REFERENCE BOOK of Rates, Price Indices, and Household Expenditures for Telephone Service Industry Analysis & Technology Division Wireline Competition Bureau 2008 This report is available for reference in the FCC's Reference Information Center, Courtyard Level, 445 12th Street S.W., Washington, D.C. 20554. Copies may be purchased by calling Best Copy and Printing, Inc., Portals II, 445 12th Street S.W., Room CY-B402, Washington, D.C. 20554, telephone 202-488-5300, or via e-mail at fcc@bcpiweb.com. The report can also be downloaded from the Wireline Competition Bureau Statistical Reports Internet site www.fcc.gov/wcb/stats. i Table of Contents Table of Contents……………………………………………………………………........i Introduction……...……………………………………………………...........................iii Statistical Findings……………………………………………………...........................iv I. Rates………………………………………………………………………………..I-1 A. Local Service Rates………………………………………………………………I-2 1. Residential Rates……………………………………………………………….I-2 2. Rates for Low-Income Households…………………………………………….I-3 3. Business Rates………………………………………………………………….I-3 B. Standard Deviation Analysis of Residential Rates………………………….........I-4 C. Toll Service Rates………………………………………………………………...I-4 D. Additional Sources of Information on Local and Toll Rates……………………..I-5 Table 1.1 Residential Rates for Local Service in Urban Areas Table 1.2 Average Residential Rates for Local Service in Urban Areas, 1986-2007 Table 1.3 Residential Telephone Rates in the Sample Cities Table 1.4 Monthly Residential Telephone Rates in the Sample Cities, 1993-2007 Table 1.5 Connection Charges for a Residential Telephone Line in the Sample Cities, 1993-2007 Table 1.6 Comparison of Standard Local Rates to Lifeline and Link-Up Rates Table 1.7 Lifeline and Link-Up Rates in the Sample Cities Table 1.8 Average Local Rates for Businesses with a Single Line in Urban Areas Table 1.9 Average Local Rates for Businesses with a Single Line in Urban Areas, 1989-2007 Table 1.10 Telephone Rates in the Sample Cities for a Business with a Single Line Table 1.11 Monthly Telephone Rates in the Sample Cities for a Business with a Single Line, 1994-2007 Table 1.12 Connection Charges for a Single Business Line in the Sample Cities, 1994-2007 Table 1.13 Standard Deviation Analysis of Residential Rates in the Sample Cities Table 1.14 Historical Standard Deviation Analysis of Residential Rates in the Sample Cities Table 1.15 Average Revenue per Minute for Interstate Toll Service Calls II. Expenditures on Telephone Service………………………………………………II-1 A. Residential Expenditures………………………………………………………...II-2 B. Business Expenditures…………………………………………………………...II-2 C. Additional Sources of Information on Expenditures for Telephone Service……II-2 Table 2.1 Average Annual Household Expenditures by Household Location Table 2.2 Average Annual Household Expenditures by Race and National Origin ii Table 2.3 Average Annual Household Expenditures by Household Income Table 2.4 Average Annual Household Expenditures by Age of the Head of the Household Table 2.5 Average Annual Household Expenditures by Size of the Household Table 2.6 Average Monthly Household Telecommunications Expenditures by Type of Provider Table 2.7 2006 Use of Broadcasting and Telecommunications Commodities by Industry Table 2.8 2006 Use of Commodities by the Broadcasting and Telecommunications Industry III. Price Indices……………………………………………………………………...III-1 A. Consumer Price Indices………………………………………………………..III-1 B. Producer Price Indices…………………………………………………………III-2 C. Additional Sources Information on Price Indices……………………………...III-2 Table 3.1 Changes in the Consumer Price Indices Since 1980 Chart 1 Consumer Price Indices for Toll Service Since 1984 Chart 2 Consumer Price Indices for Toll Service Since 1984 (Adjusted for Inflation) Table 3.2 Monthly Consumer Price Indices Table 3.3 Monthly Producer Price Indices Appendix Urban Rates Survey Residential and Single-Line Business Forms Introduction This 2008 issue of the Reference Book highlights the data collected through the Industry Analysis and Technology Division’s annual Urban Rates Survey. The local rate data reflect the inclusion of various taxes and surcharges and, as such, provide an estimate of the monthly charges residential and single-line business customers pay for local telephone service provided by wireline telephone companies. Local rates pertaining to multiline-business customers are no longer reported. Like the previous edition of the Reference Book (2007), this issue primarily focuses on trends in rates, price indices, and expenditures for telephone service. As before, each chapter has a section following the text which informs the reader about the various additional data sources that contain further information on these topics. This report, and previous reports, are also available on the Wireline Competition Bureau Statistical Reports website at www.fcc.gov/wcb/stats. This publication focuses on domestic telecommunications. Those interested in international telecommunications are encouraged to refer to Trends in the International Telecommunications Industry, which is also available on the Wireline Competition Bureau Statistical Reports Internet site. 1 1 Trends in the International Telecommunications Industry is published by the FCC’s International Bureau. Previously, the report was published by the Industry Analysis and Technology Division of the FCC’s Wireline Competition Bureau. iii iv Statistical Findings Rates for Local Service null The Lifeline universal service program subsidizes the monthly phone charges for low- income households, while the Link-Up program subsidizes charges for the connection of a phone line. Based on a sample of cities, Lifeline conferred an average monthly benefit of $14.99, and Link-Up conferred an average benefit of $30.04. null The average rate paid by business customers for a single phone line rose from $45.32 in 2006 to $48.67 in 2007, an increase of 7.4%. Average connection charges for single-line business customers fell from $68.96 in 2006 to $68.74 in 2007, a decrease of 0.32%. null The average rate paid by residential customers for unlimited touch-tone calling rose to $25.62 in 2007, an increase of 1.4% from $25.26 in 2006. The average connection charge for residential customers increased to $43.22 in 2007 from $43.13 in 2006, which represents an increase of 0.20%. Toll Service Rates null The increased availability and marketing of discount and promotional long distance plans, as well as the popularity of wireless “bucket-of-minutes” plans, has made basic schedule rates obsolete for many long distance customers, particularly business customers and high volume residential consumers. Today wireline, wireless, and cable companies are offering consumers bundled packages of local and long distance service, and buckets of minutes that can be used to call anyone, anywhere, and anytime. null The average revenue per minute of long distance calling, which reflects rates paid by residential and business consumers, has fallen from 15 cents in 1992, when discount and promotional long distance plans were introduced, to 6 cents in 2006, a decrease of 60%. null During 2007, the consumer price index for interstate toll service rose 2.4% and the consumer price index for intrastate toll service increased 5.9%, while the overall consumer price index rose 4.1%. Consumer Expenditures for Telephone Service null According to Bureau of Labor Statistics (BLS) surveys, average monthly expenditures for telephone service for all U.S. households rose from $87.33 in 2006 to $90.58 in 2007, an increase of 3.7%. Telephone service continues to comprise approximately 2% of household expenditures. null Also, according to BLS surveys, urban households continue to spend more on telephone service than rural households. During 2007, average annual expenditures for urban households were $1,091, as compared to $1,038 for rural households. null According to data provided by TNS Telecoms, a marketing research firm, households with wireline telephone service spent an average total of $113 per month on telephone services during the year 2007 (compared to $102 in 2006). Out of that total, households spent $45 per month on local and long distance service (compared to $44 in 2006), and $68 per month on wireless service (compared to $58 in 2006). I. Rates This section focuses on rates for local telephone service provided by wireline telephone companies. The billing structure for local telephone service can be broadly classified as either flat-rate or message/measured service. Customers subscribing to flat-rate service do not pay any additional fees for calls within their local calling area, regardless of the number of calls they place. Alternatively, customers subscribing to message or measured service pay an additional charge for calls made within the local calling area. Message service denotes those plans which bill customers by the call, regardless of the length of the call, while measured service plans bill customers based upon the length of the call. Either plan may also base charges on the distance between the calling and called party. Under either message or measured service, some amount of calling may be included in the monthly basic charge and therefore may be made without additional cost to the customer. In addition to monthly charges for basic service and calling charges, customers pay a number of other charges for telephone service. The federal subscriber line charge is a line item that local exchange carriers are authorized to charge to recover a portion of the interstate costs of providing local phone service. Some states, such as Michigan, authorize local carriers to charge a state subscriber line charge. In some areas there are additional surcharges that the state telephone regulatory authority has authorized the carrier to charge customers. These surcharges are generally associated with price-cap plans and other regulatory matters that either limit the carrier’s local service revenue to reasonable levels, or ensure that the carrier is fully compensated for the cost of providing service. In some states, most notably California, the surcharges change annually and can either add or subtract to the local rates of customers. Charges to fund local number portability, telecommunications relay services, and 911 services also appear on telephone bills in many parts of the country. The local rate averages presented in this report include subscriber line charges and local number portability surcharges that are tariffed at the FCC. Revenues from these charges are classified as interstate and therefore are included in incumbent local exchange carrier (LEC) universal service contribution bases. Prior to July 2000, the incumbent LECs recovered the cost of universal service contributions through per-minute interstate access charges. In July 2000 the incumbent LECs began recovering this cost through pass-through charges levied on local exchange service customers. These pass-through charges also are included in our calculations of the base rate for local service. State, county, and municipal governments levy a number of charges on telephone service. For local service, posted rates provide an accurate picture of prices paid by end users. However, the long distance market features a variety of rates for identical or similar services. Residential consumers may choose from a wide variety of distinct discount plans, and many businesses enter into contracts with toll service providers rather than purchasing service at the posted rates. Consequently, basic rates do not necessarily reflect the prices that residential and business consumers actually pay for long distance services. In fact, the vast majority of customers employ discount long distance calling plans and do not pay the basic schedule rate. 1 Numerous incumbent LECs, competitive local exchange carriers (CLECs), and interexchange carriers (IXCs) are now offering bundled packages of local and long-distance voice services, many at discounted rates. In 1 Bureau of Labor Statistics (BLS) price indices, presented in Section III, provide an alternative measure of long distance prices. I-1 addition, most wireless providers now offer packages that include unlimited minutes or a set number of minutes that may be used for local or long-distance calls. A. Local Service Rates The Industry Analysis and Technology Division of the Wireline Competition Bureau conducts an annual survey of incumbent LEC local telephone service rates in 95 urban areas of the United States. 2 The cities surveyed are those that were included in the BLS Consumer Price Index (CPI) in 1986. In constructing averages and medians, the sample weights derived by the BLS are used. In addition to collecting information on monthly rates for service, the Urban Rates Survey collects information on charges paid to have a phone connected to the network and the price of optional inside wire maintenance plans offered by many local exchange carriers. 1. Residential Rates Table 1.1 presents the national average rates for residential telephone service as of October 15, 2007. The average rate for flat-rate calling with touch-tone service in the 95 cities in the sample was $25.62. Measured or message service was $17.29, with an average additional charge of 8 cents for a 5-minute, same-zone, business-day call. The charge to have a single residential line connected averaged $43.22 on October 15, 2007. If telephone service is being installed for the first time at a residence, a drop line from the nearest telephone cable must be run to the building and a connection block (network interface device) must be installed. In twenty seven of the sample cities, an additional charge is levied for this work. The nationwide average connection charge would be $12.65 higher if these charges were included. In some areas of the country, only one type of service is offered, either flat-rate or measured/message service, and consumers do not have a choice. In order to calculate a national average based upon all of the sample cities, we calculate a “representative rate.” The representative rate is the flat-rate service charge in those areas where this type of service was available. 3 Table 1.2 presents the national average representative rates from 1986 to 2007. During the twenty-two-year period sample, the average representative rate for residential local service has gone (in nominal terms) from $17.70 to $24.80, and average connection charges have dropped from $49.25 to $40.20. 2 In 2003, the form used to conduct the Urban Rates Survey was revised. Specifically, a more detailed breakout of carriers’ surcharges and taxes now appear as separate line items on the survey instrument. The residential and business survey instruments are included in the attached Appendix. In addition, all carriers are now required to submit all line-item data in terms of dollar amounts, whereas before some line items were reported as percentages. These changes to the survey form allow for more accurate estimates of the total monthly recurring costs for basic local residential and single-line business service. Note that all estimates for 2002 and beyond reflect usage of the revised survey form, estimates for years 2001 and prior reflect those obtained from the previous survey instrument. 3 If flat-rate service was unavailable, the rate for measured/message service was used, along with the charges associated with placing 100 five-minute, same-zone, business-day calls. As of October 15, 2001, flat-rate local residential service was available in all 95 cities, so that approximating the cost of measured/message service with 100 five-minute, same-zone business day calls was unnecessary. I-2 Table 1.3 provides the rates in each of the 95 cities in the Urban Rates Survey as of October 15, 2007. Tables 1.4 and 1.5 provide historical monthly residential rates and residential connection charges respectively, for each of the sample cities. 2. Rates for Low-Income Households Tables 1.1 through 1.5 show the local rates that are available to all customers. Many states, in addition to federal programs, subsidize low-income households’ monthly service charges and connection fees. Most of these subsidy programs are part of the FCC’s Lifeline and Link-Up programs. The goal of the Lifeline and Link-Up programs is to help achieve universal service by enabling lower-income households to obtain telephone service. Lifeline subsidizes lower-income households’ monthly service charges, while Link-Up subsidizes lower-income households’ connection charges. In 2007, qualifying households in all of the 95 surveyed cities received Lifeline and Link-Up benefits. Table 1.6 shows the average Lifeline and Link-Up rates in those cities and compares the subsidized rates to the standard rates. In 2007, low-income households on the Lifeline program paid $10.63 per month for local service, as compared to $25.62 paid by residential subscribers not on the Lifeline program, for an average saving of $14.99 per month. Low-income households receiving Link-Up assistance paid $13.19 for connection charges, as compared to $43.22 paid by residential subscribers not receiving Link-Up assistance, for an average Link-Up benefit of $30.04. . Table 1.7 presents the Lifeline and Link-Up rates, as well as the standard rates, in the sample cities as of October 15, 2007. 3. Business Rates The Urban Rates Survey also collects information on charges for single-line business service. Beginning with the 2003 Urban Rates Survey, data pertaining to charges for multi- line business services (key systems and private branch exchanges) are no longer collected. Table 1.8 presents the average monthly rates for flat-rate and measured/message service paid by a business with a single telephone line, as well as the connection charges a business could expect to pay. Table 1.9 calculates the “representative rate,” and shows the trend in rates since 1989. Rates for single-line businesses have followed trends similar to those seen with residential rates. Tables 1.10 through 1.12 present current and historical rates for the sample cities. B. Standard Deviation Analysis of Residential Rates In October 2003, the Federal Communications Commission adopted a recommendation by the Federal-State Joint Board on Universal Service establishing an annual adjusted nationwide urban rate benchmark for purposes of determining universal service support for non-rural carriers. This benchmark is used by the states and the Commission as a tool to assess the reasonable comparability of rates in rural and high- cost areas served by non-rural carriers to nationwide urban rates. 4 The urban rate 4 See Federal-State Joint Board on Universal Service, CC. Docket No. 96-45, Order on Remand, Further Notice of Proposed Rulemaking, and Memorandum Opinion and Order, 18 FCC Rcd 22559, 22607-22610, I-3 benchmark adopted by the Commission is based upon the most recent average urban residential rate as shown in Table 1.1. Because of the great variation in urban rates nationwide, the Commission adopted a “standard deviation analysis” which measures the dispersion of urban rates from the average. As such, an urban rate benchmark level of two (weighted) standard deviations above the (weighted) average urban rate is used. Table 1.13 presents the results of such a standard deviation analysis for the residential rates reported in the Urban Rates Survey as of October 15, 2007. The average, plus the two standard deviation benchmark, is $37.36. Table 1.14 shows the historical trend in the standard deviation analysis for the years 1993-2007. Over this period, the average plus the two standard deviation benchmark rose by 31.5%, and presents an increase of 13.1% compared to 2006. C. Toll Service Rates Since 1992, carriers have introduced an impressive array of discount and promotional plans, and many long distance residential customers subscribe to these plans. These plans take a variety of formats. Some plans offer a block of calling time for a fixed fee and reduced per minute rates for additional calling while others give volume discounts or discounts for calls to certain phone numbers or area codes. One common trend has been the introduction of flat-rate calling plans, which eliminate the mileage bands associated with traditional basic schedules. For example, Verizon’s “Freedom Essentials” plan offers unlimited long-distance and local calling (as well as voice mail, caller ID, and call waiting) for as low as $42.99 per month (not including add-on charges). In addition, Verizon offers discounts on its high-speed Internet offerings to those subscribers who take the service as part of its “Freedom” plans. Section 271 of the Telecommunications Act of 1996 allowed the Regional Bell Operating Companies (RBOCs) to provide in-region interLATA toll services once the companies satisfied a fourteen-point “checklist” of conditions which demonstrates that their local exchange markets are open to entry by competitive local exchange carriers. All of the RBOCs attained section 271 approvals for their particular markets, and they are now offering discounted bundled packages of voice and popular calling features. Wireless companies and prepaid calling cards offer more options for long-distance consumers. Wireless companies now offer packages which enable customers to purchase a set number of minutes of usage per month at a set rate (some with unlimited minutes or unlimited nights and weekends) and allow customers to use these minutes for local or long distance calling. Consumers may also purchase prepaid calling cards, which contain an allotted number of minutes, with some charging rates less than three cents per minute. paras. 