TELECOMMUNICATIONS INDUSTRY REVENUES 2008 Jim Lande Kenneth Lynch Industry Analysis & Technology Division Wireline Competition Bureau September 2010 This report is available for reference in the FCC's Reference Information Center, Courtyard Level, 445 12th Street S.W., Washington, D.C. 20554. Copies may be purchased by calling Best Copy and Printing Inc., (BCPI), 445 12th Street S.W., Room CY-B402, Washington, D.C. 20554, telephone 800-378-3160, facsimile 202-488-5563, or via e-mail at fcc@bcpiweb.com. The report can also be downloaded from the Wireline Competition Bureau’s Statistical Reports Internet site www.fcc.gov/wcb/stats. Telecommunications Industry Revenues This report provides an overview of U.S. telecommunications industry revenues and contributions to the universal service support mechanisms over the past decade. The last report was released September 3, 2009. 1 Most of the data for 2008 are taken from April 1, 2009 filings of annual Telecommunications Reporting Worksheets (FCC Form 499-A). Revenue data collected on these worksheets are utilized in the Commission’s administration of the universal service fund (USF), Telecommunications Relay Service (TRS), North American Numbering Plan (NANP) and local number portability (LNP) programs. FCC Form 499-A data also are used to calculate common carrier regulatory fees. Preliminary 2009 totals presented in Table 1, and 2009 and 2010 shares of universal service contributions by principal type of contributor presented in Table 12, are based on filings of quarterly Telecommunications Reporting Worksheets (FCC Form 499-Q). In 2008, the industry reported $297 billion in telecommunications service revenues, a small decrease from 2007’s $299 billion. Industry sector data include: ƒ Wireless industry revenues grew by 3% during 2008, from $121 billion to $124 billion. See Table 2. ƒ Filers reported $112 billion of local service revenues for 2008, about 1% less than the $113 billion reported for 2007. See Table 2. ƒ Revenues for incumbent local exchange carriers (LECs) for all services decreased to $90 billion in 2007, down 4% from $94 billion in 2007. See Table 3. These carriers reported $86 billion of fixed local service revenues in 2008. See Table 7. This is 5% lower than the fixed local service revenues shown in last year’s report. ƒ Non-incumbent LEC providers of local services, including competitive local exchange carriers (CLECs), interconnected VoIP providers, wireless carriers and toll carriers, reported $26 billion of fixed local service revenues in 2008. See Table 7. This is 11% higher than the fixed local service revenues shown for these filers in last year’s report. ƒ Total toll service revenues decreased during 2008 — from $65 billion to $61 billion. See Table 2. The data for 2008 generally were consistent with recent trends. ƒ Chart 1 illustrates that overall telecommunications revenues have been relatively constant since 2000. The chart shows how the wireless service share of the industry has grown rapidly while the toll service share of revenues has declined. 1 Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Industry Revenues: 2007 (rel. September 3, 2009). 2 ƒ Chart 2 illustrates how the share of universal service contributions by principal type of service provider has changed dramatically since 1997. Consistent with changes in revenues, the toll carrier share of contributions declined from 82% in 1997 to 31% today. USF, TRS, NANP and LNP rules prohibit the fund administrators from releasing company- specific information contained in FCC Form 499-A and FCC Form 499-Q worksheets. Revenue data for individual filers are not available to the public. Chart 1 End-User Telecommunications Revenues 3 Chart 2 Share of Universal Service Contributions By Principal Type of Contributor $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 B illion s of Dollar s Toll Service $89.2 $91.6 $93.3 $87.8 $79.3 $67.2 $59.0 $55.5 $52.4 $49.3 $48.7 $47.4 $39.3 Wireless Service $30.2 $33.7 $43.8 $56.9 $68.5 $76.5 $85.3 $94.4 $100.7 $110.1 $115.9 $118.9 $115.5 Local Service $69.1 $75.2 $78.6 $84.5 $87.7 $88.7 $86.5 $83.4 $82.4 $78.2 $75.0 $72.7 $70.1 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 P 1997 Other Incumbent LECs 2.6% CLECs 0.8% RBOC Toll Service Providers 1.7% Other Toll Service Providers 79.9% RBOCs 11.8% Wireless Service Providers 3.3% Preliminary Third Quarter 2010 Other Incumbent LECs 3.5% CLECs 10.2% Other Toll Service Providers 7.0% Other Wireless 14.6% RBOCs 13.6% RBOC Wireless Providers 27.2% RBOC Toll Service Providers 23.8% 4 FCC Form 499-A Filing Requirements Virtually all providers of telecommunications must file FCC Form 499-A each year. 2 Telecommunications Reporting Worksheets are not filed directly with the Commission but rather with the Universal Service Administrative Company (USAC), which serves as the data collection agent. While the annual worksheets were due April 1, 2009, some providers filed late or submitted revised filings after that date. Year 2008 data do not include information from filings received after December 7, 2009 or information from filings that were incomplete. FCC Form 499-A asks each filer to report total, interstate and international revenues in two broad categories: those billed to universal service contributors for resale (carrier's carrier revenues); and, those billed to de minimis telecommunications providers and end users (end-user revenues). 