TELECOMMUNICATIONS INDUSTRY REVENUES 2007 Jim Lande Kenneth Lynch Industry Analysis & Technology Division Wireline Competition Bureau September 2009 This report is available for reference in the FCC's Reference Information Center, Courtyard Level, 445 12th Street S.W., Washington, D.C. 20554. Copies may be purchased by calling Best Copy and Printing Inc., (BCPI), 445 12th Street S.W., Room CY-B402, Washington, D.C. 20554, telephone 800-378-3160, facsimile 202-488-5563, or via e-mail at fcc@bcpiweb.com. The report can also be downloaded from the Wireline Competition Bureau’s Statistical Reports Internet site www.fcc.gov/wcb/stats. Telecommunications Industry Revenues This report provides an overview of U.S. telecommunications industry revenues and contributions to the universal service support mechanisms over the past decade. The last report was released August 28, 2008. 1 Most of the data for 2007 are taken from April 1, 2008 filings of annual Telecommunications Reporting Worksheets (FCC Form 499-A). Revenue data collected on these worksheets are utilized in the Commission’s administration of the universal service fund (USF), Telecommunications Relay Service (TRS), North American Numbering Plan (NANP) and local number portability (LNP) programs. FCC Form 499-A data also are used to calculate common carrier regulatory fees. Preliminary 2008 totals presented in Table 1, and 2008 and 2009 shares of universal service contributions by principal type of contributor presented in Table 12, are based on filings of quarterly Telecommunications Reporting Worksheets (FCC Form 499-Q). In 2007, the industry reported $299 billion in telecommunications service revenues, a small increase from 2006’s $297 billion. Industry sector data include: ƒ The pace of revenue growth for the wireless industry remained strong. Wireless industry revenues grew 5% during 2007, from $115 billion to $121 billion. See Table 2. ƒ Filers reported $113 billion of local service revenues for 2007, about 4% less than the $118 billion reported for 2006. See Table 2. ƒ Revenues for incumbent local exchange carriers (LECs) for all services decreased to $94 billion in 2007, down 6% from $100 billion in 2006. See Table 3. These carriers reported $90 billion of fixed local service revenues in 2007. See Table 7. This is 5% lower than the fixed local service revenues shown in last year’s report. ƒ Non-incumbent LEC providers of local services, including competitive local exchange carriers (CLECs), wireless carriers and toll carriers, reported $23 billion of fixed local service revenues in 2007. See Table 7. This is 5% higher than the fixed local service revenues shown in last year’s report. ƒ Total toll service revenues increased during 2007 — from $64 billion to $65 billion. See Table 2. The data for 2007 generally were consistent with recent trends. ƒ Chart 1 illustrates that overall telecommunications revenues have been relatively constant since 2000. The chart shows how the wireless service share of the industry has grown rapidly while the toll service share of revenues has declined. 1 Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Industry Revenues: 2006 (rel. August 28, 2008). 2 ƒ Chart 2 illustrates how the share of universal service contributions by principal type of service provider has changed dramatically since 1997. Consistent with changes in revenues, the toll carrier share of contributions declined from 82% in 1997 to 31% today. USF, TRS, NANP and LNP rules prohibit the fund administrators from releasing company- specific information contained in FCC Form 499-A and FCC Form 499-Q worksheets. Revenue data for individual filers are not available to the public. Chart 1 End-User Telecommunications Revenues 3 Chart 2 Share of Universal Service Contributions By Principal Type of Contributor $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 B illion s of Dollar s Toll Service $89.2 $91.6 $93.3 $87.8 $79.3 $67.2 $59.0 $55.5 $52.4 $49.3 $48.7 $39.6 Wireless Service $30.2 $33.7 $43.8 $56.9 $68.5 $76.5 $85.3 $94.4 $100.7 $110.1 $115.9 $120.5 Local Service $69.1 $75.2 $78.6 $84.5 $87.7 $88.7 $86.5 $83.4 $82.4 $78.2 $75.0 $77.5 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 P 1997 Other Incumbent LECs 2.6% CLECs 0.8% RBOC Toll Service Providers 1.7% Other Toll Service Providers 79.9% RBOCs 11.8% Wireless Service Providers 3.3% Preliminary Third Quarter 2009 Other Incumbent LECs 3.5% CLECs 9.3% Other Toll Service Providers 7.7% Other Wireless 14.9% RBOCs 12.9% RBOC Wireless Providers 28.2% RBOC Toll Service Providers 23.4% 4 FCC Form 499-A Filing Requirements Virtually all providers of telecommunications must file FCC Form 499-A each year. 2 Telecommunications Reporting Worksheets are not filed directly with the Commission but rather with the Universal Service Administrative Company (USAC), which serves as the data collection agent. While the annual worksheets were due April 1, 2008, some providers filed late or submitted revised filings after that date. Year 2007 data do not include information from filings received after October 13, 2008 or information from filings that were incomplete. 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). 3 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: 4 • 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 Local Exchange Service Provider • Incumbent Local Exchange Carrier (incumbent LEC) • Interconnected Voice over Internet Protocol (interconnected VoIP) • Interexchange Carrier (IXC) • Local Reseller • Operator Service Provider (OSP) • Other Local Service Provider • Other Mobile Service Provider 2 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, entities providing interstate telecommunications exclusively to government or public safety entities, broadcasters and various non-profit entities 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. 3 Telecommunications providers are considered de minimis and thus are not required to contribute to universal service (or file FCC Form 499-Q) if their annual contributions to universal service would be less than $10,000. For universal service contribution purposes, underlying service providers treat de minimis firms as end users. 4 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 http://www.fcc.gov/Forms/Form499-A/499a- 2009.pdf In the 2004 through 2006 FCC Form 499-As, filers could select the category All Distance Service Provider. For the purpose of creating rollup statistics, filers who selected this category were reclassified based on secondary service categories selected by the filer and revenue information. In 2009, teleconferencing providers were directed to identify themselves as Other Toll Service Providers. 5 • Other Toll Service Provider • Paging and Messaging Service Provider • Payphone Provider • Private Service Provider • Prepaid Calling Card Provider • Satellite Service Provider • Shared-Tenant Service Provider • Specialized Mobile Radio - Dispatch • Toll Reseller • Wireless Data Service Provider Filers identified as Coaxial Cable Service Providers have been included with CAPs and CLECs for the purpose of creating summary statistics. Filers identified as Wireless Data Service Providers have been included with Other Mobile Service Providers. FCC Form 499-A filers are instructed to report amounts actually billed to customers. This means that filers should report revenues net of discounts, but without making adjustments to reflect uncollectible revenues or international settlement payments or receipts. 5 Most filers should be able to report revenues in this manner using information contained in their corporate books of account. Some service providers, however, have no business or regulatory requirements to record intrastate or international revenues separately from interstate revenues, or to use the detailed revenue categories contained in the worksheets. In addition, many wireless providers use the interim safe harbor percentages to estimate the interstate portion of their revenues. 6 FCC 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. Nonetheless, disaggregated data are likely to be less accurate than industry totals. Summary Tables Table 1 shows the major components of telecommunications revenues for 1998 through 2008. This table was created by aggregating the revenues in the major service classifications designated on FCC Form 499-A. FCC Form 499-Q data were used to provide preliminary figures for 2008. 5 Filers began to provide some information on uncollectible revenues starting with the February 1, 2003 FCC Form 499-Q filing. Beginning in the second quarter of 2003, contributions have been based on projected collected revenues, rather than billed revenues from a prior period. 6 See the Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A section III.C.3. available at http://www.fcc.gov/Forms/Form499-A/499a-2009.pdf . 6 Tables 2 and 3 provide a more detailed look at annual industry revenues over time. Generally, FCC Form 499-A revenue data can be tabulated in two distinct ways: by type of service provided and by type of business. Table 2 categorizes revenues by type of service and shows, for example, that carriers reported $121.2 billion in wireless service revenues for 2007. This total includes wireless service revenues from some carriers that are not identified as wireless carriers. In contrast, Table 3 shows that wireless service providers reported total revenues of $124.9 billion in 2007, including some revenues for fixed local and toll services. Data for 1992 through 1996 are contained in the spreadsheet version of the tables on the Commission’s website, but not in the PDF version. Revenue data for 1992 through 1996 were summarized from information filed on TRS worksheets. Revenue data for 1997 and 1998 were derived by combining TRS worksheet and universal service worksheet data. Starting with 1999, revenue data were summarized from FCC Form 499-A, which replaced both the TRS and universal service worksheets. Because of reporting changes, data for 1997 forward are not entirely consistent with data for prior years. For example, special access revenues were included with other access revenues prior to 1997 but have been included with local private line services since then. Similarly, through 1996, filers reported as other local and mobile revenues substantial amounts of customer premises equipment, billing and collection, and other types of revenues that are excluded from contributions to universal service. These revenues are now reported as non-telecommunications revenues. Both tables contain estimates of non-telecommunications revenues that had been reported in prior years. Based on staff estimates, the 1996 telecommunications revenues reported on TRS worksheets would have been $10.5 billion lower if revenues had been reported using current instructions. There are some inconsistencies as a result of changes in universal service worksheets. 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 2 would show a greater increase from 1997 to 1998 if the same reporting instructions had been used for each year. 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 2 probably continues to contain some switched toll revenues, perhaps significant amounts in some years. Changes in reporting procedures may have caused some of the large increase in non- telecommunications revenues that occurred in 2002. Prior to 2002, each legal entity providing telecommunications was required to file separately. Starting in 2002, entities meeting specific conditions were allowed to file on a consolidated basis. For some companies, the books at the consolidated-entity level include substantial amounts of non-telecommunications revenues for legal entities that do not individually provide telecommunications and therefore would not be required to file on an individual basis. Their revenues, however, must be included when filings are made on a consolidated basis because the revenues are recorded on the consolidated books. 