as mobile or toll providers, but that report some local exchange service revenues. The number of telecommunications providers shown in Table 15.3 also differs from the numbers shown in Table 5.3 because Table 5.3 includes all filers, including new filers that reported no revenues for the year shown. Private telecommunications providers are included with other local competitors in this table. Total: Toll Service Providers available at http://www.fcc.gov/wcb/stats. Source: Data filed on FCC Forms 431, 457, and 499-A worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues and Telecommunications Provider Locator, were permitted to make consolidated filings. 15 - 5 Table 15.4 Gross Revenues Reported by Type of Carrier (Dollars Shown in Millions) TRS Universal FCC Form 499 Data Data Service & TRS Data Service Provider Category 1/ 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Incumbent Local Exchange Carriers 2/ $100,021 $105,154 $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 $105,496 $103,561 $99,997 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 1,011 1,919 3,348 5,652 9,814 12,998 13,043 15,509 15,112 16,930 17,276 Interconnected VoIP 514 Local Resellers 206 410 511 879 1,393 1,538 721 1,215 630 460 Other Local Exchange Carriers 157 36 171 11 329 406 338 245 216 124 Private Carriers 112 147 87 39 15 281 267 532 770 1,080 Shared-Tenant Service Providers 87 93 87 202 46 42 22 22 22 19 Total: Competitors of ILECs 1,011 2,481 4,034 6,508 10,945 14,781 15,309 16,857 17,126 18,568 19,473 Total: Fixed Local Service Providers 101,032 107,634 112,268 118,725 127,103 132,666 130,300 126,337 122,622 122,128 119,470 Total: Payphone Providers 357 933 1,101 1,213 972 836 641 523 445 481 435 Wireless Telephony Including Cellular, 21,400 29,944 33,139 46,513 59,823 71,887 78,568 88,168 98,329 107,834 116,971 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 1,007 872 579 555 Specialized Mobile Radio (SMR) 186 191 214 206 33 46 226 48 Dispatch Wireless Data Service Providers and 1,909 225 731 221 164 110 220 135 218 169 178 Other Mobile Service Providers Total: Wireless Service Providers 23,310 33,030 37,032 50,152 63,280 74,596 80,467 89,342 99,465 108,809 117,752 Interexchange Carriers (IXCs) 79,057 79,080 83,443 87,570 87,311 81,272 68,146 61,246 51,589 46,856 44,083 Operator Service Providers (OSPs) 461 603 590 337 635 611 554 567 523 548 631 Prepaid Calling Card Providers 238 519 888 866 727 133 460 812 1,635 1,828 1,713 Satellite Service Carriers 1,011 475 280 336 373 406 663 721 714 444 Toll Resellers 6,564 8,010 9,885 9,211 10,641 8,797 9,279 9,294 12,192 13,362 9,943 Other Toll Carriers 577 348 710 150 1,758 2,516 2,089 2,339 2,543 3,195 2,798 Total: Toll Service Providers 86,896 89,570 95,992 98,414 101,407 93,702 80,934 74,920 69,204 66,503 59,611 1870000000 000 $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $295,742 1/ 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 Form 431 TRS worksheets because that worksheet did not contain a separate category for satellite service providers. For 2003 and 2004, some filers identified themselves as all distance carriers. These filers have been reclassified to be consistent with prior classifications. 2/ Significant amounts of enhanced service, billing and collection, CPE and other non-telecommunications revenues were reported on TRS worksheets by incumbent local exchange carriers (ILECs) and wireless carriers 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 revenues. These amounts have been removed from incumbent local exchange carrier totals. 3/ Adjustments include some amounts withheld to preserve confidentiality and revisions made after the initial publication of the data. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues . Adjustments 3/ Total Telecommunications Revenues 15 - 6 Alabama $2,946 $3,205 $3,394 $3,712 $4,008 $4,314 $4,052 $4,196 $4,318 $4,587 Alaska 518 561 590 664 717 770 778 816 823 831 American Samoa NA NA NA NA NA 13 13 13 15 17 Arizona 3,249 3,667 3,958 4,359 4,972 5,205 5,045 4,898 4,974 5,127 Arkansas 1,719 1,885 2,005 2,303 2,315 2,593 2,486 2,470 2,592 2,709 California 25,100 27,236 28,692 29,384 33,577 35,398 34,838 34,098 34,303 35,042 Colorado 3,526 4,006 4,260 4,826 5,290 5,515 5,308 5,013 4,984 5,013 Connecticut 2,943 3,266 3,173 3,405 3,924 4,020 3,854 3,884 3,821 3,929 Delaware 567 627 685 788 875 883 877 874 946 1,014 District of Columbia 955 1,049 1,085 1,581 1,648 1,383 1,343 1,337 1,296 1,397 Florida 12,972 14,161 15,042 17,223 18,308 18,849 18,223 18,613 20,003 19,918 Georgia 6,004 6,849 7,469 8,479 8,919 9,627 9,371 9,433 9,415 9,657 Guam 85 97 103 99 108 122 119 123 130 143 Hawaii 841 930 969 1,009 1,177 1,207 1,200 1,212 1,196 1,229 Idaho 908 967 1,010 1,092 1,210 1,245 1,244 1,237 1,223 1,300 Illinois 8,920 10,069 10,948 11,983 13,516 12,860 12,110 11,928 11,809 12,113 Indiana 4,192 4,536 4,810 5,099 5,552 5,524 5,385 5,292 5,298 5,389 Iowa 2,039 2,163 2,268 2,441 2,340 2,652 2,549 2,711 2,559 2,630 Kansas 2,017 2,165 2,304 2,588 2,571 2,656 2,479 2,473 2,436 2,488 Kentucky 2,629 2,861 3,060 3,426 3,573 3,665 3,301 3,307 3,634 3,856 Louisiana 2,946 3,192 3,432 3,913 3,964 4,274 4,185 4,232 4,278 4,430 Maine 976 996 1,105 1,195 1,328 1,387 1,365 1,359 1,353 1,425 Maryland 4,234 4,625 4,911 5,176 5,783 6,202 6,033 6,073 6,163 6,441 Massachusetts 5,455 6,010 6,338 6,561 7,428 7,367 7,121 6,983 6,897 6,962 Michigan 7,246 7,983 8,523 9,530 9,937 9,889 9,450 9,352 8,897 9,089 Minnesota 3,461 3,864 4,115 4,617 4,877 4,934 4,772 4,682 4,578 4,629 Mississippi 1,734 1,877 2,017 2,283 2,486 2,633 2,578 2,676 2,768 2,834 Missouri 4,017 4,389 4,613 5,442 5,688 6,067 5,436 5,676 5,522 5,750 Montana 709 756 780 897 937 903 907 911 897 912 Nebraska 1,428 1,540 1,587 1,737 1,760 1,865 1,796 1,799 1,744 1,749 Nevada 1,324 1,489 1,592 1,884 1,954 2,160 2,163 2,267 2,348 2,407 New Hampshire 1,118 1,208 1,246 1,313 1,429 1,419 1,399 1,373 1,362 1,474 New Jersey 7,927 8,707 9,366 9,558 10,670 10,689 10,251 10,054 10,258 10,493 New Mexico 1,262 1,370 1,433 1,518 1,515 1,656 1,631 1,706 1,767 1,775 New York 16,026 17,120 17,935 19,700 20,903 21,771 21,148 20,660 19,593 19,724 North Carolina 6,104 6,613 7,297 8,006 8,619 8,811 8,368 8,321 8,482 8,558 North Dakota 587 596 599 660 731 699 678 641 630 645 Northern Mariana Islands 18 21 30 34 32 43 46 44 44 45 Ohio 8,219 8,823 9,396 9,952 10,902 10,708 10,351 10,419 10,489 10,736 Oklahoma 2,179 2,410 2,552 2,727 2,915 3,116 3,100 3,210 3,169 3,185 Oregon 2,502 2,720 2,905 3,123 3,159 3,480 3,381 3,337 3,356 3,292 Pennsylvania 8,867 9,588 10,309 10,770 12,200 12,578 12,274 12,087 12,063 12,166 Puerto Rico 1,405 1,606 1,467 2,051 1,971 2,598 2,168 2,456 2,354 2,537 Rhode Island 761 839 859 946 1,012 989 978 965 980 963 South Carolina 2,849 3,053 3,393 3,790 4,047 4,147 4,142 4,187 4,124 4,306 South Dakota 584 602 635 716 763 712 690 668 667 712 Tennessee 3,880 4,302 4,553 4,928 5,256 5,574 5,409 5,466 5,442 5,738 Texas 14,563 15,943 17,576 19,032 21,405 21,617 21,549 21,508 21,610 22,162 Utah 1,284 1,443 1,557 1,790 1,998 2,090 2,016 1,986 2,003 2,062 Vermont 547 575 602 684 717 659 640 629 590 663 Virgin Islands 93 101 109 122 129 145 157 172 190 214 Virginia 5,646 6,179 6,576 7,020 8,013 8,506 8,174 8,107 8,074 8,134 Washington 4,438 4,613 5,080 5,703 6,253 6,260 6,215 6,090 6,172 6,005 West Virginia 1,240 1,337 1,383 1,437 1,625 1,735 1,671 1,674 1,707 1,732 Wisconsin 3,621 3,927 4,234 4,719 5,195 5,027 4,976 4,859 4,821 5,000 Wyoming 402 449 462 513 563 587 552 567 567 584 Total $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 NA - Not Available. Note: Figures may not add to totals due to rounding. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (various issues) and Industry Analysis Division, Common Carrier Bureau, State-by-State Telephone Revenue and Universal Service Data (various issues). 19991996 1997 1998 2000 2001 2002 2005 Table 15.5 Total Telecommunications Revenues by State (Dollar Amounts Shown in Millions) 2003 2004 15 - 7 Table 15.6 Telecommunications Revenues by State: 2005 (Dollar Amounts Shown 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 District 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 to totals due to rounding. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (December 2007). 15 - 8 Table 15.7 Telecommunications Revenues by Type of Service: 2005 (Dollar Amounts Shown in Millions) Alabama $1,268 $214 $1,583 $186 $367 $969 $4,587 Alaska NA NA NA NA NA NA 831 American Samoa NA NA NA NA NA NA 17 Arizona 958 471 1,975 211 467 1,046 5,127 Arkansas 642 99 936 95 257 680 2,709 California 7,015 2,194 13,693 1,153 3,480 7,508 35,042 Colorado 1,215 270 1,700 230 531 1,067 5,013 Connecticut 903 172 1,298 156 325 1,074 3,929 Delaware 204 66 396 42 85 221 1,014 District of Columbia 411 121 416 39 155 255 1,397 Florida 4,534 950 7,002 874 1,983 4,575 19,918 Georgia 2,549 562 3,353 362 956 1,875 9,657 Guam NA NA NA NA NA NA 143 Hawaii 297 21 521 65 113 212 1,229 Idaho 286 42 433 61 155 324 1,300 Illinois 2,566 872 4,774 415 891 2,595 12,113 Indiana 1,314 269 1,824 257 445 1,279 5,389 Iowa 572 118 887 104 309 640 2,630 Kansas 575 197 857 83 228 549 2,488 Kentucky 1,032 165 1,389 160 324 786 3,856 Louisiana 1,141 250 1,669 169 316 885 4,430 Maine 361 92 437 54 116 364 1,425 Maryland 1,411 390 2,326 243 550 1,521 6,441 Massachusetts 1,447 593 2,403 275 556 1,689 6,962 Michigan 1,924 807 3,473 335 720 1,830 9,089 Minnesota 1,014 350 1,739 176 459 891 4,629 Mississippi 884 95 906 102 192 655 2,834 Missouri 1,346 246 1,939 225 664 1,330 5,750 Montana 222 24 260 49 105 251 912 Nebraska 402 124 601 52 224 345 1,749 Nevada 508 101 894 82 184 638 2,407 New Hampshire 271 119 510 58 125 392 1,474 New Jersey 1,840 756 4,047 409 997 2,444 10,493 New Mexico 426 41 571 100 213 424 1,775 New York 4,733 1,946 6,625 696 1,775 3,950 19,724 North Carolina 2,091 341 3,060 373 781 1,911 8,558 North Dakota 145 37 216 24 84 139 645 N. Mariana Islands NA NA NA NA NA NA 45 Ohio 2,679 534 3,928 413 932 2,249 10,736 Oklahoma 776 179 1,114 120 295 702 3,185 Oregon 724 142 1,185 152 346 743 3,292 Pennsylvania 2,425 1,022 4,086 535 1,247 2,850 12,166 Puerto Rico 593 91 1,115 101 160 476 2,537 Rhode Island 169 146 364 31 60 193 963 South Carolina 1,187 158 1,443 177 371 971 4,306 South Dakota 139 70 242 26 83 152 712 Tennessee 1,502 293 2,110 243 414 1,176 5,738 Texas 5,761 1,270 8,018 751 2,123 4,240 22,162 Utah 390 153 788 83 218 431 2,062 Vermont 170 33 165 32 60 203 663 Virgin Islands NA NA NA NA NA NA 214 Virginia 1,651 576 2,728 329 865 1,984 8,134 Washington 1,209 275 2,224 262 673 1,362 6,005 West Virginia 476 64 457 83 156 496 1,732 Wisconsin 1,150 351 1,776 204 409 1,110 5,000 Wyoming 135 17 184 27 72 150 584 Total 3 $67,893 $18,568 $107,056 $11,544 $27,747 $65,108 $297,921 NA - Not Applicable. Note: Figures may not add to totals due to rounding. 1 Excludes subscriber line charges. 2 Includes ILECs' USF pass-thru charges. 3 Totals in the first six columns include revenues for locations not estimated. Access Toll Total Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (December 2007). ILECs 1 CLECs Mobile Wireless SLCs 2 15 - 9 16 - 1 16 Subscribership Under contract with the FCC, the U.S. Census Bureau includes questions on telephones as part of its Current Population Survey (CPS). This survey, which monitors demographic trends between the decennial censuses, has several strengths: it is conducted regularly by an expert agency, the sample is very large, and the questions are consistent. Thus, changes in the results can be compared over time with a great deal of confidence. Almost twenty-nine million households have been added to the nation's telephone system since these surveys began in November 1983, reflecting both an increase in the total number of households and a small, but statistically significant, increase in the percentage of households that subscribe to telephone service. Because of smaller sample sizes, state-by-state data, shown in Table 16.3, are subject to greater sampling errors than the national data shown in Table 16.1. These two tables are based on the Census Bureau’s Current Population Survey. Additional information can be found in the Telephone Penetration and Telephone Subscribership reports available on the Internet on the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/stats. Historical estimates for the United States, using the decennial census population counts, are shown in Table 16.2. Prior to 1980, historical estimates of telephone penetration were based on a comparison of the number of residential main stations to the number of households. These estimates became less reliable at that point because of the emergence of an increasing number of households with multiple phone lines. In the 1980 decennial census, the question "Do you have a telephone?" was added to the long-form questionnaire. The 1980 and 1990 percentages in Table 16.2 are based on those responses. In the 2000 decennial census, the question was changed to “Is there telephone service available in this [housing unit] from which you can both make and receive calls?” The question was changed in 2000 to avoid the possible bias from having a phone but no service. With the telephone companies no longer owning the telephone instruments beginning in 1984, it is possible for someone to have a telephone but not have service. The question also allows for the possibility of the substitution of wireless service for wireline service. Beginning in 2001 the Census Bureau introduced the American Community Survey (ACS), which was designed to replace the long form of the decennial census, and Table 16.2 includes data from that survey as well. Table 16.2 also documents the per capita changes in wireline phone lines and wireless subscribers over time. The decennial census percentages in 1990 and 2000 and the ACS percentages for 2001 to 2006 reported in Table 16.2 are higher than the CPS percentage reported in Table 16.1. We believe that these differences are due to factors such as the slight differences in the questions and the contexts in which they are asked, as well as the fact that the CPS uses households as the basis of measurement, while the census and the ACS use occupied housing units instead. Further information from the ACS is shown in Tables 16.4 and 16.5. Table 16.4 shows state data and Table 16.5 shows other characteristics including housing unit tenure, age of the householder, and race and ethnicity of the householder. Table 16.1 Household Telephone Subscribership in the United States Households Percentage Households Percentage Households with with without without (Millions) Telephones Telephones Telephones Telephones (Millions) (Millions) 1983 November 85.8 78.4 91.4 % 7.4 8.6 % 1984 March 86.0 78.9 91.8 7.1 8.2 July 86.6 79.3 91.6 7.3 8.4 November 87.4 79.9 91.4 7.5 8.6 1985 March 87.4 80.2 91.8 7.2 8.2 July 88.2 81.0 91.8 7.2 8.2 November 88.8 81.6 91.9 7.2 8.1 1986 March 89.0 82.1 92.2 6.9 7.8 July 89.5 82.5 92.2 7.0 7.8 November 89.9 83.1 92.4 6.8 7.6 1987 March 90.2 83.4 92.5 6.8 7.5 July 90.7 83.7 92.3 7.0 7.7 November 91.3 84.3 92.3 7.0 7.7 1988 March 91.8 85.3 92.9 6.5 7.1 July 92.4 85.7 92.8 6.7 7.2 November 92.6 85.7 92.5 6.9 7.5 1989 March 93.6 87.0 93.0 6.6 7.0 July 93.8 87.5 93.3 6.3 6.7 November 93.9 87.3 93.0 6.6 7.0 1990 March 94.2 87.9 93.3 6.3 6.7 July 94.8 88.4 93.3 6.4 6.7 November 94.7 88.4 93.3 6.3 6.7 1991 March 95.3 89.2 93.6 6.1 6.4 July 95.5 89.1 93.3 6.4 6.7 November 95.7 89.4 93.4 6.3 6.6 1992 March 96.6 90.7 93.9 5.9 6.1 July 96.6 90.6 93.8 6.0 6.2 November 97.0 91.0 93.8 6.0 6.2 1993 March 97.3 91.6 94.2 5.7 5.8 July 97.9 92.2 94.2 5.7 5.8 November 98.8 93.0 94.2 5.8 5.8 1994 March 98.1 92.1 93.9 6.0 6.1 July 98.6 92.4 93.7 6.2 6.3 November 99.8 93.7 93.8 6.2 6.2 1995 March 99.9 93.8 93.9 6.1 6.1 July 100.0 94.0 94.0 6.0 6.0 November 100.4 94.2 93.9 6.2 6.1 1996 March 100.6 94.4 93.8 6.2 6.2 July 101.2 95.0 93.9 6.1 6.1 November 101.3 95.1 93.9 6.2 6.1 1997 March 102.0 95.8 93.9 6.2 6.1 July 102.3 96.1 93.9 6.2 6.1 November 102.8 96.5 93.8 6.3 6.2 1998 March 103.4 97.4 94.1 6.1 5.9 July 103.4 97.3 94.1 6.1 5.9 November 104.1 98.0 94.2 6.1 5.8 1999 March 104.8 98.5 94.0 6.3 6.0 July 105.1 99.2 94.4 5.9 5.6 November 105.4 99.1 94.1 6.3 5.9 2000 March 105.3 99.6 94.6 5.7 5.4 July 105.8 99.8 94.4 5.9 5.6 November 106.5 100.2 94.1 6.3 5.9 2001 March 107.0 101.1 94.6 5.8 5.4 July 106.9 101.7 95.1 5.2 4.9 November 107.7 102.2 94.9 5.5 5.1 2002 March 108.3 103.4 95.5 4.8 4.5 July 108.5 103.2 95.1 5.3 4.9 November 109.0 104.0 95.3 5.1 4.7 2003 March 112.1 107.1 95.5 5.0 4.5 July 112.1 106.8 95.2 5.3 4.8 November 113.1 107.1 94.7 6.0 5.3 2004 March 112.9 106.4 94.2 6.5 5.8 July 113.5 106.5 93.8 7.1 6.2 November 113.8 106.4 93.5 7.4 6.5 2005 March 114.5 105.8 92.4 8.7 7.6 July 114.4 107.5 94.0 6.8 6.0 November 115.2 107.0 92.9 8.2 7.1 2006 March 115.5 107.2 92.8 8.4 7.2 July 116.2 109.9 94.6 6.3 5.4 November 116.4 108.8 93.4 7.6 6.6 2007 March 117.1 110.8 94.6 6.4 5.4 July 117.7 111.7 95.0 5.9 5.0 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telephone Subscribership in the United States (February 2008). Based on data from the Census Bureau's Current Population Survey. 16 - 3 Percentage of Telephone Wireless Housing Units Wire Lines per Subscribers per Year with Telephones 100 Population 100 Population 1920 % 1930 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 Sources: Percentage data for 1920 to 1970 from the U.S. Census Bureau, Historical Statistics of the United States, Colonial Times to 1970, Part 2, page 783. Percentage data for 1980 to 2000 from the decennial censuses. Percentage data for 2001 to 2006 from the Census Bureau's American Community Survey. Telephone line data for 1920 through 1970 are estimated by multiplying the number of telephones by the proportion of main plus equivalent main stations to total telephones for the Bell System. Prior to 1950, the 1950 proportion is used. For 1980 and 1990, ILEC local loops are used (see Table 7.1). For 2000 to 2006, June ILEC and CLEC lines are used from Industry Analysis and Technology Division, Wireline Competition Bureau Bureau, Local Telephone Competition: Status as of December 31, 2006 (December 2007). June wireless subscribers reported by CTIA are from Table 11.1. For 1920 to 2000 the population from the decennial census is used. For 2001 to 2006 Census Bureau population estimates for July 1 are used. 57.6 73.4 60.1 65.7 Table 16.2 Historical Telephone Penetration Estimates 54.7 97.6 1.8 34.5 94.8 12.7 21.7 9.6 96.9 96.6 96.2 63.8 61.4 41.5 46.7 51.0 57.8 78.3 90.5 92.9 67.9 27.6 35.0 45.1 12.5 94.1 35.0 40.9 36.9 61.8 95.7 94.8 67.4 65.6 16 - 4 State Alabama 88.4 % 90.4 % 1.9 % Alaska 86.5 95.7 9.1 * Arizona 86.9 92.5 5.6 * Arkansas 86.6 90.0 3.4 * California 92.5 95.6 3.2 * Colorado 93.2 94.7 1.5 * Connecticut 95.5 95.2 -0.3 Delaware 94.3 93.5 -0.8 District of Columbia 94.9 91.2 -3.7 # Florida 88.7 92.7 4.0 * Georgia 86.2 90.5 4.3 * Hawaii 93.5 95.5 2.0 * Idaho 90.7 95.5 4.8 * Illinois 94.2 90.8 -3.4 # Indiana 91.6 89.3 -2.3 # Iowa 96.2 96.1 -0.1 Kansas 94.3 94.3 0.0 Kentucky 88.1 91.3 3.1 * Louisiana 89.7 93.9 4.2 * Maine 93.4 96.3 2.9 * Maryland 95.7 95.4 -0.3 Massachusetts 95.9 95.3 -0.6 Michigan 92.8 94.2 1.3 * Minnesota 95.8 97.6 1.8 * Mississippi 82.4 90.5 8.1 * Missouri 91.5 94.9 3.4 * Montana 91.0 93.3 2.3 * Nebraska 95.7 93.5 -2.2 # Nevada 90.4 93.0 2.6 * New Hampshire 94.3 96.4 2.1 * New Jersey 94.8 94.9 0.1 New Mexico 82.0 88.5 6.5 * New York 91.8 91.6 -0.1 North Carolina 88.3 93.3 5.0 * North Dakota 94.6 96.5 1.9 * Ohio 92.4 94.7 2.2 * Oklahoma 90.3 92.2 2.0 Oregon 90.6 96.7 6.0 * Pennsylvania 94.9 96.3 1.4 * Rhode Island 93.6 94.4 0.8 South Carolina 83.7 92.5 8.8 * South Dakota 93.2 96.4 3.2 * Tennessee 88.5 92.5 4.0 * Texas 88.4 91.5 3.1 * Utah 92.5 96.6 4.0 * Vermont 92.3 96.0 3.7 * Virginia 93.1 94.1 1.1 Washington 93.0 96.9 3.9 * West Virginia 87.7 93.0 5.3 * Wisconsin 95.2 95.6 0.4 Wyoming 89.9 96.1 6.2 * Total United States 91.6 % 93.6 % 2.0 % * Note: Differences may not appear to equal changes due to rounding. * Increase is statistically significant at the 95% confidence level. # Decrease is statistically significant at the 95% confidence level. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Universal Service Monitoring Report (December 2007). Based on data from the Census Bureau's Current Population Survey. 16 - 5 20061984 Table 16.3 Telephone Penetration by State (Annual Average Percentage of Households with Telephone Service) Change State Alabama 95.2 % 95.3 % 95.1 % 94.5 % 93.3 % 92.6 % Alaska 96.6 97.9 96.7 97.6 96.6 96.3 Arizona 95.8 95.6 95.0 95.2 93.1 93.6 Arkansas 94.7 94.3 92.5 91.0 90.9 90.3 California 98.0 98.3 98.3 97.9 97.0 96.6 Colorado 98.5 97.4 97.0 96.5 95.1 94.6 Connecticut 98.8 98.7 98.2 98.3 97.3 96.5 Delaware 98.2 98.2 97.7 97.9 97.5 97.0 District of Columbia 97.1 97.5 96.9 96.1 95.2 94.5 Florida 97.0 96.6 96.3 95.5 94.0 92.4 Georgia 95.6 95.5 95.0 94.1 92.9 90.9 Hawaii 97.9 97.0 96.3 95.2 95.6 95.7 Idaho 96.2 97.4 96.3 95.7 96.2 94.2 Illinois 95.9 95.7 95.4 94.7 94.4 93.7 Indiana 95.4 94.7 93.7 93.4 94.4 93.4 Iowa 97.6 97.4 96.6 95.6 96.0 94.9 Kansas 96.9 96.3 95.8 95.7 93.6 92.7 Kentucky 96.0 94.8 95.0 93.3 92.0 91.9 Louisiana 95.3 95.4 94.7 92.9 92.9 91.6 Maine 98.8 98.2 98.4 97.7 96.6 95.7 Maryland 97.7 97.5 97.5 97.0 95.8 95.3 Massachusetts 98.5 98.6 98.5 97.9 96.2 95.5 Michigan 96.4 95.5 95.1 94.4 93.4 92.1 Minnesota 98.7 98.2 98.5 97.4 96.7 95.8 Mississippi 93.3 93.4 92.8 91.4 89.6 88.4 Missouri 96.6 96.7 96.3 96.1 95.4 93.6 Montana 97.1 96.9 96.5 95.1 95.0 93.6 Nebraska 97.2 96.4 95.6 94.8 95.5 94.4 Nevada 95.2 95.3 94.4 95.2 95.9 94.6 New Hampshire 98.7 98.5 98.1 98.2 96.9 97.0 New Jersey 98.0 97.7 97.6 96.9 95.8 95.3 New Mexico 92.9 90.7 93.0 94.4 92.5 91.7 New York 97.2 96.9 96.8 96.5 95.5 94.8 North Carolina 96.5 95.6 94.1 94.5 93.8 93.2 North Dakota 97.8 97.3 96.8 95.9 94.7 94.7 Ohio 97.7 96.7 97.1 96.2 95.4 94.2 Oklahoma 95.7 93.9 94.7 93.7 93.1 92.9 Oregon 98.0 97.1 96.9 96.0 95.3 95.2 Pennsylvania 97.8 98.0 97.5 97.2 96.5 95.9 Rhode Island 98.3 97.8 97.7 96.8 96.4 95.6 South Carolina 96.0 94.7 94.7 93.6 92.3 92.0 South Dakota 97.6 96.8 96.1 95.8 95.3 96.0 Tennessee 96.8 96.3 95.1 95.2 92.9 92.8 Texas 95.9 95.4 94.3 93.7 92.9 92.6 Utah 97.4 97.7 97.5 97.4 96.5 96.2 Vermont 98.1 98.1 97.7 97.6 97.9 97.2 Virginia 97.3 97.0 97.0 95.8 95.6 95.2 Washington 97.5 97.8 97.0 96.5 96.5 96.2 West Virginia 95.1 95.9 94.8 94.0 94.5 93.8 Wisconsin 97.9 97.5 96.3 95.5 96.4 95.6 Wyoming 95.1 94.9 94.5 94.4 94.9 93.4 Total United States 96.9 % 96.6 % 96.2 % 95.7 % 94.8 % 94.1 % Puerto Rico NA NA NA NA 73.8 73.6 % NA - Not available Source: Census Bureau, American Community Survey. 20022001 Table 16.4 Telephone Penetration by State (Percentage of Housing Units with Telephone Service) 20062003 2004 2005 16 - 6 Characteristic Housing Unit Tenure Owner Occupied 98.8 % 98.7 % 98.5 % 98.3 % 97.7 % 97.1 % Renter Occupied 93.4 92.6 91.6 90.4 89.0 87.9 Age of Householder 15 - 34 94.5 93.6 92.0 90.2 88.0 86.3 35 - 64 97.3 97.2 97.1 96.7 96.1 95.4 65 + 98.7 98.6 98.7 98.7 98.6 98.5 Race of Householder White 97.6 97.3 96.9 96.3 95.6 NA Black or African American 93.6 93.0 93.0 92.3 91.9 NA American Indian or Alaska Native 89.1 89.5 87.8 89.6 86.8 NA Asian 98.4 98.0 97.5 96.9 95.5 NA Native Hawaiian or Pacific Islander 95.9 95.5 91.4 92.2 93.1 NA Other 94.6 95.1 93.9 93.3 91.0 NA Two or More Races 95.1 92.7 95.6 92.8 92.7 NA Ethnicity of Householder Hispanic or Latino 94.2 93.9 93.4 92.6 91.6 NA Total United States 96.9 % 96.6 % 96.2 % 95.7 % 94.8 % 94.1 % NA - Not available Source: Census Bureau, American Community Survey. 20022001 Table 16.5 Telephone Penetration by Selected Characteristics (Percentage of Housing Units with Telephone Service) 2003 2004 2005 2006 16 - 7 17-1 17 Technology and Infrastructure Price-cap regulated carriers, including the Bell operating companies (BOCs), file data on technology as part of their Automated Reporting Management Information System (ARMIS) reports. The data contained in Tables 17.1 and 17.3 are from the BOCs’ ARMIS 43-07 reports, and the data contained in Table 17.2 are from the ARMIS 43-05 report. The individual carrier's data can be obtained from the ARMIS web page at www.fcc.gov/wcb/eafs. Selected holding company statistics from the ARMIS 43-07 can be found in Section 10 of our Monitoring Report on the web page www.fcc.gov/wcb/iatd/monitor. Also, information about broadband deployment is contained in Chapter 2, Advanced Telecommunications. 1. Central Office Technology Table 17.1 shows the number of BOC switches and tracks the deployment of certain key switching and signaling technologies, described below, in BOC central offices. (Information about broadband deployment is contained in Chapter 2, Advanced Telecommunications.) Telephone companies replaced most of their older electromechanical switches with stored program control switches (SPCSs) beginning in 1980. Stored program control makes it possible to change the operational and service features of a switch by changing the program stored in switch memory and executed by switch processors. SPCSs can use either analog or digital switching technology. As shown in Table 17.1 virtually all switches in BOC networks now use digital stored program control technology, and more than 98 percent of BOC access lines terminate on digital switches. As such, the tables in this report no longer separately track electromechanical or analog SPC switches. In the late 1980s, telephone companies began to convert switching offices from in-band signaling to Signaling System 7 (SS7). SS7 permits calls to be set up more efficiently, and also allows certain new services to be deployed. It may be implemented on both analog and digital stored program control switches. Data in Table 17.1 shows that SS7 has now been deployed almost everywhere in BOC networks. Telephone companies began introducing integrated services digital network (ISDN) capabilities on their digital switches shortly after introducing Signaling System 7. One of the attractions of ISDN is that ordinary local telephone lines (copper loops) can be used to transport data between computers at speeds higher than possible using a modem. In recent years, however, ISDN has taken a back seat to central office broadband technologies, such as Digital Subscriber Line (DSL) and Fiber to the Home (FTTH), when used for this purpose. Table 17.2 provides some additional categorization of switches. It shows line counts of switches from 1997 to 2006 for the following categories: fewer than 1,000 lines; 1,000 - 4,999 lines; 5,000 - 9,999 lines; 10,000 - 19,999 lines; and 20,000 lines or more. The table also breaks out switches based on their being in a Metropolitan 17-2 Statistical Area (MSA) or not (non-MSA). Note that while Table 17.1 provides switch counts for BOCs only, Table 17.2 provides this information for all price-cap carriers. 2. Transmission Technology Each telephone company has a network of transmission paths interconnecting switching offices and also connecting customers to their serving local central offices. Today, wireline transmission is typically provided on fiber or copper cable, with other technologies being used only infrequently. As indicated in Table 17.3, from 1991 to 2006, the proportion of fiber cable sheath kilometers 1 in Bell Operating Company networks increased from 5% to over 15% of total cable sheath kilometers. The number of working channels provides a rough approximation of the number of transmission paths that are in service between customers and the telephone company offices serving those customers. This includes both switched access lines and the local portion of special access and private lines. Table 17.3 shows that the number of working channels provided partly or totally on fiber in BOC networks increased from about 4% of total working channels in 1991 to about 20% in 2006. 3. Equal Access Equal access refers to a class of service whereby all long distance service providers receive equivalent connections to the local exchange carrier's network. Where a local exchange carrier serves customers using equal-access switches, those customers can utilize their preferred long distance provider by dialing "1" plus the ten-digit telephone number they want to reach. The conversion of lines by local exchange carriers to equal access started in 1984; by the end of 1996, over 99% of the nation's lines were served by equal access switches. A table tracing this process through time can be found in the equal-access section of the Trends report released in July 1998. Despite the fact that more than 99% of the nation's customers receive equal access, there still are some central offices where equal access is not yet available. Table 17.4 shows the number of central office wire centers in each state that had been converted to equal access as of August 1, 2008. The table is derived from NECA’s Tariff 4 database, which is updated by local exchange carriers. In some cases, there is a lag between an office converting to equal access and that change being reflected in the database. Thus, in some cases, the data continue to show some offices not yet converted to equal access even in states where equal access is reported to be available to all customers. 1 Cable sheath kilometers is a measure of the length of cable used to provide telecommunications services. A sheath contains individual copper or fiber pairs used to transmit voice or data. Fiber cable sheaths typically contain 40 to 50 fiber strands while copper cable sheaths contain as many as several hundred copper pairs. 17-3 4. Rural Network Capabilities The National Exchange Carrier Association periodically conducts a survey of over 1,000 small, mostly rural telephone companies. 2 The most recent survey focuses on the small companies’ efforts to bring advanced services to their customers. Table 17.5 shows selected network capabilities by state of the 1,114 companies that responded to the 2007 survey and a summary of the results of the 2006 survey. In addition to the number of switches and access lines, the table shows the percentage of companies equipped with DSL, with Ethernet, and with ATM; the number of ADSL and other broadband access lines; and the percentage of central offices equipped for equal access. 5. Telecommunications Patents One measure of developing technology is the number of U.S. patents. The U.S. Patent and Trademark Office maintains a file of over six million distinct U.S. patents granted. These patents are categorized by technology. Chart 17.1 shows the number of patents granted for telecommunications from 1992 to 2006. The information presented profiles U.S. patent activity in the general field of telecommunications. It includes all U.S. patent documents, except reissued patents, granted between January 1992 and December 31, 2006 in the following classes: Class 370, Multiplex Communications Class 375, Pulse or Digital Communications Class 379, Telephonic Communications Class 455, Telecommunications 6. Capital Expenditures The FCC does not systematically collect information on capital expenditures from most carriers. Table 17.6 provides annual estimates of expenditures for structures and equipment for telecommunications carriers, taken from a U.S. Census Bureau survey. 3 Chart 17.2 combines this expenditure data with FCC collected revenue data. It shows that for each dollar of revenue collected from end users in 2005, wireless carriers invested 27 cents in structures and equipment whereas wireline, resellers, satellite & other carriers invested 20 cents. Overall, capital expenditures were 25 cents for each dollar of end-user revenues. 2 National Exchange Carrier Association (NECA), Trends 2007 - Building Tomorrow’s Network, p.30 3 U.S. Census Bureau, Annual Capital Expenditures: 2006, (Issued January 24, 2008) Table 4a, http://www.census.gov/csd/ace/xls/2006/Full%20Report.htm (last visited February 4, 2008.) Year End Total Signaling System 7 ISDN Digital Stored Switches Switches Switches Program Controlled Switches 1987 9,190 29 0.32 % 4 0.04 % 2,538 27.62 % 1988 9,300 435 4.68 82 0.88 3,577 38.46 1989 9,338 931 9.97 179 1.92 4,403 47.15 1990 9,872 2,428 24.59 600 6.08 5,816 58.91 1991 9,951 3,670 36.88 920 9.25 6,636 66.69 1992 10,069 5,392 53.55 1,219 12.11 7,530 74.78 1993 10,089 6,688 66.29 1,874 18.57 8,239 81.66 1994 10,023 8,334 83.15 2,400 23.94 8,795 87.75 1995 10,051 8,977 89.31 2,868 28.53 9,015 89.69 1996 9,966 9,286 93.18 3,329 33.40 9,247 92.79 1997 9,965 9,688 97.22 3,902 39.16 9,417 94.50 1998 9,788 9,643 98.52 4,146 42.36 9,357 95.60 1999 1 9,968 9,844 98.76 4,424 44.38 9,648 96.79 2000 2 15,092 14,837 98.31 5,413 35.87 14,889 98.65 2001 15,109 14,969 99.07 5,465 36.17 14,970 99.08 2002 14,338 3 14,259 99.45 5,712 39.84 14,231 3 99.25 2003 14,377 14,345 99.78 5,654 39.33 14,293 99.42 2004 14,399 14,366 99.77 5,787 40.19 14,326 99.49 2005 12,321 12,292 99.76 5,694 46.21 12,256 99.47 2006 12,315 12,286 99.76 5,910 47.99 12,251 99.48 Access Lines Served by Type of Office (Thousands) Year End All Signaling System 7 ISDN Digital Stored Switches Switches Switches Program Controlled Switches 1987 96,593 1,035 1.07 % 12 0.01 % 22,946 23.76 % 1988 99,564 10,325 10.37 47 0.05 30,493 30.63 1989 102,684 21,917 21.34 111 0.11 38,192 37.19 1990 105,641 40,026 37.89 13,970 13.22 45,452 43.02 1991 107,388 57,321 53.38 20,567 19.15 52,061 48.48 1992 109,997 76,480 69.53 28,375 25.80 60,324 54.84 1993 113,368 92,493 81.59 39,875 35.17 71,192 62.80 1994 117,345 109,465 93.28 56,546 48.19 84,040 71.62 1995 122,266 116,568 95.34 71,274 58.29 93,172 76.20 1996 125,844 122,343 97.22 85,434 67.89 101,283 80.48 1997 131,722 130,778 99.28 95,956 72.85 110,503 83.89 1998 136,426 136,246 99.87 106,834 78.31 119,738 87.77 1999 1 141,763 141,685 99.94 113,999 80.42 129,838 91.59 2000 2 160,557 160,303 99.84 132,844 82.74 153,240 95.44 2001 155,543 155,363 99.88 129,075 82.98 150,732 96.91 2002 148,292 344 123,872 83.53 143,632 3 96.86 2003 142,698 44 118,653 83.15 139,411 97.70 2004 136,057 115,561 84.94 134,076 98.54 2005 127,026 44 107,159 84.36 125,460 98.77 2006 118,316 100,053 84.56 116,817 98.73 Source: Industry Analysis and Technology Division, Wireline Competition Division, Statistics of Communications Common Carriers, because certain data pertaining to the carriers included in this table are not available. 1 Southern New England Telephone Company merged with SBC Communications October 26, 1998. Their data are included in this table starting with 1999. 2 Large increase in 2000 is due to the merger of Bell Atlantic and GTE. 3 The decrease in the number of switches and their associated lines from 2001 to 2002 is partially due to the sale of a number of study areas by Verizon. 5 Table 17.1 is derived from the ARMIS 43-05, which is filed by incumbent local exchange carriers subject to price-cap regulation. The decline in switches between 2004 and 2005 is primarily due to Verizon GTE reporting substantially fewer switches in 2005 than in 2004. Verizon attributes its 2005 reduction in local switches to Verizon GTE's change in data sources from financial to operations databases, which the company expects will provide more timely information. 4 For 2002, the Commission eliminated the requirement that the Bell operating companies file electromechanical switch data and access line data for Signalling System 7 switches. See 2000 Biennial Regulatory Review – Comprehensive Review of the Accounting Requirements and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers: Phase 2, et al., CC Docket Nos. 00-199, 99-301, 97-212, 80-286, Report and Order in CC Docket Nos. 00- 199, 97-212, and 80-286, Further Notice of Proposed Rulemaking in CC Docket Nos. 00-199, 99-301, and 80-286, 16 FCC Rcd 19911, 19770-72, paras. 161-165 (2001). Table 17.1 5 Central Office Switches and Access Lines by Technology (Bell Operating Companies) with updates and revisions contained in the ARMIS database (ARMIS 43-07 Report) for the most recent five years. Totals may be understated Notes: Because of different sources, the data for 1989 and earlier years may not be consistent with the data for 1990 and later years. 17 - 5 Table 17.2 1 Switches by Metropolitan Statistical Area (MSA) and Non-MSA Year Total Switches Total Switches Total Switches Switches with Switches with Switches with Switches with Switches with MSA Non-MSA MSA and Under 1,000 1,000 - 4,999 5,000 - 9,999 10,000 - 19,999 20,000 or More Non-MSA 2 Lines Lines Lines Lines Lines 1997 9,138 7,199 16,337 4,476 5,843 1,786 1,518 2,714 1998 9,011 7,492 16,503 4,374 6,027 1,821 1,527 2,754 1999 9,165 7,452 16,617 4,319 5,898 1,915 1,613 2,873 2000 9,058 6,340 15,398 3,472 5,538 1,869 1,632 2,888 2001 8,996 6,418 15,373 3,402 5,481 1,873 1,678 2,938 2002 9,098 6,336 15,517 3,638 5,627 1,852 1,627 2,772 2003 9,170 6,541 15,657 3,747 5,725 1,887 1,685 2,667 2004 9,289 6,737 16,026 4,160 5,833 1,868 1,681 2,485 2005 9,064 5,602 14,666 3,380 5,310 1,886 1,719 2,371 2006 9,079 5,578 14,657 3,502 5,343 1,914 1,748 2,150 Source: Industry Analysis and Technology Division, Wireline Competition Division, Statistics of Communications Common Carriers, with updates and revisions contained in the ARMIS database (ARMIS 43-05 Report) for the most recent five years. Totals may be understated because certain data pertaining to the carriers included in this table are not available. Notes: 1 The number of switches in Table 17.2 differs from Tables 17.1. Table 17.1 is derived from the ARMIS 43-07, which is filed by the regional Bell operating companies. Table 17.2 is derived from the ARMIS 43-05, which is filed by incumbent local exchange carriers subject to price-cap regulation. 2 The decline in switches between 2004 and 2005 is primarily due to Verizon GTE reporting substantially fewer switches in 2005 than in 2004. Verizon attributes its 2005 reduction in local switches to Verizon GTE's change in data sources from financial to operations databases, which the company expects will provide more timely information. And Switches by Line Counts 17 - 6 Table 17.3 Local Transmission Technology (Bell Operating Companies) Cable Sheath Kilometers Year End Total Copper Fiber Other 1991 4,163,640 3,955,622 95.0 % 196,791 4.7 % 11,228 0.3 % 1992 4,214,804 3,965,406 94.1 238,406 5.7 10,994 0.3 1993 4,264,569 3,976,100 93.2 280,017 6.6 8,450 0.2 1994 4,256,253 3,934,243 92.4 314,660 7.4 7,350 0.2 1995 4,319,068 3,960,343 91.7 351,907 8.1 6,819 0.2 1996 4,339,067 3,947,238 91.0 386,011 8.9 5,819 0.1 1997 4,396,205 3,974,204 90.4 416,105 9.5 5,896 0.1 1998 4,473,351 4,009,772 89.6 449,554 10.0 14,026 0.3 1999 1 4,608,808 4,103,657 89.0 491,478 10.7 13,672 0.3 2000 2 5,761,869 5,132,364 89.1 613,646 10.7 15,860 0.3 2001 5,848,516 5,166,537 88.3 665,805 11.4 16,174 0.3 2002 5,791,105 5,086,669 87.8 692,031 11.9 12,406 0.2 2003 5,851,790 5,118,314 87.5 720,877 12.3 12,600 0.2 2004 5,940,199 5,166,481 87.0 763,132 12.8 12,587 0.2 2005 5,988,864 5,166,382 86.3 811,896 13.6 10,585 0.2 2006 6,089,810 5,185,980 85.2 894,319 14.7 10,511 0.2 Working Telecommunications Channels (Thousands) Year End Total Copper Fiber Radio 1991 118,654 114,047 96.1 % 4,605 3.9 % 2.3 0.0 % 1992 120,848 114,609 94.8 6,238 5.2 1.0 0.0 1993 124,191 115,496 93.0 8,694 7.0 1.4 0.0 1994 130,192 118,437 91.0 11,755 9.0 0.3 0.0 1995 136,231 122,975 90.3 13,255 9.7 0.3 0.0 1996 142,824 125,595 87.9 17,228 12.1 1.0 0.0 1997 149,429 128,436 86.0 20,992 14.0 0.3 0.0 1998 172,916 134,629 77.9 38,286 22.1 0.3 0.0 1999 1 186,387 138,691 74.4 47,696 25.6 0.0 0.0 2000 2 218,928 157,840 72.1 61,086 27.9 1.9 0.0 2001 228,705 152,441 66.7 76,263 33.3 1.5 0.0 2002 3 169,157 137,228 81.1 31,927 18.9 1.4 0.0 2003 155,978 127,261 81.6 28,716 18.4 0.5 0.0 2004 148,278 117,672 79.4 30,605 20.6 0.1 0.0 2005 137,254 110,033 80.2 27,221 19.8 0.1 0.0 2006 125,767 100,254 79.7 25,513 20.3 0.1 0.0 Source: Industry Analysis and Technology Division, Wireline Competition Division, Statistics of Communications Common Carriers, with updates and revisions contained in the ARMIS database (ARMIS 43-07 Report) for the most recent five years. Totals may be understated because certain data pertaining to the carriers included in this table are not available. Notes: Working Channels are reported in 4 kHz bandwidth (single-voice channel) equivalents. 