1 - 1 1. Industry Revenues and Contributions This section provides a general overview of the revenues of the U.S. telecommunications industry, and the contributions to the universal service support mechanisms that are based on these revenues. 1 Most of the data for 2006 are taken from filings of annual Telecommunications Reporting Worksheets (FCC Form 499-A) made with the Universal Service Administrative Company (USAC) on April 1, 2007. 2 Revenue data collected on these worksheets are used to administer contributions to the universal service fund (USF), Interstate Telecommunications Relay Service (TRS), North American Numbering Plan (NANP), and local number portability (LNP) programs. Filer revenues also are used to calculate FCC Interstate Telecommunications Service Provider (ITSP) regulatory fees. 3 Data presented for 2007 are taken from May 1, 2007, August 1, 2007, November 1, 2007, and February 1, 2008 FCC Form 499-Q quarterly filings. Revenue Information The Commission has established several universal service mechanisms, governed by section 254 of the Telecommunications Act of 1996, that help ensure that all Americans have access to affordable telecommunications service. In section 254(d) of the Telecommunications Act of 1996, 4 Congress mandated that "[e]very telecommunications carrier that provides interstate telecommunications services 1 Portions of this section are based on Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Industry Revenues (August 2008). 2 Telecommunications providers filed worksheets containing calendar year 2007 revenue data on April 1, 2008. The worksheets are filed with the FCC’s Data Collection Agent, which extensively reviews and validates data. Telecommunications providers routinely make revised filings. As a result, the data are not considered reliable enough for publication for several months after the initial filing date. Therefore, the 2008 filings were not available for use in this report and 2007 data were based on the more abbreviated and less reliable FCC Form 499- Q quarterly filings. April 2007 FCC Form 499-A filings containing 2006 revenues were used to compile the 2006 data. Compilation was based on a database prepared by the Data Collection Agent as of October 18, 2007. Therefore, revised or new 2006 FCC Form 499-A filings that were received after October 19, 2007, are not reflected herein. 3 Much of the information filed on FCC Form 499-A is proprietary. Publicly available information on individual carriers is contained in Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Provider Locator (September 2007). See also FCC Form 499-A at gullfoss2.fcc.gov/cib/form499/499a.cfm. 4 Pub. L. No. 104-104, 110 Stat. 56 codified at 47 U.S.C. §§ 151 et seq. 1 - 2 shall contribute, on an equitable and nondiscriminatory basis, to the specific, predictable, and sufficient mechanisms established by the Commission to preserve and advance universal service." 5 The Commission implemented this mandate in a 1997 Report and Order. 6 The Commission subsequently selected USAC as the universal service fund administrator. Telecommunications providers currently file FCC Form 499-A (Telecommunications Reporting Worksheets, due each April) and FCC Form 499-Q (Telecommunications Reporting Worksheets, due one month after the close of each calendar quarter). Virtually all providers of telecommunications must file FCC Form 499-A each year. 7 On June 21, 2006, the Commission ruled that providers of interconnected Voice over Internet Protocol (VoIP) service also must file FCC Form 499-A worksheets. 8 These filers first provided whole year revenue information in their April 2008 FCC Form 499-A filings. Telecommunications Reporting Worksheets are not filed directly with the FCC but rather with USAC, which serves as the data collection agent. 5 47 U.S.C. § 254(d). 6 See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776 (1997) (subsequent history omitted). 7 There are certain exceptions. Providers that offer telecommunications for a fee exclusively on a non-common carrier basis are not required to file if their total annual contribution to universal service would be less than $10,000. Government entities that purchase telecommunications services in bulk on their own behalf, public safety and local government entities licensed under Subpart B of Part 90 of the Commission’s rules, and entities providing interstate telecommunications exclusively to government or public safety entities are not required to file. In addition, broadcasters, non-profit schools, non-profit libraries, non-profit colleges, non-profit universities and non-profit health care providers are not required to file. Finally, systems integrators that derive less than 5% of their systems integration revenues from the resale of telecommunications and entities that provide services only to themselves or to commonly owned affiliates need not file. However, services provided to exempt entities may be subject to contribution requirements and therefore exempt entities may be required to pay USF pass through charges to their underlying services providers. 8 See Universal Service Contribution Methodology; Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review – Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, Truth-in-Billing and Billing Format, WC Docket No. 06-122, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95- 116, 98-170, Report and Order and Notice of Proposed Rulemaking and Report and Order, 21 FCC Rcd 7518 (2006) (2006 Contribution Methodology Reform Order). 1 - 3 FCC Form 499-A asks each filer to report total, interstate and international revenues in two broad categories: those billed to universal service contributors for resale (carrier's carrier revenues); and those billed to de minimis telecommunications providers and end users (end user revenues). 9 Filers must provide further breakdowns of local, wireless, and toll services. The form also asks each filer to choose the communications business that best describes its operations: 10 • Competitive Access Provider (CAP) or Competitive Local Exchange Carrier (CLEC) • Cellular, Personal Communications Service (PCS) and Specialized Mobile Radio (SMR) Wireless Telephony Service Provider • Coaxial Cable • Incumbent Local Exchange Carrier (ILEC) • Interconnected VoIP • Interexchange Carrier (IXC) • Local Reseller • Operator Service Provider (OSP) • Other Local Service Provider • Other Mobile Service Provider • Other Toll Service Provider • Paging and Messaging Service Provider • Payphone Provider • Prepaid Calling Card Provider • Private Service Provider • Satellite Service Provider • Shared-Tenant Service Provider • Specialized Mobile Radio - Dispatch • Toll Reseller • Wireless Data Service Provider The Form 499-A instructs filers to report amounts actually billed to customers. This means that filers are required to report revenues net of discounts, but without making adjustments to reflect uncollectible revenues or international settlement payments and receipts. Most filers are able to report 9 Telecommunications providers are considered de minimis and thus are not required to contribute to universal service (or file Form 499-Q) if their annual contributions to universal service would be less than $10,000. For universal service contribution purposes, underlying service providers treat de minimis providers as end users. 10 The detailed definitions of the filer categories are contained in section III.A of the Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A available at www.fcc.gov/Forms/Form499-A/499a.pdf. Starting in 2004, carriers were instructed to select up to 5 ranked categories of telecommunications service providers. The 2004 through 2006 forms included a category for All Distance carriers. 1 - 4 revenues in this manner using information contained in their corporate books of account. Some service providers, however, have no business or regulatory requirements to record intrastate or international revenues separately from interstate revenues, or to use the detailed revenue categories contained in the worksheets. Many wireless providers use the interim safe harbor percentages to estimate the interstate portion of their revenues. 11 Form 499-A filings sometimes contain mistakes. Initial examination of the data occasionally reveals carrier types, revenue amounts and/or revenues reported in service categories inconsistent with the known operations of the filer. Some corrections have been made based on supplemental filer information or as a result of audits. Nonetheless, disaggregated data are likely to be less accurate than industry totals. Table 1.1 shows the major components of telecommunications revenues for 1997 through 2007. This table was created by simply aggregating the revenues in the major classifications designated on Form 499-A. Tables 1.2 and 1.3 provide a look at annual industry revenues over time. Generally, Form 499-A revenue data can be tabulated in two distinct ways: by type of service provided and by type of business. Table 1.2 categorizes revenues by type of service and shows, for example, that carriers reported $115.3 billion in wireless service revenues for 2006. This total includes wireless service revenues from some carriers that are not identified as wireless carriers. In contrast, Table 1.3 shows that wireless service providers reported total revenues of $117.8 billion, including some revenues for fixed local and toll services. Revenue data shown for 1996 were derived from information filed on TRS worksheets. Revenue data for 1997 and 1998 were derived by combining TRS worksheet and Universal Service worksheet data. Since 1999, revenue data came from Form 499-A, which replaced both the TRS and Universal Service worksheets. Because of reporting changes, data since 1999 are not entirely consistent with data for prior years. 12 11 See Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A section III.C.3., available at http://www.fcc.gov/Forms/Form499-A/499a-2005.pdf. In 2001 and 2002, the interim safe harbor for wireless carriers was 15%. In December 2002, the Commission raised the wireless interim safe harbor to 28.5%. Wireless carriers began reporting revenues based on the higher interim safe harbor percent on the FCC Form 499-Q due on February 1, 2003, and began contributing on this basis in April 2003. In the 2006 Contribution Methodology Reform Order, the Commission raised the wireless interim safe harbor to 37.1%. Wireless carriers began reporting revenues based on this higher interim safe harbor percent in the FCC Form 499-Q due on August 1, 2006. 12 For example, special access revenues were included with other access revenues prior to 1997 but have been included with local private line services since then. Similarly, through 1996, filers reported as other local and mobile revenues substantial amounts of customer premises equipment, billing and collection, and other types of revenues that are excluded from contributions to universal service. These revenues are now reported as non-telecommunications revenues. Both 1 - 5 Note also that each year, many filers erroneously report substantial amounts of switched toll revenues as other long distance revenues. The data are examined and some revenues are reclassified based on staff research. Even so, the other long distance category of Table 1.2 probably continues to contain some switched toll revenues, perhaps significant amounts in some years. Table 1.4 illustrates how data from the Form 499-A are used to develop the funding base for the USF. 13 As noted above, providers are considered de minimis for USF purposes if their annual contribution is expected to be less than $10,000. Revenue data for individual filers are not available to the public. However, Tables 1.5 through 1.8 present detailed industry totals by type of revenue and type of filer. Table 1.5 provides a detailed breakout of revenues for each of the Form 499-A revenue categories used to report services provided to other filers for resale. Table 1.6 displays similar detail for each of the revenue categories used to report telecommunications service provided to end users. Table 1.7 combines data from Tables 1.5 and 1.6 with data on non-telecommunications revenues to develop total industry revenues. Table 1.8 provides more aggregated revenue information by type of filers. The revenue categories presented in Tables 1.5 through 1.7 are explained in the Form 499-A filing instructions. Table 1.9 presents data from quarterly filings of Form 499-Q for 2007. Form 499-Q is far less detailed than Form 499-A. Because Form 499-Q filings do not include a business type, filers were categorized based on the primary business type selected on their Form 499-A filings. The quarterly form asks filers to identify revenues as carrier’s carrier, contribution base end user, or non-telecommunications and to indicate the interstate and international shares of each category. Unlike Form 499-A, the quarterly form does not require filers to classify revenues by types of service. Also, international-to-international revenues are included with non-telecommunications revenues rather than with end user revenues. 14 tables contain estimates of non-telecommunications revenues that had been reported in prior years. Based on staff estimates, the 1996 telecommunications revenues reported on TRS Worksheets would have been $10.5 billion lower if revenues had been reported using current instructions. Some inconsistencies existed in the 1997 - 1998 period. For example, filers were required in 1997 to include inside wiring maintenance revenues as part of local exchange revenues. In 1998, filers were instructed to report these revenues as non-telecommunications service revenues. The local exchange service revenue data in Table 1.2 would show a greater increase from 1997 to 1998 if the same reporting instructions had been used for each year. 13 See Telecommunications Industry Revenues 2006, available at http://www.fcc.gov/wcb/iatd/lec.html for a comparison with the funding bases used for TRS, NANP, and LNP. 14 Filers record international-to-international revenues for calls that they receive outside the United States and that they carry to points outside the United States where the filer is operating as a U.S. carrier. 1 - 6 The universal service rules prohibit the fund administrator from releasing company-specific information contained in Form 499-A and Form 499-Q worksheets. 15 Revenue data for individual filers are not available to the public. Program Requirements and Contribution Factors Contributors make payments into the USF based on their interstate and international end user telecommunications revenues. Contributors report their revenue data to USAC, which tabulates the data, and reports it to the Commission. The Commission reviews program requirements and revenue data, and determines the appropriate contribution factor. The Commission’s Office of Managing Director releases a public notice stating the proposed contribution factor for the upcoming quarter. If, after 14 days, the Commission takes no action regarding the proposed contribution factor, the factor becomes final. 16 In February 2002, the Commission issued an order that, in relevant part, eliminated from the contribution base charges identified on the bill as recovering contributions to the universal service support mechanisms, a situation known as “circularity.” 17 Specifically, to account for the inclusion of universal service line-item revenues in their contribution bases, service providers would increase their universal service line items above the contribution factor. Before these changes, service providers filed historic revenue information each quarter, including revenue derived from pass through charges on customers’ bills, and the Commission would use these revenue totals along with total estimated program requirement to calculate the contribution factor. 18 The elimination of circularity was implemented in the third quarter of 2002, and reduced each carrier’s contribution base by the amount that the carrier paid into USF during the prior quarter. The line item “Circularity Adjustment” in Table 1.10 accounts for this change. The “Circularity Adjustment” represents the industry’s actual contributions during the prior quarter as reported by USAC. This eliminated circularity as a reason for carriers to inflate pass through charges. In December 2002, the Commission adopted an order that changed the basis for contribution assessments from historic gross-billed revenues to projected collected revenues. 19 This change addressed 15 47 C.F.R. §54.711(b). 16 47 C.F.R. §54.709(a)(3). 17 See Federal-State Joint Board on Universal Service, et al, CC Docket Nos. 96-45, 98-171, 90- 571, 92-237, 99-200, 95-116, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752 (2002). 18 The Commission reduces the revenue estimates by 1% to account for uncollectibles. 