1 - 1 1. Industry Revenues and Contributions This section provides a general overview of the revenues of the U.S. telecommunications industry, and the contributions to the universal service support mechanisms that are based on these revenues. 1 Most of the data for 2007 are taken from filings of annual Telecommunications Reporting Worksheets (FCC Form 499-A) made with the Universal Service Administrative Company (USAC) on April 1, 2008. 2 Revenue data collected on these worksheets are used to administer contributions to the universal service fund (USF), Interstate Telecommunications Relay Service (TRS), North American Numbering Plan (NANP), and local number portability (LNP) programs. Filer revenues also are used to calculate FCC Interstate Telecommunications Service Provider (ITSP) regulatory fees. 3 Data presented for 2008 and 2009 are taken from FCC Form 499-Q quarterly filings. Revenue Information The Commission has established several universal service mechanisms, governed by section 254 of the Telecommunications Act of 1996, that help ensure that all Americans have access to affordable telecommunications service. In section 254(d) of the Telecommunications Act of 1996, 4 Congress mandated that "[e]very telecommunications carrier that provides interstate telecommunications services shall contribute, on an equitable and nondiscriminatory basis, to the specific, predictable, and sufficient 1 Portions of this section are based on Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Industry Revenues (September 2009). 2 Telecommunications providers filed worksheets containing calendar year 2008 revenue data on April 1, 2009. The worksheets are filed with the FCC’s Data Collection Agent, which extensively reviews and validates data. Telecommunications providers routinely make revised filings. As a result, the data are not considered reliable enough for publication for several months after the initial filing date. Therefore, the 2009 filings were not available for use in this report and 2008 and 2009 data were based on the more abbreviated and less reliable FCC Form 499-Q quarterly filings. April 2008 FCC Form 499-A filings containing 2007 revenues were used to compile the 2007 data. Compilation was based on a database prepared by the Data Collection Agent as of October 13, 2008. Therefore, revised or new 2007 FCC Form 499-A filings that were received after October 13, 2008, are not reflected herein. 3 Much of the information filed on FCC Form 499-A is proprietary. Publicly available information on individual carriers is contained in Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Provider Locator (September 2007). See also FCC Form 499-A at fjallfos.fcc.gov/cgb/form499/499a.cfm. 4 Pub. L. No. 104-104, 110 Stat. 56 codified at 47 U.S.C. §§ 151 et seq. 1 - 2 mechanisms established by the Commission to preserve and advance universal service." 5 The Commission implemented this mandate in a 1997 Report and Order. 6 The Commission subsequently selected USAC as the universal service fund administrator. Telecommunications providers currently file FCC Form 499-A (Telecommunications Reporting Worksheets, due each April) and FCC Form 499-Q (Telecommunications Reporting Worksheets, due one month after the close of each calendar quarter). Virtually all providers of telecommunications must file FCC Form 499-A each year. 7 On June 21, 2006, the Commission ruled that providers of interconnected Voice over Internet Protocol (VoIP) service also must file FCC Form 499-A worksheets. 8 These filers first provided whole year revenue information in their April 2008 FCC Form 499-A filings. Telecommunications Reporting Worksheets are not filed directly with the FCC but rather with USAC, which serves as the data collection agent. 5 47 U.S.C. § 254(d). 6 See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776 (1997) (subsequent history omitted). 7 There are certain exceptions. Providers that offer telecommunications for a fee exclusively on a non-common carrier basis are not required to file if their total annual contribution to universal service would be less than $10,000. Government entities that purchase telecommunications services in bulk on their own behalf, public safety and local government entities licensed under Subpart B of Part 90 of the Commission’s rules, and entities providing interstate telecommunications exclusively to government or public safety entities are not required to file. In addition, broadcasters, non-profit schools, non-profit libraries, non-profit colleges, non-profit universities and non-profit health care providers are not required to file. Finally, systems integrators that derive less than 5% of their systems integration revenues from the resale of telecommunications and entities that provide services only to themselves or to commonly owned affiliates need not file. However, services provided to exempt entities may be subject to contribution requirements and therefore exempt entities may be required to pay USF pass through charges to their underlying services providers. 8 See Universal Service Contribution Methodology; Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review – Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, Truth-in-Billing and Billing Format, WC Docket No. 06-122, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95- 116, 98-170, Report and Order and Notice of Proposed Rulemaking and Report and Order, 21 FCC Rcd 7518 (2006) (2006 Contribution Methodology Reform Order). 1 - 3 FCC Form 499-A asks each filer to report total, interstate and international revenues in two broad categories: those billed to universal service contributors for resale (carrier's carrier revenues); and those billed to de minimis telecommunications providers and end users (end user revenues). 9 Filers must provide further breakdowns of local, wireless, and toll services. The form also asks each filer to choose the communications business that best describes its operations: 10 • Competitive Access Provider (CAP) or Competitive Local Exchange Carrier (CLEC) • Cellular, Personal Communications Service (PCS) and Specialized Mobile Radio (SMR) Wireless Telephony Service Provider • Coaxial Cable • Incumbent Local Exchange Carrier (ILEC) • Interconnected VoIP • Interexchange Carrier (IXC) • Local Reseller • Operator Service Provider (OSP) • Other Local Service Provider • Other Mobile Service Provider • Other Toll Service Provider • Paging and Messaging Service Provider • Payphone Provider • Prepaid Calling Card Provider • Private Service Provider • Satellite Service Provider • Shared-Tenant Service Provider • Specialized Mobile Radio - Dispatch • Toll Reseller • Wireless Data Service Provider The Form 499-A instructs filers to report amounts actually billed to customers. This means that filers are required to report revenues net of discounts, but without making adjustments to reflect uncollectible revenues or international settlement payments and receipts. Most filers are able to report revenues in this manner using information contained in their corporate books of account. Some service 9 Telecommunications providers are considered de minimis and thus are not required to contribute to universal service (or file Form 499-Q) if their annual contributions to universal service would be less than $10,000. For universal service contribution purposes, underlying service providers treat de minimis providers as end users. 10 The detailed definitions of the filer categories are contained in section III.A of the Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A available at www.fcc.gov/Forms/Form499-A/499a-2009.pdf. Starting in 2004, carriers were instructed to select up to 5 ranked categories of telecommunications service providers. The 2004 through 2006 forms included a category for All Distance carriers. 1 - 4 providers, however, have no business or regulatory requirements to record intrastate or international revenues separately from interstate revenues, or to use the detailed revenue categories contained in the worksheets. Many wireless providers use the interim safe harbor percentages to estimate the interstate portion of their revenues. 11 Form 499-A filings sometimes contain mistakes. Initial examination of the data occasionally reveals carrier types, revenue amounts and/or revenues reported in service categories inconsistent with the known operations of the filer. Some corrections have been made based on supplemental filer information or as a result of audits. Nonetheless, disaggregated data are likely to be less accurate than industry totals. Table 1.1 shows the major components of telecommunications revenues for 1998 through 2008. This table was created by simply aggregating the revenues in the major classifications designated on Form 499-A. Tables 1.2 and 1.3 provide a look at annual industry revenues over time. Generally, Form 499-A revenue data can be tabulated in two distinct ways: by type of service provided and by type of business. Table 1.2 categorizes revenues by type of service and shows, for example, that carriers reported $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 1.3 shows that wireless service providers reported total revenues of $124.9 billion, including some revenues for fixed local and toll services. Revenue data for 1997 and 1998 were derived by combining TRS worksheet and Universal Service worksheet data. Since 1999, revenue data came from Form 499-A, which replaced both the TRS and Universal Service worksheets. Because of reporting changes, data since 1999 are not entirely consistent with data for prior years. 12 11 See Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A section III.C.3., available at http://www.fcc.gov/Forms/Form499-A/499a-2009.pdf. In 2001 and 2002, the interim safe harbor for wireless carriers was 15%. In December 2002, the Commission raised the wireless interim safe harbor to 28.5%. Wireless carriers began reporting revenues based on the higher interim safe harbor percent on the FCC Form 499-Q due on February 1, 2003, and began contributing on this basis in April 2003. In the 2006 Contribution Methodology Reform Order, the Commission raised the wireless interim safe harbor to 37.1%. Wireless carriers began reporting revenues based on this higher interim safe harbor percent in the FCC Form 499-Q due on August 1, 2006. 12 For example, special access revenues were included with other access revenues prior to 1997 but have been included with local private line services since then. Similarly, through 1996, filers reported as other local and mobile revenues substantial amounts of customer premises equipment, billing and collection, and other types of revenues that are excluded from contributions to universal service. These revenues are now reported as non-telecommunications revenues. The spreadsheet versions of both tables contain estimates of non-telecommunications revenues that had been reported in prior years. Based on staff estimates, the 1996 telecommunications revenues 1 - 5 Note also that each year, many filers erroneously report substantial amounts of switched toll revenues as other long distance revenues. The data are examined and some revenues are reclassified based on staff research. Even so, the other long distance category of Table 1.2 probably continues to contain some switched toll revenues, perhaps significant amounts in some years. Table 1.4 illustrates how data from the Form 499-A are used to develop the funding base for the USF. 13 As noted above, providers are considered de minimis for USF purposes if their annual contribution is expected to be less than $10,000. Revenue data for individual filers are not available to the public. However, Tables 1.5 through 1.8 present detailed industry totals by type of revenue and type of filer. Table 1.5 provides a detailed breakout of revenues for each of the Form 499-A revenue categories used to report services provided to other filers for resale. Table 1.6 displays similar detail for each of the revenue categories used to report telecommunications service provided to end users. Table 1.7 combines data from Tables 1.5 and 1.6 with data on non-telecommunications revenues to develop total industry revenues. Table 1.8 provides more aggregated revenue information by type of filers. The revenue categories presented in Tables 1.5 through 1.7 are explained in the Form 499-A filing instructions. Table 1.9 presents data from quarterly filings of Form 499-Q for 2008 and 2009. Form 499-Q is far less detailed than Form 499-A. Because Form 499-Q filings do not include a business type, filers were categorized based on the primary business type selected on their Form 499-A filings. The quarterly form asks filers to identify revenues as carrier’s carrier, contribution base end user, or non- telecommunications and to indicate the interstate and international shares of each category. Unlike Form 499-A, the quarterly form does not require filers to classify revenues by types of service. Also, international-to-international revenues are included with non-telecommunications revenues rather than with end user revenues. 14 reported on TRS Worksheets would have been $10.5 billion lower if revenues had been reported using current instructions. Some inconsistencies existed in the 1997 - 1998 period. For example, filers were required in 1997 to include inside wiring maintenance revenues as part of local exchange revenues. In 1998, filers were instructed to report these revenues as non- telecommunications service revenues. The local exchange service revenue data in Table 1.2 would show a greater increase from 1997 to 1998 if the same reporting instructions had been used for each year. 13 See Telecommunications Industry Revenues 2007, available at http://www.fcc.gov/wcb/iatd/lec.html for a comparison with the funding bases used for TRS, NANP, and LNP. 14 Filers record international-to-international revenues for calls that they receive outside the United States and that they carry to points outside the United States where the filer is operating as a U.S. carrier. 1 - 6 The universal service rules prohibit the fund administrator from releasing company-specific information contained in Form 499-A and Form 499-Q worksheets. 15 Revenue data for individual filers are not available to the public. Program Requirements and Contribution Factors Contributors make payments into the USF based on their interstate and international end user telecommunications revenues. Contributors report their revenue data to USAC, which tabulates the data, and reports it to the Commission. The Commission reviews program requirements and revenue data, and determines the appropriate contribution factor. The Commission’s Office of Managing Director releases a public notice stating the proposed contribution factor for the upcoming quarter. If, after 14 days, the Commission takes no action regarding the proposed contribution factor, the factor becomes final. 