80-82 (2003), remanded, Qwest Communications Int'l, Inc. v. FCC, 398 F.3d 1222 (10th Cir. 2005); Federal-State Joint Board on Universal Service, CC. Docket No. 96-45, Notice of Proposed Rulemaking, 20 FCC Rcd 19731 (2005). I-4 I-5 Using revenue per-minute data for both residential and business interstate toll traffic, Table 1.15 illustrates the downward trend in long distance rates since discount long distance plans were introduced in 1992. The carriers’ average revenue per interstate toll minute has fallen by 60% since 1992, demonstrating that the advent of discount long distance plans has produced lower rates for both business and residential consumers. D. Additional Sources of Information on Local and Toll Rates 1. Local Rates A few states have begun to place exchange service tariffs on the Internet. The National Association of Regulatory Utility Commissioners (NARUC) web site has links to the web sites of all of the state telecommunications regulatory agencies: www.naruc.org. The Bureau of Labor Statistics (BLS), part of the U.S. Department of Labor, publishes a number of price indices that follow trends in local telephone rates. Part III of this report reviews these indices. The most current figures can be obtained at www.bls.gov. 2. Toll Rates Up until August 2001, all interstate interexchange carriers were required to file tariffs setting forth their rates with the FCC. These filings were available for public inspection at the FCC’s Reference Information Center, Washington, DC. As of August 1, 2001, interstate carriers were no longer required to file tariffs setting forth their interstate long distance rates. Since that date, carriers are required to post their rates on their websites. The BLS publishes a number of price indices that follow trends in toll rates. Part III of this report reviews these indices. The most current figures can be obtained at www.stats.bls.gov. Finally, there are a number of firms that specialize in monitoring major long distance companies and their rates, and many of these firms maintain Internet sites. Some examples are Abtolls.com, a free directory service guide to long distance carriers and their rates; Telecommunications Research and Action Center, which uses a search engine to find the lowest long distance rates for any selected calling pattern; Phone Bill Busters, which lists discount long distance plans and uses a search engine to find the lowest long distance rates for any selected calling pattern; and Discount Long Distance Digest, an Internet newsletter which offers a “free multi-carrier cost comparison service”. One can access these services on the Internet at www.abtolls.com, www.trac.org, www.phone-bill- busters.com, and www.thedigest.com. Table 1.1 Residential Rates for Local Service in Urban Areas (As of October 15, 2007) Average Rate Median Rate 2 Monthly Charge for Flat-Rate Service 1 $15.62 $14.77 Federal and State Subscriber Line Charges 5.74 5.91 Taxes, 911 and Other Charges 4.26 3.91 Total Monthly Charge for Flat-Rate Service $25.62 $24.71 Number of Sample Cities with Flat-Rate Service 95 - Monthly Charge for Measured/Message Service 1 $8.49 $8.80 Federal and State Subscriber Line Charges 5.49 5.68 Taxes, 911 and Other Charges 3.31 3.09 Total Monthly Charge for Measured/Message Service $17.29 $17.57 Cost of a 5-Minute Daytime Call 0.08 0.08 Number of Sample Cities with Message/Measured Service 79 - Basic Connection Charge 1 $39.81 $40.00 Taxes 3.41 2.78 Total Connection Charge $43.22 $42.78 Additional Charge if Drop Line and Connection Block Needed 12.65 0.00 Lowest-Cost Inside Wiring Maintenance Plan $5.38 $5.00 Note: Detail may not add to totals due to rounding. 1 Rate includes additional monthly charges for touch-tone service. 2 Where a rate exists for fewer than 95 cities, the median represents the midpoint rate for those cities which have the service offering. 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 $14.66 $15.03 $15.62 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 5.82 5.97 5.74 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 a 4 a 4 a 4 a 4 a 4 a 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 4.15 4.26 4.26 Total Monthly Charge $17.70 $18.18 $18.11 $19.05 $19.24 $19.77 $19.72 $19.95 $19.81 $20.01 $19.95 $19.88 $19.76 $19.93 $20.78 $22.62 $24.07 $24.52 $24.52 $24.64 $25.26 $25.62 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 39.62 39.68 39.81 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 a 4 a 4 a 4 a 4 a 4 a 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 3.17 3.45 3.41 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 $42.80 $43.13 $43.22 Additional Charge if Drop Line and Connection Block Needed a 1 a 1 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 12.65 13.91 12.65 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 4.42 4.96 5.38 1 Revised. 2 Subject to revision. 3 Rates are based upon flat-rate service where available and measured/message service with 100 five-minute, same-zone, business-day calls elsewhere. Beginning in 2001, all rates reflect flat-rate service. 4 Beginning in 2002, rate includes additional monthly charges for touch-tone service. Table 1.2 Average Residential Rates for Local Service in Urban Areas, 1986-2007 (As of October 15) Note: Details may not add to totals due to rounding. Monthly Telephone Rate Including Touch-Tone, Cost of a Connection Charges Least-Cost Telephone SLCs, Surcharges, and Taxes Five-Minute Including Touch-Tone, Inside Wiring Company Flat-Rate Measured/Message Same-Zone Surcharges, and Taxes Maintenance Service Service Alabama Huntsville AT&T $26.60 $40.00 $6.95 Alaska Anchorage ACS 25.34 53.50 2.00 Arizona Tuscon Qwest 22.62 17.22 0.20 30.61 4.75 Arkansas Pine Bluff AT&T 29.26 20.47 0.07 45.00 7.00 Arkansas West Memphis AT&T 37.47 20.58 0.07 45.00 7.00 California Anaheim AT&T 16.70 11.24 0.06 36.97 5.00 California Bakersfield AT&T 16.70 11.24 0.06 36.97 5.00 California Fresno AT&T 16.70 11.24 0.06 36.97 5.00 California Long Beach Verizon 26.31 18.50 0.08 49.22 3.99 California Los Angeles AT&T 18.46 12.43 0.06 36.97 5.00 California Oakland AT&T 17.92 12.06 0.06 36.97 5.00 California Salinas AT&T 17.38 11.60 0.06 36.97 5.00 California San Bernardino AT&T 27.00 18.99 0.08 50.52 3.99 California San Diego AT&T 16.70 11.24 0.06 36.97 5.00 California San Francisco AT&T 16.70 11.24 0.06 36.97 5.00 California San Jose AT&T 17.24 11.52 0.06 36.97 5.00 Colorado Boulder Qwest 26.22 19.84 0.13 38.93 4.75 Colorado Colorado Springs Qwest 26.16 19.85 0.13 38.72 4.75 Colorado Denver Qwest 25.06 19.07 0.13 37.71 4.75 Connecticut Ansonia AT&T 25.39 15.48 0.18 65.00 4.90 Connecticut Norwalk AT&T 24.30 15.52 0.18 65.00 4.90 District of Columbia Washington Verizon 21.11 14.61 0.06 24.89 3.99 Florida Miami AT&T 23.71 49.72 6.95 Florida Tampa Verizon 27.87 19.90 0.10 77.87 3.99 Florida West Palm Beach AT&T 23.71 49.72 6.95 Georgia Albany AT&T 25.43 42.50 6.95 Georgia Atlanta AT&T 28.26 44.24 6.95 Hawaii Honolulu Verizon 26.50 52.09 5.45 Illinois Chicago AT&T 18.88 11.28 0.04 39.39 6.99 Illinois Decatur AT&T 25.98 17.72 0.02 39.39 6.00 Illinois Rock Island AT&T 25.38 17.12 0.02 39.39 6.99 Indiana Indianapolis AT&T 19.85 47.00 6.99 Indiana Terre Haute Verizon 25.82 62.35 3.99 Iowa Fort Dodge Citizen 21.46 13.06 3.95 Kentucky Louisville AT&T 28.44 44.52 6.95 Louisiana Baton Rouge AT&T 23.28 44.28 6.95 Louisiana New Orleans AT&T 22.86 42.23 6.95 Maine Portland Verizon 27.79 48.90 3.99 Maryland Baltimore Verizon 28.94 20.85 0.10 52.24 3.99 Massachusetts Boston Verizon 29.95 22.45 0.09 14.59 3.99 Massachusetts Hyannis Verizon 29.95 22.45 0.09 14.59 3.99 Massachusetts Springfield Verizon 29.95 22.45 0.09 14.59 3.99 Michigan Detroit AT&T 30.38 23.40 0.07 46.90 6.99 Michigan Grand Rapids AT&T 28.15 21.97 0.07 44.79 6.99 Michigan Saginaw AT&T 30.39 25.13 0.07 44.79 6.99 Minnesota Detroit Lakes Qwest 22.00 16.28 0.10 19.54 4.75 Minnesota Minneapolis Qwest 22.99 17.43 0.10 19.63 4.75 Mississippi Pascagoula AT&T 29.93 49.22 6.95 Missouri Kansas City AT&T 23.69 15.83 0.08 37.47 7.00 Missouri Mexico AT&T 20.94 15.62 0.08 37.25 7.00 Missouri St. Louis AT&T 23.41 15.68 0.08 37.30 7.00 Montana Butte Qwest 32.45 24.79 0.05 26.00 4.75 Nebraska Grand Island Qwest 28.74 22.92 0.10 37.22 4.75 New Jersey Phillipsburg Verizon 18.43 14.30 0.10 46.58 3.99 Table 1.3 Residential Telephone Rates in the Sample Cities 1 (As of October 15, 2007) Daytime Call Plan State City Monthly Telephone Rate Including Touch-Tone, Cost of a Connection Charges Least-Cost Telephone Surcharges, and Taxes Five-Minute Including Touch-Tone, Inside Wiring Company Flat-Rate Measured/Message Same-Zone Surcharges, and Taxes Maintenance Service Service New Mexico Alamogordo Qwest 24.46 15.49 0.15 33.49 4.75 New York Binghamton Verizon 34.84 22.17 0.09 63.18 3.99 New York Buffalo Verizon 35.78 22.68 0.09 64.63 3.99 New York Massena Verizon 32.99 22.05 0.09 62.83 3.99 New York New York City Verizon 36.37 23.42 0.09 64.58 3.99 New York Ogdensburg Verizon 33.86 22.63 0.09 64.48 3.99 New York Rochester Citizen 26.37 16.46 0.15 38.01 3.95 North Carolina Raleigh AT&T 28.80 0.00 0.00 45.64 6.95 North Carolina Rockingham AT&T 28.21 0.00 0.00 45.64 6.95 Ohio Canton AT&T 22.18 16.36 0.08 38.69 7.00 Ohio Cincinnati Cincinnati Bell 24.87 15.19 0.15 25.70 5.95 Ohio Cleveland AT&T 22.54 16.62 0.08 39.33 7.00 Ohio Columbus AT&T 22.23 16.40 0.08 38.78 7.00 Ohio Toledo AT&T 22.33 16.47 0.08 38.96 7.00 Oregon Corvallis Qwest 22.88 15.59 0.15 18.17 4.75 Oregon Portland Qwest 22.83 15.54 0.15 18.17 4.75 Pennsylvania Allentown Verizon 23.66 19.03 0.07 43.60 3.99 Pennsylvania Ellwood City Verizon 24.10 19.58 0.07 43.60 3.99 Pennsylvania Johnstown Verizon 24.71 16.92 0.07 57.44 3.99 Pennsylvania New Castle Verizon 22.30 19.58 0.07 43.60 3.99 Pennsylvania Philadelphia Verizon 25.05 18.19 0.07 44.00 3.99 Pennsylvania Pittsburgh Verizon 25.05 18.19 0.07 44.00 3.99 Pennsylvania Scranton Verizon 23.09 18.46 0.07 43.60 3.99 Rhode Island Providence Verizon 30.75 19.10 0.05 37.21 3.99 South Carolina Beaufort Embarq 24.05 15.80 0.12 32.30 5.45 Tennessee Memphis AT&T 23.59 16.42 0.10 45.44 6.95 Tennessee Nashville AT&T 23.59 16.42 0.10 45.44 6.95 Texas Brownsville AT&T 20.04 14.68 0.08 41.51 7.00 Texas Corpus Christi AT&T 21.76 16.42 0.08 41.47 7.00 Texas Dallas AT&T 23.01 16.54 0.08 41.51 7.00 Texas Fort Worth AT&T 21.62 15.42 0.08 41.32 7.00 Texas Houston AT&T 22.88 16.46 0.08 41.13 7.00 Texas San Antonio AT&T 20.66 14.93 0.08 41.13 7.00 Utah Logan Qwest 21.29 19.28 0.10 27.67 4.75 Virginia Richmond Verizon 31.05 17.67 0.09 45.60 3.99 Virginia Smithfield Verizon 28.72 19.41 0.11 45.06 3.99 Washington Everett Verizon 28.96 22.28 0.02 50.22 3.99 Washington Seattle Qwest 21.23 17.34 0.07 32.98 4.75 West Virginia Huntington Verizon 31.31 14.51 0.16 44.10 3.99 Wisconsin Milwaukee AT&T 38.59 19.78 0.04 49.30 Wisconsin Racine AT&T 38.57 19.76 0.04 49.30 1 All figures are preliminary and subject to revision. Daytime Call Plan Residential Telephone Rates in the Sample Cities - Continued 1 (As of October 15, 2007) State City Table 1.3 State City 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 2007 3 Alabama Huntsville $24.60 $24.60 $23.06 $22.67 $22.67 $22.67 $22.67 $23.61 $24.85 $25.98 $26.76 $26.49 $26.54 $26.05 $26.60 Alaska Anchorage 16.20 14.44 14.47 14.47 14.46 14.48 14.48 14.34 15.42 20.95 21.50 21.61 21.61 23.25 25.34 Arizona Tuscon 18.23 18.23 19.18 19.13 19.42 19.42 19.43 20.10 20.78 22.89 23.39 22.66 22.74 22.62 22.62 Arkansas Pine Bluff 22.60 22.22 22.06 22.14 22.22 22.22 22.26 23.22 25.09 26.08 26.11 27.33 27.65 27.97 29.26 Arkansas West Memphis 29.00 29.55 28.57 28.65 28.78 20.79 28.75 29.72 31.58 32.72 32.71 34.47 34.33 36.59 37.47 California Anaheim 12.18 12.18 15.59 15.69 15.57 15.57 15.42 15.34 15.71 17.48 16.67 16.03 16.39 17.10 16.70 California Bakersfield 12.18 12.18 15.59 15.69 15.57 15.57 15.42 15.34 15.71 17.48 16.67 16.03 16.39 17.79 16.70 California Fresno 12.18 12.18 15.59 15.69 16.67 17.13 15.42 15.34 15.71 17.48 16.67 16.03 16.39 17.10 16.70 California Long Beach 17.35 16.78 23.56 23.51 23.51 23.51 23.51 24.48 25.05 24.69 25.70 25.13 25.38 26.61 26.31 California Los Angeles 13.39 13.39 17.09 17.20 15.57 16.01 16.59 16.87 17.28 17.48 16.67 17.59 18.02 18.76 18.46 California Oakland 13.09 13.09 16.72 16.82 15.57 16.01 16.23 16.49 16.89 17.48 16.67 17.20 17.61 18.35 17.92 California Salinas 12.79 12.91 16.49 16.59 15.57 16.01 16.02 16.26 16.65 17.48 16.67 16.69 17.05 17.79 17.38 California San Bernadino 17.12 16.55 23.24 23.19 23.19 23.19 23.19 24.15 25.05 24.69 25.69 25.74 26.07 27.33 27.00 California San Diego 12.18 12.18 15.59 15.69 15.57 16.01 15.42 15.34 15.71 17.48 16.67 16.03 16.39 17.10 16.70 California San Francisco 12.18 12.69 15.59 15.69 16.45 16.91 15.16 15.34 15.71 17.48 16.67 16.03 16.39 17.10 16.70 California San Jose 12.79 12.79 16.34 16.44 16.30 16.30 15.87 16.11 16.49 16.58 16.67 16.05 16.94 17.67 17.24 Colorado Boulder 20.99 21.26 21.51 21.55 21.36 21.39 22.07 23.04 23.07 27.06 27.68 27.17 26.11 25.83 26.22 Colorado Colorado Springs 20.29 20.23 19.78 20.38 20.38 20.36 20.85 21.77 22.33 24.48 25.00 24.68 26.09 25.82 26.16 Colorado Denver 20.80 21.12 21.10 21.14 21.11 21.40 21.91 22.85 22.98 25.71 26.23 25.62 25.07 24.76 25.06 Connecticut Ansonia 17.22 17.60 18.70 18.70 18.70 18.64 19.41 20.67 22.02 22.41 22.34 22.15 22.05 21.98 25.39 Connecticut Norwalk 16.13 16.51 17.60 17.60 17.60 17.55 18.32 19.58 20.93 21.32 21.25 21.06 20.96 20.89 24.30 District of Columbia Washington 21.70 21.67 20.13 21.05 19.23 20.10 19.94 20.12 21.03 21.01 21.53 21.46 21.08 21.34 21.11 Florida Miami 18.07 16.92 16.84 16.86 16.86 16.85 16.83 17.76 18.97 20.26 21.02 21.14 22.44 22.36 23.71 Florida Tampa 17.45 17.45 17.65 19.09 19.19 19.23 19.23 20.27 21.04 22.29 22.49 22.27 22.15 25.55 27.87 Florida West Palm Beach 16.74 15.65 15.59 15.89 15.89 15.60 15.58 16.73 18.15 19.56 20.29 20.65 22.03 21.96 23.71 Georgia Albany 20.60 20.63 20.63 21.29 21.29 21.34 21.88 22.98 24.22 25.11 26.25 25.91 25.45 25.30 25.43 Georgia Atlanta 24.50 24.53 24.80 24.98 24.98 24.92 24.92 26.04 27.25 28.56 29.54 28.90 29.85 29.06 28.26 Hawaii Honolulu 19.35 20.60 21.35 22.52 22.40 22.40 22.40 23.28 23.28 25.34 26.35 26.27 26.13 26.34 26.50 Illinois Chicago 18.21 18.20 17.31 17.63 17.18 17.18 14.52 15.52 21.64 24.68 22.12 21.19 21.27 21.27 18.88 Illinois Decatur 21.56 21.54 20.19 20.18 20.18 20.18 22.26 23.26 21.08 31.52 29.15 28.44 28.53 28.99 25.98 Illinois Rock Island 22.18 22.17 20.82 20.82 20.18 20.18 21.85 22.85 20.79 31.26 28.90 28.19 28.28 28.74 25.38 Indiana Indianapolis 21.87 20.44 19.81 18.82 18.82 18.82 19.05 20.25 20.40 20.20 20.21 19.74 19.79 20.25 19.85 Indiana Terre Haute 22.93 23.02 23.02 22.98 22.98 22.98 19.86 22.57 23.63 26.21 25.94 25.95 25.77 25.69 25.82 Iowa Fort Dodge 13.79 14.06 14.06 14.06 15.96 15.90 15.57 16.49 17.62 19.04 19.51 19.90 21.12 21.12 21.46 Kentucky Louisville 24.17 24.17 23.66 23.66 24.63 24.63 24.70 26.41 27.11 28.44 29.06 28.87 28.87 28.32 28.44 Louisiana Baton Rouge 22.25 20.81 20.93 20.66 19.57 19.57 19.57 20.47 23.17 23.00 23.65 23.28 23.33 22.53 23.28 Louisiana New Orleans 23.28 20.33 20.14 19.99 18.78 18.78 18.78 19.69 20.67 21.84 22.49 22.12 22.16 22.68 22.86 Maine Portland 18.24 18.27 17.99 18.19 19.12 19.70 22.53 23.34 24.72 26.31 26.99 27.63 28.55 27.77 27.79 Maryland Baltimore 24.98 24.98 24.98 24.98 24.98 24.67 24.67 25.73 26.47 27.14 28.09 27.94 28.06 28.86 28.94 Massachusetts Boston 21.72 23.07 23.07 23.07 23.07 23.07 23.07 23.46 24.53 25.61 29.64 29.88 29.76 29.80 29.95 Massachusetts Hyannis 20.43 23.07 23.07 23.07 23.07 23.07 23.07 23.46 24.53 25.61 29.64 29.88 29.76 29.80 29.95 Massachusetts Springfield 21.72 23.07 23.07 23.07 23.07 23.07 23.07 23.46 24.53 25.61 29.64 29.88 29.76 29.80 29.95 Michigan Detroit 19.25 19.55 19.50 19.42 19.42 19.76 22.50 25.99 27.12 27.77 27.39 27.45 27.52 29.32 30.38 Michigan Grand Rapids 17.19 17.53 18.06 17.95 18.01 18.25 20.08 23.28 24.54 25.47 25.07 24.81 24.81 26.52 28.15 Michigan Saginaw 18.75 16.93 18.96 20.05 20.05 20.11 19.85 22.99 27.71 28.18 27.52 27.27 27.87 29.66 30.39 Minnesota Detroit Lakes 19.86 19.84 19.91 19.91 19.63 19.63 19.63 20.57 21.50 22.41 22.42 21.69 21.99 21.85 22.00 Minnesota Minneapolis 21.64 21.66 21.73 21.73 21.45 21.46 20.61 21.54 22.48 23.38 23.39 22.67 22.97 22.82 22.99 Mississippi Pascagoula 26.03 26.42 26.42 26.03 26.03 25.26 24.81 25.80 27.05 28.30 28.95 28.73 29.91 29.84 29.93 Missouri Kansas City 20.40 19.03 18.15 18.15 19.53 19.53 18.25 19.21 20.68 20.33 20.25 21.65 21.76 23.15 23.69 Missouri Mexico 17.14 15.81 17.19 17.19 17.26 17.26 17.26 18.42 20.10 18.76 18.91 20.29 20.40 22.01 20.94 Missouri St. Louis 20.23 19.05 18.18 18.18 18.18 18.18 18.28 19.32 20.87 20.52 20.73 21.54 21.65 23.04 23.41 Montana Butte 18.22 18.22 18.22 18.22 19.26 19.69 22.70 23.16 24.23 26.25 26.54 26.02 26.11 26.02 32.45 Nebraska Grand Island 21.88 21.88 21.85 21.76 23.39 23.27 26.22 27.14 26.25 29.64 29.38 28.75 28.62 28.69 28.74 New Jersey Phillipsburg 13.04 13.04 13.04 13.04 13.05 13.05 13.05 13.21 15.31 15.93 16.30 17.09 18.21 18.39 18.43 Table 1.4 Monthly Residential Telephone Rates in the Sample Cities 1 (As of October 15, 2007) State City 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 2007 3 New Mexico Alamogordo 20.21 20.46 20.65 20.82 20.99 20.99 19.03 17.50 18.14 22.47 24.22 23.74 23.95 24.37 24.46 New York Binghamton 25.31 24.52 26.03 23.80 23.76 23.74 23.74 23.90 25.01 29.05 30.57 31.24 31.07 32.48 34.84 New York Buffalo 32.68 31.63 30.62 28.34 28.29 28.27 28.27 28.37 32.41 32.52 34.25 35.35 35.16 35.71 35.78 New York Massena 22.90 22.88 23.40 21.19 20.33 20.31 20.31 20.50 24.94 24.88 28.79 29.19 29.16 30.65 32.99 New York New York City 26.75 26.73 25.00 24.92 24.88 24.86 24.86 25.00 28.45 29.04 31.81 32.53 32.50 34.00 36.37 New York Ogdensburg 23.54 23.52 24.06 21.78 20.90 20.88 20.88 21.08 25.62 25.56 29.56 30.07 29.92 31.46 33.86 New York Rochester 19.75 18.96 16.83 16.83 17.91 17.86 17.86 18.64 19.55 20.38 20.44 20.41 20.07 22.29 26.37 North Carolina Raleigh 18.23 18.02 17.75 17.48 17.22 17.23 17.23 18.13 19.33 21.28 23.46 23.98 26.66 26.59 28.80 North Carolina Rockingham 16.74 16.53 16.22 15.95 15.69 15.69 15.69 16.86 19.20 20.54 21.81 22.15 24.96 24.89 28.21 Ohio Canton 21.29 21.29 20.00 19.59 18.87 18.72 18.56 19.28 20.31 21.06 21.18 22.14 22.13 22.52 22.18 Ohio Cincinnati 20.30 21.24 21.13 21.13 21.13 21.05 21.55 22.74 23.54 23.76 23.98 23.61 23.53 23.55 24.87 Ohio Cleveland 21.29 21.29 20.00 19.44 18.87 18.72 18.56 19.28 20.31 21.06 21.18 22.45 22.43 22.83 22.23 Ohio Columbus 21.29 21.29 20.00 19.85 18.87 18.72 18.56 19.28 20.31 21.06 21.18 22.19 22.18 22.57 22.23 Ohio Toledo 21.29 21.29 20.00 19.85 18.87 18.72 18.56 19.28 20.31 21.06 21.18 22.29 22.28 22.28 22.33 Oregon Corvallis 19.02 18.21 18.73 19.65 19.66 19.88 19.97 21.05 21.62 24.05 23.11 22.67 22.65 22.71 22.88 Oregon Portland 21.42 18.36 22.07 23.02 21.22 21.19 21.19 22.07 23.64 25.44 21.60 22.66 22.65 22.71 22.83 Pennsylvania Allentown 17.70 17.70 17.59 17.63 17.47 17.94 17.48 18.35 19.59 20.87 22.21 22.10 22.65 23.27 23.66 Pennsylvania Ellwood City 15.07 15.07 16.72 16.76 16.60 16.60 16.60 18.74 20.00 21.28 22.65 22.53 23.09 23.71 24.10 Pennsylvania Johnstown 20.11 21.95 21.78 20.31 19.48 19.48 21.94 22.86 20.97 21.54 23.33 22.87 23.57 23.90 24.71 Pennsylvania New Castle 15.07 15.58 14.97 15.01 14.90 14.90 14.90 17.04 18.30 19.58 20.84 20.73 21.29 21.91 22.30 Pennsylvania Philadelphia 20.09 20.09 19.98 18.72 18.56 18.56 18.56 19.41 20.67 22.13 23.57 23.45 24.01 24.68 25.05 Pennsylvania Pittsburgh 18.78 18.78 18.67 18.72 17.48 17.48 18.56 19.41 20.67 21.95 23.57 23.45 24.01 24.68 25.05 Pennsylvania Scranton 16.41 16.41 17.59 17.63 18.56 18.56 17.48 18.32 19.59 20.87 22.31 22.10 22.65 23.27 23.09 Rhode Island Providence 23.09 23.50 23.50 23.50 23.50 23.50 23.49 24.43 25.52 27.68 29.32 30.29 30.15 30.84 30.75 South Carolina Beaufort 20.30 20.30 19.76 19.76 19.76 19.76 20.41 21.33 22.26 24.56 24.45 23.80 23.92 23.68 24.05 Tennessee Memphis 20.25 20.25 20.25 20.33 20.33 20.33 19.95 20.33 21.76 22.15 22.80 23.08 23.33 23.25 23.59 Tennessee Nashville 19.41 19.41 19.41 19.41 19.41 19.88 19.51 19.90 20.99 21.72 22.42 22.41 23.33 23.25 23.59 Texas Brownsville 15.27 14.33 15.33 15.31 14.91 14.78 15.33 17.16 18.33 21.97 21.54 19.13 19.64 20.24 20.04 Texas Corpus Christi 17.00 15.93 15.89 15.90 16.22 17.15 17.17 16.23 17.32 27.39 25.77 20.48 21.03 21.66 21.76 Texas Dallas 18.97 17.99 18.00 17.92 17.47 18.07 17.97 19.45 20.64 28.10 26.79 23.14 23.72 24.36 23.01 Texas Fort Worth 17.77 16.70 16.73 16.62 16.17 16.75 16.89 19.17 19.66 25.82 25.05 21.49 22.08 22.70 21.62 Texas Houston 19.42 18.39 18.44 18.28 17.98 18.31 18.31 18.87 19.55 22.19 22.45 21.92 22.50 23.12 22.88 Texas San Antonio 17.52 16.58 16.56 16.42 16.37 16.35 16.35 17.05 18.13 19.83 20.04 19.71 20.26 20.87 20.66 Utah Logan 15.66 15.62 15.76 15.76 15.70 17.73 17.99 19.38 19.44 22.13 21.80 21.41 21.49 21.37 21.29 Virginia Richmond 24.60 24.60 23.90 23.78 23.78 23.78 23.78 28.67 29.60 30.06 31.60 30.74 32.30 33.69 31.05 Virginia Smithfield 17.01 17.01 17.01 16.90 16.90 16.90 16.90 17.87 27.82 33.29 30.81 30.59 30.42 30.83 28.72 Washington Everett 18.97 18.97 18.97 18.97 18.97 18.97 19.53 20.47 22.27 24.65 24.71 24.49 27.17 27.09 28.96 Washington Seattle 17.00 17.00 16.22 15.93 15.97 15.61 18.16 19.03 19.23 21.91 22.01 21.33 21.28 21.05 21.23 West Virginia Huntington 28.73 28.73 28.73 28.21 27.68 27.16 27.16 25.69 27.47 29.16 29.25 30.67 30.91 31.18 31.31 Wisconsin Milwaukee 16.56 15.91 15.91 15.92 15.92 15.92 16.76 17.46 34.75 34.95 35.56 33.56 33.84 37.01 38.59 Wisconsin Racine 16.61 15.96 15.87 15.88 15.88 15.88 16.40 17.09 34.61 34.93 35.54 33.54 33.82 36.99 38.57 1 Beginning in 2001, all rates reflect flat-rate service. Rates are for flat-rate service where available and measured/message service with 100 local calls elsewhere. All rates include subscriber line charges, touch-tone service, surcharges, 911 charges, and taxes. 