19 See Federal-State Joint Board on Universal Service, et al, CC Docket Nos. 96-45, 98-171, 90- 1 - 7 the reason given by service providers with declining revenue for marking up their pass through charges. These service providers argued that they had to contribute based on historic amounts that were greater than their current period billings, resulting in the need to mark up their pass through charges. This change was fully implemented in the second quarter of 2003. Having addressed circularity and changing the contribution assessment methodology to address declining revenues, the two main reasons cited by providers for marking up their pass through charges, the Commission adopted a rule requiring those contributors that recover their universal service contributions through a universal service line item to limit their recovery to the interstate portion of the customer’s bill times the relevant contribution factor. 20 Form 499-Q filers now file information on billed revenues for the previous quarter and both projected billed revenues and projected collected revenues for the upcoming quarter. Projected collected revenues, which are projected billed revenues less an allowance for uncollectible revenues, form the basis for USF contribution assessments. Projected collected revenues are then adjusted to eliminate circularity. Starting with the second quarter of 2003, the "Circularity Adjustment" amounts shown in Table 1.10 (discussed in more detail below) reflect expected USF contributions for the quarter rather than the industry's actual contributions from a prior quarter. Table 1.10 shows the program funding requirements for 2007 and the first three quarters of 2008. For each program and for each quarter, the table lists projected program demand, administrative costs, interest income, and periodic true-ups. The table also shows the revenue base and contribution factors for each quarter. As explained above, the contribution base is 1% less than reported revenues to reflect the fact that some contribution assessments may prove uncollectible. In accordance with the Consolidated Appropriations Act of 2008 (P.L.110-161), the FCC instructed USAC to transfer $21.48 million from the USF to the FCC in federal fiscal year 2008 to support USF oversight efforts, including conduct of audits and investigations by the FCC Office of Inspector General. 21 Because the transfer of funds will not count against any funding caps, USAC must recoup the funds by adding the transfer of $21.48 million to the total required collections. One-half of this amount is included in the 3 rd quarter 2008 demand projection for each support mechanism. The remaining half will be included in the 4 th quarter 2008 demand projection for each support mechanism. The 3 rd quarter 2008 figures are shown in Table 1.10. 571, 92-237, 99-200, 95-116, 98-170, Report and Order and Second Further Notice of Proposed Rulemaking, 17 FCC Rcd 24952 (2002). 20 47 C.F.R. §54.712. 21 See Letter from the FCC Managing Director to D. Scott Barash, USAC Acting CEO, dated February 29, 2008. 1 - 8 Table 1.11 shows universal service disbursements on a mechanism-by-mechanism basis for 2006. and 2007. 22 Chart 1.1 shows the 2007 information graphically. Table 1.12 shows, on a state-by-state basis, the total amount of funding disbursements for each of the universal service mechanisms, estimated contributions towards universal service, and the net estimated dollar flow (disbursements less estimated contributions) for 2007. 23 22 Figures in Table 1.11 are lower than those in Table 1.10 due to the difference between projected demand and actual disbursements. The figures used in Tables 1.11 and 1.12 include disbursements that were committed over several years but paid out in the appropriate calendar year. In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. 23 For a discussion of the methodology used to estimate contributions per state, see the Technical Appendix below and Table 1.13. 1 - 9 Technical Appendix Carrier revenue information is not reported on a state-by-state basis. Therefore, it is necessary to estimate revenues per state in order to derive contributions made per state. The nationwide sum of contributions to support universal service is equal to the payments made from USAC to recipients of funds from the universal service mechanisms plus administration costs. Contributions on a per-state basis are computed by multiplying nationwide contributions by the ratio of interstate end user revenues in each state to nationwide interstate end user revenues. Estimates of interstate end user revenues by state are reported in Table 1.13. These estimates of end- user interstate revenue are used as a basis for estimating contributions in Table 1.12. 24 The remainder of this appendix provides a detailed description on how revenues are allocated to the states. Tables 1.5 and 1.6 present nationwide data on telecommunications revenues derived from information filed on Form 499-A Telecommunications Reporting Worksheets. Nationwide (cumulative) telecommunications revenues from these tables are divided into categories. These categories are ILECs’ local exchange service revenues, CLEC revenues, subscriber line charge (SLC) revenues, access revenues, mobile wireless revenues and toll revenues. 25 Table 1.14 presents telecommunication revenues for each of these categories at the nationwide level. As set forth below, once the revenues are divided into categories, we use data from several sources to estimate each state’s telecommunications revenues. Data from ARMIS 26 are used to estimate on a state-by-state basis ILECs’ local exchange service revenues, access revenues, and toll revenues. 27 Data from tariff access filings with the FCC are used to estimate SLC revenues. CLEC and mobile wireless revenues are estimated on a state-by-state basis using data from FCC Form 477. 24 Each state’s share of interstate end user revenues and contributions are reported under the heading “estimated contributions percent of total.” 25 The notes in Table 1.14 discuss how revenues from Tables 1.5 and 1.6 are assigned to categories in Table 1.14. 26 Automated Reporting Management Information System (ARMIS). ARMIS data are available on the ARMIS Internet site, which can be reached at www.fcc.gov/wcb/eafs/. 27 Revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are not estimated using data from ARMIS because these jurisdictions have no telephone companies subject to the FCC's ARMIS 43-01 and 43-08 reporting requirements. In 2006, no telephone companies filed ARMIS data for Hawaii. As an estimate for Hawaii for 2006, the data filed in the 2007 ARMIS are used instead. 1 - 10 Table 1.15 shows intrastate carrier’s carrier, end user and total telecommunications revenues by category for ILECs’ local exchange service, CLECs, wireless, access, ILEC toll, and non-ILEC toll. 28 Components of interstate carrier’s carrier, end user and total telecommunications revenues are presented in Table 1.16. These components include ILECs, CLECs, wireless, SLCs, access, and toll. 29 Data from ARMIS are adjusted prior to allocating nationwide revenues to the states. ARMIS data include those ILECs with annual operating revenues over $129 million for 2005 and revenues over $134 million in 2006. The ARMIS revenue data represent approximately 92 percent of the local telephone industry based on USF loops. Here, data from ARMIS are expanded to include the entire ILEC industry based on USF loops. Column 1 of Table 1.17 shows USF loops at year-end 2006. Column 2 shows the percent of the ILEC industry that reported in the ARMIS filings. It is the average for year-end 2005 and 2006 data. 30 The adjustment formula in Column 3 is (100/Column 2). In Table 1.18, ILECs’ state local exchange revenues are allocated based on local exchange service and state miscellaneous revenues from ARMIS Report 43-01 filings. Local exchange revenues for allocation are the product of reported ILECs’ local exchange service and miscellaneous revenues and the adjustment formula in Table 1.17. Allocation percentages in each state are the ratio of the state’s allocation revenues to nationwide revenues. Local exchange revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.19, we allocate interstate and intrastate CLEC revenues on a state-by-state basis by multiplying national revenues (see Table 1.14) by an allocation percentage. The allocation percentage is determined by dividing the number of CLEC lines in a state, as reported in FCC Form 477, by nationwide CLEC lines. 31 In Table 1.20, we allocate interstate and intrastate mobile wireless revenues on a state-by-state 28 Estimated intrastate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average intrastate telephone revenues per loop by number of loops in the jurisdiction. 29 Estimated interstate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average interstate telephone revenues per access minute by number of access minutes in the jurisdiction. 30 The staff estimate is based on the share of USF loops that are associated with carriers that file ARMIS reports. 31 See Local Telephone Competition: Status as of December 31, 2007 at http://www.fcc.gov/wcb/iatd/comp.html for CLEC lines as of June 2006. 1 - 11 basis by multiplying national revenues (see Table 1.14) by an allocation percentage. The allocation percentage is determined by dividing the number of wireless subscribers in a state by nationwide wireless subscribers using data from FCC Form 477. 32 SLC revenues are allocated by state in Table 1.21. The sum of residential non-Lifeline lines (including both primary and non-primary lines) and single-line business lines are estimated by multiplying residential non-Lifeline lines and single-line business lines from ARMIS Report 43-01 by the adjustment factor from Table 1.17. Column 1 shows primary residential lines and single-line business lines which is the difference between total residential and single-line business lines, and non-primary lines. Non-primary residential lines are from ARMIS Report 43-08. Multi-line business lines (Column 3) are estimated for the industry by multiplying the number of lines in ARMIS Report 43-01 by the adjustment factor in Table 1.17. Primary residential and single-line business lines SLC rates per month, shown in Column 4, are the rates filed in the Tariff Review Plan (TRP) for price-cap carriers from July 2007 filings and from National Exchange Carrier Association (NECA) pool and rate-of-return carriers. 33 Non-primary SLC revenues per line per month for price-cap companies, shown in Column 5, are the rates filed in the TRPs from the July of 2007 filings. Multiline business SLC rates per line per month in each state, shown in Column 6, are estimated based on the rates in the July 2007 TRP filings for price-cap companies and from NECA pool and rate-of-return carriers. 34 Revenues used for allocating SLC revenues by state are determined by the following formula: 12 * [primary residential and single-line business SLC per line per month * (primary residential lines and single-line business lines) + multiline business SLC per line per month * (multiline business lines) + non- primary lines * non-primary SLC per line per month]. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. SLC revenues are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.22, interstate access revenues and private line revenues are allocated on a state-by-state basis based on net access revenues. Gross access revenues for allocation are the product of interstate access revenues from ARMIS Report 43-08 and the adjustment formula presented in Table 1.17. Revenues for allocation are the difference between gross access revenues for allocation and subscriber line charge revenues. Allocation percentages in each state are the ratio of the state’s allocation revenues 32 See Local Telephone Competition: Status as of December 31, 2007 at http://www.fcc.gov/wcb/iatd/comp.html for wireless subscribers as of June 2006. 33 Carrier USF loop counts are used as weights. We assume that the residential SLC for NECA pool and rate-of-return carriers during the relevant time period was $6.50. 34 The rates of NECA pool carriers and rate-of-return carriers are assumed to be $9.20 per line per month for multiline business. 1 - 12 to nationwide revenues. Access revenues by type are determined by multiplying the allocation factors by the revenues of each type (see Table 1.14). In Table 1.23, intrastate access revenues are allocated between states based on intrastate access revenues from ARMIS Report 43-08. Intrastate access revenues for allocation are the product of these access revenues and the adjustment formula in Table 1.17. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. Access revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). Table 1.24 shows ILEC toll revenues of large ILECs reported in ARMIS Report 43-08, and ILEC intrastate toll revenues. 35 ILEC intrastate toll revenues are the product of ILEC reported revenues and the adjustment formula in Table 1.17. Table 1.25 shows how non-LECs’ intrastate toll revenues are allocated between states based on intrastate access minutes and intrastate access revenues. 36 Non-LEC toll is the difference between intrastate toll revenues and LEC toll revenues. 37 Intrastate toll revenues are reported in Table 1.14, and LEC toll revenues are reported in Table 1.24. Column 1 shows access minutes for allocation. Access minutes for allocation are the product of intrastate-interLATA access minutes from ARMIS Report 43-01 and the adjustment formula in Table 1.17. Column 2 shows each state’s percentage of intrastate access minutes. Column 3 shows each state’s percentage of intrastate access revenues. 38 The allocation percentages for non-LECs’ intrastate toll revenues, presented in Column 4, are (75% * Column 2) + (25% * Column 3). Intrastate toll revenues by type presented in Columns 5 and 6 are determined by multiplying the allocation percentage by the type of revenues. In Table 1.26, interstate toll revenues are allocated on a per state basis by interstate access minutes. Interstate access minutes are from Table 8.4. The allocation percentages are each state’s percentage of interstate access minutes. Interstate toll revenues by type presented are determined by multiplying the allocation percentage by the type of revenues. (see Table 1.14). 35 ILECs’ toll revenues as reported in ARMIS are treated as intrastate revenues for allocation purposes. 36 Intrastate access revenues are a proxy for intrastate toll rates. 37 We assume that all LEC toll revenues are end user revenues. 38 Intrastate access revenues are reported in Table 1.23. Non-LEC toll is the difference between intrastate toll revenues and LEC toll. LEC toll is assumed to be end user toll. Intrastate toll revenues are reported in Table 1.14 and LEC toll in Table 1.24. Table 1.1 Total Telecommunications Industry Revenues 1/ (Dollar Amounts Shown in Millions) Preliminary 5/ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Carrier's Carrier Revenues 2/ Local Service 3/ $28,289 $29,374 $33,156 $36,621 $40,108 $38,412 $37,742 $38,546 $39,213 $39,392 $40,293 Wireless Service 2,752 3,060 4,652 5,144 6,180 5,020 4,465 4,164 6,334 5,187 6,712 Toll Service 11,598 13,448 14,934 21,849 19,999 16,476 18,205 15,703 16,892 15,101 15,089 Intrastate 16,201 18,892 22,293 25,553 27,848 25,770 24,825 25,852 27,486 24,848 25,854 Interstate and International 4/ 26,438 26,990 30,449 38,060 38,439 34,138 35,587 32,561 34,953 34,831 36,240 Total 42,639 45,758 52,742 63,613 66,287 59,907 60,412 58,413 62,439 59,679 62,094 End User Revenues 2/ Local Service 3/ 69,137 75,189 78,608 84,526 87,704 88,712 86,474 83,407 82,382 78,215 78,207 Wireless Service 30,199 33,714 43,843 56,857 68,507 76,501 85,254 94,404 100,743 110,096 117,128 Toll Service 89,193 91,607 93,311 87,767 79,302 67,222 58,983 55,511 52,358 49,278 42,758 Intrastate 117,454 123,216 134,919 147,465 155,347 154,815 150,889 153,265 154,310 157,653 158,240 Interstate and International 4/ 71,076 77,294 80,844 81,685 80,165 77,619 79,822 80,057 81,173 79,937 79,854 Total 188,529 200,510 215,763 229,149 235,513 232,434 230,711 233,322 235,482 237,589 238,093 Total Revenues Local Service 3/ 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 118,500 Wireless Service 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 123,841 Toll Service 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 57,847 Intrastate 133,655 142,108 157,212 173,018 183,195 180,585 175,714 179,117 181,796 182,501 184,093 Interstate and International 4/ 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,617 116,125 114,768 116,094 Total $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $300,188 Note: Detail may not add to totals due to rounding. 1/ 2/ 3/ 4/ 5/ Preliminary 2007 data are based on FCC Form 499-Q quarterly filings through November 2007. Companies that do not contribute to universal service are not required to make these filings. The quarterly filings include preliminary data for the just closed quarter and projections for the coming quarter, and therefore are not as accurate as the subsequent annual filings. Also, FCC Form 499-Q filers do not separate revenue by type of service. Therefore, revenue totals by service type for 2007 are based on type of filer rather than on data filed by service. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements. Carrier's carrier revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale. This includes, for example, access services that local exchange carriers provide to toll carriers. Sales to de minimis resellers, end-user customers, governments, non-profits, and any other non-contributors are treated as end-user revenues. Filers contribute to the universal service funding mechanisms based on their end-user revenues. See Table 1.4 for further details on contribution bases. Payphone revenues are included with local service revenues in this table. Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table through 2006, but are not included in the universal service contribution base. These revenues are not included in preliminary 2007 data. 1 - 13 Table 1.2 Telecommunications Industry Revenues by Service (Dollar Amounts Shown in Millions) Universal Service FCC Form 499-A Data & TRS Data 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Local Exchange $48,717 $53,771 $59,245 $64,940 $69,947 $72,346 $71,320 $70,606 $68,238 $66,506 $63,264 Pay Telephone 1/ 2,182 2,536 2,218 1,932 1,585 1,192 1,063 1,002 924 659 Local Private Line 2/ 1,616 8,282 10,403 12,914 16,864 21,966 23,070 22,415 23,840 25,673 25,448 Other Local 3/ 2,674 2,847 2,179 2,501 3,249 3,391 3,418 3,242 2,944 3,331 3,884 Subscriber Line Charges 2/ 7,829 8,327 11,052 10,826 11,563 12,127 12,758 12,136 11,715 11,113 10,827 Access 2/ 27,812 21,423 18,449 18,105 17,017 15,096 13,955 12,972 12,352 11,822 11,392 103 260 575 1,301 1,410 1,783 1,862 2,227 2,133 595 595 Total Local Service 88,647 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 Wireless Service 23,444 32,760 36,240 48,117 61,505 74,006 80,678 88,023 96,450 104,489 112,442 345 379 495 681 842 1,696 2,118 2,587 2,841 189 189 Total Wireless Service 23,444 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 Operator 1/ 10,975 12,002 12,205 10,049 11,406 10,389 7,902 6,567 6,542 6,631 5,577 Non-Operator Switched Toll 73,751 72,059 74,168 78,389 75,183 65,325 54,475 50,178 46,387 44,876 41,570 Long Distance Private Line 10,665 10,504 11,952 13,169 16,189 16,402 15,108 15,316 13,906 13,264 12,739 Other Long Distance 4,299 4,695 3,386 3,656 3,372 3,259 2,445 2,222 1,801 2,021 2,154 1,810 2,983 3,467 3,927 3,767 2,905 2,577 2,458 2,340 1,532 1,532 Total Toll Service 99,691 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 Total Telecommunications 3/ 211,782 231,168 246,392 268,505 292,762 301,799 292,341 291,122 291,735 297,921 297,269 Non-Telecommunications 3/ 10,474 25,633 27,944 33,144 42,261 48,036 60,406 65,186 71,493 86,764 101,061 Total Reported Revenues 222,256 256,801 272,019 301,648 335,023 349,835 352,747 356,308 363,227 384,685 398,329 Service Reported as: Intrastate 3/ 127,849 133,654 142,108 157,212 173,018 183,195 180,585 175,714 179,129 181,796 182,501 Interstate and International 94,407 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,605 116,125 114,768 Total Telecommunications 3/ $222,256 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 TRS Data See notes on next page. Universal Service Surcharges on Local Service Bills 4/ Additional Revenues from TRS Worksheets Universal Service Surcharges on Wireless Service Bills 4/ Additional Revenues from TRS Worksheets Universal Service Surcharges on Toll Service Bills 4/ Additional Revenues from TRS Worksheets 1 - 14 TRS filers generally reported pay telephone revenues as local service revenues, access revenues or operator toll revenues. The Universal Service and FCC Form 499-A worksheets contain a separate category for payphone coin revenues. Starting in 1997, payphone revenues include payphone compensation received from toll carriers. TRS Worksheet filers generally reported special access revenues as access revenues. Reporting changes implemented with the Universal Service Worksheet explain the increase in local private line revenues and the fall in access revenues shown for 1997. TRS Worksheet filers included subscriber line charges with other access charges. Through 1996, these revenues have been disaggregated by assuming that the end-user access revenues in Table 4.2 of Statistics of Communications Common Carriers represents 93% of industry total subscriber line charge revenues. Universal Service Worksheet filers report subscriber line charges in a separate category. The increase from 1997 to 1998 represents PICC charges levied by ILECs as well as $1.2 billion of PICC pass-through charges levied by toll carriers. Significant amounts of enhanced services, billing and collection, CPE and other non-telecommunications revenues were reported in the TRS mobile and other local service categories through 1996. Universal Service Worksheet filers report these revenues in the non-telecommunications category. For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of amounts reported as mobile service revenue. These amounts have been removed from Other Local and moved to the Non- Telecommunications category. Note: Detail may not add to totals due to rounding. Some data for prior years have been revised. 1/ Notes for Table 1.2 2/ 3/ Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless and toll revenues. Reported amounts are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll intrastate and interstate revenues by type of carrier. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Data for 1996 summarized from FCC Form 431 TRS Worksheets. Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets. Starting in 1999, data summarized from FCC Form 499-A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. 4/ 1 - 15 Table 1.3 Telecommunications Revenues Reported by Type of Carrier (Dollar Amounts Shown in Millions) FCC Form 499-A Data & TRS Data Service Provider Category 1/ 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Incumbent Local Exchange Carriers 2/ $100,021 $105,154 $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 $105,496 $103,561 $99,997 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 1,011 1,919 3,348 5,652 9,814 12,998 13,043 15,509 15,112 16,930 17,276 Interconnected VoIP 514 Local Resellers 206 410 511 879 1,393 1,538 721 1,215 630 460 Other Local Exchange Carriers 157 36 171 11 329 406 338 245 216 124 Private Service Providers 112 147 87 39 15 281 267 532 770 1,080 Shared-Tenant Service Providers 87 93 87 202 46 42 22 22 22 19 Competitors of Incumbent LECs 1,011 2,481 4,034 6,508 10,945 14,781 15,309 16,857 17,126 18,568 19,473 Fixed Local Service Providers 101,032 107,634 112,268 118,725 127,103 132,666 130,300 126,337 122,622 122,128 119,470 Payphone Providers 357 933 1,101 1,213 972 836 641 523 445 481 435 Wireless Telephony Including Cellular, 21,400 29,944 33,139 46,513 59,823 71,887 78,568 88,168 98,329 107,834 116,971 Personal Communications Service (PCS) and SMR Telephony Carriers 2/ Paging & Messaging Service 2/ 2,861 3,161 3,232 3,102 2,197 1,473 1,007 872 579 555 Specialized Mobile Radio (SMR) 186 191 214 206 33 46 226 48 Dispatch Wireless Data Service Providers and Other Mobile Service Providers 2/ 1,909 225 731 221 164 110 220 135 218 169 178 Wireless Service Providers 23,310 33,030 37,032 50,152 63,280 74,596 80,467 89,342 99,465 108,809 117,752 Interexchange Carriers (IXCs) 79,057 79,080 83,443 87,570 87,311 81,272 68,146 61,246 51,589 46,856 44,083 Operator Service Providers (OSPs) 461 603 590 337 635 611 554 567 523 548 631 Prepaid Calling Card Providers 238 519 888 866 727 133 460 812 1,635 1,828 1,713 Satellite Service Providers 1,011 475 280 336 373 406 663 721 714 444 Toll Resellers 6,564 8,010 9,885 9,211 10,641 8,797 9,279 9,294 12,192 13,362 9,943 Other Toll Carriers 577 348 710 150 1,758 2,516 2,089 2,339 2,543 3,195 2,798 Toll Service Providers 86,896 89,570 95,992 98,414 101,407 93,702 80,934 74,920 69,204 66,503 59,611 Adjustments 3/ 187 0000000000 Total Telecommunications Revenues $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $295,742 1/ 2/ 3/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Other adjustments include some amounts withheld to preserve confidentiality and revisions made after the initial publication of the data. Universal Service Filers are asked to select for themselves a service provider category that best describes their operations. The choices have changed over the years. For example, most satellite service providers identified themselves as other toll carriers in their 1997 FCC Form 431 TRS worksheets because there was no separate category for satellite service providers. For 2003 through 2005, some filers identified themselves as all distance carriers. These filers have been reclassified to be consistent with prior classifications. Starting with the 2007 FCC Form 499-A filing, which reported 2006 revenue data, some filers identified themselves as interconnected VoIP providers and some filers first began reporting revenues for these services. Significant amounts of enhanced services, billing and collection, CPE and other non-telecommunications revenues were reported in the TRS mobile and other local service categories through 1996. Universal Service Worksheet filers report these revenues in the non- telecommunications category. For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of amounts reported as mobile service revenue. These amounts have been removed from incumbent LEC totals. TRS Data 1 - 16 2006 Revenues subject to universal service contribution Billed interstate and international end-user revenues [ Line 412(e) + Line 420(d) + Line 420(e) ] $79,937 less revenues for international - to - international services [ Line 412(e) ] 708 less international revenues of international-only filers and international revenues that were excluded because of 3,598 the 12% rule 2/ less interstate and other international revenues for 3,615 filers who are ide minimis or otherwise exempt from universal service support requirements 57 less uncollectible contribution base revenues [ Line 422(d) + Line 422(e) ] 1,073 (Does not include uncollectible amounts associated with revenues excluded above.) equals $74,499 Revenues subject to TRS contribution Interstate and international end-user revenues $79,937 less interstate and international revenues for 150 filers who identify themselves as private service providers or as shared tenent service providers and who therefore are exempt from telecommunications relay service (TRS) contribution requirements if they provide no carrier services 367 less iinterstate and international revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service support mechanisms [ Line 511(b) ] 211 equals $79,359 Revenues subject to NANPA and LNP contribution Total telecommunications service end-user revenues (including intrastate, interstate and international) $237,589 less telecommunications revenues for 745 filers who identify themselves as private service providers, shared tenent service providers or payphone service providers and who therefore are exempt from North American Numbering Plan Administration (NANPA) and local number portability administration (LNP) contribution requirements if they provide no carrier services 851 less telecommunications revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service support mechanisms [ Line 511 (a) ] 340 equals $236,398 1/ 2/ International revenues are excluded from the contribution base if the total amount of interstate end-user revenues for the filing entity consolidated with all affiliates is less than 12% of the total of interstate and international end-user revenues for the filing entity consolidated with all affiliates. See 47 C.F.R. § 54.706(c). The threshold was increased from 8% to 12% in 2002. See Federal-State Joint Board on Universal Service, et al., CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-166, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752, 3806, para. 125 (2002). In addition, filers that provide only international services are exempt regardless of services offered by affiliates. This table shows how contribution bases differ for different programs and provides relative magnitudes, but does not provide the actual amounts used for determining contribution amounts. Amounts shown represent the amounts contained in the FCC Form 499-A database as of October 19, 2007. The universal service administrator continues to receive additional and corrected filings. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Ebased on revenues and the filer type information contained in the FCC Form 499-A filings. The fund administrators may use carrier type, revenue type, line 603 exemption certifications and additional information requested from filers to determine which filers must contribute. The universal service fund administrator bills delinquent filers based on estimated revenues and may, in some instances, include estimated revenue amounts in contribution base amounts. Note also that universal service contribution factors are set quarterly based on FCC Form 499-Q filings. FCC Form 499-A data are used for true-up and auditing purposes. Also note that local number portability contribution amounts are determined by region of the country rather than on a nationwide basis. As a result of these factors, actual contribution bases have been based on slightly different amounts than those shown. Table 1.4 Contribution Base Revenues By Program 1 /: 2006 (Dollar Amounts Shown in Millions) 1 - 17 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2006 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) $3,022 $284 $0 $3,306 $137 $6 * $143 0 Provided under other arrangements 618 102 0 719 113 82 * 195 Total Line 303 3,640 386 0 4,026 250 89 * 338 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 2,869 2,391 0 5,260 2,202 1,025 2 3,229 0 Provided as unbundled network elements or other contract arrangement 575 372 0 947 98 27 * 125 Total Line 304 3,444 2,763 0 6,207 2,300 1,051 2 3,353 305 Local private line & special access 609 10,332 0 10,942 295 1,359 * 1,654 306 Payphone compensation from toll carriers 50 50 0 101 1 3 * 4 307 Other local telecommunications service revenues 2,407 704 0 3,111 22 1 0 23 308 Universal service support revenues received from 903 876 0 1,778 658 1,836 * 2,494 Federal or state sources Total fixed local service provided for resale 11,053 15,111 0 26,164 3,525 4,339 3 7,867 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 62 15 0 78 24 4 * 27 Total mobile service provided for resale 62 15 0 78 24 4 * 27 Toll service 310 Operator and toll calls with alternative billing 16 0 0 16 * * 0 * arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 168 * 0 168 6 2 * 8 toll-free 8xx service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services 17 9 0 25 7 5 0 12 313 Satellite services 00 00 00 00 314 All other long distance services * * 0 * 5 * * 6 Total toll service provided for resale 202 9 0 210 19 7 * 26 315 Total service provided for resale (carrier's carrier) $11,317 $15,135 $0 $26,452 $3,567 $4,349 $3 $7,920 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 18 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECs and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) $146 $171 $2 $319 $1 * * $1 0 Provided under other arrangements 119 21 * 139 0 0 0 0 Total Line 303 265 192 2 459 1 * * 1 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 577 362 5 944 * * * * 0 Provided as unbundled network elements or other contract arrangement 385 54 14 453 * * 0 * Total Line 304 962 416 19 1,397 * * * * 305 Local private line & special access 748 537 * 1,286 * * * * 306 Payphone compensation from toll carriers 4 4 * 7 64 63 2 129 307 Other local telecommunications service revenues 59 6 0 65 2 * * 2 308 Universal service support revenues received from 49 8 * 57 * * 0 * Federal or state sources Total fixed local service provided for resale 2,086 1,163 22 3,271 67 63 2 132 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll * 3 * 3 * * * * Total mobile service provided for resale * 3 * 3 * * * * Toll service 310 Operator and toll calls with alternative billing 33 1 * 34 1 1 * 2 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 149 111 94 353 * * * * toll-free 8xx service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services 246 581 10 836 * 0 0 * 313 Satellite services * 58 15 74 0 0 0 0 314 All other long distance services 26 31 2 59 2 * * 3 Total toll service provided for resale 454 782 121 1,356 4 1 * 5 315 Total service provided for resale (carrier's carrier) $2,540 $1,947 $143 $4,630 $70 $64 $2 $137 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ ib i Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 19 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) * $0 $0 * $0 $8 $0 $8 0 Provided under other arrangements 1.8 1.4 0 3.3 * 0 0 * Total Line 303 2 1 0 3 * 8 0 9 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 1 * * 1 * * 0 * 0 Provided as unbundled network elements or other contract arrangement 25 12 0 37 1 * * 1 Total Line 304 25 12 * 38 1 * * 1 305 Local private line & special access * * 0 1 0 1 0 1 306 Payphone compensation from toll carriers * * 0 * * * 0 * 307 Other local telecommunications service revenues 1 0 0 1 * 2 0 3 308 Universal service support revenues received from 144 504 1 649 * * 0 * Federal or state sources Total fixed local service provided for resale 173 518 1 692 2 12 * 14 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 