16 In February 2002, the Commission issued an order that, in relevant part, eliminated from the contribution base charges identified on the bill as recovering contributions to the universal service support mechanisms, a situation known as “circularity.” 17 Specifically, to account for the inclusion of universal service line-item revenues in their contribution bases, service providers would increase their universal service line items above the contribution factor. Before these changes, service providers filed historic revenue information each quarter, including revenue derived from pass through charges on customers’ bills, and the Commission would use these revenue totals along with total estimated program requirement to calculate the contribution factor. 18 The elimination of circularity was implemented in the third quarter of 2002, and reduced each carrier’s contribution base by the amount that the carrier paid into USF during the prior quarter. The line item “Circularity Adjustment” in Table 1.10 accounts for this change. The “Circularity Adjustment” represents the industry’s actual contributions during the prior quarter as reported by USAC. This eliminated circularity as a reason for carriers to inflate pass through charges. In December 2002, the Commission adopted an order that changed the basis for contribution assessments from historic gross-billed revenues to projected collected revenues. 19 This change addressed 15 47 C.F.R. §54.711(b). 16 47 C.F.R. §54.709(a)(3). 17 See Federal-State Joint Board on Universal Service, et al, CC Docket Nos. 96-45, 98-171, 90- 571, 92-237, 99-200, 95-116, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752 (2002). 18 The Commission reduces the revenue estimates by 1% to account for uncollectibles. 19 See Federal-State Joint Board on Universal Service, et al, CC Docket Nos. 96-45, 98-171, 90- 1 - 7 the reason given by service providers with declining revenue for marking up their pass through charges. These service providers argued that they had to contribute based on historic amounts that were greater than their current period billings, resulting in the need to mark up their pass through charges. This change was fully implemented in the second quarter of 2003. Having addressed circularity and changing the contribution assessment methodology to address declining revenues, the two main reasons cited by providers for marking up their pass through charges, the Commission adopted a rule requiring those contributors that recover their universal service contributions through a universal service line item to limit their recovery to the interstate portion of the customer’s bill times the relevant contribution factor. 20 Form 499-Q filers now file information on billed revenues for the previous quarter and both projected billed revenues and projected collected revenues for the upcoming quarter. Projected collected revenues, which are projected billed revenues less an allowance for uncollectible revenues, form the basis for USF contribution assessments. Projected collected revenues are then adjusted to eliminate circularity. Starting with the second quarter of 2003, the "Circularity Adjustment" amounts shown in Table 1.10 (discussed in more detail below) reflect expected USF contributions for the quarter rather than the industry's actual contributions from a prior quarter. Table 1.10 shows the program funding requirements for 2008 and 2009. For each program and for each quarter, the table lists projected program demand, administrative costs, interest income, and periodic true-ups. The table also shows the revenue base and contribution factors for each quarter. As explained above, the contribution base is 1% less than reported revenues to reflect the fact that some contribution assessments may prove uncollectible. In accordance with the Consolidated Appropriations Act of 2008 (P.L.110-161), the FCC instructed USAC to transfer $21.48 million from the USF to the FCC in federal fiscal year 2008 to support USF oversight efforts, including conduct of audits and investigations by the FCC Office of Inspector General. 21 Because the transfer of funds did not count against any funding caps, USAC recouped the funds by adding the transfer of $21.48 million to the total required collections. One-half of this amount was included in the 3 rd quarter 2008 demand projection for each support mechanism. The remaining half was included in the 4 th quarter 2008 demand projection for each support mechanism. Sprint Nextel Corporation and Cellco Partnership d/b/a Verizon Wireless offered voluntary commitments whereby, at the end of a five-year transition, they would not seek USF support for their 571, 92-237, 99-200, 95-116, 98-170, Report and Order and Second Further Notice of Proposed Rulemaking, 17 FCC Rcd 24952 (2002). 20 47 C.F.R. §54.712. 21 See Letter from the FCC Managing Director to D. Scott Barash, USAC Acting CEO, dated February 29, 2008. 1 - 8 wireless services unless such requests were supported by actual cost analyses. 22 The first installment of this voluntary commitment appears in the fourth quarter of 2009 of Table 1.10. Table 1.11 shows universal service disbursements on a mechanism-by-mechanism basis for 2007. and 2008. 23 Chart 1.1 shows the 2008 information graphically. Table 1.12 shows, on a state-by-state basis, the total amount of funding disbursements for each of the universal service mechanisms, estimated contributions towards universal service, and the net estimated dollar flow (disbursements less estimated contributions) for 2008. 24 22 See Applications of Cellco Partnership d/b/a Verizon Wireless and Atlantis Holdings LLC For Conc=sent to Transfer Control of Licenses, Authorizations, and Spectrum Manager and De Facto Transfer leasing Arrangements and Petition for Declaratory Ruling that the Transaction is Consistent with Section 310(b)(4) of the Communications Act, WT Docket No. 08-95, File Nos. 0003463892, et al., ITC-T/C-20080613-00270, et al., File No. ISP-PDR-20080613-00012, Memorandum Opinion and Order and Declaratory Ruling, 23 FCC Rcd 17444 (2008); Sprint Nextel Corporation and Clearwire Corporation, Applications For Consent to Transfer Control of Licenses, Leases, and Authorizations, WT Docket No. 08-94, File Nos. 0003462540 et al., Memorandum Opinion and Order, 23 FCC Rcd 17570 (2008). 23 Figures in Table 1.11 are lower than those in Table 1.10 due to the difference between projected demand and actual disbursements. The figures used in Tables 1.11 and 1.12 include disbursements that were committed over several years but paid out in the appropriate calendar year. In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. 24 For a discussion of the methodology used to estimate contributions per state, see the Technical Appendix below and Table 1.13. 1 - 9 Technical Appendix Carrier revenue information is not reported on a state-by-state basis. Therefore, it is necessary to estimate revenues per state in order to derive contributions made per state. The nationwide sum of contributions to support universal service is equal to the payments made from USAC to recipients of funds from the universal service mechanisms plus administration costs. Contributions on a per-state basis are computed by multiplying nationwide contributions by the ratio of interstate end user revenues in each state to nationwide interstate end user revenues. Estimates of interstate end user revenues by state are reported in Table 1.13. These estimates of end- user interstate revenue are used as a basis for estimating contributions in Table 1.12. 25 The remainder of this appendix provides a detailed description on how revenues are allocated to the states. Tables 1.5 and 1.6 present nationwide data on telecommunications revenues derived from information filed on Form 499-A Telecommunications Reporting Worksheets. Nationwide (cumulative) telecommunications revenues from these tables are divided into categories. These categories are ILECs’ local exchange service revenues, CLEC revenues, subscriber line charge (SLC) revenues, access revenues, mobile wireless revenues and toll revenues. 26 Table 1.14 presents telecommunication revenues for each of these categories at the nationwide level. As set forth below, once the revenues are divided into categories, we use data from several sources to estimate each state’s telecommunications revenues. Data from ARMIS 27 are used to estimate on a state-by-state basis ILECs’ local exchange service revenues, access revenues, and toll revenues. 28 Data from tariff access filings with the FCC are used to estimate SLC revenues. CLEC and mobile wireless revenues are estimated on a state-by-state basis using data from FCC Form 477. Table 1.15 shows intrastate carrier’s carrier, end user and total telecommunications revenues by category for ILECs’ local exchange service, CLECs, wireless, access, ILEC toll, and non-ILEC 25 Each state’s share of interstate end user revenues and contributions are reported under the heading “estimated contributions percent of total.” 26 The notes in Table 1.14 discuss how revenues from Tables 1.5 and 1.6 are assigned to categories in Table 1.14. 27 Automated Reporting Management Information System (ARMIS). ARMIS data are available on the ARMIS Internet site, which can be reached at www.fcc.gov/wcb/eafs/. 28 Revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are not estimated using data from ARMIS because these jurisdictions have no telephone companies subject to the FCC's ARMIS 43-01 and 43-08 reporting requirements. 1 - 10 toll. 29 Components of interstate carrier’s carrier, end user and total telecommunications revenues are presented in Table 1.16. These components include ILECs, CLECs, wireless, SLCs, access, and toll. 30 Data from ARMIS are adjusted prior to allocating nationwide revenues to the states. ARMIS data include those ILECs with annual operating revenues over $134 million for 2006 and revenues over $138 million in 2007. The ARMIS revenue data represent approximately 93 percent of the local telephone industry based on USF loops. Here, data from ARMIS are expanded to include the entire ILEC industry based on USF loops. Column 1 of Table 1.17 shows USF loops at year-end 2007. Column 2 shows the percent of the ILEC industry that reported in the ARMIS filings. It is the average for year-end 2006 and 2007 data. 31 The adjustment formula in Column 3 is (100/Column 2). In Table 1.18, ILECs’ state local exchange revenues are allocated based on local exchange service and state miscellaneous revenues from ARMIS Report 43-01 filings. Local exchange revenues for allocation are the product of reported ILECs’ local exchange service and miscellaneous revenues and the adjustment formula in Table 1.17. Allocation percentages in each state are the ratio of the state’s allocation revenues to nationwide revenues. Local exchange revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.19, we allocate interstate and intrastate CLEC revenues on a state-by-state basis by multiplying national revenues (see Table 1.14) by an allocation percentage. The allocation percentage is determined by dividing the number of CLEC lines in a state, as reported in FCC Form 477, by nationwide CLEC lines. 32 In Table 1.20, we allocate interstate and intrastate mobile wireless revenues on a state-by-state basis by multiplying national revenues (see Table 1.14) by an allocation percentage. The allocation percentage is determined by dividing the number of wireless subscribers in a state by nationwide wireless 29 Estimated intrastate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average intrastate telephone revenues per loop by number of loops in the jurisdiction. 30 Estimated interstate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average interstate telephone revenues per access minute by number of access minutes in the jurisdiction. 31 The staff estimate is based on the share of USF loops that are associated with carriers that file ARMIS reports. 32 See Local Telephone Competition: Status as of June 30, 2008 at http://www.fcc.gov/wcb/iatd/comp.html for CLEC lines as of June 2007. 1 - 11 subscribers using data from FCC Form 477. 33 SLC revenues are allocated by state in Table 1.21. The sum of residential non-Lifeline lines (including both primary and non-primary lines) and single-line business lines are estimated by multiplying residential non-Lifeline lines and single-line business lines from ARMIS Report 43-01 by the adjustment factor from Table 1.17. Column 1 shows primary residential lines and single-line business lines which is the difference between total residential and single-line business lines, and non-primary lines. Non-primary residential lines are from ARMIS Report 43-08. Multi-line business lines (Column 3) are estimated for the industry by multiplying the number of lines in ARMIS Report 43-01 by the adjustment factor in Table 1.17. Primary residential and single-line business lines SLC rates per month, shown in Column 4, are the rates filed in the Tariff Review Plan (TRP) for price-cap carriers from July 2007 filings and from National Exchange Carrier Association (NECA) pool and rate-of-return carriers. 34 Non-primary SLC revenues per line per month for price-cap companies, shown in Column 5, are the rates filed in the TRPs from the July of 2007 filings. Multiline business SLC rates per line per month in each state, shown in Column 6, are estimated based on the rates in the July 2007 TRP filings for price-cap companies and from NECA pool and rate-of-return carriers. 35 Revenues used for allocating SLC revenues by state are determined by the following formula: 12 * [primary residential and single-line business SLC per line per month * (primary residential lines and single-line business lines) + multiline business SLC per line per month * (multiline business lines) + non- primary lines * non-primary SLC per line per month]. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. SLC revenues are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.22, interstate access revenues and private line revenues are allocated on a state-by-state basis based on net access revenues. Gross access revenues for allocation are the product of interstate access revenues from ARMIS Report 43-08 and the adjustment formula presented in Table 1.17. Revenues for allocation are the difference between gross access revenues for allocation and subscriber line charge revenues. Allocation percentages in each state are the ratio of the state’s allocation revenues to nationwide revenues. Access revenues by type are determined by multiplying the allocation factors by the revenues of each type (see Table 1.14). 33 See Local Telephone Competition: Status as of June 30, 2008 at http://www.fcc.gov/wcb/iatd/comp.html for wireless subscribers as of June 2007. 34 Carrier USF loop counts are used as weights. We assume that the residential SLC for NECA pool and rate-of-return carriers during the relevant time period was $6.50. 35 The rates of NECA pool carriers and rate-of-return carriers are assumed to be $9.20 per line per month for multiline business. 