7 In 2005, the reporting requirements changed for wireline broadband Internet access transmission provided on a non-common carrier basis. Revenues for these services were classified as U.S. telecommunications revenues on Line 406 through November 16, 2005. 7 From November 16, 2005 through August 13, 2006, such revenues were included on Line 406 at the level that the carrier was generating as of November 16, 2005 (“Freeze Level”). Revenues above the Freeze Level for that period were reported as non-U.S. telecommunications on Line 418 of the FCC Form 499-A and Line 117 of the FCC Form 499-Q. After August 13, 2006, revenues for all wireline broadband Internet access transmission provided on a non-common carrier basis are reported as non-U.S. telecommunications. Prior to the fourth quarter of 2006, a few CLECs included revenues from interconnected VoIP services as part of telecommunications revenue. Other interconnected VoIP service revenues were included on Line 418 – non-telecommunications revenues – but only by entities that were required to file for other reasons. Starting with the fourth quarter of 2006, all revenues from providing interconnected VoIP service must be included as telecommunications revenues in FCC Form 499 filings. 8 Thus, Table 6 shows that filers reported $1.5 billion of revenue on Lines 404.4 and 404.5 for 2006. It is not known how much greater the figure would be if all filers had been required to report all interconnected VoIP revenues on Line 404. Prior to the fourth quarter of 2008, a few teleconferencing service providers reported audio bridging service revenues as telecommunications. Starting with the fourth quarter of 2008, all audio bridging service revenues must be reported as telecommunications. Table 4 illustrates how data from the FCC Form 499-A are used to develop funding bases for USF, NANP, LNP and TRS contribution mechanisms. Each of the four programs is supported by a slightly different group of telecommunications providers under slightly different rules. As noted above, providers are considered de minimis for USF purposes if their annual contribution is expected to be less than $10,000. While such providers are thus not required to file FCC Form 499-Q, de minimis status does not exempt service providers from filing FCC Form 499-A because contributions to TRS, NANP and LNP are required regardless of the expected annual amount. Note also that NANP, LNP, and TRS each draw contributions from a larger pool of providers than does USF. Specifically, all telecommunications carriers in the United States must contribute to meet the costs of NANP (47 C.F.R. § 52.17), and all telecommunications carriers that provide service in areas covered by the regional LNP database must contribute to meet the costs of LNP (47 C.F.R. § 52.32). Thus, only those providers that are not carriers are not required to contribute. Cost recovery for TRS is slightly different. Every carrier providing interstate service must contribute to the TRS Fund (47 C.F.R. §64.604 7 Wireline Broadband Internet Access Services Order, 20 FCC Rcd at 13916, para. 113. 8 See 2006 Contribution Methodology Reform Order, 21 FCC Rcd at 7536-49, paras. 34-62. 8 (c)(5)(iii)(A)). In this case, providers that are not carriers, and carriers that do not provide interstate services are not required to contribute. 9 Tables 5 through 8 present detailed industry roll-ups by type of revenue and type of filer. Table 5 provides a detailed breakout of revenues for each of the FCC Form 499-A revenue categories used to report services provided to other filers for resale. Table 6 displays similar detail for each of the revenue categories used to report telecommunications service provided to end users. In a few cases, filers now provide some breakout detail that is not published. Specifically, amounts shown in Table 5 for Line 305 include revenues reported on Line 305.1 (for resale as telecommunications) and Line 305.2 (for resale as interconnected VoIP). Table 6 combines the amounts reported on Line 404.1 (traditional circuit switched local exchange service bundled with toll) and Line 404.3 (traditional circuit switched local exchange service provided without bundled toll). In 2007, 29% of circuit switched local exchange revenue was reported for service that was bundled with toll. Note that the toll portion of the bundles, reported on Line 404.2, was consolidated with Line 414 (other long distance) and is not included with Line 404 or in the 29% figure. Table 6 also combines amounts reported on Line 404.4 (interconnected VoIP offered in conjunction with a broadband connection) and Line 404.5 (interconnected VoIP offered independent of a broadband connection). In 2007, 59% of interconnected VoIP revenue was provided in conjunction with a broadband connection. As explained above, the totals shown for Line 414 include amounts reported on Line 404.2. This line also includes amounts reported on Line 414.1 (ordinary long distance other than service provided as part of an interconnected VoIP service) and on Line 414.2 (ordinary long distance provided as part of an interconnected VoIP service). In 2007, 3% of the total revenues summarized on Line 414 were for ordinary long distance provided in conjunction with interconnected VoIP service. Table 7 combines data from Tables 5 and 6 with data on non-telecommunications revenues to develop total industry revenues. Table 8 provides more aggregated revenue information by type of filers. The revenue categories presented in Tables 5 through 7 are explained in the FCC Form 499-A filing instructions. Table 9 presents an estimate of average revenue per conversation minute. Based on the methodology in Table 9, Commission staff estimated that end users were billed an average of 8 cents for each minute of interstate and international toll calling made during 2007. The average price for each interstate domestic conversation minute was estimated to be 7 cents during 2007. The average price for each international conversation minute was estimated to be 9 cents during 2007. The revenue per minute estimates presented in Table 9 and year-over-year changes in these estimates should be treated with caution for a number of reasons. For instance, terminating 9 See Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A, Figure 3 at 35, available at http://www.fcc.gov/Forms/Form499-A/499a-2009.pdf. Carriers that provide only international services are considered to be interstate carriers for TRS contribution purposes. 9 access minutes are used as a proxy for billed conversation minutes. In certain cases, the two measures track each other closely. Subscriber toll-free calls that terminate on dedicated access lines and some other classes of calls generate access minutes that are billed as terminating minutes only. Some calls, however, generate originating access minutes only or bypass incumbent LEC switched facilities on both ends and therefore generate no access minutes. Some subscriber toll-free calls, on the other hand, do not terminate on dedicated access lines and therefore may generate two terminating access minutes per conversation minute. Additionally, since 1999, NECA filings report total access minutes without separating originating and terminating minutes. The totals are allocated based on carrier common line (CCL) minutes reported in access tariff filings by incumbent LECs that are subject to price-cap regulation and in the NECA pool access tariff filings. Further, some toll calls handled over voice over Internet Protocol (VoIP) networks may terminate via local minutes rather than interstate access minutes. Also, some calls both originate and terminate on interconnected VoIP systems. On balance, the assumptions underlying the estimates probably result in an upward bias in the revenue per minute estimates. For recent years, the staff estimates that revenue per minute estimates may be overstated by as much as 20%. The methodology presented in Table 9 mitigates some problems associated with using terminating access minutes as a proxy for conversation minutes. For example, some conversation minutes do not result in incumbent LEC access minutes because they terminate on the facilities of CLECs. These carriers do not report access minutes. Table 9 presents estimates of these minutes based on CLEC shares of local service revenues. These amounts are used to adjust terminating access minutes. Moreover, the methodology presented in Table 9 adjusts terminating access minute totals to better reflect international traffic. International settlement minutes are reported based on the billing status of calls rather than where the calls actually originate. Thus, some U.S. billed calls actually originate in foreign points and vice versa. However, most U.S. billed calls originate in the United States and generate originating but not terminating access minutes. These minutes are added to the reported totals for terminating access minutes so that terminating access minutes better represent conversation minutes. Similarly, foreign billed minutes, which usually generate terminating access minutes, are removed from the terminating access minute total. One category of U.S. billed international calls merits special treatment. Country-direct and country-beyond calls are placed from foreign points, directly with U.S. carriers. Country- direct calls generally originate overseas and terminate in the United States. Such calls are billed by U.S. carriers, generate settlement payments to foreign carriers, and are reported in section 43.61 traffic data reports as U.S. billed calls. Country-beyond calls are similar, but both originate and terminate at foreign points. Country-direct calls result in terminating access minutes. Country-beyond calls generally do not. Unfortunately, section 43.61 data do not separate country-direct from country-beyond calls. This is not a problem for allocating originating access minutes between interstate and international calls, because neither type of call results in appreciable originating access minutes. In estimating interstate terminating access minutes, however, staff chose to subtract country-direct and country-beyond minutes. This means that the number of total interstate terminating minutes, which is used to represent 10 interstate conversation minutes, is biased downward. Staff did not include country-direct or country-beyond minutes with international conversation minutes because country-beyond revenues are reported separately as international-to-international service revenues on FCC Form 499-A and are therefore subtracted when calculating international revenue per minute. Country- direct revenues, however, remain in the revenue base but the corresponding minutes have been removed from the estimate of international conversation minutes. This bias may be offset by the fact that many international-to-international calls generate U.S. billed settlement minutes and are counted as conversation minutes. An increasing share of switched traffic either originates or terminates on wireless telephones. Some wireless minutes and some wireless revenues are included in the revenue per minute calculations. Terminating access minutes include calls that originate on a wireless telephone and terminate on a wireline telephone, but do not include any calls that terminate on wireless telephones. Switched revenues include all long distance charges that are itemized on wireless customers’ bills but do not include any portion of revenues reported as wireless monthly service or airtime charges. Today, most interstate wireless calls are billed under “bucket of minutes” plans and have no explicit toll charges associated with them. Staff does not have sufficient data to assess whether inclusion of some wireless toll minutes and some wireless carrier revenues results in an upward or downward bias in the revenue per minute calculations. Many LECs also offer service bundles that provide toll calling without generating any separate per-minute toll