3,877 1,151 5 5,034 13 7 * 20 Total mobile service provided for resale 3,877 1,151 5 5,034 13 7 * 20 Toll service 310 Operator and toll calls with alternative billing 1 * 0 1 0 0 0 0 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 270 271 1 542 * * 0 * toll-free 8xx service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services 11 02 00 00 313 Satellite services 00 00 00 00 314 All other long distance services 4 1 0 5 * * 0 1 Total toll service provided for resale 275 273 1 550 * * 0 1 315 Total service provided for resale (carrier's carrier) $4,325 $1,942 $7 $6,275 $15 $19 * $34 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ ib i Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 20 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1/: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs 0 Provided as unbundled network elements (UNEs) $41 $19 $3 $63 $3,346 $489 $5 $3,840 0 Provided under other arrangements 64 15 * 79 916 221 * 1,137 Total Line 303 105 34 3 142 4,262 710 6 4,977 304 Per-minute charges for originating or terminating calls 0 Provided under state or federal access tariff 90 96 9 195 5,738 3,874 17 9,629 0 Provided as unbundled network elements or other contract arrangement 171 28 1 200 1,254 493 15 1,762 Total Line 304 261 124 10 395 6,993 4,368 31 11,392 305 Local private line & special access 93 459 50 603 1,746 12,690 51 14,486 306 Payphone compensation from toll carriers 1 1 * 2 120 120 2 242 307 Other local telecommunications service revenues 69 1 0 70 2,560 715 * 3,276 308 Universal service support revenues received from 41 1 0 42 1,795 3,223 1 5,019 Federal or state sources Total fixed local service provided for resale 570 621 63 1,253 17,475 21,826 91 39,392 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 20 5 0 25 3,997 1,184 6 5,187 Total mobile service provided for resale 20 5 0 25 3,997 1,184 6 5,187 Toll service 310 Operator and toll calls with alternative billing 24 69 25 117 75 71 25 171 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 2,032 3,960 3,786 9,778 2,625 4,344 3,881 10,850 toll-free 8xx service, "10-10 calls", associated monthly account maintenance, PICC pass-through, and other switched services not reported above) 312 Long distance private line services 311 1,895 417 2,623 582 2,490 427 3,498 313 Satellite services 15 65 15 95 16 123 30 169 314 All other long distance services 42 142 156 340 79 176 158 412 Total toll service provided for resale 2,423 6,132 4,398 12,953 3,376 7,204 4,521 15,101 315 Total service provided for resale (carrier's carrier) $3,013 $6,757 $4,462 $14,232 $24,849 $30,214 $4,617 $59,679 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 21 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2006 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: 0 & .3 Traditional Circuit Switched $34,796 $6 $0 $34,802 $6,863 $37 $0 $6,900 0 & .5 Interconnected Voice over Internet Protocol 0 0 0 0 * 2 0 2 405 Tariffed subscriber line charges and PICC charges 174 7,413 0 7,587 62 1,676 * 1,738 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 34,969 7,420 0 42,389 6,925 1,715 * 8,639 406 Local private line and special access service 2,694 4,120 0 6,814 385 620 * 1,005 407 Payphone coin revenues (local and long distance) 180 * 0 180 18 * * 18 408 Other local telecommunications service revenues 343 9 0 352 72 3 * 75 Line 403 surcharges on fixed local service 1/ 188 1,196 0 1,384 33 226 0 259 Total fixed local service provided to end users 38,373 12,745 0 51,118 7,432 2,564 * 9,996 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 204 30 * 234 236 19 0 255 410 Message charges including roaming, but excluding 66 14 0 80 59 5 0 65 toll charges Line 403 surcharges on mobile service 1/ * 4 0 4 * 2 0 2 Total mobile service provided to end users 270 48 * 318 296 26 0 322 Toll service 411 Prepaid calling card (including card sales to 1 * 0 1 * * * 1 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 00 00 00 0 0 foreign points 413 Operator and toll calls with alternative billing 98 1 0 99 8 1 * 9 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 2,336 106 0 2,442 190 44 2 235 toll-free 8xx service, "10-10" calls, associated monthly account maintenance, PICC pass-through, and other switched services not reported above), including long distance charges bundled with local exchange service 415 Long distance private line services 944 * 0 944 74 6 * 81 416 Satellite services 00 00 00 0 0 417 All other long distance services 23 * 0 23 4 9 3 15 Line 403 surcharges on toll service 1/ 5 12 0 17 2 4 * 7 Total toll service provided to end users 3,406 120 0 3,525 277 65 5 347 Total telecommunications and interconnected VoIP $42,049 $12,912 * $54,961 $8,005 $2,655 $5 $10,664 service provided to end users 422 Uncollectible revenue/bad debt expense associated 657 147 * 804 70 16 * 86 with end user revenues other than Line 412 423 Net universal service contribution base revenues $41,393 $12,765 * $54,157 $7,935 $2,639 $5 $10,579 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 22 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECs and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: 0 & .3 Traditional Circuit Switched $6,210 $179 $2 $6,391 * $0 $0 * 0 & .5 Interconnected Voice over Internet Protocol 940 492 66 1,498 $0 0 0 $0 405 Tariffed subscriber line charges and PICC charges 28 962 * 991 0 0 0 0 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 7,178 1,634 69 8,880 * 0 0 * 406 Local private line and special access service 1,230 1,112 2 2,343 1 * * 1 407 Payphone coin revenues (local and long distance) 5 * * 5 196 11 1 207 408 Other local telecommunications service revenues 102 13 * 115 5 * * 6 Line 403 surcharges on fixed local service 1/ 71 274 2 347 * 0 0 * Total fixed local service provided to end users 8,585 3,033 72 11,690 202 11 1 213 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 4 1 * 6 0 0 0 0 410 Message charges including roaming, but excluding * * 0 * 1 * * 1 toll charges Line 403 surcharges on mobile service 1/ * * 0 * 0 0 0 0 Total mobile service provided to end users 5 1 * 6 1 * * 1 Toll service 411 Prepaid calling card (including card sales to 2 2 9 12 * 1 1 2 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 00 33 00 0 0 foreign points 413 Operator and toll calls with alternative billing 23 17 4 44 60 13 * 73 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 900 1,010 219 2,129 * * * * toll-free 8xx service, "10-10" calls, associated monthly account maintenance, PICC pass-through, and other switched services not reported above), including long distance charges bundled with local exchange service 415 Long distance private line services 140 488 61 689 0 0 0 0 416 Satellite services 849 7 64 0 0 0 0 417 All other long distance services 18 17 18 53 8 * 0 9 Line 403 surcharges on toll service 1/ 7 141 7 155 * * 0 * Total toll service provided to end users 1,097 1,724 327 3,147 69 15 1 85 Total telecommunications and interconnected VoIP $9,686 $4,758 $399 $14,843 $271 $25 $2 $299 service provided to end users 422 Uncollectible revenue/bad debt expense associated 227 81 8 317 4 1 * 5 with end user revenues other than Line 412 423 Net universal service contribution base revenues $9,459 $4,676 $389 $14,524 $267 $24 $2 $294 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 23 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: 0 & .3 Traditional Circuit Switched $15 $3 * $19 $12 * $0 $12 0 & .5 Interconnected Voice over Internet Protocol * * $0 * 1 $1 * 2 405 Tariffed subscriber line charges and PICC charges 0 1 0 1 0 1 0 1 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 15 5 * 20 13 2 * 15 406 Local private line and special access service 2 * 0 2 * 4 0 4 407 Payphone coin revenues (local and long distance) * 0 0 * * * 0 * 408 Other local telecommunications service revenues 9 * 0 9 21 2 * 22 Line 403 surcharges on fixed local service 1/ * * 0 1 * * 0 * Total fixed local service provided to end users 26 5 * 32 34 8 * 41 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 69,704 19,859 179 89,743 490 60 1 551 410 Message charges including roaming, but excluding 12,326 3,647 58 16,030 33 9 1 42 toll charges Line 403 surcharges on mobile service 1/ 491 2,318 8 2,818 3 7 * 10 Total mobile service provided to end users 82,521 25,824 246 108,591 526 75 2 603 Toll service 411 Prepaid calling card (including card sales to 5 1 1 8 54 24 0 78 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 00 11 00 8 8 foreign points 413 Operator and toll calls with alternative billing 32 11 * 44 * * * 1 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 963 459 26 1,448 4 2 * 6 toll-free 8xx service, "10-10" calls, associated monthly account maintenance, PICC pass-through, and other switched services not reported above), including long distance charges bundled with local exchange service 415 Long distance private line services 1 * 1 2 * 1 0 1 416 Satellite services * * 0 * 0 1 5 6 417 All other long distance services 282 31 200 513 * * 0 * Line 403 surcharges on toll service 1/ 8 51 * 59 * 3 0 3 Total toll service provided to end users 1,291 554 229 2,074 59 30 14 103 Total telecommunications and interconnected VoIP $83,838 $26,384 $475 $110,696 $619 $113 $16 $747 service provided to end users 422 Uncollectible revenue/bad debt expense associated 1,403 417 8 1,827 6 1 * 7 with end user revenues other than Line 412 423 Net universal service contribution base revenues $82,436 $25,967 $466 $108,869 $613 $112 $7 $733 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 24 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: 0 & .3 Traditional Circuit Switched $3,606 $11 $2 $3,619 $51,501 $237 $4 $51,742 0 & .5 Interconnected Voice over Internet Protocol 18 5 1 24 959 500 67 1,526 405 Tariffed subscriber line charges and PICC charges 2 508 * 510 266 10,562 * 10,827 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 3,626 524 3 4,153 52,726 11,298 72 64,096 406 Local private line and special access service 96 677 19 792 4,407 6,533 21 10,961 407 Payphone coin revenues (local and long distance) 5 1 * 7 404 12 1 417 408 Other local telecommunications service revenues 22 6 2 31 573 33 3 609 Line 403 surcharges on fixed local service 1/ 20 122 * 143 312 1,819 2 2,133 Total fixed local service provided to end users 3,770 1,330 25 5,125 58,422 19,695 98 78,215 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 141 36 1 178 70,779 20,005 181 90,966 410 Message charges including roaming, but excluding 56 12 4 72 12,540 3,687 62 16,289 toll charges Line 403 surcharges on mobile service 1/ 2 5 * 7 497 2,336 9 2,841 Total mobile service provided to end users 198 53 5 256 83,816 26,028 252 110,096 Toll service 411 Prepaid calling card (including card sales to 144 99 2,517 2,759 206 127 2,528 2,861 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 697 697 0 0 708 708 foreign points 413 Operator and toll calls with alternative billing 859 457 253 1,568 1,079 500 258 1,836 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 7,364 13,081 4,015 24,460 11,757 14,702 4,262 30,720 toll-free 8xx service, "10-10" calls, associated monthly account maintenance, PICC pass-through, and other switched services not reported above), including long distance charges bundled with local exchange service 415 Long distance private line services 676 5,941 907 7,524 1,834 6,438 969 9,241 416 Satellite services 30 87 197 314 38 136 209 383 417 All other long distance services 104 347 124 576 439 405 345 1,189 Line 403 surcharges on toll service 1/ 39 1,872 189 2,100 62 2,082 196 2,340 Total toll service provided to end users 9,216 21,883 8,899 39,998 15,415 24,389 9,475 49,278 Total telecommunications and interconnected VoIP $13,184 $23,266 $8,929 $45,379 $157,653 $70,112 $9,825 $237,589 service provided to end users 422 Uncollectible revenue/bad debt expense associated 348 326 97 770 2,713 988 113 3,814 with end user revenues other than Line 412 423 Net universal service contribution base revenues $12,837 $22,941 $8,135 $43,912 $154,939 $69,124 $9,004 $233,067 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 25 Table 1.7 Total Revenues: 2006 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $49,197 $27,805 $0 $77,002 $10,938 $6,900 $3 $17,841 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 230 51 0 280 19 3 * 22 [Lines 306 and 407] Mobile service 332 63 * 395 320 30 * 349 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 3,607 128 0 3,736 296 72 5 372 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications and IVoIP service revenues 53,366 28,047 * 81,413 11,572 7,004 8 18,584 Total telecommunications and IVoIP service provided 11,317 15,135 0 26,452 3,567 4,349 3 7,920 for resale (from Table 5) Total telecommunications and IVoIP service provided to 42,049 12,912 * 54,961 8,005 2,655 5 10,664 end users (from Table 6) Total telecommunications and IVoIP service revenues 53,366 28,047 * 81,413 11,572 7,004 8 18,584 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 0 bundled with circuit switched local exchange service - - - - - - - - - 1,059 - - - - - - - - - 899 0 bundled with interconnected VoIP local exchange service - - - - - - - - - 0 - - - - - - - - - * 0 other - - - - - - - - - $15,027 - - - - - - - - - $2,060 419 Gross billed revenues from all sources - - - - - - - - - $97,498 - - - - - - - - - $21,543 421 Uncollectible revenue/bad debt expense associated $967 $120 with gross billed revenues Total collected revenues from all sources 96,532 $21,423 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 26 Table 1.7 Total Revenues: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECs and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $10,663 $4,192 $94 $14,948 $9 $1 * $10 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 9 4 * 12 260 73 3 336 [Lines 306 and 407] Mobile service 5 4 * 9 1 * * 1 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 1,550 2,505 448 4,504 73 16 1 90 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications and IVoIP service revenues 12,227 6,705 542 19,473 341 90 4 435 Total telecommunications and IVoIP service provided 2,540 1,947 143 4,630 70 64 2 137 for resale (from Table 5) Total telecommunications and IVoIP service provided to 9,686 4,758 399 14,843 271 25 2 299 end users (from Table 6) Total telecommunications and IVoIP service revenues 12,227 6,705 542 19,473 341 90 4 435 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 0 bundled with circuit switched local exchange service - - - - - - - - - 2,689 - - - - - - - - - 0 0 bundled with interconnected VoIP local exchange service - - - - - - - - - 221 - - - - - - - - - 0 0 other - - - - - - - - - $13,935 - - - - - - - - - $457 419 Gross billed revenues from all sources - - - - - - - - - $36,317 - - - - - - - - - $892 421 Uncollectible revenue/bad debt expense associated $476 $10 with gross billed revenues Total collected revenues from all sources 35,842 $882 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 27 Table 1.7 Total Revenues: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $199 $523 $1 $723 $35 $20 * $55 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone * * 0 * * * 0 * [Lines 306 and 407] Mobile service 86,398 26,975 251 113,624 539 82 2 623 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 1,566 827 230 2,624 59 30 14 104 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications and IVoIP service revenues 88,163 28,326 482 116,971 634 132 16 782 Total telecommunications and IVoIP service provided 4,325 1,942 7 6,275 15 19 * 34 for resale (from Table 5) Total telecommunications and IVoIP service provided to 83,838 26,384 475 110,696 619 113 16 747 end users (from Table 6) Total telecommunications and IVoIP service revenues 88,163 28,326 482 116,971 634 132 16 782 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 0 bundled with circuit switched local exchange service - - - - - - - - - 2 - - - - - - - - - * 0 bundled with interconnected VoIP local exchange service - - - - - - - - - 0 - - - - - - - - - * 0 other - - - - - - - - - $34,426 - - - - - - - - - $1,997 419 Gross billed revenues from all sources - - - - - - - - - $151,399 - - - - - - - - - $2,779 421 Uncollectible revenue/bad debt expense associated $2,280 $10 with gross billed revenues Total collected revenues from all sources 149,119 $2,769 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 28 Table 1.7 Total Revenues: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service other than payphone $4,333 $1,949 $88 $6,370 $75,374 $41,389 $185 $116,948 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 6 2 * 9 524 133 3 659 [Lines 306 and 407] Mobile service 218 59 5 281 87,813 27,212 258 115,283 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 11,640 28,014 13,297 52,951 18,791 31,593 13,995 64,379 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications and IVoIP service revenues 16,197 30,024 13,390 59,611 182,501 100,326 14,441 297,268 Total telecommunications and IVoIP service provided 3,013 6,757 4,462 14,232 24,849 30,214 4,617 59,679 for resale (from Table 5) Total telecommunications and IVoIP service provided to 13,184 23,266 8,929 45,379 157,653 70,112 9,825 237,589 end users (from Table 6) Total