3 Filers must provide further breakdowns of local, wireless, and toll services. Fixed local services connect a specific point to one or more other points in the same geographic area. These services can be provided using either wireline, fixed wireless, or interconnected VoIP technologies and can be used for local exchange service, private communications, or access to toll services. Mobile services are wireless communications between mobile wireless equipment, such as cellular phones, and other points. Toll services are telecommunications services, wireline, wireless, or interconnected VoIP services, that enable customers to communicate outside of local exchange calling areas. Toll service revenues include intrastate, interstate, and international long distance services. 4 2 There are certain exceptions. Providers that offer telecommunications for a fee exclusively on a non-common carrier basis are not required to file if their total annual contribution to universal service would be less than $10,000. Government entities that purchase telecommunications services in bulk on their own behalf, public safety and local government entities licensed under Subpart B of Part 90 of the Commission’s rules, entities providing interstate telecommunications exclusively to government or public safety entities, broadcasters and various non-profit entities are not required to file. Finally, systems integrators that derive less than 5% of their systems integration revenues from the resale of telecommunications and entities that provide services only to themselves or to commonly owned affiliates need not file. 3 Telecommunications providers are considered de minimis and thus are not required to contribute to universal service (or file FCC Form 499-Q) if their annual contributions to universal service would be less than $10,000. For universal service contribution purposes, underlying service providers treat de minimis firms as end users. 4 Section III-C-4 of the Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A provide additional information on revenue categories. The form is available at http://www.fcc.gov/Forms/Form499-A/499a- 2010.pdf. 5 The form also asks each filer to choose the communications business that best describes its operations: 5 • Audio Bridging (teleconferencing) Provider • Competitive Access Provider (CAP) or Competitive Local Exchange Carrier (CLEC) • Cellular, Personal Communications Service (PCS) and Specialized Mobile Radio (SMR) Wireless Telephony Service Provider • Coaxial Cable Local Exchange Service Provider • Incumbent Local Exchange Carrier (incumbent LEC) • Interconnected Voice over Internet Protocol (interconnected VoIP) • Interexchange Carrier (IXC) • Local Reseller • Operator Service Provider (OSP) • Other Local Service Provider • Other Mobile Service Provider • Other Toll Service Provider • Paging and Messaging Service Provider • Payphone Provider • Private Service Provider • Prepaid Calling Card Provider • Satellite Service Provider • Shared-Tenant Service Provider • Specialized Mobile Radio - Dispatch • Toll Reseller • Wireless Data Service Provider Filers identified as Coaxial Cable Service Providers are included with CAPs and CLECs for the purpose of creating summary statistics. Filers identified as Wireless Data Service Providers are included with Other Mobile Service Providers. FCC Form 499-A filers are instructed to report amounts actually billed to customers. This means that filers should report revenues net of discounts, but without making adjustments to reflect uncollectible revenues or international settlement payments or receipts. 6 Most filers should be able to report revenues in this manner using information contained in their corporate 5 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 In the 2004 through 2006 FCC Form 499-As, filers could select the category All Distance Service Provider. For the purpose of creating rollup statistics, filers who selected this category were reclassified based on secondary service categories selected by the filer and revenue information. In 2009, teleconferencing providers were directed to identify themselves as Other Toll Service Providers. The Audio Bridging (teleconferencing) Provider category was added to the form in 2010. 6 Filers began to provide some information on uncollectible revenues starting with the February 1, 2003 FCC Form 499-Q filing. Beginning in the second quarter of 2003, contributions have been based on projected collected revenues, rather than billed revenues from a prior period. 6 books of account. Some service providers, however, have no business or regulatory requirements to record intrastate or international revenues separately from interstate revenues, or to use the detailed revenue categories contained in the worksheets. In addition, many wireless providers use the interim safe harbor percentages to estimate the interstate portion of their revenues. 7 A different safe harbor interstate percentage is available to Interconnected VoIP providers. 8 FCC Form 499-A filings sometimes contain mistakes. Initial examination of the data occasionally reveals carrier types, revenue amounts and/or revenues reported in service categories inconsistent with the known operations of the filer. Some corrections have been made based on supplemental filer information. Nonetheless, disaggregated data are likely to be less accurate than industry totals. 7 See the Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A section III.C.3. available at http://www.fcc.gov/Forms/Form499-A/499a-2010.pdf. 8 Ibid . 