charges. These carriers allocate a portion of monthly plan revenues as toll charges. Some LECs transfer this toll revenue to affiliated toll carrier books and in some cases those toll carriers report the revenues as switched long distance service revenue. Other carriers, however, report all of their monthly service revenues as local exchange service revenues. Starting with the 2007 FCC Form 499-A filing, such amounts are separately reported on Line 404.2. As explained above, toll revenues associated with bundled plans were reclassified as Line 414 (ordinary long distance) for the purpose of creating roll-up statistics. Thus, the revenue-per-minute estimates are based on both minute and revenue data that includes LEC bundled service offerings. End-user switched toll revenue data also are problematic for other reasons. Through 1996, the figures shown are based on TRS gross revenue data. In order to translate reported gross revenues to end-user revenues, 80% of revenues reported by toll resellers were netted from the total. A second problem is that in some years, filers classified substantial amounts of switched service revenues as (non-switched) other toll. While significant effort has been devoted to identifying and reclassifying these amounts, the other toll category shows a $1.3 billion drop from 1997 to 1998, which suggests that the 1997 figure may still contain significant amounts of misreported switched service revenues. Starting in 1998, many toll carriers used fixed monthly charges to recover account maintenance, incumbent LEC presubscribed interexchange carrier charges (PICCs), and both federal and state universal service contributions. Some toll carriers reported some of these surcharges as local service tariffed PICC charges. An attempt was made to identify these amounts and include them with switched toll revenues. Some filers bill customers percentage surcharges to recover universal service contributions. While filers must separately identify the universal service 11 surcharges on their universal service worksheets, it is not possible to identify a precise amount that is attributable to interstate toll service. The Table 9 adjustments to reflect both PICC and universal service costs and end-user charges should be taken as approximate. Table 9 also shows a number of assumptions that were made in order to separate international revenue data from interstate revenue data. Filers did not separately report end-user revenues for international services for years before 1999. For 1999 and 2000, it appears that many FCC Form 499-A filings understate international revenues and overstate interstate revenues. This could happen if, for example, a filer split revenues between interstate and international service based on a ratio of interstate to international minutes, rather than on actual billings. This would not reduce contribution requirements for the filer but does make the breakout shown in Tables 5, 6, and 7 less reliable. For 2001, carriers reported $1.5 billion more international revenues in FCC Form 499-A filings than they did in section 43.61 filings. The section 43.61 international traffic data appears to be more reliable, but lacks breakouts of carrier’s carrier and end-user revenues. Based on staff analysis of the FCC Form 499-A data, a simple methodology is used to convert section 43.61 international traffic revenue data into estimates of international end-user revenues for message telephone service. The same methodology is used in all years. While the Commission does collect detailed international traffic data, there is no clean match between categories of minutes actually reported and the international service end-user revenue data presented in Table 9. The amounts of international-to-international revenues are estimated for 1996 and earlier. Also, an increasing amount of international traffic is being carried on resold private lines and via other new arrangements. It seems likely that much of this traffic is not being reported in section 43.61 traffic data reports. For these reasons, the breakout between interstate revenues per-minute and international revenues per-minute is likely to be significantly less accurate than the combined estimate. Table 10 presents an estimate of average revenue per conversation minute, net of access and universal service contribution costs. Revenues per minute net of access and universal service contribution costs have declined over the past 10 years. The table uses the data on minutes developed in Table 9 and therefore has the attendant uncertainties. The analysis also uses international settlement payment data which, while relatively good, include settlements associated with international-to-international traffic. The analysis does not account for special access payments from toll carriers to local exchange carriers. In some cases, toll carriers recover the cost of these services through charges that are reported as switched toll revenues and that therefore are reflected in per-minute revenue estimates. FCC Form 499-A asks filers to identify the share of their carrier’s carrier and end-user telecommunications revenues attributable to different regions of the country. Table 11 shows total end-user telecommunications revenues by region for local, toll and wireless filers. Table 12 provides data about the relative magnitude of universal service contributions from different classes of telecommunications providers. AT&T and MCI were classified as RBOC toll affiliates starting with 2006. 12 Since the second quarter of 2003, universal service contributions have been based on projected collected interstate and international end-user revenues rather than on actual billed revenues from a prior quarter. On the first day of the second month of each quarter, filers report preliminary data for billed revenues from the previous quarter, and project billed and collected universal service contribution base amounts for the upcoming quarter. For example, on November 1, 2008, filers reported data for the third quarter of 2008 and projected revenues for the first quarter of 2009. Far less detail is filed on the quarterly FCC Form 499-Q than on the annual FCC Form 499-A. Revenue detail for the historic quarter includes total, interstate and international U.S. telecommunications revenues, divided into carrier’s carrier and end-user categories. For the coming quarter, filers provide only billed and projected collected interstate and international end-user revenues. Roll-ups of the quarterly data are available on the Commission’s website at: http://www.fcc.gov/wcb/iatd/lec.html. Table 1 Overview of Telecommunications Industry Revenues 1/ (Dollar Amounts Shown in Millions) Preliminary 5/ 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Carrier's Carrier Revenues 2/ Local Service 3/ $29,374 $33,156 $36,621 $40,108 $38,412 $37,742 $38,546 $39,213 $39,392 $38,383 $38,075 Wireless Service 3,060 4,652 5,144 6,180 5,020 4,465 4,164 6,334 5,187 5,360 7,623 Toll Service 13,448 14,934 21,849 19,999 16,476 18,205 15,703 16,892 15,101 16,093 16,186 Intrastate 18,892 22,293 25,553 27,848 25,770 24,825 25,852 27,486 24,848 22,566 25,766 Interstate and International 4/ 26,990 30,449 38,060 38,439 34,138 35,587 32,561 34,953 34,831 37,270 36,117 Total $45,758 $52,742 $63,613 $66,287 $59,907 $60,412 $58,413 $62,439 $59,679 $59,836 $61,884 End User Revenues 2/ Local Service 3/ $75,189 $78,608 $84,526 $87,704 $88,712 $86,474 $83,407 $82,382 $78,215 $75,042 $77,502 Wireless Service 33,714 43,843 56,857 68,507 76,501 85,254 94,404 100,743 110,096 115,865 120,482 Toll Service 91,607 93,311 87,767 79,302 67,222 58,983 55,511 52,358 49,278 48,709 39,629 Intrastate 123,216 134,919 147,465 155,347 154,815 150,889 153,265 154,310 157,653 158,380 158,086 Interstate and International 4/ 77,294 80,844 81,685 80,165 77,619 79,822 80,057 81,173 79,937 81,235 79,527 Total $200,510 $215,763 $229,149 $235,513 $232,434 $230,711 $233,322 $235,482 $237,589 $239,615 $237,613 Total Revenues Local Service 3/ $104,563 $111,764 $121,147 $127,812 $127,123 $124,216 $121,953 $121,595 $117,607 $113,425 $115,577 Wireless Service 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 121,225 128,105 Toll Service 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 64,802 55,815 Intrastate 142,108 157,212 173,018 183,195 180,585 175,714 179,117 181,796 182,501 180,946 183,852 Interstate and International 4/ 104,284 111,293 119,745 118,605 111,756 115,409 112,617 116,125 114,768 118,505 115,645 Total $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,451 $299,497 Note: Detail may not add to totals due to rounding. Data for 1997 available in the Zip File version of this table or in prior versions of the report. 1/ Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements. 2/ Carrier's carrier revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale. This includes, for example, access services that local exchange carriers provide to toll carriers. Sales to de minimis resellers, end-user customers, governments, non-profits, and any other non-contributors are treated as end-user revenues. Filers contribute to the universal service funding mechanisms based on their end-user interstate revenues. See Table 4 for further details on contribution bases. 3/ Payphone revenues are included with local service revenues in this table. 4/ Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table through 2007, but are not included in the universal service contribution base. These revenues are not included in preliminary 2008 data. 5/ Preliminary 2008 data are based on FCC Form 499-Q quarterly filings through February 28, 2009. 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 2008 are based on type of filer rather than on data filed by service. Source: Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets, with data from 1997 FCC Form 431 TRS Worksheets used for service providers not required to file a Universal Service Worksheet. Starting in 1999, data summarized from FCC Form 499-A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. Table 2 Telecommunications Industry Revenues by Service (Dollar Amounts Shown in Millions) TRS Universal Service FCC Form 499-A Data Data & TRS Data 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Local Exchange $48,717 $53,771 $59,245 $64,940 $69,947 $72,346 $71,320 $70,606 $68,238 $66,506 $63,264 $62,790 Pay Telephone 1/ 2,182 2,536 2,218 1,932 1,585 1,192 1,063 1,002 924 659 470 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 24,307 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 3,227 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 10,141 Access 2/ 27,812 21,423 18,449 18,105 17,017 15,096 13,955 12,972 12,352 11,822 11,392 10,543 Universal Service Surcharges on Local Service Bills 4/ 103 260 575 1,301 1,410 1,783 1,862 2,227 2,133 1,947 Additional Revenues from TRS Worksheets 595 595 Total Local Service and Payphone 88,647 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 113,425 Wireless Service 23,444 32,760 36,240 48,117 61,505 74,006 80,678 88,023 96,450 104,489 112,442 117,939 Universal Service Surcharges on Wireless Service Bills 4/ 345 379 495 681 842 1,696 2,118 2,587 2,841 3,286 Additional Revenues from TRS Worksheets 189 189 Total Wireless Service 3/ 23,444 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 121,225 Operator 1/ 10,975 12,002 12,205 10,049 11,406 10,389 7,902 6,567 6,542 6,631 5,577 5,874 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 42,518 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 12,080 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 1,661 Universal Service Surcharges on Toll Service Bills 4/ 1,810 2,983 3,467 3,927 3,767 2,905 2,577 2,458 2,340 2,669 Additional Revenues from TRS Worksheets 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 64,802 Total Telecommunications 3/ 211,782 231,168 246,392 268,505 292,762 301,799 292,341 291,122 291,735 297,921 297,269 299,451 Non-Telecommunications 3/ 10,474 25,633 27,944 33,144 42,261 48,036 60,406 65,186 71,493 86,764 101,061 131,615 Total Reported Revenues 222,256 256,801 272,019 301,648 335,023 349,835 352,747 356,308 363,227 384,685 398,329 431,066 Service Reported as: Intrastate 3/ 127,849 133,654 142,108 157,212 173,018 183,195 180,585 175,714 179,129 181,796 182,501 180,946 Interstate and International 94,407 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,605 116,125 114,768 118,505 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 $299,451 See notes on next page. Notes for Table 2. Note: Detail may not add to totals due to rounding. Data for 1992 through 1997 are available in the Zip File version of this table and in prior year reports. 