telecommunications and IVoIP service revenues 16,197 30,024 13,390 59,611 182,501 100,326 14,441 297,268 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues 0 bundled with circuit switched local exchange service - - - - - - - - - 1,106 - - - - - - - - - 5,755 0 bundled with interconnected VoIP local exchange service - - - - - - - - - 17 - - - - - - - - - 238 0 other - - - - - - - - - $27,167 - - - - - - - - - $95,068 419 Gross billed revenues from all sources - - - - - - - - - $87,901 - - - - - - - - - $398,329 421 Uncollectible revenue/bad debt expense associated $1,018 $4,880 with gross billed revenues Total collected revenues from all sources 86,883 $393,449 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 29 Table 1.8 Revenues by Type of Carrier 1/: 2006 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Telecommunications and Telecommunications and Interconnected VoIP Service Interconnected VoIP Service Provided for Resale 2/ Provided to End Users 2/ Fixed Mobile Toll Total Fixed Mobile Toll Total Local Local Regional Bell Operating Companies $26,164 $77 $210 $26,452 $51,118 $318 $3,525 $54,961 Other Incumbent Local Exchange Carriers (LECs) 7,867 27 26 7,920 9,996 322 347 10,664 Total Incumbent LECs 34,031 105 236 34,372 61,114 640 3,872 65,625 Competitive Access Providers (CAPs) and Competitiv 3,025 1 871 3,897 10,744 3 2,633 13,379 Local Exchange Carriers (CLECs) Local Resellers 74 0 2 76 291 2 91 384 Private Service Providers 100 2 441 543 146 1 389 537 Shared-Tenant Service Providers 4 0 * 4 11 * 4 15 Interconnected VoIP Providers 10 1 11 21 469 0 24 493 Other Local Service Providers 58 0 31 89 29 * 6 35 Total Local Competitors 3,271 3 1,356 4,630 11,690 6 3,147 14,843 Fixed Local Service Providers 37,301 108 1,592 39,002 72,804 646 7,019 80,468 Wireless Telephony Including Cellular, Personal 691 5,033 550 6,275 32 108,591 2,074 110,696 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 9 14 * 24 2 526 3 532 Specialized Mobile Radio (SMR) Dispatch * * * 1 1 46 1 47 Wireless Data and Other Mobile Service Providers 4 5 * 10 38 31 99 168 Wireless Service Providers 705 5,053 550 6,309 73 109,194 2,177 111,443 Interexchange Carriers (IXCs) 1,111 1 9,950 11,062 4,658 164 28,198 33,021 Operator Service Providers (OSPs) * 9 73 83 1 0 547 548 Prepaid Calling Card Providers 1 * 142 143 1 25 1,544 1,570 Satellite Service Providers * 4 95 100 0 15 329 344 Toll Resellers 67 12 1,595 1,673 378 47 7,845 8,270 Other Toll Carriers 74 * 1,098 1,172 87 5 1,534 1,626 All Filers $39,392 $5,187 $15,101 $59,679 $78,215 $110,096 $49,278 $237,589 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ 2/ Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as All Distance or Coaxial Cable Service Providers have been re-categorized for the purpose of creating summary statistics Telecommunications service provided for resale consists of services provided to other contributors to federal universal service support mechanisms for resale. Revenues from services provided to firms that are de minimis under or exempt from federal universal service support mechanisms are reported as end-user service and are subject to contribution requirements. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). 1 - 30 Table 1.8 Revenues by Type of Carrier 1/: 2006 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Telecommunications and Interconnected Universal VoIP Service Revenues Other Total Service Revenues Billed Contribution Intrastate Interstate International Other Total 4/ Revenues Base Revenues to International 2/ 3/ International Regional Bell Operating Companies $12,765 $53,366 $28,046 $0 * $81,413 $16,086 $97,498 Other Incumbent Local Exchange Carriers (ILECs) 2,643 11,572 7,004 0 8 18,584 2,959 21,543 Total ILECs 15,408 64,939 35,050 0 8 99,997 19,044 119,041 Competitive Access Providers (CAPs) and Competit 4,355 11,200 5,755 * 321 17,276 6,700 23,976 Local Exchange Carriers (CLECs) Local Resellers 82 344 97 * 19 460 217 676 Private Service Providers 358 334 637 2 107 1,080 7,566 8,647 Shared-Tenant Service Providers 3 13 5 0 1 19 263 282 Shared-Tenant Service Providers 247 250 175 * 89 514 1,758 2,272 Other Local Service Providers 20 84 38 0 2 124 340 464 Total Local Competitors 5,065 12,224 6,707 3 539 19,473 16,844 36,317 Fixed Local Service Providers 20,473 77,163 41,757 3 547 119,470 35,889 155,359 Wireless Telephony Including Cellular, Personal 26,433 88,163 28,327 1 481 116,971 34,428 151,399 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 65 479 76 * * 555 293 849 Specialized Mobile Radio (SMR) Dispatch 2 46 2 0 * 48 275 324 Wireless Data and Other Mobile Service Providers 53 100 62 8 7 178 1,429 1,607 Wireless Service Providers 26,553 88,788 28,467 9 489 117,752 36,425 154,178 Interexchange Carriers (IXCs) 22,229 11,929 25,061 595 6,498 44,083 22,549 66,631 Operator Service Providers (OSPs) 130 419 202 3 8 631 239 870 Prepaid Calling Card Providers 1,487 60 40 5 1,608 1,713 391 2,104 Satellite Service Providers 273 21 191 33 199 444 2,184 2,628 Toll Resellers 5,487 2,813 5,014 47 2,069 9,943 2,228 12,171 Other Toll Carriers 1,470 258 213 15 2,312 2,798 698 3,496 All Filers $78,128 $181,792 $101,035 $708 $13,733 $297,268 $101,061 $398,329 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ 2/ 3/ 4/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008). Carriers report non-telecommunications service revenues on Line 418. This category includes enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet, foreign carrier and other non-U.S. telecommunications service revenues. Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as All Distance or Coaxial Cable Service Providers have been re-categorized for the purpose of creating summary statistics Telecommunications service provided for resale consists of services provided to other contributors to federal universal service support mechanisms for resale. Revenues from services provided to firms that are de minimis under or exempt from federal universal service support mechanisms are reported as end-user service and are subject to contribution requirements. Universal service contribution base revenues consist of all interstate and international end-user telecommunications revenues except for international-to-international revenues reported on Line 412. The totals include revenues from filers who are de minimis or otherwise exempt from contributing. This table also includes international revenues that were exempt from contribution because of the 12 percent rule. See Table 1.4 for details on exempt amounts. Contribution base amounts reported as uncollectible on Line 422 have been removed. 1 - 31 Data from FCC Form 499-Q Projected Revenues for 2007 1/ Regional Bell Operating Companies $10,516 $10,408 1.1 % $26,288 $50,993 $77,281 $10,509 Other Incumbent Local Exchange 2,382 2,336 1.6 7,787 10,124 17,910 2,359 Carriers (ILECs) Total ILECs 12,899 12,744 1.2 34,074 61,117 95,191 12,867 Competitive Access Providers 4,323 4,213 2.2 4,090 13,815 17,905 4,064 (CAPs) and Competitive Local Exchange Carriers (CLECs) Local Resellers 66 63 4.2 77 384 461 85 Private Service Providers 370 368 1.7 887 565 1,452 390 Shared-Tenant Service Providers 4 3 10.2 2 14 1,664 4 Interconnected VoIP 4/ 890 851 0.7 154 1,887 2,041 833 Other Local Service Providers 25 24 15.5 282 48 330 21 Total Local Competitors 5,678 5,522 2.4 5,493 16,713 22,206 5,396 Fixed Local Service Providers 18,577 18,266 1.5 39,567 77,830 117,397 18,264 Payphone Service Providers 29 29 1.3 135 284 418 27 Wireless Telephony Including Cellular, 30,162 29,550 1.8 6,735 116,602 123,337 29,959 Personal Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 63 59 7.0 45 518 562 64 Specialized Mobile Radio (SMR) Dispatch 24 23 2.1 5 124 130 14 Wireless Data and Other Mobile Service 57 55 0.9 14 149 163 45 Providers Wireless Service Providers 30,307 29,688 1.8 6,799 117,393 124,192 30,083 Interexchange Carriers (IXCs) 20,842 20,543 1.6 11,124 29,755 40,879 21,706 Operator Service Providers (OSPs) 162 141 16.5 79 558 637 156 Prepaid Calling Card Providers 1,670 1,639 3.0 210 1,700 1,910 1,632 Satellite Service Providers 237 236 1.5 130 351 481 173 Toll Resellers 6,599 6,370 3.7 1,756 8,825 10,580 6,064 Other Toll Carriers 462 454 4.0 1,717 967 2,684 830 Toll Service Providers 29,972 29,384 2.3 15,016 42,155 57,171 30,559 All Filers $78,884 $77,367 4/ 1.9 % $61,518 $237,661 $299,179 $78,933 See notes on next page. Intrastate, interstate and International Historic Revenues Reported for 2007 1/ Billed to Resellers 2/ Implied Uncollectible Rate 3/ Interstate and International Billed to End Users 2/ Total Revenue 2/ Billed to End Users 2/ Interstate and International ($millions) Billed to End Users 2/ Collected from End Users 2/ 3/ ($millions) ($millions) Table 1.9 Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2007 (Dollar Amounts Shown in Millions) ($millions) ($millions) ($millions) 1 - 32 Notes for Table 1.9 1/ 2/ 3/ 4/ 5/ ($millions) First Quarter $18,549.1 Second Quarter $18,013.6 Third Quarter $18,566.5 Fourth Quarter $18,949.2 Total Projected Collected $74,078.4 Data filed on FCC Forms 499-Q and 499-A Worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (August 2008) available at http://www.fcc.gov/wcb/stats. Interconnected Voice over Internet Protocol (Interconnected VoIP) providers were required to file FCC Form 499Q worksheets starting August 1, 2006, but were not required to include historic data until the February 2, 2007 filing. Note: Amounts may not add to totals due to rounding. Each quarter, telecommunications providers that are required to contribute to universal service support mechanisms must to file an FCC Form 499-Q. The FCC Form 499-Q collects total, interstate and international billed revenues for the most recently completed calendar quarter (historic revenues) and also collects projected interstate and international -- but not total -- revenues for the upcomming calendar quarter (projected revenues.) Some telecommunications providers file the form even though they are not required to contribute. USAC estimates revenues for most non-filers. Filers contribute based on the interstate and international telecommunications revenues that they collect from end-users. On the FCC Form 499-Q, filers project the amount of contribution base they expect to bill in the upcomming quarter and then project the amount of contribution base revenues that they expect to collect. The difference between projected billed revenues and projected collected revenues is amount of revenue that the filer expects to be uncollectible (the implied uncollectible rate). Filers contribute in a quarter based on the end user revenues that they project collecting in that quarter. Filers report actual billings and uncollectibles in their April 1 FCC Form 499-A filings. This information is used to true-up contributions, and provides more accurate information on billings and collections for the year. FCC Form 499-A data for 2007 is not yet available for publication. The FCC Form 499-Q collects historic revenues divided into three categories: telecommunications service provided for resale (carrier's carrier); telecommunications service provided to end-users (end user); and other revenues. Telecommunications providers that contribute directly to federal universal service support mechanisms are referred to as "contributors". Telecommunications provided for resale refers to contributors provided to contributors for resale as. Underlying carriers do not contribute based on these revenues. Revenues from services provided to firms that are de minimis or otherwise exempt from federal universal service support mechanisms are reported as end-user service. The other revenue filing category consists of international-to-international revenues and revenues from goods and services that are not classified as U.S. telecommunications. International-to-international service refers to calls that originate in a foreign point, traverse the United States, and terminate in a foreign point. These revenues, which are exempt from universal service contribution, are reported in a separate end-user telecommunications revenue category in the FCC Form 499-A. These revenues are included in telecommunications relay service, local number portability and number administration contribution bases. Sources: The amounts actually used to calculate contribution factors in 2007 are shown below. These amounts total less than the total projected collected revenues shown in the table. One reason is that amounts in the table reflect all amounts shown in the FCC Form 499-Q data base, including estimated amounts for non-filers and amounts reported by filers that are de minimis or do not contribute because they provide only international services. In addition, filers are not required to contribute on international revenues if their interstate end-user revenues represent less than 12% of their combined interstate and international end-user revenues -- a test referred to as the "12%" rule. In addition, the totals shown above include estimated amounts for some carriers. Finally, some difference may be explained by late filings and corrections made to the data base after the Commission calculated contribution factors. Contribution bases used to calculate Factors in Calendar 2007 1 - 33 Universal Service Program Requirements and Contribution Factors for 2007 (Dollar Amounts Shown in Millions) First Second Third Fourth Full Quarter Quarter Quarter Quarter Year All Support Mechanisms Projections of demand and administrative expenses at the time the contribution factors were adopted High Cost High-Cost Loop Support $354.150 $364.112 $372.220 $372.180 $1,462.662 Local Switching Support $122.527 $123.551 $126.710 $126.790 $499.578 Interstate Common Line Support $322.713 $330.271 $385.810 $382.540 $1,421.334 Interstate Access Support Mechanism $180.087 $181.671 $177.310 $172.120 $711.188 Forward-Looking High Cost Mechanism $86.616 $86.902 $86.780 $86.780 $347.078 Prior Period True-ups -$104.433 $13.680 $27.910 -$38.180 -$101.023 Administrative expenses $7.928 $9.252 $6.150 $3.240 $26.570 Interest income 1 -$8.975 -$6.048 -$4.510 -$3.870 -$23.403 Program Total $960.613 $1,103.391 $1,178.380 $1,101.600 $4,343.984 Low Income Lifeline Assistance $192.318 $185.937 $191.790 $202.410 $772.455 Link-Up $9.006 $8.750 $7.400 $8.030 $33.186 Incremental Toll Limitation $2.333 $2.273 $2.440 $2.580 $9.626 Prior Period true-ups -$33.901 $2.734 -$24.820 $9.780 -$46.207 Administrative expenses $2.407 $2.488 $1.660 $1.320 $7.875 Interest income 1 -$3.592 -$2.798 -$2.700 -$2.420 -$11.510 Program Total $168.571 $199.384 $175.770 $221.700 $765.425 Rural Health Rural Health Care Support $39.440 $40.796 $25.140 $25.170 $130.546 Prior Period True-ups -$2.919 -$0.029 $13.990 $3.000 $14.042 Administrative expenses $1.874 $2.209 $1.550 $1.110 $6.743 Interest income 1 -$0.729 -$0.643 -$0.740 -$1.180 -$3.292 Program Total $37.666 $42.333 $39.940 $28.100 $148.039 Schools and Libraries Schools and Libraries Support $562.500 $562.500 $562.500 $562.500 $2,250.000 Prior Period True-ups 2 -$70.037 -$3.883 -$35.730 -$5.430 -$115.080 Administrative expenses $21.565 $23.348 $18.710 $16.180 $79.803 Interest income 1 -$37.527 -$47.395 -$53.420 -$51.880 -$190.222 Program Total $476.501 $534.570 $492.060 $521.370 $2,024.501 Grand Total $1,643.351 $1,879.678 $1,886.150 $1,872.770 $7,281.949 Applicable interstate and international end-user revenues Reported contribution base revenues $18,549.119 $18,013.566 $18,566.483 $18,949.188 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,621.786 -$1,856.330 -$1,867.440 -$1,856.590 Subtotal $16,927.333 $16,157.236 $16,699.043 $17,092.598 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $16,758.060 $15,995.664 $16,532.053 $16,921.672 Contribution factor 9.7% 11.7% 11.3% 11.0% Contribution factor times contribution base $1,625.532 $1,871.493 $1,868.122 $1,861.384 Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2008/ 1 Interest income is shown as negative because it is subtracted from expenses to yield the total. 