7 Summary Tables Table 1 shows the major components of telecommunications revenues for 1999 through 2009. This table was created by aggregating the revenues in the major service classifications designated on FCC Form 499-A. FCC Form 499-Q data were used to provide preliminary figures for 2009. Tables 2 and 3 provide a more detailed look at annual industry revenues over time. Generally, FCC Form 499-A revenue data can be tabulated in two distinct ways: by type of service provided and by type of business. Table 2 categorizes revenues by type of service and shows, for example, that carriers reported $124.5 billion in wireless service revenues for 2008. This total includes wireless service revenues from some carriers that are not identified as wireless carriers. In contrast, Table 3 shows that wireless service providers reported total revenues of $128.3 billion in 2008, including some revenues for fixed local and toll services. Data for 1992 through 1997 are contained in the spreadsheet version of the tables on the Commission’s website, but not in the PDF version. Revenue data for 1992 through 1996 were summarized from information filed on TRS worksheets. Revenue data for 1997 and 1998 were derived by combining TRS worksheet and universal service worksheet data. Starting with 1999, revenue data were summarized from FCC Form 499-A, which replaced both the TRS and universal service worksheets. Because of reporting changes, data for 1997 forward are not entirely consistent with data for prior years. For example, special access revenues were included with other access revenues prior to 1997 but have been included with local private line services since then. Similarly, through 1996, filers reported as other local and mobile revenues substantial amounts of customer premises equipment, billing and collection, and other types of revenues that are excluded from contributions to universal service. These revenues are now reported as non-telecommunications revenues. The non-telecommunications category includes Internet and other enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, cable TV program transmission, telecommunications provided in foreign countries and other revenues not properly classified as U.S. telecommunications or interconnected VoIP. There are some inconsistencies as a result of changes in universal service worksheets. For example, filers were required in 1997 to include inside wiring maintenance revenues as part of local exchange revenues. In 1998, filers were instructed to report these revenues as non- telecommunications service revenues. Note also that each year, many filers erroneously report substantial amounts of switched toll revenues as other long distance revenues. The data are examined and some revenues are reclassified based on staff research. Even so, the other long distance category of Table 2 probably continues to contain some switched toll revenues, perhaps significant amounts in some years. Changes in reporting procedures may have caused some of the large increase in non- telecommunications revenues that occurred in 2002. Prior to 2002, each legal entity providing telecommunications was required to file separately. Starting in 2002, entities meeting specific 8 conditions were allowed to file on a consolidated basis. For some companies, the books at the consolidated-entity level include substantial amounts of non-telecommunications revenues for legal entities that do not individually provide telecommunications and therefore would not be required to file on an individual basis. Their revenues, however, must be included when filings are made on a consolidated basis because the revenues are recorded on the consolidated books. In 2005, the reporting requirements changed for wireline broadband Internet access transmission provided on a non-common carrier basis. Revenues for these services were classified as U.S. telecommunications revenues on Line 406 through November 16, 2005. 9 From November 16, 2005 through August 13, 2006, such revenues were included on Line 406 at the level that the carrier was generating as of November 16, 2005 (“Freeze Level”). Revenues above the Freeze Level for that period were reported as non-U.S. telecommunications on Line 418 of the FCC Form 499-A and Line 117 of the FCC Form 499-Q. After August 13, 2006, revenues for all wireline broadband Internet access transmission provided on a non-common carrier basis are reported on Line 418 with other non-U.S. telecommunications revenues. Prior to the fourth quarter of 2006, a few CLECs included revenues from interconnected VoIP services as part of telecommunications revenue. Other interconnected VoIP service revenues were included on Line 418 – non-telecommunications revenues – but only by entities that were required to file for other reasons. Starting with the fourth quarter of 2006, all revenues from providing interconnected VoIP service must be included as telecommunications revenues in FCC Form 499 filings. 10 Prior to the fourth quarter of 2008, a few teleconferencing service providers reported audio bridging service revenues as telecommunications. Starting with the fourth quarter of 2008, all audio bridging service revenues must be reported as telecommunications. 