2 Revised figures. 3 Preliminary figures - subject to revision. (As of October 15, 2007) Table 1.4 Monthly Residential Telephone Rates in the Sample Cities - Continued 1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 2007 3 Alabama Huntsville $42.68 $42.68 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 $40.00 Alaska Anchorage 25.50 25.50 25.50 25.50 25.50 35.00 35.00 35.00 43.40 43.40 53.50 53.50 $53.50 53.50 Arizona Tuscon 51.74 51.74 48.92 48.92 48.92 49.85 46.59 38.43 35.00 30.61 30.61 30.61 $30.61 30.61 Arkansas Pine Bluff 44.16 43.92 44.08 44.05 44.05 44.16 39.70 44.16 39.70 39.70 45.00 45.00 $45.00 45.00 Arkansas West Memphis 44.24 44.54 44.67 44.71 44.57 44.69 39.70 44.69 39.70 39.70 45.00 45.00 $45.00 45.00 California Anaheim 34.32 35.19 35.47 35.61 35.93 34.29 32.23 32.47 33.01 35.82 35.82 35.82 $35.26 36.97 California Bakersfield 34.32 35.19 35.47 34.92 35.93 34.29 32.23 32.47 35.82 35.82 35.82 35.82 $35.26 36.97 California Fresno 34.32 35.19 35.47 34.92 35.93 34.29 32.23 32.47 35.82 35.82 35.82 35.82 $35.26 36.97 California Long Beach 52.89 45.73 45.61 45.61 45.61 45.61 45.61 45.51 46.00 52.46 46.70 47.66 $50.01 49.22 California Los Angeles 34.32 35.19 35.47 34.92 35.93 33.70 32.23 35.77 35.82 35.82 35.82 35.82 $35.26 36.97 California Oakland 34.32 35.19 35.47 34.92 35.93 33.70 32.23 32.47 35.82 35.82 35.82 35.82 $35.26 36.97 California Salinas 34.32 35.19 35.47 34.92 35.93 33.70 32.23 32.47 35.82 35.82 35.82 35.82 $35.26 36.97 California San Bernadino 52.89 45.73 45.61 45.61 45.61 45.61 45.61 45.51 46.00 53.84 48.05 49.01 $51.36 50.52 California San Diego 34.32 35.19 35.47 34.92 35.93 34.29 32.23 32.47 35.82 35.82 35.82 35.82 $35.26 36.97 California San Francisco 34.32 35.19 35.47 34.92 35.93 34.29 32.23 32.47 35.82 35.82 35.82 35.82 $35.26 36.97 California San Jose 34.32 35.19 35.47 35.93 35.93 34.29 32.23 34.12 35.82 35.82 35.82 35.82 $35.26 36.97 Colorado Colorado Springs 36.40 36.40 36.40 36.40 36.40 37.53 36.09 37.38 35.00 37.09 37.09 37.78 $38.26 38.72 Colorado Denver 37.56 37.56 37.56 37.56 37.56 38.72 36.09 38.54 38.27 38.27 38.27 38.76 $37.31 37.71 Connecticut Ansonia 47.70 47.70 47.70 47.70 47.70 47.70 55.00 58.30 65.00 65.00 65.00 65.00 $65.00 65.00 Connecticut Norwalk 47.70 47.70 47.70 47.70 47.70 47.70 55.00 58.30 65.00 65.00 65.00 65.00 $65.00 65.00 District of Columbia Washington 30.76 30.76 30.76 30.76 30.76 30.76 30.76 21.00 23.10 25.10 25.10 25.10 $24.89 24.89 Florida Miami 40.00 40.00 40.00 40.00 40.00 40.00 40.00 43.32 43.92 44.25 44.17 48.64 $48.64 49.72 Florida Tampa 62.98 62.98 59.13 59.13 59.13 59.13 55.00 59.13 55.00 61.15 61.15 61.15 $67.25 77.87 Florida West Palm Beach 40.00 40.00 40.00 40.00 40.00 40.00 40.00 43.28 43.88 44.05 44.05 48.67 $48.64 49.72 Georgia Albany 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 $42.50 42.50 Georgia Atlanta 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 42.50 $43.20 44.24 Hawaii Honolulu 45.50 45.50 49.30 50.74 50.74 50.74 50.61 50.72 45.50 53.91 52.09 52.09 $52.09 52.09 Illinois Chicago 60.56 60.56 60.56 60.56 60.56 63.03 55.00 59.76 45.40 39.60 39.40 39.40 $39.39 39.39 Illinois Decatur 60.64 60.64 60.64 60.64 60.64 62.56 55.00 59.31 45.40 39.40 39.40 39.40 $39.39 39.39 Illinois Rock Island 60.64 60.64 60.64 60.64 60.64 62.56 55.00 59.31 45.40 39.60 39.40 39.40 $39.39 39.39 Indiana Indianapolis 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 47.00 $47.00 47.00 Indiana Terre Haute 60.06 60.06 60.06 60.06 60.06 60.06 60.06 60.06 57.20 62.35 62.35 62.35 $62.35 62.35 Iowa Fort Dodge 9.82 9.82 9.82 14.06 13.98 13.59 12.94 13.57 12.80 12.76 12.95 13.06 $13.06 13.06 Kentucky Louisville 34.50 34.50 42.00 42.00 42.00 42.00 42.00 44.52 44.52 44.52 44.52 42.00 $44.52 44.52 Louisiana Baton Rouge 51.80 44.63 44.29 42.23 42.23 42.23 41.00 44.28 44.34 44.34 44.34 44.34 $44.28 44.28 Louisiana New Orleans 52.00 44.29 44.29 42.23 42.23 42.23 41.00 42.23 42.23 42.23 42.23 42.23 $42.23 42.23 Maine Portland 47.44 47.44 47.44 47.44 47.21 47.21 44.75 46.99 44.75 48.33 48.96 48.90 $48.90 48.90 Maryland Baltimore 48.00 48.00 48.00 48.00 48.00 48.00 48.00 48.00 48.00 56.18 51.79 51.79 $51.79 52.24 Massachusetts Boston 38.92 38.92 38.92 38.92 38.92 38.92 37.07 14.18 13.50 14.59 14.59 14.59 $14.59 14.59 Massachusetts Hyannis 38.92 38.92 38.92 38.92 38.92 38.92 37.07 14.18 13.50 14.59 14.59 14.59 $14.59 14.59 Massachusetts Springfield 38.92 38.92 38.92 38.92 38.92 38.92 37.07 14.18 13.50 14.59 14.59 14.59 $14.59 14.59 Michigan Detroit 44.52 44.52 44.52 44.52 44.52 46.62 42.00 46.62 46.62 46.62 46.90 46.90 $46.90 46.90 Michigan Grand Rapids 44.52 44.52 44.52 44.52 44.52 44.52 42.00 44.52 44.52 44.52 44.78 44.78 $44.79 44.79 Michigan Saginaw 44.52 44.52 44.52 44.52 44.52 44.52 42.00 44.52 44.52 44.52 44.78 44.78 $44.79 44.79 Minnesota Detroit Lakes 18.75 18.75 19.97 19.54 19.54 19.54 18.35 19.54 19.54 19.54 19.54 19.54 $19.54 19.54 Minnesota Minneapolis 18.75 18.75 20.06 19.63 19.63 19.63 18.35 19.63 19.63 19.63 19.63 19.63 $19.63 19.63 Mississippi Pascagoula 49.22 49.22 49.22 49.22 49.22 49.22 46.00 49.22 49.22 49.22 49.22 49.22 $49.22 49.22 Missouri Kansas City 42.47 42.47 42.47 42.47 42.47 42.70 36.50 41.69 41.51 37.45 41.16 41.16 $42.25 41.16 Missouri Mexico 51.98 41.70 41.70 41.88 41.88 41.88 36.50 41.49 41.18 41.55 41.53 41.53 $42.25 41.53 Missouri St. Louis 53.67 43.06 43.06 43.06 43.06 43.30 36.50 42.93 42.61 42.99 42.97 42.97 $42.25 42.97 Montana Butte 35.30 25.00 25.00 25.00 25.00 26.00 26.00 26.00 26.00 26.00 26.00 26.00 $26.00 26.00 Nebraska Grand Island 30.52 30.52 36.03 36.03 36.03 37.41 35.29 37.27 37.44 37.44 37.60 36.22 $37.22 37.22 New Jersey Phillipsburg 44.52 44.52 44.89 44.89 44.89 44.89 42.35 44.89 44.89 46.16 46.16 46.16 $46.16 46.58 Table 1.5 (As of October 15, 2007) Connection Charges for a Residential Telephone Line in the Sample Cities 1 State City 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2 2007 3 New Mexico Alamogordo 31.96 31.96 31.86 31.86 31.86 31.86 30.00 31.99 32.01 32.01 32.09 32.27 33.60 33.49 New York Binghamton 62.42 62.71 62.59 62.47 62.41 62.41 57.13 61.53 55.00 61.61 63.32 63.18 63.06 63.18 New York Buffalo 64.13 63.83 63.71 63.59 63.53 63.53 58.17 62.57 55.00 62.68 64.56 64.42 64.51 64.63 New York Massena 62.63 62.34 62.22 62.10 62.05 62.05 57.33 61.18 55.00 61.26 62.50 62.63 62.71 62.83 New York New York 64.58 64.29 64.02 63.90 63.84 63.84 58.32 62.47 55.00 62.62 64.60 64.53 64.53 64.58 New York Ogdensburg 64.39 64.09 63.97 63.85 63.79 63.79 57.33 62.83 55.00 62.91 64.42 64.28 64.36 64.48 New York Rochester 33.32 33.32 33.32 33.32 33.32 33.32 33.32 33.32 33.32 33.32 33.32 33.32 33.32 38.01 North Carolina Raleigh 44.03 44.03 44.03 44.03 44.03 44.03 42.75 44.03 45.32 45.32 45.32 45.74 45.74 45.64 North Carolina Rockingham 44.03 44.03 44.03 44.03 44.03 44.03 42.75 44.03 45.32 45.32 45.32 45.74 45.74 45.64 Ohio Canton 45.80 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 38.69 38.69 Ohio Cincinnati 31.70 31.70 31.70 31.70 25.70 25.70 25.70 25.70 25.70 25.70 25.70 25.70 25.70 25.70 Ohio Cleveland 45.80 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 39.24 39.33 Ohio Columbus 45.80 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 38.78 38.78 Ohio Toledo 45.80 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 36.50 38.96 38.96 Oregon Corvallis 12.00 12.00 12.36 12.36 12.36 12.36 12.36 12.72 16.50 17.90 17.99 17.99 18.17 18.17 Oregon Portland 12.00 12.00 12.36 12.36 12.36 12.36 12.36 12.72 16.50 17.90 17.99 17.99 18.17 18.17 Pennsylvania Allentown 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 43.60 43.60 43.60 43.60 43.60 Pennsylvania Ellwood City 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 43.60 43.60 43.60 43.60 43.60 Pennsylvania Johnstown 55.86 55.86 55.86 55.86 55.86 55.86 52.70 55.86 52.70 57.44 57.44 57.44 57.44 57.44 Pennsylvania New Castle 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 43.60 43.60 43.60 43.60 43.60 Pennsylvania Philadelphia 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.40 44.00 44.00 44.00 44.00 44.00 Pennsylvania Pittsburgh 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 44.00 44.00 44.00 44.00 44.00 Pennsylvania Scranton 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 40.00 43.60 43.60 43.60 43.60 43.60 Rhode Island Providence 36.20 36.20 36.20 36.20 36.20 36.20 33.83 36.20 33.83 37.21 37.21 37.21 37.21 37.21 South Carolina Beaufort 32.30 32.30 32.30 32.30 32.30 32.30 32.30 32.30 32.30 32.30 32.30 32.30 32.30 32.30 Tennessee Memphis 47.39 47.39 47.62 47.62 47.62 47.40 43.85 47.28 47.76 47.96 47.96 45.44 45.44 45.44 Tennessee Nashville 45.13 45.13 45.13 45.13 45.13 44.92 41.50 44.92 45.44 45.45 45.45 45.44 45.44 45.44 Texas Brownsville 44.06 47.12 47.08 47.07 46.65 47.39 38.35 47.39 44.06 41.51 41.51 41.51 41.51 41.51 Texas Corpus Christi 47.39 47.28 47.31 48.25 43.85 43.91 38.35 43.91 43.91 41.47 41.47 41.47 41.47 41.47 Texas Dallas 48.38 48.38 48.18 46.95 48.58 48.31 38.35 48.31 44.06 41.51 41.51 41.51 41.51 41.51 Texas Fort Worth 47.82 47.90 47.59 46.31 47.95 48.36 38.35 48.36 44.06 41.32 41.32 41.32 41.32 41.32 Texas Houston 48.37 48.40 47.98 47.20 44.06 44.06 38.35 44.06 44.06 41.13 41.13 41.13 41.13 41.13 Texas San Antonio 47.38 47.31 46.93 47.71 43.85 43.85 38.35 43.85 43.91 41.18 41.13 41.13 41.13 41.13 Utah Logan 19.90 19.90 26.53 26.50 26.50 26.83 25.17 27.41 25.00 26.68 27.89 27.90 27.79 27.67 Virginia Richmond 38.50 38.50 38.50 38.50 38.50 38.50 38.50 38.50 38.50 50.79 49.67 49.67 52.63 45.60 Virginia Smithfield 29.25 29.25 30.00 30.00 30.00 40.00 40.00 40.00 40.00 47.20 47.20 47.20 49.23 45.06 Washington Everett 42.08 42.08 46.67 46.67 46.67 46.67 43.25 46.67 43.25 50.09 50.09 50.22 50.22 50.22 Washington Seattle 33.08 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.98 32.96 32.98 West Virginia Huntington 42.00 42.00 42.00 42.00 42.00 42.00 42.00 42.00 42.00 44.10 44.10 44.10 44.10 44.10 Wisconsin Milwaukee 34.87 34.87 34.90 34.90 35.52 47.52 45.00 58.08 55.00 51.90 51.90 49.30 49.30 49.30 Wisconsin Racine 34.70 34.70 34.74 34.74 35.52 47.30 55.00 57.81 55.00 51.90 51.90 49.30 49.30 49.30 1 Rates include additonal monthly taxes and surcharges. 2 Revised figures. 3 Subject to revision. State City (As of October 15, 2007) Connection Charges for a Residential Telephone Line in the Sample Cities - Continued Table 1.5 Standard Rate in Cities with Subsidy Plan Subsidy-Plan Rate Benefit (a) (b) (a) - (b) Representative Monthly Charge 1 $15.62 $8.70 $6.92 Federal and State Subscriber Line Charges 5.74 0.02 5.72 Taxes, 911 and Other Charges 4.26 1.91 2.35 Total Monthly Charge 2 $25.62 $10.63 $14.99 Basic Connection Charge $39.81 $12.33 $27.48 Taxes 3.41 0.86 2.56 Total Connection Charge 2 $43.22 $13.19 $30.04 1 All standard rates reflect flat-rate service. Subsidy plan rates reflect flat-rate subsidized service where available and subsidized measured/message service with 100 calls elsewhere. 2 Averages are for the 95 cities with subsidized monthly rates and connection assistance plans. Table 1.6 Comparison of Standard Local Telephone Rates to Lifeline and Link-Up Rates (As of October 15, 2007) Note: Details may not add to totals due to rounding. Monthly Telephone Rate Connection Charge Including SLCs, Surcharges Including Surcharges City Telephone and Taxes Company Standard Lifeline Standard Link-Up Rates Rates Rates Rates Alabama Huntsville AT&T $26.60 $11.11 $40.00 $20.00 Alaska Anchorage ACS 25.34 5.85 53.50 0.00 Arizona Tucson Qwest 22.62 9.72 30.61 15.31 Arkansas Pine Bluff AT&T 29.26 15.30 45.00 22.50 Arkansas West Memphis AT&T 37.47 14.55 45.00 22.50 California Anaheim AT&T 16.70 5.63 36.97 10.24 California Bakersfield AT&T 16.70 5.63 36.97 10.24 California Fresno AT&T 16.70 5.63 36.97 10.24 California Long Beach Verizon 26.31 5.77 49.22 10.70 California Los Angeles AT&T 18.46 6.18 36.97 10.24 California Oakland AT&T 17.92 6.04 36.97 10.24 California San Bernadino Verizon 27.00 5.92 50.52 10.98 California San Diego AT&T 16.70 5.63 36.97 10.24 California San Francisco AT&T 16.70 5.63 36.97 10.24 California San Jose AT&T 17.24 5.90 36.97 10.24 Colorado Boulder Qwest 26.22 6.34 38.93 19.47 Colorado Colorado Springs Qwest 26.16 6.46 38.72 19.36 Colorado Denver Qwest 25.06 6.18 37.71 18.85 Connecticut Ansonia AT&T 25.39 14.63 65.00 35.00 Connecticut Norwalk AT&T 24.30 13.53 65.00 35.00 District of Columbia Washington Verizon 21.11 4.48 24.89 12.45 Florida Miami AT&T 23.71 7.86 49.72 24.86 Florida Tampa Verizon 27.87 7.37 77.87 38.94 Florida West Palm Beach AT&T 23.71 7.94 49.72 24.86 Georgia Albany AT&T 25.43 10.30 42.50 21.25 Georgia Atlanta AT&T 28.26 13.04 44.24 22.12 Hawaii Honolulu Verizon 26.50 17.48 52.09 26.04 Illinois Chicago AT&T 18.88 11.52 39.39 7.70 Illinois Decatur AT&T 25.98 18.61 39.39 7.70 Illinois Rock Island AT&T 25.38 18.01 39.39 7.70 Indiana Indianapolis AT&T 19.85 11.84 47.00 0.00 Indiana Terre Haute Verizon 25.82 16.04 62.35 31.18 Iowa Fort Dodge Citizen 21.46 11.39 13.06 6.53 Kentucky Louisville AT&T 28.44 13.38 44.52 22.26 Louisiana Baton Rouge AT&T 23.28 13.76 44.28 22.15 Louisiana New Orleans AT&T 22.86 13.39 42.23 21.12 Maine Portland Verizon 27.79 9.87 48.90 10.93 Maryland Baltimore Verizon 28.94 9.20 52.24 16.82 Massachusetts Boston Verizon 29.95 9.01 14.59 7.29 Massachusetts Hyannis Verizon 29.95 9.01 14.59 7.29 Massachusetts Springfield Verizon 29.95 9.01 14.59 7.29 Michigan Detroit AT&T 30.38 20.00 46.90 0.00 Michigan Grand Rapids AT&T 28.15 17.87 44.79 0.00 Michigan Saginaw AT&T 30.39 20.11 44.79 0.00 Minnesota Detroit Lakes Qwest 22.00 12.09 19.54 9.78 Minnesota Minneapolis Qwest 22.99 13.06 19.63 9.83 Mississippi Pascagoula AT&T 29.93 14.29 49.22 24.61 Missouri Kansas City AT&T 23.69 8.29 37.47 18.73 Missouri Mexico AT&T 20.94 5.75 37.25 18.62 Missouri St. Louis AT&T 23.41 8.17 37.30 18.65 Montana Butte Qwest 32.45 7.43 26.00 13.00 Nebraska Grand Island Qwest 28.74 16.35 37.22 18.81 New Jersey Phillipsburg Verizon 18.43 2.15 46.58 23.30 Table 1.7 Lifeline and Link-Up Rates in the Sample Cities (As of October 15, 2007) State and Taxes 1 Table 1.7 Lifeline and Link-Up Rates in the Sample Cities - Continued (As of October 15, 2007) Monthly Telephone Rate 1 Connection Charge Including Surcharges Including Surcharges City Telephone and Taxes Company Standard Lifeline Standard Link-Up Rates Rates Rates Rates New Mexico Alamogordo Qwest 24.46 5.97 33.49 8.29 New York Binghamton Verizon 34.84 14.97 63.18 5.74 New York Buffalo Verizon 35.78 15.45 64.63 5.88 New York Massena Verizon 32.99 13.23 62.83 5.71 New York New York City Verizon 36.37 13.58 64.58 5.86 New York Ogdensburg Verizon 33.86 11.12 64.48 11.41 New York Rochester Citizen 26.37 15.30 38.01 5.87 North Carolina Raleigh AT&T 28.80 13.25 45.64 22.81 North Carolina Rockingham AT&T 28.21 12.67 45.64 22.81 Ohio Canton AT&T 22.18 8.03 38.69 0.00 Ohio Cincinnati Cincinnati Bell 24.87 10.37 25.70 0.00 Ohio Cleveland AT&T 22.54 8.16 39.33 0.00 Ohio Columbus AT&T 22.23 8.05 38.78 0.00 Ohio Toledo AT&T 22.33 8.09 38.96 0.00 Oregon Corvallis Qwest 22.88 7.45 18.17 9.09 Oregon Portland Qwest 22.83 7.86 18.17 9.00 Pennsylvania Allentown Verizon 23.66 10.52 43.60 21.80 Pennsylvania Ellwood City Verizon 24.10 10.95 43.60 21.80 Pennsylvania Johnstown Verizon 24.71 11.39 57.44 28.72 Pennsylvania New Castle Verizon 22.30 9.15 43.60 21.80 Pennsylvania Philadelphia Verizon 25.05 11.79 44.00 22.00 Pennsylvania Pittsburgh Verizon 25.05 11.79 44.00 22.00 Pennsylvania Scranton Verizon 23.09 9.94 43.60 21.80 Rhode Island Providence Verizon 30.75 12.85 37.21 18.61 South Carolina Beaufort Embarq 24.05 7.77 32.30 16.15 Tennessee Memphis AT&T 23.59 7.74 45.44 22.17 Tennessee Nashville AT&T 23.59 7.74 45.44 22.67 Texas Brownsville AT&T 20.04 4.03 41.51 19.18 Texas Corpus Christi AT&T 21.76 3.61 41.47 19.18 Texas Dallas AT&T 23.01 7.18 41.51 19.18 Texas Fort Worth AT&T 21.62 5.59 41.32 19.18 Texas Houston AT&T 22.88 5.26 41.13 19.18 Texas San Antonio AT&T 20.66 4.99 41.13 19.18 Utah Logan Qwest 21.29 5.36 27.67 13.84 Virginia Richmond Verizon 31.05 9.44 45.60 22.80 Virginia Smithfield Verizon 28.72 11.94 45.06 21.60 Washington Everett Verizon 28.96 10.24 50.22 25.11 Washington Seattle Qwest 21.23 9.59 32.98 16.49 West Virginia Huntington Verizon 31.31 21.40 44.10 0.00 Wisconsin Milwaukee AT&T 38.59 28.77 49.30 0.00 Wisconsin Racine AT&T 38.57 28.75 49.30 0.00 1 Rates are for flat-rate service where available and measured/message service with 100 calls elsewhere. Rates are subject to revision. State and Taxes Table 1.8 Average Local Rates for Businesses with a Single Line in Urban Areas Average Rate Median Rate 1 Monthly Charge for Flat-Rate Service 2 $35.17 $34.27 Federal and State Subscriber Line Charges 6.16 6.50 Taxes, 911, and Other Charges 7.35 6.38 Total Monthly Charge for Flat-Rate Service $48.67 $47.25 Number of Sample Cities with Flat-Rate Service 56 Monthly Charge for Measured/Message Service 2 $18.59 $18.53 Federal and State Subscriber Line Charges 5.57 5.68 Taxes, 911, and Other Charges 5.07 4.29 Total Monthly Charge for Measured/Message Service $29.23 $28.50 Cost of a 5-Minute Daytime Call 0.11 0.10 Number of Sample Cities with Message/Measured Service 78 Basic Connection Charge 2 $62.67 $59.00 Taxes 6.06 4.39 Total Connection Charge $68.74 $63.39 Additional Charge if Drop Line and Connection Block Needed 11.45 0.00 Lowest-Cost Inside Wiring Maintenance Plan $5.62 $6.10 Note: Detail may not add to totals due to rounding. 1 Where a rate exists for fewer than 95 cities, the median represents the midpoint rate for those cities which have the service offering. 