1 Southern New England Telephone Company merged with SBC Communications October 26, 1998. Their data are included in this table starting with 1999. 2 Large increase in 2000 is due to the merger of Bell Atlantic and GTE. 3 The large decrease from 2001 to 2002 is due in part to a number of Verizon companies refiling in order to remove interexchange carrier, point-of-presence, and co-location circuit counts to comply with ARMIS definitions. 17 - 7 Table 17.4 Central Offices Converted to Equal Access 1/ (As of August 1, 2008) August 1, 2008 Bell Company Other ILEC CLEC All Central Offices Central Offices Central Offices Central Offices Equal Non-Equal % Equal Equal Non-Equal % Equal Equal Non-Equal % Equal Total % Equal Access Access Access Access Access Access Access Access Access Offices Access Alabama 146 0 100.0 % 219 0 100.0 % 43 0 100.0 % 408 100.0 % Alaska 0 0 NA 102 152 40.2 0 0 NA 254 40.2 American Samoa 0 0 NA 4 0 100.0 0 0 NA 4 100.0 Arizona 145 0 100.0 104 5 95.4 36 1 97.3 291 97.9 Arkansas 138 0 100.0 279 2 99.3 33 2 94.3 454 99.1 California 905 2 99.8 87 1 98.9 174 2 98.9 1,171 99.6 Colorado 165 1 99.4 95 5 95.0 33 0 100.0 299 98.0 Connecticut 128 0 100.0 0 0 NA 18 0 100.0 146 100.0 Delaware 33 0 100.0 0 0 NA 5 0 100.0 38 100.0 District of Columbia 18 0 100.0 0 0 NA 22 0 100.0 40 100.0 Florida 292 0 100.0 177 0 100.0 213 0 100.0 682 100.0 Georgia 182 0 100.0 235 1 99.6 82 0 100.0 500 99.8 Guam 0 0 NA 3 0 100.0 0 0 NA 3 100.0 Hawaii 0 0 NA 92 0 100.0 8 0 100.0 100 100.0 Idaho 97 0 100.0 82 0 100.0 12 0 100.0 191 100.0 Illinois 697 4 99.4 325 7 97.9 67 1 98.5 1,101 98.9 Indiana 386 3 99.2 183 0 100.0 49 1 98.0 622 99.4 Iowa 135 0 100.0 657 0 100.0 55 0 100.0 847 100.0 Kansas 171 2 98.8 251 4 98.4 31 1 96.9 460 98.5 Kentucky 178 0 100.0 403 0 100.0 31 0 100.0 612 100.0 Louisiana 223 0 100.0 89 0 100.0 40 0 100.0 352 100.0 Maine 143 1 99.3 107 8 93.0 3 0 100.0 262 96.6 Maryland 214 0 100.0 1 0 100.0 22 0 100.0 237 100.0 Massachusetts 274 1 99.6 3 0 100.0 35 0 100.0 313 99.7 Michigan 542 7 98.7 168 0 100.0 68 0 100.0 785 99.1 Minnesota 155 0 100.0 564 4 99.3 108 0 100.0 831 99.5 Mississippi 205 0 100.0 70 0 100.0 22 0 100.0 297 100.0 Missouri 215 0 100.0 451 21 95.6 63 0 100.0 750 97.2 Montana 76 0 100.0 194 1 99.5 22 0 100.0 293 99.7 Nebraska 69 0 100.0 387 0 100.0 22 0 100.0 478 100.0 Nevada 55 0 100.0 61 3 95.3 15 0 100.0 134 97.8 New Hampshire 125 1 99.2 31 1 96.9 8 0 100.0 166 98.8 New Jersey 209 0 100.0 28 0 100.0 46 0 100.0 283 100.0 New Mexico 65 0 100.0 90 34 72.6 10 0 100.0 199 82.9 New York 526 2 99.6 301 6 98.0 101 0 100.0 936 99.1 North Carolina 183 0 100.0 563 1 99.8 105 0 100.0 852 99.9 North Dakota 27 0 100.0 286 19 93.8 15 0 100.0 347 94.5 Ohio 489 19 96.3 341 4 98.8 98 1 99.0 952 97.5 Oklahoma 207 1 99.5 305 2 99.3 29 0 100.0 544 99.4 Oregon 135 0 100.0 153 0 100.0 29 0 100.0 317 100.0 Pennsylvania 506 0 100.0 420 31 93.1 71 0 100.0 1,028 97.0 Puerto Rico 0 0 NA 86 0 100.0 3 0 100.0 89 100.0 Rhode Island 30 0 100.0 0 0 NA 7 0 100.0 37 100.0 South Carolina 158 0 100.0 265 0 100.0 51 0 100.0 474 100.0 South Dakota 42 0 100.0 203 6 97.1 10 0 100.0 261 97.7 Tennessee 196 0 100.0 554 0 100.0 53 1 98.1 804 99.9 Texas 797 2 99.7 691 10 98.6 222 5 97.8 1,727 99.0 Utah 63 0 100.0 93 4 95.9 12 0 100.0 172 97.7 Vermont 90 2 97.8 37 0 100.0 4 0 100.0 133 98.5 Virgin Islands 0 0 NA 5 0 100.0 0 0 NA 5 100.0 Virginia 328 1 99.7 270 7 97.5 59 0 100.0 665 98.8 Washington 219 0 100.0 144 2 98.6 39 0 100.0 404 99.5 West Virginia 145 0 100.0 86 6 93.5 4 0 100.0 241 97.5 Wisconsin 225 4 98.3 404 0 100.0 60 0 100.0 693 99.4 Wyoming 26 0 100.0 36 14 72.0 3 0 100.0 79 82.3 Total United States 10,778 53 99.5 % 10,785 361 96.8 % 2,371 15 99.4 % 24,363 98.2 % NA - Not applicable. 1/ Some companies do not report information on their remote switches in Tariff No. 4. As a result, central office counts may be lower than reported in other sources. Source: NECA FCC Tariff No. 4 database. 17 - 8 Jurisdiction Companies Alabama 21 78 112,098 100 % 100 % 18,712 38 % 10 % 62 % Alaska 24 170 234,459 67 88 78,373 21 12 50 American Samoa 1 41 10,204 100 100 * * * * Arizona 12 4 37,339 100 100 4,869 25 8 50 Arkansas 26 245 309,879 100 96 26,929 46 0 62 California 14 31 84,508 100 100 23,358 57 7 50 Colorado 25 41 47,922 98 92 7,580 28 0 72 Connecticut 1 14 22,645 100 100 * * * * Florida 6 24 74,850 100 100 14,019 33 0 67 Georgia 26 61 202,105 97 100 34,606 15 0 73 Guam 1 3 62,138 100 100 * * * * Hawaii 1 8 1,461 100 100 * * * * Idaho 14 57 38,929 100 100 9,528 21 14 71 Illinois 34 98 52,811 97 100 11,417 21 0 44 Indiana 35 78 116,967 100 97 29,592 46 6 74 Iowa 136 334 198,181 99 98 47,913 7 0 44 Kansas 34 148 120,644 100 100 32,394 29 3 85 Kentucky 12 288 129,339 100 100 25,879 75 0 58 Louisiana 18 136 130,561 100 100 15,064 56 0 67 Maine 19 115 135,049 100 100 24,735 42 0 32 Maryland 1 1 7,061 100 100 * * * * Massachusetts 2 2 3,665 100 100 682 0 0 0 Michigan 33 108 100,966 100 91 14,920 30 3 58 Minnesota 80 304 314,332 100 90 44,187 24 2 39 Mississippi 17 51 77,420 94 100 9,984 65 6 35 Missouri 35 171 107,736 98 97 21,850 57 11 46 Montana 14 209 94,806 100 100 21,836 50 0 43 Nebraska 34 137 67,576 100 100 18,361 12 0 71 Nevada 8 27 32,362 88 100 12,555 50 12 25 New Hampshire 9 32 53,643 100 100 12,557 56 0 78 New Jersey 1 2 8,073 100 100 * * * * New Mexico 13 78 44,423 99 100 6,496 38 0 69 New York 31 85 167,736 99 100 27,858 19 3 65 North Carolina 15 127 311,900 100 100 45,726 33 0 80 North Dakota 20 280 142,108 100 100 32,989 55 10 70 Ohio 22 28 177,804 100 91 33,452 23 0 55 Oklahoma 34 267 170,099 100 97 47,169 23 3 44 Oregon 27 56 74,708 100 100 19,884 11 11 56 Pennsylvania 23 709 544,494 100 100 22,114 22 0 39 South Carolina 12 177 102,945 100 100 22,896 58 0 50 South Dakota 23 160 118,117 100 100 29,211 22 4 61 Tennessee 19 462 256,823 100 100 46,797 68 10 47 Texas 45 352 248,267 98 98 46,756 44 2 64 Utah 11 72 69,973 100 100 17,981 27 27 82 Vermont 9 39 62,557 100 100 21,545 56 0 56 Virginia 15 181 77,495 98 93 17,434 33 0 60 Washington 20 54 79,151 100 90 21,651 35 5 60 West Virginia 6 12 16,202 100 100 3,326 0 0 33 Wisconsin 70 249 364,277 100 94 39,668 47 9 61 Wyoming 5 24 24,750 100 100 6,613 40 0 60 Totals 2 1,114 6,430 6,043,558 99 % 95 % 1,079,748 32 % 4 % 56 % 2006 Totals 1,120 6,642 6,620,078 98 % 94 % 581,921 29 % NA NA 1 Equal access gives customers a choice of long distance carrier. NECA continues to track progress toward the goal of 100% equal access capability. 2 Total percentages are weighted averages of individual state percentages. * Individual data withheld to maintain company confidentiality. All data included in totals. Table 17.5 Broadband Capabilities of NECA's 2007 Rural Incumbent LEC Survey Respondents DSL Service ATM ServiceEqual Access 1 Equipped for Central Switches Companies Lines Technologies BroadbandAccess ServiceLines Providing Offices Source: National Exchange Carrier Association "Trends 2007 - Building Tomorrow's Network", a survey of small, mostly rural telephone companies. Providing Access CompaniesDSL Companies Providing Other Ethernet 17 - 9 Notes: 1. 1996 total reflects one-time change in law affecting patents. 2. 2006 increase reflects processing of prior years' applications. Source: U.S. Patent and Trademark Office, Patent Counts by Class by Year, January 1977 - December 2006, Telecommunications Classes 370, 375, 379 and 455 (October 2007), available at http://www.uspto.gov/go/taf/cbcby.pdf. Chart 17.1 Telecommunications Patents 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 Patents 2,598 2,977 3,821 4,510 5,613 5,090 7,861 8,634 9,106 9,000 9,641 10,391 12,142 11,510 17,206 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 17 - 10 Industry 2/ 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Wireline Telecommunications Carriers Expenditures for Structures New $10,652 3/ $18,021 $14,482 $7,820 $9,825 3/ $7,921 $10,142 Used 12 3/ 205 18 1 52 3/ 11 18 Total 10,664 17,309 18,226 14,500 7,821 9,877 8,118 7,933 10,160 Expenditures for Equipment New 39,828 3/ 55,902 57,436 26,986 16,918 3/ 19,172 21,924 Used 78 3/ 77 38 12 41 3/ 31 57 Total 39,905 42,442 55,980 57,474 26,998 16,959 15,922 19,203 21,981 Total Expenditures for Structures and Equipment $50,570 $59,752 $74,206 $71,974 $34,819 $26,836 $24,040 $27,136 $32,141 Wireless Telecommunications Carriers (Except Satellite) Expenditures for Structures New $2,387 $5,026 $7,674 $11,313 $8,245 $11,512 $11,685 3/ 12,604 Used * 3 58 8 7 2 31 3/ 45 Total 2,387 5,030 7,732 11,321 8,252 11,514 11,716 16,456 12,648 Expenditures for Equipment New 5,841 9,350 17,589 12,695 12,210 9,459 12,278 3/ 15,290 Used 6 43 161 13 29 16 4 3/ 31 Total 5,841 9,393 17,750 12,708 12,238 9,475 12,282 10,882 15,321 Total Expenditures for Structures and Equipment $8,228 $14,422 $25,482 $24,028 $20,490 $20,989 $23,998 $27,337 27,969 Resellers, Satelllite and Other Telecommunications Carriers Expenditures for Structures New $2,089 $1,410 $1,951 $2,233 $1,556 $3,499 $397 $449 $259 Used * 4 3 5 3 133 6 1 0 Total 2,089 1,414 1,954 2,238 1,560 3,632 403 450 259 Expenditures for Equipment New 4,188 8,795 11,495 7,288 4,119 809 3,095 3,180 2,726 Used 4 49 164 78 12 96 22 27 18 Total 4,192 8,845 11,659 7,367 4,131 905 3,117 3,207 2,744 Total Expenditures for Structures and Equipment $6,281 $10,259 $13,613 $9,605 $5,691 $4,537 $3,520 $3,657 $3,003 Total Telephone and Other Communications Services Expenditures for Structures New $9,193 $9,672 $15,128 3/ $27,646 $28,028 $17,621 $24,836 3/ $8,370 $23,005 Used 185 218 12 3/ 266 31 11 187 3/ 12 63 Total 9,378 9,890 15,140 23,753 27,912 28,059 17,633 25,023 18,237 8,382 23,068 Expenditures for Equipment New 37,985 46,667 49,857 3/ 84,986 77,419 43,315 27,186 3/ 22,352 39,940 Used 299 406 88 3/ 402 129 53 153 3/ 58 106 Total 38,283 47,074 49,938 60,680 85,389 77,549 43,367 27,339 31,321 22,410 40,046 Total Expenditures for Structures and Equipment $47,661 $56,963 $65,079 $84,433 $113,301 $105,607 $61,000 $52,362 $51,558 $58,130 $63,113 Note: Detail may not add to totals shown due to rounding. * Represents amounts greater than $0 but less than $500,000. 1/ Capital expenditures include capitalized computer sofware, capitalized interest during construction and expenditures for land development and improvement. Capital expenditures exclude equipment acquired under operating leases, good will, and expenditures for subsidiaries and branches located outside the United States. 2/ For 1996 - 1997, data represent Standard Industrial Classification (SIC) industries 481, 482, and 489. Starting in 1998, data are based on the North American Industry Classification System (NAICS). NAICS Codes are 51331 for Wireline, 51332 for Wireless and 51333, 51334 and 51339 for others. For 2004 - 2005 they are 5171, 5172, and 5173, 5174, and 5179, respectively. 3/ Data withheld by the Census Bureau to maintain firm confidentiality. Source: U.S. Census Bureau, Annual Capital Expenditures, (Issued January 24, 2008) Table 4a; See: http://www.census.gov/csd/ace/xls/2006/Full%20Report.htm (last visited February 4, 2008.) Table 17.6 Capital Expenditures for Structures and Equipment 1/ (Expenditure Amounts Shown in Millions) 17 - 11 Chart 17.2 Capital Expenditures for Structures and Equipment by Carriers Per Dollar of End-User Telecommunications Revenues 1 1 Capital expenditures per dollar of end-user telecommunications revenues are derived by dividing expenditures figures in Table 17.6 by end-user revenues data in Table 6 of the Revenue Report. Wireline, Reseller, Satellite & Other end-user revenues are calculated by subtracting wireless end-user revenues from total end-user revenues. Source: U.S. Census Bureau, Annual Capital Expenditures; Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (June 2007). $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Wireless Carriers $0.25 $0.32 $0.44 $0.35 $0.27 $0.25 $0.25 $0.27 $0.25 Wireline, Resellers, Satellite & Other $0.35 $0.41 $0.51 $0.49 $0.26 $0.18 $0.17 $0.20 $0.25 1998 1999 2000 2001 2002 2003 2004 2005 2006 17 - 12 18 - 1 18 Telephone Numbers In 1994, many area codes were nearing exhaustion as demand for telephone numbers continued to rise. At the time, the middle digit of all area codes was either a 0 or a 1, and the supply of those area codes was dwindling. On January 1, 1995, the restriction on the middle digit was removed, making 640 new area codes available. New area codes were added at a rapid rate during the late 1990s, with forty-four new area codes being opened in 1997 alone. Subsequent years saw fewer added area codes. In 2000, thirteen area codes were added, and in 2007 three area codes were added. The North American Numbering Plan Administration (NANPA) (which is part of NeuStar, Inc.) expects to open one new area code in 2008 and two in 2009. The above counts of area code activation are for the contiguous United States, offshore points, Canada, and the Caribbean. Table 18.1 shows historical area code information by state from 1947 to 2007. The changes in area codes from 1999 to 2007 are shown in Table 18.2. AT&T introduced toll-free service in 1967. The Commission changed procedures for routing toll-free calls on May 1, 1993 to make toll-free numbers "portable." This change enabled customers to switch service providers yet still retain their toll-free numbers. Between 1993 and 2000, the quantity of assigned toll-free numbers grew rapidly: growing from 3.9 million in 1993 to 24.2 million in 2000. New toll-free calling codes were opened to meet the demand. In March 1996, calling code 888 was placed into service. The third toll-free calling code (877) went into effect April 4, 1998, and the fourth toll-free calling code (866) went into effect July 29, 2000. The growth of toll-free telephone numbers for the four toll-free codes (800, 888, 877, and 866) is shown in Table 18.3 and Chart 18.1. Tables 18.4 through 18.7 show the growth of each individual toll-free code: 800, 888, 877, and 866, respectively. In the event that another toll-free code is needed, the 855 code would be opened. Database Service Management, Inc./Team DSMI, a subsidiary of Telcordia Technologies, Inc., maintains the Toll-Free Service Management System for the United States and Canada. Dialing patterns differ from state to state. For instance, in some states, callers making local calls within an area code are required to dial only the 7-digit phone number. In other states, callers making local calls must dial the ten-digit phone number (area code plus the phone number). Finally, in some states, local callers must dial a “1” before dialing the area code plus the phone number. Each state’s public utilities commission (or public service commission) determines the calling pattern for each area code in their state. The dialing patterns for area codes are listed in area code planning letters, which are available on the North American Numbering Plan Administrator’s web site at www.nanpa.com. For both local and domestic toll calls, there are two basic types of calls: those within an area code and those between area codes. Table 18.8 shows the dialing patterns for all four types of calls. The last column of Table 18.8 indicates whether all toll calls in that state require callers to dial a “1” before the telephone number. Area Codes by State (1947 - 2007) Area Code State/Jurisdiction Area Code Opened Area Code State/ Jurisdiction Area Code Opened Area Code State/ Jurisdiction Area Code Opened Area Code State/ Jurisdiction Area Code Opened 205 Alabama Jan-47 229 Georgia Aug-00 320 Minnesota Mar-96 717 Pennsylvania Jan-47 334 Alabama Jan-95 478 Georgia Aug-00 651 Minnesota Jul-98 814 Pennsylvania Jan-47 256 Alabama Mar-98 762 Georgia May-06 763 Minnesota Feb-00 610 Pennsylvania Jan-94 251 Alabama Jun-01 671 Guam Jul-97 952 Minnesota Feb-00 724 Pennsylvania Feb-98 907 Alaska Jan-57 808 Hawaii Jan-57 601 Mississippi Jan-47 570 Pennsylvania Dec-98 684 American Somoa Oct-04 208 Idaho Jan-47 228 Mississippi Sep-97 484 Pennsylvania Jun-99 602 Arizona Jan-47 217 Illinois Jan-47 662 Mississippi Apr-99 267 Pennsylvania Jul-99 520 Arizona Mar-95 312 Illinois Jan-47 769 Mississippi Mar-05 878 Pennsylvania Aug-01 480 Arizona Mar-99 618 Illinois Jan-47 314 Missouri Jan-47 787 Puerto Rico Mar-96 623 Arizona Mar-99 815 Illinois Jan-47 816 Missouri Jan-47 939 Puerto Rico Sep-01 928 Arizona Jun-01 309 Illinois Jan-57 417 Missouri Jan-50 401 Rhode Island Jan-47 501 Arkansas Jan-47 708 Illinois Nov-89 573 Missouri Jan-96 803 South Carolina Jan-47 870 Arkansas Apr-97 847 Illinois Jan-96 660 Missouri Oct-97 864 South Carolina Dec-95 479 Arkansas Jan-02 630 Illinois Aug-96 636 Missouri May-99 843 South Carolina Mar-98 213 California Jan-47 773 Illinois Oct-96 406 Montana Jan-47 605 South Dakota Jan-47 415 California Jan-47 224 Illinois Jan-02 402 Nebraska Jan-47 901 Tennessee Jan-47 916 California Jan-47 779 Illinois Mar-07 308 Nebraska Jan-55 615 Tennessee Jan-54 714 California Jan-51 331 Illinois Oct-07 702 Nevada Jan-47 423 Tennessee Sep-95 805 California Jan-57 219 Indiana Jan-47 775 Nevada Dec-98 931 Tennessee Sep-97 209 California Jan-58 317 Indiana Jan-47 603 New Hampshire Jan-47 865 Tennessee Nov-99 408 California Jan-59 812 Indiana Jan-47 201 New Jersey Jan-47 731 Tennessee Feb-01 707 California Jan-59 765 Indiana Feb-97 609 New Jersey Jan-57 214 Texas Jan-47 619 California Jan-82 260 Indiana Jan-02 908 New Jersey Nov-90 512 Texas Jan-47 818 California Jan-84 574 Indiana Jan-02 732 New Jersey Jun-97 713 Texas Jan-47 510 California Sep-91 319 Iowa Jan-47 973 New Jersey Jun-97 915 Texas Jan-47 310 California Nov-91 515 Iowa Jan-47 856 New Jersey Jun-99 817 Texas Jan-53 909 California Nov-92 712 Iowa Jan-47 551 New Jersey Dec-01 806 Texas Jan-57 562 California Jan-97 641 Iowa Jul-00 848 New Jersey Dec-01 409 Texas Nov-82 760 California Mar-97 563 Iowa Mar-01 862 New Jersey Dec-01 903 Texas Nov-90 626 California Jun-97 316 Kansas Jan-47 505 New Mexico Jan-47 210 Texas Nov-92 650 California Aug-97 913 Kansas Jan-47 575 New Mexico Oct-07 972 Texas Sep-96 530 California Nov-97 785 Kansas Jul-97 212 New York Jan-47 281 Texas Nov-96 925 California Mar-98 620 Kansas Feb-01 315 New York Jan-47 254 Texas May-97 949 California Apr-98 502 Kentucky Jan-47 518 New York Jan-47 940 Texas May-97 323 California Jun-98 606 Kentucky Jan-55 716 New York Jan-47 830 Texas Jul-97 831 California Jul-98 270 Kentucky Apr-99 914 New York Jan-47 956 Texas Jul-97 559 California Nov-98 859 Kentucky Apr-00 516 New York Jan-51 832 Texas Jan-99 661 California Feb-99 364 Kentucky Jan-09 607 New York Jan-54 361 Texas Feb-99 858 California Jun-99 504 Louisiana Jan-47 718 New York Sep-84 469 Texas Jul-99 951 California Jul-04 318 Louisiana Jan-57 917 New York Jan-92 936 Texas Feb-00 424 California Aug-06 225 Louisiana Aug-98 646 New York Jul-99 979 Texas Feb-00 657 California Sep-08 337 Louisiana Oct-99 347 New York Oct-99 682 Texas Oct-00 303 Colorado Jan-47 985 Louisiana Feb-01 631 New York Nov-99 430 Texas Feb-03 719 Colorado Mar-88 207 Maine Jan-47 845 New York Jun-00 325 Texas Apr-03 970 Colorado Apr-95 301 Maryland Jan-47 585 New York Nov-01 432 Texas Apr-03 720 Colorado Jun-98 410 Maryland Oct-91 704 North Carolina Jan-47 801 Utah Jan-47 203 Connecticut Jan-47 240 Maryland Jun-97 919 North