1/ TRS filers generally reported pay telephone revenues as local service revenues, access revenues or operator toll revenues. The Universal Service and FCC Form 499-A worksheets contain a separate category for payphone coin revenues. Starting in 1997, payphone revenues include payphone compensation received from toll carriers. 2/ TRS Worksheet filers generally reported special access revenues as access revenues. Reporting changes implemented with the Universal Service Worksheet explain the increase in local private line revenues and the fall in access revenues shown for 1997. TRS Worksheet filers included subscriber line charges with other access charges. For 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 incumbent LECs as well as $1.2 billion of PICC pass-through charges levied by toll carriers. 3/ Significant amounts of enhanced services, billing and collection, CPE and other non-telecommunications revenues were reported in the TRS mobile and other local service categories for 1996. Universal Service Worksheet filers report these revenues in the non-telecommunications category. For 1996, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that Tier 1 incumbent LECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of amounts reported as mobile service revenues. These amounts have been removed from Other Local and moved to the Non-Telecommunications category. 4/ Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless and toll revenues. In calculating the totals shown, reported amounts for each filer are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll intrastate, interstate and international end-user revenues for that filer. Source: Data for 1992 through 1996 summarized from FCC Form 431 TRS Worksheets. Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets, with data from 1997 TRS Worksheets used for service providers not required to file a Universal Service Worksheet. Starting in 1999, data summarized from FCC Form 499-A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. Table 3 Telecommunications and Interconnected VoIP Revenues Reported by Type of Carrier 1/ (Dollar Amounts Shown in Millions) Universal Service FCC Form 499-A Data & TRS Data Service Provider Category 2/ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Incumbent Local Exchange Carriers 2/ $105,154 $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 $105,496 $103,561 $99,997 $93,885 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 1,919 3,348 5,652 9,814 12,998 13,043 15,509 15,112 16,930 17,276 17,476 Interconnected VoIP 514 2,394 Local Resellers 206 410 511 879 1,393 1,538 721 1,215 630 460 594 Other Local Exchange Carriers 157 36 171 11 329 406 338 245 216 124 181 Private Service Providers 112 147 87 39 15 281 267 532 770 1,080 1,031 Shared-Tenant Service Providers 87 93 87 202 46 42 22 22 22 19 14 Competitors of Incumbent LECs 2,481 4,034 6,508 10,945 14,781 15,309 16,857 17,126 18,568 19,473 21,690 Fixed Local Service Providers 107,634 112,268 118,725 127,103 132,666 130,300 126,337 122,622 122,128 119,470 115,575 Payphone Providers 933 1,101 1,213 972 836 641 523 445 481 435 388 Wireless Telephony Including Cellular, 29,944 33,139 46,513 59,823 71,887 78,568 88,168 98,329 107,834 116,971 123,968 Personal Communications Service (PCS) and SMR Telephony Carriers 3/ Paging & Messaging Service 3/ 2,861 3,161 3,232 3,102 2,197 1,473 1,007 872 579 555 607 Specialized Mobile Radio (SMR) 186 191 214 206 33 46 226 48 188 Dispatch Wireless Data Service Providers and Other Mobile Service Providers 3/ 225 731 221 164 110 220 135 218 169 178 180 Wireless Service Providers 33,030 37,032 50,152 63,280 74,596 80,467 89,342 99,465 108,809 117,752 124,943 Interexchange Carriers (IXCs) 79,080 83,443 87,570 87,311 81,272 68,146 61,246 51,589 46,856 44,083 43,701 Operator Service Providers (OSPs) 603 590 337 635 611 554 567 523 548 631 595 Prepaid Calling Card Providers 519 888 866 727 133 460 812 1,635 1,828 1,713 2,195 Satellite Service Providers 1,011 475 280 336 373 406 663 721 714 444 708 Toll Resellers 8,010 9,885 9,211 10,641 8,797 9,279 9,294 12,192 13,362 9,943 8,314 Other Toll Carriers including VoIP 348 710 150 1,758 2,516 2,089 2,339 2,543 3,195 2,798 3,031 Toll Carriers and Audio Bridge Service Providers Toll Service Providers 89,570 95,992 98,414 101,407 93,702 80,934 74,920 69,204 66,503 59,611 58,545 Adjustments 4/ 00000000000 Total Telecommunications Revenues $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $295,742 $299,451 1/ Data for 1992 through 1996 are available in the ZIP file version of this table. 2/ 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. Similarly, paging carriers typically identified themselves as other mobile carriers. 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. 3/ Significant amounts of enhanced service, billing and collection, CPE and other non-telecommunications revenues were reported on TRS worksheets by incumbent local exchange carriers (Incumbent LECs) and wireless carriers through 1996. Universal Service Worksheet filers report these revenues in the non-telecommunications category. For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that Tier 1 incumbent LECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of amounts reported as mobile service revenues. These amounts have been removed from incumbent LEC totals. 4/ Adjustments (made for 1992 through 1996) include some amounts withheld to preserve confidentiality and revisions made after the initial publication of the data. Source: Data compiled from FCC Form 431, FCC Form 457 and FCC Form 499-A filings. Table 4 Contribution Base Revenues By Program 1/: 2007 (Dollar Amounts Shown in Millions) 2007 Revenues subject to universal service contribution Billed interstate and international end-user revenues [ Line 412(e) + Line 420(d) + Line 420(e) ] $80,349 less revenues for international - to - international services [ Line 412(e) ] 886 less international revenues of international-only filers and international revenues that were excluded because of 3,978 the 12% rule 2/ less interstate and other international revenues for 2,435 filers who are de minimis or otherwise exempt from universal service support requirements 50 less uncollectible contribution base revenues [ Line 422(d) + Line 422(e) ] 1,301 (Does not include uncollectible amounts associated with revenues excluded above.) equals $74,133 Revenues subject to TRS contribution Interstate and international end-user revenues $80,349 less interstate and international revenues for 114 filers who identify themselves as private service providers or 799 as shared tenent service providers and who therefore are exempt from telecommunications relay service (TRS) contribution requirements if they provide no carrier services less interstate and international revenues for services provided for resale but reported as end user 230 because it was provided to carriers that do not contribute to universal service support mechanisms [ Line 511(b) ] equals $79,320 Revenues subject to NANPA and LNP contribution Total telecommunications service end-user revenues (including intrastate, interstate and international) $239,615 less telecommunications revenues for 546 filers who identify themselves as private service providers, 786 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 ? less telecommunications revenues for services provided for resale but reported as end user because it 279 was provided to carriers that do not contribute to universal service support mechanisms [ Line 511 (a) ] equals $238,551 1/ 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 13, 2008. The universal service administrator continues to receive additional and corrected filings. Exempt amounts were based on revenues and the filer type information contained in the FCC Form 499-A filings. The fund administrators may use carrier type, revenue type, line 603 exemption certifications and additional information requested from filers to determine which filers must contribute. The universal service fund administrator bills delinquent filers based on estimated revenues and may, in some instances, include estimated revenue amounts in contribution base amounts. Note also that universal service contribution factors are set quarterly based on FCC Form 499-Q filings. FCC Form 499-A data are used for true-up and auditing purposes. Also note that local number portability contribution amounts are determined by region of the country rather than on a nationwide basis. As a result of these factors, actual contribution bases have been based on different amounts than those shown. 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. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2007 (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 .1 Provided as unbundled network elements (UNEs) $2,475 $234 $0 $2,709 $115 $4 * $119 .2 Provided under other arrangements 521 83 0 604 99 81 * 180 Total Line 303 2,996 317 0 3,313 214 85 * 299 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 2,472 2,156 0 4,627 2,019 1,120 2 3,141 .2 Provided as unbundled network elements or other contract arrangement 364 499 0 862 67 59 * 126 Total Line 304 2,835 2,654 0 5,490 2,086 1,178 2 3,267 305 Local private line & special access 553 10,924 0 11,477 273 1,609 * 1,882 306 Payphone compensation from toll carriers 32 48 0 80 1 10 * 11 307 Other local telecommunications service revenues 1,673 699 0 2,371 35 19 0 54 308 Universal service support revenues received from 913 794 0 1,707 606 1,922 * 2,528 Federal or state sources Total fixed local service provided for resale 9,002 15,435 0 24,437 3,214 4,822 3 8,039 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 64 0 0 64 25 32 0 56 Total mobile service provided for resale 64 0 0 64 25 32 0 56 Toll service 310 Operator and toll calls with alternative billing 3 0 0 3 * * 0 * arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 147 * 0 147 5 2 * 6 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 12 9 0 21 6 5 0 11 313 Satellite services 0 0 0 0 0 0 0 0 314 All other long distance services * * 0 * 9 2 * 11 Total toll service provided for resale 162 9 0 171 19 9 * 28 315 Total service provided for resale (carrier's carrier) $9,228 $15,444 $0 $24,672 $3,258 $4,863 $3 $8,124 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. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2007 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 .1 Provided as unbundled network elements (UNEs) $183 $204 $2 $388 * * * $1 .2 Provided under other arrangements 166 58 6 230 0 0 0 0 Total Line 303 349 262 7 618 * * * 1 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 589 520 4 1,113 * * * * .2 Provided as unbundled network elements or other contract arrangement 119 105 38 262 0 0 0 0 Total Line 304 708 626 41 1,375 * * * * 305 Local private line & special access 639 576 * 1,215 * * * * 306 Payphone compensation from toll carriers * * * * 38 68 3 109 307 Other local telecommunications service revenues 51 4 * 55 1 * * 1 308 Universal service support revenues received from 54 31 * 86 1 * 0 1 Federal or state sources Total fixed local service provided for resale 1,801 1,499 49 3,349 41 69 3 112 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 1 3 0 4 0 0 0 0 Total mobile service provided for resale 1 3 0 4 0 0 0 0 Toll service 310 Operator and toll calls with alternative billing 2 51 * 52 1 1 * 2 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 179 221 107 507 * * 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 228 675 13 915 0 0 0 0 313 Satellite services 0 0 * * 0 0 0 0 314 All other long distance services 28 8 1 36 * * 0 * Total toll service provided for resale 436 954 121 1,512 1 1 * 2 315 Total service provided for resale (carrier's carrier) $2,239 $2,456 $170 $4,864 $42 $69 $3 $114 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. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2007 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 .1 Provided as unbundled network elements (UNEs) $3 * * $3 * * $0 * .2 Provided under other arrangements 3.2 1.5 0 4.7 0 0 0 0 Total Line 303 6 2 * 8 * * 0 * 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 2 1 * 3 * * 0 * .2 Provided as unbundled network elements or other contract arrangement 18 18 * 36 1 * 0 1 Total Line 304 20 19 * 39 1 * 0 1 305 Local private line & special access 21 7 0 28 1 2 0 2 306 Payphone compensation from toll carriers * * 0 * * * 0 * 307 Other local telecommunications service revenues 1 0 0 1 * 7 0 7 308 Universal service support revenues received from 174 666 * 840 * 6 0 6 Federal or state sources Total fixed local service provided for resale 222 693 * 916 2 15 0 17 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 4,060 1,115 4 5,179 14 10 * 24 Total mobile service provided for resale 4,060 1,115 4 5,179 14 10 * 24 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 355 271 2 628 2 2 0 3 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 1 * 0 1 0 0 0 0 313 Satellite services 5 3 0 7 0 0 1 1 314 All other long distance services 1 * 0 1 * * 0 * Total toll service provided for resale 363 274 2 638 2 2 1 5 315 Total service provided for resale (carrier's carrier) $4,645 $2,083 $6 $6,734 $18 $27 $1 $46 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. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2007 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 .1 Provided as unbundled network elements (UNEs) $31 $19 $18 $67 $2,807 $461 $20 $3,287 .2 Provided under other arrangements 182 6 * 188 971 230 6 1,207 Total Line 303 213 25 18 256 3,778 691 26 4,494 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 104 88 7 198 5,185 3,884 13 9,082 .2 Provided as unbundled network elements or other contract arrangement 91 78 5 174 659 758 43 1,461 Total Line 304 194 165 12 372 5,844 4,643 56 10,543 305 Local private line & special access 303 464 60 827 1,789 13,581 61 15,431 306 Payphone compensation from toll carriers * * * 1 71 126 3 200 307 Other local telecommunications service revenues 21 6 * 27 1,782 734 1 2,517 308 Universal service support revenues received from 30 2 0 31 1,778 3,421 * 5,198 Federal or state sources Total fixed local service provided for resale 760 662 91 1,513 15,042 23,195 146 38,383 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 22 11 0 33 4,186 1,171 4 5,360 Total mobile service provided for resale 22 11 0 33 4,186 1,171 4 5,360 Toll service 310 Operator and toll calls with alternative billing 25 55 29 110 32 107 30 169 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 2,024 4,457 4,390 10,871 2,712 4,952 4,499 12,163 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 297 1,838 222 2,356 543 2,527 234 3,304 313 Satellite services 6 104 58 167 10 107 59 176 314 All other long distance services 4 153 76 233 42 164 76 282 Total toll service provided for resale 2,356 6,608 4,774 13,737 3,339 7,857 4,897 16,093 315 Total service provided for resale (carrier's carrier) $3,138 $7,281 $4,865 $15,283 $22,566 $32,222 $5,047 $59,836 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. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2007 (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: .1 & .3 Traditional Circuit Switched $33,266 $1 $0 $33,268 $7,075 $20 $0 $7,094 .4 & .5 Interconnected Voice over Internet Protocol $0 $0 $0 $0 $2 * $0 $2 405 Tariffed subscriber line charges and PICC charges 141 6,925 0 7,066 53 1,706 * 1,759 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 33,407 6,927 0 40,334 7,129 1,726 * 8,855 406 Local private line and special access service 2,648 2,401 0 5,049 626 509 * 1,135 407 Payphone coin revenues (local and long distance) 118 * 0 118 21 1 * 22 408 Other local telecommunications service revenues 362 9 0 371 75 1 * 76 Line 403 surcharges on fixed local service 1/ 190 1,009 0 1,199 31 228 0 260 Total fixed local service provided to end users 36,724 10,346 0 47,070 7,882 2,466 * 10,348 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 14 0 0 14 267 57 * 323 410 Message charges including roaming, but excluding 46 0 0 46 36 17 * 53 toll charges Line 403 surcharges on mobile service 1/ * 0 0 * 1 7 0 8 Total mobile service provided to end users 60 0 0 60 304 81 * 385 Toll service 411 Prepaid calling card (including card sales to * * 0 * * * * 1 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 0 0 0 0 0 0 foreign points 413 Operator and toll calls with alternative billing 73 1 0 73 8 1 * 8 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 1,765 98 0 1,864 203 44 2 248 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 898 1 0 898 85 6 * 91 416 Satellite services 0 0 0 0 1 0 0 1 417 All other long distance services 16 1 * 17 3 * 0 3 Line 403 surcharges on toll service 1/ 6 11 0 17 2 4 * 6 Total toll service provided to end users 2,758 111 * 2,869 301 55 2 358 Total telecommunications and interconnected VoIP 39,542 10,457 * 49,998 8,487 2,601 2 11,091 service provided to end users 422 Uncollectible revenue/bad debt expense associated 578 99 * 677 113 26 * 139 with end user revenues other than Line 412 423 Net universal service contribution base revenues $38,963 $10,358 * $49,321 $8,374 $2,576 $2 $10,952 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2007 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: .1 & .3 Traditional Circuit Switched $5,883 $151 $2 $6,036 * * $0 * .4 & .5 Interconnected Voice over Internet Protocol $2,624 $1,031 $121 $3,777 $0 $0 $0 $0 405 Tariffed subscriber line charges and PICC charges 10 957 * 967 * 0 0 * levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 8,517 2,139 123 10,779 * * 0 * 406 Local private line and special access service 1,126 726 4 1,855 2 * * 2 407 Payphone coin revenues (local and long distance) 1 * * 1 117 7 * 124 408 Other local telecommunications service revenues 158 27 * 185 12 * * 12 Line 403 surcharges on fixed local service 1/ 58 304 * 362 * * 0 * Total fixed local service provided to end users 9,859 3,196 127 13,182 130 7 1 138 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 9 4 * 13 0 0 0 0 410 Message charges including roaming, but excluding * * 0 1 1 * 0 1 toll charges Line 403 surcharges on mobile service 1/ * * 0 * 0 0 0 0 Total mobile service provided to end users 10 4 * 14 1 * 0 1 Toll service 411 Prepaid calling card (including card sales to 1 3 12 16 7 2 1 10 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 19 19 0 0 0 0 foreign points 413 Operator and toll calls with alternative billing 15 13 2 29 102 23 * 126 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 973 1,202 295 2,470 * * * * 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 150 448 55 652 0 0 0 0 416 Satellite services 1 * 10 12 0 0 0 0 417 All other long distance services 138 85 15 238 * * 0 * Line 403 surcharges on toll service 1/ 7 184 3 194 * * 0 * Total toll service provided to end users 1,284 1,934 412 3,630 110 25 1 136 Total telecommunications and interconnected VoIP 11,152 5,134 539 16,826 241 32 2 275 service provided to end users 422 Uncollectible revenue/bad debt expense associated 218 73 8 298 12 3 * 14 with end user revenues other than Line 412 423 Net universal service contribution base revenues $10,935 $5,062 $512 $16,509 $229 $30 $2 $260 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2007 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: .1 & .3 Traditional Circuit Switched $48 $7 $0 $55 $9 * $0 $9 .4 & .5 Interconnected Voice over Internet Protocol * * $0 * $3 $1 * $3 405 Tariffed subscriber line charges and PICC charges * 7 0 8 0 * 0 * levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 48 14 0 63 12 1 * 13 406 Local private line and special access service 19 1 0 20 31 1 0 32 407 Payphone coin revenues (local and long distance) 0 0 0 0 * 0 0 * 408 Other local telecommunications service revenues 19 1 0 20 14 2 0 16 Line 403 surcharges on fixed local service 1/ * 1 0 1 * * 0 * Total fixed local service provided to end users 87 17 0 104 57 4 * 61 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 72,218 21,644 185 94,048 620 95 1 715 410 Message charges including roaming, but excluding 13,119 3,760 157 17,036 39 9 * 48 toll charges Line 403 surcharges on mobile service 1/ 524 2,716 17 3,256 3 10 * 13 Total mobile service provided to end users 85,861 28,120 359 114,340 661 114 1 776 Toll service 411 Prepaid calling card (including card sales to 17 3 2 23 49 29 * 78 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 * * 0 0 * * foreign points 413 Operator and toll calls with alternative billing 47 23 * 70 1 * * 2 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 502 1,007 1,031 2,540 3 4 * 7 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 * 0 0 * 416 Satellite services 16 10 * 26 * * * * 417 All other long distance services 4 7 3 13 * 0 0 * Line 403 surcharges on toll service 1/ 3 111 3 117 * 4 * 5 Total toll service provided to end users 589 1,162 1,040 2,791 53 38 1 92 Total telecommunications and interconnected VoIP 86,537 29,299 1,399 117,235 772 155 2 929 service provided to end users 422 Uncollectible revenue/bad debt expense associated 1,658 546 27 2,231 8 2 * 10 with end user revenues other than Line 412 423 Net universal service contribution base revenues $84,879 $28,753 $1,371 $115,003 $764 $154 $2 $919 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2007 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: .1 & .3 Traditional Circuit Switched $2,810 $10 $1 $2,821 $49,090 $189 $3 $49,282 .4 & .5 Interconnected Voice over Internet Protocol $15 $17 $1 $33 $2,644 $1,050 $122 $3,815 405 Tariffed subscriber line charges and PICC charges 2 340 * 342 205 9,936 * 10,141 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 2,827 367 2 3,196 51,939 11,174 125 63,239 406 Local private line and special access service 129 653 1 783 4,582 4,290 5 8,876 407 Payphone coin revenues (local and long distance) 4 2 * 6 259 10 1 270 408 Other local telecommunications service revenues 24 4 2 30 664 44 3 710 Line 403 surcharges on fixed local service 1/ 18 107 * 125 298 1,649 * 1,947 Total fixed local service provided to end users 3,002 1,132 6 4,140 57,742 17,167 133 75,042 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 164 51 2 216 73,291 21,850 188 95,329 410 Message charges including roaming, but excluding 42 20 2 65 13,282 3,808 160 17,250 toll charges Line 403 surcharges on mobile service 1/ 2 7 * 9 530 2,739 17 3,286 Total mobile service provided to end users 207 78 4 289 87,103 28,397 365 115,865 Toll service 411 Prepaid calling card (including card sales to 295 214 2,834 3,343 370 251 2,850 3,470 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 866 866 0 0 886 886 foreign points 413 Operator and toll calls with alternative billing 543 331 167 1,042 788 391 169 1,349 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 6,893 12,410 3,923 23,226 10,338 14,765 5,251 30,355 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 566 5,857 711 7,135 1,699 6,312 766 8,777 416 Satellite services 15 135 206 356 33 145 217 395 417 All other long distance services 74 358 104 536 235 451 122 808 Line 403 surcharges on toll service 1/ 55 2,047 227 2,330 73 2,363 234 2,669 Total toll service provided to end users 8,440 21,352 9,040 38,833 13,535 24,678 10,496 48,709 Total telecommunications and interconnected VoIP 