2 Includes additional monthly charges for touch-tone service. (As of October 15, 2007) 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 $32.21 $33.54 $35.17 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 5.71 5.90 6.16 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 a 4 a 4 a 4 a 4 a 4 a 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 5.83 5.88 7.35 Total Monthly Charge $41.25 $41.21 $42.12 $42.29 $42.57 $41.64 $41.80 $41.81 $41.67 $41.27 $41.21 $41.80 $42.43 $41.95 $41.96 $43.49 $43.75 $45.32 $48.67 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 34.19 $34.56 $35.17 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 6.03 6.16 6.16 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 a 4 a 4 a 4 a 4 a 4 a 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 7.77 7.68 7.35 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 $47.99 $48.39 $48.67 Number of Sample Cities with Flat-Rate Service 59 56 54 54 54 53 53 53 53 54 54 54 54 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 18.30 $16.41 $18.59 200 Five-Minute, Business-Day, Same-Zone Calls 16.11 16.19 16.70 17.23 17.57 17.38 17.15 17.10 17.18 17.15 17.24 17.63 17.56 16.78 17.17 17.86 18.16 16.93 17.77 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 5.80 5.49 5.57 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 a 4 a 4 a 4 a 4 a 4 a 4 Tax, 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 5.14 4.74 5.07 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 $47.40 $43.57 $47.00 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 78 78 Cost of a Five-Minute, Business-Day, Same-Zone Call $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.10 $0.10 $0.09 $0.11 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 $62.55 $62.67 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 a 4 a 4 a 4 a 4 a 4 a 4 Tax, 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 6.15 6.41 6.06 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 $73.66 $73.50 $68.96 $68.74 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 13.96 $11.45 $11.45 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 6.27 $5.77 $5.62 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 Starting in 2002, additional monthly charges for touch-tone service are included in the monthly charge. Table 1.9 Average Local Rates for Businesses with a Single Line in Urban Areas (As of October 15, 2007) Monthly Telephone Rate Including Touch-Tone, SLCs Cost of a Five-Minute Connection Charges Telephone Surcharges, and Taxes Same-Zone Including Touch-Tone, Company Flat-Rate Measured/Message Daytime Call Surcharges, and Taxes Service Service Alabama Huntsville AT&T $49.66 $69.00 Alaska Anchorage ACS 40.05 56.50 Arizona Tucson Qwest 42.49 47.30 Arkansas Pine Bluff AT&T 57.37 32.03 0.07 84.00 Arkansas West Memphis AT&T 67.08 29.42 0.07 84.00 California Anaheim AT&T 18.69 0.08 70.99 California Bakersfield AT&T 18.69 0.08 70.99 California Fresno AT&T 18.69 0.08 70.99 California Long Beach Verizon 32.45 0.10 90.74 California Los Angeles AT&T 20.50 0.08 70.99 California Oakland AT&T 20.05 0.08 70.99 California Salinas AT&T 19.48 0.08 70.99 California San Bernadino Verizon 33.30 0.10 93.14 California San Diego AT&T 18.69 0.08 70.99 California San Francisco AT&T 20.07 0.08 70.99 California San Jose AT&T 19.30 0.08 70.99 Colorado Boulder Qwest 50.06 30.55 0.13 60.07 Colorado Colorado Springs Qwest 49.70 30.42 0.13 59.74 Colorado Denver Qwest 47.37 29.09 0.13 58.17 Connecticut Ansonia AT&T 50.99 29.33 0.18 75.00 Connecticut Norwalk AT&T 48.82 29.32 0.18 75.00 District of Columbia Washington Verizon 25.74 0.09 99.49 Florida Miami AT&T 45.66 72.96 Florida Tampa Verizon 47.05 37.89 0.10 81.30 Florida West Palm Beach AT&T 45.66 72.96 Georgia Albany AT&T 45.39 58.25 Georgia Atlanta AT&T 62.32 60.64 Hawaii Honolulu Verizon 51.41 52.09 Illinois Chicago AT&T 18.30 0.20 52.35 Illinois Decatur AT&T 28.32 0.20 52.35 Illinois Rock Island AT&T 27.72 0.20 52.35 Indiana Indianapolis AT&T 49.96 37.19 0.16 52.35 Indiana Terre Haute Verizon 41.35 52.35 Iowa Fort Dodge Citizen 32.30 52.35 Kentucky Louisville AT&T 45.93 77.38 Louisiana Baton Rouge AT&T 46.76 91.80 Louisiana New Orleans AT&T 45.38 87.55 Maine Portland Verizon 47.01 60.87 Maryland Baltimore Verizon 26.38 0.10 108.01 Massachusetts Boston Verizon 57.03 28.12 0.14 104.66 Massachusetts Hyannis Verizon 56.88 27.98 0.14 104.66 Massachusetts Springfield Verizon 57.03 28.12 0.14 104.66 Michigan Detroit AT&T 28.14 0.14 46.90 Michigan Grand Rapids AT&T 26.01 0.14 44.79 Michigan Saginaw AT&T 30.14 0.14 44.79 Minnesota Detroit Lakes Qwest 45.08 30.01 0.10 51.01 Minnesota Minneapolis Qwest 54.32 39.60 0.10 51.25 Mississippi Pascagoula AT&T 50.66 71.69 Missouri Kansas City AT&T 55.56 29.97 0.00 53.65 Missouri Mexico AT&T 35.93 21.66 0.08 53.34 Missouri St. Louis AT&T 53.03 28.76 0.00 53.41 Montana Butte Qwest 45.03 30.00 0.10 61.25 Nebraska Grand Island Qwest 40.05 29.41 0.10 50.75 New Jersey Phillipsburg Verizon 25.08 0.07 88.30 Table 1.10 Telephone Rates in the Sample Cities for a Business with a Single Line (As of October 15, 2007) State City Monthly Telephone Rate Including Touch-Tone, Cost of a Five-Minute Connection Charges Telephone Surcharges, and Taxes Same-Zone Including Touch-Tone, State City Company Flat-Rate Measured/Message Daytime Call Surcharges, and Taxes Service Service New Mexico Alamogordo Qwest 49.14 30.87 0.15 60.02 New York Binghamton Verizon 31.47 0.11 121.82 New York Buffalo Verizon 32.20 0.11 124.62 New York Massena Verizon 31.30 0.11 121.14 New York New York City Verizon 32.93 0.11 124.51 New York Ogdensburg Verizon 32.12 0.11 124.33 New York Rochester Citizen 20.21 0.15 58.05 North Carolina Raleigh AT&T 46.64 69.39 North Carolina Rockingham AT&T 47.14 69.39 Ohio Canton Ameritech 38.15 0.08 66.62 Ohio Cincinnati Cincinnati Bell 53.79 37.31 0.15 49.75 Ohio Cleveland AT&T 35.16 0.08 67.72 Ohio Columbus AT&T 34.68 0.08 66.78 Ohio Toledo AT&T 35.67 0.08 67.09 Oregon Corvallis Qwest 37.86 28.78 0.15 34.14 Oregon Portland Qwest 37.81 28.73 0.15 34.14 Pennsylvania Allentown Verizon 34.66 0.08 54.50 Pennsylvania Ellwood City Verizon 37.39 0.08 54.50 Pennsylvania Johnstown Verizon 43.12 26.77 0.07 62.24 Pennsylvania New Castle Verizon 37.39 0.08 54.50 Pennsylvania Philadelphia Verizon 28.93 0.08 55.00 Pennsylvania Pittsburgh Verizon 28.93 0.08 55.00 Pennsylvania Scranton Verizon 34.66 0.08 54.50 Rhode Island Providence Verizon 32.05 0.02 53.85 South Carolina Beaufort Embarq 43.60 29.17 0.12 35.60 Tennessee Memphis AT&T 57.78 46.58 0.10 64.06 Tennessee Nashville AT&T 57.78 46.58 0.10 64.06 Texas Brownsville AT&T 41.07 28.67 0.08 62.03 Texas Corpus Christi AT&T 44.96 32.35 0.08 61.96 Texas Dallas AT&T 56.72 41.96 0.08 62.11 Texas Fort Worth AT&T 49.58 35.64 0.08 61.74 Texas Houston AT&T 52.32 37.70 0.08 61.45 Texas San Antonio AT&T 44.62 31.32 0.08 61.45 Utah Logan Qwest 33.80 27.81 0.08 55.30 Virginia Richmond Verizon 61.59 23.60 0.12 69.88 Virginia Smithfield Verizon 45.51 32.46 0.11 43.20 Washington Everett Verizon 48.34 34.41 0.02 76.05 Washington Seattle Qwest 40.12 30.27 0.07 55.60 West Virginia Huntington Verizon 65.96 33.94 0.16 82.95 Wisconsin Milwaukee AT&T 31.24 0.16 64.65 Wisconsin Racine AT&T 31.22 0.16 64.65 Table 1.10 Telephone Rates in the Sample Cities for a Business with a Single Line - Continued (As of October 15, 2007) Table 1.11 City 1994 1995 1996 1997 1998 1999 2000 2002 2003 2004 2005 2006 2 2007 3 Alabama Huntsville $60.55 $56.15 $53.46 $50.90 $48.40 $45.97 $46.91 $48.97 $49.86 $49.59 $49.64 $48.25 $49.66 Alaska Anchorage 31.04 31.05 31.05 31.08 31.12 31.11 31.11 35.57 35.68 35.75 38.21 38.21 40.05 Arizona Tucson 40.72 41.73 41.71 42.00 42.00 42.01 42.68 44.17 43.27 42.54 42.62 42.47 42.49 Arkansas Pine Bluff 41.10 40.91 41.05 41.13 41.13 41.39 42.53 45.51 45.70 47.10 48.53 53.53 57.37 Arkansas West Memphis 53.30 53.70 53.85 53.03 53.80 54.14 55.06 58.66 58.61 58.94 58.95 63.19 67.08 California Anaheim 29.10 30.43 30.65 30.25 30.28 28.34 27.20 18.92 19.00 17.11 29.08 27.24 34.69 California Bakersfield 29.15 31.06 31.29 30.64 30.92 28.23 27.20 18.92 17.72 17.11 29.08 27.24 34.69 California Fresno 29.97 31.06 31.29 31.10 30.92 28.11 27.78 19.49 17.72 29.11 29.08 27.24 34.69 California Long Beach 36.92 43.95 43.84 40.67 43.84 43.84 44.81 43.22 46.67 43.14 43.38 44.77 52.45 California Los Angeles 31.38 33.36 33.60 31.75 33.16 30.24 30.55 18.92 17.72 30.57 30.54 28.72 36.50 California Oakland 30.67 32.63 32.86 NA 32.45 29.58 29.24 18.92 17.72 30.21 30.18 28.35 36.05 California Salinas 31.00 32.97 33.21 31.10 32.79 29.94 29.54 18.82 17.72 29.71 29.69 27.81 35.48 California San Bernadino 36.41 43.35 43.25 43.29 43.25 43.25 44.20 43.20 47.43 43.80 44.12 45.54 53.30 California San Diego 28.54 30.43 30.65 30.56 30.30 27.62 27.20 18.92 17.72 29.11 29.08 27.24 34.69 California San Francisco 31.18 32.63 33.38 33.29 32.45 29.58 29.24 18.92 17.72 30.21 30.18 28.35 36.07 California San Jose 29.96 31.90 32.13 32.02 31.33 28.93 28.56 18.92 17.72 29.61 29.59 27.72 35.30 Colorado Boulder 46.88 47.16 47.15 47.03 46.94 45.52 46.25 51.01 51.75 51.07 49.84 49.32 50.06 Colorado Colorado Springs 44.27 43.82 44.42 44.42 44.40 42.87 43.51 45.89 46.41 45.84 47.44 49.07 49.70 Colorado Denver 46.69 46.68 46.65 46.59 46.57 45.22 45.89 48.48 49.00 48.11 49.62 46.85 47.37 Connecticut Ansonia 40.76 43.70 43.70 43.70 43.65 44.39 45.67 47.38 47.30 46.87 47.01 46.94 50.99 Connecticut Norwalk 37.91 40.86 40.86 40.86 40.70 41.46 42.72 44.47 44.36 44.17 44.07 44.00 48.82 District of Columbia Washington 35.32 33.37 39.17 37.84 34.85 35.81 36.34 36.18 39.16 39.08 41.44 42.18 43.74 Florida Miami 40.65 40.65 40.67 40.13 37.40 40.64 41.63 43.86 44.75 44.70 44.70 44.61 45.66 Florida Tampa 37.66 37.87 41.09 41.09 41.18 41.18 42.21 44.98 45.39 45.36 45.26 45.72 47.05 Florida West Palm Beach 39.47 37.39 38.13 38.67 40.66 37.38 38.60 41.76 42.57 43.13 44.02 43.95 45.66 Georgia Albany 39.74 39.74 41.00 41.00 41.15 41.70 42.98 45.16 46.80 46.47 45.94 45.34 45.39 Georgia Atlanta 53.64 58.82 58.87 58.87 58.81 58.81 60.25 62.60 64.84 64.22 64.22 64.37 62.32 Hawaii Honolulu 42.74 44.39 46.09 47.32 47.32 47.32 48.20 49.63 51.85 51.19 51.05 51.25 51.41 Illinois Chicago 34.12 32.12 31.91 31.91 33.74 35.12 36.12 33.08 33.23 32.88 36.64 42.26 57.30 Illinois Decatur 38.01 35.96 35.71 35.15 40.17 42.49 43.49 40.50 20.81 40.63 44.38 50.99 67.32 Illinois Rock Island 38.64 36.58 36.58 35.77 40.79 42.02 43.08 40.24 40.51 40.33 44.08 50.74 66.72 Indiana Indianapolis 57.46 56.78 55.84 55.84 55.84 56.07 57.27 59.03 54.51 49.68 49.76 50.22 49.96 Indiana Terre Haute 47.07 47.07 47.03 47.03 43.91 43.91 37.99 41.96 41.46 41.47 41.29 41.21 41.35 Iowa Fort Dodge 22.44 22.44 22.44 22.44 25.95 25.34 26.26 28.81 29.25 29.78 30.03 31.85 32.30 Kentucky Louisville 60.96 61.01 55.87 56.84 45.27 45.33 48.75 45.12 45.80 45.60 45.58 45.81 45.93 Louisiana Baton Rouge 48.55 49.50 47.76 46.12 45.40 41.53 42.43 45.72 47.26 46.00 46.00 45.86 46.76 Louisiana New Orleans 50.21 50.21 46.30 46.34 45.64 41.30 42.22 43.31 43.96 43.59 43.62 44.41 45.38 Maine Portland 40.54 38.63 38.82 39.75 41.33 43.06 43.78 48.37 49.12 46.89 46.95 47.01 47.01 Maryland Baltimore 43.57 43.57 43.57 43.60 43.16 43.12 44.14 41.28 42.69 42.52 42.34 45.75 46.38 Massachusetts Boston 43.22 42.78 42.78 42.78 42.78 42.78 42.99 42.67 47.00 55.13 56.09 56.13 57.03 Massachusetts Hyannis 46.92 46.92 46.92 48.38 48.38 48.38 47.72 42.67 47.00 55.13 56.09 56.13 56.88 Massachusetts Springfield 43.22 38.89 38.89 38.89 38.89 38.89 39.31 42.67 47.00 55.13 56.09 56.13 57.03 Michigan Detroit 37.02 37.81 40.89 40.89 38.32 40.68 43.28 42.49 42.46 42.48 42.55 48.89 56.14 Michigan Grand Rapids 35.29 36.02 35.81 35.88 36.66 37.57 39.97 41.18 41.12 40.86 40.80 46.72 54.01 Michigan Saginaw 35.11 36.59 37.95 39.14 37.46 38.35 40.71 44.92 44.61 44.36 44.90 50.80 58.14 Minnesota Detroit Lakes 42.35 42.41 42.41 42.28 42.28 42.29 43.22 44.97 44.98 44.26 44.56 44.46 45.08 Minnesota Minneapolis 54.91 54.98 54.98 54.85 54.85 52.05 52.99 54.71 54.72 54.01 54.30 54.16 54.32 Mississippi Pascagoula 57.33 57.33 57.41 56.16 55.88 55.88 54.51 50.20 50.85 50.63 50.64 50.82 50.66 Missouri Kansas City 46.02 45.57 45.57 45.15 45.15 45.34 46.37 49.29 48.48 51.85 52.20 53.60 55.56 Missouri Mexico 32.28 36.13 36.13 36.29 36.29 36.29 37.64 37.10 37.46 36.95 36.69 38.09 35.93 Missouri St. Louis 46.02 45.15 45.15 45.10 45.10 45.40 46.64 49.81 49.90 51.34 51.67 53.07 53.03 Montana Butte 43.82 43.82 43.82 44.07 45.36 42.29 41.84 44.62 44.91 44.39 44.47 44.40 45.03 Nebraska Grand Island 47.87 47.84 47.79 47.79 47.57 49.51 44.78 40.91 40.65 40.06 39.82 38.32 40.05 New Jersey Phillipsburg 27.58 27.58 26.65 26.51 27.86 27.86 28.79 30.48 30.85 31.14 33.06 33.24 33.33 State Monthly Telephone Rates in the Sample Cities for a Business with a Single Line 1 (As of October 15, 2007) Table 1.11 Monthly Telephone Rates in the Sample Cities for a Business with a Single Line - Continued 1 City 1994 1995 1996 1997 1998 1999 2000 2002 2003 2004 2005 2006 2 2007 3 New Mexico Alamogordo 55.84 56.03 56.20 56.37 56.37 50.20 44.55 47.53 48.03 47.57 47.95 48.53 49.14 New York Binghamton 51.24 49.77 49.68 48.07 45.44 48.03 47.91 48.56 49.01 51.55 49.47 51.90 52.87 New York Buffalo 50.80 50.58 50.49 49.12 49.08 48.82 48.69 48.06 49.51 50.28 50.04 52.60 53.60 New York Massena 49.67 49.46 49.37 49.09 49.05 47.74 47.61 45.57 48.84 49.24 49.21 51.73 52.70 New York New York 51.13 50.92 50.73 50.07 48.03 49.05 48.91 48.56 50.22 50.88 50.86 53.37 54.33 New York Ogdensburg 51.07 50.85 50.76 49.78 47.74 49.08 48.95 48.31 49.62 50.13 49.98 52.53 53.52 New York Rochester 49.84 48.28 48.28 48.86 48.82 44.30 44.77 38.59 38.62 38.62 38.31 38.31 51.01 North Carolina Raleigh 41.76 41.53 40.74 39.94 39.96 39.96 40.86 42.59 45.16 53.63 45.67 45.56 46.64 North Carolina Rockingham 36.42 36.11 35.32 34.52 34.52 34.52 36.08 41.31 44.23 44.17 44.61 44.50 47.14 Ohio Canton 44.48 44.22 44.22 44.22 43.11 43.96 44.84 46.31 46.53 48.35 48.26 48.65 48.31 Ohio Cincinnati 53.19 52.99 52.99 51.88 51.37 51.73 55.48 53.94 54.16 53.79 53.71 53.73 53.79 Ohio Cleveland 44.48 43.19 42.16 43.38 40.23 40.20 40.20 41.71 41.79 43.87 43.81 44.20 45.32 Ohio Columbus 44.48 43.19 42.16 42.16 40.23 40.20 40.20 41.68 41.79 43.49 43.43 43.82 44.84 Ohio Toledo 44.48 44.22 44.22 42.16 42.29 41.23 42.11 43.74 43.85 45.85 45.77 46.16 45.83 Oregon Corvallis 39.69 36.99 39.56 39.58 39.83 39.97 38.11 39.55 37.86 37.49 37.48 37.68 37.86 Oregon Portland 46.18 42.79 42.29 42.04 42.00 42.00 42.88 41.86 38.85 37.48 37.48 37.68 37.81 Pennsylvania Allentown 35.98 37.34 37.34 36.53 37.26 37.26 38.15 45.34 47.21 39.05 38.59 40.00 40.67 Pennsylvania Ellwood City 36.52 36.52 38.81 39.99 39.99 39.99 40.88 47.92 49.94 41.78 41.32 42.77 43.40 Pennsylvania Johnstown 37.70 37.37 37.72 37.26 40.01 40.01 40.94 32.69 38.31 41.24 40.82 42.12 43.12 Pennsylvania New Castle 38.81 38.81 38.81 38.53 39.99 39.99 40.88 47.92 31.41 41.78 41.32 42.77 43.40 Pennsylvania Philadelphia 30.63 30.63 28.55 29.99 31.53 31.53 32.42 39.94 41.49 33.61 33.13 34.53 34.94 Pennsylvania Pittsburgh 30.63 31.72 31.72 31.72 31.53 34.26 35.15 39.94 41.75 33.61 33.13 34.53 34.94 Pennsylvania Scranton 35.98 35.98 37.34 37.26 37.26 37.26 38.15 45.34 47.21 39.08 38.59 40.00 40.67 Rhode Island Providence 48.44 48.44 47.82 47.82 47.16 70.51 71.44 70.03 35.17 35.05 34.35 36.16 36.05 South Carolina Beaufort 38.69 38.04 38.04 38.04 38.69 38.69 39.60 42.30 42.19 41.54 42.89 42.36 43.60 Tennessee Memphis 54.70 54.70 54.95 54.95 54.95 54.69 55.71 55.12 55.77 59.40 56.97 56.65 57.78 Tennessee Nashville 52.35 52.35 52.35 52.35 53.77 53.52 54.47 53.58 54.77 57.56 57.95 56.65 57.78 Texas Brownsville 29.23 31.23 31.23 33.82 35.26 31.44 33.83 36.37 35.94 36.50 37.36 40.05 41.07 Texas Corpus Christi 31.90 31.82 31.85 31.01 30.95 29.92 31.16 37.96 39.23 39.16 40.11 42.85 44.96 Texas Dallas 38.66 38.65 38.49 33.35 34.54 38.59 39.11 45.70 50.01 51.97 53.19 56.12 56.72 Texas Fort Worth 34.44 34.50 34.27 37.51 38.81 34.83 37.25 38.47 42.69 44.72 45.80 48.65 49.58 Texas Houston 41.27 41.37 40.35 39.48 42.85 42.85 39.87 49.45 47.76 47.80 48.95 51.80 52.32 Texas San Antonio 34.19 34.14 33.86 30.95 30.95 31.56 33.12 39.00 39.81 39.69 40.72 43.63 44.62 Utah Logan 31.88 31.93 30.22 30.14 28.46 27.82 29.56 32.12 31.37 30.09 31.82 31.06 33.80 Virginia Richmond 75.06 75.06 72.53 72.53 NA 74.56 77.97 78.63 78.74 76.85 76.65 76.86 61.59 Virginia Smithfield 30.08 30.08 30.08 29.98 29.98 29.98 30.94 50.23 52.89 52.68 52.52 52.42 45.51 Washington Everett 39.98 39.98 39.98 39.98 39.98 41.37 42.31 43.98 44.05 43.83 46.55 46.47 48.34 Washington Seattle 37.03 37.03 37.03 37.19 36.47 36.47 37.42 40.82 40.92 40.18 40.14 39.89 40.12 West Virginia Huntington 73.39 73.39 75.05 73.03 72.02 72.02 67.31 60.60 60.90 65.32 65.91 65.83 65.96 Wisconsin Milwaukee 37.48 37.48 37.51 39.69 39.69 40.80 41.15 41.04 40.84 41.94 52.17 56.28 63.24 Wisconsin Racine 39.40 39.12 39.16 39.53 39.52 40.63 40.97 41.91 40.82 41.92 52.15 56.26 63.22 1 Rates are based upon flat-rate service where available and measured/message service with 200 five-minute, same-zone, business day calls. 2 Revised. 3 Subject to revision. State (As of October 15, 2007) State City 1994 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2 2007 3 Alabama Huntsville $73.62 $73.62 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 $69.00 Alaska ACS 30.75 30.75 30.75 30.75 53.00 53.00 53.00 65.70 65.70 56.50 56.50 56.50 56.50 Arizona Tucson 62.31 62.47 58.91 58.91 58.91 60.03 61.48 53.80 47.30 47.30 47.30 47.30 47.30 Arkansas Pine Bluff 93.44 92.94 93.27 93.19 93.22 93.43 93.43 93.43 93.43 84.00 84.00 84.00 84.00 Arkansas West Memphis 93.60 94.24 94.51 94.61 94.30 94.55 94.55 94.55 94.55 84.00 84.00 84.00 84.00 California Anaheim 69.87 71.64 72.23 73.16 71.10 71.10 66.10 72.92 72.92 72.92 71.37 76.35 70.99 California Bakersfield 69.87 71.64 72.23 73.16 71.10 69.80 66.10 72.92 72.92 72.92 71.37 76.35 70.99 California Fresno 69.87 71.64 72.23 73.16 71.10 69.80 66.10 72.92 72.92 72.83 71.37 76.35 70.99 California Long Beach 80.20 84.33 92.51 92.51 92.51 92.51 92.40 93.30 101.34 86.10 90.94 99.58 90.74 California Los Angeles 69.87 71.64 72.23 73.16 71.10 69.80 66.10 73.93 73.93 72.92 71.37 76.35 70.99 California Oakland 69.87 71.64 72.23 73.16 71.10 69.80 66.10 72.92 72.92 72.92 71.37 76.35 70.99 California Salinas 69.87 71.64 72.23 73.16 71.10 69.80 66.10 72.92 72.92 72.92 71.37 76.35 70.99 California San Bernadino 80.20 84.33 91.25 91.25 91.25 91.25 91.13 92.03 100.07 88.59 95.92 104.56 93.14 California San Diego 69.87 71.64 72.23 73.16 71.10 69.80 66.10 72.92 72.92 72.92 71.37 76.35 70.99 California San Francisco 69.87 71.64 72.23 73.16 71.10 69.80 66.10 72.92 72.92 72.92 71.37 76.35 70.99 California San Jose 69.87 71.64 72.23 73.16 71.10 69.80 66.10 72.92 72.92 72.92 71.37 76.35 70.99 Colorado Boulder 74.84 74.91 75.08 75.08 75.08 60.94 59.54 61.94 61.94 62.03 65.58 64.68 60.07 Colorado Colorado Springs 72.80 72.80 72.80 72.80 72.80 58.97 57.67 56.11 57.23 57.23 65.58 64.66 59.74 Colorado Denver 75.11 75.11 75.11 75.11 75.11 60.84 59.45 59.05 59.05 59.05 58.30 57.55 58.17 Connecticut Ansonia 68.90 68.90 68.90 68.90 68.90 68.90 68.90 79.50 79.50 75.00 75.00 75.00 75.00 Connecticut Norwalk 68.90 68.90 68.90 68.90 68.90 68.90 68.90 79.50 79.50 75.00 75.00 75.00 75.00 District of Columbia Washington 66.03 66.03 83.25 83.25 83.25 83.25 83.25 83.25 99.49 99.49 99.49 99.49 99.49 Florida Miami 59.92 60.20 60.20 60.20 59.92 60.20 64.45 64.23 64.58 64.58 71.23 71.23 72.96 Florida Tampa 78.89 78.89 74.07 74.07 74.07 74.07 74.07 74.07 81.30 81.30 81.30 81.30 81.30 Florida West Palm Beach 59.92 59.92 59.92 59.92 60.20 59.92 64.39 64.18 64.42 64.42 71.23 71.23 72.96 Georgia Albany 52.25 52.25 52.25 58.25 58.25 58.25 58.25 58.25 58.25 58.25 58.25 58.25 58.25 Georgia Atlanta 52.25 52.25 52.25 58.25 58.25 58.25 58.25 58.25 58.25 58.25 60.64 60.64 60.64 Hawaii Honolulu 47.50 47.50 51.47 52.97 52.97 54.97 49.61 44.61 53.91 52.09 52.09 52.09 52.09 Illinois Chicago 93.03 57.64 57.64 57.64 57.64 59.99 58.42 58.42 58.42 52.35 52.35 52.35 52.35 Illinois Decatur 93.17 57.72 57.72 57.72 57.72 59.55 57.98 57.98 57.98 52.35 52.35 52.35 52.35 Illinois Rock Island 93.17 57.72 57.72 57.72 57.72 59.55 57.98 57.98 57.98 52.35 52.35 52.35 52.35 Indiana Indianapolis 59.00 59.00 59.00 59.00 59.00 59.00 59.00 59.00 59.00 59.00 59.00 52.35 52.35 Indiana Terre Haute 68.78 68.78 68.78 68.78 68.78 68.78 68.78 68.78 71.40 71.40 71.40 52.35 52.35 Iowa Fort Dodge 15.65 15.65 15.65 15.65 22.22 21.60 21.57 21.57 21.51 20.59 20.76 52.35 52.35 Kentucky Louisville 47.50 47.50 73.00 73.00 73.00 73.00 77.38 77.38 77.38 77.38 73.00 52.35 77.38 Louisiana Baton Rouge 88.06 87.55 87.55 87.55 87.55 87.55 91.80 87.55 91.93 91.93 91.93 52.35 91.80 Louisiana New Orleans 87.55 87.55 87.55 87.55 87.55 87.55 87.55 87.55 87.55 87.55 87.55 52.35 87.55 Maine Portland 59.36 59.36 59.36 59.36 59.08 59.08 58.80 58.80 60.48 60.76 60.87 52.35 60.87 Maryland Baltimore 98.50 98.50 98.50 98.50 87.00 87.00 87.00 87.00 115.29 115.29 115.29 107.10 108.01 Massachusetts Boston 97.67 97.67 97.67 97.67 97.67 97.67 97.67 97.67 100.46 100.46 100.46 100.46 104.66 Massachusetts Hyannis 97.67 97.67 97.67 97.67 97.67 97.67 97.67 97.67 100.46 100.46 100.46 100.46 104.66 Massachusetts Springfield 97.67 97.67 97.67 97.67 97.67 97.67 97.67 97.67 100.46 100.46 100.46 100.46 104.66 Michigan Detroit 44.52 44.52 44.52 44.52 44.52 46.62 46.62 46.62 46.62 46.90 46.90 46.90 46.90 Michigan Grand Rapids 43.68 44.52 44.52 44.52 44.52 44.52 44.52 44.52 44.52 44.78 44.78 44.79 44.79 Michigan Saginaw 44.52 