Carolina Jan-54 435 Utah Sep-97 860 Connecticut Aug-95 443 Maryland Jun-97 910 North Carolina Nov-93 385 Utah Mar-09 302 Delaware Jan-47 413 Massachusetts Jan-47 336 North Carolina Dec-97 802 Vermont Jan-47 202 DC Jan-47 617 Massachusetts Jan-47 252 North Carolina Mar-98 340 Virgin Islands Jun-97 305 Florida Jan-47 508 Massachusetts Jul-88 828 North Carolina Mar-98 703 Virginia Jan-47 813 Florida Jan-53 781 Massachusetts Sep-97 980 North Carolina Apr-01 804 Virginia Jun-73 904 Florida Jul-65 978 Massachusetts Sep-97 701 North Dakota Jan-47 540 Virginia Jul-95 407 Florida Apr-88 339 Massachusetts May-01 670 Northern Marianas Is. Jul-97 757 Virginia Jul-96 941 Florida May-95 351 Massachusetts May-01 216 Ohio Jan-47 571 Virginia Mar-00 954 Florida Sep-95 774 Massachusetts May-01 419 Ohio Jan-47 434 Virginia Jun-01 352 Florida Dec-95 857 Massachusetts May-01 513 Ohio Jan-47 276 Virginia Sep-01 561 Florida May-96 313 Michigan Jan-47 614 Ohio Jan-47 206 Washington Jan-47 850 Florida Jun-97 517 Michigan Jan-47 330 Ohio Mar-96 509 Washington Jan-57 786 Florida Mar-98 616 Michigan Jan-47 937 Ohio Sep-96 360 Washington Jan-95 727 Florida Jul-98 906 Michigan Jan-61 440 Ohio Aug-97 253 Washington Apr-97 863 Florida Sep-99 810 Michigan Dec-93 740 Ohio Dec-97 425 Washington Apr-97 321 Florida Nov-99 248 Michigan May-97 234 Ohio Oct-00 304 West Virginia Jan-47 386 Florida Feb-01 734 Michigan Dec-97 567 Ohio Jan-02 414 Wisconsin Jan-47 754 Florida Aug-01 231 Michigan Jun-99 405 Oklahoma Jan-47 715 Wisconsin Jan-47 772 Florida Feb-02 989 Michigan Apr-01 918 Oklahoma Jan-53 608 Wisconsin Jan-55 239 Florida Mar-02 586 Michigan Sep-01 580 Oklahoma Nov-97 920 Wisconsin Jul-97 404 Georgia Jan-47 269 Michigan Jul-02 503 Oregon Jan-47 262 Wisconsin Sep-99 912 Georgia Jan-54 947 Michigan Sep-02 541 Oregon Nov-95 307 Wyoming Jan-47 706 Georgia May-92 218 Minnesota Jan-47 971 Oregon Oct-00 770 Georgia Aug-95 612 Minnesota Jan-47 215 Pennsylvania Jan-47 678 Georgia Jan-98 507 Minnesota Jan-54 412 Pennsylvania Jan-47 Source: North American Numbering Plan Administrator. Note: Implementation dates after 2007 are scheduled dates. Table 18.1 18 - 3 Table 18.2 Area Code Assignments (1999-2007) Implementation Previous Added Location Date 1 Code Code Texas (Houston) Jan-99 713 832 California Feb-99 805 661 Texas Feb-99 512 361 Arizona Mar-99 602 480 Arizona Mar-99 602 623 Kentucky Apr-99 502 270 Mississippi Apr-99 601 662 Alberta May-99 403 780 Missouri May-99 314 636 Michigan Jun-99 616 231 Pennsylvania Jun-99 610 484 California Jun-99 619 858 New Jersey Jun-99 609 856 New York (Manhattan) Jul-99 212 646 Pennsylvania Jul-99 215 267 Texas (Dallas) Jul-99 214 469 Florida Sep-99 941 863 Wisconsin Sep-99 414 262 New York Oct-99 718 347 Louisiana Oct-99 318 337 Florida Nov-99 407 321 New York Nov-99 516 631 Tennessee Nov-99 423 865 Texas Feb-00 409 936 Texas Feb-00 409 979 Minnesota Feb-00 612 763 Minnesota Feb-00 612 952 Virginia Mar-00 703 571 Kentucky Apr-00 606 859 New York Jun-00 914 845 Iowa Jul-00 515 641 Georgia Aug-00 912 229 Georgia Aug-00 912 478 Oregon Oct-00 503 971 Texas Oct-00 817 682 Ohio Oct-00 330 234 Kansas Feb-01 316 620 Louisiana Feb-01 504 985 Tennessee Feb-01 901 731 Florida Feb-01 904 386 Ontario Mar-01 416 647 Iowa Mar-01 319 563 North Carolina Apr-01 704 980 Michigan Apr-01 517 989 Massachusetts May-01 508 774 Massachusetts May-01 617 857 Massachusetts May-01 781 339 Massachusetts May-01 978 351 Pennsylvania May-01 484 835 2 Pennsylvania May-01 267 445 3 18 - 4 Table 18.2 Area Code Assignments (1999-2007) Virginia Jun-01 804 434 Ontario Jun-01 905 289 Alabama Jun-01 334 251 Arizona Jun-01 520 928 Florida Aug-01 954 754 Pennsylvania Aug-01 412 878 Virginia Sep-01 540 276 Puerto Rico Sep-01 787 939 Michigan Sep-01 810 586 British Columbia Nov-01 604 778 New York Nov-01 716 585 New Jersey Dec-01 201 551 New Jersey Dec-01 732 848 New Jersey Dec-01 973 862 Ohio Jan-02 419 567 Illinois Jan-02 847 224 Indiana Jan-02 219 260 Indiana Jan-02 219 574 Arkansas Jan-02 501 479 Florida Feb-02 561 772 Florida Mar-02 941 239 Michigan Jul-02 616 269 Michigan Sep-02 248 947 Texas Feb-03 903 430 Texas Apr-03 915 325 Texas Apr-03 915 432 California Jul-04 909 951 Mississippi Mar-05 601 769 Dominican Republic Aug-05 809 829 Georgia May-06 706 762 California Aug-06 310 424 Ontario Oct-06 519 226 Quebec Nov-06 514 438 Illinois Mar-07 815 779 Illinois Oct-07 630 331 New Mexico Oct-07 505 575 California Sep-08 714 657 Kentucky Jan-09 270 364 Utah Mar-09 801 385 Note: For years 1984 - 1998, see Industry Analysis Division, Wireline Competition Bureau, Trends in Telephone Service (August 2003). 1 Implemenation dates after 2007 are scheduled dates. 2 The NANPA was able to reclaim area code 835. See Planning Letter 344 at NeuStar.com. 3 The NANPA was able to reclaim area code 445. See Planning Letter 332 at NeuStar.com. Source: North American Numbering Plan Administrator (NANPA), which can be accessed at www.nanpa.com. 18 - 5 Table 18.3 Telephone Numbers Assigned for Toll-Free Service (800, 888, 877, 866) Working Miscellaneous Total Spare Numbers Year Month Numbers Numbers 1 Numbers Still Available 1993 December 3,155,955 731,438 3,887,393 3,822,607 1994 December 4,948,605 763,235 5,711,840 1,998,160 1995 December 6,700,576 286,487 6,987,063 722,937 1996 December 9,527,982 945,671 10,473,653 5,216,347 1997 December 12,980,714 996,449 13,977,163 1,712,837 1998 December 16,200,883 965,466 17,166,349 6,503,651 1999 December 19,677,001 1,101,964 20,778,965 2,891,035 2000 December 23,022,015 1,178,096 24,200,111 7,449,889 2001 December 23,453,029 1,027,973 24,481,002 7,168,998 2002 December 22,496,215 1,051,232 23,547,447 8,102,553 2003 December 21,108,662 941,520 22,050,182 9,599,818 2004 December 22,159,440 1,145,661 23,305,101 8,344,899 2005 December 22,474,643 957,835 23,432,478 8,217,522 2006 December 22,709,753 756,808 23,466,561 8,183,439 2007 December 23,902,118 585,864 24,487,982 7,322,018 Note: For individual month assignments through June 2003, see Industry Analysis and Technology Division, Wireline Competition Bureau, Trends in Telephone Service (August 2003). Chart 18.1 Working Toll-Free Numbers (Numbers in Millions) 1 Toll-free (800) service was initially offered by AT&T in 1967. On May 1, 1993, procedures for routing toll- free calls were changed and 800 numbers were made "portable" so customers who switched service providers could retain their numbers. Due to the growth in demand for toll-free numbers, a new toll-free calling code, 888, was added in March 1996, which made it possible to assign about 8 million new toll-free numbers. A third toll- free calling code, 877, was added in April 1998; and a fourth toll-free code, 866, was added in July 2000. 2 Miscellaneous numbers include those in the 800, 888, 877, and 866 service management systems maintained by Database Service Management, Inc., and categorized as reserved, assigned but not yet activated, recently disconnected, or suspended. 3 SMS800 freed up all unused numbers contained in certain blocks of numbers that were reserved for the provision of certain mobile radio telecommunications (pager) services within a specified geographic area. These numbers were in NPA 800 and had NXXs in the range of NX2 where ‘N’ = 2 through 9 and ‘X’ = 0 for 1 and the numbers ended in a state code. http://www.sms800.com/PublicContent.aspx?Text=2008&URL=Shared+Documents%2fPublic%2fNews%2f200 8&Site=Public, visited February 10, 2008. 0.0 5.0 10.0 15.0 20.0 25.0 Numbers 3.2 4.9 6.7 9.5 13.0 16.2 19.7 23.0 23.5 22.5 21.1 22.2 22.5 22.7 23.9 Dec 1993 Dec 1994 Dec 1995 Dec 1996 Dec 1997 Dec 1998 Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 18 - 6 Table 18.4 Telephone Numbers Assigned for 800 Toll-Free Service 1 Total Spare Toll-Free Working Miscellaneous Toll-Free Numbers Toll-Free Toll-Free Numbers Still Year Month Numbers Numbers 2 Assigned Available 1996 March 6,907,098 293,244 7,200,342 509,658 June 6,986,821 324,899 7,311,720 398,280 September 7,119,167 310,562 7,429,729 280,271 December 7,272,819 343,905 7,616,724 93,276 1997 March 7,402,769 305,362 7,708,131 1,869 June 7,415,591 293,802 7,709,393 607 September 7,427,717 280,668 7,708,385 1,615 December 7,429,160 267,429 7,696,589 13,411 1998 March 7,455,240 249,964 7,705,204 4,796 June 7,480,468 227,041 7,707,509 2,491 September 7,489,271 219,080 7,708,351 1,649 December 7,487,529 215,267 7,702,796 7,204 1999 March 7,498,527 204,515 7,703,042 6,958 June 7,502,118 207,061 7,709,179 821 September 7,523,302 185,363 7,708,665 1,335 December 7,505,737 202,416 7,708,153 1,847 2000 March 7,516,391 193,246 7,709,637 363 June 7,570,082 139,444 7,709,526 474 September 7,572,091 137,705 7,709,796 204 December 7,566,810 132,887 7,699,697 10,303 2001 March 7,434,621 264,967 7,699,588 10,412 June 7,357,279 242,106 7,599,385 110,615 September 7,383,111 164,881 7,547,992 162,008 December 7,370,055 184,689 7,554,744 155,256 2002 March 7,181,636 400,955 7,582,591 127,409 June 7,234,847 282,005 7,516,852 193,148 September 7,200,821 177,723 7,378,544 331,456 December 7,210,159 203,268 7,413,427 296,573 2003 March 7,182,120 224,536 7,406,656 303,344 June 7,171,068 234,576 7,405,644 304,356 September 7,031,806 222,846 7,254,652 455,348 December 7,089,752 260,807 7,350,559 359,441 2004 March 7,187,381 234,719 7,422,100 287,900 June 7,181,216 187,107 7,368,323 341,677 September 7,262,915 197,252 7,460,167 249,833 December 7,332,085 208,368 7,540,453 169,547 2005 March 7,267,936 234,679 7,502,615 207,385 June 7,163,402 425,206 7,588,608 121,392 September 7,160,678 495,326 7,656,004 53,996 December 7,317,165 277,052 7,594,217 115,783 2006 March 7,416,046 197,083 7,613,129 96,871 June 7,330,416 317,525 7,647,941 62,059 September 7,419,137 279,471 7,698,608 11,392 December 7,445,535 207,672 7,653,207 56,793 2007 March 7,559,307 140,686 7,699,993 10,007 June 7,546,532 153,063 7,699,595 10,405 September 7,597,883 102,117 7,700,000 10,000 December 7,736,774 3 123,226 7,860,000 10,000 3 1 For data before 1996, see Table 18.4 of the Februrary 2007 edition of Trends in Telephone Service. 2 See Notes to Table 18.3. 3 See Notes to Table 18.3. 18 - 7 Table 18.5 Telephone Numbers Assigned for 888 Toll-Free Service Working Miscellaneous Total Spare Numbers Year Month Numbers Numbers 1 Numbers Still Available 1996 March 267,874 568,574 836,448 7,143,552 June 922,849 544,079 1,466,928 6,513,072 September 1,641,519 590,345 2,231,864 5,748,136 December 2,255,163 601,766 2,856,929 5,123,071 1997 March 2,857,608 661,164 3,518,772 4,461,228 June 3,660,984 681,981 4,342,965 3,637,035 September 4,776,688 774,431 5,551,119 2,428,881 December 5,551,554 729,020 6,280,574 1,699,426 1998 March 6,167,479 728,415 6,895,894 1,084,106 June 6,591,764 665,496 7,257,260 722,740 September 6,898,718 612,254 7,510,972 469,028 December 7,146,159 515,009 7,661,168 318,832 1999 March 7,278,531 495,904 7,774,435 205,565 June 7,428,424 231,697 7,660,121 319,879 September 7,601,867 211,318 7,813,185 166,815 December 7,643,158 324,405 7,967,563 12,437 2000 March 7,685,423 230,035 7,915,458 64,542 June 7,789,986 140,658 7,930,644 49,356 September 7,806,252 173,588 7,979,840 160 December 7,789,188 177,328 7,966,516 13,484 2001 March 7,616,189 355,451 7,971,640 8,360 June 7,548,761 270,198 7,818,959 161,041 September 7,508,100 203,518 7,711,618 268,382 December 7,452,071 190,727 7,642,798 337,202 2002 March 6,964,624 577,910 7,542,534 437,466 June 6,629,862 354,771 6,984,633 995,367 September 6,682,043 92,050 6,774,093 1,205,907 December 6,610,191 154,015 6,764,206 1,215,794 2003 March 6,408,723 324,558 6,733,281 1,246,719 June 6,228,846 251,701 6,480,547 1,499,453 September 5,818,266 216,862 6,035,128 1,944,872 December 5,711,949 250,662 5,962,611 2,017,389 2004 March 5,680,105 133,824 5,813,929 2,166,071 June 5,640,743 128,141 5,768,884 2,211,116 September 5,716,957 210,068 5,927,025 2,052,975 December 5,563,469 384,320 5,947,789 2,032,211 2005 March 5,465,594 159,097 5,624,691 2,355,309 June 5,306,927 296,729 5,603,656 2,376,344 September 5,314,969 221,122 5,536,091 2,443,909 December 5,265,331 196,817 5,462,148 2,517,852 2006 March 5,049,966 321,175 5,371,141 2,608,859 June 4,930,939 387,726 5,318,665 2,661,335 September 4,923,018 282,840 5,205,858 2,774,142 December 4,894,774 154,764 5,049,538 2,930,462 2007 March 4,865,839 172,035 5,037,874 2,942,126 June 4,892,896 211,491 5,104,387 2,875,613 September 5,014,039 143,278 5,157,317 2,822,683 December 5,075,256 134,928 5,210,184 2,769,816 1 See Table 18.3 notes. 18 - 8 Table 18.6 Telephone Numbers Assigned for 877 Toll-Free Service Working Miscellaneous Total Spare Numbers Year Month Numbers Numbers 1 Numbers Still Available 1998 June 552,037 209,967 762,004 7,217,996 September 1,072,046 206,714 1,278,760 6,701,240 December 1,567,195 235,190 1,802,385 6,177,615 1999 March 2,141,228 329,044 2,470,272 5,509,728 June 2,899,466 410,026 3,309,492 4,670,508 September 3,755,361 436,433 4,191,794 3,788,206 December 4,528,106 575,143 5,103,249 2,876,751 2000 March 5,436,297 598,702 6,034,999 1,945,001 June 6,317,507 402,858 6,720,365 1,259,635 September 6,539,180 496,015 7,035,195 944,805 December 6,391,285 719,333 7,110,618 869,382 2001 March 6,289,079 469,980 6,759,059 1,220,941 June 6,094,898 715,097 6,809,995 1,170,005 September 6,163,297 489,084 6,652,381 1,327,619 December 6,214,863 345,468 6,560,331 1,419,669 2002 March 6,174,529 340,472 6,515,001 1,464,999 June 6,016,107 267,320 6,283,427 1,696,573 September 5,656,158 275,722 5,931,880 2,048,120 December 5,448,276 421,984 5,870,260 2,109,740 2003 March 5,132,413 579,240 5,711,653 2,268,347 June 4,791,792 376,236 5,168,028 2,811,972 September 4,617,147 170,787 4,787,934 3,192,066 December 4,536,366 191,410 4,727,776 3,252,224 2004 March 4,528,716 163,856 4,692,572 3,287,428 June 4,550,870 146,826 4,697,696 3,282,304 September 4,537,840 214,197 4,752,037 3,227,963 December 4,551,486 254,082 4,805,568 3,174,432 2005 March 4,590,227 139,089 4,729,316 3,250,684 June 4,498,452 232,477 4,730,929 3,249,071 September 4,476,657 193,315 4,669,972 3,310,028 December 4,424,365 212,543 4,636,908 3,343,092 2006 March 4,387,383 178,974 4,566,357 3,413,643 June 4,227,659 203,501 4,431,160 3,548,840 September 4,216,739 221,090 4,437,829 3,542,171 December 4,158,082 191,476 4,349,558 3,630,442 2007 March 4,160,134 126,236 4,286,370 3,693,630 June 4,176,830 168,005 4,344,835 3,635,165 September 4,186,296 140,506 4,326,802 3,653,198 December 4,236,995 151,687 4,388,682 3,591,318 1 See Table 18.3 notes. 18 - 9 Table 18.7 Telephone Numbers Assigned for 866 Toll-Free Service Working Miscellaneous Total Spare Numbers Year Month Numbers Numbers 1 Numbers Still Available 2000 September 672,250 155,646 827,896 7,152,104 December 1,274,732 148,548 1,423,280 6,556,720 2001 March 1,652,602 361,888 2,014,490 5,965,510 June 1,944,520 362,880 2,307,400 5,672,600 September 2,256,792 308,801 2,565,593 5,414,407 December 2,416,040 307,089 2,723,129 5,256,871 2002 March 2,640,414 321,530 2,961,944 5,018,056 June 2,864,605 219,232 3,083,837 4,896,163 September 2,977,379 244,297 3,221,676 4,758,324 December 3,227,589 271,965 3,499,554 4,480,446 2003 March 3,461,686 299,700 3,761,386 4,218,614 June 3,486,674 420,477 3,907,151 4,072,849 September 3,609,244 265,446 3,874,690 4,105,310 December 3,770,595 238,641 4,009,236 3,970,764 2004 March 3,966,922 231,683 4,198,605 3,781,395 June 4,281,378 263,560 4,544,938 3,435,062 September 4,476,150 281,577 4,757,727 3,222,273 December 4,712,400 298,891 5,011,291 2,968,709 2005 March 5,015,324 267,412 5,282,736 2,697,264 June 5,047,314 487,471 5,534,785 2,445,215 September 5,259,730 352,226 5,611,956 2,368,044 December 5,467,782 271,423 5,739,205 2,240,795 2006 March 5,613,475 211,021 5,824,496 2,155,504 June 5,803,923 205,051 6,008,974 1,971,026 September 6,078,119 160,737 6,238,856 1,741,144 December 6,201,362 212,896 6,414,258 1,565,742 2007 March 6,355,241 207,073 6,562,314 1,417,686 June 6,555,756 240,460 6,796,216 1,183,784 September 6,685,581 219,067 6,904,648 1,075,352 December 6,853,093 176,023 7,029,116 950,884 1 See Table 18.3 notes. 18 - 10 Table 18.8 Number of Digits Necessary to Dial Local and Toll Calls in the U.S. (As of December 2007) Local Calls Toll Calls Toll Calls Within Same Between Within Same Between Require State Area Code Area Codes Area Code Area Codes Dialing 1 + Alabama 7 1 10 2 1 + 10 1 + 10 Yes Alaska 7 1 + 10 1 + 10 1 + 10 Yes Arizona 7 10 1 + 10 1 + 10 Yes Arkansas 7 10 1 + 10 1 + 10 Yes California 7 3 1 + 10 7 3 1 + 10 No Colorado 7 4 10 1 + 10 1 + 10 Yes Connecticut 7 5 10 1 + 10 1 + 10 Yes Delaware 7 10 1 + 10 1 + 10 Yes District of Columbia 7 10 NA 1 + 10 Yes Florida 7 6 10 1 + 10 1 + 10 Yes Georgia 7 7 10 1 + 10 1 + 10 Yes Hawaii 7 NA 1 + 10 1 + 10 Yes Idaho 7 7 1 + 10 1 + 10 Yes Illinois 7 8 1 + 10 1 + 10 1 + 10 Yes Indiana 7 10 1 + 10 1 + 10 Yes Iowa 7 10 1 + 10 1 + 10 Yes Kansas 7 10 1 + 10 1 + 10 Yes Kentucky 7 10 9 1 + 10 1 + 10 Yes Louisiana 7 10 1 + 10 1 + 10 Yes Maine 7 1 + 10 7 1 + 10 No Maryland 10 10 1 + 10 1 + 10 Yes Massachusetts 10 10 10 1 + 10 1 + 10 Yes Michigan 7 11 10 1 + 10 1 + 10 Yes Minnesota 7 10 12 1 + 10 1 + 10 Yes Mississippi 7 13 10 1 + 10 1 + 10 Yes Missouri 7 14 10 1 + 10 1 + 10 Yes Montana 7 7 1 + 10 1 + 10 Yes Nebraska 7 7 1 + 10 1 + 10 Yes Nevada 7 10 1 + 10 1 + 10 Yes New Hampshire 7 1 + 10 7 1 + 10 No New Jersey 10 15 1 + 10 10 15 1 + 10 No New Mexico 7 10 1 + 10 1 + 10 Yes New York 7 16 1 + 10 7 16 1 + 10 No North Carolina 7 17 10 1 + 10 1 + 10 Yes North Dakota 7 7 1 + 10 1 + 10 Yes Ohio 7 18 10 1 + 10 1 + 10 Yes Oklahoma 7 7 1 + 10 1 + 10 Yes Oregon 10 19 10 1 + 10 1 + 10 Yes Pennsylvania 10 20 1 + 10 21 10 20 1 + 10 21 No Rhode Island 7 1 + 10 7 1 + 10 No South Carolina 7 10 1 + 10 1 + 10 Yes South Dakota 7 7 1 + 10 1 + 10 Yes Tennessee 7 10 22 1 + 10 1 + 10 Yes Texas 7 23 10 1 + 10 1 + 10 Yes Utah 7 24 10 25 1 + 10 1 + 10 Yes Vermont 7 1 + 10 1 + 10 1 + 10 Yes Virginia 7 26 10 1 + 10 1 + 10 Yes Washington 7 27 10 1 + 10 1 + 10 Yes West Virginia 7 7 1 + 10 1 + 10 Yes Wisconsin 7 1 + 10 1 + 10 1 + 10 Yes Wyoming 7 7 1 + 10 1 + 10 Yes NA - Not Applicable. Source: NPA database. The database is available at www.nanpa.com/area_codes/index.html. 18 - 11 Notes to Table 18.8 1 In area code 659, 10-digit dialing is used. 2 In area code 659, 1+10-digit dialing is used. 3 In area codes 424, 657 and 310, 1+10-digit dialing is used. 4 In area codes 303 and 720, 10-digit dialing is used. 5 In area codes 475 and 959, 10-digit dialing is used. 6 In area codes 305, 321, 407, 689, 754, 786, and 954, 10-digit dialing is used. 7 In area codes 404, 470, 678, 762, 706 and 770, 10-digit dialing is used. 8 In area codes 224, 331, 872, 464, 447, 815, 779, 630 and 847, 1+ 10-digit dialing is used. 9 In area codes 270, 364 and 502, 7-digit dialing is used. 10 In area code 413, 7-digit dialing is used. 11 In area codes 248, 679 and 947, 10-digit dialing is used. 12 In area codes 218, 320, and 507, 7-digit dialing is used. 13 In area codes 601 and 769, 10-digit dialing is used. 14 In area codes 557 and 975, 10-digit dialing is used. 15 In area codes 609, 856, and 908, 7-digit dialing is used. 16 In area codes 212, 347, 646, 718, and 917, 1+10 digit dialing is used. 17 In area codes 704, 980 and 984, 10-digit dialing is used. 18 In area codes 234, 283, 330, 380, 419, and 567, 10-digit dialing is used. 19 In area code 541, 7-digit dialing is used. 20 In area codes 570, 717, and 814, 7-digit dialing is used. 21 In some area codes, local calls to some other area codes may be dialed using 10 digits. 