2 For the schools and libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods. Table 1.10 1 - 34 Universal Service Program Requirements and Contribution Factors for 2008 (Dollar Amounts Shown in Millions) First Second Third Fourth Full Quarter Quarter Quarter Quarter Year All Support Mechanisms Projections of demand and administrative expenses at the time the contribution factors were adopted High Cost High Cost Loop Support $372.620 $380.340 $376.740 Local Switching Support $117.050 $118.770 $118.730 Interstate Common Line Support $395.130 $390.270 $411.630 Interstate Access Support Mechanism $168.760 $171.640 $172.190 Forward-Looking High Cost Mechanism $87.870 $87.140 $88.190 Prior Period True-ups -$139.520 -$32.700 -$55.600 Administrative expenses $6.800 $16.830 $15.980 Interest income 1 -$5.470 -$4.910 -$2.090 Transfer to FCC in accordance with Public Law 110-161 $6.300 Program Total $1,003.240 $1,127.380 $1,125.770 Low Income Lifeline Assistance $200.410 $197.690 $191.670 Link-Up $7.510 $8.310 $9.060 Incremental Toll Limitation $2.060 $2.080 $1.850 Prior Period true-ups -$3.100 -$9.010 -$3.910 Administrative expenses $2.460 $1.060 $0.750 Interest income 1 -$2.200 -$1.710 -$0.900 Transfer to FCC in accordance with Public Law 110-161 $1.150 Program Total $207.140 $198.420 $198.520 Rural Health Rural Health Care Support $25.000 $61.180 $49.640 Prior Period True-ups -$3.830 -$2.580 -$0.180 Administrative expenses $1.900 $2.060 $2.260 Interest income 1 -$1.790 -$1.720 -$0.890 Transfer to FCC in accordance with Public Law 110-161 $0.190 Program Total $21.280 $58.940 $50.830 Schools & Libraries Schools and Libraries Support $562.500 $562.500 $562.500 Prior Period True-ups 2 -$0.950 $2.570 -$6.280 Administrative expenses $26.870 $29.970 $33.710 Interest income 1 -$47.650 -$42.360 -$23.820 Transfer to FCC in accordance with Public Law 110-161 $3.100 Program Total $540.770 $552.680 $566.110 Grand Total $1,772.430 $1,937.420 $1,941.230 Applicable interstate and international end-user revenues Reported contribution base revenues $19,193.841 $18,977.952 $19,039.353 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,745.560 -$1,907.450 -$1,918.260 Subtotal $17,448.281 $17,070.502 $17,121.093 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $17,273.798 $16,899.797 $16,949.882 Contribution factor 10.2% 11.3% 11.4% Contribution factor times contribution base $1,761.927 $1,909.677 $1,932.287 Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2008/ 1 Interest income is shown as negative because it is subtracted from expenses to yield the total. 2 For the schools & libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods. Table 1.10 1 - 35 Mechanism Percent of Total Percent of Total High-Cost Support $4,096 61.8 % $4,287 61.6 % High-Cost Loop Support 1,309 19.8 1,402 20.2 Safety Net Additive Support 29 0.4 38 0.6 Safety-Valve 1 0.0 3 0.0 High-Cost Model Support 358 5.4 346 5.0 Long Term Support 4 0.1 0 0.0 Interstate Common Line Support 1,266 19.1 1,392 20.0 Interstate Access Support 681 10.3 645 9.3 Local Switching Support 448 6.8 460 6.6 Low-Income Support 820 12.4 823 11.8 School and Libraries 1,669 25.2 1,808 26.0 Rural Health Care 41 0.6 37 0.5 All Universal Service Support $6,626 100.0 % $6,955 100.0 % Disbursements Distribution of Universal Service Payments: 2007 Chart 1.1 Table 1.11 Universal Service Support Mechanisms: 2006 & 2007 (Dollars in Millions) Source: Universal Service Administration Company (USAC). Disbursements 2006 2007 Notes: Figures may not add due to rounding. The figures used in this table are for the calendar year and include disbursements that were committed over several years but paid out in the respective calendar year (2006 or 2007). In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. Low Income 11.8% High Cost 61.6% Rural Health Care 0.5% Schools & Libraries 26.0% 1 - 36 (Annual Payments and Contributions in Thousands) Payments from USF to Service Providers 1 State or Jurisdiction High-Cost Support Low-Income Support Schools & Libraries Rural Health Care Amount % of Total Amount % of Total Alabama $111,459 $6,524 $39,411 $24 $157,418 2.26% $106,499 1.51% $50,919 Alaska 161,356 17,305 14,135 19,875 212,671 3.06% 23,008 0.33% 189,663 American Samoa 3,370 59 0 0 3,429 0.05% 356 0.01% 3,073 Arizona 70,919 22,278 48,115 1,196 142,508 2.05% 139,264 1.97% 3,244 Arkansas 126,294 2,950 8,274 41 137,559 1.98% 64,558 0.91% 73,001 California 100,638 272,482 256,555 282 629,957 9.06% 774,218 10.97% -144,261 Colorado 82,051 3,310 22,627 108 108,096 1.55% 128,698 1.82% -20,602 Connecticut 1,264 4,645 19,405 0 25,314 0.36% 96,243 1.36% -70,929 Delaware 245 230 740 0 1,215 0.02% 25,498 0.36% -24,283 Dist. of Columbia 0 670 521 0 1,191 0.02% 33,588 0.48% -32,397 Florida 82,308 20,912 79,955 207 183,382 2.64% 481,258 6.82% -297,876 Georgia 112,636 9,375 63,973 718 186,702 2.68% 225,836 3.20% -39,134 Guam 10,792 298 -44 0 11,046 0.16% 4,789 0.07% 6,257 Hawaii 51,864 574 2,282 182 54,902 0.79% 30,589 0.43% 24,313 Idaho 54,069 3,795 3,722 142 61,728 0.89% 35,537 0.50% 26,191 Illinois 67,267 10,414 73,681 447 151,809 2.18% 281,700 3.99% -129,891 Indiana 71,734 5,705 21,279 275 98,993 1.42% 133,714 1.89% -34,721 Iowa 126,109 6,033 9,911 412 142,465 2.05% 71,784 1.02% 70,681 Kansas 222,477 3,038 14,859 649 241,023 3.47% 64,030 0.91% 176,993 Kentucky 96,931 8,262 22,823 207 128,223 1.84% 90,313 1.28% 37,910 Louisiana 163,131 3,711 65,075 594 232,511 3.34% 100,521 1.42% 131,990 Maine 36,567 8,337 6,097 23 51,024 0.73% 31,389 0.44% 19,635 Maryland 4,207 628 9,000 0 13,835 0.20% 158,323 2.24% -144,488 Massachusetts 2,299 11,933 25,140 52 39,424 0.57% 168,735 2.39% -129,311 Michigan 67,241 15,385 44,793 593 128,012 1.84% 200,506 2.84% -72,494 Minnesota 132,444 7,629 20,792 1,457 162,322 2.33% 114,208 1.62% 48,114 Mississippi 283,404 5,147 29,939 206 318,696 4.58% 63,150 0.89% 255,546 Missouri 98,235 7,416 26,894 144 132,689 1.91% 136,864 1.94% -4,175 Montana 77,282 4,355 3,455 555 85,647 1.23% 24,017 0.34% 61,630 Nebraska 106,178 2,509 7,758 1,460 117,905 1.70% 40,073 0.57% 77,832 Nevada 29,634 3,102 5,253 62 38,051 0.55% 69,851 0.99% -31,800 New Hampshire 9,365 580 1,472 7 11,424 0.16% 35,860 0.51% -24,436 New Jersey 1,664 13,428 41,999 0 57,091 0.82% 240,613 3.41% -183,522 New Mexico 67,388 14,864 29,521 350 112,123 1.61% 47,987 0.68% 64,136 New York 52,542 36,209 160,032 55 248,838 3.58% 445,600 6.31% -196,762 North Carolina 77,872 13,973 51,277 189 143,311 2.06% 210,160 2.98% -66,849 North Dakota 84,771 4,092 5,217 508 94,588 1.36% 15,498 0.22% 79,090 Northern Mariana Is. 1,630 116 868 0 2,614 0.04% 1,047 0.01% 1,567 Ohio 46,205 32,188 64,777 60 143,230 2.06% 242,186 3.43% -98,956 Oklahoma 129,185 49,976 44,305 205 223,671 3.22% 77,565 1.10% 146,106 Oregon 80,970 5,705 11,102 68 97,845 1.41% 85,714 1.21% 12,131 Pennsylvania 55,552 15,944 57,382 74 128,952 1.85% 293,667 4.16% -164,715 Puerto Rico 135,026 16,888 9,287 0 161,201 2.32% 62,900 0.89% 98,301 Rhode Island 31 4,076 6,138 0 10,245 0.15% 23,489 0.33% -13,244 South Carolina 74,186 3,685 38,874 47 116,792 1.68% 102,110 1.45% 14,682 South Dakota 93,098 6,876 5,803 1,101 106,878 1.54% 18,397 0.26% 88,481 Tennessee 52,295 8,829 40,561 101 101,786 1.46% 143,843 2.04% -42,057 Texas 245,735 89,411 184,370 940 520,456 7.48% 485,236 6.87% 35,220 Utah 24,454 3,733 14,100 770 43,057 0.62% 54,675 0.77% -11,618 Vermont 31,408 3,081 1,453 130 36,072 0.52% 17,837 0.25% 18,235 Virgin Islands 25,685 29 6,335 54 32,103 0.46% 8,895 0.13% 23,208 Virginia 79,549 2,304 29,748 527 112,128 1.61% 201,062 2.85% -88,934 Washington 97,505 16,062 20,324 53 133,944 1.93% 147,065 2.08% -13,121 West Virginia 63,345 733 8,898 159 73,135 1.05% 44,778 0.63% 28,357 Wisconsin 141,853 10,096 20,042 1,900 173,891 2.50% 118,069 1.67% 55,822 Wyoming 61,014 873 7,656 172 69,715 1.00% 15,541 0.22% 54,174 Total $4,286,733 $822,762 $1,807,961 $37,381 $6,954,837 100.00% $7,058,910 100.00% -$104,073 2 Estimated contributions include administrative cost of approximately $104 million, as shown in USAC's Annual Report. Allocation of contributions among states is an FCC staff estimate. 3 Net dollar flow is positive when payments from USF to carriers exceed contributions to USF. Total is negative because of administrative expenses. 1 Data from USAC's Annual Report. Table 1.12 Universal Service Support Mechanisms by State: 2007 Estimated Net Dollar Flow 3 Notes: Figures may not add due to rounding. Support payments do not include quarterly true-ups. USF is an abbreviation for the Universal Service Fund. Estimated Contributions 2 Total 1 - 37 Table 1.13 Total Telecommunications Revenues: 2006 (Dollars in Millions) End User Carrier's Carrier Total: End User + Carrier's Carrier Percent Interstate Intrastate Total Interstate Intrastate Total Interstate Intrastate Total of Total Alabama $1,206 $2,507 $3,713 $487 $379 $867 $1,693 $2,887 $4,580 1.54 % Alaska 261 397 658 114 63 176 374 460 834 0.28 American Samoa 4 12 16 2 2 4 6 13 19 0.01 Arizona 1,577 2,719 4,296 675 397 1,071 2,252 3,116 5,367 1.81 Arkansas 731 1,443 2,174 335 225 560 1,066 1,668 2,734 0.92 California 8,767 18,904 27,672 3,792 3,208 7,000 12,560 22,112 34,672 11.66 Colorado 1,457 2,519 3,976 710 385 1,095 2,167 2,904 5,071 1.71 Connecticut 1,090 1,904 2,994 494 221 716 1,584 2,125 3,709 1.25 Delaware 289 448 737 131 55 186 420 503 923 0.31 Dist. of Columbia 380 663 1,043 213 84 297 593 747 1,340 0.45 Florida 5,450 10,139 15,588 2,178 1,589 3,767 7,628 11,727 19,355 6.51 Georgia 2,557 5,081 7,639 1,141 727 1,867 3,698 5,808 9,506 3.20 Guam 54 67 121 24 11 34 78 78 156 0.05 Hawaii 346 605 951 144 89 233 490 694 1,184 0.40 Idaho 402 626 1,028 192 101 293 595 727 1,322 0.44 Illinois 3,190 6,396 9,586 1,276 923 2,199 4,466 7,319 11,785 3.96 Indiana 1,514 2,863 4,377 617 451 1,068 2,131 3,315 5,446 1.83 Iowa 813 1,358 2,170 367 263 630 1,180 1,620 2,801 0.94 Kansas 725 1,355 2,080 337 185 522 1,062 1,540 2,602 0.88 Kentucky 1,023 2,066 3,089 417 336 753 1,440 2,402 3,842 1.29 Louisiana 1,138 2,482 3,620 422 361 783 1,561 2,843 4,403 1.48 Maine 355 738 1,093 174 106 281 530 844 1,374 0.46 Maryland 1,793 3,204 4,997 805 444 1,248 2,597 3,647 6,245 2.10 Massachusetts 1,911 3,794 5,705 909 497 1,407 2,820 4,292 7,112 2.39 Michigan 2,271 4,917 7,188 907 829 1,737 3,178 5,747 8,925 3.00 Minnesota 1,293 2,447 3,740 597 374 970 1,890 2,821 4,711 1.58 Mississippi 715 1,581 2,296 291 228 519 1,006 1,809 2,815 0.95 Missouri 1,550 2,979 4,529 680 600 1,280 2,230 3,579 5,808 1.95 Montana 272 440 712 121 87 209 393 528 921 0.31 Nebraska 454 894 1,348 228 170 398 682 1,064 1,746 0.59 Nevada 791 1,216 2,007 333 157 489 1,124 1,373 2,496 0.84 New Hampshire 406 716 1,123 183 112 295 589 829 1,418 0.48 New Jersey 2,725 4,882 7,606 1,239 708 1,948 3,964 5,590 9,554 3.21 New Mexico 543 867 1,411 255 157 412 799 1,024 1,823 0.61 New York 5,046 11,297 16,344 2,271 1,816 4,088 7,317 13,114 20,431 6.87 North Carolina 2,380 4,466 6,846 962 697 1,659 3,342 5,163 8,505 2.86 North Dakota 176 330 506 89 59 149 265 389 654 0.22 N. Mariana Islands 12 22 34 5 4 9 17 26 43 0.01 Ohio 2,743 5,766 8,508 1,157 967 2,124 3,899 6,733 10,632 3.58 Oklahoma 878 1,703 2,581 416 244 659 1,294 1,946 3,240 1.09 Oregon 971 1,688 2,658 443 265 707 1,413 1,953 3,366 1.13 Pennsylvania 3,326 6,191 9,517 1,482 1,036 2,518 4,808 7,227 12,035 4.05 Puerto Rico 712 1,529 2,241 273 183 456 986 1,712 2,698 0.91 Rhode Island 266 562 828 107 77 184 373 639 1,012 0.34 South Carolina 1,156 2,294 3,451 460 365 825 1,617 2,659 4,276 1.44 South Dakota 208 366 574 94 74 168 302 440 743 0.25 Tennessee 1,629 3,322 4,951 612 432 1,044 2,241 3,754 5,995 2.02 Texas 5,495 12,653 18,148 2,530 2,140 4,670 8,025 14,793 22,817 7.68 Utah 619 1,087 1,706 289 165 454 908 1,252 2,160 0.73 Vermont 202 324 526 95 49 144 297 373 670 0.23 Virgin Islands 101 73 174 44 12 55 145 85 229 0.08 Virginia 2,277 3,960 6,237 1,079 615 1,694 3,356 4,575 7,931 2.67 Washington 1,665 3,028 4,694 750 511 1,261 2,415 3,539 5,955 2.00 West Virginia 507 849 1,356 230 142 372 737 991 1,728 0.58 Wisconsin 1,337 2,646 3,983 562 429 991 1,899 3,075 4,974 1.67 Wyoming 176 267 443 90 43 133 266 310 576 0.19 Total $79,937 $157,653 $237,589 $34,831 $24,848 $59,679 $114,768 $182,501 $297,268 100.00 % Note: Figures may not add due to rounding. 1 - 38 Table 1.14 2006 Telecommunications Revenues (In Millions of Dollars) Incumbent Subcriber Local Exchange Mobile Line Services 1/ Wireless Charges 2/ Access 3/ Toll 4/ Total End-User Revenues Intrastate $49,837 $9,686 $83,811 $0 $0 $14,318 $157,653 Interstate 103 5,157 26,279 11,145 5,440 31,814 79,937 Intrastate + Interstate 49,940 14,843 110,090 11,145 5,440 46,131 237,589 Carriers' Carrier Revenues Intrastate 9,357 2,540 3,997 0 6,031 2,923 24,848 Interstate 4,566 2,090 1,187 0 16,167 10,821 34,831 Intrastate + Interstate 13,923 4,630 5,184 0 22,198 13,744 59,679 Total Revenues Intrastate 59,194 12,227 87,808 0 6,031 17,241 182,501 Interstate 4,669 7,246 27,466 11,145 21,607 42,635 114,768 Intrastate + Interstate 63,863 19,473 115,274 11,145 27,638 59,875 297,268 1/ Excludes subscriber line charges. 2/ Intrastate subscriber line charges are included under access. 3/ Interstate access includes switched access, special access and local private line. 4/ Intrastate toll includes both incumbent local exchange carrier (LEC) toll and non-ILEC toll. Notes: Interstate revenues include both interstate and international revenues. CLECs End-user revenues are from Table 1.6. CLEC revenues include telecommunication revenues provided to end users by CLECs (including local exchange service, mobile wireless, subscriber line charge, access and toll revenues). Revenues in the other categories (incumbent local exchange service, mobile wireless, subscriber line charge, access and toll) include revenues from all filers other than CLECs. Intrastate incumbent local exchange service revenues include fixed local service revenues provided to end users. Interstate incumbent local exchange revenues include interstate revenues from Form 499- A, Telecommunications Reporting Worksheets, lines 404, 407 and 408. Mobile wireless revenues include mobile wireless revenues provided to end users. Subscriber line charge revenues include revenues from line 405 and 428. Toll revenues include toll service revenues provided to end users. Carrier's carrier revenues are from Table 1.5. CLEC revenues include telecommunications revenues provided for resale by CLECs (including local exchange service, mobile wireless, access and toll). Revenues in the other categories (incumbent local exchange service, mobile wireless, access and toll) include revenues for all filers other than CLECs. Intrastate Incumbent local exchange service revenues include revenues from lines 303, 305, 306, 307 and 308. Interstate incumbent local exchange service revenues include revenues from lines 303, 306, 307 and 308. Mobile wireless revenues include mobile service revenues provided for resale. Intrastate access revenues include revenues in line 304. Interstate access revenues include revenues in lines 304 and 305. Toll revenues include toll service revenues for resale. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues: 2006 (August 2008). 1 - 39 Table 1.15 Intrastate Telecommunications Revenues: 2006 Total: End User + Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $1,103 $149 $1,322 70 $34 $208 $2,887 Alaska NA NA NA NA NA NA 460 American Samoa NA NA NA NA NA NA 13 Arizona 820 396 1,676 80 5 139 3,116 Arkansas 583 66 776 61 75 106 1,668 California 6,174 1,185 11,095 1,023 443 2,192 22,112 Colorado 1,070 216 1,383 76 6 153 2,904 Connecticut 799 107 1,042 22 140 15 2,125 Delaware 171 41 262 4 10 14 503 District of Columbia 328 59 355 3 0 2 747 Florida 3,986 661 5,720 387 140 834 11,727 Georgia 2,219 371 2,770 112 44 291 5,808 Guam NA NA NA NA NA NA 78 Hawaii 211 25 408 29 5 17 694 Idaho 256 33 364 28 3 43 727 Illinois 2,301 465 3,691 216 272 373 7,319 Indiana 1,147 138 1,603 118 66 243 3,315 Iowa 527 94 753 95 5 147 1,620 Kansas 511 142 769 23 14 82 1,540 Kentucky 857 138 1,138 85 15 169 2,402 Louisiana 1,008 161 1,354 58 28 234 2,843 Maine 317 55 317 9 46 100 844 Maryland 1,202 241 1,804 69 81 251 3,647 Massachusetts 1,239 400 1,984 25 150 495 4,292 Michigan 1,701 405 2,769 265 198 407 5,747 Minnesota 865 276 1,430 80 4 167 2,821 Mississippi 764 66 776 26 20 157 1,809 Missouri 1,179 174 1,641 233 20 332 3,579 Montana 191 25 232 32 1 46 528 Nebraska 340 100 484 57 5 78 1,064 Nevada 447 100 760 22 3 40 1,373 New Hampshire 232 80 362 21 33 101 829 New Jersey 1,542 406 2,806 161 237 438 5,590 New Mexico 354 31 505 56 3 75 1,024 New York 3,896 1,243 5,880 339 150 1,604 13,114 North Carolina 1,792 326 2,506 162 42 336 5,163 North Dakota 127 28 184 19 1 31 389 N. Mariana Islands NA NA NA NA NA NA 26 Ohio 2,225 393 3,203 275 97 539 6,733 Oklahoma 687 148 935 41 34 101 1,946 Oregon 623 125 1,002 68 7 127 1,953 Pennsylvania 2,135 642 3,369 290 207 585 7,227 Puerto Rico 668 70 876 21 65 12 1,712 Rhode Island 140 113 309 5 11 62 639 South Carolina 1,022 135 1,211 84 32 176 2,659 South Dakota 115 55 207 28 1 32 440 Tennessee 1,337 235 1,909 46 38 189 3,754 Texas 5,257 778 6,830 602 203 1,122 14,793 Utah 347 115 665 39 4 80 1,252 Vermont 154 20 135 6 19 39 373 Virginia 1,440 428 2,149 124 69 365 4,575 Virgin Islands NA NA NA NA NA NA 85 Washington 1,037 207 1,814 160 27 295 3,539 West Virginia 416 48 389 31 25 81 991 Wisconsin 1,003 250 1,419 113 94 197 3,075 Wyoming 116 16 145 10 1 22 310 Total 2/ $59,194 $12,227 $87,807 $6,031 $3,244 $13,997 $182,501 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. (Dollars in Millions) 1 - 40 Table 1.15 Intrastate Telecommunications Revenues: 2006 - Continued (Dollars in Millions) End User Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $929 $118 $1,262 $0 $34 $164 $2,507 Alaska NA NA NA NA NA NA 397 American Samoa NA NA NA NA NA NA 12 Arizona 690 314 1,600 0 5 110 2,719 Arkansas 491 53 741 0 75 84 1,443 California 5,198 939 10,590 0 443 1,735 18,904 Colorado 901 171 1,320 0 6 121 2,519 Connecticut 673 85 995 0 140 12 1,904 Delaware 144 33 250 0 10 11 448 District of Columbia 276 47 338 0 0 2 663 Florida 3,356 523 5,460 0 140 660 10,139 Georgia 1,868 294 2,644 0 44 231 5,081 Guam NA NA NA NA NA NA 67 Hawaii 177 20 389 0 5 13 605 Idaho 215 26 347 0 3 34 626 Illinois 1,937 369 3,523 0 272 295 6,396 Indiana 