44.52 44.52 44.52 44.52 44.52 44.52 44.52 44.52 44.78 44.78 44.79 44.79 Minnesota Detroit Lakes 49.50 49.50 47.93 51.01 51.01 51.01 51.01 51.01 51.01 51.01 51.01 51.01 51.01 Minnesota Minneapolis 49.50 49.50 48.15 51.25 51.25 51.25 51.25 51.25 51.25 51.25 51.25 51.25 51.25 Mississippi Pascagoula 71.69 71.69 71.69 71.69 71.69 71.69 71.69 71.69 71.69 71.69 71.69 71.69 71.69 Missouri Kansas City 70.78 61.44 61.44 61.50 61.63 61.13 59.69 60.37 60.83 61.38 61.38 61.38 53.65 Missouri Mexico 68.55 59.70 59.70 59.96 60.80 59.96 59.41 58.96 59.49 59.45 59.45 59.45 53.34 Missouri St. Louis 70.78 61.63 61.63 61.63 59.96 61.98 61.46 62.13 62.59 61.51 61.51 61.51 53.41 Montana Butte 61.40 61.40 61.40 61.40 61.40 61.40 61.25 61.25 61.25 61.25 61.25 61.25 61.25 Nebraska Grand Island 49.05 49.05 49.13 49.13 49.13 51.02 50.83 51.05 51.05 51.28 50.75 50.75 50.75 New Jersey Phillipsburg 79.50 79.50 80.27 80.27 80.27 80.27 85.09 85.09 87.50 87.50 87.50 87.50 88.30 Table 1.12 Connection Charges for a Single Business Line in the Sample Cities 1 (As of October 15, 2007) State City 1994 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2 2007 3 New Mexico Alamogordo 57.46 57.47 57.29 57.29 57.29 57.29 57.53 57.57 57.57 57.70 58.05 60.19 60.02 New York Binghamton 120.48 120.92 120.68 120.46 122.51 120.34 118.64 117.72 120.90 122.09 121.83 121.58 121.82 New York Buffalo 123.65 123.08 122.85 122.62 123.00 122.51 120.64 117.82 121.00 132.93 124.21 124.38 124.62 New York Massena 120.77 120.20 119.98 119.75 123.10 119.64 128.76 116.76 119.94 120.50 120.77 120.91 121.14 New York New York 124.53 123.95 123.45 123.22 120.34 123.10 120.45 118.09 121.27 124.55 124.42 124.42 124.51 New York Ogdensburg 124.17 123.58 123.35 123.12 119.64 123.00 121.15 119.94 123.12 124.21 123.95 124.09 124.33 New York Rochester 57.16 55.56 55.56 55.56 57.27 57.27 56.48 54.96 54.96 50.89 50.89 50.89 58.05 North Carolina Raleigh 64.38 64.38 64.38 66.95 66.95 66.95 66.95 68.90 68.90 68.90 69.55 69.55 69.39 North Carolina Rockingham 64.38 64.38 64.38 66.95 66.95 66.95 66.95 68.90 68.90 68.90 69.55 69.55 69.39 Ohio Canton 72.15 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 66.62 66.62 66.62 Ohio Cincinnati 55.78 55.78 55.78 55.78 49.75 49.75 49.75 49.75 49.75 49.75 49.75 49.75 49.75 Ohio Cleveland 72.15 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 67.56 67.56 67.72 Ohio Columbus 72.15 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 66.78 66.78 66.78 Ohio Toledo 72.15 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 62.85 67.09 67.09 67.09 Oregon Corvallis 31.00 31.00 31.93 31.93 31.93 31.93 32.86 33.60 33.64 33.79 31.93 34.14 34.14 Oregon Portland 31.00 31.00 31.00 31.93 31.93 31.93 32.86 33.64 33.64 33.79 33.79 34.14 34.14 Pennsylvania Allentown 79.50 79.50 79.50 79.50 79.50 79.50 79.50 79.50 81.75 81.75 81.75 54.50 54.50 Pennsylvania Ellwood City 79.50 79.50 79.50 79.50 79.50 79.50 79.50 79.50 81.75 81.75 81.75 54.50 54.50 Pennsylvania Johnstown 60.44 60.44 60.44 60.44 60.44 60.44 60.44 78.43 62.24 62.24 62.24 62.24 62.24 Pennsylvania New Castle 79.50 79.50 79.50 79.50 79.50 79.50 79.50 79.50 81.75 81.75 81.75 54.50 54.50 Pennsylvania Philadelphia 79.50 79.50 79.50 79.50 79.50 79.50 79.50 79.50 82.50 82.50 82.50 55.00 55.00 Pennsylvania Pittsburgh 79.50 79.50 79.50 79.50 79.50 79.50 79.50 79.50 82.50 82.50 82.50 55.00 55.00 Pennsylvania Scranton 79.50 79.50 79.50 79.50 79.50 79.50 79.50 79.50 81.75 81.75 81.75 54.50 54.50 Rhode Island Providence 46.50 46.50 46.50 46.50 47.73 47.73 47.73 47.73 49.12 49.07 49.07 49.07 53.85 South Carolina Beaufort 35.60 35.60 35.60 35.60 35.60 35.60 35.60 35.60 35.60 35.60 35.60 35.60 35.60 Tennessee Memphis 66.80 66.80 67.12 67.12 63.62 66.82 66.65 67.33 67.64 64.37 64.06 64.06 64.06 Tennessee Nashville 63.62 63.62 63.62 63.62 68.37 63.33 63.33 63.47 64.06 64.06 64.06 64.20 64.06 Texas Brownsville 64.57 69.00 69.00 68.99 69.45 69.45 69.45 62.22 62.22 62.03 62.03 62.03 62.03 Texas Corpus Christi 69.45 69.29 69.34 70.72 64.27 64.35 64.35 62.00 62.00 61.96 61.96 61.96 61.96 Texas Dallas 70.91 70.91 70.61 68.82 64.57 70.80 70.80 62.22 62.22 62.03 62.11 62.11 62.11 Texas Fort Worth 70.09 70.21 69.75 67.87 70.28 70.87 70.87 62.22 62.22 61.74 61.74 61.74 61.74 Texas Houston 70.89 70.93 69.18 70.32 71.20 64.57 64.57 62.22 62.22 61.45 61.45 61.45 61.45 Texas San Antonio 69.45 69.34 68.78 68.78 70.72 64.27 64.27 62.00 62.00 61.45 61.45 61.45 61.45 Utah Logan 53.06 53.06 53.06 53.00 53.00 53.66 53.30 53.36 53.36 55.78 55.78 55.57 55.30 Virginia Richmond 64.00 64.00 64.00 64.00 64.00 64.00 64.00 64.00 84.42 82.56 82.56 83.46 69.88 Virginia Smithfield 29.25 29.25 29.25 29.25 29.25 40.00 40.00 40.00 47.20 47.20 47.20 47.20 43.20 Washington Everett 57.19 57.19 70.67 70.67 70.67 70.67 70.67 70.67 75.85 75.85 76.05 76.05 76.05 Washington Seattle 55.25 55.25 55.25 55.45 55.45 55.45 55.29 55.55 55.55 55.55 55.55 55.55 55.60 West Virginia Huntington 96.90 96.90 96.90 96.90 79.00 79.00 79.00 79.00 82.97 82.95 82.95 82.95 82.95 Wisconsin Milwaukee 68.21 68.21 68.27 68.27 67.95 68.27 68.27 68.27 68.27 64.65 64.65 64.65 64.65 Wisconsin Racine 68.21 67.88 67.95 67.95 72.60 67.95 67.95 67.95 67.95 64.65 64.65 64.65 64.65 1 Charges include touch-tone charges, surcharges, and taxes. 2 Revised figures. 3 Subject to revisision. Connection Charges for a Single Business Line in the Sample Cities - Continued 1 (As of October 15, 2007) Table 1.12 a. Maximum Charge 38.59$ b. Minimum Charge 16.70$ c. Representative Monthly Charge $25.62 (Weighted Average) d. Weighted Standard Deviation (Std Dev) $5.45 e. Average + 2*(Std Dev) ( = c + 2d) $36.52 f. Percent to Average ( = [e/c] * 100) 143% Table 1.13 (as of October 15, 2007) Standard Deviation Analysis of Residential Rates in the Sample Cities 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 1 2007 2 Maximum Rate $32.68 $31.63 $30.62 $28.65 $28.78 $28.27 $28.75 $29.72 $34.75 $34.95 $35.56 $35.35 $35.16 $37.01 $38.59 Minimum Rate $12.18 $12.18 $13.04 $13.04 $13.05 $13.05 $13.05 $13.21 $15.31 $15.93 $16.30 $16.03 $16.39 $17.10 $16.70 Representative Monthly Rate (Average) $19.95 $19.81 $20.01 $19.95 $19.88 $19.76 $19.93 $20.78 $22.62 $24.07 $24.65 $24.52 $24.57 $25.26 $25.62 Weighted Standard Deviation (Std Dev) $4.23 $4.28 $3.41 $3.28 $3.35 $3.24 $3.46 $3.57 $4.20 $4.32 $4.90 $4.93 $4.49 $4.78 $5.45 Average + 2*(Std Dev) $28.41 $28.38 $26.84 $26.51 $26.58 $26.24 $26.85 $27.92 $31.01 $32.71 $34.45 $34.38 $33.55 $34.83 $36.52 Percentage to Average 142% 143% 134% 133% 134% 133% 135% 134% 137% 136% 140% 140% 137% 138% 143% Average + 3*(Std Dev) $32.65 $32.66 $30.25 $29.78 $29.93 $29.47 $30.31 $31.49 $35.21 $37.03 $39.35 $39.31 $38.04 $39.62 $41.96 Percentage to Average 164% 165% 151% 149% 151% 149% 152% 152% 156% 154% 160% 160% 155% 157% 164% 1 Revised figures. 2 Subject to revision. Table 1.14 Historical Standard Deviation Analysis of Residential Rates in the Sample Cities (As of October 15, 2007) Table 1.15 Average Revenue per Minute for Interstate Toll Service Calls Year 1992 $0.15 1993 0.15 1994 0.14 1995 0.12 1996 0.12 1997 0.11 1998 0.11 1999 0.11 2000 0.09 2001 0.08 2002 0.07 2003 0.06 2004 0.06 2005 0.06 2006 0.06 Source: Industry Analysis and Technology Division of the Wireline Competition Bureau, Telecommunications Industry Revenues (March 31, 2007) Revenue per Minute II. Expenditures on Telephone Service A. Residential Expenditures The Bureau of Labor Statistics (BLS) conducts surveys of consumer expenditures, in part, to develop weights for the consumer price indices. The surveys collect income, expenditure, and demographic information for “consumer units.” Consumer units are often referred to as households, but the definition is not identical to households, as defined by the Census Bureau. 1 For instance, there were approximately 118.8 million consumer units in 2006, compared with approximately 114.3 million households. The BLS uses two types of surveys: diary surveys, where household members record most types of purchases for a few weeks; and interview surveys, where households are interviewed to determine their expenditures for the prior three months. Households selected for the interview survey are interviewed in five successive quarters. Tables 2.1 through 2.5 present the annual average total expenditures and telephone expenditures by various demographic classifications. Prior to 1984, the BLS published separate expenditure estimates based on the diary and the interview surveys. At that time, telephone expenditures were collected only through the interview surveys, and average levels of telephone expenditures were published only in the interview summaries. The BLS began publishing integrated estimates in 1984, combining information from both types of surveys. Expenditure data were not collected for rural households for 1980 through 1983. Nationwide expenditure data for rural households are available for 1984 through 2004. According to the BLS, more than 85 percent of households are in urban areas, and the estimates of telephone expenditures by urban households are similar to estimates for nationwide average telephone expenditures. Nonetheless, 1980 through 1983 nationwide data are not completely comparable with subsequent data. Several changes in the telephone industry make it difficult to interpret changes in the BLS estimates of household expenditures for telephone service. Prior to 1983, most residential telephones were leased from local exchange carriers. As a consequence of the FCC's Computer Inquiry II proceeding, telephone sets were detariffed on January 1, 1984. Existing tariffed equipment became known as "embedded rate base" and much of this equipment was sold “in place” to consumers. Significant amounts of equipment purchases were included on local telephone bills in 1983 and 1984. Telephone bills have not included significant amounts of equipment sales since that time. The remaining Bell System embedded rate base was transferred to AT&T in 1984, but the lease payments were included in local telephone bills into 1987. The BLS has changed the consumer expenditure survey questionnaires to reflect changes in the equipment market. Beginning in 1982, the survey specifically included telephones and accessories in its list of home furnishings and related household items. Amounts appearing on the telephone bills, however, were included as telephone service until 1986. Thus, the 1983 and 1984 estimates include the sale of the embedded base. The current questionnaire separates equipment sales from other items that appear on telephone bills. The questionnaire does not specifically address payments for leasing telephone equipment, commonly known as customer premises equipment (CPE). CPE lease payments may still be reported as telephone service expenditures. 1 We also refer to consumer units as “households.” II-1 The consumer expenditure survey continues to classify payments for inside wiring maintenance as part of telephone service. This probably accounts for between $10 to $20 of average annual household telephone expenditures. Beginning in 1991, consumers have been asked to separately identify cellular telephone payments. The BLS has not yet published a separate estimate for cellular telephone expenditures, but instead continues to include these with other telephone expenditures. Table 2.6 presents estimates of monthly household telecommunications expenditure by the type of service provider. This table is derived from Bill Harvesting® data collected by TNS Telecoms, which provides information on actual usage in the residential telecom market as collected from the actual telecommunications bills of households. TNS Telecoms, a telecommunications market information firm, conducts nationwide surveys and Bill Harvesting® on a quarterly basis from over 120,000 households each year. The company has donated databases to the Commission containing information on residential phone usage. B. Business Expenditures One of the few sources of information on expenditures for telecommunications services by businesses is contained in the input-output (I-O) accounts of the U.S. economy as published by the U.S. Bureau of Economic Analysis (BEA). The BEA I-O accounts show how industries provide input to, and use output from, each account to produce estimates of Gross Domestic Product (GDP). Note that the BEA’s I-O accounts data were once based on Standard Industrial Classification (SIC) industry definitions and released only once every five years in accordance with the U.S. Census Bureau’s economic censuses. 2 The U.S. Census Bureau has since replaced SIC industries with those defined according to the 1997 North American Industry Classification System (NAICS). In accordance with this change, the BEA now releases I-O accounts data on an annual basis for NAICS industries. Detailed definitions of NAICS industries are available at www.census.gov/epcd/www/naicstab.htm. Table 2.7 shows the most recent I-O account of the use of broadcasting and telecommunications commodities by U.S. industry. Table 2.8 presents the most recent account of the commodities used by the U.S. broadcasting and telecommunications industry. The underlying data presented in these tables is available at: http://www.bea.gov/industry/xls/Annual_IOMakeUse_After_Redefintions_98-06.xls. C. Additional Sources of Information on Expenditures for Telephone Service Additional information from the Consumer Expenditure Survey is available from the Bureau of Labor Statistics at www.bls.gov/cex/. TNS Telecoms has donated databases to the Commission containing information on residential phone usage collected from actual consumer telecommunications bills. TNS Telecoms has granted the Commission permission to use these databases for industry research purposes and to publish the industry level results. TNS Telecoms has been monitoring the telecommunications market since 1995 through both the ReQuest® 2 See, e.g., Tables 2.7 and 2.8 of the 2005 edition of the Reference Book. II-2 II-3 consumer survey and Bill Harvesting® in the residential market and the BusinessWave® business survey in the business market. Table 2.6 comes 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 Ave, Suite 502, Jenkintown, PA 19046. Additional information on the input-output accounts of the U.S. economy is available from the Bureau of Economic Analysis at www.bea.gov on the Internet. Concordance between I-O industry codes and 1987 SIC codes can be found in Appendix A of Benchmark Input-Output Accounts for the U.S. Economy, 1997 in Survey of Current Business, November, 1997. Information concerning the conversion from 1987 SIC codes to NAICS codes can be found at www.census.gov/epcd/naics02/. The Bureau of the Census publishes the Service Annual Survey that also provides some estimates of household and business expenditures on telephone service. This information can be found at www.census.gov on the Internet. All Urban Rural Households Households Households Northeast Midwest South West 1980 $16,723 $16,723 $17,222 $16,024 $16,188 $17,962 1981 17,558 17,558 17,053 17,324 17,086 19,275 1982 18,071 18,071 16,980 18,143 17,820 19,710 1983 19,692 19,692 19,077 19,580 19,074 21,538 1984 21,975 22,729 $18,217 21,593 21,167 21,587 24,238 1985 23,490 24,129 20,257 22,808 22,664 23,180 25,961 1986 23,866 24,571 19,677 24,905 22,706 22,545 26,476 1987 24,414 25,063 20,513 25,079 23,021 23,292 27,309 1988 25,892 26,617 21,380 26,348 24,753 24,671 28,830 1989 27,809 28,584 23,106 28,241 26,062 26,232 32,144 1990 28,369 28,989 24,499 28,369 25,919 27,011 32,445 1991 29,614 30,382 24,785 31,026 27,675 28,062 33,131 1992 29,846 30,569 25,347 31,177 28,445 27,750 33,647 1993 30,692 31,431 26,296 31,634 28,884 29,247 34,348 1994 31,731 32,233 28,668 32,549 30,331 30,072 35,318 1995 32,264 33,101 27,160 33,009 31,909 30,289 35,206 1996 33,797 34,502 28,853 34,163 33,025 32,871 35,795 1997 34,819 35,614 29,353 36,070 33,791 32,226 39,037 1998 35,535 36,349 29,813 37,535 34,513 32,958 38,938 1999 37,027 37,905 30,831 38,446 36,337 33,328 42,364 2000 38,045 38,942 31,831 38,902 39,213 34,707 41,328 2001 39,518 40,355 33,681 41,169 39,548 36,285 43,261 2002 40,677 41,600 34,067 42,390 40,601 37,281 44,728 2003 40,817 41,619 35,157 42,162 40,280 37,625 45,381 2004 43,395 44,172 38,088 46,115 43,371 39,174 47,922 2005 46,409 47,177 38,486 47,921 45,027 42,504 52,891 2006 48,398 49,285 38,855 49,164 45,085 44,501 57,486 1980 $325 $325 $335 $303 $339 $320 1981 360 360 358 353 365 366 1982 375 375 351 364 372 426 1983 415 415 410 393 435 419 1984 435 450 359 433 407 445 458 1985 455 466 402 459 419 457 500 1986 471 478 425 470 444 477 494 1987 499 503 475 501 464 505 532 1988 537 544 493 524 498 545 585 1989 567 577 505 570 532 572 601 1990 592 599 549 589 547 616 611 1991 618 621 601 621 595 616 647 1992 623 629 580 636 589 624 646 1993 658 666 606 677 616 673 664 1994 690 698 642 700 663 690 713 1995 708 720 633 717 706 714 691 1996 772 779 726 763 753 796 764 1997 809 814 773 785 778 839 817 1998 830 834 801 814 801 858 828 1999 849 854 812 846 858 862 822 2000 877 889 790 856 884 891 864 2001 914 927 825 897 914 924 914 2002 957 972 851 952 934 987 936 2003 956 967 875 932 917 1,002 941 2004 990 1,000 923 988 946 1,031 971 2005 1,048 1,055 966 1,035 1,000 1,085 1,047 2006 1,087 1,091 1,038 1,051 998 1,167 1,081 1980 1.94% 1.94% 1.95% 1.89% 2.09% 1.78% 1981 2.05 2.05 2.10 2.04 2.14 1.90 1982 2.08 2.08 2.07 2.01 2.09 2.16 1983 2.11 2.11 2.15 2.01 2.28 1.95 1984 1.98 1.98 1.97% 2.01 1.92 2.06 1.89 1985 1.94 1.93 1.98 2.01 1.85 1.97 1.93 1986 1.97 1.95 2.16 1.89 1.96 2.12 1.87 1987 2.04 2.01 2.32 2.02 2.02 2.17 1.95 1988 2.07 2.04 2.31 1.99 2.01 2.21 2.03 1989 2.04 2.02 2.19 2.02 2.04 2.18 1.87 1990 2.09 2.07 2.24 2.08 2.11 2.28 1.88 1991 2.09 2.04 2.42 2.01 2.15 2.20 1.95 1992 2.09 2.06 2.29 2.04 2.07 2.25 1.92 1993 2.14 2.12 2.30 2.14 2.13 2.30 1.93 1994 2.17 2.16 2.24 2.15 2.18 2.30 2.02 1995 2.19 2.18 2.33 2.17 2.21 2.36 1.96 1996 2.28 2.26 2.52 2.23 2.28 2.28 2.13 1997 2.32 2.26 2.77 2.18 2.30 2.60 2.09 1998 2.34 2.29 2.69 2.17 2.32 2.60 2.13 1999 2.29 2.25 2.63 2.20 2.36 2.59 1.94 2000 2.31 2.28 2.48 2.20 2.25 2.57 2.09 2001 2.31 2.30 2.45 2.18 2.31 2.55 2.11 2002 2.35 2.34 2.50 2.25 2.30 2.65 2.09 2003 2.34 2.32 2.49 2.21 2.28 2.66 2.07 2004 2.28 2.26 2.42 2.14 2.18 2.63 2.03 2005 2.26 2.24 2.51 2.16 2.22 2.55 1.98 2006 2.25 2.21 2.67 2.14 2.21 2.62 1.88 Total Household Expenditures Household Expenditure for Telephone Service Expenditures on Telephone Service as a Percentage of Total Household Expenditures Table 2.1 Average Annual Household Expenditures by Household Location Census Region White & Other Black Hispanic Non-Hispanic 1980 $17,335 $12,016 1981 18,169 12,856 1982 18,693 13,229 1983 20,567 12,878 1984 22,847 14,631 1985 24,399 15,979 1986 24,806 16,203 1987 25,376 16,324 1988 27,004 16,670 1989 28,944 18,343 1990 29,547 19,130 1991 30,794 20,091 1992 31,158 19,695 1993 31,967 20,684 1994 32,614 22,413 $26,433 $32,165 1995 33,737 23,739 26,744 32,729 1996 34,994 24,926 27,868 34,338 1997 36,076 25,509 29,333 35,325 1998 36,848 25,796 30,013 36,044 1999 38,354 27,374 33,105 37,385 2000 39,406 28,152 32,735 38,549 2001 40,968 28,903 34,361 40,009 2002 42,135 30,136 34,742 41,295 2003 42,451 28,708 34,575 41,521 2004 45,135 30,481 37,578 44,084 2005 48,077 32,849 40,123 47,154 2006 49,994 34,583 43,053 49,093 1980 $321 $356 1981 359 370 1982 368 432 1983 411 448 1984 432 462 1985 454 463 1986 470 478 1987 498 506 1988 537 536 1989 563 603 1990 588 624 1991 613 657 1992 619 647 1993 650 719 1994 681 756 $793 $681 1995 698 782 796 700 1996 757 887 870 763 1997 791 945 833 807 1998 818 915 811 831 1999 837 934 872 847 2000 862 986 889 876 2001 899 1,024 917 914 2002 944 1,050 1,021 950 2003 946 1,027 968 954 2004 986 1,025 1,031 985 2005 1,032 1,124 1,032 1,038 2006 1,074 1,154 1,033 1,072 1980 1.85% 2.96% 1981 1.98 2.88 1982 1.97 3.27 1983 2.00 3.48 1984 1.89 3.16 1985 1.86 2.90 1986 1.89 2.95 1987 1.96 3.10 1988 1.99 3.22 1989 1.95 3.29 1990 1.99 3.26 1991 1.99 3.27 1992 1.99 3.29 1993 2.03 3.48 1994 2.07 3.37 3.00% 2.12% 1995 2.09 3.29 2.98 2.14 1996 2.16 3.56 3.12 2.22 1997 2.19 3.70 2.84 2.28 1998 2.22 3.55 2.70 2.31 1999 2.18 3.41 2.63 2.27 2000 2.19 3.50 2.72 2.27 2001 2.19 3.54 2.67 2.28 2002 2.24 3.48 2.94 2.30 2003 2.23 3.58 2.80 2.30 2004 3.00 3.36 2.57 2.09 2005 2.15 3.42 2.57 2.20 2006 2.15 3.34 2.40 2.18 Household Expenditure for Telephone Service Expenditures on Telephone Service as Percentage of Total Household Expenditures Table 2.2 Average Annual Household Expenditures by Race and National Origin By Race By National Origin 1234 5 1980 $7,746 $11,452 $15,370 $20,143 $29,717 1981 7,945 11,688 16,099 21,280 31,404 1982 8,080 11,788 