22 In area codes 615 and 931, 7-digit dialing is used. 23 In area codes 214, 281, 430, 469, 682, 713, 817, 832, 903, and 972, 10-digit dialing is used. 24 In area code 385, 10-digit dialing is used. 25 In area code 435, 7-digit dialing is used. 26 In area codes 571 and 703, 10-digit dialing is used. 27 In area code 564, 10-digit dialing is used. 18 - 12 19 - 1 19 Universal Service 1. Overview There are four universal service support mechanisms: 1) High Cost, 2) Low Income, including Lifeline and Link-Up, 3) Schools and Libraries, and 4) Rural Health Care. 1 High Cost support enables carriers with above-average costs to recover some of these costs from the support mechanisms, allowing these carriers to lower their end-user rates and/or to receive less money from state universal service support mechanisms. The Lifeline program promotes increased telephone subscribership by providing low- income households with discounts on the monthly cost of telephone service. The Link-Up America program promotes telephone subscribership by helping low-income households pay the initial costs of commencing telephone service. Schools and Libraries support enables eligible schools and libraries to obtain eligible services, including telecommunications services, at discounted rates. Rural Health Care support allows rural health care providers to purchase telecommunications services at comparable urban rates. Table 19.1 shows universal service support disbursements for 2006. 2 Chart 19.1 shows this information graphically for 2006. Table 19.2 and Chart 19.2 show the type of service providers that received universal service support in 2006. 2. High Cost The High Cost support mechanisms include embedded high-cost loop support (HCLS), 3 safety net additive support (SNAS), safety valve support (SVS), local switching support (LSS), forward-looking high-cost model support (HCMS), interstate access support (IAS) for price-cap carriers, and interstate common line support (ICLS) for rate-of-return carriers. 4 HCLS provides assistance to companies with above average non-traffic-sensitive local loop costs – terminology that refers to the costs of providing loops connecting customers and 1 Additional information on universal service mechanisms is available in the Universal Service Monitoring Report (December 2007). See http://www.fcc.gov/wcb/iatd/monitor.html. 2 The figures used in this table are for the calendar year and include disbursements that were paid out in 2006. 3 This was formerly referred to as the Universal Service Fund, and still bears that name in the Commission rules. It is now referred to as high-cost loop support to avoid confusion with the new, more comprehensive universal service support mechanisms that the Commission developed to implement the 1996 Act. See 47 C.F.R. ง 36.601. 4 Prior to July 1, 2004, rate-of-return carriers were eligible to receive long-term support (LTS). Since that date, LTS was merged into ICLS. 19 - 2 their serving telephone company central office. In addition, SNAS provides assistance to companies that have large increases in telecommunications plant in service. SVS provides additional assistance to rural carriers that make substantial investment after acquiring exchanges. LSS provides assistance to LECs with study areas of 50,000 or fewer access lines to help defray their higher per-line switching costs. HCMS provides assistance for non-rural carriers based on their forward-looking costs of providing supported services as determined by the Commission's cost model. The IAS mechanism provides support to price-cap carriers to replace the implicit support previously collected through interstate access charges. The ICLS mechanism converts support implicit in the access rate structure of rate-of-return carriers to explicit and portable support. ICLS recovers any shortfall between the allowed common line revenues of rate of return carriers and their subscriber line charge revenues. As noted above, LTS was merged into ICLS as of July 1, 2004. Table 19.3 shows HCLS, LTS, LSS, HCMS, IAS, ICLS, SNAS, and SVS payments from 1986 to 2007. Table 19.4 shows payments by state for 2006. Table 19.5 shows high-cost support payments to incumbent LECs and competitive eligible telecommunications carriers (CETCs) from 1996 to the present. Chart 19.4 shows the percent of high-cost support received by CETCs. Table 19.6 shows high-cost support payments by state for 2006 to ILECs and CETCs and also to rural and non-rural carriers. 3. Low-Income Support: Lifeline and Link-Up The Lifeline program promotes increased telephone subscribership by providing low- income households with discounts on the monthly cost of telephone service. The Link-Up America program increases telephone subscribership by helping low-income households pay the initial costs of commencing telephone service. The Lifeline program was created in 1984, and the Link-Up program was created in 1987. For both of these programs, the rules were later modified to make the distribution of low- income support competitively and technologically neutral by allowing all eligible telecommunications carriers, including wireless carriers, to receive support for providing Lifeline and Link-Up service. In June 2000, the Commission further expanded the Lifeline and Link-Up programs to address the needs of households on tribal lands. 5 Eligibility requirements for Lifeline and Link-Up vary from state to state. In a state that has its own Lifeline program, the state may create its own eligibility requirements for the federal Lifeline program. Those criteria must be based solely on income or factors directly related to income. In addition, a state commission must ensure that its qualification criteria are reasonably designed to reach eligible residents of tribal lands within the state. In those states that do not have their own Lifeline program, known as federal default states, Lifeline eligibility requirements are set by the FCC. In federal default states, households must certify that they participate in at least one of the following seven federal programs: Medicaid, food stamps, Supplemental Security Income (SSI), federal public housing assistance, the Low-Income Home 5 Federal-State Joint Board on Universal Service; Promoting Deployment and Subscribership in Unserved and Underserved Areas, Including Tribal and Insular Areas, Twelfth Report and Order, and Further Notice of Proposed Rulemaking, CC Docket No. 96-45, FCC 00-208, 15 FCC Rcd 12,208 (2000). 19 - 3 Energy Assistance Program (LIHEAP), the National School Lunch Program’s free lunch program, or Temporary Assistance to Needy Families. By June 2005, consumers may also be able to qualify if their income is at or below 135% of the federal poverty guidelines. Eligible consumers living on tribal lands can receive federal Lifeline support if they (a) meet their state’s Lifeline eligibility requirements; (b) certify that they are enrolled in one of the seven federal programs listed above; or (c) participate in one of the following federal assistance programs: Bureau of Indian Affairs (BIA) general assistance program, tribally administered Temporary Assistance for Needy Families (TANF), or Head Start (meeting the income- qualifying standard). Under the Commission’s rules, there are four tiers of federal Lifeline support. 6 The first tier represents a monthly waiver of the federal subscriber line charge, which ranges between $3.50 and $6.50, varying by state and the carrier providing service. Second-tier support is an additional $1.75 per-month reduction in the basic local rate. All Lifeline subscribers receive at least the first two tiers of federal support. The third tier of federal support is based on the amount of additional support mandated by the relevant state or otherwise provided by carriers. Federal support is available to match one-half of the tier-three support provided, up to a maximum of $1.75 in federal support. Eligible subscribers living on tribal lands also qualify to receive a fourth tier of Lifeline support. Tier-four support provides up to an additional $25 per month although all subscribers on tribal lands must pay at least $1 per month. The Commission’s Link-Up program provides qualified low-income individuals with a federally financed 50% discount on initial connection charges up to $30. Link-Up beneficiaries also may choose to schedule deferred payments of up to $200 over a one-year period, with the customary interest charges paid through federal support. Eligible subscribers living on tribal lands may receive an additional discount of up to $70 to cover 100% of the charges between $60 and $130. Table 19.7 shows the minimum, maximum and average monthly Lifeline support as of March 31, 2007, by state. The table contains both federal and state support, and indicates the additional contribution from the federal program to reduce local rates where states have authorized statewide or carrier specific intrastate local rate reductions. Table 19.8 contains historical Lifeline subscriber and Link-Up beneficiary data for 1987 through 2006. Table 19.9 present tribal and non-tribal lifeline subscriber and Link-Up beneficiary data by state for 2006. Table 19.10 and Chart 19.5 contain annual historical low-income support payments for the years 1988 through 2006. Table 19.11 shows low-income support payments by state or jurisdiction for 2006. Table 19.12 shows low-income support payments to ILECs and CETCs from 1996 through 2006. Chart 19.6 shows the percent of low-income support received by CETCs. 6 In addition, the Lifeline program compensates eligible telecommunication carriers for toll limitation service (TLS). 19 - 4 4. Schools and Libraries The schools and libraries support mechanism also known as the “E Rate” enables schools and libraries to obtain eligible services at discounted rates. Eligible schools and libraries receive telecommunications services, Internet access, and internal connections at discounts that range from 20 percent to 90 percent. The level of the discount is generally based on the percentage of students eligible for the national school lunch program, or in the case of libraries, the percentage of students eligible for the national school lunch program in the school district where the library is located. In addition, schools and libraries located in rural areas receive an additional discount. Table 19.13 shows funding commitments and disbursements to schools and libraries by funding year since 1998. The commitments and disbursements are shown by the type of service funded (internal connections, Internet access, and telecommunications). Chart 19.7 graphically shows the total schools’ and libraries’ funds committed and disbursed. Table 19.14 shows, on a state-by-state basis, funding commitments to schools and libraries for the July 1, 2005 through June 30, 2006 Funding Year. 5. Rural Health Care The Rural Health Care support mechanism enables health care providers in rural areas to pay no more than their urban counterparts for similar telecommunications services necessary for the provision of health care. Eligible rural health care providers can also receive a 25% discount off the monthly cost of Internet access reasonably related to the health care needs of the facility. Additionally, rural health care providers in entirely rural states are eligible to receive a 50% discount off the monthly cost of advanced telecommunications and information services reasonably related to the health care needs of the facility. Further, mobile rural health care providers utilizing satellite service can receive support for the difference between the rate for the satellite service and the rate for an urban wireline service with a similar bandwith. Table 19.15 and Chart 19.8 show rural health care fund disbursements by service speed since 1998. Table 19.16 shows rural health care fund disbursements by service speed and on a state-by-state basis for the funding period July 1, 2005 through June 30, 2006. 6. Contributions to the Universal Service Fund Carriers contribute to universal service support mechanisms based on interstate and international end-user revenues. Since November 1999, all contributions to the USF are based on interstate end-user revenues. Table 19.17 shows interstate and intrastate contribution rates since the first quarter of 1998. Table 19.18 shows changes in the shares of contributions over time by type of service provider. Shares have changed because of differential pricing, growth trends, mergers, the removal of aDSL from the contribution base and wireless carriers now reporting greater shares of interstate revenue. Mechanism Percent of Total Percent of Total High-Cost Support $4,096 61.8 % $4,287 61.6 % High-Cost Loop Support 1,309 19.8 1,402 20.2 Safety Net Additive Support 29 0.4 38 0.6 Safety-Valve 1 0.0 3 0.0 High-Cost Model Support 358 5.4 346 5.0 Long Term Support 4 0.1 0 0.0 Interstate Common Line Support 1,266 19.1 1,392 20.0 Interstate Access Support 681 10.3 645 9.3 Local Switching Support 448 6.8 460 6.6 820 12.4 823 11.8 School and Libraries 1,669 25.2 1,808 26.0 Rural Health Care 41 0.6 37 0.5 All Universal Service Support $6,626 100.0 % $6,955 100.0 % Table 19.1 Universal Service Support Mechanisms: 2006 & 2007 (Dollars in Millions) Source: Universal Service Administration Company (USAC). Disbursements 2006 2007 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 the respective calendar year (2006 or 2007). 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. Disbursements Distribution of Universal Service Payments: 2007 Chart 19.1 Low-Income Support Low Income 11.8% High Cost 61.6% Rural Health Care 0.5% Schools & Libraries 26.0% 19 - 5 High Cost Low Income Rural Health Care Schools and Libraries Total Incumbent Local Exchange Carriers $3,116,405 $705,596 $5,192 $579,532 $4,406,726 66.5 % Non-Traditional Providers 1 0 0 8 444,167 444,175 6.7 Wireless Providers 2 964,824 61,750 6,629 84,248 1,117,451 16.9 Competitive Local Exchange Carriers 3 15,092 53,013 4,225 355,038 427,368 6.4 Internet Service Providers 0 0 1,248 89,095 90,343 1.4 Long Distance Providers 4 0 0 23,230 74,900 98,130 1.5 Other Providers 5 0 0 65 42,075 42,140 0.6 Total $4,096,321 $820,359 $40,597 $1,669,056 $6,626,333 100.0 % 2 Wireless providers include cellular, PCS and other mobile providers. 4 Long distance providers include interexchange, operator service, toll resale, pre-paid card and other toll providers. Source: Compiled from data provided to the FCC by Universal Service Adminstrative Company (USAC). Universal Service Support Received by Service Provider Type: 2006 5 Other providers' services include paging and messaging, private service, satellite service, specialized mobile service and wireless data. Percent of Total Table 19.2 Universal Service Support Received by Service Provider Type: 2006 (Dollars in Thousands) Chart 19.2 1 Non-traditional providers provide eligible software, hardware, and network devices. 3 Competitive local exchange carriers include competitive access providers, local resale, other local and shared tenant service providers. Incumbent Local Exchange Carriers 66.5% Non-Traditional Providers 6.7% Wireless Providers 16.9% Internet Service Providers 1.4% Competitive Local Exchange Carriers 6.4% Long Distance Providers 1.5% Other Providers 0.6% 19 - 6 High Cost Low Income Rural Health Care Schools and Libraries Total Incumbent Local Exchange Carriers $3,108,230 $702,011 $7,080 $625,561 $4,442,882 63.9 % Non-Traditional Providers 1 0 0 10 400,980 400,990 5.8 Wireless Providers 2 1,158,673 61,911 5,559 119,042 1,345,185 19.3 Competitive Local Exchange Carriers 3 19,830 58,839 2,502 409,149 490,319 7.1 Internet Service Providers 0 0 1,734 109,815 111,549 1.6 Long Distance Providers 4 0 0 19,112 88,710 107,822 1.6 Other Providers 5 0 0 1,380 54,703 56,083 0.8 Total $4,286,733 $822,761 $37,377 $1,807,961 $6,954,832 100.0 % 2 Wireless providers include cellular, PCS and other mobile providers. 4 Long distance providers include interexchange, operator service, toll resale, pre-paid card and other toll providers. Source: Compiled from data provided to the FCC by Universal Service Adminstrative Company (USAC). Universal Service Support Received by Service Provider Type: 2007 5 Other providers' services include paging and messaging, private service, satellite service, specialized mobile service and wireless data. Percent of Total Table 19.2 Universal Service Support Received by Service Provider Type: 2007 -- Continued (Dollars in Thousands) Chart 19.2 1 Non-traditional providers provide eligible software, hardware, and network devices. 3 Competitive local exchange carriers include competitive access providers, local resale, other local and shared tenant service providers. Incumbent Local Exchange Carriers 63.9% Non-Traditional Providers 5.8% Wireless Providers 19.3% Internet Service Providers 1.6% Competitive Local Exchange Carriers 7.1% Long Distance Providers 1.6% Other Providers 0.8% 19 - 7 Year High-Cost Loop Support Safety Net Additive Support Safety Valve Support High-Cost Model Support Long-Term Support* Interstate Common Line Support Interstate Access Support Local Switching Support Total Support 1986 $56 - - - - - - - $56 1987 126 - - - - - - - 126 1988 183 - - - - - - - 183 1989 265 - - - $219 - - - 483 1990 339 - - - 263 - - - 602 1991 485 - - - 272 - - - 757 1992 609 - - - 306 - - - 915 1993 705 - - - 323 - - - 1,028 1994 725 - - - 347 - - - 1,072 1995 750 - - - 382 - - - 1,132 1996 763 - - - 426 - - - 1,188 1997 794 - - - 470 - - - 1,263 1998 827 - - - 473 - - $390 1,690 1999 864 - - - 473 - - 380 1,718 2000 874 - - $219 478 - $279 385 2,235 2001 927 - - 206 492 - 577 390 2,592 2002 1,045 - - 233 493 $173 615 376 2,935 2003 1,085 $9 $0 234 504 415 622 396 3,265 2004 1,137 12 0 273 275 716 642 414 3,468 2005 1,219 15 4 292 0 1,149 691 426 3,796 2006 1,309 29 1 358 4 1,266 681 448 4,096 2007 1,402 38 3 346 0 1,392 645 460 4,287 Note: Detail may not appear to add to totals due to rounding. - Support mechanism did not exist in that year. * Long-Term Support was merged into Interstate Common Line Support in July 2004. Values in subsequent years are adjustments to payments made in previous years. Sources: National Exchange Carrier Association (1986-1997), Universal Service Administrative Company (1998-2007). Total High-Cost Support Fund Payments (In Millions of Dollars) Table 19.3 High-Cost Support Fund Payment History Chart 19.3 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Millio n s o f D o lla r s 19 - 8 High-Cost Loop Support Safety Net Additive Support Safety Valve Support High-Cost Model Support Long-Term Loop Support Interstate Common Line Support Interstate Access Support Local Switching Support Total Support Alabama $22,575 $527 $0 $45,684 $0 $21,215 $19,577 $6,393 $115,971 Alaska 68,915 641 9 0 0 67,512 0 16,509 153,586 American Samoa 562 0 0 0 0 1,660 0 514 2,736 Arizona 39,727 475 -37 0 0 12,010 20,503 10,337 83,015 Arkansas 67,148 371 0 0 0 49,007 7,760 8,221 132,506 California 41,365 265 0 0 0 20,966 39,800 3,661 106,058 Colorado 33,934 162 0 0 0 20,649 20,363 4,430 79,538 Connecticut 0 0 0 0 0 885 576 687 2,148 Delaware 0 0 0 0 0 0 261 0 261 District of Columbia 0 0 0 0 0 0 0 0 0 Florida 11,987 0 0 0 0 9,216 56,637 3,767 81,607 Georgia 36,912 1,030 0 0 0 32,441 24,684 12,650 107,717 Guam 7,500 0 0 0 0 9,205 0 0 16,705 Hawaii 21,238 13 0 0 0 14,904 2,453 2,189 40,797 Idaho 19,957 611 0 0 0 9,191 15,773 6,597 52,130 Illinois 16,699 963 0 0 0 27,796 11,545 10,766 67,769 Indiana 12,573 603 0 0 0 15,048 24,826 10,407 63,457 Iowa 27,017 3,419 18 0 2 40,422 6,280 28,468 105,625 Kansas 104,909 3,226 0 0 0 56,317 6,555 19,183 190,190 Kentucky 28,594 560 0 17,992 0 26,517 18,854 6,591 99,107 Louisiana 73,616 468 0 0 1 33,475 12,886 6,537 126,983 Maine 9,053 105 0 2,112 0 16,324 150 9,206 36,951 Maryland 283 90 0 0 0 692 2,559 921 4,547 Massachusetts 74 13 0 0 0 258 1,805 677 2,827 Michigan 26,183 126 0 0 4 21,660 648 10,318 58,938 Minnesota 43,695 898 0 0 0 48,746 3,932 22,622 119,894 Mississippi 30,506 370 0 198,420 0 16,375 24,534 5,828 276,033 Missouri 38,571 618 0 0 0 29,722 10,660 6,518 86,089 Montana 25,275 218 0 24,526 0 19,388 879 7,873 