11,650 22,562 9,050 43,262 158,380 70,241 10,994 239,615 service provided to end users 422 Uncollectible revenue/bad debt expense associated 323 320 119 761 2,909 1,067 154 4,130 with end user revenues other than Line 412 423 Net universal service contribution base revenues $11,327 $22,242 $8,065 $41,634 $155,471 $69,174 $9,954 $234,599 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 7 Total Revenues: 2007 (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 $45,577 $25,733 $0 $71,310 $11,075 $7,277 $3 $18,354 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 149 48 0 197 21 11 * 33 [Lines 306 and 407] Mobile service 123 0 0 123 329 112 * 441 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 2,920 120 * 3,040 321 64 2 387 [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 48,769 25,901 * 74,670 11,745 7,464 5 19,214 Total telecommunications and IVoIP service provided 9,228 15,444 0 24,672 3,258 4,863 3 8,124 for resale (from Table 5) Total telecommunications and IVoIP service provided to 39,542 10,457 * 49,998 8,487 2,601 2 11,091 end users (from Table 6) Total telecommunications and IVoIP service revenues 48,769 25,901 * 74,670 11,745 7,464 5 19,214 418 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 .1 bundled with circuit switched local exchange service - - - - - - - - - 1,078 - - - - - - - - - 905 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - 0 - - - - - - - - - 12 .3 other - - - - - - - - - 18,725 - - - - - - - - - 3,185 419 Gross billed revenues from all sources - - - - - - - - - 94,473 - - - - - - - - - 23,317 421 Uncollectible revenue/bad debt expense associated 919 226 with gross billed revenues Total collected revenues from all sources $93,554 $23,091 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. Table 7 Total Revenues: 2007 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 $11,659 $4,694 $176 $16,530 $16 $1 * $17 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 1 * * 1 155 75 3 233 [Lines 306 and 407] Mobile service 11 7 * 18 1 * 0 1 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 1,720 2,889 533 5,142 111 26 1 138 [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 13,391 7,590 709 21,690 282 102 4 388 Total telecommunications and IVoIP service provided 2,239 2,456 170 4,864 42 69 3 114 for resale (from Table 5) Total telecommunications and IVoIP service provided to 11,152 5,134 539 16,826 241 32 2 275 end users (from Table 6) Total telecommunications and IVoIP service revenues 13,391 7,590 709 21,690 282 102 4 388 418 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 .1 bundled with circuit switched local exchange service - - - - - - - - - 6,378 - - - - - - - - - 3 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - 633 - - - - - - - - - 2 .3 other - - - - - - - - - 21,653 - - - - - - - - - 26 419 Gross billed revenues from all sources - - - - - - - - - 50,354 - - - - - - - - - 420 421 Uncollectible revenue/bad debt expense associated 643 17 with gross billed revenues Total collected revenues from all sources $49,711 $403 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. Table 7 Total Revenues: 2007 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 $309 $711 * $1,020 $59 $19 * $78 [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 89,921 29,235 363 119,519 676 124 1 801 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 952 1,436 1,041 3,429 55 40 2 96 [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 91,182 31,382 1,405 123,968 790 182 3 975 Total telecommunications and IVoIP service provided 4,645 2,083 6 6,734 18 27 $1 46 for resale (from Table 5) Total telecommunications and IVoIP service provided to 86,537 29,299 1,399 117,235 772 155 2 929 end users (from Table 6) Total telecommunications and IVoIP service revenues 91,182 31,382 1,405 123,968 790 182 3 975 418 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 .1 bundled with circuit switched local exchange service - - - - - - - - - 979 - - - - - - - - - 35 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - * - - - - - - - - - 1 .3 other - - - - - - - - - 42,371 - - - - - - - - - 1,702 419 Gross billed revenues from all sources - - - - - - - - - 167,318 - - - - - - - - - 2,712 421 Uncollectible revenue/bad debt expense associated 2,914 13 with gross billed revenues Total collected revenues from all sources $164,404 $2,699 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. Table 7 Total Revenues: 2007 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 $3,758 $1,792 $96 $5,646 $72,453 $40,226 $276 $112,954 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 4 2 * 7 331 136 4 470 [Lines 306 and 407] Mobile service 229 89 4 322 91,289 29,567 369 121,225 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 10,797 27,960 13,814 52,570 16,874 32,535 15,393 64,802 [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 14,788 29,843 13,914 58,545 180,946 102,464 16,042 299,451 Total telecommunications and IVoIP service provided 3,138 7,281 4,865 15,283 22,566 32,222 5,047 59,836 for resale (from Table 5) Total telecommunications and IVoIP service provided to 11,650 22,562 9,050 43,262 158,380 70,241 10,994 239,615 end users (from Table 6) Total telecommunications and IVoIP service revenues 14,788 29,843 13,914 58,545 180,946 102,464 16,042 299,451 418 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 .1 bundled with circuit switched local exchange service - - - - - - - - - 2,427 - - - - - - - - - 11,804 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - 13 - - - - - - - - - 662 .3 other - - - - - - - - - 31,488 - - - - - - - - - 119,149 419 Gross billed revenues from all sources - - - - - - - - - 92,473 - - - - - - - - - 431,066 421 Uncollectible revenue/bad debt expense associated 944 5,676 with gross billed revenues Total collected revenues from all sources $91,529 $425,390 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. Table 8 Revenues by Type of Carrier 1/: 2007 (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 $24,437 $64 $171 $24,672 $47,070 $60 $2,869 $49,998 Other Incumbent Local Exchange Carriers (LECs) 8,039 56 28 8,124 10,348 385 358 11,091 Total Incumbent LECs 32,476 120 199 32,795 57,418 444 3,227 61,089 Competitive Access Providers (CAPs) and Competitive 2,971 1 970 3,941 10,642 8 2,885 13,535 Local Exchange Carriers (CLECs) Local Resellers 101 0 1 102 328 2 161 491 Private Service Providers 108 2 420 530 78 2 421 501 Shared-Tenant Service Providers * 0 * * 10 * 4 14 Interconnected VoIP Providers 95 1 67 163 2,087 * 143 2,230 Other Local Service Providers 74 0 53 127 37 1 16 54 Total Local Competitors 3,349 4 1,512 4,864 13,182 14 3,630 16,826 Fixed Local Service Providers 35,825 124 1,711 37,660 70,600 458 6,857 77,915 Payphone Service Providers 112 0 2 114 138 1 136 275 Wireless Telephony Including Cellular, Personal 916 5,179 638 6,734 104 114,340 2,791 117,235 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 7 12 3 23 3 577 4 585 Specialized Mobile Radio (SMR) Dispatch * 1 0 1 * 185 2 187 Wireless Data and Other Mobile Service Providers 9 12 1 22 58 14 86 157 Wireless Service Providers 933 5,204 643 6,779 165 115,116 2,883 118,164 Interexchange Carriers (IXCs) 1,183 * 10,277 11,460 3,710 116 28,415 32,241 Operator Service Providers (OSPs) * 3 68 71 3 0 521 524 Prepaid Calling Card Providers * 12 477 489 * 1 1,705 1,706 Satellite Service Providers * 4 213 217 0 16 476 491 Toll Resellers 91 13 1,330 1,434 365 136 6,379 6,881 VoIP Toll Providers 92 0 136 228 0 0 81 81 Other Toll Carriers 147 * 1,238 1,384 61 20 1,256 1,337 Toll Service Providers 1,513 33 13,737 15,283 4,140 289 38,833 43,262 All Filers $38,383 $5,360 $16,093 $59,836 $75,042 $115,864 $48,709 $239,615 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ 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 Coaxial Cable Service Providers have been re-categorized as CLECs for the purpose of creating summary statistics. 2/ Telecommunications and interconnected VoIP 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 revenues and are subject to contribution requirements. Table 8 Revenues by Type of Carrier 1/: 2007 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 $10,358 $48,769 $25,901 $0 * $74,670 $19,803 $94,473 Other Incumbent Local Exchange Carriers (ILECs) 2,578 11,745 7,464 0 5 19,214 4,102 23,317 Total ILECs 12,936 60,514 33,365 0 5 93,885 23,905 117,790 Competitive Access Providers (CAPs) and Competitive 4,112 11,324 5,865 1 287 17,476 8,133 25,610 Local Exchange Carriers (CLECs) Local Resellers 145 392 136 * 66 594 270 863 Private Service Providers 331 305 630 4 92 1,031 6,743 7,774 Shared-Tenant Service Providers 3 10 3 0 1 14 50 64 Shared-Tenant Service Providers 953 1,296 855 6 236 2,394 13,126 15,520 Other Local Service Providers 29 64 102 8 7 181 342 523 Total Local Competitors 5,574 13,391 7,590 19 690 21,690 28,664 50,354 Fixed Local Service Providers 18,510 73,905 40,955 19 695 115,575 52,569 168,144 Payphone Service Providers 31 282 102 0 4 388 31 420 Wireless Telephony Including Cellular, Personal 30,124 91,182 31,382 * 1,404 123,968 43,350 167,318 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 90 506 101 * * 607 246 853 Specialized Mobile Radio (SMR) Dispatch 22 166 22 0 * 188 159 347 Wireless Data and Other Mobile Service Providers 44 117 59 0 3 180 1,333 1,512 Wireless Service Providers 30,280 91,971 31,564 1 1,407 124,943 45,087 170,030 Interexchange Carriers (IXCs) 22,553 11,498 24,995 607 6,601 43,701 24,969 68,670 Operator Service Providers (OSPs) 123 400 181 4 11 595 175 770 Prepaid Calling Card Providers 1,504 180 38 44 1,933 2,195 157 2,353 Satellite Service Providers 312 50 229 133 297 708 4,505 5,214 Toll Resellers 4,573 2,346 4,062 40 1,867 8,314 3,187 11,501 VoIP Toll Providers 56 92 * 25 192 309 41 351 Other Toll Carriers 1,186 222 338 14 2,148 2,722 893 3,615 Toll Service Providers 30,307 14,788 29,843 866 13,048 58,545 33,928 92,473 All Filers $79,128 $180,946 $102,464 $886 $15,155 $299,451 $131,615 $431,066 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ 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 Coaxial Cable Service Providers have been re-categorized as CLECs for the purpose of creating summary statistics. 2/ Telecommunications and interconnected VoIP 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 revenues and are subject to contribution requirements. 3/ 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 4 for details on exempt amounts. Contribution base amounts reported as uncollectible on Line 422 have been removed. 