1 - 12 In Table 1.23, intrastate access revenues are allocated between states based on intrastate access revenues from ARMIS Report 43-08. Intrastate access revenues for allocation are the product of these access revenues and the adjustment formula in Table 1.17. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. Access revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). Table 1.24 shows ILEC toll revenues of large ILECs reported in ARMIS Report 43-08, and ILEC intrastate toll revenues. 36 ILEC intrastate toll revenues are the product of ILEC reported revenues and the adjustment formula in Table 1.17. Table 1.25 shows how non-LECs’ intrastate toll revenues are allocated between states based on intrastate access minutes and intrastate access revenues. 37 Non-LEC toll is the difference between intrastate toll revenues and LEC toll revenues. 38 Intrastate toll revenues are reported in Table 1.14, and LEC toll revenues are reported in Table 1.24. Column 1 shows access minutes for allocation. Access minutes for allocation are the product of intrastate-interLATA access minutes from ARMIS Report 43-01 and the adjustment formula in Table 1.17. Column 2 shows each state’s percentage of intrastate access minutes. Column 3 shows each state’s percentage of intrastate access revenues. 39 The allocation percentages for non-LECs’ intrastate toll revenues, presented in Column 4, are (75% * Column 2) + (25% * Column 3). Intrastate toll revenues by type presented in Columns 5 and 6 are determined by multiplying the allocation percentage by the type of revenues. In Table 1.26, interstate toll revenues are allocated on a per state basis by interstate access minutes. Interstate access minutes are from Table 8.4. The allocation percentages are each state’s percentage of interstate access minutes. Interstate toll revenues by type presented are determined by multiplying the allocation percentage by the type of revenues. (see Table 1.14). 36 ILECs’ toll revenues as reported in ARMIS are treated as intrastate revenues for allocation purposes. 37 Intrastate access revenues are a proxy for intrastate toll rates. 38 We assume that all LEC toll revenues are end user revenues. 39 Intrastate access revenues are reported in Table 1.23. Non-LEC toll is the difference between intrastate toll revenues and LEC toll. LEC toll is assumed to be end user toll. Intrastate toll revenues are reported in Table 1.14 and LEC toll in Table 1.24. Table 1.1 Total Telecommunications Industry Revenues 1/ (Dollar Amounts Shown in Millions) Preliminary 5/ 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 $38,136 Wireless Service 3,060 4,652 5,144 6,180 5,020 4,465 4,164 6,334 5,187 5,360 6,770 Toll Service 13,448 14,934 21,849 19,999 16,476 18,205 15,703 16,892 15,101 16,093 15,861 Intrastate 18,892 22,293 25,553 27,848 25,770 24,825 25,852 27,486 24,848 22,566 23,172 Interstate and International 4/ 26,990 30,449 38,060 38,439 34,138 35,587 32,561 34,953 34,831 37,270 37,595 Total 45,758 52,742 63,613 66,287 59,907 60,412 58,413 62,439 59,679 59,836 60,767 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 77,775 Wireless Service 33,714 43,843 56,857 68,507 76,501 85,254 94,404 100,743 110,096 115,865 117,622 Toll Service 91,607 93,311 87,767 79,302 67,222 58,983 55,511 52,358 49,278 48,709 39,319 Intrastate 123,216 134,919 147,465 155,347 154,815 150,889 153,265 154,310 157,653 158,380 156,315 Interstate and International 4/ 77,294 80,844 81,685 80,165 77,619 79,822 80,057 81,173 79,937 81,235 78,401 Total 200,510 215,763 229,149 235,513 232,434 230,711 233,322 235,482 237,589 239,615 234,716 Total Revenues Local Service 3/ 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 113,425 115,911 Wireless Service 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 121,225 124,392 Toll Service 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 64,802 55,180 Intrastate 142,108 157,212 173,018 183,195 180,585 175,714 179,117 181,796 182,501 180,946 179,487 Interstate and International 4/ 104,284 111,293 119,745 118,605 111,756 115,409 112,617 116,125 114,768 118,505 115,996 Total $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,451 $295,483 Note: Detail may not add to totals due to rounding. Preliminary 2008 data revised since original publication 1/ 2/ 3/ 4/ 5/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). 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. Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements. Carrier's carrier revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale. This includes, for example, access services that local exchange carriers provide to toll carriers. Sales to de minimis resellers, end-user customers, governments, non-profits, and any other non-contributors are treated as end-user revenues. Filers contribute to the universal service funding mechanisms based on their end-user revenues. See Table 1.4 for further details on contribution bases. Payphone revenues are included with local service revenues in this table. Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table through 2007, but are not included in the universal service contribution base. These revenues are not included in preliminary 2008 data. 1 - 13 Table 1.2 Telecommunications Industry Revenues by Service (Dollar Amounts Shown in Millions) Universal Service FCC Form 499-A Data & TRS Data 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Local Exchange $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/ 8,282 10,403 12,914 16,864 21,966 23,070 22,415 23,840 25,673 25,448 24,307 Other Local 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/ 8,327 11,052 10,826 11,563 12,127 12,758 12,136 11,715 11,113 10,827 10,141 Access 2/ 21,423 18,449 18,105 17,017 15,096 13,955 12,972 12,352 11,822 11,392 10,543 103 260 575 1,301 1,410 1,783 1,862 2,227 2,133 1,947 595 595 Total Local Service 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 113,425 Wireless Service 32,760 36,240 48,117 61,505 74,006 80,678 88,023 96,450 104,489 112,442 117,939 345 379 495 681 842 1,696 2,118 2,587 2,841 3,286 189 189 Total Wireless Service 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 121,225 Operator 1/ 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 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 10,504 11,952 13,169 16,189 16,402 15,108 15,316 13,906 13,264 12,739 12,080 Other Long Distance 4,695 3,386 3,656 3,372 3,259 2,445 2,222 1,801 2,021 2,154 1,661 1,810 2,983 3,467 3,927 3,767 2,905 2,577 2,458 2,340 2,669 1,532 1,532 Total Toll Service 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 64,802 Total Telecommunications 231,168 246,392 268,505 292,762 301,799 292,341 291,122 291,735 297,921 297,269 299,451 Non-Telecommunications 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 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 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 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,605 116,125 114,768 118,505 Total Telecommunications $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,451 Universal Service Surcharges on Local Service Bills 3/ Additional Revenues from TRS Worksheets Universal Service Surcharges on Wireless Service Bills 3/ Additional Revenues from TRS Worksheets Universal Service Surcharges on Toll Service Bills 3/ Additional Revenues from TRS Worksheets See notes on next page. 1 - 14 Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless and toll revenues. Reported amounts are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll intrastate and interstate revenues by type of carrier. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets. Starting in 1999, data summarized from FCC Form 499-A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. 3/ TRS filers generally reported pay telephone revenues as local service revenues, access revenues or operator toll revenues. The Universal Service and FCC Form 499-A worksheets contain a separate category for payphone coin revenues. Starting in 1997, payphone revenues include payphone compensation received from toll carriers. TRS Worksheet filers generally reported special access revenues as access revenues. Reporting changes implemented with the Universal Service Worksheet explain the increase in local private line revenues and the fall in access revenues shown for 1997. TRS Worksheet filers included subscriber line charges with other access charges. Through 1996, these revenues have been disaggregated by assuming that the end-user access revenues in Table 4.2 of Statistics of Communications Common Carriers represents 93% of industry total subscriber line charge revenues. Universal Service Worksheet filers report subscriber line charges in a separate category. The increase from 1997 to 1998 represents PICC charges levied by ILECs as well as $1.2 billion of PICC pass-through charges levied by toll carriers. Note: Detail may not add to totals due to rounding. Some data for prior years have been revised. 1/ Notes for Table 1.2 2/ 1 - 15 Table 1.3 Telecommunications Revenues Reported by Type of Carrier (Dollar Amounts Shown in Millions) FCC Form 499-A Data & TRS Data Service Provider Category 1/ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Incumbent Local Exchange Carriers $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 Paging & Messaging Service 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 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 348 710 150 1,758 2,516 2,089 2,339 2,543 3,195 2,798 3,031 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 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/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Universal Service Filers are asked to select for themselves a service provider category that best describes their operations. The choices have changed over the years. For example, most satellite service providers identified themselves as other toll carriers in their 1997 FCC Form 431 TRS worksheets because there was no separate category for satellite service providers. For 2003 through 2006, 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. 1 - 16 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 3,615 filers who are ide 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 150 filers who identify themselves as private service providers or as shared tenent service providers and who therefore are exempt from telecommunications relay service (TRS) contribution requirements if they provide no carrier services 799 less iinterstate and international revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service support mechanisms [ Line 511(b) ] 230 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 745 filers who identify themselves as private service providers, shared tenent service providers or payphone service providers and who therefore are exempt from North American Numbering Plan Administration (NANPA) and local number portability administration (LNP) contribution requirements if they provide no carrier services 786 less telecommunications revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service support mechanisms [ Line 511 (a) ] 279 equals $238,551 1/ 2/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Ebased on revenues and the filer type information contained in the FCC Form 499-A filings. The fund administrators may use carrier type, revenue type, line 603 exemption certifications and additional information requested from filers to determine which filers must contribute. The universal service fund administrator bills delinquent filers based on estimated revenues and may, in some instances, include estimated revenue amounts in contribution base amounts. Note also that universal service contribution factors are set quarterly based on FCC Form 499-Q filings. FCC Form 499-A data are used for true-up and auditing purposes. Also note that local number portability contribution amounts are determined by region of the country rather than on a nationwide basis. As a result of these factors, actual contribution bases have been based on slightly different amounts than those shown. Table 1.4 Contribution Base Revenues By Program 1 /: 2007 (Dollar Amounts Shown in Millions) International revenues are excluded from the contribution base if the total amount of interstate end-user revenues for the filing entity consolidated with all affiliates is less than 12% of the total of interstate and international end-user revenues for the filing entity consolidated with all affiliates. See 47 C.F.R. § 54.706(c). The threshold was increased from 8% to 12% in 2002. See Federal-State Joint Board on Universal Service, et al., CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-166, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752, 3806, para. 125 (2002). In addition, filers that provide only international services are exempt regardless of services offered by affiliates. This table shows how contribution bases differ for different programs and provides relative magnitudes, but does not provide the actual amounts used for determining contribution amounts. Amounts shown represent the amounts contained in the FCC Form 499-A database as of October 13, 2008. The universal service administrator continues to receive additional and corrected filings. 1 - 17 Table 1.5 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 0 Provided as unbundled network elements (UNEs) $2,475 $234 $0 $2,709 $115 $4 * $119 0 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 0 Provided under state or federal access tariff 2,472 2,156 0 4,627 2,019 1,120 2 3,141 0 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 00 00 00 00 314 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/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 18 Table 1.5 Revenues from Telecommunications 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 0 Provided as unbundled network elements (UNEs) $183 $204 $2 $388 * * * $1 0 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 0 Provided under state or federal access tariff 589 520 4 1,113 * * * * 0 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 13 04 00 00 Total mobile service provided for resale 13 04 00 00 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/ ib i Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 19 Table 1.5 Revenues from Telecommunications 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 0 Provided as unbundled network elements (UNEs) $3 * * $3 * * $0 * 0 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 0 Provided under state or federal access tariff 2 1 * 3 * * 0 * 0 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 53 07 00 11 314 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/ ib i Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 20 Table 1.5 Revenues from Telecommunications 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 0 Provided as unbundled network elements (UNEs) $31 $19 $18 $67 $2,807 $461 $20 $3,287 0 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 0 Provided under state or federal access tariff 104 88 7 198 5,185 3,884 13 9,082 0 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/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 21 Table 1.6 Revenues from Telecommunications 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: 0 & .3 Traditional Circuit Switched $33,266 $1 $0 $33,268 $7,075 $20 $0 $7,094 0 & .