11 Table 8 shows that audio bridging service providers reported $273 million of telecommunications revenue in 2008. Preliminary figures suggest that they will report close to a half billion in telecommunications revenue in 2009 Table 4 illustrates how data from the FCC Form 499-A are used to develop funding bases for USF, NANP, LNP and TRS contribution mechanisms. Each of the four programs is supported by a slightly different group of telecommunications providers under slightly different rules. As noted above, providers are considered de minimis for USF purposes if their annual contribution is expected to be less than $10,000. While such providers are thus not required to file FCC Form 499-Q, de minimis status does not exempt service providers from filing FCC Form 499-A because contributions to TRS, NANP and LNP are required regardless of the expected annual amount. Note also that NANP, LNP, and TRS each draw contributions from a larger pool of providers than does USF. Specifically, all telecommunications carriers in the 9 Wireline Broadband Internet Access Services Order, 20 FCC Rcd at 13916, para. 113. 10 See 2006 Contribution Methodology Reform Order, 21 FCC Rcd at 7536-49, paras. 34-62. 11 See Request for Review by InterCall, Inc. of Decision of the Universal Service Administrator, CC Docket No. 96- 45, Order, 23 FCC Rcd 10731(2008). 9 United States must contribute to meet the costs of NANP (47 C.F.R. § 52.17), and all telecommunications carriers that provide service in areas covered by the regional LNP database must contribute to meet the costs of LNP (47 C.F.R. § 52.32). Thus, only those providers that are not carriers are not required to contribute. Cost recovery for TRS is slightly different. Every carrier providing interstate service must contribute to the TRS Fund (47 C.F.R. §64.604 (c)(5)(iii)(A)). In this case, providers that are not carriers, and carriers that do not provide interstate services are not required to contribute. 12 Tables 5 through 8 present detailed industry roll-ups by type of revenue and type of filer. Table 5 provides a detailed breakout of revenues for each of the FCC Form 499-A revenue categories used to report services provided to other filers for resale. Table 6 displays similar detail for each of the revenue categories used to report telecommunications service provided to end users. In a few cases, filers now provide some breakout detail that is not published. Specifically, amounts shown in Table 5 for Line 305 include revenues reported on Line 305.1 (for resale as telecommunications) and Line 305.2 (for resale as interconnected VoIP). Table 6 combines the amounts reported on Line 404.1 (traditional circuit switched local exchange service bundled with toll) and Line 404.3 (traditional circuit switched local exchange service provided without bundled toll). In 2008, 24% of circuit switched local exchange revenue was reported for service that was bundled with toll. Note that the toll portion of the bundles, reported on Line 404.2, was consolidated with Line 414 (other long distance) and is not included with Line 404 or in the 24% figure. Table 6 also combines amounts reported on Line 404.4 (interconnected VoIP offered in conjunction with a broadband connection) and Line 404.5 (interconnected VoIP offered independent of a broadband connection). In 2008, 52% of interconnected VoIP revenue was provided in conjunction with a broadband connection. As explained above, the totals shown for Line 414 include amounts reported on Line 404.2. This line also includes amounts reported on Line 414.1 (ordinary long distance other than service provided as part of an interconnected VoIP service) and on Line 414.2 (ordinary long distance provided as part of an interconnected VoIP service). In 2008, 5% of the total revenues summarized on Line 414 were for ordinary long distance provided in conjunction with interconnected VoIP service. Table 7 combines data from Tables 5 and 6 with data on non-telecommunications revenues to develop total industry revenues. Table 8 provides more aggregated revenue information by type of filers. The revenue categories presented in Tables 5 through 7 are explained in the FCC Form 499-A filing instructions. Table 9 presents an estimate of average revenue per conversation minute. Based on the methodology in Table 9, Commission staff estimated that end users were billed an average of 8 cents for each minute of interstate and international toll calling made during 2008. The average price for each interstate domestic conversation minute was estimated to be 7 cents during 2008. 12 See Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A, Figure 3 at 35, available at http://www.fcc.gov/Forms/Form499-A/499a-2010.pdf. Carriers that provide only international services are considered to be interstate carriers for TRS contribution purposes. 10 The average price for each international conversation minute was estimated to be 9 cents during 2008. The revenue per minute estimates presented in Table 9 and year-over-year changes in these estimates should be treated with caution for a number of reasons. For instance, terminating access minutes are used as a proxy for billed conversation minutes. In certain cases, the two measures track each other closely. Subscriber toll-free calls that terminate on dedicated access lines and some other classes of calls generate access minutes that are billed as terminating minutes only. Some calls, however, generate originating access minutes only or bypass incumbent LEC switched facilities on both ends and therefore generate no access minutes. Some subscriber toll-free calls, on the other hand, do not terminate on dedicated access lines and therefore may generate two terminating access minutes per conversation minute. Additionally, since 1999, NECA filings report total access minutes without separating originating