966 109 1,530 0 66 192 2,863 Iowa 443 74 719 0 5 116 1,358 Kansas 430 112 734 0 14 64 1,355 Kentucky 721 109 1,086 0 15 133 2,066 Louisiana 849 128 1,292 0 28 185 2,482 Maine 266 44 303 0 46 79 738 Maryland 1,012 191 1,722 0 81 199 3,204 Massachusetts 1,043 317 1,894 0 150 392 3,794 Michigan 1,432 321 2,643 0 198 322 4,917 Minnesota 728 219 1,364 0 4 132 2,447 Mississippi 643 52 741 0 20 124 1,581 Missouri 992 138 1,567 0 20 262 2,979 Montana 161 20 221 0 1 37 440 Nebraska 286 79 462 0 5 62 894 Nevada 377 79 725 0 3 32 1,216 New Hampshire 195 63 345 0 33 80 716 New Jersey 1,298 322 2,678 0 237 347 4,882 New Mexico 298 25 482 0 3 59 867 New York 3,280 985 5,613 0 150 1,269 11,297 North Carolina 1,508 258 2,391 0 42 266 4,466 North Dakota 107 22 176 0 1 24 330 N. Mariana Islands NA NA NA NA NA NA 22 Ohio 1,873 312 3,058 0 97 426 5,766 Oklahoma 579 117 892 0 34 80 1,703 Oregon 525 99 957 0 7 100 1,688 Pennsylvania 1,797 509 3,215 0 207 463 6,191 Puerto Rico 563 55 836 0 65 9 1,529 Rhode Island 118 89 295 0 11 49 562 South Carolina 861 107 1,156 0 32 140 2,294 South Dakota 97 44 198 0 1 26 366 Tennessee 1,125 186 1,822 0 38 150 3,322 Texas 4,426 617 6,520 0 203 888 12,653 Utah 293 91 635 0 4 64 1,087 Vermont 130 16 128 0 19 31 324 Virginia 1,212 339 2,051 0 69 289 3,960 Virgin Islands NA NA NA NA NA NA 73 Washington 873 164 1,731 0 27 233 3,028 West Virginia 351 38 372 0 25 64 849 Wisconsin 844 198 1,355 0 94 156 2,646 Wyoming 98 13 138 0 1 17 267 Total 2/ $49,836 $9,687 $83,810 $0 $3,244 $11,074 $157,653 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 41 Table 1.15 Intrastate Telecommunications Revenues: 2006 - Continued (Dollars in Millions) Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $174 $31 $60 $70 $0 $43 $379 Alaska NA NA NA NA NA NA 63 American Samoa NA NA NA NA NA NA 2 Arizona 130 82 76 80 0 29 397 Arkansas 92 14 35 61 0 22 225 California 976 246 505 1,023 0 458 3,208 Colorado 169 45 63 76 0 32 385 Connecticut 126 22 47 22 0 3 221 Delaware 27 9 12 4 0 3 55 District of Columbia 52 12 16 3 0 0 84 Florida 630 137 260 387 0 174 1,589 Georgia 351 77 126 112 0 61 727 Guam NA NA NA NA NA NA 11 Hawaii 33 5 19 29 0 3 89 Idaho 40 7 17 28 0 9 101 Illinois 364 97 168 216 0 78 923 Indiana 181 29 73 118 0 51 451 Iowa 83 19 34 95 0 31 263 Kansas 81 29 35 23 0 17 185 Kentucky 135 29 52 85 0 35 336 Louisiana 159 33 62 58 0 49 361 Maine 50 11 14 9 0 21 106 Maryland 190 50 82 69 0 52 444 Massachusetts 196 83 90 25 0 103 497 Michigan 269 84 126 265 0 85 829 Minnesota 137 57 65 80 0 35 374 Mississippi 121 14 35 26 0 33 228 Missouri 186 36 75 233 0 69 600 Montana 30 5 11 32 0 10 87 Nebraska 54 21 22 57 0 16 170 Nevada 71 21 35 22 0 8 157 New Hampshire 37 17 16 21 0 21 112 New Jersey 244 84 128 161 0 92 708 New Mexico 56 6 23 56 0 16 157 New York 616 258 268 339 0 335 1,816 North Carolina 283 68 114 162 0 70 697 North Dakota 20 6 8 19 0 6 59 N. Mariana Islands NA NA NA NA NA NA 4 Ohio 352 82 146 275 0 112 967 Oklahoma 109 31 43 41 0 21 244 Oregon 99 26 46 68 0 26 265 Pennsylvania 337 133 153 290 0 122 1,036 Puerto Rico 106 14 40 21 0 2 183 Rhode Island 22 23 14 5 0 13 77 South Carolina 162 28 55 84 0 37 365 South Dakota 18 11 9 28 0 7 74 Tennessee 211 49 87 46 0 39 432 Texas 831 162 311 602 0 234 2,140 Utah 55 24 30 39 0 17 165 Vermont 24 4 6 6 0 8 49 Virginia 228 89 98 124 0 76 615 Virgin Islands NA NA NA NA NA NA 12 Washington 164 43 83 160 0 62 511 West Virginia 66 10 18 31 0 17 142 Wisconsin 159 52 65 113 0 41 429 Wyoming 18 3 7 10 0 5 43 Total 2/ $9,357 $2,540 $3,997 $6,031 $0 $2,923 $24,848 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 42 Table 1.16 (Dollars in Millions) Total: End User + Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $87 $88 $413 $183 $253 $670 $1,693 Alaska NA NA NA NA NA NA 374 American Samoa NA NA NA NA NA NA 6 Arizona 65 235 523 204 425 801 2,252 Arkansas 46 39 242 92 211 435 1,066 California 486 701 3,464 1,128 2,516 4,265 12,560 Colorado 84 128 432 221 488 815 2,167 Connecticut 63 63 325 147 304 681 1,584 Delaware 13 25 82 40 84 176 420 District of Columbia 26 35 111 38 153 231 593 Florida 314 391 1,786 840 1,195 3,103 7,628 Georgia 175 220 865 358 689 1,391 3,698 Guam NA NA NA NA NA NA 78 Hawaii 17 15 127 57 98 177 490 Idaho 20 20 114 60 132 249 595 Illinois 181 275 1,153 404 702 1,751 4,466 Indiana 90 82 501 247 356 855 2,131 Iowa 41 55 235 101 225 523 1,180 Kansas 40 84 240 79 214 404 1,062 Kentucky 67 82 355 157 232 547 1,440 Louisiana 79 95 423 169 197 597 1,561 Maine 25 33 99 52 111 210 530 Maryland 95 143 563 237 507 1,053 2,597 Massachusetts 98 237 619 257 628 982 2,820 Michigan 134 240 865 320 523 1,096 3,178 Minnesota 68 163 446 171 403 638 1,890 Mississippi 60 39 242 102 137 426 1,006 Missouri 93 103 512 218 417 886 2,230 Montana 15 15 72 47 75 168 393 Nebraska 27 59 151 50 158 237 682 Nevada 35 59 237 79 181 532 1,124 New Hampshire 18 47 113 54 114 242 589 New Jersey 121 240 876 384 847 1,496 3,964 New Mexico 28 18 158 97 181 316 799 New York 307 736 1,836 666 1,461 2,312 7,317 North Carolina 141 193 782 361 529 1,336 3,342 North Dakota 10 17 58 23 65 93 265 N. Mariana Islands NA NA NA NA NA NA 17 Ohio 175 233 1,000 391 692 1,408 3,899 Oklahoma 54 87 292 112 273 475 1,294 Oregon 49 74 313 143 299 535 1,413 Pennsylvania 168 380 1,052 516 970 1,723 4,808 Puerto Rico 53 41 273 94 132 392 986 Rhode Island 11 67 96 28 59 112 373 South Carolina 80 80 378 174 228 676 1,617 South Dakota 9 33 65 26 60 110 302 Tennessee 105 139 596 240 300 860 2,241 Texas 414 461 2,133 738 1,646 2,633 8,025 Utah 27 68 208 81 203 320 908 Vermont 12 12 42 32 55 144 297 Virginia 113 253 671 318 725 1,276 3,356 Virgin Islands NA NA NA NA NA NA 145 Washington 82 122 566 246 516 883 2,415 West Virginia 33 28 122 79 130 346 737 Wisconsin 79 148 443 196 325 708 1,899 Wyoming 9 10 45 26 64 112 266 Total 2/ $4,669 $7,246 $27,465 $11,144 $21,606 $42,634 $114,768 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. Interstate Telecommunications Revenues: 2006 1 - 43 Table 1.16 Interstate Telecommunications Revenues: 2006 - Continued (Dollars in Millions) End User Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $2 $63 $395 $183 $64 $500 $1,206 Alaska NA NA NA NA NA NA 261 American Samoa NA NA NA NA NA NA 4 Arizona 1 167 501 204 107 597 1,577 Arkansas 1 28 232 92 53 325 731 California 11 499 3,315 1,128 633 3,182 8,767 Colorado 2 91 413 221 123 608 1,457 Connecticut 1 45 311 147 77 508 1,090 Delaware 0 17 78 40 21 131 289 District of Columbia 1 25 106 38 38 173 380 Florida 7 278 1,709 840 301 2,315 5,450 Georgia 4 156 828 358 174 1,038 2,557 Guam NA NA NA NA NA NA 54 Hawaii 0 10 122 57 25 132 346 Idaho 0 14 109 60 33 186 402 Illinois 4 196 1,103 404 177 1,307 3,190 Indiana 2 58 479 247 90 638 1,514 Iowa 1 39 225 101 57 390 813 Kansas 1 60 230 79 54 301 725 Kentucky 1 58 340 157 58 408 1,023 Louisiana 2 68 404 169 50 446 1,138 Maine 1 23 95 52 28 157 355 Maryland 2 102 539 237 128 786 1,793 Massachusetts 2 168 593 257 158 733 1,911 Michigan 3 171 827 320 132 818 2,271 Minnesota 2 116 427 171 102 476 1,293 Mississippi 1 28 232 102 34 318 715 Missouri 2 73 490 218 105 661 1,550 Montana 0 11 69 47 19 126 272 Nebraska 1 42 144 50 40 177 454 Nevada 1 42 227 79 46 397 791 New Hampshire 0 34 108 54 29 181 406 New Jersey 3 171 838 384 213 1,116 2,725 New Mexico 1 13 151 97 46 236 543 New York 7 523 1,757 666 368 1,725 5,046 North Carolina 3 137 749 361 133 997 2,380 North Dakota 0 12 55 23 16 69 176 N. Mariana Islands NA NA NA NA NA NA 12 Ohio 4 166 957 391 174 1,051 2,743 Oklahoma 1 62 279 112 69 354 878 Oregon 1 53 299 143 75 399 971 Pennsylvania 4 270 1,006 516 244 1,285 3,326 Puerto Rico 1 29 262 94 33 293 712 Rhode Island 0 47 92 28 15 83 266 South Carolina 2 57 362 174 57 505 1,156 South Dakota 0 23 62 26 15 82 208 Tennessee 2 99 570 240 76 642 1,629 Texas 9 328 2,041 738 414 1,965 5,495 Utah 1 48 199 81 51 239 619 Vermont 0 8 40 32 14 108 202 Virginia 3 180 642 318 183 952 2,277 Virgin Islands NA NA NA NA NA NA 101 Washington 2 87 542 246 130 659 1,665 West Virginia 1 20 116 79 33 258 507 Wisconsin 2 105 424 196 82 528 1,337 Wyoming 0 7 43 26 16 84 176 Total 2/ $103 $5,157 $26,278 $11,144 $5,440 $31,813 $79,937 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 44 Table 1.16 Interstate Telecommunications Revenues: 2006 - Continued Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $85 $26 $18 $0 $189 $170 $487 Alaska NA NA NA NA NA NA 114 American Samoa NA NA NA NA NA NA 2 Arizona 63 68 23 0 318 203 675 Arkansas 45 11 10 0 158 110 335 California 475 202 150 0 1,882 1,082 3,792 Colorado 82 37 19 0 365 207 710 Connecticut 62 18 14 0 228 173 494 Delaware 13 7 4 0 63 45 131 District of Columbia 25 10 5 0 114 59 213 Florida 307 113 77 0 894 787 2,178 Georgia 171 63 37 0 516 353 1,141 Guam NA NA NA NA NA NA 24 Hawaii 16 4 6 0 73 45 144 Idaho 20 6 5 0 99 63 192 Illinois 177 79 50 0 525 445 1,276 Indiana 88 24 22 0 266 217 617 Iowa 41 16 10 0 168 133 367 Kansas 39 24 10 0 160 103 337 Kentucky 66 24 15 0 174 139 417 Louisiana 78 27 18 0 147 152 422 Maine 24 9 4 0 83 53 174 Maryland 93 41 24 0 379 267 805 Massachusetts 95 68 27 0 470 249 909 Michigan 131 69 37 0 392 278 907 Minnesota 67 47 19 0 302 162 597 Mississippi 59 11 10 0 102 108 291 Missouri 91 30 22 0 312 225 680 Montana 15 4 3 0 56 43 121 Nebraska 26 17 7 0 118 60 228 Nevada 34 17 10 0 136 135 333 New Hampshire 18 14 5 0 85 62 183 New Jersey 119 69 38 0 634 380 1,239 New Mexico 27 5 7 0 136 80 255 New York 300 212 79 0 1,093 587 2,271 North Carolina 138 56 34 0 396 339 962 North Dakota 10 5 2 0 49 24 89 N. Mariana Islands NA NA NA NA NA NA 5 Ohio 171 67 43 0 518 357 1,157 Oklahoma 53 25 13 0 204 121 416 Oregon 48 21 14 0 224 136 443 Pennsylvania 164 110 45 0 725 437 1,482 Puerto Rico 51 12 12 0 98 100 273 Rhode Island 11 19 4 0 44 28 107 South Carolina 79 23 16 0 171 172 460 South Dakota 9 9 3 0 45 28 94 Tennessee 103 40 26 0 224 218 612 Texas 405 133 92 0 1,231 668 2,530 Utah 27 20 9 0 152 81 289 Vermont 12 3 2 0 41 37 95 Virginia 111 73 29 0 543 324 1,079 Virgin Islands NA NA NA NA NA NA 44 Washington 80 35 24 0 386 224 750 West Virginia 32 8 5 0 97 88 230 Wisconsin 77 43 19 0 243 180 562 Wyoming 9 3 2 0 48 28 90 Total 2/ $4,566 $2,090 $1,187 $0 $16,166 $10,821 $34,831 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. (Dollars in Millions) 1 - 45 Table 1.17 Adjustment Formula: 2006 Average Percent Adjustment Formula Reporting 2/ 100/Average Percent 2006 2006 Reporting Alabama 2,085,906 89.6 % 1.12 Alaska 369,991 0.0 NA American Samoa 10,746 0.0 NA Arizona 2,251,616 91.4 1.09 Arkansas 1,246,108 67.3 1.49 California 19,638,748 98.8 1.01 Colorado 2,301,366 94.7 1.06 Connecticut 1,854,403 98.8 1.01 Delaware 491,408 100.0 1.00 District of Columbia 724,194 100.0 1.00 Florida 9,214,613 98.0 1.02 Georgia 4,166,995 87.5 1.14 Guam 62,640 0.0 NA Hawaii 587,742 98.8 1.01 Idaho 673,389 90.2 1.11 Illinois 6,463,779 94.9 1.05 Indiana 3,071,465 95.2 1.05 Iowa 1,381,950 80.2 1.25 Kansas 1,191,789 81.6 1.23 Kentucky 1,811,672 91.0 1.10 Louisiana 1,904,437 91.2 1.10 Maine 730,041 81.6 1.23 Maryland 3,280,666 99.8 1.00 Massachusetts 3,232,105 99.9 1.00 Michigan 4,684,096 95.8 1.04 Minnesota 2,424,889 68.7 1.46 Mississippi 1,190,411 92.5 1.08 Missouri 2,927,211 89.9 1.11 Montana 449,085 64.2 1.56 Nebraska 719,163 76.8 1.30 Nevada 1,184,146 95.2 1.05 New Hampshire 673,032 92.1 1.09 New Jersey 5,048,228 99.8 1.00 New Mexico 872,062 84.2 1.19 New York 9,183,939 96.2 1.04 North Carolina 4,120,305 88.9 1.12 North Dakota 318,467 50.1 1.99 N. Mariana Islands 20,926 0.0 NA Ohio 5,433,993 94.6 1.06 Oklahoma 1,535,987 79.9 1.25 Oregon 1,732,954 90.7 1.10 Pennsylvania 6,602,383 95.4 1.05 Puerto Rico 1,068,168 100.0 1.00 Rhode Island 380,875 100.0 1.00 South Carolina 1,966,021 70.3 1.42 South Dakota 307,807 55.3 1.81 Tennessee 2,827,951 84.8 1.18 Texas 10,308,842 91.9 1.09 Utah 977,879 90.7 1.10 Vermont 385,123 83.8 1.19 Virginia 3,869,542 97.1 1.03 Virgin Islands 68,130 0.0 NA Washington 2,989,810 97.3 1.03 West Virginia 903,931 81.9 1.22 Wisconsin 2,680,202 71.0 1.41 Wyoming 253,599 80.8 1.24 Total 146,856,926 92.4 % 1.08 NA - Not Applicable. 1/ USF loops, a measure of access lines, are defined in subcategory 1.3 of 47 C.F.R. 36.154(a). 2/ Average percent reporting to ARMIS (Report 43-01) is based on USF loops. USF Loops 1/ Year End 1 - 46 Table 1.18 Information for Allocating Incumbent Local Exchange Revenues: 2006 (Dollars in Millions) Revenues Interstate for Total Allocation Revenues Alabama $1,045 1.87 % $929 $2 $1,103 $87 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 777 1.39 690 1 820 65 Arkansas 552 0.99 491 1 583 46 California 5,849 10.47 5,198 11 6,174 486 Colorado 1,013 1.81 901 2 1,070 84 Connecticut 757 1.35 673 1 799 63 Delaware 162 0.29 144 0 171 13 District of Columbia 310 0.56 276 1 328 26 Florida 3,776 6.76 3,356 7 3,986 314 Georgia 2,102 3.76 1,868 4 2,219 175 Guam NA NA NA NA NA NA Hawaii 200 0.36 177 0 211 17 Idaho 242 0.43 215 0 256 20 Illinois 2,180 3.90 1,937 4 2,301 181 Indiana 1,087 1.94 966 2 1,147 90 Iowa 499 0.89 443 1 527 41 Kansas 484 0.87 430 1 511 40 Kentucky 812 1.45 721 1 857 67 Louisiana 955 1.71 849 2 1,008 79 Maine 300 0.54 266 1 317 25 Maryland 1,138 2.04 1,012 2 1,202 95 Massachusetts 1,173 2.10 1,043 2 1,239 98 Michigan 1,612 2.88 1,432 3 1,701 134 Minnesota 820 1.47 728 2 865 68 Mississippi 724 1.30 643 1 764 60 Missouri 1,117 2.00 992 2 1,179 93 Montana 181 0.32 161 0 191 15 Nebraska 322 0.58 286 1 340 27 Nevada 424 0.76 377 1 447 35 New Hampshire 220 0.39 195 0 232 18 New Jersey 1,461 2.61 1,298 3 1,542 121 New Mexico 335 0.60 298 1 354 28 New York 3,691 6.61 3,280 7 3,896 307 North Carolina 1,697 3.04 1,508 3 1,792 141 North Dakota 120 0.22 107 0 127 10 Northern Mariana Islands NA NA NA NA NA NA Ohio 2,108 3.77 1,873 4 2,225 175 Oklahoma 651 1.17 579 1 687 54 Oregon 591 1.06 525 1 623 49 Pennsylvania 2,023 3.62 1,797 4 2,135 168 Puerto Rico 633 1.13 563 1 668 53 Rhode Island 133 0.24 118 0 140 11 South Carolina 968 1.73 861 2 1,022 80 South Dakota 109 0.20 97 0 115 9 Tennessee 1,266 2.27 1,125 2 1,337 105 Texas 4,980 8.91 4,426 9 5,257 414 Utah 329 0.59 293 1 347 27 Vermont 146 0.26 130 0 154 12 Virginia 1,364 2.44 1,212 3 1,440 113 Virgin Islands NA NA NA NA NA NA Washington 983 1.76 873 2 1,037 82 West Virginia 395 0.71 351 1 416 33 Wisconsin 950 1.70 844 2 1,003 79 Wyoming 110 0.20 98 0 116 9 Total 1/ $55,876 100.00 % $49,836 $103 $59,194 $4,669 NA - Not Applicable. Note: Incumbent local exchange revenues exclude SLC. Figures may not add due to rounding. 1/ Totals in the last four columns include revenues for locations not estimated. Allocation Percentage Revenues Interstate End-User RevenuesRevenues Total Intrastate End-User Intrastate 1 - 47 Table 1.19 Information for Allocating CLEC Revenues: 2006 (Dollars in Millions) CLEC Allocation Interstate Interstate Intrastate Intrastate Lines Percentage End-User Total End-User Total Jun 06 1/ Revenues Revenues Revenues Revenues Alabama 365,944 1.23 % $63 $88 $118 $149 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 970,453 3.25 167 235 314 396 Arkansas 162,545 0.55 28 39 53 66 California 2,900,279 9.73 499 701 939 1,185 Colorado 528,727 1.77 91 128 171 216 Connecticut 261,681 0.88 45 63 85 107 Delaware 101,513 0.34 17 25 33 41 District of Columbia 144,600 0.48 25 35 47 59 Florida 1,617,538 5.42 278 391 523 661 Georgia 909,236 3.05 156 220 294 371 Guam NA NA NA NA NA NA Hawaii 60,696 0.20 10 15 20 25 Idaho 80,698 0.27 14 20 26 33 Illinois 1,139,239 3.82 196 275 369 465 Indiana 338,113 1.13 58 82 109 138 Iowa 229,603 0.77 39 55 74 94 Kansas 346,533 1.16 60 84 112 142 Kentucky 337,467 1.13 58 82 109 138 Louisiana 394,199 1.32 68 95 128 161 Maine 134,610 0.45 23 33 44 55 Maryland 590,557 1.98 102 143 191 241 Massachusetts 978,953 3.28 168 237 317 400 Michigan 992,598 3.33 171 240 321 405 Minnesota 675,623 2.27 116 163 219 276 Mississippi 161,058 0.54 28 39 52 66 Missouri 425,768 1.43 73 103 138 174 Montana 61,726 0.21 11 15 20 25 Nebraska 244,058 0.82 42 59 79 100 Nevada 245,553 0.82 42 59 79 100 New Hampshire 195,539 0.66 34 47 63 80 New Jersey 993,630 3.33 171 240 322 406 New Mexico 76,512 0.26 13 18 25 31 New York 3,043,468 10.21 523 736 985 1,243 North Carolina 797,793 2.68 137 193 258 326 North Dakota 68,351 0.23 12 17 22 28 N. Mariana Islands NA NA NA NA NA NA Ohio 963,094 3.23 166 233 312 393 Oklahoma 361,715 1.21 62 87 117 148 Oregon 305,519 1.02 53 74 99 125 Pennsylvania 1,572,224 5.27 270 380 509 642 Puerto Rico * 0.57 29 41 55 70 Rhode Island 275,526 0.92 47 67 89 113 South Carolina 329,943 1.11 57 80 107 135 South Dakota 135,275 0.45 23 33 44 55 Tennessee 575,957 1.93 99 139 186 235 Texas 1,905,521 6.39 328 461 617 778 Utah 281,796 0.94 48 68 91 115 Vermont 49,094 0.16 8 12 16 20 Virginia 1,046,894 3.51 180 253 339 428 Virgin Islands NA NA NA NA NA NA Washington 506,360 1.70 87 122 164 207 West Virginia 117,009 0.39 20 28 38 48 Wisconsin 611,912 2.05 105 148 198 250 Wyoming 39,443 0.13 7 10 13 16 Total 3/ 29,896,109 100.00 % $5,157 $7,246 $9,687 $12,227 NA - Not Applicable. * Data withheld to maintain firms confidentiality. Allocation percentage based on Puerto Rico's personal income. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (March 2008). 2/ Totals in the last four columns include revenues for locations not estimated. 