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 00 00 00 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 00 00 10 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/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 22 Table 1.6 Revenues from Telecommunications 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: 0 & .3 Traditional Circuit Switched $5,883 $151 $2 $6,036 * * $0 * 0 & .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/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 23 Table 1.6 Revenues from Telecommunications 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: 0 & .3 Traditional Circuit Switched $48 $7 $0 $55 $9 * $0 $9 0 & .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/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 24 Table 1.6 Revenues from Telecommunications 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: 0 & .3 Traditional Circuit Switched $2,810 $10 $1 $2,821 $49,090 $189 $3 $49,282 0 & .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/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. 1 - 25 Table 1.7 Total Revenues: 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 0.1 bundled with circuit switched local exchange service - - - - - - - - - 1,078 - - - - - - - - - 905 0.2 bundled with interconnected VoIP local exchange service - - - - - - - - - 0 - - - - - - - - - 12 0.3 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. 1 - 26 Table 1.7 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 0.1 bundled with circuit switched local exchange service - - - - - - - - - 6,378 - - - - - - - - - 3 0.2 bundled with interconnected VoIP local exchange service - - - - - - - - - 633 - - - - - - - - - 2 0.3 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. 1 - 27 Table 1.7 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 0.1 bundled with circuit switched local exchange service - - - - - - - - - 979 - - - - - - - - - 35 0.2 bundled with interconnected VoIP local exchange service - - - - - - - - - * - - - - - - - - - 1 0.3 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. 1 - 28 Table 1.7 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 0.1 bundled with circuit switched local exchange service - - - - - - - - - 2,427 - - - - - - - - - 11,804 0.2 bundled with interconnected VoIP local exchange service - - - - - - - - - 13 - - - - - - - - - 662 0.3 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. 1 - 29 Table 1.8 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 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 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/ 2/ Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as All Distance or Coaxial Cable Service Providers have been re-categorized for the purpose of creating summary statistics Telecommunications 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 and are subject to contribution requirements. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). 1 - 30 Table 1.8 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 Competit 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 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 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/ 2/ 3/ 4/ Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009). Carriers report non-telecommunications service revenues on Line 418. This category includes enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet, foreign carrier and other non-U.S. telecommunications service revenues. Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as All Distance or Coaxial Cable Service Providers have been re-categorized for the purpose of creating summary statistics Telecommunications 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 and are subject to contribution requirements. Universal service contribution base revenues consist of all interstate and international end-user telecommunications revenues except for international-to-international revenues reported on Line 412. The totals include revenues from filers who are de minimis or otherwise exempt from contributing. This table also includes international revenues that were exempt from contribution because of the 12 percent rule. See Table 1.4 for details on exempt amounts. Contribution base amounts reported as uncollectible on Line 422 have been removed. 1 - 31 Data from FCC Form 499-Q Projected Revenues for 2008 1/ Regional Bell Operating Companies $10,275 $10,172 1.0 % $24,127 $47,155 $71,282 $10,163 Other Incumbent Local Exchange 2,390 2,344 1.9 7,933 10,498 18,432 2,518 Carriers (ILECs) Total ILECs 12,665 12,516 1.2 32,060 57,654 89,714 12,682 Competitive Access Providers 4,503 4,395 2.5 4,882 15,412 20,293 4,544 (CAPs) and Competitive Local Exchange Carriers (CLECs) Local Resellers 118 108 8.4 110 502 611 107 Private Service Providers 424 415 2.2 603 578 1,181 402 Shared-Tenant Service Providers 4 3 8.9 18 30 2,674 7 Interconnected VoIP 4/ 1,272 1,219 4.2 237 2,656 2,893 1,180 Other Local Service Providers 107 106 2.8 123 684 808 274 Total Local Competitors 6,428 6,246 2.9 5,973 19,862 25,834 6,513 Fixed Local Service Providers 19,093 18,763 1.7 38,033 77,515 115,548 19,195 Payphone Service Providers 30 29 3.7 104 259 363 26 Wireless Telephony Including Cellular, 32,725 32,063 2.0 6,678 116,204 122,882 30,177 Personal Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 83 73 12.2 68 480 548 69 Specialized Mobile Radio (SMR) Dispatch 10 10 2.6 9 155 164 18 Wireless Data and Other Mobile Service 149 148 0.3 15 783 797 121 Providers Wireless Service Providers 32,966 32,293 2.0 6,770 117,622 124,392 30,385 Interexchange Carriers (IXCs) 21,039 20,777 1.2 11,406 29,050 40,456 21,374 Operator Service Providers (OSPs) 140 125 10.9 75 702 777 153 Prepaid Calling Card Providers 1,857 1,843 0.8 191 1,695 1,886 1,647 Satellite Service Providers 271 269 1.1 245 430 675 290 Toll Resellers 5,363 5,199 3.1 1,826 6,534 8,360 4,576 VoIP Toll Provider 2,118 Audio Bridge Service Provider Other Toll Carriers 595 590 1.0 609 1,432 477 Toll Service Providers 29,396 28,919 1.6 15,861 39,319 55,180 28,795 All Filers $81,485 $80,004 4/ 1.8 % $60,767 $234,716 $295,483 $78,401 LIRE Exemption $3,550 Total less LIRE $76,454 See notes at end of Table. ($millions) Table 1.9a Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2008 (Dollar Amounts Shown in Millions) ($millions) ($millions) ($millions) Historic Revenues Reported for 2008 1/ Billed to Resellers 2/ Implied Uncollectible Rate 3/ Interstate and International Billed to End Users 2/ Total Revenue 2/ Billed to End Users 2/ Interstate and International Billed to End Users 2/ Collected from End Users 2/ 3/ Total for YearTotal for Year Intrastate, interstate and International ($millions) ($millions) 1 - 32 Notes for Table 1.9 1/ 2/ 3/ 4/ 5/ Contribution bases used to calculate Factors Calendar 2008 Calendar 2009 ($millions) ($millions) First Quarter $19,193.8 $18,871.0 Second Quarter $18,978.0 $18,714.7 Third Quarter $19,039.4 $18,032.8 Fourth Quarter $19,011.9 $17,164.4 Total Projected Collected $76,223.1 $72,782.9 Data filed on FCC Forms 499-Q and 499-A Worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009) available at http://www.fcc.gov/wcb/stats. Sources: The amounts actually used to calculate contribution factors in 2008 and 2009 are shown below. The totals for the year do not match the totals shown above. One reason is that amounts in the table reflect all amounts shown in the FCC Form 499-Q data base, including some estimated amounts for non- filers and amounts reported by filers that are de minimis or do not contribute because they provide only international services. Finally, some difference may be explained by late filings and corrections made to the data base after the Commission calculated contribution factors. Interconnected Voice over Internet Protocol (Interconnected VoIP) providers were required to file FCC Form 499Q worksheets starting August 1, 2006, but were not required to include historic data until the February 2, 2007 filing. Note: Amounts may not add to totals due to rounding. Each quarter, telecommunications providers that are required to contribute to universal service support mechanisms must to file an FCC Form 499-Q. The FCC Form 499-Q collects total, interstate and international billed revenues for the most recently completed calendar quarter (historic revenues) and also collects projected interstate and international -- but not total -- revenues for the upcomming calendar quarter (projected revenues.) Some telecommunications providers file the form even though they are not required to contribute. USAC estimates revenues for most non-filers. Filers contribute based on the interstate and international telecommunications revenues that they collect from end-users. On the FCC Form 499-Q, filers project the amount of contribution base they expect to bill in the upcomming quarter and then project the amount of contribution base revenues that they expect to collect. The difference between projected billed revenues and projected collected revenues is amount of revenue that the filer expects to be uncollectible (the implied uncollectible rate). Filers contribute in a quarter based on the end user revenues that they project collecting in that quarter. Filers report actual billings and uncollectibles in their April 1 FCC Form 499-A filings. This information is used to true-up contributions, and provides more accurate information on billings and collections for the year. FCC Form 499-A data for 2008 and 2009 is not yet available for publication. The FCC Form 499-Q collects historic revenues divided into three categories: telecommunications service provided for resale (carrier's carrier); telecommunications service provided to end-users (end user); and other revenues. Telecommunications providers that contribute directly to federal universal service support mechanisms are referred to as "contributors". Telecommunications provided for resale refers to contributors provided to contributors for resale as. Underlying carriers do not contribute based on these revenues. Revenues from services provided to firms that are de minimis or otherwise exempt from federal universal service support mechanisms are reported as end-user service. The other revenue filing category consists of international-to-international revenues and revenues from goods and services that are not classified as U.S. telecommunications. International-to- international service refers to calls that originate in a foreign point, traverse the United States, and terminate in a foreign point. These revenues, which are exempt from universal service contribution, are reported in a separate end-user telecommunications revenue category in the FCC Form 499-A. These revenues are included in telecommunications relay service, local number portability and number administration contribution bases. 1 - 33 Data from FCC Form 499-Q Projected Revenues for 2009 1/ Regional Bell Operating Companies $9,227 $9,129 1.1 % $11,665 $21,593 $33,258 $4,599 Other Incumbent Local Exchange 2,473 2,426 1.9 3,920 5,098 9,018 1,216 Carriers (ILECs) Total ILECs 11,700 11,555 1.2 15,585 26,691 42,277 5,815 Competitive Access Providers 5,205 5,132 1.4 2,763 8,429 11,192 2,634 (CAPs) and Competitive Local Exchange Carriers (CLECs) Local Resellers 95 87 7.7 48 198 245 43 Private Service Providers 451 445 1.5 2,242 296 2,538 215 Shared-Tenant Service Providers 10 10 3.1 0 19 1,505 5 Interconnected VoIP 4/ 1,316 1,294 1.7 149 1,505 1,654 646 Other Local Service Providers 382 380 0.3 75 487 562 189 Total Local Competitors 7,459 7,349 1.5 5,278 10,933 16,212 3,732 Fixed Local Service Providers 19,159 18,904 1.3 20,864 37,625 58,488 9,547 Payphone Service Providers 31 29 3.2 42 122 164 9 Wireless Telephony Including Cellular, 30,144 29,612 1.8 3,063 58,091 61,154 15,379 Personal Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 48 48 0.8 18 182 200 22 Specialized Mobile Radio (SMR) Dispatch 15 14 1.9 5 67 73 8 Wireless Data and Other Mobile Service 14 14 1.2 17 36 53 6 Providers Wireless Service Providers 30,220 29,687 1.8 3,103 58,376 61,479 15,414 Interexchange Carriers (IXCs) 18,904 18,686 1.2 3,940 12,682 16,622 9,237 Operator Service Providers (OSPs) 187 168 10.6 19 468 487 90 Prepaid Calling Card Providers 1,472 1,461 0.7 126 756 882 691 Satellite Service Providers 356 354 0.5 128 216 344 208 Toll Resellers 4,693 4,521 3.7 969 3,027 3,996 2,164 VoIP Toll Provider 974 Audio Bridge Service Provider Other Toll Carriers 428 421 1.8 243 447 201 Toll Service Providers 27,100 26,639 1.7 6,155 17,738 23,893 12,921 All Filers $76,510 $75,259 4/ 1.6 % $30,165 $113,860 $144,025 $37,891 LIRE Exemption ($3,163) Total less LIRE $72,096 See notes at end of Table. Total for First and Second QuartersTotal for Year Intrastate, interstate and International ($millions) ($millions) Billed to Resellers 2/ Implied Uncollectible Rate 3/ Interstate and International Billed to End Users 2/ Total Revenue 2/ Billed to End Users 2/ Interstate and International Billed to End Users 2/ Collected from End Users 2/ 3/ ($millions) Table 1.9b Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2009 (Dollar Amounts Shown in Millions) ($millions) ($millions) ($millions) Historic Revenues Reported for 2009 1/ 1 - 34 Notes for Table 1.9 1/ 2/ 3/ 4/ 5/ Contribution bases used to calculate Factors Calendar 2008 Calendar 2008 ($millions) ($millions) First Quarter $19,193.8 $18,871.0 Second Quarter $18,978.0 $18,714.7 Third Quarter $19,039.4 $18,032.8 Fourth Quarter $19,011.9 $17,164.4 Total Projected Collected $76,223.1 $72,782.9 Data filed on FCC Forms 499-Q and 499-A Worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2009) available at http://www.fcc.gov/wcb/stats. Interconnected Voice over Internet Protocol (Interconnected VoIP) providers were required to file FCC Form 499Q worksheets starting August 1, 2006, but were not required to include historic data until the February 2, 2007 filing. Note: Amounts may not add to totals due to rounding. Each quarter, telecommunications providers that are required to contribute to universal service support mechanisms must to file an FCC Form 499-Q. The FCC Form 499-Q collects total, interstate and international billed revenues for the most recently completed calendar quarter (historic revenues) and also collects projected interstate and international -- but not total -- revenues for the upcomming calendar quarter (projected revenues.) Some telecommunications providers file the form even though they are not required to contribute. USAC estimates revenues for most non-filers. Filers contribute based on the interstate and international telecommunications revenues