16,200 21,444 33,311 1983 8,557 12,504 17,239 23,359 36,936 1984 10,894 14,337 19,469 26,138 41,825 1985 11,417 15,092 20,374 27,760 45,156 1986 11,477 14,639 21,088 28,698 46,242 1987 10,355 15,686 21,708 29,603 46,470 1988 10,893 16,880 23,290 32,084 48,718 1989 12,119 17,616 24,476 34,231 53,093 1990 12,908 17,924 24,673 34,247 55,411 1991 13,464 18,986 26,144 36,151 57,597 1992 12,643 19,257 26,573 36,094 57,981 1993 13,957 19,712 26,603 37,299 59,521 1994 14,356 20,891 28,513 39,033 60,803 1995 14,607 22,126 29,125 39,395 62,639 1996 15,896 22,799 30,402 41,965 66,794 1997 16,008 23,558 31,447 42,846 66,800 1998 16,630 23,709 31,400 43,811 70,648 1999 16,766 24,850 33,078 46,015 75,080 2000 17,940 26,550 34,716 46,794 75,102 2001 18,883 26,492 35,660 48,772 77,125 2002 19,061 27,140 36,881 50,432 79,199 2003 18,492 26,729 36,213 50,468 81,731 2004 17,837 27,410 36,980 50,974 83,710 2005 19,120 28,921 39,098 54,354 90,469 2006 20,410 30,224 41,431 55,697 94,150 1980 $202 $266 $335 $365 $450 1981 235 294 361 415 487 1982 257 314 354 423 506 1983 268 353 386 472 571 1984 295 350 430 476 630 1985 311 363 449 503 628 1986 337 383 453 526 662 1987 335 403 501 547 670 1988 352 441 538 585 727 1989 370 459 564 644 757 1990 402 496 585 647 818 1991 415 532 596 665 834 1992 424 533 621 677 844 1993 457 532 652 731 911 1994 455 591 672 761 963 1995 491 599 703 785 968 1996 513 641 750 892 1,100 1997 530 671 794 909 1,142 1998 527 661 801 947 1,194 1999 559 671 825 975 1,227 2000 575 705 860 1,004 1,305 2001 558 727 906 1,054 1,343 2002 584 741 928 1,150 1,433 2003 564 768 932 1,142 1,441 2004 562 787 956 1,185 1,460 2005 596 847 1,035 1,227 1,532 2006 634 862 1,089 1,297 1,551 1980 2.61% 2.32% 2.18% 1.81% 1.51% 1981 2.96 2.52 2.24 1.95 1.55 1982 3.18 2.66 2.19 1.97 1.52 1983 3.13 2.82 2.24 2.02 1.55 1984 2.71 2.44 2.21 1.82 1.51 1985 2.72 2.41 2.20 1.81 1.39 1986 2.94 2.62 2.15 1.83 1.43 1987 3.24 2.57 2.31 1.85 1.44 1988 3.23 2.61 2.31 1.82 1.49 1989 3.05 2.61 2.30 1.88 1.43 1990 3.11 2.77 2.37 1.89 1.48 1991 3.08 2.80 2.28 1.84 1.45 1992 3.35 2.77 2.34 1.88 1.46 1993 3.27 2.70 2.45 1.96 1.53 1994 3.17 2.83 2.36 1.95 1.58 1995 3.38 2.71 2.41 1.99 1.55 1996 3.20 2.94 2.46 2.05 1.57 1997 3.24 3.02 2.53 2.09 1.63 1998 3.17 2.79 2.55 2.16 1.69 1999 3.33 2.70 2.49 2.12 1.63 2000 3.21 2.66 2.48 2.15 1.74 2001 2.96 2.74 2.54 2.16 1.74 2002 3.06 2.73 2.52 2.28 1.81 2003 3.05 2.87 2.57 2.26 1.76 2004 3.15 2.87 2.59 2.32 1.74 2005 3.12 2.93 2.65 2.26 1.69 2006 3.11 2.85 2.63 2.33 1.65 Total Household Expenditures Household Expenditures for Telephone Service Expenditures on Telephone Service as a Percentage of Total Household Expenditures Table 2.3 Average Annual Household Expenditures by Household Income Households Grouped by Total Income from Lowest to Highest Quintile Under 25 25-34 35-44 45-54 55-64 65-74 Over 75 1980 $10,903 $17,452 $21,235 $22,517 $17,535 1981 11,309 18,503 22,890 23,385 17,418 1982 11,368 18,814 23,309 23,539 18,449 1983 11,855 19,708 25,230 25,896 20,585 1984 13,461 22,294 28,214 28,696 23,401 $15,842 $11,122 1985 13,763 23,349 29,604 30,946 24,766 17,938 13,012 1986 14,142 23,931 31,219 32,218 24,808 17,506 12,198 1987 14,368 24,177 31,473 31,708 25,707 18,888 12,230 1988 16,373 25,770 33,077 33,205 25,765 20,120 13,339 1989 16,577 26,683 35,589 36,073 26,617 21,152 15,919 1990 16,525 28,117 35,594 37,012 29,263 20,901 15,450 1991 16,745 29,280 36,446 38,137 31,945 22,564 15,782 1992 17,258 29,554 37,196 37,427 31,704 22,862 17,794 1993 17,468 28,594 37,429 41,020 32,973 23,706 18,350 1994 18,417 30,468 37,565 41,420 33,682 25,059 19,280 1995 18,425 31,493 38,397 42,179 32,626 25,277 18,572 1996 18,384 33,020 39,944 42,722 36,132 27,739 19,603 1997 18,450 34,902 40,413 45,239 35,954 27,792 20,279 1998 19,436 34,779 42,154 45,475 37,329 27,830 20,987 1999 21,704 36,158 42,792 46,511 39,394 29,864 22,884 2000 22,543 38,945 45,149 46,160 39,340 30,782 21,908 2001 23,526 39,451 46,908 47,930 41,462 32,023 23,099 2002 24,229 40,318 48,330 48,748 44,330 32,243 23,759 2003 22,396 40,525 47,175 50,101 44,191 33,629 25,016 2004 24,535 42,701 50,402 52,764 47,299 36,512 25,763 2005 27,776 45,068 55,190 55,854 49,592 38,573 27,018 2006 28,181 47,582 57,476 57,563 50,789 40,960 28,904 1980 $248 $343 $401 $415 $319 1981 275 377 433 458 364 1982 266 389 436 484 391 1983 275 439 472 535 421 1984 292 450 541 558 451 $341 $266 1985 323 449 535 576 473 377 298 1986 342 485 546 580 483 399 316 1987 381 504 586 607 521 401 328 1988 417 534 617 669 543 458 338 1989 396 583 640 719 567 486 360 1990 430 604 682 750 590 476 376 1991 471 629 684 803 641 487 376 1992 469 648 698 753 652 502 421 1993 512 687 734 782 707 520 441 1994 570 726 766 819 697 551 445 1995 541 744 777 859 723 577 443 1996 537 838 856 925 814 618 459 1997 550 893 921 952 842 627 458 1998 560 888 947 993 835 679 494 1999 562 924 950 1,008 869 711 506 2000 589 950 1,018 1,007 909 720 511 2001 629 1,001 1,035 1,072 926 746 551 2002 641 1,032 1,096 1,109 981 794 579 2003 616 1,001 1,097 1,156 981 773 572 2004 642 1,028 1,045 1,178 1,040 815 579 2005 744 1,099 1,208 1,229 1,077 845 619 2006 722 1,129 1,271 1,269 1,115 889 645 1980 2.27% 1.97% 1.89% 1.84% 1.82% 1981 2.43 2.04 1.89 1.96 2.09 1982 2.34 2.07 1.87 2.06 2.12 1983 2.32 2.23 1.87 2.07 2.05 1984 2.17 2.02 1.92 1.94 1.93 2.15% 2.39% 1985 2.35 1.92 1.81 1.86 1.91 2.10 2.29 1986 2.42 2.03 1.75 1.80 1.95 2.28 2.59 1987 2.65 2.08 1.86 1.91 2.03 2.12 2.68 1988 2.55 2.07 1.87 2.01 2.11 2.28 2.53 1989 2.39 2.18 1.80 1.99 1.98 2.30 2.26 1990 2.60 2.15 1.92 2.03 2.02 2.28 2.43 1991 2.81 2.15 1.88 2.11 2.01 2.16 2.38 1992 2.72 2.19 1.88 2.01 2.06 2.20 2.37 1993 2.93 2.40 1.96 1.91 2.14 2.19 2.40 1994 3.09 2.38 2.04 1.98 2.07 2.20 2.31 1995 2.94 2.36 2.02 2.04 2.22 2.28 2.39 1996 2.92 2.54 2.14 2.17 2.25 2.23 2.34 1997 2.98 2.56 2.28 2.10 2.34 2.26 2.26 1998 2.88 2.55 2.25 2.18 2.24 2.44 2.35 1999 2.59 2.56 2.22 2.17 2.21 2.38 2.21 2000 2.61 2.44 2.25 2.18 2.31 2.34 2.33 2001 2.67 2.54 2.21 2.24 2.23 2.33 2.39 2002 2.65 2.56 2.27 2.27 2.21 2.46 2.44 2003 2.75 2.47 2.33 2.31 2.22 2.30 2.29 2004 2.62 2.41 2.07 2.23 2.20 2.23 2.25 2005 2.68 2.44 2.19 2.20 2.17 2.19 2.29 2006 2.56 2.37 2.21 2.20 2.20 2.17 2.23 Household Expenditures for Telephone Service Expenditures on Telephone Service as a Percentage of Total Household Expenditures Table 2.4 Average Annual Household Expenditures by Age of the Head of the Household By Age of the Head of the Household 1234Over 4 1980 1981 1982 1983 1984 $12,994 $21,515 $26,653 $28,403 1985 13,954 23,442 28,317 31,408 1986 13,733 24,675 28,050 32,232 1987 14,693 24,761 28,549 32,753 1988 15,671 26,350 30,446 34,455 $32,706 1989 16,814 28,622 32,643 35,803 35,871 1990 17,128 28,851 33,688 37,493 36,279 1991 17,569 30,648 34,389 38,806 38,269 1992 17,797 30,773 34,982 40,658 38,019 1993 17,999 31,603 35,416 42,397 39,981 1994 19,343 33,062 36,732 41,480 40,702 1995 19,389 33,100 37,838 42,819 41,561 1996 20,082 35,559 39,531 43,670 43,217 1997 20,923 36,617 40,926 45,225 43,929 1998 21,483 36,973 41,388 47,020 45,569 1999 22,404 38,895 42,885 49,119 47,581 2000 23,059 38,627 45,156 52,032 49,100 2001 23,507 40,359 45,508 54,395 53,805 2002 24,190 41,797 48,098 54,033 55,501 2003 23,657 43,693 47,406 55,201 52,565 2004 25,423 45,855 51,503 57,866 55,468 2005 26,773 48,492 55,096 62,215 62,618 2006 29,374 50,652 56,382 63,897 64,654 1980 1981 1982 1983 1984 $311 $420 $494 $515 1985 330 458 501 548 1986 347 470 539 563 1987 367 489 587 590 1988 409 527 601 626 $681 1989 423 564 633 650 739 1990 440 582 681 681 769 1991 449 617 693 722 808 1992 470 616 700 722 821 1993 472 656 740 803 854 1994 502 699 774 817 879 1995 506 714 815 839 894 1996 544 777 921 904 972 1997 583 789 954 995 1,016 1998 581 839 990 991 1,022 1999 592 847 994 1,050 1,094 2000 607 865 1,031 1,108 1,136 2001 620 905 1,091 1,166 1,194 2002 624 955 1,160 1,219 1,262 2003 623 965 1,161 1,227 1,229 2004 634 997 1,207 1,270 1,293 2005 664 1,054 1,275 1,340 1,412 2006 684 1,081 1,333 1,439 1,459 1980 1981 1982 1983 1984 2.39% 1.95% 1.85% 1.81% 1985 2.36 1.95 1.77 1.74 1986 2.53 1.90 1.92 1.75 1987 2.50 1.97 2.06 1.80 1988 2.61 2.00 1.97 1.82 2.08% 1989 2.52 1.97 1.94 1.82 2.06 1990 2.57 2.02 2.02 1.82 2.12 1991 2.56 2.01 2.02 1.86 2.11 1992 2.64 2.00 2.00 1.78 2.16 1993 2.62 2.08 2.09 1.89 2.14 1994 2.60 2.11 2.11 1.97 2.16 1995 2.61 2.16 2.15 1.96 2.15 1996 2.71 2.19 2.33 2.07 2.25 1997 2.79 2.15 2.33 2.20 2.31 1998 2.70 2.27 2.39 2.11 2.24 1999 2.64 2.18 2.32 2.14 2.30 2000 2.63 2.24 2.28 2.13 2.31 2001 2.64 2.24 2.40 2.14 2.22 2002 2.58 2.28 2.41 2.26 2.27 2003 2.63 2.21 2.45 2.22 2.34 2004 2.49 2.17 2.34 2.19 2.33 2005 2.48 2.17 2.31 2.15 2.25 2006 2.33 2.13 2.36 2.25 2.26 Total Household Expenditures Household Expenditures for Telephone Service Expenditures on Telephone Service as a Percentage of Total Household Expenditures Table 2.5 Average Annual Household Expenditures by Size of the Household By Size of the Household 1995 $51 $7 $51 1996 51 9 60 1997 57 11 68 1998 56 14 70 1999 55 72 2000 53 23 76 2001 2002 2003 2004 2005 2006 2007 17 * Excludes households in Alaska and Hawaii. 83 45 48 35 Average Monthly Household Telecommunications Expenditures by Type of Provider* 29 Table 2.6 Wireline Carriers Wireless Carriers Total Expenditures 51 80 47 41 88 Note: These data are average monthly expenditures based on sample data for those households with wireline telephone service. These data do not reflect average monthly bills . For example, the average household in the sample spent $41 per month for wireless service in 2003. This average was calculated by simply dividing the total wireless expenditures of households in the sample by the total number of households in the sample. Of course, a number of households in the sample did not take wireless service in 2003 and therefore paid nothing. The average monthly bill for wireless service for 2003 - averaged over only those households that received a bill - was therefore much higher, about $62. In addition, these data are only representative of telecommunications revenues from servicing residential end-users, and do not reflect any revenues received from servicing business customers or other carriers . Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor ™, Bill Harvesting®. 47 92 44 53 97 45 68 113 44 58 102 Table 2.7 2006 Use of Broadcasting and Telecommunications Commodities by Industry NAICS I-O Industry Group Total Industry Output (Millions $) Purchases of Broadcasting and Telecommunications (Millions $) Broadcasting and Telecommunications Purchases of Percent of Industry Output (%) Broadcasting and Telecommunications Purchases by Industry as a Percent of Total Broadcasting and Telecommunications 111CA Farms 254,821.7 954.3 0.37 0.15 113FF Forestry, fishing, and related activities 64,223.0 17.5 0.03 0.00 211 Oil and gas extraction 251,761.5 80.4 0.03 0.01 212 Mining, except oil and gas 72,573.0 42.5 0.06 0.01 213 Support activities for mining 113,008.4 384.3 0.34 0.06 22 Utilities 399,740.9 70.8 0.02 0.01 23 Construction 1,392,907.0 10,604.8 0.76 1.66 311FT Food and beverage and tobacco products 680,830.5 2,326.0 0.34 0.36 313TT Textile mills and textile product mills 69,283.9 175.4 0.25 0.03 315AL Apparel and leather and allied products 31,558.3 55.9 0.18 0.01 321 Wood products 109,301.0 239.0 0.22 0.04 322 Paper products 166,264.8 329.1 0.20 0.05 323 Printing and related support activities 97,788.0 538.1 0.55 0.08 324 Petroleum and coal products 525,795.7 198.9 0.04 0.03 325 Chemical products 625,910.8 1,284.3 0.21 0.20 326 Plastics and rubber products 206,629.9 608.3 0.29 0.09 327 Nonmetallic mineral products 124,838.5 406.1 0.33 0.06 331 Primary metals 232,681.3 226.4 0.10 0.04 332 Fabricated metal products 310,886.2 1,151.0 0.37 0.18 333 Machinery 311,667.9 2,821.6 0.91 0.44 334 Computer and electronic products 378,161.0 2,621.1 0.69 0.41 335 Electrical equipment, appliances, and components 115,657.6 271.6 0.23 0.04 3361MV Motor vehicles, bodies and trailers, and parts 491,854.5 1,710.2 0.35 0.27 3364OT Other transportation equipment 197,611.2 425.5 0.22 0.07 337 Furniture and related products 83,416.1 370.0 0.44 0.06 339 Miscellaneous manufacturing 151,730.9 1,019.0 0.67 0.16 42 Wholesale trade 1,147,749.6 13,361.5 1.16 2.09 44RT Retail trade 1,249,614.1 12,236.5 0.98 1.91 481 Air transportation 145,510.7 1,360.6 0.94 0.21 482 Rail transportation 58,503.7 33.2 0.06 0.01 483 Water transportation 37,678.6 48.0 0.13 0.01 484 Truck transportation 267,258.9 3,419.3 1.28 0.53 485 Transit and ground passenger transportation 30,523.5 183.4 0.60 0.03 486 Pipeline transportation 35,002.2 162.7 0.46 0.03 487OS Other transportation and support activities 131,473.1 2,097.8 1.60 0.33 493 Warehousing and storage 51,601.3 363.8 0.71 0.06 511 Publishing industries (includes software) 266,143.2 5,122.4 1.92 0.80 512 Motion picture and sound recording industries 93,918.1 846.0 0.90 0.13 513 Broadcasting and telecommunications 714,742.7 159,944.0 22.38 24.97 514 Information and data processing services 157,148.0 10,148.6 6.46 1.58 521CI Federal Reserve banks, credit intermediation, and related activities 718,853.5 2,631.4 0.37 0.41 523 Securities, commodity contracts, and investments 420,955.7 2,511.6 0.60 0.39 524 Insurance carriers and related activities 622,099.8 7,863.7 1.26 1.23 525 Funds, trusts, and other financial vehicles 111,358.9 85.4 0.08 0.01 531 Real estate 2,155,769.3 12,445.6 0.58 1.94 532RL Rental and leasing services and lessors of intangible assets 316,039.7 4,458.7 1.41 0.70 5411 Legal services 264,683.3 4,932.6 1.86 0.77 5412OP Miscellaneous professional, scientific and technical services 1,014,144.6 22,576.5 2.23 3.52 5415 Computer systems design and related services 277,992.6 6,761.6 2.43 1.06 55 Management of companies and enterprises 389,531.5 14,824.6 3.81 2.31 561 Administrative and support services 570,480.6 11,109.6 1.95 1.73 562 Waste management and remediation services 70,882.2 770.7 1.09 0.12 61 Educational services 186,024.7 2,525.6 1.36 0.39 621 Ambulatory health care services 693,312.1 10,454.5 1.51 1.63 622HO Hospitals and nursing and residential care facilities 641,480.4 12,411.5 1.93 1.94 624 Social assistance 129,431.2 1,924.6 1.49 0.30 711AS Performing arts, spectator sports, museums, and related activities 85,475.0 778.1 0.91 0.12 713 Amusements, gambling, and recreation industries 120,540.4 1,359.6 1.13 0.21 721 Accommodation 123,704.9 2,319.7 1.88 0.36 722 Food services and drinking places 571,785.1 8,569.6 1.50 1.34 81 Other services, except government 709,867.8 10,164.1 1.43 1.59 GFE Federal government enterprises 95,862.0 550.9 0.57 0.09 GFG Federal general government 820,889.0 10,702.5 1.30 1.67 GSLE State and local government enterprises 215,337.4 1,649.8 0.77 0.26 GSLG State and local general government 1,594,339.4 22,877.8 1.43 3.57 F010 Personal consumption expenditures 9,224,507.6 209,153.1 2.27 F020 Private fixed investment 2,162,503.3 8,615.7 0.40 F030 Change in private inventories 46,652.4 0.0 0.00 F040 Exports of goods and services 1,322,440.5 7,311.4 0.55 F050 Imports of goods and services -2,084,456.4 0.0 0.00 F06C National defense: Consumption expenditures 544,782.0 0.0 0.00 F06I National defense: Gross investment 79,524.0 0.0 0.00 F07C Nondefense: Consumption expenditures 268,020.0 0.0 0.00 F07I Nondefense: Gross investment 40,186.0 0.0 0.00 F08C State and local government consumption expenditures, education 601,937.0 0.0 0.00 F08I State and local government gross investment, education 87,796.0 0.0 0.00 F09C State and local government consumption expenditures, other 674,546.0 0.0 0.00 F09I State and local government gross investment, other 226,251.0 0.0 0.00 T007 Total Commodity Output 24,735,591.9 640,600.5 2.59 Percentage of Total Sales to Broadcasting and Telecommunications Industry (%) Sales to Broadcasting and Telecommunications Industry as Percent of Industry Output (%) 111CA Farms 244,502.9 16.3 0.01 0.00 113FF Forestry, fishing, and related activities 76,858.4 0.00 0.00 211 Oil and gas extraction 229,561.3 0.00 0.00 212 Mining, except oil and gas 72,480.1 1.8 0.00 0.00 213 Support activities for mining 113,602.2 0.00 0.00 22 Utilities 495,375.9 3,717.4 0.75 0.52 23 Construction 1,392,907.1 1,760.6 0.13 0.25 311FT Food and beverage and tobacco products 677,762.9 0.00 0.00 313TT Textile mills and textile product mills 67,866.5 23.9 0.04 0.00 315AL Apparel and leather and allied products 31,978.5 54.4 0.17 0.01 321 Wood products 109,491.0 1,616.8 1.48 0.23 322 Paper products 165,136.3 1,273.9 0.77 0.18 323 Printing and related support activities 73,302.7 2,712.8 3.70 0.38 324 Petroleum and coal products 532,119.0 1,211.7 0.23 0.17 325 Chemical products 650,575.4 1,345.4 0.21 0.19 326 Plastics and rubber products 210,360.7 2,854.4 1.36 0.40 327 Nonmetallic mineral products 124,701.8 1,703.3 1.37 0.24 331 Primary metals 237,008.3 1,703.3 0.72 0.24 332 Fabricated metal products 308,427.2 7,160.5 2.32 1.00 333 Machinery 314,335.0 261.7 0.08 0.04 334 Computer and electronic products 371,643.3 10,874.6 2.93 1.52 335 Electrical equipment, appliances, and components 115,244.7 5,206.5 4.52 0.73 3361MV Motor vehicles, bodies and trailers, and parts 486,180.7 130.0 0.03 0.02 3364OT Other transportation equipment 200,566.9 2.0 0.00 0.00 337 Furniture and related products 81,772.9 155.2 0.19 0.02 339 Miscellaneous manufacturing 147,248.4 322.0 0.22 0.05 42 Wholesale trade 1,147,837.1 5,184.8 0.45 0.73 44RT Retail trade 1,255,016.4 276.8 0.02 0.04 481 Air transportation 152,622.2 831.5 0.54 0.12 482 Rail transportation 60,104.3 100.3 0.17 0.01 483 Water transportation 38,143.2 14.6 0.04 0.00 484 Truck transportation 270,590.0 776.4 0.29 0.11 485 Transit and ground passenger transportation 42,111.5 1,188.3 2.82 0.17 486 Pipeline transportation 35,002.2 3.5 0.01 0.00 487OS Other transportation and support activities 127,884.1 1,425.1 1.11 0.20 493 Warehousing and storage 51,718.6 174.8 0.34 0.02 511 Publishing industries (includes software) 193,029.4 327.3 0.17 0.05 512 Motion picture and sound recording industries 98,669.1 20,777.3 21.06 2.91 513 Broadcasting and telecommunications 640,600.5 152,216.4 23.76 21.30 514 Information and data processing services 167,986.3 2,479.7 1.48 0.35 521CI Federal Reserve banks, credit intermediation, and related 662,274.5 16,300.4 2.46 2.28 523 Securities, commodity contracts, and investments 432,491.9 1,118.4 0.26 0.16 524 Insurance carriers and related activities 632,146.1 7,717.1 1.22 1.08 525 Funds, trusts, and other financial vehicles 114,811.0 0.00 0.00 531 Real estate 2,176,532.1 8,187.2 0.38 1.15 532RL Rental and leasing services and lessors of intangible assets 352,897.6 11,280.9 3.20 1.58 5411 Legal services 264,840.4 2,621.0 0.99 0.37 5412OP Miscellaneous professional, scientific and technical services 1,181,193.8 62,088.5 5.26 8.69 5415 Computer systems design and related services 282,544.7 1,783.2 0.63 0.25 55 Management of companies and enterprises 389,531.5 2,336.2 0.60 0.33 561 Administrative and support services 577,404.4 5,687.6 0.99 0.80 562 Waste management and remediation services 77,927.6 227.0 0.29 0.03 61 Educational services 267,736.9 1,312.0 0.49 0.18 621 Ambulatory health care services 721,071.5 0.00 0.00 622HO Hospitals and nursing and residential care facilities 769,618.7 0.00 0.00 624 Social assistance 131,852.9 0.00 0.00 711AS Performing arts, spectator sports, museums, and related 83,199.9 8,403.0 10.10 1.18 713 Amusements, gambling, and recreation industries 161,504.5 116.9 0.07 0.02 721 Accommodation 130,708.6 606.0 0.46 0.08 722 Food services and drinking places 588,732.3 1,012.0 0.17 0.14 81 Other services, except government 711,745.0 14,184.7 1.99 1.98 GFE Federal government enterprises 76,437.5 1,668.5 2.18 0.23 GFG Federal general government 813,280.4 0.00 0.00 GSLE State and local government enterprises 63,967.6 384.6 0.60 0.05 GSLG State and local general government 1,278,531.0 0.00 0.00 Total Sales 24,735,592.2 714,742.7 2.89 100.00 Value Added 13,205,405.9 322,022.1 2.44 45.05 Table 2.8 2006 Use of Commodities by the Broadcasting and Telecommunications Industry NAICS I-O Industry Group Total Commodity Output (Millions $) Sales to Broadcasting and Teleommunications Industry (Millions $) III. Price Indices The BLS calculates telephone service price indices as part of two major programs. The Consumer Price Index (CPI) program publishes indices based on the amount of money that residential customers in urban areas pay for telephone service. The Producer Price Index (PPI) program publishes indices based on the amount of money that companies receive for providing telephone service. Unlike the CPI, the PPI indices cover business as well as residential telephone service. A. Consumer Price Indices The Consumer Price Index is the nation's most widely recognized measure of retail price changes. It is published monthly by the BLS, and measures the prices all urban consumers pay for most goods and services. BLS defines urban areas as Metropolitan Statistical Areas (MSAs) and small cities with populations greater than 10,000. According to BLS, over 79 percent of the U.S. population lives in urban areas. The BLS has published an index for telephone services since 1935. In 1978 it began publishing an index for local telephone service, interstate toll service, and intrastate toll service. In 1998 it added an index for cellular telephone services. At that time, the BLS also revised the telephone services index to include information from the cellular index and created an aggregate index by combining the interstate and intrastate toll service indices into an index for long distance services. Telephone service price changes are also included in the CPI index for all goods and services, as well as in other broad indices. According to the BLS, as of the end of December 2006, telephone prices accounted for roughly 2.2% of the CPI for all goods and services. 