4/ 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. Table 9 Estimates of Average Revenue per Conversation Minute (Dollar Amounts and Minutes Shown in Millions) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Interstate operator service revenues 1/ $7,113 $6,971 $5,747 $6,603 $5,480 $3,843 $2,508 $4,267 $4,287 $3,412 $3,661 + Other interstate switched toll revenues 2/ $42,075 $42,620 $45,026 $38,753 $32,870 $26,431 $24,050 $21,848 $20,241 $18,963 $20,017 + International-to-international toll revenues 3/ $561 $1,121 $983 $1,087 $924 $636 $1,148 $644 $873 $708 $886 + Charges on bills identified as USF $878 $2,213 $2,830 $2,945 $2,361 $2,028 $1,789 $1,639 $1,538 $1,793 contributions 4/ + PICC pass-through reported as SLC $1,208 $0 $0 $0 $0 $0 $0 $0 $0 $0 revenues 5/ - Estimate carrier's carrier revenues 6/ = Total end-user switched toll revenues $49,325 $52,797 $53,969 $49,273 $42,219 $33,270 $29,734 $28,548 $27,040 $24,622 $26,357 - International-to-international toll revenues 3/ $561 $1,121 $983 $1,087 $924 $636 $1,148 $644 $873 $708 $886 = U.S. international and interstate end-user $48,764 $51,677 $52,986 $48,186 $41,295 $32,634 $28,586 $27,904 $26,167 $23,913 $25,471 switched toll revenues End-user international MTS revenues 7/ $15,661 $14,726 $14,980 $14,909 $11,380 $9,956 $9,294 $9,176 $7,976 $7,906 $7,220 - International reoriginating revenues 14/ $248 $287 $370 $430 $712 $574 $633 $725 $702 $899 $760 - International-to-international toll revenues 3/ $561 $1,121 $983 $1,087 $924 $636 $1,148 $644 $873 $708 $886 = International revenues for U.S. end users $14,853 $13,318 $13,627 $13,391 $9,743 $8,746 $7,513 $7,807 $6,401 $6,299 $5,574 Total end-user switched toll revenues $49,325 $52,797 $53,969 $49,273 $42,219 $33,270 $29,734 $28,548 $27,040 $24,622 $26,357 - End-user international MTS revenues 6/ $15,661 $14,726 $14,980 $14,909 $11,380 $9,956 $9,294 $9,176 $7,976 $7,906 $7,220 = Interstate domestic switched end-user $33,664 $38,071 $39,507 $34,364 $30,840 $23,314 $20,440 $19,372 $19,064 $16,715 $19,137 revenues U.S. billed international minutes 22,753 24,250 28,515 29,216 33,280 35,988 42,664 63,553 70,064 72,440 69,975 - Country-direct/beyond minutes 10/ 1,053 933 1,736 1,935 1,330 1,127 1,422 1,447 1,058 1,266 1,218 - Reoriginating minutes 14/ 98 532 802 1,412 4,414 3,664 5,355 6,934 7,193 7,319 7,061 = U.S. billed international minutes excluding 21,602 22,785 25,978 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 country-direct/beyond and reoriginating ILEC originating interstate access minutes 8/ 181,900 184,000 208,267 203,962 194,435 167,970 146,108 137,892 129,803 108,043 99,328 + Estimated CLEC originating minutes 9/ 4,118 6,452 12,079 18,017 22,943 20,324 21,916 21,787 21,417 18,151 18,078 - U.S. billed international minutes excluding country-direct/beyond and reoriginating 10/ 21,602 22,785 25,978 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 = Domestic originating access minutes 164,416 167,667 194,369 196,110 189,843 157,097 132,137 104,507 89,407 62,338 55,709 ILEC terminating interstate access minutes 8/ 315,400 334,800 344,465 362,955 345,256 318,672 297,826 284,441 271,229 271,216 249,340 + Estimated CLEC terminating minutes 9/ 7,141 11,739 20,757 32,062 40,740 38,559 44,674 44,942 44,753 45,564 45,380 - Country-direct/beyond international 1,053 933 1,736 1,935 1,330 1,127 1,422 1,447 1,058 1,266 1,218 settlement minutes 10/ Foreign billed international settlement - minutes 11/ 9,107 10,208 10,765 12,719 13,478 13,575 13,575 18,547 21,865 23,410 18,547 = Domestic terminating access minutes 312,381 335,398 352,721 380,364 371,188 342,529 327,503 309,389 293,060 292,105 274,956 Conversation minutes 12/ U.S. interstate and international minutes 333,984 358,183 377,163 406,233 398,724 373,727 363,390 364,561 354,873 333,325 336,970 International conversation minutes 10/ 21,602 22,785 25,016 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 Interstate domestic conversation minutes 312,381 335,398 352,147 380,364 371,188 342,529 327,503 309,389 293,060 292,105 274,956 End-user revenue per U.S. interstate and international minute $0.15 $0.14 $0.14 $0.12 $0.10 $0.09 $0.08 $0.08 $0.07 $0.07 $0.08 International conversation minute 13/ $0.69 $0.58 $0.54 $0.52 $0.35 $0.28 $0.21 $0.14 $0.10 $0.10 $0.09 Interstate domestic conversation minute $0.11 $0.11 $0.11 $0.09 $0.08 $0.07 $0.06 $0.06 $0.07 $0.06 $0.07 See notes on next page. Notes for Table 9. n.a. - not available Note: Some data for prior years have been revised. Data for 1992 through 1996 available in the Zip File version of the report. 1/ Starting in 1997, interstate operator service revenues include interstate and international prepaid calling card revenues (currently Table 6, Line 411) plus revenues from interstate and international operator and toll calls with alternative billing arrangements (currently Table 6, Line 413). 2/ Starting in 1997, other interstate switched toll revenues are equal to revenues from interstate and international ordinary long distance and other switched toll services (currently Table 6, Line 414). 3/ Starting in 1997, amounts shown are revenues from international calls that both originate and terminate at foreign points (currently Table 6, Line 412). International-to-international revenues were not reported separately prior to 1997. Amounts for 1992 through 1996 were estimated using a 50% growth rate. Most international-to-international services are provided to foreign customers. Some international-to-international services, such as call-back service, generate both originating and terminating access minutes. 4/ Carriers only report aggregate universal service surcharge revenues. Such revenues are allocated across services based on the share of contribution base revenues generated by each service. 5/ PICC charges were introduced in 1998. The reporting instructions for 1998 data were not clear and many toll carriers reported PICC pass-through charges as local revenues rather than as toll revenues. Carrier-by-carrier information was used to identify misclassified amounts to ensure that the amount of toll revenues for 1998 was accurate. 6/ Through 1996, carrier's carrier switched toll revenues was estimated to equal the total amount of switched toll revenue reported by toll resellers times 80%. 7/ Table 2 of Trends in the U.S. International Telecommunications Industry contains estimates of international end-user revenues. Preliminary figures are used for 2004 through 2007. Note that these figures differ significantly from data contained in Table 6 herein. Table 3 in Trends in the U.S. International Telecommunications Industry contains data for country-direct/beyond and reoriginated minutes. 8/ Based on National Exchange Carrier Association (NECA) filings. Separate data were available for originating and terminating access minutes through 1998. Beginning in 1999, incumbent LEC (ILEC in this table) total interstate access minutes (Monitoring Report, Table 8.1) are allocated between originating and terminating based on the originating and terminating shares of carrier common line (CCL) minutes of use reported by carriers subject to price-cap regulation and all local exchange carriers in the NECA pool (see Trends in Telephone Service, Table 1.4. The August 2008 edition contains data for 2006. 2007 data is not yet published.) These figures exclude the minutes of rate-of-return incumbent LECs. 9/ CLEC access minutes are estimated based on the local service competitors share of the local services market. Data taken from Table 8.7 of Trends in Telephone Service. That table, reproduced in relevant part below, includes all local service revenues of local carriers, but includes only local exchange service revenues of wireless and toll carriers. Local service competitors' share of 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 local revenues 2.3% 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8% 16.5% 16.8% 18.2% 10/ World total MTS minutes billed in the United States from Section 43.61 International Telecommunications Data includes data for all U.S. points, all settlement arrangements and all U.S. carriers. Billing types covered are 1, 11, and (through 1999) 21. (See the International Data report for an explanation of billing types.) Starting in 1995, carriers separately reported country-direct/beyond minutes. Most country-direct traffic generates terminating access minutes and generally represents billed end-user revenues from U.S. customers. Country-beyond minutes generally do not result in access minutes and generate revenues that are reported as international-to-international. Some other international-to-international traffic, however, results in access minutes and ordinary U.S. billed minutes of traffic. In the absence of better assumptions, and recognizing the offsetting bias for call-back minutes, the country-beyond/direct minutes are treated as terminating access minutes but are not included as international conversation minutes. 11/ World total MTS minutes originating or terminating in the United States but billed in foreign countries are from Section 43.61 International Telecommunications Data. Includes data for all U.S. points, all settlement arrangments and all U.S. carriers. Billing types covered are 2, 12, and (through 1999) 22. (See the International Data report for an explanation of billing types.) Foreign billed minutes of international traffic generate terminating access minutes. 12/ International conversation minutes are estimated as U.S. billed international traffic minutes excluding country-direct/beyond and reoriginating minutes. Domestic conversation minutes are estimated as domestic terminating access minutes. An unknown quantity of conversation minutes result in reported interstate or international switched toll revenues but not in reported interstate access minutes. This may result in an upward bias in the revenue per minute estimates. Estimates for recent years may be overstated by as much as 20%. 13/ International revenue per-minute amounts published herein differ from estimates published in Trends in the U.S. International Telecommunications Industry, Table 2, because the latter estimates include revenues and billed minutes associated with calls that originate and terminate at foreign points. 14/ Reorigination traffic originates and terminates outside of the United States. U.S. carriers receive settlement-like payments for this service which are reported as U.S. billed revenues in 43.61 reports. For FCC Form 499 reporting, these amounts are treated as settlements and should not be reported as U.S. telecommunications revenues. However, some filers may erroneously include reorigination revenues on Line 412 as international-to-international revenues. Reorigination data are taken from Table 3 in Trends in the U.S. International Telecommunications Industry and from Section 43.61 International Telecommunications Data. Table 10 Estimates of Access and Universal Service Contribution Costs per Conversation Minute (Dollar Amounts and Minutes Shown in Millions, Per-Minute Amounts Shown in Dollars and Cents) 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Minutes data from Table 9 1/ ILEC originating interstate access minutes 181,900 184,000 208,267 203,962 194,435 167,970 146,108 137,892 129,803 108,043 99,328 Originating minutes of international traffic 21,602 22,785 25,978 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 Domestic originating access minutes 164,416 167,667 194,369 196,110 189,843 157,097 132,137 104,507 89,407 62,338 55,709 ILEC terminating interstate access minutes 315,400 334,800 344,465 362,955 345,256 318,672 297,826 284,441 271,229 271,216 249,340 Terminating minutes of international traffic 10,159 11,141 12,501 14,654 14,808 14,702 14,997 19,994 22,923 24,676 19,764 U.S. Interstate and international 333,984 358,183 377,163 406,233 398,724 373,727 363,390 364,561 354,873 333,325 336,970 conversation minutes International conversation minutes 21,602 22,785 25,016 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 Interstate domestic conversation minutes 312,381 335,398 352,147 380,364 371,188 342,529 327,503 309,389 293,060 292,105 274,956 End-user revenue per minute data from Table 9 U.S. interstate and international minute $0.15 $0.14 $0.14 $0.12 $0.10 $0.09 $0.08 $0.08 $0.07 $0.07 $0.08 International conversation minute $0.69 $0.58 $0.54 $0.52 $0.35 $0.28 $0.21 $0.14 $0.10 $0.10 $0.09 Interstate domestic conversation minute $0.11 $0.11 $0.11 $0.09 $0.08 $0.07 $0.06 $0.06 $0.07 $0.06 $0.07 Access cost per interstate 2-ended minute 2/ $0.056 $0.039 $0.033 $0.024 $0.018 $0.016 $0.014 $0.015 $0.016 $0.016 $0.017 Originating access minutes $0.026 $0.022 $0.018 $0.013 $0.010 $0.008 $0.007 $0.008 $0.008 $0.008 $0.009 Terminating access minutes $0.028 $0.016 $0.013 $0.011 $0.008 $0.007 $0.007 $0.007 $0.008 $0.008 $0.008 Access cost per average conversation minute 3/ U.S. interstate and international minutes $0.041 $0.026 $0.022 $0.016 $0.012 $0.010 $0.009 $0.009 $0.009 $0.009 $0.008 International conversation minutes $0.039 $0.030 $0.026 $0.019 $0.014 $0.012 $0.010 $0.010 $0.011 $0.011 $0.011 Interstate domestic conversation minutes $0.041 $0.026 $0.022 $0.016 $0.012 $0.010 $0.009 $0.008 $0.008 $0.008 $0.008 Universal service contributions assessed on a per-line basis ($millions) 4/ $973 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Expressed per minute 5/: U.S. interstate and international minutes $0.003 $0.006 $0.007 $0.007 $0.007 $0.006 $0.006 $0.006 $0.006 $0.007 $0.007 International conversation minutes $0.003 $0.025 $0.025 $0.029 $0.024 $0.020 $0.017 $0.011 $0.010 $0.009 $0.008 Interstate domestic conversation minutes $0.003 $0.005 $0.005 $0.005 $0.006 $0.005 $0.005 $0.005 $0.006 $0.005 $0.006 CLEC access revenues assessed on a per-minute basis ($millions) 6/ $26 $93 $213 $369 $573 $854 $913 $586 $477 $582 $864 Expressed per conversation minute $0.0001 $0.0003 $0.0006 $0.0009 $0.0014 $0.0023 $0.0025 $0.0016 $0.0013 $0.0017 $0.0026 International-to-international revenues as % of total international end-user revenues 7/ 3.6% 7.6% 6.6% 7.3% 8.1% 6.4% 12.8% 7.0% 10.9% 9.0% 12.3% Net international settlement payouts ($millions) 7/ $5,207 $4,663 $4,477 $4,335 $2,649 $2,560 $2,650 $2,961 $3,007 $2,962 $2,946 Per U.S. interstate and international minute $0.015 $0.012 $0.011 $0.010 $0.006 $0.006 $0.006 $0.008 $0.008 $0.008 $0.008 Per international conversation minute $0.232 $0.189 $0.167 $0.155 $0.088 $0.077 $0.064 $0.050 $0.043 $0.042 $0.042 PICC charges billed by Tier 1 carriers ($millions) 8/ $2,000 $2,258 $1,732 $571 $134 $72 $76 $71 $71 $71 Expressed per conversation minute $0.006 $0.006 $0.004 $0.001 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 Access and universal service contribution costs 9/ per: U.S. interstate and international minute $0.059 $0.050 $0.046 $0.038 $0.028 $0.025 $0.024 $0.024 $0.024 $0.026 $0.026 International conversation minute 10/ $0.275 $0.249 $0.224 $0.209 $0.130 $0.111 $0.095 $0.073 $0.066 $0.065 $0.064 Interstate domestic conversation minute $0.044 $0.037 $0.034 $0.026 $0.020 $0.017 $0.016 $0.015 $0.016 $0.015 $0.017 Revenue per-minute net of access and universal service contribution costs, per: U.S. interstate and international minute $0.087 $0.094 $0.094 $0.081 $0.076 $0.062 $0.054 $0.052 $0.050 $0.046 $0.049 International conversation minute 10/ $0.413 $0.335 $0.314 $0.309 $0.224 $0.169 $0.115 $0.068 $0.038 $0.034 $0.026 Interstate domestic conversation minute $0.064 $0.077 $0.078 $0.064 $0.063 $0.051 $0.046 $0.048 $0.049 $0.042 $0.053 Access and universal service contribution costs as a percentage of revenue per minute U.S. interstate and international minutes 40.3% 34.8% 33.1% 31.7% 27.0% 29.1% 30.9% 31.6% 32.2% 36.1% 34.6% International conversation minutes 40.0% 42.6% 41.6% 40.3% 36.7% 39.7% 45.2% 51.8% 63.3% 65.4% 71.0% Interstate domestic conversation minutes 40.7% 32.3% 30.2% 28.7% 24.4% 25.6% 26.3% 24.1% 24.6% 26.3% 24.5% See notes on next page. Notes for Table 10. Note: Some data for prior years have been revised. Data for 1992 through 1996 available in the Zip File version of the report. 1/ The number of conversation minutes is based on the number of access minutes. An unknown quantity of conversation minutes result in reported revenues but do not result in interstate access minutes. Therefore, the analysis may overstate average access and universal service contribution costs per minute. Note that the end-user revenue per-minute data taken from Table 9 includes revenues from universal service pass-through charges levied on end users by filers to recover contribution amounts. In this table, ILEC refers to incumbent Local Exchange Carrier. 2/ Originating and terminating per-minute charges are derived from data in Table 1.2 of Trends in Telephone Service. Charges for the year are calculated as the average of charges for the first and second half of each year. 3/ Access cost per average conversation minute is calculated as the total cost of originating and terminating access (based on Incumbent LEC but not CLEC access minutes and costs per minute shown in the table) divided by conversation minutes. For example, for international minutes, originating access minutes equal the U.S. billed international minutes excluding country-direct/beyond minutes and hubbing minutes. Similarly, terminating access minutes equal the number of foreign billed minutes plus country-direct/beyond minutes. Ideally, country-direct minutes would be treated differently from country-beyond minutes, but Section 43.61 international traffic data reports do not contain that breakout. For simplicity, all CLEC minutes are treated as domestic access minutes. 4/ Source: National Exchange Carrier Association (NECA). Through 1997, toll carriers were assessed based on the number of presubscribed lines. 5/ Through 1997, universal service contributions per minute were calculated as the assessments based on lines divided by all U.S. conversation minutes. Starting with 1998, the amounts are estimated as the approximate contribution rate for interstate and international revenues times the average per-minute charges. 6/ Interstate access per-minute revenues reported on FCC Form 457 and FCC Form 499-A by carriers other than Incumbent LECs. 7/ Section 43.61 International Telecommunications Data. Totals exclude settlement payouts for hubbing service. Net international settlement payouts have been reduced by the ratio of international-to-international service revenues to total international end-user revenues, reflecting the assumption that these revenues cause a proportionate share of net settlement payouts. 8/ Since 1998, Tier 1 incumbent local exchange carriers were allowed to recover a portion of interstate expenses through presubscribed interexchange carrier charges (PICCs) on access lines. Where the access line was presubscribed, the PICC was levied on the interexchange carrier (IXC) and the associated revenues were reported as carrier's carrier revenues. The PICC charges shown in the table are based on Tier 1 carrier charges as well as line count information from Tariff Review Plans and from the Statistics of Communications Common Carriers. Where consumers did not have a presubscribed IXC, however, the Incumbent LEC billed the PICC charge to the customer rather than the IXC. We estimated that 97% of Incumbent LEC PICC revenues were collected from IXCs. Note that PICCs on residential and single line business lines were eliminated on July 1, 2000 and that PICC charges largely have been phased out for other lines. 9/ Includes tariffed per-minute access charges, net international settlement payouts, universal service contributions and PICC charges but excludes the cost of dedicated access lines. 10/ The net cost of settling international traffic consists of the settlement payouts for U.S. billed traffic less the settlement receipts for foreign billed traffic. The minutes of foreign billed traffic are not included as international conversation minutes because U.S. carriers do not bill U.S. customers for this traffic. U.S. carriers incur terminating access charges for these minutes and international transmission costs. The terminating access costs are included in the cost per-minute estimates. Trends in the U.S. International Telecommunications Industry shows end-user revenue per minute handled, as compared to end-user revenue per U.S. billed conversation minute shown herein. Table 11 End-User Telecommunications and Interconnected VoIP Service Revenues By Region of the Country: 2007 (Dollar Amounts Shown in Millions) By Type of Filer All Services Fixed Local Toll Wireless Total Region as and including for Percent of Payphone Satellite Region Total Southeast: $17,343 $8,273 $27,156 $52,772 22.0 % Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee, and U.S. Virgin Islands Western: 9,889 5,354 15,807 31,050 13.0 Alaska, Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming West Coast: 9,898 6,117 17,382 33,397 13.9 California, Hawaii, Nevada, American Samoa, Guam, Northern Mariana Islands, and Wake Island Mid-Atlantic: 10,153 6,214 12,594 28,961 12.1 Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia Mid-West: 11,657 5,721 16,099 33,477 14.0 Illinois, Indiana, Michigan, Ohio, and Wisconsin Northeast: 9,465 5,620 12,777 27,861 11.6 Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont Southwest: 9,469 5,685 16,324 31,478 13.1 Arkansas, Kansas, Missouri, Oklahoma, and Texas Filers that did not identify revenues by region 1/ 316 278 24 618 0.3 Total $78,190 $43,262 $118,164 $239,615 100.0 % Note: Detail may not add to totals due to rounding. 1/ Filers that are exempt from contributing to local number portability administration are not required to provide a breakout by region of the country. Table 12 Share of Universal Service Contributions 1/ By Principal Type of Contributor 2/ Preliminary 1/ Q3 Service Provider Category 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fixed Local Service Providers Regional Bell Operating Companies 11.7 % 14.4 % 14.4 % 16.4 % 18.4 % 20.2 % 20.3 % 20.4 % 20.4 % 18.6 % 14.5 % 13.6 % 12.9 % (RBOCs) Including Local Affiliates Other Incumbent Local Exchange 2.6 1.4 1.5 1.7 2.1 2.9 3.3 4.1 4.2 4.2 3.7 3.7 3.5 Carriers (LECs) Including Local Affiliates Competitive Local Exchange Carriers 0.8 1.4 2.7 2.3 2.8 3.4 3.6 3.8 4.4 5.3 6.4 7.8 9.3 (CLECs) Local Resellers, Payphone Providers and Other Local Carriers, Excluding LEC Affiliates Total: Fixed Local Service Providers 15.1 17.2 18.6 20.4 23.2 26.5 27.2 28.2 29.0 28.1 24.6 25.1 25.7 Wireless Service Providers Wireless Affiliates of RBOCs 16.4 16.9 20.3 21.7 22.6 28.2 Wireless Affiliates of Other 2.1 2.0 0.4 0.5 0.4 0.3 Incumbent LECs Wireless Telephony, Paging, SMR 10.4 11.6 15.3 18.3 18.9 14.6 and Other Wireless Providers, Excluding LEC Affiliates Total Wireless Service Providers 3.3 5.1 6.6 9.4 12.1 17.4 25.3 28.9 30.6 36.0 40.4 41.9 43.1 Toll Service Providers Toll Affiliates of RBOCs 1.7 1.7 2.0 2.3 3.0 3.5 5.1 7.2 8.6 29.1 27.4 25.5 23.4 Toll Affiliates of Other Incumbent 0.5 0.6 1.1 1.3 1.3 1.3 LECs IXCs, Toll Resellers, Prepaid Calling 35.1 31.2 5.8 6.4 6.1 6.4 Card, Satellite Service, and Other Toll providers, Excluding LEC Affiliates Total Toll Service Providers 81.6 77.7 74.8 70.2 64.7 56.1 47.5 42.8 40.4 35.9 35.0 32.9 31.2 RBOCs and Affiliates 43.9 46.0 68.0 63.6 61.7 64.6 Other Incumbant LECs and Affiliates 6.7 6.8 5.6 5.4 5.4 5.1 All Other Service Providers 49.4 47.3 26.4 31.0 32.9 30.3 Total All Filers 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 100.0 % 100.0 % 100.0 % Note: Detail may not add to totals due to rounding. Some data for prior years have been revised. 1/ For years 1997 through 2002, the percentages are based on shares of reported subject interstate and international end-user billed revenues. The percentages shown for 2003 through 2007 are based on shares of reported subject interstate and international end-user collected revenues. Preliminary percentages shown for 2008 and 2009 are based on projected collected revenues from FCC Form 499-Q filings. Calculations exclude revenues for calls that both originate and terminate in foreign points and revenues that qualify for the Limited International Revenue Exemption (LIRE). Calculations were based on data from all filers, including some that were exempt from making universal service contributions. For the purposes of this table, AT&T Wireless filings are classified as RBOC filings for 2004; and AT&T Communications and MCI filings are classified as RBOC filings starting 2006. The Sprint Nextel 2004 and 2005 wireless and toll filings are classified as non-ILEC to be consistent with later years. 2/ Prior to 2004, the FCC Form 499-A asked each filer to identify a single category of communications business that best described its operations. The service provider categories listed on FCC Form 499-A correspond to traditional breakdowns of the industry. For 2004 and 2005, carriers were allowed to specify more than one category and were allowed to identify themselves as an All Distance service provider. Revenues from these filers were categorized using the traditional industry classification that best described each company. Source: 1997 and 1998: FCC Form 457 filings; 1999 through 2007: FCC Form 499-A filings; 2008 and 2009: FCC Form 499-Q filings. 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