that they collect from end-users. On the FCC Form 499-Q, filers project the amount of contribution base they expect to bill in the upcomming quarter and then project the amount of contribution base revenues that they expect to collect. The difference between projected billed revenues and projected collected revenues is amount of revenue that the filer expects to be uncollectible (the implied uncollectible rate). Filers contribute in a quarter based on the end user revenues that they project collecting in that quarter. Filers report actual billings and uncollectibles in their April 1 FCC Form 499-A filings. This information is used to true-up contributions, and provides more accurate information on billings and collections for the year. FCC Form 499-A data for 2008 and 2009 is not yet available for publication. The FCC Form 499-Q collects historic revenues divided into three categories: telecommunications service provided for resale (carrier's carrier); telecommunications service provided to end-users (end user); and other revenues. Telecommunications providers that contribute directly to federal universal service support mechanisms are referred to as "contributors". Telecommunications provided for resale refers to contributors provided to contributors for resale as. Underlying carriers do not contribute based on these revenues. Revenues from services provided to firms that are de minimis or otherwise exempt from federal universal service support mechanisms are reported as end-user service. The other revenue filing category consists of international-to-international revenues and revenues from goods and services that are not classified as U.S. telecommunications. International-to- international service refers to calls that originate in a foreign point, traverse the United States, and terminate in a foreign point. These revenues, which are exempt from universal service contribution, are reported in a separate end-user telecommunications revenue category in the FCC Form 499-A. These revenues are included in telecommunications relay service, local number portability and number administration contribution bases. Sources: The amounts actually used to calculate contribution factors in 2008 and 2009 are shown below. The totals for the year do not match the totals shown above. One reason is that amounts in the table reflect all amounts shown in the FCC Form 499-Q data base, including some estimated amounts for non- filers and amounts reported by filers that are de minimis or do not contribute because they provide only international services. Finally, some difference may be explained by late filings and corrections made to the data base after the Commission calculated contribution factors. 1 - 35 Universal Service Program Requirements and Contribution Factors for 2008 (Dollar Amounts Shown in Millions) First Second Third Fourth Full Quarter Quarter Quarter Quarter Year All Support Mechanisms Projections of demand and administrative expenses at the time the contribution factors were adopted High Cost High Cost Loop Support $372.620 $380.340 $376.740 $379.120 $1,508.820 Local Switching Support $117.050 $118.770 $118.730 $119.010 $473.560 Interstate Common Line Support $395.130 $390.270 $411.630 $430.010 $1,627.040 Interstate Access Support Mechanism $168.760 $171.640 $172.190 $167.010 $679.600 Forward-Looking High Cost Mechanism $87.870 $87.140 $88.190 $89.190 $352.390 Prior Period True-ups -$139.520 -$32.700 -$55.600 -$95.500 -$323.320 Administrative expenses $6.800 $16.830 $15.980 $23.750 $63.360 Interest income 1 -$5.470 -$4.910 -$2.090 -$1.780 -$14.250 Transfer to FCC in accordance with Public Law 110-161 $6.300 $6.300 $12.600 Program Total $1,003.240 $1,127.380 $1,125.770 $1,110.810 $4,367.200 Low Income Lifeline Assistance $200.410 $197.690 $191.670 $197.000 $786.770 Link-Up $7.510 $8.310 $9.060 $9.100 $33.980 Incremental Toll Limitation $2.060 $2.080 $1.850 $1.940 $7.930 Prior Period true-ups -$3.100 -$9.010 -$3.910 -$9.800 -$25.820 Administrative expenses $2.460 $1.060 $0.750 $1.080 $5.350 Interest income 1 -$2.200 -$1.710 -$0.900 -$0.770 -$5.580 Transfer to FCC in accordance with Public Law 110-161 $1.150 $1.150 $2.300 Program Total $207.140 $198.420 $198.520 $198.550 $802.630 Rural Health Rural Health Care Support $25.000 $61.180 $49.640 $49.870 $185.690 Prior Period True-ups -$3.830 -$2.580 -$0.180 $0.950 -$5.640 Administrative expenses $1.900 $2.060 $2.260 $2.180 $8.400 Interest income 1 -$1.790 -$1.720 -$0.890 -$0.900 -$5.300 Transfer to FCC in accordance with Public Law 110-161 $0.190 $0.190 $0.380 Program Total $21.280 $58.940 $50.830 $52.100 $183.150 Schools & Libraries Schools and Libraries Support $562.500 $562.500 $562.500 $562.500 $2,250.000 Prior Period True-ups 2 -$0.950 $2.570 -$6.280 $6.060 $1.400 Administrative expenses $26.870 $29.970 $33.710 $33.940 $124.490 Interest income 1 -$47.650 -$42.360 -$23.820 -$20.940 -$134.770 Transfer to FCC in accordance with Public Law 110-161 $3.100 $3.100 $6.200 Program Total $540.770 $552.680 $566.110 $581.560 $2,241.120 Grand Total $1,772.430 $1,937.420 $1,941.230 $1,943.020 $7,594.100 Applicable interstate and international end-user revenues Reported contribution base revenues $19,193.841 $18,977.952 $19,039.353 $19,011.915 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,745.560 -$1,907.450 -$1,918.260 -$1,919.820 Subtotal $17,448.281 $17,070.502 $17,121.093 $17,092.095 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $17,273.798 $16,899.797 $16,949.882 $16,921.174 Contribution factor 10.2% 11.3% 11.4% 11.4% Contribution factor times contribution base $1,761.927 $1,909.677 $1,932.287 $1,929.014 Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2008/ 1 Interest income is shown as negative because it is subtracted from expenses to yield the total. 2 For the schools & libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods. Table 1.10 1 - 36 Universal Service Program Requirements and Contribution Factors for 2009 (Dollar Amounts Shown in Millions) First Second Third Fourth Full Quarter Quarter Quarter Quarter Year All Support Mechanisms Projections of demand and administrative expenses at the time the contribution factors were adopted High Cost High-Cost Loop Support $362.640 $371.250 $367.890 $369.040 $1,470.820 Local Switching Support $109.370 $110.230 $109.790 $109.230 $438.620 Interstate Common Line Support $355.290 $359.400 $435.120 $435.340 $1,585.150 Interstate Access Support Mechanism $145.420 $143.070 $139.720 $149.650 $577.860 Forward-Looking High Cost Mechanism $84.120 $84.150 $82.060 $82.070 $332.400 Prior Period True-ups -$174.720 -$11.190 $22.220 -$107.760 -$271.450 Administrative expenses $17.000 $22.040 $19.060 $9.500 $67.600 Interest income 1 -$2.010 -$1.500 -$0.750 -$0.460 -$4.720 Sprint & Verizon Wireless Phase Down Recovery 2 -$75.910 -$75.910 Program Total $897.110 $1,077.450 $1,175.110 $970.700 $4,120.370 Low Income Lifeline Assistance $192.630 $193.060 $214.920 $247.650 $848.260 Link-Up $10.050 $9.290 $9.040 $11.460 $39.840 Incremental Toll Limitation $2.210 $2.190 $1.770 $2.630 $8.800 Prior Period true-ups -$20.080 -$5.980 $9.090 $28.250 $11.280 Administrative expenses $1.980 $2.940 $3.240 -$2.130 $6.030 Interest income 1 -$0.760 -$0.570 -$0.330 -$0.190 -$1.850 Program Total $186.030 $200.930 $237.730 $287.670 $912.360 Rural Health Rural Health Care Support $49.490 $49.410 $54.150 $53.410 $206.460 Prior Period True-ups -$21.390 $14.220 $0.100 $0.090 -$6.980 Administrative expenses $4.790 $4.800 $4.100 -$3.210 $10.480 Interest income 1 -$1.080 -$0.940 -$0.640 -$0.440 -$3.100 Program Total $31.810 $67.490 $57.710 $49.850 $206.860 Schools and Libraries Schools and Libraries Support $562.500 $562.500 $562.500 $562.500 $2,250.000 Prior Period True-ups 3 -$46.150 -$9.800 $5.960 -$3.310 -$53.300 Administrative expenses $36.760 $30.690 $20.340 $87.790 Interest income 1 -$21.100 -$15.630 -$10.060 -$6.660 -$53.450 Program Total $532.010 $537.070 $589.090 $572.870 $2,231.040 Grand Total $1,646.960 $1,882.940 $2,059.640 $1,881.090 $7,470.630 Applicable interstate and international end-user revenues Reported contribution base revenues $18,871.047 $18,714.716 $18,032.832 $17,164.439 Circularity Adjustment Amount carriers will contribute to USF in this quarter. -$1,610.200 -$1,882.940 -$2,028.950 -$1,860.750 Subtotal $17,260.847 $16,831.776 $16,003.882 $15,303.689 Adjustment factor for uncollectibles 1.00% 1.00% 1.00% 1.00% Contribution base at the time the factor was calculated $17,088.239 $16,663.458 $15,843.843 $15,150.652 Contribution factor 9.5% 11.3% 12.9% 12.3% Contribution factor times contribution base $1,623.383 $1,882.971 $2,043.856 $1,863.530 Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2009/ 1 Interest income is shown as negative because it is subtracted from expenses to yield the total. 3 For the schools and libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods. Table 1.10 2 The recovery of support for Sprint and Verizon Wireless is consistent with the support phase-down discussion whereby USAC recovers 20% of CETC support over five years until such time Sprint and Verizon Wireless no longer receive any High Cost support. A discussion of the support phase-downs can be found in DA 08-258 and DA 08-259 released in November 2008. 1 - 37 Mechanism Percent of Total Percent of Total High-Cost Support $4,287 61.6 % $4,478 63.0 % High-Cost Loop Support 1,402 20.2 1,457 20.5 Safety Net Additive Support 38 0.6 48 0.7 Safety-Valve 3 0.0 2 0.0 High-Cost Model Support 346 5.0 351 4.9 Long Term Support 0 0.0 0 0.0 Interstate Common Line Support 1,392 20.0 1,621 22.8 Interstate Access Support 645 9.3 585 8.2 Local Switching Support 460 6.6 416 5.9 Low-Income Support 823 11.8 819 11.5 School and Libraries 1,808 26.0 1,760 24.8 Rural Health Care 37 0.5 49 0.7 All Universal Service Support $6,955 100.0 % $7,106 100.0 % Table 1.11 Universal Service Support Mechanisms: 2007 & 2008 (Dollars in Millions) Source: Universal Service Administration Company (USAC). Disbursements 2007 2008 Notes: Figures may not add due to rounding. The figures used in this table are for the calendar year and include disbursements that were committed over several years but paid out in the respective calendar year (2007 or 2008). In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. Disbursements Distribution of Universal Service Payments: 2008 Chart 1.1 Low Income 11.5% High Cost 63.0% Rural Health Care 0.7% Schools & Libraries 24.8% 1 - 38 (Annual Payments and Contributions in Thousands) Payments from USF to Service Providers 1 State or Jurisdiction High-Cost Support Low-Income Support Schools & Libraries Rural Health Care Amount % of Total Amount % of Total Alabama $107,802 $10,282 $37,898 $104 $156,086 2.20% $111,611 1.53% $44,475 Alaska 162,184 21,401 20,405 28,883 232,873 3.28% 23,619 0.32% 209,254 American Samoa 3,986 63 0 108 4,157 0.06% 403 0.01% 3,754 Arizona 69,856 21,742 50,755 1,087 143,440 2.02% 147,454 2.03% -4,014 Arkansas 153,518 3,149 27,567 128 184,362 2.59% 66,452 0.91% 117,910 California 104,936 226,005 230,214 647 561,802 7.91% 810,651 11.14% -248,849 Colorado 80,706 3,190 16,679 35 100,610 1.42% 130,451 1.79% -29,841 Connecticut 180 4,288 27,152 0 31,620 0.44% 97,488 1.34% -65,868 Delaware 213 198 1,739 0 2,150 0.03% 26,714 0.37% -24,564 Dist. of Columbia 0 646 21,403 0 22,049 0.31% 33,942 0.47% -11,893 Florida 77,293 24,283 76,306 270 178,152 2.51% 482,420 6.63% -304,268 Georgia 134,164 13,091 60,230 1,164 208,649 2.94% 234,212 3.22% -25,563 Guam 16,229 311 1,021 0 17,561 0.25% 5,474 0.08% 12,087 Hawaii 61,859 482 2,083 211 64,635 0.91% 32,924 0.45% 31,711 Idaho 53,898 3,531 4,482 195 62,106 0.87% 36,817 0.51% 25,289 Illinois 71,016 9,681 96,473 578 177,748 2.50% 294,630 4.05% -116,882 Indiana 73,994 5,397 25,694 427 105,512 1.48% 138,419 1.90% -32,907 Iowa 133,141 5,025 10,669 328 149,163 2.10% 73,848 1.01% 75,315 Kansas 221,255 3,003 14,262 624 239,144 3.37% 66,494 0.91% 172,650 Kentucky 104,088 7,864 29,611 282 141,845 2.00% 93,883 1.29% 47,962 Louisiana 160,335 4,443 38,242 57 203,077 2.86% 101,957 1.40% 101,120 Maine 32,450 8,070 5,448 57 46,025 0.65% 31,103 0.43% 14,922 Maryland 4,072 669 17,327 0 22,068 0.31% 161,700 2.22% -139,632 Massachusetts 2,365 10,887 23,085 130 36,467 0.51% 163,789 2.25% -127,322 Michigan 63,996 12,204 51,287 742 128,229 1.80% 204,527 2.81% -76,298 Minnesota 133,964 7,824 22,315 1,977 166,080 2.34% 115,679 1.59% 50,401 Mississippi 289,126 7,920 25,615 159 322,820 4.54% 64,894 0.89% 257,926 Missouri 110,530 8,057 17,142 162 135,891 1.91% 142,420 1.96% -6,529 Montana 79,317 4,106 3,471 680 87,574 1.23% 24,899 0.34% 62,675 Nebraska 113,689 2,344 9,248 2,058 127,339 1.79% 41,467 0.57% 85,872 Nevada 27,823 2,748 3,972 32 34,575 0.49% 72,495 1.00% -37,920 New Hampshire 8,662 528 1,819 0 11,009 0.15% 35,780 0.49% -24,771 New Jersey 1,018 12,970 42,185 0 56,173 0.79% 244,715 3.36% -188,542 New Mexico 65,224 15,090 32,584 500 113,398 1.60% 49,317 0.68% 64,081 New York 47,654 35,726 144,891 61 228,332 3.21% 461,576 6.34% -233,244 North Carolina 78,269 15,040 52,882 160 146,351 2.06% 219,459 3.02% -73,108 North Dakota 93,505 3,402 4,480 424 101,811 1.43% 15,436 0.21% 86,375 Northern Mariana Is. 722 138 762 0 1,622 0.02% 1,079 0.01% 543 Ohio 39,973 31,565 66,602 195 138,335 1.95% 253,941 3.49% -115,606 Oklahoma 144,936 63,543 39,070 70 247,619 3.48% 78,646 1.08% 168,973 Oregon 83,955 5,630 10,454 125 100,164 1.41% 87,896 1.21% 12,268 Pennsylvania 54,335 14,974 55,172 91 124,572 1.75% 300,885 4.13% -176,313 Puerto Rico 215,609 23,356 4,452 0 243,417 3.43% 65,458 0.90% 177,959 Rhode Island 31 3,661 5,021 0 8,713 0.12% 24,833 0.34% -16,120 South Carolina 92,472 5,927 23,385 5 121,789 1.71% 107,101 1.47% 14,688 South Dakota 95,246 3,574 8,231 1,184 108,235 1.52% 20,498 0.28% 87,737 Tennessee 55,821 10,772 41,148 402 108,143 1.52% 146,065 2.01% -37,922 Texas 259,685 103,918 147,918 235 511,756 7.20% 508,062 6.98% 3,694 Utah 20,447 3,812 12,744 503 37,506 0.53% 56,028 0.77% -18,522 Vermont 29,084 3,099 1,440 137 33,760 0.48% 18,160 0.25% 15,600 Virgin Islands 21,129 118 5,140 51 26,438 0.37% 7,898 0.11% 18,540 Virginia 74,587 2,437 27,813 743 105,580 1.49% 210,746 2.90% -105,166 Washington 77,042 16,672 25,524 74 119,312 1.68% 147,228 2.02% -27,916 West Virginia 65,325 668 9,801 155 75,949 1.07% 47,010 0.65% 28,939 Wisconsin 146,357 9,037 21,367 3,013 179,774 2.53% 120,389 1.65% 59,385 Wyoming 58,714 731 3,168 205 62,818 0.88% 15,731 0.22% 47,087 Total $4,477,787 $819,292 $1,759,848 $49,458 $7,106,385 100.00% $7,276,774 100.00% -$170,389 2 Estimated contributions include administrative cost of approximately $170 million, as shown in USAC's Annual Report. Allocation of contributions among states is an FCC staff estimate. 3 Net dollar flow is positive when payments from USF to carriers exceed contributions to USF. Total is negative because of administrative expenses. 