78,159 Nebraska 23,208 1,203 0 13,215 0 22,135 6,832 15,178 81,771 Nevada 7,150 279 0 0 0 6,207 10,841 6,777 31,254 New Hampshire 306 32 0 0 0 2,171 1,986 3,582 8,077 New Jersey 0 0 0 0 0 270 288 720 1,279 New Mexico 28,265 166 0 0 0 14,692 11,434 10,971 65,528 New York 7,995 854 0 0 0 10,266 16,940 12,867 48,922 North Carolina 12,213 0 0 0 0 31,218 31,498 6,540 81,469 North Dakota 27,467 330 107 0 0 32,255 986 19,756 80,903 Northern Mariana Islands 0 0 0 0 0 0 337 479 816 Ohio 10,045 494 0 0 0 12,749 13,603 4,691 41,582 Oklahoma 58,359 501 0 0 0 46,465 2,582 15,722 123,629 Oregon 25,159 218 0 0 0 18,440 19,848 8,585 72,250 Pennsylvania 2,402 92 0 0 0 33,960 23,013 6,048 65,514 Puerto Rico 136 0 0 0 4,474 118,711 0 0 123,321 Rhode Island 0 0 0 0 0 0 35 0 35 South Carolina 26,191 1,872 0 0 0 36,204 12,113 5,514 81,895 South Dakota 35,972 1,961 9 3,278 0 30,139 39 18,073 89,471 Tennessee 13,120 931 0 0 0 21,912 9,670 6,180 51,814 Texas 103,040 582 0 0 0 59,783 48,393 18,926 230,723 Utah 7,592 359 87 0 0 9,770 2,531 3,834 24,174 Vermont 7,216 458 0 10,088 0 6,463 2,428 4,185 30,838 Virgin Islands 10,744 0 0 0 0 14,506 0 0 25,250 Virginia 3,136 785 0 0 0 7,762 62,282 5,545 79,510 Washington 25,767 34 0 0 0 26,682 42,196 8,083 102,763 West Virginia 16,323 119 0 27,868 0 2,184 20,117 3,730 70,341 Wisconsin 34,481 2,160 462 0 -4 66,801 264 30,045 134,209 Wyoming 13,862 184 0 14,330 0 12,469 6,490 10,303 57,637 Total $1,309,017 $29,390 $655 $357,514 $4,477 $1,265,818 $681,247 $448,203 $4,096,321 Source: The data are derived from individual company payments reported on the USAC web site. Note : The reason some values are negative is that support amounts include prior period adjustments. Table 19.4 High-Cost Support Payments by State: 2006 (In Thousands of Dollars) 19 - 9 High-Cost Loop Support Safety Net Additive Support Safety Valve Support High-Cost Model Support Long-Term Loop Support Interstate Common Line Support Interstate Access Support Local Switching Support Total Support Alabama $19,813 $444 $0 $44,671 $0 $20,017 $20,269 $6,244 $111,459 Alaska 69,647 821 0 0 0 73,803 0 17,086 161,356 American Samoa -2 0 0 0 0 2,203 0 1,169 3,370 Arizona 28,894 366 0 0 0 12,298 19,899 9,463 70,919 Arkansas 67,830 447 0 0 0 50,158 165 7,693 126,294 California 34,513 264 0 0 0 20,996 40,628 4,238 100,638 Colorado 36,580 128 0 0 1 21,672 18,641 5,029 82,051 Connecticut 0 0 0 0 0 183 531 549 1,264 Delaware 0 0 0 0 0 0 245 0 245 District of Columbia 0 0 0 0 0 0 0 0 0 Florida 10,719 0 0 0 0 8,278 59,948 3,362 82,308 Georgia 35,824 895 0 0 0 40,385 23,574 11,958 112,636 Guam 1,440 0 0 0 0 9,351 0 0 10,792 Hawaii 30,201 0 0 0 0 17,718 2,561 1,384 51,864 Idaho 21,210 675 0 0 0 10,825 15,467 5,893 54,069 Illinois 15,429 703 0 0 0 29,017 10,999 11,119 67,267 Indiana 17,983 761 0 0 0 19,993 22,851 10,146 71,734 Iowa 36,210 4,109 15 0 0 46,828 8,077 30,871 126,109 Kansas 126,593 3,338 0 0 0 66,889 6,111 19,546 222,477 Kentucky 29,938 632 0 16,827 0 25,177 17,392 6,965 96,931 Louisiana 97,899 1,200 0 0 0 43,744 13,412 6,876 163,131 Maine 8,287 109 0 2,117 0 16,287 95 9,672 36,567 Maryland 252 91 0 0 0 809 2,492 563 4,207 Massachusetts -1 13 0 0 0 81 1,660 545 2,299 Michigan 29,077 178 0 0 0 25,652 674 11,661 67,241 Minnesota 49,390 3,346 23 0 0 52,956 3,897 22,832 132,444 Mississippi 34,538 633 0 197,320 0 20,644 24,210 6,058 283,404 Missouri 46,400 1,391 0 0 0 33,092 9,462 7,891 98,235 Montana 26,247 214 0 20,580 0 21,734 864 7,644 77,282 Nebraska 33,029 1,107 0 11,094 0 32,404 9,268 19,276 106,178 Nevada 6,306 277 0 0 0 5,891 10,376 6,783 29,634 New Hampshire 275 32 0 0 0 2,782 1,835 4,440 9,365 New Jersey 0 0 0 0 0 510 270 884 1,664 New Mexico 29,496 184 0 0 0 17,819 10,642 9,247 67,388 New York 6,415 1,104 0 0 0 12,384 18,234 14,405 52,542 North Carolina 12,529 0 0 0 0 29,843 29,047 6,454 77,872 North Dakota 27,579 1,684 95 0 0 35,178 962 19,273 84,771 Northern Mariana Islands 0 0 0 0 0 0 444 1,186 1,630 Ohio 9,664 1,624 0 0 0 17,515 12,450 4,952 46,205 Oklahoma 61,814 1,822 0 0 0 46,235 2,361 16,952 129,185 Oregon 28,239 417 0 0 0 22,437 20,134 9,743 80,970 Pennsylvania 2,004 69 0 0 0 25,914 21,718 5,846 55,552 Puerto Rico 0 0 0 0 0 135,026 0 0 135,026 Rhode Island 0 0 0 0 0 0 31 0 31 South Carolina 23,041 1,751 0 0 0 33,035 11,175 5,184 74,186 South Dakota 40,116 2,430 116 2,445 0 33,215 31 14,746 93,098 Tennessee 12,294 504 0 0 0 23,071 9,793 6,633 52,295 Texas 114,466 805 0 0 0 67,070 44,274 19,120 245,735 Utah 6,298 111 159 0 0 10,656 2,535 4,695 24,454 Vermont 6,950 451 0 9,881 0 8,206 2,400 3,520 31,408 Virgin Islands 11,136 0 0 0 0 14,548 0 0 25,685 Virginia 3,584 324 0 0 0 8,377 61,719 5,545 79,549 Washington 30,202 51 0 0 0 33,365 25,637 8,250 97,505 West Virginia 9,863 121 0 27,594 0 2,410 19,473 3,884 63,345 Wisconsin 36,896 2,519 2,562 0 0 68,891 256 30,730 141,853 Wyoming 15,373 318 0 13,734 0 14,340 5,802 11,448 61,014 Total $1,402,482 $38,462 $2,968 $346,264 $1 $1,391,912 $644,991 $459,654 $4,286,733 Source: The data are derived from individual company payments reported on the USAC web site. Table 19.4 - Continued High-Cost Support Payments by State: 2007 (In Thousands of Dollars) Note : The reason some values are negative is that support amounts include prior period adjustments. 19 - 10 Table 19.5 ILECs CETCs Total 1996 $1,188 $0 $1,188 0.0 % 1997 1,263 0 1,263 0.0 1998 1,690 0 1,690 0.0 1999 1,717 1 1,718 0.0 2000 2,233 1 2,235 0.1 2001 2,575 17 2,592 0.7 2002 2,889 46 2,935 1.6 2003 3,136 130 3,265 4.0 2004 3,153 316 3,468 9.1 2005 3,169 628 3,796 16.5 2006 3,116 980 4,096 23.9 2007 3,108 1,179 4,287 27.5 High-Cost Support Received by Incumbent LECs and CETCs (In Millions of Dollars) Notes: ILECs is an abbreviation for incumbent local exchange carriers. CETCs is an abbreviation for competitive eligible telecommunications carriers. CETCs include both wireless and wireline carriers. Percent of High-Cost Support Received by CETCs Chart 19.4 Percent CETCs Sources: National Exchange Carrier Association (1996-1997). Universal Service Administrative Company (1998-2007). 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 19 - 11 ILECs 1 CETCs 2 Rural Carriers Non-Rural Carriers Total Alabama $99,577 $16,394 14.1 % $49,053 $66,918 57.7 % $115,971 Alaska 98,115 55,471 36.1 120,861 32,725 21.3 153,586 American Samoa 1,308 1,428 52.2 1,912 825 30.1 2,736 Arizona 67,143 15,872 19.1 65,310 17,706 21.3 83,015 Arkansas 101,917 30,589 23.1 113,999 18,507 14.0 132,506 California 105,001 1,056 1.0 67,938 38,120 35.9 106,058 Colorado 71,033 8,505 10.7 56,407 23,132 29.1 79,538 Connecticut 2,148 0 0.0 1,572 576 26.8 2,148 Delaware 261 0 0.0 0 261 100.0 261 District of Columbia 0 0 NA 0 0 NA 0 Florida 72,188 9,419 11.5 42,245 39,361 48.2 81,607 Georgia 99,093 8,625 8.0 82,987 24,731 23.0 107,717 Guam 9,360 7,345 44.0 12,848 3,857 23.1 16,705 Hawaii 22,582 18,214 44.6 31,198 9,598 23.5 40,797 Idaho 52,130 0 0.0 52,130 0 0.0 52,130 Illinois 67,768 1 0.0 57,921 9,848 14.5 67,769 Indiana 57,897 5,560 8.8 40,351 23,106 36.4 63,457 Iowa 63,386 42,239 40.0 86,542 19,083 18.1 105,625 Kansas 135,354 54,836 28.8 170,735 19,456 10.2 190,190 Kentucky 73,438 25,669 25.9 55,745 43,362 43.8 99,107 Louisiana 85,110 41,873 33.0 104,034 22,949 18.1 126,983 Maine 23,752 13,199 35.7 28,790 8,160 22.1 36,951 Maryland 4,544 3 0.1 1,988 2,559 56.3 4,547 Massachusetts 2,827 0 0.0 1,022 1,805 63.8 2,827 Michigan 43,794 15,144 25.7 52,530 6,408 10.9 58,938 Minnesota 79,602 40,292 33.6 102,986 16,908 14.1 119,894 Mississippi 136,387 139,647 50.6 47,544 228,490 82.8 276,033 Missouri 85,966 123 0.1 81,295 4,795 5.6 86,089 Montana 66,634 11,525 14.7 52,257 25,902 33.1 78,159 Nebraska 58,280 23,492 28.7 57,471 24,300 29.7 81,771 Nevada 24,927 6,327 20.2 21,949 9,304 29.8 31,254 New Hampshire 7,820 257 3.2 6,081 1,996 24.7 8,077 New Jersey 1,279 0 0.0 1,279 0 0.0 1,279 New Mexico 50,313 15,215 23.2 56,665 8,864 13.5 65,528 New York 45,613 3,309 6.8 38,814 10,108 20.7 48,922 North Carolina 74,033 7,437 9.1 53,994 27,476 33.7 81,469 North Dakota 41,368 39,535 48.9 64,869 16,034 19.8 80,903 Northern Mariana Islands 590 226 27.7 734 81 9.9 816 Ohio 41,582 0 0.0 34,210 7,373 17.7 41,582 Oklahoma 107,000 16,630 13.5 116,333 7,297 5.9 123,629 Oregon 62,298 9,952 13.8 52,302 19,948 27.6 72,250 Pennsylvania 64,023 1,491 2.3 51,701 13,813 21.1 65,514 Puerto Rico 29,461 93,860 76.1 0 123,321 100.0 123,321 Rhode Island 35 0 0.0 0 35 100.0 35 South Carolina 81,895 0 0.0 71,936 9,959 12.2 81,895 South Dakota 60,090 29,381 32.8 75,826 13,645 15.3 89,471 Tennessee 50,320 1,494 2.9 43,998 7,815 15.1 51,814 Texas 206,078 24,646 10.7 190,705 40,018 17.3 230,723 Utah 23,912 262 1.1 22,726 1,448 6.0 24,174 Vermont 24,958 5,880 19.1 17,124 13,714 44.5 30,838 Virgin Islands 25,250 0 0.0 25,250 0 0.0 25,250 Virginia 65,675 13,836 17.4 27,186 52,325 65.8 79,510 Washington 58,928 43,835 42.7 55,049 47,714 46.4 102,763 West Virginia 59,664 10,677 15.2 30,754 39,587 56.3 70,341 Wisconsin 83,013 51,196 38.1 106,808 27,400 20.4 134,209 Wyoming 39,687 17,950 31.1 33,329 24,309 42.2 57,637 Total $3,116,405 $979,916 23.9 % $2,839,293 $1,257,032 30.7 % $4,096,321 Figures may not add up due to rounding. NA - Not Applicable 1 ILECs is an abbreviation for incumbent local exchange carriers. 2 CETCs is an abbreviation for competitive eligible telecommunications carriers. CETCs include both wireline and wireless carriers. Source: Universal Service Administrative Company. Table 19.6 High-Cost Support by Type of Carriers: 2006 (In Thousands of Dollars) Percent CETCs 2 Percent Non- Rural Carriers 19 - 12 ILECs 1 CETCs 2 Rural Carriers Non-Rural Carriers Total Alabama $93,093 $18,365 16.5 % $44,483 $66,976 60.1 % $111,459 Alaska 95,194 66,161 41.0 120,011 41,345 25.6 161,356 American Samoa 816 2,554 75.8 1,628 1,742 51.7 3,370 Arizona 59,034 11,884 16.8 53,800 17,119 24.1 70,919 Arkansas 98,643 27,651 21.9 114,531 11,763 9.3 126,294 California 99,768 871 0.9 63,910 36,729 36.5 100,638 Colorado 72,782 9,269 11.3 60,300 21,751 26.5 82,051 Connecticut 1,264 0 0.0 732 531 42.0 1,264 Delaware 245 0 0.0 0 245 100.0 245 District of Columbia 0 0 NA 0 0 NA 0 Florida 65,072 17,236 20.9 38,648 43,661 53.0 82,308 Georgia 105,219 7,418 6.6 88,859 23,777 21.1 112,636 Guam 5,242 5,550 51.4 5,953 4,839 44.8 10,792 Hawaii 23,868 27,997 54.0 39,158 12,706 24.5 51,864 Idaho 50,115 3,954 7.3 52,764 1,306 2.4 54,069 Illinois 65,657 1,610 2.4 57,342 9,925 14.8 67,267 Indiana 64,040 7,694 10.7 49,707 22,028 30.7 71,734 Iowa 70,971 55,138 43.7 101,848 24,260 19.2 126,109 Kansas 139,568 82,909 37.3 195,875 26,602 12.0 222,477 Kentucky 71,232 25,699 26.5 56,161 40,770 42.1 96,931 Louisiana 95,552 67,579 41.4 133,782 29,349 18.0 163,131 Maine 23,392 13,174 36.0 28,751 7,816 21.4 36,567 Maryland 4,208 -1 0.0 1,715 2,492 59.2 4,207 Massachusetts 2,299 0 0.0 638 1,660 72.2 2,299 Michigan 45,290 21,951 32.6 58,209 9,032 13.4 67,241 Minnesota 84,231 48,213 36.4 112,254 20,190 15.2 132,444 Mississippi 136,683 146,721 51.8 53,171 230,232 81.2 283,404 Missouri 89,755 8,480 8.6 91,824 6,411 6.5 98,235 Montana 65,544 11,738 15.2 53,746 23,536 30.5 77,282 Nebraska 56,355 49,823 46.9 72,690 33,488 31.5 106,178 Nevada 23,152 6,481 21.9 20,547 9,087 30.7 29,634 New Hampshire 9,170 195 2.1 7,519 1,845 19.7 9,365 New Jersey 1,664 0 0.0 1,664 0 0.0 1,664 New Mexico 53,491 13,897 20.6 57,444 9,944 14.8 67,388 New York 46,766 5,776 11.0 40,362 12,180 23.2 52,542 North Carolina 66,786 11,086 14.2 54,400 23,472 30.1 77,872 North Dakota 45,229 39,542 46.6 67,201 17,570 20.7 84,771 Northern Mariana Islands 610 1,020 62.6 1,333 297 18.2 1,630 Ohio 46,205 0 0.0 39,408 6,798 14.7 46,205 Oklahoma 105,331 23,854 18.5 118,961 10,224 7.9 129,185 Oregon 61,212 19,758 24.4 57,983 22,987 28.4 80,970 Pennsylvania 53,842 1,710 3.1 42,116 13,436 24.2 55,552 Puerto Rico 33,453 101,573 75.2 0 135,026 100.0 135,026 Rhode Island 31 0 0.0 0 31 100.0 31 South Carolina 74,186 0 0.0 65,027 9,159 12.3 74,186 South Dakota 57,400 35,698 38.3 77,466 15,633 16.8 93,098 Tennessee 50,724 1,570 3.0 44,323 7,972 15.2 52,295 Texas 214,894 30,841 12.6 206,409 39,327 16.0 245,735 Utah 24,126 328 1.3 22,994 1,460 6.0 24,454 Vermont 25,402 6,006 19.1 17,599 13,809 44.0 31,408 Virgin Islands 25,685 0 0.0 25,685 0 0.0 25,685 Virginia 62,907 16,642 20.9 27,547 52,002 65.4 79,549 Washington 60,564 36,941 37.9 62,738 34,767 35.7 97,505 West Virginia 52,608 10,737 17.0 24,369 38,976 61.5 63,345 Wisconsin 86,328 55,525 39.1 113,471 28,382 20.0 141,853 Wyoming 41,330 19,685 32.3 37,172 23,842 39.1 61,014 Total $3,108,230 $1,178,503 27.5 % $2,986,228 $1,300,507 30.3 $4,286,733 Figures may not add up due to rounding. NA - Not Applicable 1 ILECs is an abbreviation for incumbent local exchange carriers. 2 CETCs is an abbreviation for competitive eligible telecommunications carriers. CETCs include both wireline and wireless carriers. Source: Universal Service Administrative Company. Percent CETCs 2 Percent Non- Rural Carriers Table 19.6 - Continued High-Cost Support by Type of Carriers: 2007 (In Thousands of Dollars) 19 - 13 Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Alabama $8.25 $8.25 $8.25 $1.50 $3.50 $3.48 $0.75 $1.75 $1.74 $9.00 $10.00 $9.99 $10.50 $13.50 $13.47 Alaska 8.25 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 10.00 10.00 10.00 13.50 13.50 13.50 American Samoa NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Arizona 8.06 8.25 8.21 0.00 3.50 2.60 0.00 1.75 1.30 8.06 10.00 9.51 8.06 13.50 12.11 Arkansas 5.25 8.25 7.45 0.00 3.50 1.27 0.00 1.75 0.64 5.25 10.00 8.08 5.25 13.50 9.36 California 3.98 8.25 6.63 0.00 3.50 2.57 0.00 1.75 1.29 3.98 10.00 7.91 3.98 13.50 10.49 Colorado 8.25 8.25 8.25 0.00 3.50 3.47 0.00 1.75 1.73 8.25 10.00 9.98 8.25 13.50 13.45 Connecticut 7.48 8.25 7.48 1.18 1.18 1.18 0.59 0.59 0.59 8.07 8.84 8.07 9.25 10.02 9.25 Delaware 8.18 8.18 8.18 0.00 0.00 0.00 0.00 0.00 0.00 8.18 8.18 8.18 8.18 8.18 8.18 District of Columbia 5.60 5.60 5.60 3.50 3.50 3.50 1.75 1.75 1.75 7.35 7.35 7.35 10.85 10.85 10.85 Florida 8.06 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 9.81 10.00 10.00 13.31 13.50 13.50 Georgia 6.50 8.25 8.25 0.00 3.50 3.33 0.00 1.75 1.67 6.50 10.00 9.92 6.50 13.50 13.25 Guam 8.25 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 10.00 10.00 10.00 13.50 13.50 13.50 Hawaii 8.25 8.25 8.25 0.00 3.50 0.00 0.00 1.75 0.00 8.25 10.00 8.25 8.25 13.50 8.25 Idaho 6.50 8.25 8.15 0.00 3.50 3.45 0.00 1.75 1.73 6.50 10.00 9.87 6.50 13.50 13.32 Illinois 6.24 8.25 6.63 0.00 3.50 0.06 0.00 1.75 0.03 6.24 10.00 6.65 6.24 13.50 6.71 Indiana 7.27 8.25 7.53 0.00 0.00 0.00 0.00 0.00 0.00 7.27 8.25 7.53 7.27 8.25 7.53 Iowa 5.25 8.25 7.09 0.00 3.50 0.45 0.00 1.75 0.22 5.25 10.00 7.32 5.25 13.50 7.77 Kansas 7.00 8.25 7.31 0.00 3.50 3.37 0.00 1.75 1.68 7.00 10.00 9.00 7.00 13.50 12.36 Kentucky 6.99 8.25 8.13 0.00 3.50 2.58 0.00 1.75 1.29 6.99 10.00 9.42 6.99 13.50 12.01 Louisiana 8.25 8.25 8.25 0.00 3.50 0.52 0.00 1.75 0.26 8.25 10.00 8.51 8.25 13.50 9.02 Maine 8.14 8.25 8.16 0.00 3.50 3.48 0.00 1.75 1.74 8.14 10.00 9.90 8.14 13.50 13.38 Maryland 7.42 8.25 7.42 0.84 3.48 3.48 0.42 1.74 1.74 7.84 9.99 9.16 8.68 13.47 12.64 Massachusetts 8.14 8.25 8.14 3.50 3.50 3.50 1.75 1.75 1.75 9.89 10.00 9.89 13.39 13.50 13.39 Michigan 7.10 8.25 7.29 0.76 3.50 2.16 0.38 1.75 1.08 7.48 10.00 8.37 8.24 13.50 10.53 Minnesota 6.67 8.25 7.15 0.00 3.50 1.89 0.00 1.75 0.95 6.67 10.00 8.09 6.67 13.50 9.99 Mississippi 8.25 8.25 8.25 0.00 3.50 3.33 0.00 1.75 1.66 8.25 10.00 9.91 8.25 13.50 13.24 Missouri 6.50 8.25 7.32 0.00 3.50 3.49 0.00 1.75 1.75 6.50 10.00 9.06 6.50 13.50 12.56 Montana 8.25 8.25 8.25 0.00 3.50 3.03 0.00 1.75 1.51 8.25 10.00 9.76 8.25 13.50 12.79 Nebraska 6.06 8.25 7.11 0.00 3.50 3.41 0.00 1.75 1.71 6.06 10.00 8.82 6.06 13.50 12.23 Nevada 5.53 8.25 6.25 0.00 3.50 1.89 0.00 1.75 0.94 5.53 10.00 7.19 5.53 13.50 9.08 New Hampshire 8.14 8.25 8.15 0.00 0.00 0.00 0.00 0.00 0.00 8.14 8.25 8.15 8.14 8.25 8.15 New Jersey 7.07 8.25 8.02 0.00 3.50 3.48 0.00 1.75 1.74 7.07 10.00 9.76 7.07 13.50 13.24 New Mexico 8.25 8.25 8.25 0.00 3.50 3.35 0.00 1.75 1.67 8.25 10.00 9.92 8.25 13.50 13.27 New York 5.93 8.25 8.02 0.00 3.50 3.17 0.00 1.75 1.59 5.93 10.00 9.60 5.93 13.50 12.78 North Carolina 7.43 8.25 7.88 3.50 3.50 3.50 1.75 1.75 1.75 9.18 10.00 9.63 12.68 13.50 13.13 North Dakota 8.25 8.25 8.25 0.00 3.50 1.64 0.00 1.75 0.82 8.25 10.00 9.07 8.25 13.50 10.71 N. Marianna Islands 8.25 8.25 8.25 0.00 0.00 0.00 0.00 0.00 0.00 8.25 8.25 8.25 8.25 8.25 8.25 Ohio 6.99 8.25 7.31 0.00 3.50 3.49 0.00 1.75 1.74 6.99 10.00 9.06 6.99 13.50 12.55 Oklahoma 1.76 8.25 7.35 0.00 3.50 1.11 0.00 1.75 0.56 1.76 10.00 7.90 1.76 13.50 9.01 Oregon 8.09 8.25 8.25 0.00 3.50 3.47 0.00 1.75 1.74 8.09 10.00 9.99 8.09 13.50 13.46 Pennsylvania 6.62 8.25 7.72 0.00 3.50 1.06 0.00 1.75 0.53 6.62 10.00 8.25 6.62 13.50 9.31 Puerto Rico 8.25 8.25 8.25 3.38 3.50 3.39 1.69 1.75 1.70 9.94 10.00 9.95 13.32 13.50 13.34 Rhode Island 8.14 8.14 8.14 3.50 3.50 3.50 1.75 1.75 1.75 9.89 9.89 9.89 13.39 13.39 13.39 South Carolina 7.38 8.25 8.23 3.50 3.50 3.50 1.75 1.75 1.75 9.13 10.00 9.98 12.63 13.50 13.48 South Dakota 8.08 8.25 8.17 0.00 3.50 0.25 0.00 1.75 0.12 8.08 10.00 8.30 8.08 13.50 8.54 Tennessee 6.84 8.25 8.15 0.00 3.50 3.18 0.00 1.75 1.59 6.84 10.00 9.74 6.84 13.50 12.91 Texas 5.09 8.25 7.19 0.00 3.50 3.43 0.00 1.75 1.71 5.09 10.00 8.91 5.09 13.50 12.34 Utah 8.09 8.25 8.12 0.00 3.50 3.50 0.00 1.75 1.75 8.09 10.00 9.87 8.09 13.50 13.36 Vermont 8.14 8.25 8.17 0.00 3.50 3.50 0.00 1.75 1.75 8.14 10.00 9.92 8.14 13.50 13.41 Virgin Islands NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA Virginia 6.68 8.25 7.51 0.00 3.50 3.19 0.00 1.75 1.59 6.68 10.00 9.10 6.68 13.50 12.29 Washington 6.75 8.25 7.81 0.00 3.50 1.97 0.00 1.75 0.99 6.75 10.00 8.80 6.75 13.50 10.77 West Virginia 6.50 8.25 8.25 0.00 3.50 2.78 0.00 1.75 1.39 6.50 10.00 9.64 6.50 13.50 12.42 Wisconsin 6.81 8.25 7.30 0.00 3.50 1.23 0.00 1.75 0.62 6.81 10.00 7.92 6.81 13.50 9.15 Wyoming 8.25 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 10.00 10.00 10.00 13.50 13.50 13.50 Nationwide $1.76 $8.25 $7.24 $0.00 $3.50 $2.66 $0.00 $1.75 $1.33 $1.76 $10.00 $8.57 $1.76 $13.50 $11.23 Notes: This table reflects only non-tribal support. All averages are weighted averages. 1 Basic federal support includes both Tier 1 and Tier 2 support. See text for definitions. 2 Includes only state support that is matched by federal support. Source: Universal Service Administrative Company. Support 1 Total Federal and State Support 2 Total Federal Additional State Support 2 Support Federal Match Table 19.7 Lifeline Monthly Support by State or Jurisdiction (As of March 31, 2007) Basic Federal 19 - 14 Table 19.8 Lifeline Subscribers and Link-Up Beneficiaries Year Non-Tribal Tribal Total Non-Tribal Tribal Total 1987 1,063,443 7,953 1988 1,828,862 105,758 1989 2,115,288 206,656 1990 2,466,513 513,155 1991 2,984,290 639,645 1992 3,440,216 743,285 1993 3,971,937 737,362 1994 4,423,119 837,964 1995 4,914,056 823,679 1996 5,233,425 808,354 1997 1 5,110,537 NA 1998 5,380,726 2,195,417 1999 5,640,094 1,834,766 2000 5,871,619 18,692 5,890,311 1,689,867 2,038 1,691,905 2001 6,144,089 56,820 6,200,909 1,670,260 23,355 1,693,615 2002 6,518,367 112,191 6,630,558 1,656,768 29,901 1,686,669 2003 6,490,614 147,203 6,637,817 1,653,301 22,289 1,675,590 2004 6,792,695 176,390 6,969,085 1,669,888 41,034 1,710,922 2005 6,883,048 236,458 7,119,506 1,653,101 86,857 1,739,958 2006 2 6,648,267 289,249 6,937,516 1,560,348 99,179 1,659,527 NA - Not Available. 1 Subscriber data were not collected in 1997. Lifeline subscribership data were estimated by USAC. Source: Universal Service Administrative Company. Lifeline Link-Up 2 The reported subscribers and beneficiaries represent USAC data for the time period January 2006 through December 2006, which include true-ups for Lifeline subscribers and Link-Up beneficiaries through March 2007. 