1 - 48 Table 1.20 Information for Allocating Mobile Wireless Revenues: 2006 Alabama 3,276 1.51 % $1,262 $395 $1,322 $413 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 4,153 1.92 1,600 501 1,676 523 Arkansas 1,924 0.89 741 232 776 242 California 27,497 12.68 10,590 3,315 11,095 3,464 Colorado 3,428 1.58 1,320 413 1,383 432 Connecticut 2,582 1.19 995 311 1,042 325 Delaware 650 0.30 250 78 262 82 District of Columbia 879 0.41 338 106 355 111 Florida 14,177 6.54 5,460 1,709 5,720 1,786 Georgia 6,865 3.17 2,644 828 2,770 865 Guam NA NA NA NA NA NA Hawaii 1,010 0.47 389 122 408 127 Idaho 901 0.42 347 109 364 114 Illinois 9,148 4.22 3,523 1,103 3,691 1,153 Indiana 3,973 1.83 1,530 479 1,603 501 Iowa 1,867 0.86 719 225 753 235 Kansas 1,905 0.88 734 230 769 240 Kentucky 2,821 1.30 1,086 340 1,138 355 Louisiana 3,356 1.55 1,292 404 1,354 423 Maine 787 0.36 303 95 317 99 Maryland 4,471 2.06 1,722 539 1,804 563 Massachusetts 4,917 2.27 1,894 593 1,984 619 Michigan 6,863 3.17 2,643 827 2,769 865 Minnesota 3,543 1.63 1,364 427 1,430 446 Mississippi 1,923 0.89 741 232 776 242 Missouri 4,068 1.88 1,567 490 1,641 512 Montana 575 0.27 221 69 232 72 Nebraska 1,199 0.55 462 144 484 151 Nevada 1,883 0.87 725 227 760 237 New Hampshire 897 0.41 345 108 362 113 New Jersey 6,954 3.21 2,678 838 2,806 876 New Mexico 1,253 0.58 482 151 505 158 New York 14,574 6.72 5,613 1,757 5,880 1,836 North Carolina 6,209 2.86 2,391 749 2,506 782 North Dakota 457 0.21 176 55 184 58 N. Mariana Islands NA NA NA NA NA NA Ohio 7,939 3.66 3,058 957 3,203 1,000 Oklahoma 2,317 1.07 892 279 935 292 Oregon 2,484 1.15 957 299 1,002 313 Pennsylvania 8,349 3.85 3,215 1,006 3,369 1,052 Puerto Rico 2,171 1.00 836 262 876 273 Rhode Island 765 0.35 295 92 309 96 South Carolina 3,001 1.38 1,156 362 1,211 378 South Dakota 514 0.24 198 62 207 65 Tennessee 4,731 2.18 1,822 570 1,909 596 Texas 16,928 7.81 6,520 2,041 6,830 2,133 Utah 1,649 0.76 635 199 665 208 Vermont 334 0.15 128 40 135 42 Virginia 5,325 2.46 2,051 642 2,149 671 Virgin Islands NA NA NA NA NA NA Washington 4,495 2.07 1,731 542 1,814 566 West Virginia 965 0.44 372 116 389 122 Wisconsin 3,517 1.62 1,355 424 1,419 443 Wyoming 359 0.17 138 43 145 45 Total 2/ 217,418 100.00 % $83,810 $26,278 $87,807 $27,465 NA - Not Applicable. * Data withheld to maintain firms confidentiality. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (March 2008). 2/ Totals in the last four columns include revenues for locations not estimated. Jun 06 1/ Revenues Total Revenues Revenues Interstate End-User Intrastate End-UserSubscribers Allocation Percentage Wireless Intrastate Total Interstate Revenues (Dollars in Millions) 1 - 49 Table 1.21 Information for Allocating Subscriber Line Charges' (SLCs) Revenues: 2006 Allocation Residential Percentage SLC 2/ Alabama 1,342,273 68,945 429,735 $6.50 $6.79 $7.30 $148 1.65 % $183 Alaska NA NA NA NA NA NA NA NA NA American Samoa NA NA NA NA NA NA NA NA NA Arizona 1,277,093 137,184 730,401 6.33 6.36 6.57 165 1.84 204 Arkansas 671,325 35,130 344,381 5.66 5.25 6.54 75 0.83 92 California 6,688,252 2,129,633 6,205,188 4.93 5.02 5.23 914 10.17 1,128 Colorado 1,323,882 174,318 665,932 6.50 7.00 7.61 179 1.99 221 Connecticut 956,413 196,085 523,611 5.79 5.78 6.25 119 1.33 147 Delaware 262,580 27,356 130,971 6.44 6.44 6.44 33 0.36 40 Dist. of Columbia 169,068 26,232 471,042 3.85 3.85 3.85 31 0.34 38 Florida 5,517,785 575,814 2,289,423 6.50 6.76 7.41 681 7.58 840 Georgia 2,257,368 203,652 1,122,837 6.50 6.76 7.23 290 3.23 358 Guam NA NA NA NA NA NA NA NA NA Hawaii 317,914 31,904 194,946 6.50 7.00 8.12 46 0.52 57 Idaho 399,960 30,887 186,184 6.37 6.50 7.15 49 0.54 60 Illinois 3,122,632 370,442 2,009,701 4.81 4.82 5.20 327 3.64 404 Indiana 1,781,318 113,283 789,524 5.90 6.01 6.96 200 2.23 247 Iowa 807,296 40,858 347,179 5.40 5.26 6.39 81 0.91 101 Kansas 586,926 34,884 329,442 5.47 5.42 5.96 64 0.72 79 Kentucky 1,101,066 43,694 437,053 6.37 6.66 7.48 127 1.41 157 Louisiana 1,107,393 93,941 513,618 6.50 6.76 6.98 137 1.53 169 Maine 386,520 21,607 133,326 6.41 6.40 6.91 42 0.47 52 Maryland 1,600,161 195,472 1,020,335 5.67 5.67 5.68 192 2.14 237 Massachusetts 1,620,986 165,309 922,648 6.40 6.40 6.40 208 2.32 257 Michigan 2,280,200 157,666 1,340,093 5.56 5.60 6.00 259 2.89 320 Minnesota 1,372,995 86,956 591,196 5.40 5.25 6.26 139 1.55 171 Mississippi 709,976 36,674 294,371 6.50 6.76 6.94 83 0.92 102 Missouri 1,722,601 135,643 712,411 5.59 5.52 6.10 177 1.97 218 Montana 286,801 12,693 133,303 6.50 7.00 9.20 38 0.42 47 Nebraska 344,827 18,675 240,700 5.26 5.11 6.14 41 0.45 50 Nevada 696,901 75,800 352,634 4.47 4.44 5.27 64 0.71 79 New Hampshire 400,698 34,080 134,662 6.40 6.40 6.61 44 0.49 54 New Jersey 2,170,476 504,766 1,449,462 6.25 6.25 6.35 311 3.46 384 New Mexico 591,555 44,472 262,318 6.50 7.00 9.20 79 0.88 97 New York 4,022,134 516,304 2,423,487 6.34 6.35 6.69 540 6.01 666 North Carolina 2,550,668 177,727 1,010,066 6.26 6.41 7.22 293 3.26 361 North Dakota 134,970 3,355 73,396 6.50 7.00 8.56 18 0.20 23 N. Mariana Islands NA NA NA NA NA NA NA NA NA Ohio 3,002,818 200,177 1,330,535 5.66 5.68 6.24 317 3.53 391 Oklahoma 868,335 64,049 411,200 5.50 5.36 6.03 91 1.01 112 Oregon 983,952 77,331 351,451 6.50 6.87 7.78 116 1.29 143 Pennsylvania 3,820,713 380,746 1,453,415 5.99 5.97 6.64 418 4.65 516 Puerto Rico 714,027 0 206,456 6.25 0.00 9.20 76 0.85 94 Rhode Island 181,021 14,892 97,789 6.40 6.40 6.40 23 0.25 28 South Carolina 1,217,703 55,561 465,066 6.46 6.72 7.54 141 1.57 174 South Dakota 136,451 4,776 107,492 6.46 6.43 7.63 21 0.23 26 Tennessee 1,752,845 107,534 598,618 6.38 6.61 7.17 194 2.16 240 Texas 5,289,089 621,353 2,727,225 5.56 5.61 6.22 598 6.66 738 Utah 537,724 51,074 269,063 6.32 6.32 6.56 66 0.73 81 Vermont 224,168 14,662 87,362 6.41 6.40 6.84 26 0.28 32 Virginia 2,005,400 187,124 1,172,010 6.18 6.25 6.74 258 2.87 318 Virgin Islands NA NA NA NA NA NA NA NA NA Washington 1,714,982 174,846 733,505 6.07 6.17 6.98 199 2.22 246 West Virginia 607,826 17,935 149,894 6.50 7.00 8.46 64 0.71 79 Wisconsin 1,412,679 79,533 734,913 5.66 5.42 6.55 159 1.77 196 Wyoming 132,285 6,569 92,419 6.50 7.00 9.20 21 0.23 26 Total 3/ 74,455,093 8,579,603 39,803,989 $5.97 $5.81 $6.39 $8,980 100.00 % $11,144 Note: Figures may not add due to rounding. NA - Not Applicable. 1/ Excludes additional lines for residential customers of price-cap carriers. 2/ SLC for single line business is the same as for residential lines. 3/ Totals in the last column include revenues for locations not estimated. AveragePrimary Residential Lines & Single Line Business 1/ Additional Residential Average Interstate (Millions) AllocationBusiness Revenues for SLCs (Millions) Average Additional Line SLC Multiline SLCLines Business Multilines 1 - 50 Table 1.22 Gross Access SLCs Revenues Allocation Interstate Interstate Revenues for for Percentage End-User Total Allocation Allocation Revenues Revenues Alabama $431 $183 $248 1.18 % $64 $253 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 621 204 417 1.98 107 425 Arkansas 300 92 207 0.98 53 211 California 3,598 1,128 2,470 11.71 633 2,516 Colorado 699 221 479 2.27 123 488 Connecticut 446 147 299 1.42 77 304 Delaware 123 40 83 0.39 21 84 District of Columbia 188 38 150 0.71 38 153 Florida 2,013 840 1,173 5.56 301 1,195 Georgia 1,035 358 677 3.21 174 689 Guam NA NA NA NA NA NA Hawaii 154 57 96 0.46 25 98 Idaho 190 60 130 0.62 33 132 Illinois 1,093 404 690 3.27 177 702 Indiana 597 247 350 1.66 90 356 Iowa 321 101 220 1.04 57 225 Kansas 290 79 211 1.00 54 214 Kentucky 385 157 228 1.08 58 232 Louisiana 363 169 193 0.92 50 197 Maine 161 52 109 0.52 28 111 Maryland 734 237 498 2.36 128 507 Massachusetts 873 257 616 2.92 158 628 Michigan 834 320 514 2.44 132 523 Minnesota 567 171 396 1.88 102 403 Mississippi 236 102 134 0.64 34 137 Missouri 628 218 410 1.94 105 417 Montana 121 47 74 0.35 19 75 Nebraska 206 50 155 0.74 40 158 Nevada 257 79 178 0.84 46 181 New Hampshire 166 54 112 0.53 29 114 New Jersey 1,216 384 832 3.94 213 847 New Mexico 275 97 178 0.84 46 181 New York 2,101 666 1,434 6.80 368 1,461 North Carolina 881 361 519 2.46 133 529 North Dakota 87 23 64 0.30 16 65 N. Mariana Islands NA NA NA NA NA NA Ohio 1,071 391 679 3.22 174 692 Oklahoma 381 112 268 1.27 69 273 Oregon 437 143 294 1.39 75 299 Pennsylvania 1,468 516 952 4.51 244 970 Puerto Rico 224 94 129 0.61 33 132 Rhode Island 86 28 58 0.28 15 59 South Carolina 398 174 224 1.06 57 228 South Dakota 85 26 59 0.28 15 60 Tennessee 535 240 295 1.40 76 300 Texas 2,354 738 1,616 7.66 414 1,646 Utah 281 81 199 0.94 51 203 Vermont 86 32 54 0.26 14 55 Virginia 1,030 318 712 3.38 183 725 Virgin Islands NA NA NA NA NA NA Washington 753 246 507 2.40 130 516 West Virginia 206 79 127 0.60 33 130 Wisconsin 516 196 320 1.51 82 325 Wyoming 89 26 63 0.30 16 64 Total 1/ $32,187 $11,087 $21,102 100.00 % $5,440 $21,606 NA - Not Applicable. Note: Includes switched and special access revenues and private line revenues. Figures may not add due to rounding. 1/ Totals in the last two columns include revenues for locations not estimated. Information for Allocating Interstate Access Revenues: 2006 (Dollars in Millions) 1 - 51 Table 1.23 Allocation Intrastate Intrastate Percentage End-User Total Revenues Revenues Alabama $71 1.17 % $0 $70 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 81 1.32 0 80 Arkansas 62 1.02 0 61 California 1,037 17.03 0 1,023 Colorado 78 1.27 0 76 Connecticut 22 0.37 0 22 Delaware 4 0.07 0 4 District of Columbia 4 0.06 0 3 Florida 392 6.44 0 387 Georgia 114 1.86 0 112 Guam NA NA NA NA Hawaii 29 0.48 0 29 Idaho 28 0.46 0 28 Illinois 219 3.60 0 216 Indiana 119 1.96 0 118 Iowa 96 1.58 0 95 Kansas 23 0.38 0 23 Kentucky 86 1.41 0 85 Louisiana 58 0.96 0 58 Maine 9 0.15 0 9 Maryland 70 1.15 0 69 Massachusetts 25 0.41 0 25 Michigan 269 4.41 0 265 Minnesota 81 1.33 0 80 Mississippi 26 0.43 0 26 Missouri 237 3.88 0 233 Montana 32 0.53 0 32 Nebraska 58 0.95 0 57 Nevada 23 0.37 0 22 New Hampshire 21 0.35 0 21 New Jersey 163 2.68 0 161 New Mexico 56 0.93 0 56 New York 344 5.65 0 339 North Carolina 164 2.69 0 162 North Dakota 19 0.31 0 19 Northern Mariana Islands NA NA NA NA Ohio 279 4.58 0 275 Oklahoma 41 0.68 0 41 Oregon 69 1.13 0 68 Pennsylvania 294 4.82 0 290 Puerto Rico 21 0.34 0 21 Rhode Island 5 0.08 0 5 South Carolina 85 1.39 0 84 South Dakota 29 0.47 0 28 Tennessee 46 0.76 0 46 Texas 610 10.02 0 602 Utah 40 0.65 0 39 Vermont 6 0.10 0 6 Virginia 126 2.07 0 124 Virgin Islands NA NA NA NA Washington 162 2.66 0 160 West Virginia 32 0.52 0 31 Wisconsin 114 1.87 0 113 Wyoming 10 0.17 0 10 Total 1/ $6,090 100.00 $0 $6,031 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Totals in the last two columns include revenues for locations not estimated. Information for Allocating Intrastate Access Revenues: 2006 Revenues for (Dollars in Millions) Allocation 1 - 52 Table 1.24 Information for Allocating LECs' Intrastate Toll: 2006 (Dollars in Millions) Reported Revenues Intrastate by Revenues 2/ Large ILECs 1/ Alabama $31 $34 Alaska NA NA American Samoa NA NA Arizona 4 5 Arkansas 50 75 California 438 443 Colorado 5 6 Connecticut 138 140 Delaware 10 10 District of Columbia 0 0 Florida 137 140 Georgia 39 44 Guam NA NA Hawaii 5 5 Idaho 3 3 Illinois 259 272 Indiana 63 66 Iowa 4 5 Kansas 12 14 Kentucky 14 15 Louisiana 25 28 Maine 37 46 Maryland 80 81 Massachusetts 149 150 Michigan 190 198 Minnesota 3 4 Mississippi 18 20 Missouri 18 20 Montana 1 1 Nebraska 4 5 Nevada 3 3 New Hampshire 30 33 New Jersey 237 237 New Mexico 3 3 New York 145 150 North Carolina 37 42 North Dakota 0 1 Northern Mariana Islands NA NA Ohio 92 97 Oklahoma 28 34 Oregon 6 7 Pennsylvania 197 207 Puerto Rico 65 65 Rhode Island 11 11 South Carolina 22 32 South Dakota 1 1 Tennessee 33 38 Texas 186 203 Utah 4 4 Vermont 16 19 Virginia 67 69 Virgin Islands NA NA Washington 26 27 West Virginia 21 25 Wisconsin 66 94 Wyoming 1 1 Total 3/ $3,033 $3,244 NA - Not Applicable. 1/ Includes only carriers that file ARMIS Report 43-01. 2/ We assume that there is no carrier's carrier LEC toll. End-user LEC toll equals total LEC toll 3/ Totals in the last column include revenues for locations not estimated. Note: LEC is an abbreviation for local exchange carrier. Figures may not add due to rounding. 1 - 53 Table 1.25 Information for Allocating Non-LECs' Intrastate Toll: 2006 (Dollars in Millions) Access Minutes 1/ State Access Allocation End-User Total for Revenues Percentage 2/ Revenues Revenues Allocation Alabama 2,923,298 1.60 % 1.17 % 1.49 % $164 $208 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 1,634,216 0.89 1.32 1.00 110 139 Arkansas 1,229,823 0.67 1.02 0.76 84 106 California 28,010,126 15.28 17.03 15.72 1,735 2,192 Colorado 1,897,219 1.04 1.27 1.09 121 153 Connecticut 35,246 0.02 0.37 0.11 12 15 Delaware 201,531 0.11 0.07 0.10 11 14 District of Columbia 0 0.00 0.06 0.01 2 2 Florida 10,680,502 5.83 6.44 5.98 660 834 Georgia 3,965,501 2.16 1.86 2.09 231 291 Guam NA NA NA NA NA NA Hawaii 0 0.00 0.48 0.12 13 17 Idaho 476,630 0.26 0.46 0.31 34 43 Illinois 4,327,301 2.36 3.60 2.67 295 373 Indiana 3,062,228 1.67 1.96 1.74 192 243 Iowa 1,607,857 0.88 1.58 1.05 116 147 Kansas 1,197,027 0.65 0.38 0.58 64 82 Kentucky 2,091,714 1.14 1.41 1.21 133 169 Louisiana 3,514,197 1.92 0.96 1.68 185 234 Maine 1,661,202 0.91 0.15 0.72 79 100 Maryland 3,699,991 2.02 1.15 1.80 199 251 Massachusetts 8,424,374 4.60 0.41 3.55 392 495 Michigan 4,440,168 2.42 4.41 2.92 322 407 Minnesota 2,105,442 1.15 1.33 1.19 132 167 Mississippi 2,495,975 1.36 0.43 1.13 124 157 Missouri 3,439,451 1.88 3.88 2.38 262 332 Montana 486,840 0.27 0.53 0.33 37 46 Nebraska 793,900 0.43 0.95 0.56 62 78 Nevada 473,407 0.26 0.37 0.29 32 40 New Hampshire 1,558,057 0.85 0.35 0.73 80 101 New Jersey 6,044,048 3.30 2.68 3.14 347 438 New Mexico 743,053 0.41 0.93 0.54 59 75 New York 24,654,923 13.45 5.65 11.50 1,269 1,604 North Carolina 4,248,568 2.32 2.69 2.41 266 336 North Dakota 353,411 0.19 0.31 0.22 24 31 N. Mariana Islands NA NA NA NA NA NA Ohio 6,639,001 3.62 4.58 3.86 426 539 Oklahoma 1,359,795 0.74 0.68 0.73 80 101 Oregon 1,529,607 0.83 1.13 0.91 100 127 Pennsylvania 7,301,550 3.98 4.82 4.19 463 585 Puerto Rico 0 0.00 0.34 0.09 9 12 Rhode Island 1,044,037 0.57 0.08 0.45 49 62 South Carolina 2,243,163 1.22 1.39 1.27 140 176 South Dakota 276,286 0.15 0.47 0.23 26 32 Tennessee 2,846,758 1.55 0.76 1.36 150 189 Texas 13,536,430 7.39 10.02 8.04 888 1,122 Utah 1,011,111 0.55 0.65 0.58 64 80 Vermont 628,119 0.34 0.10 0.28 31 39 Virginia 5,137,642 2.80 2.07 2.62 289 365 Virgin Islands NA NA NA NA NA NA Washington 3,540,456 1.93 2.66 2.11 233 295 West Virginia 1,105,040 0.60 0.52 0.58 64 81 Wisconsin 2,307,616 1.26 1.87 1.41 156 197 Wyoming 278,244 0.15 0.17 0.16 17 22 Total 3/ 183,262,083 100.00 % 100.00 % 100.00 % $11,074 $13,997 NA - Not Applicable. Note: LEC is an abbreviation for local exchange carrier. Figures may not add due to rounding. 1/ Access minutes are in thousands and include both originating and terminating minutes. 2/ Allocation percentage is a function of both access minutes and access revenues. 3/ Totals in the last two columns include revenues for locations not estimated. % of Nation Access Minutes % of Nation 1 - 54 Table 1.26 Information for Allocating Interstate Toll: 2006 Access Minutes Allocation for Percentage Allocation 1/ Alabama 5,961 1.58 % $500 $670 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 7,121 1.89 597 801 Arkansas 3,870 1.03 325 435 California 37,936 10.06 3,182 4,265 Colorado 7,248 1.92 608 815 Connecticut 6,060 1.61 508 681 Delaware 1,565 0.41 131 176 District of Columbia 2,057 0.55 173 231 Florida 27,598 7.32 2,315 3,103 Georgia 12,374 3.28 1,038 1,391 Guam NA NA NA NA Hawaii 1,571 0.42 132 177 Idaho 2,214 0.59 186 249 Illinois 15,579 4.13 1,307 1,751 Indiana 7,610 2.02 638 855 Iowa 4,654 1.23 390 523 Kansas 3,594 0.95 301 404 Kentucky 4,864 1.29 408 547 Louisiana 5,312 1.41 446 597 Maine 1,866 0.49 157 210 Maryland 9,371 2.48 786 1,053 Massachusetts 8,737 2.32 733 982 Michigan 9,752 2.59 818 1,096 Minnesota 5,671 1.50 476 638 Mississippi 3,786 1.00 318 426 Missouri 7,881 2.09 661 886 Montana 1,498 0.40 126 168 Nebraska 2,107 0.56 177 237 Nevada 4,729 1.25 397 532 New Hampshire 2,157 0.57 181 242 New Jersey 13,303 3.53 1,116 1,496 New Mexico 2,809 0.74 236 316 New York 20,565 5.45 1,725 2,312 North Carolina 11,880 3.15 997 1,336 North Dakota 827 0.22 69 93 N. Mariana Islands NA NA NA NA Ohio 12,523 3.32 1,051 1,408 Oklahoma 4,225 1.12 354 475 Oregon 4,758 1.26 399 535 Pennsylvania 15,324 4.06 1,285 1,723 Puerto Rico 3,490 0.93 293 392 Rhode Island 994 0.26 83 112 South Carolina 6,015 1.59 505 676 South Dakota 979 0.26 82 110 Tennessee 7,652 2.03 642 860 Texas 23,426 6.21 1,965 2,633 Utah 2,848 0.75 239 320 Vermont 1,283 0.34 108 144 Virginia 11,346 3.01 952 1,276 Virgin Islands NA NA NA NA Washington 7,854 2.08 659 883 West Virginia 3,078 0.82 258 346 Wisconsin 6,294 1.67 528 708 Wyoming 997 0.26 84 112 Total 2/ 377,212 100.00 % $31,813 $42,634 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Access minutes are in thousands and include both originating and terminating minutes. 2/ Totals in the last two columns include revenues for locations not estimated. End-User Revenues (Dollars in Millions) Total Revenues 1 - 55