1 Data from USAC's Annual Report. Table 1.12 Universal Service Support Mechanisms by State: 2008 Estimated Net Dollar Flow 3 Notes: Figures may not add due to rounding. Support payments do not include quarterly true-ups. USF is an abbreviation for the Universal Service Fund. Estimated Contributions 2 Total 1 - 39 Table 1.13 Total Telecommunications Revenues: 2007 (Dollars in Millions) End User Carrier's Carrier Total: End User + Carrier's Carrier Percent Interstate Intrastate Total Interstate Intrastate Total Interstate Intrastate Total of Total Alabama $1,246 $2,503 $3,749 $522 $347 $869 $1,768 $2,851 $4,619 1.54 % Alaska 264 394 657 121 56 177 385 450 835 0.28 American Samoa 5 12 17 2 2 4 7 14 21 0.01 Arizona 1,646 2,891 4,537 766 381 1,148 2,412 3,272 5,685 1.90 Arkansas 742 1,462 2,204 362 205 567 1,104 1,667 2,771 0.93 California 9,050 19,189 28,239 4,145 2,937 7,083 13,195 22,126 35,322 11.80 Colorado 1,456 2,496 3,952 766 349 1,115 2,222 2,845 5,067 1.69 Connecticut 1,088 1,925 3,013 527 204 731 1,616 2,129 3,745 1.25 Delaware 298 473 771 147 53 200 446 526 971 0.32 Dist. of Columbia 379 694 1,073 228 79 307 607 773 1,380 0.46 Florida 5,386 9,991 15,376 2,219 1,373 3,592 7,605 11,364 18,969 6.33 Georgia 2,615 5,038 7,653 1,194 640 1,835 3,809 5,678 9,487 3.17 Guam 61 72 133 28 10 38 89 83 172 0.06 Hawaii 368 644 1,011 158 92 250 525 736 1,261 0.42 Idaho 411 668 1,079 214 97 311 625 765 1,390 0.46 Illinois 3,289 6,327 9,616 1,376 801 2,177 4,665 7,128 11,794 3.94 Indiana 1,545 2,896 4,442 670 412 1,082 2,216 3,308 5,524 1.84 Iowa 824 1,391 2,216 396 260 657 1,221 1,651 2,872 0.96 Kansas 742 1,367 2,110 359 162 521 1,102 1,529 2,631 0.88 Kentucky 1,048 2,086 3,134 437 322 760 1,485 2,409 3,894 1.30 Louisiana 1,138 2,460 3,599 439 331 770 1,577 2,791 4,369 1.46 Maine 347 774 1,121 181 109 290 528 883 1,411 0.47 Maryland 1,805 3,190 4,995 872 398 1,270 2,677 3,589 6,266 2.09 Massachusetts 1,828 3,771 5,600 897 466 1,364 2,726 4,238 6,963 2.33 Michigan 2,283 4,785 7,068 973 704 1,677 3,256 5,489 8,745 2.92 Minnesota 1,291 2,448 3,740 643 339 982 1,934 2,788 4,722 1.58 Mississippi 724 1,469 2,193 307 195 501 1,031 1,663 2,695 0.90 Missouri 1,590 3,025 4,615 743 567 1,310 2,332 3,592 5,925 1.98 Montana 278 461 739 135 83 218 413 544 957 0.32 Nebraska 463 896 1,359 232 154 386 695 1,051 1,745 0.58 Nevada 809 1,287 2,096 343 151 494 1,152 1,438 2,591 0.87 New Hampshire 399 717 1,117 193 102 295 593 819 1,412 0.47 New Jersey 2,732 4,836 7,568 1,323 645 1,967 4,055 5,481 9,535 3.18 New Mexico 551 912 1,463 279 149 428 830 1,061 1,891 0.63 New York 5,153 11,173 16,326 2,460 1,679 4,139 7,613 12,852 20,465 6.83 North Carolina 2,450 4,652 7,102 997 658 1,655 3,447 5,309 8,757 2.92 North Dakota 172 323 495 92 54 147 265 377 642 0.21 N. Mariana Islands 12 22 34 6 3 9 18 25 43 0.01 Ohio 2,835 5,808 8,643 1,250 896 2,146 4,085 6,704 10,789 3.60 Oklahoma 878 1,752 2,630 439 228 667 1,317 1,980 3,297 1.10 Oregon 981 1,746 2,728 476 252 728 1,457 1,999 3,456 1.15 Pennsylvania 3,359 6,330 9,689 1,604 967 2,571 4,963 7,296 12,260 4.09 Puerto Rico 731 1,383 2,113 287 138 425 1,018 1,520 2,538 0.85 Rhode Island 277 579 856 120 71 191 397 650 1,047 0.35 South Carolina 1,196 2,289 3,484 495 335 830 1,690 2,624 4,314 1.44 South Dakota 229 360 588 104 65 169 333 424 757 0.25 Tennessee 1,631 3,251 4,881 635 387 1,021 2,265 3,637 5,902 1.97 Texas 5,672 12,658 18,330 2,753 1,859 4,611 8,424 14,517 22,941 7.66 Utah 625 1,121 1,746 315 155 471 941 1,276 2,217 0.74 Vermont 203 339 542 102 47 149 305 386 691 0.23 Virgin Islands 88 76 164 40 11 51 129 87 215 0.07 Virginia 2,353 4,208 6,561 1,173 590 1,763 3,526 4,798 8,324 2.78 Washington 1,644 3,005 4,649 755 423 1,178 2,399 3,428 5,827 1.95 West Virginia 525 881 1,406 251 137 388 776 1,018 1,794 0.60 Wisconsin 1,344 2,593 3,937 619 392 1,012 1,963 2,986 4,949 1.65 Wyoming 176 281 456 96 41 137 272 322 594 0.20 Total $81,236 $158,380 $239,616 $37,270 $22,566 $59,836 $118,506 $180,947 $299,452 100.00 % Note: Figures may not add due to rounding. 1 - 40 Table 1.14 2007 Telecommunications Revenues (In Millions of Dollars) Incumbent Subcriber Local Exchange Mobile Line Services 1/ Wireless Charges 2/ Access 3/ Toll 4/ Total End-User Revenues Intrastate $47,883 $11,152 $87,094 $0 $0 $12,252 $158,380 Interstate 88 5,674 28,757 10,324 3,566 32,827 81,235 Intrastate + Interstate 47,971 16,826 115,851 10,324 3,566 45,079 239,615 Carriers' Carrier Revenues Intrastate 8,105 2,239 4,185 0 5,136 2,902 22,566 Interstate 4,695 2,626 1,172 0 17,099 11,679 37,270 Intrastate + Interstate 12,800 4,864 5,356 0 22,235 14,582 59,837 Total Revenues Intrastate 55,988 13,391 91,278 0 5,136 15,154 180,946 Interstate 4,783 8,299 29,929 10,324 20,664 44,506 118,506 Intrastate + Interstate 60,771 21,690 121,207 10,324 25,800 59,660 299,451 1/ Excludes subscriber line charges. 2/ Intrastate subscriber line charges are included under access. 3/ Interstate access includes switched access, special access and local private line. 4/ Intrastate toll includes both incumbent local exchange carrier (LEC) toll and non-ILEC toll. Notes: Interstate revenues include both interstate and international revenues. CLECs End-user revenues are from Table 1.6. CLEC revenues include telecommunication revenues provided to end users by CLECs (including local exchange service, mobile wireless, subscriber line charge, access and toll revenues). Revenues in the other categories (incumbent local exchange service, mobile wireless, subscriber line charge, access and toll) include revenues from all filers other than CLECs. Intrastate incumbent local exchange service revenues include fixed local service revenues provided to end users. Interstate incumbent local exchange revenues include interstate revenues from Form 499- A, Telecommunications Reporting Worksheets, lines 404, 407 and 408. Mobile wireless revenues include mobile wireless revenues provided to end users. Subscriber line charge revenues include revenues from line 405 and 428. Toll revenues include toll service revenues provided to end users. Carrier's carrier revenues are from Table 1.5. CLEC revenues include telecommunications revenues provided for resale by CLECs (including local exchange service, mobile wireless, access and toll). Revenues in the other categories (incumbent local exchange service, mobile wireless, access and toll) include revenues for all filers other than CLECs. Intrastate Incumbent local exchange service revenues include revenues from lines 303, 305, 306, 307 and 308. Interstate incumbent local exchange service revenues include revenues from lines 303, 306, 307 and 308. Mobile wireless revenues include mobile service revenues provided for resale. Intrastate access revenues include revenues in line 304. Interstate access revenues include revenues in lines 304 and 305. Toll revenues include toll service revenues for resale. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues: 2007 (September 2009). 1 - 41 Table 1.15 Intrastate Telecommunications Revenues: 2007 Total: End User + Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $1,041 $139 $1,380 63 $34 $194 $2,851 Alaska NA NA NA NA NA NA 450 American Samoa NA NA NA NA NA NA 14 Arizona 810 487 1,774 71 4 126 3,272 Arkansas 559 83 822 51 65 87 1,667 California 6,170 1,352 11,557 857 401 1,789 22,126 Colorado 993 198 1,437 72 4 141 2,845 Connecticut 776 122 1,066 19 133 13 2,129 Delaware 174 46 277 4 12 12 526 District of Columbia 335 64 370 3 0 2 773 Florida 3,804 606 5,837 285 132 699 11,364 Georgia 2,037 341 2,907 95 47 251 5,678 Guam NA NA NA NA NA NA 83 Hawaii 229 41 408 27 5 25 736 Idaho 273 36 390 25 4 38 765 Illinois 2,135 443 3,807 168 263 312 7,128 Indiana 1,098 137 1,702 101 60 210 3,308 Iowa 497 117 787 97 4 149 1,651 Kansas 458 163 816 15 13 64 1,529 Kentucky 791 153 1,187 86 17 176 2,409 Louisiana 957 169 1,382 51 26 206 2,791 Maine 314 63 337 11 48 110 883 Maryland 1,155 246 1,844 57 86 201 3,589 Massachusetts 1,264 404 2,024 32 134 380 4,238 Michigan 1,539 431 2,806 198 174 340 5,489 Minnesota 786 307 1,467 70 3 155 2,788 Mississippi 634 58 792 23 17 138 1,663 Missouri 1,149 204 1,714 218 16 292 3,592 Montana 187 38 249 28 1 41 544 Nebraska 295 120 507 51 4 74 1,051 Nevada 416 166 801 18 3 34 1,438 New Hampshire 229 80 372 17 33 87 819 New Jersey 1,493 418 2,839 144 236 350 5,481 New Mexico 363 36 542 49 3 69 1,061 New York 3,503 1,338 6,084 316 146 1,465 12,852 North Carolina 1,762 395 2,664 142 44 303 5,309 North Dakota 109 33 188 18 1 29 377 N. Mariana Islands NA NA NA NA NA NA 25 Ohio 2,064 499 3,337 250 94 459 6,704 Oklahoma 649 196 984 36 30 85 1,980 Oregon 602 152 1,064 65 7 109 1,999 Pennsylvania 2,062 710 3,520 265 229 511 7,296 Puerto Rico 503 61 889 12 49 7 1,520 Rhode Island 135 136 317 3 11 48 650 South Carolina 910 163 1,278 79 34 159 2,624 South Dakota 98 54 218 25 1 28 424 Tennessee 1,267 225 1,902 38 38 166 3,637 Texas 4,874 867 7,190 451 188 946 14,517 Utah 332 113 717 38 3 73 1,276 Vermont 158 22 143 5 20 37 386 Virginia 1,431 489 2,352 118 94 313 4,798 Virgin Islands NA NA NA NA NA NA 87 Washington 919 224 1,926 111 24 225 3,428 West Virginia 416 57 419 30 22 75 1,018 Wisconsin 916 319 1,393 100 80 177 2,986 Wyoming 114 22 157 9 1 19 322 Total 2/ $55,987 $13,391 $91,277 $5,136 $3,109 $12,045 $180,947 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. (Dollars in Millions) 1 - 42 Table 1.15 Intrastate Telecommunications Revenues: 2007 - Continued (Dollars in Millions) End User Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $890 $116 $1,316 $0 $34 $148 $2,503 Alaska NA NA NA NA NA NA 394 American Samoa NA NA NA NA NA NA 12 Arizona 693 405 1,693 0 4 96 2,891 Arkansas 478 69 785 0 65 66 1,462 California 5,277 1,126 11,027 0 401 1,358 19,189 Colorado 849 165 1,371 0 4 107 2,496 Connecticut 663 101 1,017 0 133 10 1,925 Delaware 149 39 264 0 12 9 473 District of Columbia 287 53 353 0 0 1 694 Florida 3,254 504 5,570 0 132 531 9,991 Georgia 1,743 284 2,774 0 47 191 5,038 Guam NA NA NA NA NA NA 72 Hawaii 196 34 389 0 5 19 644 Idaho 233 30 372 0 4 29 668 Illinois 1,826 369 3,632 0 263 237 6,327 Indiana 939 114 1,624 0 60 160 2,896 Iowa 425 97 751 0 4 113 1,391 Kansas 392 136 779 0 13 48 1,367 Kentucky 676 127 1,132 0 17 133 2,086 Louisiana 818 141 1,319 0 26 156 2,460 Maine 268 53 322 0 48 83 774 Maryland 988 205 1,759 0 86 152 3,190 Massachusetts 1,081 336 1,931 0 134 288 3,771 Michigan 1,316 359 2,677 0 174 258 4,785 Minnesota 672 256 1,400 0 3 118 2,448 Mississippi 542 49 756 0 17 105 1,469 Missouri 983 170 1,636 0 16 221 3,025 Montana 160 32 237 0 1 31 461 Nebraska 252 100 484 0 4 56 896 Nevada 356 138 764 0 3 26 1,287 New Hampshire 196 67 355 0 33 66 717 New Jersey 1,277 348 2,709 0 236 266 4,836 New Mexico 310 30 517 0 3 52 912 New York 2,996 1,114 5,805 0 146 1,112 11,173 North Carolina 1,507 329 2,542 0 44 230 4,652 North Dakota 93 27 180 0 1 22 323 N. Mariana Islands NA NA NA NA NA NA 22 Ohio 1,766 415 3,184 0 94 349 5,808 Oklahoma 555 163 939 0 30 64 1,752 Oregon 515 126 1,015 0 7 83 1,746 Pennsylvania 1,763 591 3,359 0 229 388 6,330 Puerto Rico 430 51 848 0 49 5 1,383 Rhode Island 115 113 303 0 11 36 579 South Carolina 778 135 1,219 0 34 121 2,289 South Dakota 84 45 208 0 1 21 360 Tennessee 1,084 188 1,815 0 38 126 3,251 Texas 4,169 722 6,861 0 188 718 12,658 Utah 284 94 684 0 3 56 1,121 Vermont 135 18 137 0 20 28 339 Virginia 1,224 407 2,245 0 94 238 4,208 Virgin Islands NA NA NA NA NA NA 76 Washington 786 186 1,838 0 24 171 3,005 West Virginia 355 47 400 0 22 57 881 Wisconsin 783 266 1,329 0 80 135 2,593 Wyoming 97 18 150 0 1 15 281 Total 2/ $47,882 $11,152 $87,093 $0 $3,109 $9,142 $158,380 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 43 Table 1.15 Intrastate Telecommunications Revenues: 2007 - Continued (Dollars in Millions) Carrier's Carrier Incumbent Mobile ILEC Non-ILEC Local Exchange 1/ CLECs Wireless Access Toll Toll Total Alabama $151 $23 $63 $63 $0 $47 $347 Alaska NA NA NA NA NA NA 56 American Samoa NA NA NA NA NA NA 2 Arizona 117 81 81 71 0 30 381 Arkansas 81 14 38 51 0 21 205 California 893 226 530 857 0 431 2,937 Colorado 144 33 66 72 0 34 349 Connecticut 112 20 49 19 0 3 204 Delaware 25 8 13 4 0 3 53 District of Columbia 49 11 17 3 0 0 79 Florida 551 101 268 285 0 169 1,373 Georgia 295 57 133 95 0 61 640 Guam NA NA NA NA NA NA 10 Hawaii 33 7 19 27 0 6 92 Idaho 39 6 18 25 0 9 97 Illinois 309 74 175 168 0 75 801 Indiana 159 23 78 101 0 51 412 Iowa 72 20 36 97 0 36 260 Kansas 66 27 37 15 0 15 162 Kentucky 114 26 54 86 0 42 322 Louisiana 139 28 63 51 0 50 331 Maine 45 11 15 11 0 26 109 Maryland 167 41 85 57 0 48 398 Massachusetts 183 68 93 32 0 92 466 Michigan 223 72 129 198 0 82 704 Minnesota 114 51 67 70 0 37 339 Mississippi 92 10 36 23 0 33 195 Missouri 166 34 79 218 0 70 567 Montana 27 6 11 28 0 10 83 Nebraska 43 20 23 51 0 18 154 Nevada 60 28 37 18 0 8 151 New Hampshire 33 13 17 17 0 21 102 New Jersey 216 70 130 144 0 84 645 New Mexico 53 6 25 49 0 17 149 New York 507 224 279 316 0 353 1,679 North Carolina 255 66 122 142 0 73 658 North Dakota 16 6 9 18 0 7 54 N. Mariana Islands NA NA NA NA NA NA 3 Ohio 299 83 153 250 0 111 896 Oklahoma 94 33 45 36 0 20 228 Oregon 87 25 49 65 0 26 252 Pennsylvania 298 119 161 265 0 123 967 Puerto Rico 73 10 41 12 0 2 138 Rhode Island 19 23 15 3 0 12 71 South Carolina 132 27 59 79 0 38 335 South Dakota 14 9 10 25 0 7 65 Tennessee 183 38 87 38 0 40 387 Texas 706 145 330 451 0 228 1,859 Utah 48 19 33 38 0 18 155 Vermont 23 4 7 5 0 9 47 Virginia 207 82 108 118 0 75 590 Virgin Islands NA NA NA NA NA NA 11 Washington 133 37 88 111 0 54 423 West Virginia 60 9 19 30 0 18 137 Wisconsin 133 53 64 100 0 43 392 Wyoming 16 4 7 9 0 5 41 Total 2/ $8,104 $2,239 $4,184 $5,136 $0 $2,902 $22,566 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 44 Table 1.16 (Dollars in Millions) Total: End User + Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $89 $86 $452 $174 $240 $727 $1,768 Alaska NA NA NA NA NA NA 385 American Samoa NA NA NA NA NA NA 7 Arizona 69 301 581 187 436 839 2,412 Arkansas 48 51 269 88 210 438 1,104 California 526 837 3,783 1,068 2,450 4,531 13,195 Colorado 85 123 470 205 485 854 2,222 Connecticut 66 75 349 137 293 696 1,616 Delaware 15 29 91 37 85 190 446 District of Columbia 29 40 121 35 146 237 607 Florida 324 375 1,911 770 1,059 3,165 7,605 Georgia 174 211 952 337 636 1,500 3,809 Guam NA NA NA NA NA NA 89 Hawaii 20 25 134 57 87 203 525 Idaho 23 23 128 57 133 262 625 Illinois 182 274 1,246 385 682 1,896 4,665 Indiana 94 85 557 233 359 889 2,216 Iowa 42 72 258 93 219 536 1,221 Kansas 39 101 267 74 205 416 1,102 Kentucky 67 95 388 144 209 581 1,485 Louisiana 82 105 452 161 184 594 1,577 Maine 27 39 110 48 103 201 528 Maryland 99 152 603 222 502 1,099 2,677 Massachusetts 108 250 663 235 532 938 2,726 Michigan 131 267 918 294 516 1,130 3,256 Minnesota 67 190 480 156 398 643 1,934 Mississippi 54 36 259 96 139 446 1,031 Missouri 98 126 561 206 411 930 2,332 Montana 16 24 81 42 76 174 413 Nebraska 25 74 166 47 136 246 695 Nevada 35 103 262 71 154 527 1,152 New Hampshire 20 49 122 49 108 244 593 New Jersey 127 259 929 348 800 1,592 4,055 New Mexico 31 22 177 92 180 328 830 New York 299 828 1,992 600 1,424 2,471 