19 - 15 Non-Tribal Tribal Total Non-Tribal Tribal Total Alabama 27,478 10 27,488 4,427 0 4,427 Alaska 2,021 35,328 37,349 19 16,030 16,049 American Samoa 590 0 590 17 0 17 Arizona 30,253 47,966 78,219 3,757 8,469 12,226 Arkansas 26,563 4 26,567 6,956 0 6,956 California 2,969,737 451 2,970,188 820,073 1 820,074 Colorado 27,662 8 27,670 1,044 0 1,044 Connecticut 50,879 0 50,879 3,904 0 3,904 Delaware 2,436 0 2,436 334 0 334 District of Columbia 10,305 0 10,305 572 0 572 Florida 144,585 1 144,586 21,324 0 21,324 Georgia 72,947 1 72,948 9,774 0 9,774 Guam 2,742 0 2,742 1,023 0 1,023 Hawaii 5,880 0 5,880 387 0 387 Idaho 31,815 486 32,301 1,596 7 1,603 Illinois 108,526 0 108,526 44,422 0 44,422 Indiana 59,065 0 59,065 22,047 0 22,047 Iowa 69,525 3 69,528 13,027 0 13,027 Kansas 28,375 37 28,412 3,573 0 3,573 Kentucky 69,547 0 69,547 11,154 0 11,154 Louisiana 21,003 1 21,004 3,713 0 3,713 Maine 68,175 467 68,642 15,470 33 15,503 Maryland 4,661 0 4,661 1,180 0 1,180 Massachusetts 109,576 2 109,578 2,161 0 2,161 Michigan 127,070 295 127,365 69,344 25 69,369 Minnesota 69,135 1,187 70,322 18,918 335 19,253 Mississippi 31,514 12 31,526 6,673 1 6,674 Missouri 59,778 11 59,789 8,965 4 8,969 Montana 10,862 6,445 17,307 735 2,111 2,846 Nebraska 22,104 405 22,509 2,306 30 2,336 Nevada 42,546 185 42,731 4,580 14 4,594 New Hampshire 6,241 0 6,241 131 0 131 New Jersey 124,591 0 124,591 6,556 0 6,556 New Mexico 55,696 17,031 72,727 5,076 5,590 10,666 New York 352,901 18 352,919 46,055 0 46,055 North Carolina 126,000 6 126,006 6,139 0 6,139 North Dakota 16,278 7,025 23,303 3,217 2,310 5,527 Northern Mariana Islands 808 0 808 1,310 0 1,310 Ohio 304,944 0 304,944 46,776 0 46,776 Oklahoma 6,712 142,827 149,539 9,718 54,592 64,310 Oregon 50,052 310 50,362 11,975 16 11,991 Pennsylvania 143,824 0 143,824 49,218 0 49,218 Puerto Rico 112,642 0 112,642 18,527 0 18,527 Rhode Island 34,824 0 34,824 762 0 762 South Carolina 25,230 8 25,238 3,944 0 3,944 South Dakota 14,072 17,070 31,142 4,228 4,960 9,188 Tennessee 53,864 0 53,864 5,648 0 5,648 Texas 611,652 717 612,369 138,377 0 138,377 Utah 28,561 371 28,932 1,649 84 1,733 Vermont 24,621 0 24,621 1,084 0 1,084 Virgin Islands 412 0 412 19 0 19 Virginia 20,447 0 20,447 3,710 0 3,710 Washington 125,848 9,643 135,491 62,443 3,869 66,312 West Virginia 5,922 0 5,922 1,285 0 1,285 Wisconsin 86,739 551 87,290 26,680 591 27,271 Wyoming 8,031 367 8,398 2,346 107 2,453 Industry Totals 6,648,267 289,249 6,937,516 1,560,348 99,179 1,659,527 Source: Universal Service Administrative Company. The reported subscribers and beneficiaries represent USAC data for the time period January 2006 through December 2006, which include true-ups for Lifeline subscribers and Link-Up beneficiaries through March 2007. Table 19.9 Lifeline Subscribers and Link-Up Beneficiaries by State or Jurisdiction: 2006 Lifeline Link-Up 19 - 16 Total Year Non-Tribal Tribal TLS 1 PICC 2 Total Non-Tribal Tribal Total 1988 $31,952 $0 $0 $0 $31,952 $1,991 $0 $1,991 $33,943 1989 50,878 0 0 0 50,878 4,480 0 4,480 55,358 1990 62,464 0 0 0 62,464 11,351 0 11,351 73,815 1991 79,104 0 0 0 79,104 13,705 0 13,705 92,809 1992 93,766 0 0 0 93,766 15,342 0 15,342 109,108 1993 109,083 0 0 0 109,083 17,019 0 17,019 126,102 1994 123,284 0 0 0 123,284 18,573 0 18,573 141,857 1995 137,277 0 0 0 137,277 18,392 0 18,392 155,670 1996 148,186 0 0 0 148,186 18,247 0 18,247 166,433 1997 147,579 0 0 0 147,579 13,711 0 13,711 161,290 1998 1 416,504 0 2,700 2,802 422,006 42,463 0 42,463 464,469 1999 438,576 0 3,136 4,450 446,162 33,991 0 33,991 480,153 2000 482,045 508 2,854 3,168 488,575 30,371 62 30,433 519,007 2001 548,421 6,960 3,195 0 558,576 30,314 475 30,788 589,364 2002 623,352 17,955 3,779 0 645,085 30,323 700 31,022 676,108 2003 657,098 24,167 4,425 0 685,690 30,170 515 30,686 716,376 2004 695,200 30,503 5,111 0 730,813 30,899 1,231 32,129 762,943 2005 716,566 45,847 6,218 0 768,631 31,715 2,802 34,517 803,147 2006 704,486 62,068 9,027 0 775,581 30,042 2,842 32,884 808,466 2 Carriers no longer charge residential Presubscribed Interexchange Access Charges (PICCs) as of July 1, 2000. Source: Universal Service Administrative Company (USAC). Table 19.10 Low-Income Support Payments (In Thousands of Dollars) Note: Support payments reported in this table include all low income support disbursed based on commitments for a given year, including all true-ups through March 2007. Support payments reported for 2006 in Table 19.1, 19.2, and 19.12 report disbursements for 2006, regardlesss of the year of the commitments. Lifeline Link Up Lifeline and Link-Up Support Payments (Dollar Amounts in Millions) 1 TLS is an abbreviation for toll limitation service. Chart 19.5 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 Lifeline Payments $32 $51 $62 $79 $94 $109 $123 $137 $148 $148 $422 $446 $489 $559 $645 $686 $731 $769 $776 Link Up Payments $2 $4 $11 $14 $15 $17 $19 $18 $18 $14 $42 $34 $30 $31 $31 $31 $32 $35 $33 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 19 - 17 (In Thousands of Dollars) Lifeline Link-Up Total Non-Tribal Tribal TLS Total Non-Tribal Tribal Total Alabama $3,286 $1 $6 $3,293 $88 $0 $88 $3,381 Alaska 4,784 7,295 72 12,151 1 297 298 12,449 American Samoa 58 0 0 58 1 0 1 59 Arizona 8,947 12,627 68 21,642 79 165 245 21,886 Arkansas 2,577 0 6 2,584 151 0 151 2,735 California 275,994 30 3,871 279,894 14,808 0 14,808 294,703 Colorado 3,323 1 8 3,333 18 0 18 3,351 Connecticut 4,929 0 2 4,931 117 0 117 5,048 Delaware 239 0 0 239 6 0 6 245 District of Columbia 909 0 0 909 6 0 6 915 Florida 17,068 0 80 17,149 530 0 530 17,679 Georgia 8,611 0 32 8,643 226 0 226 8,869 Guam 338 0 0 338 18 0 18 356 Hawaii 595 0 0 596 9 0 9 605 Idaho 3,842 103 13 3,957 24 0 24 3,981 Illinois 8,516 0 43 8,559 969 0 969 9,529 Indiana 5,337 0 58 5,395 527 0 527 5,921 Iowa 6,159 1 414 6,574 283 0 283 6,857 Kansas 3,010 3 53 3,066 63 0 63 3,129 Kentucky 7,708 0 109 7,817 223 0 224 8,040 Louisiana 2,034 0 3 2,038 75 0 75 2,113 Maine 8,146 50 14 8,211 336 1 336 8,547 Maryland 513 0 0 513 28 0 28 541 Massachusetts 13,012 0 1 13,013 15 0 15 13,028 Michigan 12,294 53 643 12,989 1,817 0 1,817 14,807 Minnesota 6,810 146 392 7,347 380 7 387 7,733 Mississippi 3,693 4 6 3,702 144 0 144 3,847 Missouri 6,586 0 151 6,737 159 0 159 6,896 Montana 2,104 1,520 14 3,638 11 34 45 3,682 Nebraska 2,402 71 14 2,487 37 0 38 2,525 Nevada 3,623 14 7 3,645 90 0 90 3,734 New Hampshire 611 0 0 611 2 0 2 614 New Jersey 14,135 0 3 14,138 139 0 139 14,277 New Mexico 8,642 4,433 106 13,182 109 109 218 13,400 New York 40,425 2 13 40,440 682 0 682 41,123 North Carolina 14,562 1 29 14,591 131 0 131 14,722 North Dakota 2,545 1,570 43 4,157 60 129 189 4,346 Northern Mariana Islands 80 0 0 80 11 0 11 91 Ohio 33,157 0 276 33,432 813 0 813 34,245 Oklahoma 14,010 26,619 375 41,005 235 1,645 1,880 42,885 Oregon 6,063 52 140 6,255 167 0 168 6,423 Pennsylvania 14,271 0 2 14,274 978 0 978 15,252 Puerto Rico 13,386 0 0 13,386 417 0 417 13,803 Rhode Island 4,134 0 1 4,136 10 0 10 4,146 South Carolina 2,988 1 15 3,004 70 0 71 3,075 South Dakota 3,128 4,458 143 7,729 87 317 404 8,133 Tennessee 6,125 0 16 6,141 105 0 105 6,246 Texas 65,850 27 614 66,491 2,797 0 2,797 69,288 Utah 3,408 45 26 3,478 21 2 24 3,502 Vermont 2,941 0 3 2,945 15 0 16 2,960 Virgin Islands 59 0 0 59 0 0 0 59 Virginia 2,244 0 2 2,246 67 0 67 2,313 Washington 14,376 2,727 873 17,975 1,164 117 1,281 19,256 West Virginia 684 0 1 685 24 0 24 709 Wisconsin 8,209 132 109 8,450 642 7 649 9,100 Wyoming 1,003 84 155 1,242 58 10 68 1,310 Industry Totals $704,486 $62,068 $9,027 $775,581 $30,042 $2,842 $32,884 $808,466 Source: Universal Service Administrative Company. Table 19.11 Low-Income Support Payments by State or Jurisdiction: 2006 Note: Support payments reported in this table include all low income support disbursed based on commitments for 2006, including all true-ups through March 2007. Support payments reported for 2006 in Table 19.1, 19.2, and 19.12 report disbursements for 2006, regardlesss of the year of the commitments. 19 - 18 Table 19.12 ILECs CETCs Total 1996 $166 $0 $166 0.0 % 1997 161 0 161 0.0 1998 464 0 464 0.0 1999 480 0 480 0.0 2000 519 0 519 0.0 2001 587 2 589 0.3 2002 664 12 676 1.8 2003 692 25 716 3.5 2004 723 40 763 5.3 2005 737 71 809 8.8 2006 706 115 820 14.0 2007 702 121 823 14.7 Percent of Low-Income Support Received by CETCs Chart 19.6 Percent CETCs Source: Universal Service Administrative Company. Low-Income Support Received by ILECs and CETCs (In Millions of Dollars) Notes: ILECs is an abbreviation for incumbent local exchange carriers. CETCs is an abbreviation for competitive eligible telecommunications carriers. CETCs include both wireless and wireline carriers. In 2006, CETCs include temporary ETCs. Most companies that received Hurricane Katrina support were designated as temporary ETCs specifically for the purpose of serving consumers affected by Hurricane Katrina. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 19 - 19 Table 19.13 Schools and Libraries Funding by Type of Service Funds Committed and Disbursed Through June 30, 2007 1 (In Thousands of Dollars) Internal Connections Internet Access Telecommunications Totals Funds Funds Funds Funds Funds Funds Funds Funds Funding Period Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed Jan-98 to Jun-99 $886,118 $797,408 $134,147 $94,910 $675,911 $507,631 $1,696,176 $1,399,948 Jul-99 to Jun-00 1,366,115 1,106,210 149,576 95,743 634,326 452,901 2,150,016 1,654,853 Jul-00 to Jun-01 1,135,671 1,033,050 219,233 135,129 719,350 481,043 2,074,253 1,649,222 Jul-01 to Jun-02 1,208,154 1,007,748 224,624 151,838 774,119 534,810 2,206,896 1,694,396 Jul-02 to Jun-03 1,146,883 794,569 249,755 172,585 849,547 602,371 2,246,184 1,569,526 Jul-03 to Jun-04 1,520,223 1,063,910 278,156 202,803 892,997 646,509 2,691,376 1,913,223 Jul-04 to Jun-05 1,047,963 615,988 241,787 189,185 945,879 677,082 2,235,629 1,482,255 Jul-05 to Jun-06 831,564 392,028 266,293 206,163 962,450 708,569 2,060,307 1,306,759 Jul-06 to Jun-07 583,379 165,199 292,029 142,660 1,035,503 326,433 1,910,912 634,292 1 Because of the appeals process, funding commitments and disbursements can be made after the program years' end. Source: USAC data. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC. Total Schools and Libraries Funds Committed and Disbursed Chart 19.7 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Funds Committed $1.7 $2.2 $2.1 $2.2 $2.2 $2.7 $2.2 $2.1 Funds Disbursed $1.4 $1.7 $1.6 $1.7 $1.6 $1.9 $1.5 $1.3 Jan-98 to Jun-99 Jul-99 to Jun-00 Jul-00 to Jun-01 Jul-01 to Jun-02 Jul-02 to Jun-03 Jul-03 to Jun-04 Jul-04 to Jun-05 Jul-05 to Jun-06 A m ounts in Billions 19 - 20 Internal Connections Internet Access Telecom. and Dedicated Totals Funds Funds Funds Funds Funds Funds Funds Funds State/Territory Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed Alabama $7,976 $6,532 $14,305 $8,996 $12,406 $10,266 $34,687 $25,794 Alaska 664 449 8,440 7,805 9,436 8,270 18,540 16,524 American Samoa 0 0 0 0 0 0 0 0 Arizona 19,664 10,077 8,907 7,532 13,457 7,551 42,029 25,160 Arkansas 3,258 2,144 535 443 14,327 9,661 18,120 12,247 California 162,470 80,975 14,090 9,805 118,481 76,515 295,042 167,295 Colorado 10,468 5,480 1,925 1,397 11,646 8,012 24,039 14,889 Connecticut 3,692 2,226 2,764 2,094 14,751 12,877 21,207 17,198 Delaware 113 35 29 15 754 693 896 744 District of Columbia 892 558 161 112 341 148 1,394 818 Florida 13,336 6,701 13,219 11,009 36,890 30,849 63,445 48,559 Georgia 25,751 11,780 10,186 8,412 31,420 26,680 67,357 46,871 Guam 1,955 989 437 435 1,284 753 3,676 2,176 Hawaii 572 136 658 616 2,794 1,446 4,024 2,199 Idaho 546 285 1,507 1,254 2,376 1,791 4,429 3,330 Illinois 63,961 23,663 3,666 2,355 31,127 23,179 98,753 49,196 Indiana 4,905 919 7,113 5,126 14,302 11,705 26,320 17,750 Iowa 466 144 2,006 1,267 10,505 8,152 12,977 9,562 Kansas 279 59 3,267 2,462 10,832 6,803 14,378 9,324 Kentucky 13,842 5,206 3,220 1,242 14,198 10,510 31,259 16,958 Louisiana 22,919 12,174 5,691 4,545 23,695 18,191 52,305 34,909 Maine 960 177 1,008 916 5,026 4,170 6,994 5,264 Maryland 1,714 224 1,518 857 13,237 7,158 16,469 8,240 Massachusetts 6,471 4,968 5,805 4,178 16,143 10,972 28,419 20,118 Michigan 34,785 3,559 6,298 5,250 28,852 16,679 69,936 25,488 Minnesota 4,035 3,242 5,524 4,316 12,841 11,187 22,401 18,744 Mississippi 18,669 13,076 1,649 925 20,427 16,092 40,745 30,093 Missouri 12,577 6,787 2,976 1,724 18,899 9,516 34,452 18,026 Montana 302 174 957 797 2,482 1,939 3,741 2,910 Nebraska 131 88 992 854 6,786 5,957 7,909 6,899 Nevada 999 327 326 251 4,842 4,329 6,167 4,907 New Hampshire 241 52 652 513 1,101 714 1,994 1,279 New Jersey 15,672 5,008 5,342 3,838 29,455 19,452 50,468 28,298 New Mexico 23,121 10,150 3,524 2,121 9,103 5,809 35,747 18,079 New York 87,994 30,538 10,977 8,036 98,213 71,700 197,184 110,275 North Carolina 26,722 14,742 12,295 10,270 23,997 19,822 63,013 44,834 North Dakota 215 145 163 152 3,169 2,965 3,546 3,262 Northern Mariana Islands 275 275 377 350 502 260 1,154 885 Ohio 13,828 7,679 14,860 13,684 38,196 30,312 66,885 51,675 Oklahoma 27,378 11,626 8,479 6,476 14,788 10,305 50,645 28,408 Oregon 721 642 3,229 2,483 6,551 5,188 10,500 8,313 Pennsylvania 19,449 12,228 10,747 9,161 37,135 30,987 67,331 52,377 Puerto Rico 502 148 1,326 932 501 410 2,329 1,491 Rhode Island 1,522 902 718 657 2,917 2,543 5,157 4,101 South Carolina 18,713 7,187 1,230 801 22,243 19,640 42,186 27,629 South Dakota 1,493 1,065 455 418 3,585 2,979 5,533 4,462 Tennessee 9,103 5,924 29,598 23,925 14,552 12,643 53,252 42,492 Texas 130,326 73,116 18,730 14,036 69,954 53,463 219,009 140,615 Utah 2,577 1,193 722 572 12,300 9,839 15,598 11,605 Vermont 1 0 553 446 1,240 918 1,793 1,364 Virgin Islands 1,083 194 2,353 1,937 625 41 4,062 2,172 Virginia 1,476 648 5,376 4,684 21,429 18,249 28,281 23,581 Washington 4,953 1,896 1,591 1,123 13,835 9,239 20,379 12,259 West Virginia 1,890 309 1,204 946 8,106 6,477 11,199 7,732 Wisconsin 2,658 1,986 2,429 1,440 22,132 10,702 27,219 14,128 Wyoming 1,274 1,223 187 173 2,268 1,857 3,730 3,254 Totals $831,564 $392,028 $266,293 $206,163 $962,451 $708,569 $2,060,307 $1,306,759 1 Because of the appeals process, funding commitments have been made after the program year ended on June 30, 2006. Source: USAC data. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC. Table 19.14 Schools and Libraries Funding by State and by Type of Service Funding Period: July 1, 2005 Through June 30, 2006 (In Thousands of Dollars) Activity Through June 30, 2007 1 19 - 21 Table 19.15 Rural Health Care Fund Disbursements by Service Speed Activity Through June 30, 2007 1 Voice Grade Broadband Other Service Funding 56K to 200K to 1.5Mb or Speed Year 199K 1.49Mb and faster Unknown Total Jan-98 to Jun-99 $202,778 $880,375 $2,292,252 $0 $3,375,405 Jul-99 to Jun-00 452,992 1,073,816 2,719,619 58,132 4,304,559 Jul-00 to Jun-01 613,595 3,015,004 6,685,573 0 10,314,172 Jul-01 to Jun-02 319,539 8,110,537 10,125,267 0 18,555,343 Jul-02 to Jun-03 428,506 10,660,185 10,528,679 0 21,617,369 Jul-03 to Jun-04 477,146 11,353,665 13,572,815 7,559 25,411,185 Jul-04 to Jun-05 588,599 11,798,524 16,997,168 117,111 29,501,402 Jul-05 to Jun-06 805,153 15,266,288 17,965,181 362,936 34,399,557 Jul-06 to Jun-07 114,931 4,681,973 5,508,965 54,021 10,359,890 1 Because of the appeals process, funding commitments and disbursements may be made after the program year ended. Chart 19.8 Rural Health Care Fund Disbursements by Service Speed Source: USAC data. Rollups performed by the Industry Analysis and Technology Division, Wireline Competition Bureau, FCC. $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 Broadband $3.2 $3.8 $9.7 $18.2 $21.2 $24.9 $28.8 $33.2 Voice Grade and Other $0.2 $0.5 $0.6 $0.3 $0.4 $0.5 $0.7 $1.2 Jan-98 to Jun-99 Jul-99 to Jun-00 Jul-00 to Jun-01 Jul-01 to Jun-02 Jul-02 to Jun-03 Jul-03 to Jun-04 Jul-04 to Jun-05 Jul-05 to Jun-06 A m ounts in 19 - 22 Table 19.16 Rural Health Care Fund Disbursements by Service Speed and by State Funding Period: July 1, 2005 Through June 30, 2006 Activity Through June 30, 2007 1 Other Service 200 kbps to 1.5 Mbps Unknown 2 State 1.49 Mbps and Faster Total Alabama $9,617 $272,164 $17,669 $0 $299,451 Alaska 29,522 11,803,472 7,981,818 0 19,814,812 American Samoa 0 0 0 0 0 Arizona 0 55,676 934,938 0 990,613 Arkansas 0 14,621 16,594 0 31,216 California 159,546 19,648 179,714 0 358,908 Colorado 11,261 6,422 89,886 0 107,569 Connecticut 0 0 0 0 0 Delaware 0 0 0 0 0 District of Columbia 0 0 0 0 0 Florida 0 2,654 102,302 0 104,955 Georgia 7,944 68,970 347,466 14,544 438,924 Guam 0 0 0 0 0 Hawaii 0 3,768 180,236 0 184,004 Idaho 0 24,256 69,483 0 93,739 Illinois 5,099 15,680 367,409 0 388,188 Indiana 0 0 101,297 0 101,297 Iowa 58,045 22,593 140,169 30,627 251,434 Kansas 3,600 19,550 142,544 0 165,695 Kentucky 0 21,156 172,537 0 193,693 Louisiana 0 722,293 15,962 0 738,256 Maine 0 3,265 618 0 3,883 Maryland 0 0 0 0 0 Massachusetts 0 1,497 33,878 0 35,375 Michigan 12,051 58,767 639,958 0 710,776 Minnesota 2,702 101,344 1,079,056 64,610 1,247,711 Mississippi 6,375 135,946 53,298 0 195,618 Missouri 0 13,994 62,896 0 76,890 Montana 0 40,410 399,179 0 439,589 Nebraska 0 58,212 1,075,175 0 1,133,386 Nevada 0 0 0 0 0 New Hampshire 0 4,816 0 0 4,816 New Jersey 0 0 0 0 0 New Mexico 0 109,622 122,434 0 232,056 New York 5,701 2,648 18,713 0 27,062 North Carolina 0 0 145,615 0 145,615 North Dakota 24,405 223,542 425,509 0 673,456 Northern Mariana Islands 0 0 0 0 0 Ohio 0 0 60,527 19,560 80,087 Oklahoma 0 88,503 0 2,595 91,098 Oregon 0 0 0 0 0 Pennsylvania 4,846 12,233 38,778 0 55,857 Puerto Rico 0 0 0 0 0 Rhode Island 0 0 0 0 0 South Carolina 0 23,036 25,418 2,597 51,051 South Dakota 1,687 24,137 806,614 233 832,671 Tennessee 0 6,700 159,860 0 166,560 Texas 0 879,592 16,310 0 895,902 Utah 0 118,935 318,209 0 437,145 Vermont 0 22,120 60,533 0 82,653 Virgin Islands 0 41,465 0 0 41,465 Virginia 0 8,090 254,434 0 262,524 Washington 0 3,574 32,381 0 35,954 West Virginia 3,662 12,720 75,790 0 92,172 Wisconsin 459,091 183,097 1,140,415 228,170 2,010,774 Wyoming 0 15,102 59,554 0 74,656 Totals $805,153 $15,266,288 $17,965,181 $362,936 $34,399,557 1 Because of the appeals process, funding commitments have been made after the program year ended on June 30, 2006. Source: USAC data. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC. Voice Grade 2 56 kbps to 2 USAC data contain a short description of the services the health care providers receive. These service descriptions are rolled up into the categories above. Some inferences were made when service speed was not clearly indicated. For example, frame relay was assumed to be broadband in the range of 200 kbps to 1.5 Mbps, even though some frame relay service speeds may be faster. Broadband 2 or Speed 199 kbps 19 - 23 Year 1998 First Quarter 3.19 % 0.72 % Second Quarter 3.14 0.76 Third Quarter 3.14 0.75 Fourth Quarter 3.18 0.75 1999 First Quarter 3.18 0.58 Second Quarter 3.05 0.57 Third Quarter 2.94 0.99 Fourth Quarter (Oct.) 2 2.887 1.10 Fourth Quarter (Nov. & Dec.) 2 5.8995 2000 First Quarter 5.8770 Second Quarter 5.7101 Third Quarter 5.5360 Fourth Quarter 5.6688 2001 First Quarter 6.6827 Second Quarter 6.8823 Third Quarter 6.8941 Fourth Quarter 6.9187 2002 First Quarter 6.8086 Second Quarter 7.2805 Third Quarter 3 7.2805 Fourth Quarter 7.2805 2003 First Quarter 7.2805 Second Quarter 4 9.1 Third Quarter 9.5 Fourth Quarter 9.2 2004 First Quarter 8.7 Second Quarter 8.7 Third Quarter 8.9 Fourth Quarter 8.9 2005 First Quarter 10.7 Second Quarter 11.1 Third Quarter 10.2 Fourth Quarter 10.2 2006 First Quarter 10.2 Second Quarter 10.9 Third Quarter 10.5 Fourth Quarter 9.1 2007 First Quarter 9.7 Second Quarter 11.7 Third Quarter 11.3 Fourth Quarter 11.0 2008 First Quarter 10.2 Second Quarter 11.3 Third Quarter 11.4 4 Beginning with the second quarter of 2003, carriers contribute based on projecte d, collected, end-user interstate and international telecom- munications revenues. Previously, carriers contributed based on historical, gross-billed revenues. The Commission also released an Order and Second Order on Reconsideration, which, inter alia, directed the Wireline Competition Bureau to announce the universal service contribution factor as a percentage rounded up to the nearest tenth of one percent. (See Federal Joint Board on Universal Service, 1998 Biennial Regu- latory 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 Indivi- duals 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, Order and Second Order on Reconsideration, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170, FCC 03-58 (rel. March 14, 2003), at para. 22.) Source: Quarterly Public Notices on universal service contribution factors in CC Docket 96-45. 