1 Table 3.1 shows the annual changes in the CPI indices since 1980. In addition to showing the nominal changes in telephone prices, the table shows the changes in telephone prices after adjusting for the impact of inflation, as measured by the CPI for all goods and services. Chart 1 illustrates the changes in toll rates since the AT&T divestiture in 1984; since then, rates for both interstate and intrastate toll calls have fallen. Chart 2 adjusts the price indices for interstate and intrastate toll service for the impacts of inflation. Relative to the prices of other goods and services, long distance rates have fallen substantially since the AT&T divestiture in 1984. Table 3.2 shows three monthly consumer price indices that were first published in 1998. A long distance service index has been created using the existing information collected for the interstate and intrastate toll indices. An index for cellular telephone service has been created and the previous “telephone services” index has been replaced with a new measure that includes the cellular price index. Since the previous index for telephone services did not include cellular services, the two series are not strictly comparable. Users should exercise caution because current price trends in the cellular market deviate significantly from those in the wireline telephony market. 1 See http://www.bls.gov/cpi/cpiri2006.pdf. III-1 III-2 B. Producer Price Indices The PPI is a statistical series established by the BLS to measure changes in the prices charged by producers. This index, formerly known as the Wholesale Price Index, was first published in 1902. The BLS began publishing indices for telecommunications products in 1972. These indices were wholly redesigned in mid-1995. Consequently, the current indices are not comparable to indices prior to 1995. In addition to 39 current indices of telecommunications products, the BLS publishes overall indices by stage of processing -- finished goods, intermediate goods, and crude materials for further processing. With the release of data for January 2004, the Producer Price Index program changed its basis for industry classification from the 1987 Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS). Developed in cooperation with Canada and Mexico, NAICS represents a profound change for statistical programs focusing on emerging economic activities. The system was developed using a production-oriented conceptual framework, grouping establishments into industries based on the activity in which they are primarily engaged. While many NAICS industries directly compare with SIC industries, a number of SIC industries were split or combined to form a new NAICS industry. The PPI treats the SIC-to-NAIC comparison as continuous if 80 percent or more of the weight of the SIC-based index comprises at least 80 percent of the weight of the NAICS-based index. All index series that have passed this test are published under the NAICS structure using the index base date and price index history established by the SIC-based index. Documentation of the NAICS to SIC concordance for all subsectors, industry groups, and products may be found at http:// www.bls.gov/ppi/ppinaics.htm. 2 Since the PPI indexes the prices received by producers, it includes the prices paid by businesses as well as consumers. The PPI does not include taxes or other government surcharges. Additionally, it is subject to substantial fluctuations from month to month and each index is revised four months following its release. Consequently, analysts should use caution when using the PPI to measure short-run trends in telecommunications prices. It is suggested that users consider constructing a three to four month moving average of the series to improve the analysis of trends. Table 3.3 presents the monthly PPI indices for the period since January 2000. Certain Producer Price Index categories were discontinued in 1995. These PPIs may be found at http://www.bls.gov. C. Additional Sources of Information on Price Indices The BLS maintains current and complete access to all of the price indices at stats.bls.gov on the Internet. Visitors can find documentation on the construction of the indices there as well. 2 Several telecommunications PPIs published by the BLS under the SIC classification system are no longer published after the conversion to NAICS. These include “Other Local Service” (SIC pcu4813#114), “Other Local Service except Directory Assistance” (SIC pcu4813#11409), “LEC Intrastate Private Line Service” (SIC pcu4813#311), “Directory Advertising” (SIC pcu4813#91), and “Other Telephone Services” (SIC pcu4813#99). In addition, “Directory Assistance” (SIC pcu4813#11401) is now classified as “Other Local Service” (NAICS 517110114) and “Telephone Communications except Radiotelephone” is now referred to as “Wired Telecommunications Carriers”. Table 3.1 Changes in the Consumer Price Indices Since 1980 ( Percent change from December of the previous year through December of the year shown ) Telephone Services All Goods Inflation Inflation Inflation Inflation Inflation and Services Adjusted Adjusted Adjusted Adjusted Adjusted 1980 12.5% 4.6% -7.1% 7.0% -4.9% 3.4% -8.1% -0.6% -11.6% 1981 8.9% 11.7% 2.5% 12.6% 3.3% 14.6% 5.2% 6.2% -2.5% 1982 3.8% 7.2% 3.3% 10.8% 6.7% 2.6% -1.2% 4.2% 0.3% 1983 3.8% 3.6% -0.2% 3.1% -0.6% 1.5% -2.2% 7.4% 3.4% 1984 3.9% 9.2% 5.1% 17.2% 12.7% -4.3% -8.0% 3.6% -0.3% 1985 3.8% 4.7% 0.8% 8.9% 5.0% -3.7% -7.2% 0.6% -3.1% 1986 1.1% 2.7% 1.6% 7.1% 5.9% -9.4% -10.4% 0.3% -0.8% 1987 4.4% -1.3% -5.5% 3.3% -1.0% -12.4% -16.1% -3.0% -7.1% 1988 4.4% 1.3% -3.0% 4.5% 0.1% -4.2% -8.2% -4.2% -8.3% 1989 4.6% -0.3% -4.7% 0.6% -3.9% -1.3% -5.7% -2.6% -6.9% 1990 6.1% -0.4% -6.2% 1.0% -4.8% -3.7% -9.3% -2.2% -7.8% 1991 3.1% 3.5% 0.4% 5.1% 2.0% 1.3% -1.7% -1.5% -4.4% 1992 2.9% -0.3% -3.1% 0.5% -2.4% -1.3% -4.1% -2.4% -5.1% 1993 2.7% 1.8% -0.9% 1.0% -1.7% 6.5% 3.7% 0.2% -2.5% 1994 2.7% 0.7% -2.0% -0.3% -2.9% 5.4% 2.7% -1.0% -3.6% 1995 2.5% 1.2% -1.3% 2.6% 0.0% 0.1% -2.3% -3.8% -6.2% 1996 3.3% 2.1% -1.2% 0.9% -2.4% 3.7% 0.4% 6.1% 2.7% 1997 1.7% 0.2% -1.4% 1.0% -0.6% -4.3% -5.9% 2.8% 1.1% 1998 1.6% 0.3% -1.9% 1.3% -0.3% -0.8% -2.4% 1.5% -0.1% 1999 2.7% 0.4% -2.2% 2.9% 0.2% -0.7% -3.3% -1.6% -4.1% -11.6% -13.9% 2000 3.4% -2.3% -5.5% 5.6% 2.1% -11.2% -14.1% -6.0% -9.1% -12.3% -15.2% 2001 1.6% 1.3% -0.2% 4.5% 2.9% -2.0% -3.3% -1.7% -3.2% -5.5% -6.9% 2002 2.4% 0.2% -2.1% 5.3% 2.9% -5.9% -8.2% -6.1% -3.2% -0.3% -2.0% 2003 1.8% -2.7% -4.4% 2.6% 0.8% -10.8% -12.4% -9.3% -10.9% -1.3% -3.1% 2004 3.3% -2.5% -5.6% 1.1% -2.1% -8.7% -11.7% -6.6% -9.6% -1.4% -4.5% 2005 3.4% 0.4% -2.9% 3.3% -0.1% -3.1% -6.3% 0.4% -2.9% -1.5% -4.8% 2006 2.5% 1.7% -0.8% 2.2% -0.4% 5.0% 2.4% 3.3% 0.7% 0.0% -2.5% 2007 4.1% 2.1% -1.9% 4.1% 0.0% 2.4% -1.6% 5.9% 1.7% -0.9% -4.8% Land-line Telephone Services, Local Charges Land-line Interstate Toll Calls Land-line Intrastate Toll Calls Wireless Telephone Services Chart 1 Consumer Price Indices for Toll Service Since 1984 0 50 100 150 200 250 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 I n d e x L e ve l All Goods and Services Interstate Toll Service Intrastate Toll Service Chart 2 Consumer Price Indices for Toll Service Since 1984 (Adjusted for Inflation) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 I n d e x L e ve l Interstate Toll Service Intrastate Toll Service All Goods and Services Telephone Services Land-line Telephone Services, Local Charges Land-line Telephone Services, Long- Distance Charges Land-line Interstate Toll Calls Land-line Intrastate Toll Calls Wireless Telephone Services CUUR0000SA0 CUUR0000SEED CUUR0000SEED01 CUUR0000SEED02 CUUR0000SS27051 CUUR0000SS27061 CUUR0000SEED03 2001 January 108.6 98.8 110.5 89.9 88.0 94.2 68.9 February 109.0 98.7 110.7 89.5 87.6 93.7 68.9 March 109.2 99.4 110.9 90.7 89.0 94.5 68.7 April 109.7 99.0 111.9 89.1 87.2 93.1 68.8 May 110.2 98.7 112.1 88.2 86.2 92.6 68.5 June 110.4 99.0 112.3 88.7 86.7 93.0 68.1 July 110.0 99.6 113.2 88.9 86.8 93.0 68.6 August 110.0 99.6 113.9 88.5 86.4 92.7 68.1 September 110.5 99.2 114.1 87.6 85.5 92.0 67.2 October 110.2 99.9 114.6 88.5 86.4 92.9 67.1 November 110.0 99.6 114.8 87.6 85.5 92.2 67.5 December 109.5 99.7 114.9 87.9 85.8 92.3 67.2 2002 January 109.8 100.3 115.7 88.2 86.2 92.6 67.5 February 110.2 100.3 116.1 87.9 85.8 92.6 67.5 March 110.8 99.1 114.1 87.0 85.0 91.6 67.5 April 111.5 98.2 114.0 85.1 82.7 90.1 67.6 May 111.5 99.3 116.8 85.2 82.6 90.4 66.7 June 111.5 99.2 116.9 85.0 82.4 90.1 66.6 July 111.7 99.5 118.7 84.0 81.3 89.1 67.0 August 112.0 100.6 120.2 84.7 82.6 89.1 67.8 September 112.2 100.1 120.4 83.7 81.4 88.2 67.5 October 112.4 99.9 120.6 83.0 80.7 87.5 67.9 November 112.4 99.8 120.8 82.7 80.7 87.0 67.5 December 112.2 99.9 121.0 82.6 80.7 86.7 67.4 2003 January 112.6 100.4 121.3 83.4 81.9 87.0 67.6 February 113.5 100.5 121.2 83.5 82.2 86.9 67.7 March 114.2 99.7 121.7 81.5 79.8 85.1 67.6 April 113.9 98.7 121.9 79.2 77.4 83.1 67.5 May 113.7 98.1 122.0 77.9 76.0 81.8 67.5 June 113.8 97.5 122.2 76.7 74.6 80.8 66.3 July 114.0 98.1 123.1 77.2 75.6 80.8 66.2 August 114.4 97.8 123.7 76.0 74.0 79.7 66.1 September 114.8 97.4 123.8 75.2 73.3 78.9 66.1 October 114.6 97.1 124.0 74.3 72.1 78.7 66.1 November 114.3 97.2 124.2 74.1 71.8 78.3 66.7 December 114.2 97.2 124.1 74.3 72.0 78.6 66.5 2004 January 114.8 97.0 124.4 73.9 71.6 78.0 66.3 February 115.4 97.1 124.2 73.9 71.6 77.8 66.6 March 116.2 96.7 124.2 73.1 70.6 77.2 66.5 April 116.6 96.5 123.9 72.8 70.1 77.2 66.4 May 117.2 95.9 124.2 71.3 68.8 75.5 66.5 June 117.6 95.8 124.2 71.2 68.4 75.4 66.4 July 117.4 95.6 124.7 70.1 67.6 74.2 66.5 August 117.5 95.0 124.7 68.7 66.0 72.9 66.5 September 117.7 95.3 124.9 69.6 67.0 73.9 66.3 October 118.4 94.6 125.2 68.3 65.7 72.6 65.5 November 118.4 94.9 125.1 69.3 66.4 74.0 65.5 December 118.0 94.8 125.5 68.6 65.7 73.4 65.6 2005 January 118.2 94.8 125.9 68.5 65.7 72.9 65.3 February 118.9 95.1 126.9 68.5 65.3 73.8 65.4 March 119.8 95.0 127.4 67.9 64.9 72.5 65.2 April 120.6 95.3 127.8 68.4 64.9 73.4 65.2 May 120.5 94.8 127.3 67.5 64.0 72.6 65.2 June 120.6 94.6 127.5 67.1 63.7 72.1 65.2 July 121.1 94.4 128.0 66.7 63.3 72.3 64.7 August 121.8 94.1 128.6 65.5 62.0 71.2 64.7 September 123.2 95.1 128.6 67.7 64.5 73.4 64.8 October 123.5 94.6 128.8 66.5 63.2 72.1 64.8 November 122.5 95.2 129.1 67.8 64.1 74.0 64.6 December 122.0 95.2 129.5 67.4 63.7 73.7 64.6 2006 January 122.9 95.2 129.1 67.7 64.1 73.8 64.6 February 123.2 95.2 129.2 67.7 64.2 73.8 64.6 March 123.9 95.0 129.4 67.2 63.8 72.9 64.6 April 124.9 95.4 129.5 68.4 64.9 74.4 64.3 May 125.5 95.2 129.8 67.7 64.1 73.8 64.3 June 125.8 95.4 130.0 67.9 64.5 73.9 64.4 July 126.2 95.6 130.7 67.6 64.1 73.5 64.7 August 126.4 95.9 131.2 68.2 64.8 73.9 64.6 September 125.8 96.1 131.8 68.3 65.0 74.0 64.7 October 125.1 96.8 131.9 69.8 67.0 75.5 64.6 November 124.9 96.5 132.0 69.3 66.8 75.3 64.6 December 125.1 96.8 132.4 69.6 66.9 76.1 64.6 2007 January 125.5 96.9 132.5 69.8 67.2 75.9 64.6 February 126.2 97.1 133.3 69.9 67.2 75.9 64.6 March 127.3 97.5 133.9 70.5 67.2 76.7 64.6 April 128.1 97.6 134.6 70.3 67.5 76.6 64.6 May 128.9 98.5 135.0 72.2 68.6 80.6 64.5 June 129.2 98.5 135.3 72.2 68.5 80.8 64.4 July 129.1 98.6 136.1 72.0 68.5 80.8 64.3 August 128.9 98.8 136.6 72.2 68.7 81.1 64.4 September 129.3 98.9 137.0 72.2 68.7 81.0 64.4 October 129.5 99.0 137.6 72.1 68.7 80.9 64.4 November 130.3 98.8 137.5 72.0 68.7 80.7 64.0 December 130.2 98.8 137.8 71.9 68.5 80.6 64.0 Note: Figures for local telephone service, interstate toll service, and intrastate toll service are converted from 1982-1984 base index series reported by the Bureau of Labor Statistics. Additional historical data on these series can be found in prior editions of the Industry Analysis and Technology Division, Wireline Competition Bureau, Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service . Table 3.2 Monthly Consumer Price Indices (December 1997 = 100) BLS Series ID Wired Telecommunications Carriers Local Service, except Private Lines Residence Local Service Business Local Service Coin Local Service Other Local Service NAICS Series ID 517110114 2000 January 94.8 100.6 100.3 100.6 101.8 104.0 February 94.1 100.6 100.3 100.6 101.8 104.0 March 94.8 100.7 100.3 100.9 101.8 104.0 April 94.1 100.7 100.5 100.7 101.5 104.0 May 93.4 100.7 100.6 100.6 101.9 104.0 June 94.1 100.8 100.8 100.5 102.3 104.0 July 94.0 101.3 101.7 100.6 102.7 104.0 August 94.0 101.3 101.7 100.6 103.2 104.0 September 93.8 101.5 101.9 100.6 103.6 104.2 October 93.4 101.4 101.9 100.5 103.6 104.2 November 93.0 101.4 101.9 100.5 103.6 104.2 December 93.1 101.4 101.9 100.5 103.6 104.2 2001 January 92.2 101.4 101.9 100.5 103.6 104.5 February 92.0 101.5 101.9 100.5 103.6 104.5 March 92.0 101.5 101.9 100.5 103.6 104.5 April 91.9 101.9 102.5 100.7 103.5 104.5 May 91.8 101.9 102.6 100.7 103.4 104.5 June 91.4 102.0 102.9 100.7 103.6 104.5 July 91.5 102.7 104.4 100.7 103.7 104.8 August 91.8 102.8 104.4 100.7 103.9 104.8 September 92.0 102.9 104.5 100.7 104.1 104.8 October 90.1 102.9 104.5 100.8 104.3 104.8 November 90.1 102.9 104.5 100.8 104.3 104.8 December 89.2 102.9 104.5 100.8 104.3 104.8 2002 January 88.4 103.4 105.2 101.0 104.3 104.8 February 88.0 103.4 105.2 101.0 104.3 104.8 March 87.9 103.4 105.3 101.0 104.3 104.8 April 87.5 103.4 105.4 101.0 104.3 104.8 May 87.8 103.4 105.3 101.0 104.3 104.8 June 87.7 103.5 105.5 101.1 104.3 104.8 July 87.4 104.0 106.1 101.1 104.3 119.5 August 87.8 104.0 106.1 101.2 104.3 119.5 September 87.7 104.0 106.2 101.1 103.9 119.9 October 85.5 104.0 106.2 101.1 103.9 119.9 November 86.4 103.9 106.2 101.1 103.9 119.9 December 86.0 104.0 106.2 101.1 103.9 119.9 2003 January 85.7 103.9 106.2 101.1 103.9 119.9 February 85.8 103.9 106.2 101.1 103.9 119.9 March 85.8 104.0 106.2 101.1 103.9 119.9 April 85.5 104.5 106.8 101.5 103.9 119.9 May 85.9 104.8 107.4 101.6 103.9 119.9 June 85.9 105.0 107.9 101.6 103.9 119.9 July 86.0 105.2 108.2 101.6 103.9 120.3 August 86.1 105.2 108.2 101.6 103.9 120.3 September 85.7 105.2 108.2 101.6 103.9 120.3 October 85.2 105.2 108.3 101.6 103.9 120.3 November 84.7 105.2 108.3 101.6 103.9 120.3 December 84.1 105.2 108.3 101.6 103.9 120.3 2004 January 84.5 105.4 108.6 101.6 103.9 120.3 February 84.0 105.4 108.6 101.6 103.9 120.3 March 84.1 105.4 108.6 101.6 103.9 120.3 April 83.9 105.4 108.6 101.6 103.9 120.3 May 83.7 105.4 108.6 101.6 103.9 120.3 June 83.8 105.4 108.6 101.6 103.9 120.3 July 83.6 105.4 108.6 101.7 103.9 120.3 August 83.7 105.4 108.6 101.7 103.9 120.3 September 83.5 105.5 108.7 101.7 103.9 120.5 October 83.3 105.5 108.8 101.7 103.9 121.0 November 83.2 105.6 108.9 101.7 103.9 121.0 December 83.0 105.6 109.0 101.7 103.9 121.0 2005 January 83.3 106.0 109.6 101.9 103.9 121.0 February 82.8 106.0 109.6 102.0 103.7 121.0 March 83.0 106.0 109.6 102.0 103.5 121.0 April 83.2 106.0 109.6 102.1 103.3 121.0 May 83.3 106.0 109.6 102.1 103.3 121.0 June 83.5 106.0 109.6 102.1 103.3 121.0 July 83.7 106.1 109.8 102.1 103.3 121.0 August 83.7 106.1 109.8 102.1 103.3 121.0 September 83.5 106.1 109.8 102.1 103.3 121.0 October 83.6 106.1 109.8 102.1 103.3 121.0 November 83.3 106.1 109.8 102.1 103.3 121.0 December 83.3 106.1 109.9 102.1 103.3 121.0 2006 January 83.0 106.3 110.2 102.2 103.3 121.0 February 83.0 106.5 110.7 102.2 103.3 121.0 March 83.4 106.6 110.8 102.2 103.3 121.0 April 83.2 106.6 110.8 102.3 103.3 122.8 May 83.5 107.2 111.8 102.3 103.3 122.8 June 83.8 107.3 111.8 102.5 103.3 122.8 July 84.1 107.3 111.9 102.5 103.3 122.8 August 84.5 107.5 112.2 102.5 103.3 122.8 September 84.8 107.5 112.2 102.5 103.3 122.8 October 85.4 107.5 112.2 102.5 103.3 122.8 November 84.9 107.9 112.7 102.8 103.3 122.8 December 85.6 108.0 112.8 103.0 103.3 122.8 2007 January 85.2 108.1 112.8 103.0 103.3 124.5 February 85.3 108.1 113.0 103.0 103.3 124.5 March 85.8 108.2 112.8 103.5 103.3 124.5 April 86.2 108.2 112.8 103.5 103.3 124.5 May 86.2 108.2 112.8 103.5 103.3 124.5 June 86.8 108.2 112.8 103.5 103.3 124.5 July 87.6 108.4 113.3 103.5 103.3 124.5 August 87.3 109.1 114.5 103.4 103.3 123.5 September 87.8 109.1 114.5 103.5 103.3 123.5 October* 88.1 109.1 114.5 103.5 103.3 123.5 November* 87.3 109.3 114.8 103.4 103.3 123.5 December* 87.4 109.3 114.8 103.4 103.3 123.5 517110113517110 5171101 517110111 517110112 Table 3.3 Monthly Producer Price Indices (June 1995 = 100) * Subject to revision. Public Switched Toll Service Residence Switched Toll Service Intrastate Residence Switched Toll Service Interstate Residence Switched Toll Service International Residence Switched Toll Service Business Switched Toll Service Business Switched Access Toll Service NAICS Series ID 2000 January 89.7 96.5 94.8 107.4 67.5 81.6 95.4 February 88.4 94.1 96.2 100.1 65.9 81.6 92.9 March 89.7 96.2 95.0 105.9 68.2 82.1 95.3 April 88.3 94.6 94.4 102.8 67.0 80.8 93.4 May 87.0 92.9 93.6 99.3 65.7 80.0 93.2 June 88.3 95.1 94.4 104.1 67.0 80.3 94.0 July 87.8 94.3 93.8 102.1 68.0 80.0 94.6 August 87.7 94.2 93.8 102.2 67.2 80.0 94.5 September 87.3 94.8 93.9 104.7 64.5 78.4 92.6 October 86.6 93.2 93.5 101.7 61.6 78.8 93.1 November 85.6 92.6 93.5 101.7 58.4 77.3 91.5 December 85.9 93.0 93.7 101.8 60.2 77.5 91.1 2001 January 84.2 92.2 93.3 107.4 60.9 74.7 87.6 February 83.8 92.1 94.1 99.5 61.8 73.9 87.9 March 83.9 92.4 94.7 98.2 61.3 73.8 87.5 April 83.4 92.1 94.3 98.6 61.3 73.0 87.2 May 83.1 92.2 94.3 98.2 60.4 72.2 85.8 June 82.4 91.4 95.2 98.9 57.4 71.6 84.7 July 81.9 91.3 95.6 96.9 57.9 70.7 84.3 August 82.5 92.8 95.8 96.0 54.8 70.2 83.2 September 82.7 91.7 95.9 101.2 52.9 72.0 84.3 October 79.2 88.4 94.9 92.2 49.7 68.2 80.5 November 79.1 89.0 95.5 94.7 45.6 67.4 77.6 December 77.4 88.2 96.0 92.4 44.5 64.6 74.6 2002 January 75.7 86.7 95.4 89.1 43.9 62.7 72.7 February 75.0 85.2 95.8 85.4 42.4 62.8 73.3 March 74.6 84.5 95.6 84.8 40.2 62.8 73.6 April 73.8 83.9 95.3 82.9 41.2 61.9 73.4 May 74.5 83.5 95.3 82.1 40.6 63.7 73.7 June 74.2 83.3 95.1 81.3 41.6 63.3 74.3 July 73.3 83.1 94.7 80.9 42.1 61.5 72.1 August 74.1 84.1 96.9 81.5 42.3 62.0 72.4 September 73.8 83.0 96.9 78.8 41.4 62.8 72.8 October 69.7 77.1 96.8 63.6 39.4 60.7 71.1 November 71.4 80.9 96.4 74.9 38.3 60.2 69.8 December 70.7 80.9 95.7 75.4 38.5 58.6 69.1 2003 January 70.0 79.9 95.6 73.0 38.2 58.3 68.5 February 70.4 79.7 87.4 81.2 37.2 59.2 68.9 March 70.2 79.8 87.4 81.6 37.0 58.7 67.9 April 69.4 78.2 86.9 78.2 35.6 58.9 68.7 May 69.8 79.5 87.1 82.2 34.4 58.3 67.1 June 69.7 78.9 87.1 80.7 33.8 58.7 68.3 July 69.8 79.4 86.9 81.3 36.3 58.4 67.0 August 69.9 79.5 86.7 82.2 35.4 58.5 67.2 September 69.3 78.1 85.9 79.8 33.9 58.7 67.7 October 68.3 77.6 85.4 79.5 32.5 57.4 66.5 November 67.4 76.1 84.7 76.5 31.8 57.0 64.9 December 66.3 74.6 83.7 73.5 31.3 56.3 64.6 2004 January 66.7 75.4 83.1 76.6 30.8 56.4 64.7 February 65.9 74.1 82.6 73.1 31.4 56.1 64.3 March 66.1 74.7 82.2 76.4 29.1 55.8 63.9 April 65.8 74.4 82.1 75.2 29.9 55.5 63.4 May 65.4 74.3 82.0 75.3 29.1 54.9 62.5 June 65.5 74.3 82.1 75.7 28.5 55.0 62.9 July 65.2 74.4 82.3 75.1 29.5 54.2 62.4 August 65.3 75.0 82.5 76.8 29.6 53.9 62.0 September 64.9 74.3 81.9 75.7 28.7 53.8 61.8 October 64.5 74.5 82.2 75.9 28.6 52.8 60.4 November 64.2 73.7 81.9 75.1 26.7 52.9 61.1 December 63.7 73.2 81.3 74.0 27.0 52.6 60.2 2005 January 64.0 73.7 81.5 74.8 25.9 52.5 59.9 February 62.9 72.2 80.4 71.9 25.8 51.9 59.2 March 63.3 73.6 81.0 74.9 26.2 51.2 58.9 April 63.7 73.8 81.2 74.7 27.0 51.8 59.3 May 63.9 74.7 81.2 77.7 26.3 51.0 58.0 June 64.2 75.0 81.8 77.8 26.7 51.4 58.5 July 64.6 76.2 82.2 79.8 28.4 50.9 58.0 August 64.5 76.3 82.0 80.2 28.3 50.7 57.9 September 64.2 75.3 