7,613 North Carolina 150 244 872 338 451 1,391 3,447 North Dakota 9 20 62 20 60 93 265 N. Mariana Islands NA NA NA NA NA NA 18 Ohio 176 309 1,092 362 661 1,484 4,085 Oklahoma 55 121 322 103 259 457 1,317 Oregon 51 94 348 129 289 546 1,457 Pennsylvania 176 439 1,152 478 946 1,773 4,963 Puerto Rico 43 38 291 81 130 436 1,018 Rhode Island 11 84 104 26 58 114 397 South Carolina 78 101 418 158 221 715 1,690 South Dakota 8 34 71 22 54 143 333 Tennessee 108 140 623 223 270 903 2,265 Texas 416 537 2,354 686 1,627 2,804 8,424 Utah 28 70 235 76 207 325 941 Vermont 14 14 47 29 53 149 305 Virginia 122 303 770 299 698 1,334 3,526 Virgin Islands NA NA NA NA NA NA 129 Washington 78 138 631 213 457 881 2,399 West Virginia 35 35 137 74 125 370 776 Wisconsin 78 197 456 180 330 722 1,963 Wyoming 10 13 51 24 62 112 272 Total 2/ $4,783 $8,299 $29,928 $10,323 $20,664 $44,505 $118,506 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. Interstate Telecommunications Revenues: 2007 1 - 45 Table 1.16 Interstate Telecommunications Revenues: 2007 - Continued (Dollars in Millions) End User Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $2 $59 $434 $174 $41 $536 $1,246 Alaska NA NA NA NA NA NA 264 American Samoa NA NA NA NA NA NA 5 Arizona 1 206 558 187 75 618 1,646 Arkansas 1 35 259 88 36 323 742 California 10 572 3,635 1,068 423 3,342 9,050 Colorado 2 84 452 205 84 630 1,456 Connecticut 1 51 335 137 51 513 1,088 Delaware 0 20 87 37 15 140 298 District of Columbia 1 27 116 35 25 175 379 Florida 6 256 1,836 770 183 2,335 5,386 Georgia 3 144 914 337 110 1,106 2,615 Guam NA NA NA NA NA NA 61 Hawaii 0 17 128 57 15 150 368 Idaho 0 15 123 57 23 193 411 Illinois 3 187 1,197 385 118 1,398 3,289 Indiana 2 58 535 233 62 656 1,545 Iowa 1 50 248 93 38 395 824 Kansas 1 69 257 74 35 307 742 Kentucky 1 65 373 144 36 429 1,048 Louisiana 2 72 435 161 32 438 1,138 Maine 0 27 106 48 18 148 347 Maryland 2 104 580 222 87 811 1,805 Massachusetts 2 171 637 235 92 692 1,828 Michigan 2 182 883 294 89 833 2,283 Minnesota 1 130 461 156 69 474 1,291 Mississippi 1 25 249 96 24 329 724 Missouri 2 86 539 206 71 686 1,590 Montana 0 16 78 42 13 128 278 Nebraska 0 51 159 47 24 181 463 Nevada 1 70 252 71 27 389 809 New Hampshire 0 34 117 49 19 180 399 New Jersey 2 177 893 348 138 1,174 2,732 New Mexico 1 15 170 92 31 242 551 New York 6 566 1,914 600 246 1,822 5,153 North Carolina 3 167 838 338 78 1,026 2,450 North Dakota 0 14 59 20 10 68 172 N. Mariana Islands NA NA NA NA NA NA 12 Ohio 3 211 1,050 362 114 1,094 2,835 Oklahoma 1 83 310 103 45 337 878 Oregon 1 64 335 129 50 402 981 Pennsylvania 3 300 1,107 478 163 1,307 3,359 Puerto Rico 1 26 280 81 22 322 731 Rhode Island 0 57 100 26 10 84 277 South Carolina 1 69 402 158 38 527 1,196 South Dakota 0 23 69 22 9 105 229 Tennessee 2 95 598 223 47 666 1,631 Texas 8 367 2,262 686 281 2,069 5,672 Utah 1 48 226 76 36 240 625 Vermont 0 9 45 29 9 110 203 Virginia 2 207 740 299 120 984 2,353 Virgin Islands NA NA NA NA NA NA 88 Washington 1 95 606 213 79 650 1,644 West Virginia 1 24 132 74 21 273 525 Wisconsin 1 135 438 180 57 533 1,344 Wyoming 0 9 49 24 11 82 176 Total 2/ $89 $5,674 $28,756 $10,323 $3,565 $32,826 $81,236 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. 1 - 46 Table 1.16 Interstate Telecommunications Revenues: 2007 - Continued Carrier's Carrier Incumbent Mobile Local Exchange 1/ CLECs Wireless SLCs Access Toll Total Alabama $87 $27 $18 $0 $199 $191 $522 Alaska NA NA NA NA NA NA 121 American Samoa NA NA NA NA NA NA 2 Arizona 68 95 23 0 360 220 766 Arkansas 47 16 11 0 174 115 362 California 517 265 148 0 2,027 1,189 4,145 Colorado 83 39 18 0 402 224 766 Connecticut 65 24 14 0 242 183 527 Delaware 15 9 4 0 70 50 147 District of Columbia 28 13 5 0 121 62 228 Florida 318 119 75 0 877 831 2,219 Georgia 171 67 37 0 526 394 1,194 Guam NA NA NA NA NA NA 28 Hawaii 19 8 5 0 72 53 158 Idaho 23 7 5 0 110 69 214 Illinois 179 87 49 0 565 497 1,376 Indiana 92 27 22 0 297 233 670 Iowa 42 23 10 0 181 141 396 Kansas 38 32 10 0 169 109 359 Kentucky 66 30 15 0 173 152 437 Louisiana 80 33 18 0 152 156 439 Maine 26 12 4 0 85 53 181 Maryland 97 48 24 0 415 288 872 Massachusetts 106 79 26 0 440 246 897 Michigan 129 84 36 0 427 296 973 Minnesota 66 60 19 0 329 169 643 Mississippi 53 11 10 0 115 117 307 Missouri 96 40 22 0 340 244 743 Montana 16 8 3 0 63 46 135 Nebraska 25 24 6 0 113 65 232 Nevada 35 32 10 0 127 138 343 New Hampshire 19 16 5 0 90 64 193 New Jersey 125 82 36 0 662 418 1,323 New Mexico 30 7 7 0 149 86 279 New York 293 262 78 0 1,179 648 2,460 North Carolina 148 77 34 0 373 365 997 North Dakota 9 6 2 0 50 24 92 N. Mariana Islands NA NA NA NA NA NA 6 Ohio 173 98 43 0 547 389 1,250 Oklahoma 54 38 13 0 214 120 439 Oregon 50 30 14 0 239 143 476 Pennsylvania 173 139 45 0 782 465 1,604 Puerto Rico 42 12 11 0 107 114 287 Rhode Island 11 27 4 0 48 30 120 South Carolina 76 32 16 0 183 188 495 South Dakota 8 11 3 0 45 37 104 Tennessee 106 44 24 0 223 237 635 Texas 408 170 92 0 1,347 736 2,753 Utah 28 22 9 0 171 85 315 Vermont 13 4 2 0 44 39 102 Virginia 120 96 30 0 577 350 1,173 Virgin Islands NA NA NA NA NA NA 40 Washington 77 44 25 0 379 231 755 West Virginia 35 11 5 0 103 97 251 Wisconsin 77 62 18 0 273 190 619 Wyoming 10 4 2 0 51 29 96 Total 2/ $4,695 $2,626 $1,172 $0 $17,098 $11,679 $37,270 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Excludes subscriber line charges. 2/ Totals in the first six columns include revenues for locations not estimated. (Dollars in Millions) 1 - 47 Table 1.17 Adjustment Formula: 2007 Average Percent Adjustment Formula Reporting 2/ 100/Average Percent 2007 2007 Reporting Alabama 1,970,808 90.1 % 1.11 Alaska 337,614 0.0 NA American Samoa 10,594 0.0 NA Arizona 2,076,125 92.1 1.09 Arkansas 1,162,844 67.1 1.49 California 18,406,883 98.3 1.02 Colorado 2,132,055 94.9 1.05 Connecticut 1,709,510 98.9 1.01 Delaware 444,456 100.0 1.00 District of Columbia 668,803 100.0 1.00 Florida 8,422,504 98.1 1.02 Georgia 3,875,280 87.9 1.14 Guam 62,004 0.0 NA Hawaii 543,734 99.8 1.00 Idaho 632,849 90.4 1.11 Illinois 6,000,648 95.0 1.05 Indiana 2,854,564 95.3 1.05 Iowa 1,291,940 81.0 1.23 Kansas 1,104,052 82.5 1.21 Kentucky 1,667,945 91.5 1.09 Louisiana 1,802,351 91.7 1.09 Maine 675,014 81.9 1.22 Maryland 3,040,460 99.8 1.00 Massachusetts 2,969,742 99.9 1.00 Michigan 4,154,613 96.1 1.04 Minnesota 2,258,483 69.8 1.43 Mississippi 1,117,195 92.8 1.08 Missouri 2,759,571 90.1 1.11 Montana 417,198 65.8 1.52 Nebraska 679,178 77.7 1.29 Nevada 1,077,677 95.4 1.05 New Hampshire 617,676 92.5 1.08 New Jersey 4,516,948 99.8 1.00 New Mexico 822,959 84.3 1.19 New York 8,304,253 96.4 1.04 North Carolina 3,860,991 89.4 1.12 North Dakota 284,695 51.5 1.94 N. Mariana Islands 18,719 0.0 NA Ohio 4,924,217 94.9 1.05 Oklahoma 1,432,001 79.9 1.25 Oregon 1,587,119 91.3 1.09 Pennsylvania 6,108,671 95.5 1.05 Puerto Rico 924,692 100.0 1.00 Rhode Island 348,325 100.0 1.00 South Carolina 1,839,847 71.7 1.40 South Dakota 283,872 57.9 1.73 Tennessee 2,617,191 85.2 1.17 Texas 9,692,891 92.2 1.08 Utah 920,272 91.3 1.10 Vermont 363,274 84.2 1.19 Virginia 3,611,657 97.3 1.03 Virgin Islands 64,964 0.0 NA Washington 2,743,179 97.5 1.03 West Virginia 859,788 82.5 1.21 Wisconsin 2,477,557 72.1 1.39 Wyoming 235,173 82.3 1.21 Total 135,789,632 92.5 % 1.08 NA - Not Applicable. 1/ USF loops, a measure of access lines, are defined in subcategory 1.3 of 47 C.F.R. 36.154(a). 2/ Average percent reporting to ARMIS (Report 43-01) is based on USF loops. USF Loops 1/ Year End 1 - 48 Table 1.18 Information for Allocating Incumbent Local Exchange Revenues: 2007 (Dollars in Millions) Revenues Interstate for Total Allocation Revenues Alabama $900 1.87 % $890 $2 $1,041 $89 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 701 1.45 693 1 810 69 Arkansas 483 1.00 478 1 559 48 California 5,335 11.06 5,277 10 6,170 526 Colorado 858 1.78 849 2 993 85 Connecticut 671 1.39 663 1 776 66 Delaware 150 0.31 149 0 174 15 District of Columbia 290 0.60 287 1 335 29 Florida 3,289 6.82 3,254 6 3,804 324 Georgia 1,762 3.65 1,743 3 2,037 174 Guam NA NA NA NA NA NA Hawaii 198 0.41 196 0 229 20 Idaho 236 0.49 233 0 273 23 Illinois 1,846 3.83 1,826 3 2,135 182 Indiana 950 1.97 939 2 1,098 94 Iowa 429 0.89 425 1 497 42 Kansas 396 0.82 392 1 458 39 Kentucky 684 1.42 676 1 791 67 Louisiana 827 1.72 818 2 957 82 Maine 271 0.56 268 0 314 27 Maryland 999 2.07 988 2 1,155 99 Massachusetts 1,093 2.27 1,081 2 1,264 108 Michigan 1,331 2.76 1,316 2 1,539 131 Minnesota 679 1.41 672 1 786 67 Mississippi 548 1.14 542 1 634 54 Missouri 994 2.06 983 2 1,149 98 Montana 162 0.34 160 0 187 16 Nebraska 255 0.53 252 0 295 25 Nevada 360 0.75 356 1 416 35 New Hampshire 198 0.41 196 0 229 20 New Jersey 1,291 2.68 1,277 2 1,493 127 New Mexico 314 0.65 310 1 363 31 New York 3,029 6.28 2,996 6 3,503 299 North Carolina 1,524 3.16 1,507 3 1,762 150 North Dakota 94 0.19 93 0 109 9 Northern Mariana Islands NA NA NA NA NA NA Ohio 1,785 3.70 1,766 3 2,064 176 Oklahoma 561 1.16 555 1 649 55 Oregon 521 1.08 515 1 602 51 Pennsylvania 1,783 3.70 1,763 3 2,062 176 Puerto Rico 435 0.90 430 1 503 43 Rhode Island 116 0.24 115 0 135 11 South Carolina 787 1.63 778 1 910 78 South Dakota 85 0.18 84 0 98 8 Tennessee 1,096 2.27 1,084 2 1,267 108 Texas 4,215 8.74 4,169 8 4,874 416 Utah 287 0.59 284 1 332 28 Vermont 137 0.28 135 0 158 14 Virginia 1,237 2.56 1,224 2 1,431 122 Virgin Islands NA NA NA NA NA NA Washington 794 1.65 786 1 919 78 West Virginia 359 0.75 355 1 416 35 Wisconsin 792 1.64 783 1 916 78 Wyoming 98 0.20 97 0 114 10 Total 1/ $48,233 100.00 % $47,882 $89 $55,987 $4,783 NA - Not Applicable. Note: Incumbent local exchange revenues exclude SLC. Figures may not add due to rounding. 1/ Totals in the last four columns include revenues for locations not estimated. Allocation Percentage Revenues Interstate End-User RevenuesRevenues Total Intrastate End-User Intrastate 1 - 49 Table 1.19 Information for Allocating CLEC Revenues: 2007 (Dollars in Millions) CLEC Allocation Interstate Interstate Intrastate Intrastate Lines Percentage End-User Total End-User Total Jun 07 1/ Revenues Revenues Revenues Revenues Alabama 297,649 1.04 % $59 $86 $116 $139 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 1,042,689 3.65 206 301 405 487 Arkansas 178,090 0.62 35 51 69 83 California 2,898,469 10.14 572 837 1,126 1,352 Colorado 425,205 1.49 84 123 165 198 Connecticut 260,817 0.91 51 75 101 122 Delaware 99,237 0.35 20 29 39 46 District of Columbia 137,088 0.48 27 40 53 64 Florida 1,298,169 4.54 256 375 504 606 Georgia 729,770 2.55 144 211 284 341 Guam NA NA NA NA NA NA Hawaii 87,551 0.31 17 25 34 41 Idaho 78,053 0.27 15 23 30 36 Illinois 949,607 3.32 187 274 369 443 Indiana 292,751 1.02 58 85 114 137 Iowa 250,859 0.88 50 72 97 117 Kansas 349,366 1.22 69 101 136 163 Kentucky 327,737 1.15 65 95 127 153 Louisiana 363,022 1.27 72 105 141 169 Maine 135,213 0.47 27 39 53 63 Maryland 527,181 1.84 104 152 205 246 Massachusetts 865,351 3.03 171 250 336 404 Michigan 923,265 3.23 182 267 359 431 Minnesota 658,897 2.30 130 190 256 307 Mississippi 125,099 0.44 25 36 49 58 Missouri 436,388 1.53 86 126 170 204 Montana 82,330 0.29 16 24 32 38 Nebraska 257,518 0.90 51 74 100 120 Nevada 355,806 1.24 70 103 138 166 New Hampshire 171,449 0.60 34 49 67 80 New Jersey 896,827 3.14 177 259 348 418 New Mexico 76,701 0.27 15 22 30 36 New York 2,867,919 10.03 566 828 1,114 1,338 North Carolina 846,146 2.96 167 244 329 395 North Dakota 70,727 0.25 14 20 27 33 N. Mariana Islands NA NA NA NA NA NA Ohio 1,068,758 3.74 211 309 415 499 Oklahoma 419,998 1.47 83 121 163 196 Oregon 325,293 1.14 64 94 126 152 Pennsylvania 1,520,708 5.32 300 439 591 710 Puerto Rico * 0.46 26 38 51 61 Rhode Island 291,057 1.02 57 84 113 136 South Carolina 348,666 1.22 69 101 135 163 South Dakota 116,651 0.41 23 34 45 54 Tennessee 483,262 1.69 95 140 188 225 Texas 1,858,766 6.50 367 537 722 867 Utah 242,423 0.85 48 70 94 113 Vermont 47,415 0.17 9 14 18 22 Virginia 1,048,063 3.67 207 303 407 489 Virgin Islands NA NA NA NA NA NA Washington 479,502 1.68 95 138 186 224 West Virginia 121,173 0.42 24 35 47 57 Wisconsin 683,624 2.39 135 197 266 319 Wyoming 46,164 0.16 9 13 18 22 Total 3/ 28,729,220 100.00 % $5,674 $8,299 $11,152 $13,391 NA - Not Applicable. * Data withheld to maintain firms confidentiality. Allocation percentage based on Puerto Rico's personal income. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (July 2009). 2/ Totals in the last four columns include revenues for locations not estimated. 1 - 50 Table 1.20 Information for Allocating Mobile Wireless Revenues: 2007 Alabama 3,605,490 1.52 % $1,316 $434 $1,380 $452 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 4,637,471 1.95 1,693 558 1,774 581 Arkansas 2,149,312 0.90 785 259 822 269 California 30,203,842 12.71 11,027 3,635 11,557 3,783 Colorado 3,756,215 1.58 1,371 452 1,437 470 Connecticut 2,786,594 1.17 1,017 335 1,066 349 Delaware 724,342 0.30 264 87 277 91 District of Columbia 965,816 0.41 353 116 370 121 Florida 15,255,433 6.42 5,570 1,836 5,837 1,911 Georgia 7,598,387 3.20 2,774 914 2,907 952 Guam NA NA NA NA NA NA Hawaii 1,066,608 0.45 389 128 408 134 Idaho 1,018,617 0.43 372 123 390 128 Illinois 9,949,126 4.19 3,632 1,197 3,807 1,246 Indiana 4,448,186 1.87 1,624 535 1,702 557 Iowa 2,058,022 0.87 751 248 787 258 Kansas 2,133,399 0.90 779 257 816 267 Kentucky 3,101,267 1.30 1,132 373 1,187 388 Louisiana 3,611,553 1.52 1,319 435 1,382 452 Maine 882,039 0.37 322 106 337 110 Maryland 4,818,275 2.03 1,759 580 1,844 603 Massachusetts 5,289,432 2.23 1,931 637 2,024 663 Michigan 7,333,242 3.09 2,677 883 2,806 918 Minnesota 3,833,826 1.61 1,400 461 1,467 480 Mississippi 2,069,897 0.87 756 249 792 259 Missouri 4,480,384 1.88 1,636 539 1,714 561 Montana 650,381 0.27 237 78 249 81 Nebraska 1,325,131 0.56 484 159 507 166 Nevada 2,092,872 0.88 764 252 801 262 New Hampshire 973,105 0.41 355 117 372 122 New Jersey 7,419,289 3.12 2,709 893 2,839 929 New Mexico 1,415,726 0.60 517 170 542 177 New York 15,901,378 6.69 5,805 1,914 6,084 1,992 North Carolina 6,961,656 2.93 2,542 838 2,664 872 North Dakota 492,101 0.21 180 59 188 62 N. Mariana Islands NA NA NA NA NA NA Ohio 8,722,523 3.67 3,184 1,050 3,337 1,092 Oklahoma 2,571,878 1.08 939 310 984 322 Oregon 2,781,196 1.17 1,015 335 1,064 348 Pennsylvania 9,200,793 3.87 3,359 1,107 3,520 1,152 Puerto Rico 2,322,737 0.98 848 280 889 291 Rhode Island 828,969 0.35 303 100 317 104 South Carolina 3,339,733 1.41 1,219 402 1,278 418 South Dakota 569,513 0.24 208 69 218 71 Tennessee 4,970,756 2.09 1,815 598 1,902 623 Texas 18,792,225 7.91 6,861 2,262 7,190 2,354 Utah 1,874,345 0.79 684 226 717 235 Vermont 374,984 0.16 137 45 143 47 Virginia 6,148,261 2.59 2,245 740 2,352 770 Virgin Islands NA NA NA NA NA NA Washington 5,034,885 2.12 1,838 606 1,926 631 West Virginia 1,095,038 0.46 400 132 419 137 Wisconsin 3,641,432 1.53 1,329 438 1,393 456 Wyoming 410,464 0.17 150 49 157 51 Total 2/ 238,315,850 100.00 % $87,093 $28,756 $91,277 $29,928 NA - Not Applicable. * Data withheld to maintain firms confidentiality. 1/ Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition (July 2009). 