3 In the Schools First Report and Order, the Commission concluded that unused funds from the schools and libraries support mechanism would be applied to stabilize the collection requirement for universal service for the third and fourth quarters of 2002, and the first quarter of 2003, as necessary. (See Schools and Libraries Universal Service Support Mechanism, CC Docket No. 2-6, First Report and Order, 17 FCC Rcd 11521 (2002). 2 Consistent with the Eighth Report and Order, the Wireline Competition Bureau (formerly Common Carrier Bureau) issued a single universal service contribution factor for November and December 1999. Effective November 1, 1999, this single contribution factor superseded the fourth quarter 1999 contribution factors previously announced by the Bureau on September 10, 1999. See Proposed Fourth Quarter 1999 Universal Service Contribution Factors, CC Docket No. 96-45, Public Notice, DA 99-2109 (Com. Car. Bur., rel. Oct. 8, 1999); See Proposed Fourth Quarter 1999 Universal Service Contribution Factors, CC Docket No. 96-45, Public Notice, DA 99-1857 (Com. Car. Bur., rel. Sept. 10, 1999). Universal Service Fund Contribution Factors Table 19.17 Factors for Intrastate End-User Revenues 1 Quarter Factors for Interstate End-User Revenues 1 Initially, contributions for the schools and libraries and rural health care support mechanisms were based on interstate, international, and intrastate end-user telecommunications revenues, while contributions for high-cost and low-income support mechanisms were based on interstate and international end-user telecommunications revenues. See Federal-State Joint Board on Universal Service , CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 9200-05 (1997). Following a decision by the United States Court of Appeals for the Fifth Circuit, the Commission established a single contribution base for all universal service support mechanisms based on interstate and international revenues. See Federal- State Joint Board on Universal Service, Access Charge Reform , Sixteenth Order on Reconsideration and Eighth Report and Order in CC Docket No. 96-45 and Sixth Report and Order in CC Docket No. 96-262, 15 FCC Rcd 1679, 1685-86, para. 15 (1999) ( Eighth Report and Order). 19 - 24 Preliminary 1/ Service Provider Category 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Regional Bell Operating Companies (RBOCs) 11.7 % 14.4 % 14.3 % 16.2 % 18.3 % 19.9 % 19.9 % 19.8 % 19.8 % 18.3 % 14.1 % 13.2 % Including CLEC Affiliates. Incumbent Local Exchange Carriers (ILECs) 2.6 1.4 1.5 1.7 2.1 2.8 3.2 3.4 3.4 3.4 3.1 2.9 Other Than RBOCs Competitive Local Exchange Carriers (CLECs) Local Resellers and Other Local Carriers Other Than RBOCs 0.8 1.3 2.6 2.2 2.7 3.3 3.5 3.8 4.4 5.0 6.5 6.7 Total: Fixed Local Service Providers 15.1 17.1 18.5 20.1 23.1 26.0 26.6 27.0 27.6 26.7 23.6 22.8 Payphone Providers 0.0 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Wireless Service Providers 3.3 5.1 6.6 9.2 12.0 17.2 24.8 27.8 29.2 33.9 38.4 40.7 RBOC Toll Service Providers 1.7 1.7 2.0 2.3 3.0 3.4 5.0 6.8 16.2 28.1 26.1 24.6 Other Toll Service Providers 79.9 76.0 72.9 68.3 61.9 53.3 43.6 38.5 27.1 11.2 11.9 11.9 81.6 77.7 74.9 70.6 64.9 56.7 48.6 45.2 43.2 39.3 38.0 36.4 Total All Filers 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 1 2 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (June 2007) and FCC 499-Q filings. Chart 19.9 Share of Universal Service Contributions by Principal Type of Contributor Table 19.18 Share of Universal Service Contributions By Principal Type of Contributor Using Traditional Carrier Categories 1 2 Total: Toll Service Providers Q1 For years 1997 through 2002, the percentages are based on shares of reported subject interstate and international end-user billed revenues. The percentages shown for 2003 through 2005 are based on shares of reported subject interstate and international end-user collected revenues. Preliminary percentages shown for 2006 and 2007 are based on projected collected revenues from FCC Form 499-Q filings. Preliminary percentages for the first quarter of 2008 are based on projected collected revenues for that quarter, from the November 1, 2007 FCC Form 499-Q filings. Calculations exclude revenues for calls that both originate and terminate in foreign points. Calculations for years 1999 through 2003 include revenues for all filers. For the purposes of this table, AT&T and MCI filings are classified as RBOC filings as of the first quarter of 2006. Prior to 2004, the FCC Form 499-A asked each filer to identify a single category of communications business that best described its operations. The service provider categories listed on FCC Form 499-A correspond to traditional breakdowns of the industry. Starting in 2004, carriers were allowed to specify more than one category and were allowed to identify themselves as an All Distance service provider. Revenues from these filers have been categorized using the traditional industry classification that best described each company.have been categorized using the traditional industry classification that best described each company. 1997 Other ILECs 2.6% CLECs 0.8% Other Toll Service Providers 79.9% Wireless Service Providers 3.3% RBOCs 11.7% Payphone Providers 0.0% RBOC Toll Service Providers 1.7% Preliminary First Quarter 2008 RBOC Toll Service Providers 24.6% Payphone Providers 0.0% RBOCs 13.2% Wireless Service Providers 40.7% Other Toll Service Providers 11.9% CLECs 6.7% Other ILECs 2.9% 19 - 25 20 - A 20 Appendix A – List of Publications by the Industry Analysis and Technology Division Most recent release dates are shown in parentheses: High-Speed Services for Internet Access: Status as of June 30, 2007 (March 2008). Infrastructure of the Local Operating Companies (October 2000). Updates can be found in Section 10 of the Monitoring Report. Local Telephone Competition: Status as of June 30, 2007 (March 2008). Universal Service Monitoring Report (December 2007). Numbering Resource Utilization in the United States (August 2008). Quality of Service Report of the Local Operating Companies (February 2008). Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (August 2008). State-by-State Telephone Revenues and Universal Service Data (April 2001). Updates can be found in Section 1 of the Monitoring Report. Statistics of Communications Common Carriers, 2005/2006 Edition (June 2008). Statistics of the Long Distance Telecommunications Industry (May 2003). Telecommunications Industry Revenues: 2006 (August 2008). Telecommunications Provider Locator (September 2007). Telephone Penetration by Income by State (March 2008). Telephone Subscribership in the United States (August 2008). Telephone Subscribership on American Indian Reservations and Off-Reservations Trust Lands (May 2003). Trends in Telephone Service (August 2008). 21 - A 21 Appendix B – Sources of Telecommunications Information The information in this report and, in many cases, more detailed information can be downloaded from the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/stats. Printed copies of various statistical reports are available for reference in the FCC's Reference Information Center, Courtyard Level, 445 12th Street, S.W., and from the Commission's duplicating contractor, Best Copy and Printing, Inc., 800-378-3160. Additional information on regulated carriers, including investments, revenues, expenses, and earnings, is contained in the annual Statistics of Communications Common Carriers. The 2004/2005 edition can be found on the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/iatd/socc.html. Filings with the Securities and Exchange Commission, such as the annual reports on Form 10-K, can be downloaded from the U.S. Securities and Exchange Commission web page at www.sec.gov. The names, addresses, and telephone numbers for companies in the telephone industry are published in the Industry Analysis and Technology Division's Telecommunications Provider Locator, which can also be downloaded at www.fcc.gov/wcb/iatd/locator.html. The most recent report was released on September 2007. In April 2001, the Commission began requiring all new and existing telecommunications carriers providing interstate telecommunications services to register with the FCC using the FCC Form 499-A. Carriers file the form with the Commission’s data collection agent, the Universal Service Administrative Company. Copies of the form can be downloaded from the Internet at www.fcc.gov/formpage.html. Information on registered companies can be found on the Internet at http://gullfoss2.fcc.gov/cib/form499/499a.cfm. The information on personal consumption expenditures (Table 3.3) comes from the Bureau of Economic Analysis, National Economic Accounts, Table 2.4.5U. Personal Consumption Expenditures by Type of Product. See www.bea.gov/bea/dn/nipaweb/nipa_underlying/TableView.asp#Mid. The information on consumer expenditures (Table 3.1), employment (Tables 5.1 and 5.2), and price indices (Tables 12.1 - 12.3) comes from the Bureau of Labor Statistics and can be found on the Internet at www.bls.gov. FCC rules require carriers to provide more detailed traffic data about international telephone service than about domestic service. Because of delays in international settlements, such information is typically received by the Commission much later than domestic data and is usually published separately. Tables 6.1 - 6.5 contain summary information on international telephone service. More detailed international data are available from International 21 - B Telecommunications Data and Trends in the International Telecommunications Industry, both of which are published by the International Bureau and are available at www.fcc.gov/wcb/iatd/intl.html. Tables 18.1and 18.2 on area codes come from the North American Numbering Plan Administration (NANPA), which is part of Neustar, Inc. Additional information on NANPA can be found on the Internet at www.nanpa.com. The information on wireless telephone service shown in Tables 11.1 and 11.3 was prepared from data received from CTIA-The Wireless Association TM 1600 16th Street N.W., Washington, D.C. 20036, 202-785-0081. CTIA can be found on the Internet at www.ctia.org. TNS Telecoms (TNS) has donated databases to the Commission containing information on residential phone usage collected from actual consumer telecommunications bills. TNS has granted the Commission permission to use these databases for research purposes and to publish the industry level results. TNS has been monitoring the telecommunications market since 1995 through both the ReQuestฎ consumer survey and Bill Harvestingฎ in the residential market and the BusinessWaveฎ business survey in the business market. Tables 9.5, 9.6, and 14.1 - 14.6 are developed from these databases. For additional information, visit www.tnstelecoms.com or contact them at 1-866-811-TNST or by e-mail at contact@tnstelecoms.com. Their address is 101 Greenwood Avenue, Suite 502, Jenkintown, PA 19046. On September 9, 2004, the Commission released its Fourth Report to the Congress on the Availability of Advanced Telecommunications Capability in the United States. A copy of this can be found on the Commission’s web site at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-208A1.pdf. A copy may also be obtained through from the Commission’s duplicating contractor. Copies of NTIA’s 2007 report entitled, Networked Nation: Broadband in America as well as NTIA’s 2004 report entitled, A Nation Online: Entering the Broadband Age can be obtained through NTIA’s web site at www.ntia.doc.gov or by contacting NTIA’s Office of Public Affairs at (202) 482-7002. Tables 17.1, 17.2, and 17.4 contain information from the ARMIS 43-07 reports for the Bell operating companies. Table 17.3 contains information from the ARMIS 43-05. Individual carrier information can be obtained from the ARMIS web page at www.fcc.gov/wcb/armis. Chart 17.1 shows the number of patents granted for telecommunications. Additional information on U.S. patents can be found on the Internet at www.uspto.gov. The National Exchange Carrier Association (NECA) administers access charge revenue pooling for about 1,150 local telephone companies. Their headquarters is located at 80 South Jefferson Road, Whippany, NJ 07981-1009, and they can be reached at 800-228-8597. NECA’s website can be found on the Internet at www.neca.org. 21 - C The United States Telecom Association (USTA) (1401 H Street N.W., Washington, D.C. 20005, 202-326-7300) represents most incumbent local telephone companies. Like many trade associations, it collects information from each of its members. It publishes and sells various reports including an annual publication called Phone Facts. USTA’s website can be found on the Internet at www.usta.org. Comptel/ALTS was formed in March 2005 by the merger of Comptel/ASCENT and the Association for Local Telecommunications Services (ALTS) and is currently located at 900 17 th Street, N.W., Suite 400, Washington, D.C. 20006, 202-296-6650). They represent facilities- based competitive telecommunications service providers, emerging VOIP providers, integrated communications companies, and their service partners, and can be found on the Internet at http://www.comptel.org. 22 - A 22 Appendix C – Contacting the Report Authors Trends in Telephone Service was prepared by the Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission. Principal authors of the report can be contacted at their electronic mail addresses or by calling the Industry Analysis and Technology Division at 202-418-0940. Users of TTY equipment should call 202- 418-0484. Access Charges .............................................................................................................James Eisner Advanced Telecommunications...................................................James Eisner or Suzanne Mendez Consumer Expenditures......................................................................... James Eisner or Jim Lande Earnings ................................................................................................................. Stephen Steckler Employment and Labor Productivity........................................................................Kenneth Lynch International Telephone Service .......................................................................................Jim Lande Lines and Payphones............................................Alex Belinfante or James Eisner or Craig Stroup Local Telephone Competition.............................................................James Eisner or Ellen Burton Long Distance Telephone Industry...................................................................................Jim Lande Minutes .................................................................................................................... Alex Belinfante Mobile Wireless Service...............................................................................................James Eisner Price Indices for Telephone Service .............................................................................James Eisner Price Levels.......................................................................................................................Jim Lande Residential Telephone Usage....................................................................................Kenneth Lynch Revenues...........................................................................................................................Jim Lande Subscribership.......................................................................................................... Alex Belinfante Technology and Infrastructure........................................Jonathan Kraushaar or Michael Goldstein Telephone Numbers and Area Codes ...........................................................................Craig Stroup Universal Service - High Cost .......................................................James Eisner or Alex Belinfante Universal Service – Lifeline/Link-Up .........................................Suzanne Mendez or James Eisner Universal Service – Rural Health Care.........................................................................Craig Stroup Universal Service – Schools and Libraries ...................................................................Craig Stroup Electronic mail addresses are: Alex Belinfante .........................................................................................Alex.Belinfante@fcc.gov Craig Stroup.................................................................................................. Craig.Stroup@fcc.gov Ellen Burton.................................................................................................. Ellen.Burton@fcc.gov James Eisner..................................................................................................James.Eisner@fcc.gov Jim Lande.......................................................................................................... Jim.Lande@fcc.gov Jonathan Kraushaar............................................................................ Jonathan.Kraushaar@fcc.gov Kenneth Lynch.......................................................................................... Kenneth.Lynch@fcc.gov Michael Goldstein................................................................................ Michael.Goldstein@fcc.gov Stephen Steckler......................................................................................Stephen.Steckler@fcc.gov Suzanne Mendez .....................................................................................Suzanne.Mendez@fcc.gov Customer Response Publication: Trends in Telephone Service – August 2008 You can help us provide the best possible information to the public by completing this form and returning it to the Industry Analysis and Technology Division of the FCC's Wireline Competition Bureau. 1. Please check the category that best describes you: ____ press ____ current telecommunications carrier ____ potential telecommunications carrier ____ business customer evaluating vendors/service options ____ consultant, law firm, lobbyist ____ other business customer ____ academic/student ____ residential customer ____ FCC employee ____ other federal government employee ____ state or local government employee ____ Other (please specify) 2. Please rate the report: Excellent Good Satisfactory Poor No opinion Data accuracy (_) (_) (_) (_) (_) Data presentation (_) (_) (_) (_) (_) Timeliness of data (_) (_) (_) (_) (_) Completeness of data (_) (_) (_) (_) (_) Text clarity (_) (_) (_) (_) (_) Completeness of text (_) (_) (_) (_) (_) 3. Overall, how do you Excellent Good Satisfactory Poor No opinion rate this report? (_) (_) (_) (_) (_) 4. How can this report be improved? 5. May we contact you to discuss possible improvements? Name: Telephone #: To discuss the information in this report: call (202) 418-0940 or for users of TTY equipment, call (202) 418-0484 Fax this response to or Mail this response to 202-418-0520 FCC/WCB/IATD Washington, DC 20554