81.9 77.4 28.3 51.1 57.9 October 64.2 75.7 82.1 79.0 27.5 50.7 57.6 November 63.8 75.3 81.6 78.8 26.9 50.1 58.3 December 63.7 75.7 81.4 79.6 27.6 49.6 57.3 2006 January 63.1 74.9 81.6 76.9 28.0 49.3 57.0 February 62.7 74.5 80.7 77.5 26.6 48.8 56.5 March 63.4 75.9 80.8 81.3 26.6 48.7 56.3 April 63.1 75.1 81.5 78.1 27.0 49.0 56.8 May 63.1 76.8 79.2 85.2 26.6 47.3 54.2 June 63.7 77.1 81.6 83.3 27.7 48.0 55.4 July 64.3 78.3 81.8 85.5 29.4 47.9 55.3 August 64.8 79.1 82.1 87.7 28.5 48.0 56.0 September 65.5 80.0 82.3 90.5 28.1 48.5 56.2 October 66.6 82.0 82.3 94.9 28.3 48.6 55.6 November 65.4 80.6 82.3 92.1 27.7 47.6 55.6 December 66.6 82.7 82.4 96.0 29.2 47.7 55.4 2007 January 65.2 79.1 81.8 86.8 32.9 48.2 55.9 February 65.7 81.0 83.8 88.0 34.9 47.4 55.1 March 66.8 83.0 84.2 91.4 34.9 47.9 54.7 April 67.7 85.9 85.6 94.7 36.5 47.3 54.4 May 67.8 86.1 86.8 95.1 36.1 47.2 53.9 June 69.2 88.9 87.7 99.1 37.1 47.4 54.4 July 71.3 93.7 88.6 106.1 38.6 47.3 55.3 August 69.7 91.3 89.4 101.3 38.9 46.4 54.2 September 71.2 94.1 89.5 106.1 39.1 46.8 53.5 October* 72.0 94.7 90.7 107.8 38.0 47.8 54.9 November* 69.7 93.0 89.2 106.8 36.0 44.9 51.1 December* 69.9 92.5 90.0 106.4 35.0 45.8 50.8 517110212 517110213 51711022 5171102215171102 51711021 517110211 Table 3.3 Monthly Producer Price Indices - Continued (June 1995 = 100) * Subject to revision. Outbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Outbound Interstate Business Switched Access Toll Service, Outbound International Business Switched Access Toll Service, Outbound Inbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Inbound Interstate Business Switched Access Toll Service, Inbound International Business Switched Access Toll Service, Inbound NAICS Series ID 2000 January 102.1 102.4 109.9 85.2 83.8 70.7 76.6 76.2 February 98.5 101.5 104.8 76.9 83.2 70.2 75.7 75.0 March 101.4 103.0 113.6 69.3 84.6 76.1 74.9 80.1 April 100.0 102.0 110.5 70.5 81.9 69.5 74.6 58.9 May 100.5 102.0 110.5 74.0 80.7 68.4 72.7 56.5 June 100.6 102.2 111.1 72.6 82.6 68.8 77.4 52.0 July 101.6 102.2 110.5 80.9 82.5 68.7 77.3 51.0 August 101.6 102.2 110.8 80.3 82.2 68.3 76.6 54.1 September 100.1 102.0 110.0 73.0 79.5 61.9 74.2 51.9 October 98.9 101.8 108.2 69.6 83.1 69.4 78.2 52.9 November 97.5 101.3 105.6 68.3 81.1 67.5 75.2 46.9 December 96.9 100.8 103.0 72.4 81.1 67.2 74.8 52.5 2001 January 92.1 99.4 95.6 62.8 79.7 65.8 72.5 51.1 February 91.2 99.0 95.5 58.0 82.2 68.5 77.3 46.8 March 91.0 99.5 92.7 62.2 81.5 67.6 75.7 51.4 April 91.0 98.4 96.1 57.1 80.6 66.3 74.5 50.7 May 89.3 97.7 93.2 55.1 79.7 66.4 72.3 49.6 June 87.0 98.0 86.7 55.3 80.6 66.7 74.3 49.3 July 87.1 98.4 86.3 55.3 79.4 67.5 71.0 49.3 August 86.2 98.3 85.6 51.9 77.8 64.9 69.1 47.4 September 88.2 97.6 91.1 53.3 77.6 63.5 68.9 51.9 October 81.5 95.4 77.6 48.9 78.6 66.8 70.1 45.9 November 80.2 96.7 70.8 53.5 73.2 62.0 60.2 45.4 December 74.6 93.4 60.7 51.3 74.5 56.5 66.9 40.4 2002 January 72.6 93.3 56.2 48.9 72.7 60.8 60.8 37.4 February 72.3 93.3 55.1 49.3 75.1 62.6 64.7 37.9 March 73.3 93.1 57.4 50.9 74.1 63.2 61.9 39.8 April 72.7 92.8 54.5 53.9 74.7 60.7 65.2 36.4 May 72.4 91.7 49.7 64.2 76.1 63.3 66.2 41.0 June 72.9 92.1 52.9 61.1 76.7 62.5 67.0 41.0 July 70.5 91.9 49.4 53.4 74.8 63.2 63.5 39.4 August 69.3 91.8 48.7 48.4 77.6 64.7 68.2 42.1 September 69.7 91.8 49.0 50.2 78.0 64.9 67.6 55.1 October 68.3 91.4 48.9 43.0 75.9 62.6 64.0 58.4 November 67.7 91.0 48.2 42.2 73.6 61.0 61.5 45.7 December 66.0 90.5 44.4 40.9 74.4 60.2 63.9 45.3 2003 January 65.3 90.2 42.5 41.6 73.9 62.9 60.3 52.2 February 64.4 89.9 41.1 39.8 76.7 63.2 65.9 54.3 March 64.4 90.0 40.6 40.4 74.0 63.3 60.2 52.6 April 64.4 89.4 41.4 40.4 76.0 63.4 64.2 55.4 May 62.3 89.1 37.6 36.8 75.5 63.5 62.6 57.5 June 63.0 89.2 37.8 39.8 77.4 64.6 66.4 54.8 July 61.8 88.9 34.5 40.4 75.9 64.5 61.9 65.5 August 62.0 88.8 34.3 41.9 76.1 64.6 62.9 60.3 September 61.3 88.8 34.4 38.1 78.6 67.2 65.8 68.8 October 61.1 88.7 35.5 35.1 75.8 64.3 62.7 59.8 November 60.0 88.5 32.9 34.4 73.3 62.4 59.8 47.7 December 59.5 88.3 31.9 33.7 73.4 60.0 61.7 46.1 2004 January 59.2 88.2 32.1 32.0 74.0 61.2 62.6 43.1 February 58.3 87.2 30.4 32.7 74.5 60.0 64.6 41.7 March 58.4 88.1 30.5 30.4 73.3 60.5 62.4 35.8 April 57.8 87.5 29.4 31.0 72.9 60.9 60.9 39.6 May 57.1 86.9 28.5 30.2 71.6 60.5 58.4 39.5 June 57.4 87.1 28.7 30.9 72.5 60.2 60.6 38.8 July 57.0 87.0 27.6 31.4 71.5 59.8 58.5 40.4 August 57.1 86.7 27.9 31.5 70.6 61.0 55.6 40.4 September 56.6 86.6 27.2 30.6 70.8 61.3 56.0 39.8 October 54.7 85.0 24.9 27.9 70.3 60.9 55.3 38.5 November 55.1 86.1 25.3 27.2 71.4 61.0 58.0 35.1 December 54.7 85.4 24.2 28.3 69.8 60.2 54.7 39.0 2005 January 54.1 85.1 23.6 26.9 70.0 59.6 55.8 36.3 February 54.1 85.1 23.7 26.7 68.2 58.8 52.4 35.7 March 53.9 85.0 23.6 25.8 67.7 59.5 50.9 36.7 April 54.0 85.1 23.9 25.7 68.5 60.9 51.7 36.1 May 53.0 84.6 22.3 24.4 66.7 61.0 48.0 34.6 June 53.0 84.9 21.9 24.5 68.2 60.0 51.8 35.0 July 52.5 84.7 21.2 23.5 67.8 60.0 50.9 35.6 August 52.6 84.5 21.6 23.3 67.4 59.8 50.4 33.2 September 52.1 84.2 21.0 22.5 68.1 58.6 52.6 33.7 October 52.0 84.1 21.0 22.1 67.6 58.3 51.9 32.3 November 52.2 84.6 21.1 22.0 68.9 59.3 54.3 30.0 December 51.7 84.1 20.5 21.5 67.2 58.5 50.6 35.7 2006 January 51.6 83.8 20.2 22.7 66.5 57.9 49.8 31.7 February 50.6 83.3 18.7 21.2 66.9 58.0 50.9 29.3 March 50.9 83.3 18.9 21.9 65.9 57.6 48.5 33.6 April 50.8 83.4 19.1 21.3 67.3 56.9 52.5 27.8 May 50.3 83.2 18.5 19.9 61.2 55.9 40.1 28.3 June 49.3 83.0 16.2 18.9 66.0 56.5 50.1 29.3 July 50.1 83.3 18.1 19.5 64.5 56.8 46.6 28.4 August 50.5 83.4 17.5 22.2 65.6 57.0 48.8 28.9 September 50.9 84.3 18.2 20.8 65.5 57.0 48.8 27.2 October 50.2 83.9 17.5 19.7 65.2 57.4 48.2 26.3 November 50.5 84.0 18.5 19.0 64.8 57.1 47.8 26.6 December 49.8 83.7 18.1 16.8 65.4 56.8 48.7 27.6 2007 January 50.5 83.7 18.6 17.2 65.4 56.8 49.0 26.5 February 49.6 83.4 18.3 15.9 64.7 56.6 48.1 26.8 March 49.4 83.6 17.9 16.3 63.8 56.8 45.8 29.8 April 49.1 83.5 18.3 14.1 63.4 56.8 46.0 27.1 May 49.0 83.7 18.0 14.8 62.4 56.8 45.4 25.0 June 49.3 83.9 18.2 14.9 63.2 56.8 45.7 27.3 July 50.1 84.1 18.6 15.4 64.2 56.9 46.8 28.1 August 48.3 83.4 17.3 15.5 64.4 56.7 46.9 29.4 September 48.2 83.6 17.1 15.8 62.7 56.5 45.1 27.6 October* 49.4 83.9 18.0 15.9 64.7 56.9 47.2 29.2 November* 44.2 82.4 14.4 14.4 63.3 56.4 45.9 28.4 December* 44.3 82.0 14.5 14.5 62.7 56.1 45.0 28.5 5171102212 51711022121 51711022122 517110221235171102211 51711022111 51711022112 51711022113 Table 3.3 Monthly Producer Price Indices - Continued (June 1995 = 100) * Subject to revision. Business Special Access Switched Toll Service, except Private Lines Outbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Outbound Interstate Business Special Access Switched Toll Service, Outbound International Business Special Access Switched Toll Service, Outbound Inbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Inbound NAICS Series ID 2000 January 58.2 50.6 47.0 44.9 51.3 71.9 62.4 February 62.4 55.5 55.3 51.9 53.8 74.8 66.0 March 59.7 52.6 52.3 49.4 49.1 72.5 63.1 April 59.7 53.2 52.6 50.2 49.7 71.3 61.6 May 57.7 51.7 50.0 48.3 48.6 68.5 58.3 June 57.0 50.5 51.3 48.4 43.8 68.8 58.6 July 55.4 49.0 49.4 48.0 40.3 66.8 56.1 August 55.6 48.7 50.3 48.2 38.5 67.9 57.4 September 54.3 46.5 46.3 45.3 36.9 68.3 57.9 October 54.7 48.9 49.2 46.8 41.6 65.3 54.3 November 53.3 48.2 49.1 47.2 38.7 62.5 50.9 December 54.5 45.7 45.5 44.2 36.4 70.3 60.5 2001 January 53.0 43.8 40.7 39.4 39.0 69.5 59.5 February 50.2 42.8 43.1 39.7 34.4 63.5 52.1 March 50.7 41.9 41.1 39.5 32.2 66.5 55.4 April 48.9 41.3 47.0 34.8 35.4 62.4 52.9 May 49.3 41.4 49.5 35.5 33.8 63.4 58.5 June 49.6 40.7 44.4 34.9 34.4 65.5 56.8 July 47.9 41.1 41.5 38.7 30.8 60.1 49.9 August 48.4 39.5 37.5 34.6 33.0 64.4 57.7 September 51.2 43.5 49.1 37.2 38.5 65.1 58.5 October 47.4 40.7 49.7 33.6 34.1 59.6 53.3 November 50.2 41.9 29.5 32.6 47.3 65.0 60.8 December 47.7 40.2 47.8 30.0 38.8 61.3 53.4 2002 January 46.0 36.9 47.2 25.7 34.9 62.8 62.8 February 45.3 39.1 48.3 29.4 36.1 56.2 45.7 March 44.9 38.9 52.2 28.3 35.5 55.3 48.1 April 42.8 36.8 53.8 25.0 33.1 53.5 45.4 May 46.7 39.4 50.0 30.2 34.8 59.9 57.0 June 45.0 38.7 49.0 29.5 34.2 56.2 51.9 July 43.9 38.1 49.7 27.7 34.5 54.2 48.5 August 44.8 38.4 43.7 29.4 35.0 56.2 51.2 September 45.9 40.0 52.1 30.4 35.8 56.3 50.5 October 43.3 36.8 45.8 27.0 33.0 54.8 47.2 November 43.9 37.9 47.7 28.6 33.3 54.5 46.3 December 41.2 35.4 43.1 24.3 33.5 51.6 46.6 2003 January 41.5 34.9 47.3 25.1 29.0 53.2 54.0 February 42.8 36.1 42.5 27.3 31.0 54.8 46.7 March 43.1 37.4 46.8 29.7 29.9 53.2 51.5 April 42.6 36.3 47.1 25.3 33.3 53.9 47.8 May 43.4 37.5 41.8 28.1 35.1 53.7 50.8 June 42.6 35.9 44.2 26.2 31.7 54.7 46.9 July 43.7 39.4 51.1 31.0 32.9 51.0 51.0 August 43.9 38.8 49.6 30.0 33.2 52.5 44.3 September 43.5 38.6 50.5 29.0 34.1 51.7 52.3 October 41.9 36.7 46.2 28.4 29.8 51.0 48.1 November 43.5 38.7 49.3 30.5 32.2 51.6 50.2 December 42.3 36.9 46.9 28.5 30.2 51.6 48.8 2004 January 42.4 36.6 47.4 28.1 29.6 52.5 49.4 February 42.3 37.1 42.6 31.7 26.8 51.3 46.9 March 42.0 35.6 42.4 29.6 25.4 53.5 50.0 April 42.0 36.1 46.0 29.7 25.3 52.4 46.7 May 41.8 36.0 43.6 29.7 26.0 52.2 48.4 June 41.6 35.7 43.8 29.3 25.5 52.0 50.5 July 40.4 35.1 43.0 27.7 26.5 49.8 47.7 August 40.0 34.5 44.1 26.4 26.2 49.8 48.4 September 40.2 34.4 45.0 26.8 25.1 50.5 51.7 October 39.8 34.6 44.0 26.5 26.5 48.8 48.0 November 39.1 33.9 41.2 26.1 25.6 48.3 45.0 December 39.5 33.9 42.2 26.1 25.4 49.5 47.2 2005 January 39.7 34.0 41.1 26.1 26.2 49.9 48.3 February 39.1 34.1 38.1 26.4 27.3 47.7 46.0 March 37.9 32.5 42.7 23.7 24.4 47.5 46.5 April 38.9 33.9 43.0 24.7 27.4 47.9 49.2 May 38.9 34.5 46.6 25.0 27.8 46.4 50.3 June 38.8 34.6 46.5 25.7 26.8 46.1 46.4 July 38.3 34.1 45.1 25.0 26.9 45.5 46.9 August 38.1 33.6 44.0 24.1 27.2 45.9 47.0 September 39.2 35.5 43.2 27.8 27.9 45.3 42.1 October 38.5 33.7 40.9 25.0 27.3 46.8 44.1 November 36.3 30.8 32.7 20.4 27.9 46.2 44.9 December 36.3 31.2 32.7 21.6 27.2 45.5 43.1 2006 January 36.0 31.0 34.8 21.8 25.6 44.9 42.8 February 35.6 30.8 31.9 20.9 27.5 44.0 40.6 March 35.7 31.3 34.5 22.3 25.7 43.4 40.2 April 35.7 31.6 32.0 23.9 24.8 42.8 36.9 May 35.2 29.8 32.5 20.2 25.0 45.0 44.1 June 35.3 30.8 30.4 21.9 26.3 43.2 37.0 July 35.1 30.5 32.0 21.1 26.1 43.2 39.5 August 34.6 30.0 31.0 20.7 25.2 42.7 40.1 September 35.3 30.8 31.5 20.6 28.2 43.1 40.3 October 36.4 30.5 32.3 20.5 27.3 47.1 41.8 November 33.9 29.3 32.5 20.0 25.0 42.2 40.4 December 34.4 29.8 30.5 20.4 26.3 42.5 39.5 2007 January 34.8 29.8 30.8 20.4 24.6 44.6 41.1 February 34.3 29.8 29.4 20.7 27.5 41.8 39.7 March 36.1 31.5 33.6 21.2 27.3 43.9 40.4 April 35.0 30.5 32.0 20.7 26.8 42.5 39.1 May 35.5 31.2 33.2 21.1 26.4 42.0 38.9 June 35.2 30.4 32.2 20.6 26.9 43.9 40.8 July 33.8 29.5 31.1 20.0 26.9 40.9 39.4 August 33.3 28.8 29.5 19.7 27.4 41.1 39.6 September 35.2 30.7 31.8 20.9 29.1 42.5 42.9 October* 35.3 30.8 31.9 21.0 29.2 42.5 42.9 November* 34.2 29.7 30.1 20.4 27.5 41.9 38.4 December* 36.5 31.0 30.1 21.6 28.5 47.8 41.7 51711022213 5171102222 51711022221517110222 5171102221 51711022211 51711022212 Table 3.3 Monthly Producer Price Indices - Continued (June 1995 = 100) * Subject to revision. Interstate Business Special Access Switched Toll Service, Inbound International Business Special Access Switched Toll Service, Inbound Other Toll Service Private Line Service Intrastate Private Line Service Other Telephone Services NAICS Series ID 2000 January 75.2 90.6 99.1 100.4 101.2 100.7 February 79.5 90.0 99.6 100.4 101.2 100.9 March 76.1 90.8 100.2 100.4 101.2 100.5 April 74.3 88.5 100.6 100.4 101.2 100.6 May 70.2 89.1 100.3 100.4 101.2 100.0 June 70.6 89.1 100.8 100.4 101.2 100.0 July 67.6 85.2 100.6 100.4 101.2 100.7 August 69.2 93.0 100.3 100.4 101.2 100.6 September 69.8 95.5 100.4 100.4 101.2 101.3 October 65.2 93.0 99.3 100.4 101.1 100.0 November 61.2 78.2 99.8 100.4 101.2 101.3 December 72.9 88.8 95.6 100.4 101.2 101.0 2001 January 71.6 84.2 101.7 100.4 101.1 101.5 February 62.7 81.3 102.9 100.4 101.0 101.5 March 67.2 84.5 101.0 100.4 101.0 101.5 April 60.4 90.4 101.6 100.4 101.0 101.5 May 60.6 90.1 101.4 100.3 100.7 101.5 June 65.0 93.2 101.2 100.3 101.0 101.5 July 56.9 92.6 100.3 100.3 101.0 101.4 August 62.8 88.5 100.2 100.3 101.0 101.4 September 63.7 87.7 101.0 100.5 101.5 101.5 October 55.1 85.7 100.6 100.6 101.7 101.5 November 63.0 80.7 100.3 100.6 101.7 101.7 December 58.3 70.4 101.6 100.6 101.7 101.7 2002 January 58.4 78.6 102.4 100.6 101.7 101.7 February 50.6 76.0 100.5 100.6 101.9 101.7 March 48.4 77.2 99.2 100.6 101.9 101.7 April 45.6 75.6 99.2 100.7 102.2 101.7 May 54.5 74.4 99.9 100.8 102.3 101.6 June 48.9 74.6 100.1 100.9 102.5 101.6 July 46.1 74.2 99.5 100.9 102.7 101.6 August 49.1 75.6 99.6 100.9 102.7 101.6 September 49.6 75.2 99.5 100.9 102.7 101.6 October 47.6 73.5 95.9 101.3 103.7 101.9 November 47.3 74.5 96.4 101.3 103.7 101.8 December 41.6 74.0 93.9 101.3 103.7 102.0 2003 January 42.7 73.9 91.5 101.3 103.7 102.0 February 47.7 74.4 92.4 101.3 103.7 101.9 March 43.4 60.9 90.5 101.3 103.7 101.9 April 45.8 61.3 90.4 101.3 103.7 101.9 May 44.5 59.2 87.2 101.3 103.7 101.9 June 47.5 55.4 86.9 101.3 103.7 101.9 July 39.4 56.4 85.6 101.2 103.6 101.9 August 44.2 54.6 86.7 101.2 103.6 101.7 September 40.4 56.2 84.9 101.2 103.6 101.7 October 40.2 58.6 84.1 101.2 103.6 101.9 November 40.8 52.4 82.7 101.2 103.6 101.9 December 41.1 52.3 81.6 101.2 103.6 101.9 2004 January 42.7 55.6 82.9 101.2 103.6 101.9 February 41.1 54.3 80.7 101.2 103.6 101.9 March 44.4 62.6 78.7 101.2 103.6 101.8 April 43.3 48.5 77.4 101.2 103.6 101.8 May 42.4 46.9 76.9 101.2 103.6 101.8 June 41.4 49.2 75.2 101.2 103.6 101.8 July 38.2 46.6 74.6 101.2 103.6 101.8 August 38.0 45.1 73.3 101.2 103.6 101.8 September 38.2 44.4 74.0 101.3 103.8 101.8 October 36.1 44.1 71.9 101.3 103.9 102.0 November 36.0 37.1 71.2 101.4 104.1 102.0 December 37.7 38.1 71.7 101.5 104.3 102.6 2005 January 38.2 36.8 69.7 101.6 104.6 102.6 February 34.9 23.5 70.4 101.6 104.7 102.7 March 34.2 37.7 68.1 101.7 104.9 102.6 April 34.2 35.4 68.1 101.8 105.0 102.6 May 31.1 35.4 66.2 101.8 105.0 102.6 June 31.4 35.9 67.3 101.8 105.0 102.6 July 30.2 33.6 66.4 101.8 105.0 102.6 August 31.0 34.6 65.5 101.8 105.0 102.6 September 31.2 38.5 66.0 101.8 105.0 103.0 October 33.5 35.1 64.3 101.8 105.0 103.2 November 32.1 39.8 64.0 101.8 105.0 103.8 December 31.3 34.1 63.8 101.8 105.0 103.2 2006 January 30.3 33.8 64.0 101.9 105.6 103.2 February 29.3 34.5 63.8 102.3 106.7 103.1 March 28.1 33.9 62.0 102.6 107.4 103.1 April 28.0 26.5 62.1 102.8 108.1 103.2 May 30.0 32.9 61.4 103.1 109.0 103.1 June 28.7 24.9 61.6 103.2 109.4 103.1 July 28.0 30.8 60.8 103.2 109.4 103.1 August 27.0 29.2 60.3 103.2 109.4 103.1 September 27.6 31.2 61.1 103.2 109.4 103.1 October 30.8 30.4 59.9 103.2 109.4 103.1 November 26.8 29.5 57.8 103.3 109.6 103.1 December 27.3 30.5 58.2 103.4 109.9 103.1 2007 January 28.8 30.7 58.5 103.5 110.2 103.1 February 26.6 31.8 58.3 103.5 110.5 103.5 March 28.3 30.5 57.7 103.5 110.8 105.6 April 27.5 30.2 57.5 103.5 110.9 104.3 May 26.9 30.7 57.5 103.5 110.9 104.2 June 28.2 31.4 57.2 103.5 110.9 104.2 July 25.7 31.6 57.0 103.5 110.9 103.9 August 25.9 31.3 56.7 103.5 110.9 103.8 September 26.1 30.6 56.6 103.5 110.8 103.8 October* 26.1 30.6 56.6 103.5 110.8 103.8 November* 27.0 30.1 56.1 103.6 111.1 103.8 December* 31.7 29.5 56.3 103.6 111.1 103.8 517110951711022223 51711029 5171103 5171103151711022222 Table 3.3 Monthly Producer Price Indices - Continued (June 1995 = 100) * Subject to revision. Appendix Residential Rate Review (2007) Please update these data for October 15, 2007 I. Access Rates Generally Available Service Subsidized Services Such as Lifeline Monthly Charges per line [Note: Express all figures in line items a. through h. in DOLLAR amounts ($)] (#1) Unlimited or Flat-Rate Service (#2) Measured or Message Service (#3) Unlimited or Flat-Rate Service (#4) Measured or Message Service a. Recurring service charge (including touch-tone) ($) b. Federal subscriber line charge (SLC) ($) c. State subscriber line charge ($) (Network Access Fee) d1. Federally tariffed local number portability (LNP) surcharge ($) d2. Federal universal service surcharge on Fed. SLC and LNP ($) d3. Other mandatory surcharges (such as gross receipts tax, regulatory or passthrough charges on the State SLC) accounted as company revenue ($) d4. Tax or surcharge for funding 911 service ($) d5. Federal excise tax (Note: This amount should be equal to 3% of line item f.) ($) d6. Intrastate telecommunications relay service (TRS or relay) tax ($) d7. Tot. other taxes (such as sales, excise, etc.) levied on customers by state, county, local govts. ($) e. Total Surcharges and Taxes (sum d1 to d7) ($) f. Total Monthly Recurring Charge ($) = a+b+c+e g. Lowest monthly inside wiring ($) h. Optional extended area plan ($) Charges for calls in the local service area (Note: Express figures for line item k. only in DOLLAR amounts) i. Number of voice calls or message units included in monthly rate if message service (#) j. Dollar calling allowance for voice calls incl. in monthly rate if measured service (#) k. Charge for a 5-minute, business day, same-zone voice call ($) II. Service Connection Charges [Note: Express all figures in DOLLAR AMOUNTS ($)] Normal Service Subsidized Service (e.g., Link-Up) a. Total connection charge for residential service if no premises visit is required. ($) b. Minimum additional charge if drop line and terminal block are needed to connect service. Do not include any inside wiring charges. ($) III. Other Mandatory Charges for Connection [Note: Express all figures in DOLLAR amounts ($)] Normal Service Subsidized Service (e.g., Link-Up) a. Mandatory surcharges on connection accounted as company revenue ($) b. State, county, and local taxes and surcharges on connection ($) c. Other mandatory connection charges ($) Notes: Form Completed by: Contact Phone Number: Contact E-mail: Business Rate Review (2007) Please update these data for October 15, 2007 I. Access Rates Single Line Business Monthly Charges per line [Note: Express all figures in DOLLAR amounts ($)] Unlimited Service Measured Service a. Recurring service charge (including touch-tone) ($) b. Federal subscriber line charge (SLC) ($) c. State subscriber line charge ($) (Network Access Fee) d1. Federally tariffed local number portability (LNP) surcharge ($) d2. Federal universal service surcharge on the Fed. SLC and LNP ($) d3. Other manadatory surcharges (such as gross receipts tax, regulatory or passthrough charges on the State SLC) accounted as company revenue ($) d4. Tax or surcharge for funding 911 service ($) d5. Federal excise tax [Note: This amount should be equal to 3% of the total reported in line item f.] ($) d6. Intrastate telecommunications relay service (TRS or relay) tax ($) d7. Total other taxes (such as sales, excise, etc.) levied on customers by state, county, local governments e. Total Surcharges and Taxes (sum d1 to d7) ($) f. Total Monthly Recurring Charge = a+b+c+e ($) g. Lowest monthly inside wiring ($) Charges for calls in the local service area [Note: Express figures in DOLLAR amounts for line item j. only] h. The number of voice calls or message unites included in the monthly recurring rate if message service (#) i. The dollar calling allowance for voice calls included in the monthly recurring rate if measured service ($) j. The charge for a 5-minute, business day, same-zone voice call ($) II. Service Connection Charges [Note: Express all figures in DOLLAR amounts ($)] Single Line Business a. Total connection charge for single-line business service. Assume no premise visit is required. ($) b. Minimum additional charge if drop line and terminal block are needed to connect service. Do not include any inside wiring charges. Do not include the cost of an NT1 interface or poser supply for ISDN lines. ($) III. Other Mandatory Charges for Connection [Note: Express all figures in DOLLAR amounts ($)] a. Mandatory surcharges on connection accounted as company revenue ($) b. State, county, and local taxes and surcharges on connection ($) c. Other mandatory connection charges ($) IV. Payphone Charges [Note: Express figure in DOLLAR amount ($)] a. Tariff rate for a 5-minute, business day, same-zone call at a company-owned payphone ($) Notes: Form Completed By: Contact Phone Number: Contact E-mail: Customer Response Publication: Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service, 2008. You can help us provide the best possible information to the public by completing this form and returning it to the Industry Analysis & 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 #: Questions? Contact James Eisner at 202-418-0940 or email James.Eisner@fcc.gov Fax this response to Or Mail this response to 202-418-0520 FCC/IATD Washington, D.C. 20554