2/ Totals in the last four columns include revenues for locations not estimated. Jun 07 1/ Revenues Total Revenues Revenues Interstate End-User Intrastate End-UserSubscribers Allocation Percentage Wireless Intrastate Total Interstate Revenues (Dollars in Millions) 1 - 51 Table 1.21 Information for Allocating Subscriber Line Charges' (SLCs) Revenues: 2007 Allocation Residential Percentage SLC 2/ Alabama 1,273,704 65,326 421,927 $6.50 $6.79 $7.30 $142 1.69 % $174 Alaska NA NA NA NA NA NA NA NA NA American Samoa NA NA NA NA NA NA NA NA NA Arizona 1,150,831 118,250 710,015 6.33 6.36 6.58 152 1.82 187 Arkansas 642,506 29,688 330,599 5.66 5.25 6.55 72 0.86 88 California 6,436,472 1,893,011 5,968,804 4.93 5.02 5.23 869 10.40 1,068 Colorado 1,218,188 150,924 652,878 6.50 7.00 7.56 167 2.00 205 Connecticut 880,736 171,979 508,518 5.79 5.78 6.24 111 1.33 137 Delaware 237,950 21,995 126,129 6.44 6.43 6.43 30 0.36 37 Dist. of Columbia 154,772 22,791 442,035 3.85 3.85 3.85 29 0.34 35 Florida 5,009,421 499,865 2,205,385 6.50 6.75 7.39 627 7.50 770 Georgia 2,094,235 207,159 1,085,771 6.50 6.76 7.23 274 3.28 337 Guam NA NA NA NA NA NA NA NA NA Hawaii 314,388 31,904 192,982 6.50 7.00 8.14 46 0.55 57 Idaho 366,167 26,477 188,239 6.37 6.50 7.15 46 0.55 57 Illinois 3,002,161 322,834 1,949,267 4.81 4.81 5.20 313 3.75 385 Indiana 1,683,862 95,441 759,743 5.90 6.02 6.97 190 2.27 233 Iowa 734,841 34,057 346,190 5.40 5.18 6.35 76 0.91 93 Kansas 532,413 29,297 321,080 5.47 5.43 5.96 60 0.72 74 Kentucky 938,701 88,600 426,512 6.38 6.67 7.51 117 1.40 144 Louisiana 1,045,264 87,413 505,916 6.50 6.76 6.96 131 1.57 161 Maine 356,712 18,836 123,493 6.41 6.39 6.90 39 0.47 48 Maryland 1,495,407 164,409 997,079 5.67 5.67 5.68 181 2.16 222 Massachusetts 1,468,797 140,626 885,754 6.40 6.39 6.39 191 2.29 235 Michigan 2,097,872 130,195 1,257,687 5.56 5.60 5.99 239 2.86 294 Minnesota 1,249,388 74,549 549,535 5.40 5.26 6.26 127 1.52 156 Mississippi 667,455 33,426 284,413 6.50 6.76 6.94 78 0.94 96 Missouri 1,625,835 114,061 691,665 5.59 5.52 6.11 167 2.00 206 Montana 247,340 10,675 126,072 6.50 7.00 9.20 34 0.41 42 Nebraska 299,843 35,672 235,378 5.26 5.15 6.12 38 0.46 47 Nevada 603,568 83,377 336,575 4.48 4.45 5.26 58 0.70 71 New Hampshire 361,260 28,743 127,107 6.40 6.39 6.60 40 0.48 49 New Jersey 1,967,993 403,276 1,380,730 6.24 6.24 6.35 283 3.38 348 New Mexico 540,055 48,440 256,384 6.50 7.00 9.20 74 0.89 92 New York 3,722,719 436,197 2,140,635 6.33 6.35 6.69 488 5.84 600 North Carolina 2,324,982 175,286 1,011,370 6.26 6.40 7.19 275 3.29 338 North Dakota 115,236 2,814 69,866 6.50 7.00 8.52 16 0.20 20 N. Mariana Islands NA NA NA NA NA NA NA NA NA Ohio 2,763,624 175,668 1,276,025 5.66 5.68 6.23 295 3.53 362 Oklahoma 782,989 60,228 394,585 5.49 5.36 6.01 84 1.00 103 Oregon 870,517 65,895 342,050 6.50 6.87 7.75 105 1.26 129 Pennsylvania 3,541,398 323,320 1,395,758 5.99 5.97 6.64 389 4.65 478 Puerto Rico 609,130 0 180,370 6.25 0.00 9.20 66 0.78 81 Rhode Island 169,971 12,682 87,885 6.40 6.39 6.39 21 0.25 26 South Carolina 1,094,256 50,957 440,569 6.46 6.72 7.52 129 1.54 158 South Dakota 113,849 4,086 99,585 6.46 6.43 7.60 18 0.22 22 Tennessee 1,592,877 93,740 592,873 6.38 6.61 7.29 181 2.17 223 Texas 4,794,610 565,052 2,697,160 5.55 5.61 6.21 559 6.68 686 Utah 497,009 44,318 266,065 6.32 6.32 6.56 62 0.74 76 Vermont 206,660 12,680 82,462 6.41 6.39 6.83 24 0.28 29 Virginia 1,899,654 159,626 1,127,202 6.18 6.23 6.73 244 2.92 299 Virgin Islands NA NA NA NA NA NA NA NA NA Washington 1,442,646 140,557 692,108 6.07 6.17 6.97 173 2.07 213 West Virginia 573,186 15,388 138,768 6.50 7.00 8.46 60 0.72 74 Wisconsin 1,284,594 65,551 699,893 5.65 5.42 6.53 146 1.75 180 Wyoming 115,099 5,716 90,831 6.50 7.00 9.20 19 0.23 24 Total 3/ 68,666,585 7,593,057 38,219,924 $5.95 $5.81 $6.38 $8,358 100.00 % $10,323 Note: Figures may not add due to rounding. NA - Not Applicable. 1/ Excludes additional lines for residential customers of price-cap carriers. 2/ SLC for single line business is the same as for residential lines. 3/ Totals in the last column include revenues for locations not estimated. AveragePrimary Residential Lines & Single Line Business 1/ Additional Residential Average Interstate (Millions) AllocationBusiness Revenues for SLCs (Millions) Average Additional Line SLC Multiline SLCLines Business Multilines 1 - 52 Table 1.22 Gross Access SLCs Revenues Allocation Interstate Interstate Revenues for for Percentage End-User Total Allocation Allocation Revenues Revenues Alabama $438 $174 $264 1.17 % $41 $240 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 665 187 478 2.12 75 436 Arkansas 318 88 230 1.02 36 210 California 3,753 1,068 2,685 11.92 423 2,450 Colorado 737 205 532 2.36 84 485 Connecticut 458 137 321 1.43 51 293 Delaware 130 37 93 0.41 15 85 District of Columbia 195 35 160 0.71 25 146 Florida 1,931 770 1,161 5.15 183 1,059 Georgia 1,034 337 697 3.09 110 636 Guam NA NA NA NA NA NA Hawaii 152 57 95 0.42 15 87 Idaho 202 57 146 0.65 23 133 Illinois 1,133 385 748 3.32 118 682 Indiana 626 233 393 1.74 62 359 Iowa 334 93 240 1.07 38 219 Kansas 298 74 224 0.99 35 205 Kentucky 374 144 229 1.02 36 209 Louisiana 363 161 202 0.90 32 184 Maine 161 48 113 0.50 18 103 Maryland 772 222 550 2.44 87 502 Massachusetts 819 235 583 2.59 92 532 Michigan 860 294 566 2.51 89 516 Minnesota 592 156 436 1.94 69 398 Mississippi 249 96 152 0.68 24 139 Missouri 657 206 451 2.00 71 411 Montana 125 42 83 0.37 13 76 Nebraska 196 47 149 0.66 24 136 Nevada 240 71 169 0.75 27 154 New Hampshire 168 49 119 0.53 19 108 New Jersey 1,224 348 877 3.89 138 800 New Mexico 289 92 197 0.87 31 180 New York 2,161 600 1,561 6.93 246 1,424 North Carolina 833 338 495 2.20 78 451 North Dakota 86 20 66 0.29 10 60 N. Mariana Islands NA NA NA NA NA NA Ohio 1,087 362 725 3.22 114 661 Oklahoma 387 103 284 1.26 45 259 Oregon 446 129 316 1.40 50 289 Pennsylvania 1,514 478 1,037 4.60 163 946 Puerto Rico 223 81 142 0.63 22 130 Rhode Island 89 26 63 0.28 10 58 South Carolina 400 158 242 1.07 38 221 South Dakota 82 22 60 0.27 9 54 Tennessee 518 223 295 1.31 47 270 Texas 2,470 686 1,784 7.92 281 1,627 Utah 303 76 226 1.00 36 207 Vermont 87 29 58 0.26 9 53 Virginia 1,064 299 765 3.39 120 698 Virgin Islands NA NA NA NA NA NA Washington 714 213 501 2.23 79 457 West Virginia 210 74 136 0.61 21 125 Wisconsin 541 180 362 1.61 57 330 Wyoming 92 24 68 0.30 11 62 Total 1/ $32,802 $10,271 $22,532 100.00 % $3,565 $20,664 NA - Not Applicable. Note: Includes switched and special access revenues and private line revenues. Figures may not add due to rounding. 1/ Totals in the last two columns include revenues for locations not estimated. Information for Allocating Interstate Access Revenues: 2007 (Dollars in Millions) 1 - 53 Table 1.23 Allocation Intrastate Intrastate Percentage End-User Total Revenues Revenues Alabama $67 1.24 % $0 $63 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 75 1.38 0 71 Arkansas 54 1.00 0 51 California 906 16.75 0 857 Colorado 76 1.41 0 72 Connecticut 20 0.38 0 19 Delaware 5 0.09 0 4 District of Columbia 3 0.05 0 3 Florida 301 5.57 0 285 Georgia 100 1.85 0 95 Guam NA NA NA NA Hawaii 29 0.53 0 27 Idaho 26 0.48 0 25 Illinois 178 3.29 0 168 Indiana 107 1.98 0 101 Iowa 102 1.89 0 97 Kansas 16 0.30 0 15 Kentucky 91 1.68 0 86 Louisiana 54 1.00 0 51 Maine 12 0.21 0 11 Maryland 61 1.12 0 57 Massachusetts 33 0.62 0 32 Michigan 209 3.87 0 198 Minnesota 74 1.36 0 70 Mississippi 25 0.46 0 23 Missouri 230 4.26 0 218 Montana 30 0.55 0 28 Nebraska 54 0.99 0 51 Nevada 19 0.35 0 18 New Hampshire 18 0.33 0 17 New Jersey 152 2.81 0 144 New Mexico 52 0.96 0 49 New York 334 6.18 0 316 North Carolina 150 2.77 0 142 North Dakota 19 0.34 0 18 Northern Mariana Islands NA NA NA NA Ohio 264 4.88 0 250 Oklahoma 38 0.70 0 36 Oregon 68 1.27 0 65 Pennsylvania 280 5.18 0 265 Puerto Rico 13 0.24 0 12 Rhode Island 3 0.06 0 3 South Carolina 84 1.55 0 79 South Dakota 26 0.49 0 25 Tennessee 40 0.75 0 38 Texas 476 8.81 0 451 Utah 40 0.74 0 38 Vermont 5 0.10 0 5 Virginia 125 2.31 0 118 Virgin Islands NA NA NA NA Washington 117 2.16 0 111 West Virginia 32 0.59 0 30 Wisconsin 105 1.95 0 100 Wyoming 9 0.17 0 9 Total 1/ $5,407 100.00 $0 $5,136 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Totals in the last two columns include revenues for locations not estimated. Information for Allocating Intrastate Access Revenues: 2007 Revenues for (Dollars in Millions) Allocation 1 - 54 Table 1.24 Information for Allocating LECs' Intrastate Toll: 2007 (Dollars in Millions) Reported Revenues Intrastate by Revenues 2/ Large ILECs 1/ Alabama $31 $34 Alaska NA NA American Samoa NA NA Arizona 4 4 Arkansas 43 65 California 394 401 Colorado 4 4 Connecticut 131 133 Delaware 12 12 District of Columbia 0 0 Florida 130 132 Georgia 41 47 Guam NA NA Hawaii 5 5 Idaho 4 4 Illinois 250 263 Indiana 57 60 Iowa 3 4 Kansas 11 13 Kentucky 16 17 Louisiana 24 26 Maine 39 48 Maryland 86 86 Massachusetts 134 134 Michigan 167 174 Minnesota 2 3 Mississippi 16 17 Missouri 14 16 Montana 1 1 Nebraska 3 4 Nevada 3 3 New Hampshire 31 33 New Jersey 236 236 New Mexico 3 3 New York 140 146 North Carolina 39 44 North Dakota 0 1 Northern Mariana Islands NA NA Ohio 89 94 Oklahoma 24 30 Oregon 7 7 Pennsylvania 218 229 Puerto Rico 49 49 Rhode Island 11 11 South Carolina 25 34 South Dakota 1 1 Tennessee 32 38 Texas 173 188 Utah 3 3 Vermont 17 20 Virginia 92 94 Virgin Islands NA NA Washington 24 24 West Virginia 18 22 Wisconsin 58 80 Wyoming 1 1 Total 3/ $2,914 $3,109 NA - Not Applicable. 1/ Includes only carriers that file ARMIS Report 43-01. 2/ We assume that there is no carrier's carrier LEC toll. End-user LEC toll equals total LEC toll 3/ Totals in the last column include revenues for locations not estimated. Note: LEC is an abbreviation for local exchange carrier. Figures may not add due to rounding. 1 - 55 Table 1.25 Information for Allocating Non-LECs' Intrastate Toll: 2007 (Dollars in Millions) Access Minutes 1/ State Access Allocation End-User Total for Revenues Percentage 2/ Revenues Revenues Allocation Alabama 2,920,032 1.75 % 1.24 % 1.62 % $148 $194 Alaska NA NA NA NA NA NA American Samoa NA NA NA NA NA NA Arizona 1,569,447 0.94 1.38 1.05 96 126 Arkansas 1,056,892 0.63 1.00 0.73 66 87 California 23,888,487 14.29 16.75 14.91 1,358 1,789 Colorado 1,826,354 1.09 1.41 1.17 107 141 Connecticut 31,496 0.02 0.38 0.11 10 13 Delaware 176,752 0.11 0.09 0.10 9 12 District of Columbia 0 0.00 0.05 0.01 1 2 Florida 9,881,585 5.91 5.57 5.83 531 699 Georgia 3,637,239 2.18 1.85 2.09 191 251 Guam NA NA NA NA NA NA Hawaii 170,102 0.10 0.53 0.21 19 25 Idaho 428,696 0.26 0.48 0.31 29 38 Illinois 3,952,838 2.37 3.29 2.60 237 312 Indiana 2,801,213 1.68 1.98 1.75 160 210 Iowa 1,720,998 1.03 1.89 1.24 113 149 Kansas 1,016,699 0.61 0.30 0.53 48 64 Kentucky 2,326,363 1.39 1.68 1.46 133 176 Louisiana 3,266,300 1.95 1.00 1.72 156 206 Maine 1,918,669 1.15 0.21 0.91 83 110 Maryland 3,101,838 1.86 1.12 1.67 152 201 Massachusetts 6,708,201 4.01 0.62 3.16 288 380 Michigan 4,159,602 2.49 3.87 2.84 258 340 Minnesota 2,127,553 1.27 1.36 1.30 118 155 Mississippi 2,309,084 1.38 0.46 1.15 105 138 Missouri 3,043,174 1.82 4.26 2.43 221 292 Montana 451,444 0.27 0.55 0.34 31 41 Nebraska 821,784 0.49 0.99 0.62 56 74 Nevada 439,404 0.26 0.35 0.29 26 34 New Hampshire 1,438,205 0.86 0.33 0.73 66 87 New Jersey 4,938,541 2.95 2.81 2.92 266 350 New Mexico 740,347 0.44 0.96 0.57 52 69 New York 23,750,352 14.21 6.18 12.20 1,112 1,465 North Carolina 4,090,857 2.45 2.77 2.53 230 303 North Dakota 345,047 0.21 0.34 0.24 22 29 N. Mariana Islands NA NA NA NA NA NA Ohio 5,811,185 3.48 4.88 3.83 349 459 Oklahoma 1,181,452 0.71 0.70 0.70 64 85 Oregon 1,317,944 0.79 1.27 0.91 83 109 Pennsylvania 6,604,937 3.95 5.18 4.26 388 511 Puerto Rico 0 0.00 0.24 0.06 5 7 Rhode Island 855,074 0.51 0.06 0.40 36 48 South Carolina 2,096,742 1.25 1.55 1.33 121 159 South Dakota 245,752 0.15 0.49 0.23 21 28 Tennessee 2,668,101 1.60 0.75 1.38 126 166 Texas 12,667,912 7.58 8.81 7.89 718 946 Utah 944,664 0.57 0.74 0.61 56 73 Vermont 632,509 0.38 0.10 0.31 28 37 Virginia 4,531,805 2.71 2.31 2.61 238 313 Virgin Islands NA NA NA NA NA NA Washington 2,970,163 1.78 2.16 1.87 171 225 West Virginia 1,067,865 0.64 0.59 0.63 57 75 Wisconsin 2,209,814 1.32 1.95 1.48 135 177 Wyoming 264,574 0.16 0.17 0.16 15 19 Total 3/ 167,126,090 100.00 % 100.00 % 100.00 % $9,142 $12,045 NA - Not Applicable. Note: LEC is an abbreviation for local exchange carrier. Figures may not add due to rounding. 1/ Access minutes are in thousands and include both originating and terminating minutes. 2/ Allocation percentage is a function of both access minutes and access revenues. 3/ Totals in the last two columns include revenues for locations not estimated. % of Nation Access Minutes % of Nation 1 - 56 Table 1.26 Information for Allocating Interstate Toll: 2007 Access Minutes Allocation for Percentage Allocation 1/ Alabama 5,698,953 1.64 % $536 $727 Alaska NA NA NA NA American Samoa NA NA NA NA Arizona 6,573,247 1.89 618 839 Arkansas 3,433,745 0.99 323 438 California 35,521,754 10.24 3,342 4,531 Colorado 6,695,486 1.93 630 854 Connecticut 5,453,119 1.57 513 696 Delaware 1,486,993 0.43 140 190 District of Columbia 1,857,457 0.54 175 237 Florida 24,812,200 7.15 2,335 3,165 Georgia 11,756,601 3.39 1,106 1,500 Guam NA NA NA NA Hawaii 1,593,603 0.46 150 203 Idaho 2,050,283 0.59 193 262 Illinois 14,860,540 4.28 1,398 1,896 Indiana 6,967,684 2.01 656 889 Iowa 4,199,971 1.21 395 536 Kansas 3,263,666 0.94 307 416 Kentucky 4,555,589 1.31 429 581 Louisiana 4,653,616 1.34 438 594 Maine 1,573,341 0.45 148 201 Maryland 8,615,389 2.48 811 1,099 Massachusetts 7,355,719 2.12 692 938 Michigan 8,854,882 2.55 833 1,130 Minnesota 5,038,697 1.45 474 643 Mississippi 3,499,905 1.01 329 446 Missouri 7,292,845 2.10 686 930 Montana 1,361,590 0.39 128 174 Nebraska 1,928,691 0.56 181 246 Nevada 4,129,933 1.19 389 527 New Hampshire 1,915,990 0.55 180 244 New Jersey 12,478,450 3.60 1,174 1,592 New Mexico 2,571,266 0.74 242 328 New York 19,368,632 5.58 1,822 2,471 North Carolina 10,907,055 3.14 1,026 1,391 North Dakota 727,609 0.21 68 93 N. Mariana Islands NA NA NA NA Ohio 11,632,217 3.35 1,094 1,484 Oklahoma 3,579,114 1.03 337 457 Oregon 4,276,623 1.23 402 546 Pennsylvania 13,895,789 4.00 1,307 1,773 Puerto Rico 3,418,960 0.99 322 436 Rhode Island 896,013 0.26 84 114 South Carolina 5,603,484 1.61 527 715 South Dakota 1,119,475 0.32 105 143 Tennessee 7,075,468 2.04 666 903 Texas 21,984,979 6.33 2,069 2,804 Utah 2,548,167 0.73 240 325 Vermont 1,167,451 0.34 110 149 Virginia 10,456,390 3.01 984 1,334 Virgin Islands NA NA NA NA Washington 6,905,393 1.99 650 881 West Virginia 2,903,025 0.84 273 370 Wisconsin 5,661,716 1.63 533 722 Wyoming 874,789 0.25 82 112 Total 2/ 347,053,555 100.00 % $32,826 $44,505 NA - Not Applicable. Note: Figures may not add due to rounding. 1/ Access minutes are in thousands and include both originating and terminating minutes. 2/ Totals in the last two columns include revenues for locations not estimated. End-User Revenues (Dollars in Millions) Total Revenues 1 - 57