and terminating minutes. For 2000 through 2006, the totals were allocated based on carrier common line (CCL) minutes reported in access tariff filings by incumbent LECs that are subject to price-cap regulation and in the NECA pool access tariff filings. This breakout is no longer available. The 2006 breakout has been used for subsequent years. Another data problem is that toll calls handled over voice over Internet protocol (VoIP) networks may terminate via local minutes rather than interstate access minutes. Also, some calls both originate and terminate on interconnected VoIP systems. On balance, the assumptions underlying the estimates probably result in an upward bias in the revenue per minute estimates. For recent years, the staff estimates that revenue per minute estimates may be overstated by as much as 20%. The methodology presented in Table 9 mitigates some problems associated with using terminating access minutes as a proxy for conversation minutes. For example, some conversation minutes do not result in incumbent LEC access minutes because they terminate on the facilities of CLECs. These carriers do not report access minutes. Table 9 presents estimates of these minutes based on CLEC shares of local service revenues. These amounts are used to adjust terminating access minutes. Moreover, the methodology presented in Table 9 adjusts terminating access minute totals to better reflect international traffic. International settlement minutes are reported based on the billing status of calls rather than where the calls actually originate. Thus, some U.S. billed calls actually originate in foreign points and vice versa. However, most U.S. billed calls originate in the United States and generate originating but not terminating access minutes. These minutes are added to the reported totals for terminating access minutes so that terminating access minutes better represent conversation minutes. Similarly, foreign billed minutes, which usually generate terminating access minutes, are removed from the terminating access minute total. One category of U.S. billed international calls merits special treatment. Country-direct and country-beyond calls are placed from foreign points, directly with U.S. carriers. Country- direct calls generally originate overseas and terminate in the United States. Such calls are billed by U.S. carriers, generate settlement payments to foreign carriers, and are reported in section 11 43.61 traffic data reports as U.S. billed calls. Country-beyond calls are similar, but both originate and terminate at foreign points. Country-direct calls result in terminating access minutes. Country-beyond calls generally do not. Unfortunately, section 43.61 data do not separate country-direct from country-beyond calls. This is not a problem for allocating originating access minutes between interstate and international calls, because neither type of call results in appreciable originating access minutes. In estimating interstate terminating access minutes, however, staff chose to subtract country-direct and country-beyond minutes. This means that the number of total interstate terminating minutes, which is used to represent interstate conversation minutes, is biased downward. Staff did not include country-direct or country-beyond minutes with international conversation minutes because country-beyond revenues are reported separately as international-to-international service revenues on FCC Form 499-A and are therefore subtracted when calculating international revenue per minute. Country- direct revenues, however, remain in the revenue base but the corresponding minutes have been removed from the estimate of international conversation minutes. This bias may be offset by the fact that many international-to-international calls generate U.S. billed settlement minutes and are counted as conversation minutes. An increasing share of switched traffic either originates or terminates on wireless telephones. Some wireless minutes and some wireless revenues are included in the revenue per minute calculations. Terminating access minutes include calls that originate on a wireless telephone and terminate on a wireline telephone, but do not include any calls that terminate on wireless telephones. Switched revenues include all long distance charges that are itemized on wireless customers’ bills but do not include any portion of revenues reported as wireless monthly service or airtime charges. Today, most interstate wireless calls are billed under “bucket of minutes” plans and have no explicit toll charges associated with them. Staff does not have sufficient data to assess whether inclusion of some wireless toll minutes and some wireless carrier revenues results in an upward or downward bias in the revenue per minute calculations. Many LECs also offer service bundles that provide toll calling without generating any separate per-minute toll charges. These carriers allocate a portion of monthly plan revenues as toll charges. Some LECs transfer this toll revenue to affiliated toll carrier books and in some cases those toll carriers report the revenues as switched long distance service revenue. Other carriers, however, report all of their monthly service revenues as local exchange service revenues. Starting with the 2007 FCC Form 499-A filing, such amounts are separately reported on Line 404.2. As explained above, toll revenues associated with bundled plans were reclassified as Line 414 (ordinary long distance) for the purpose of creating roll-up statistics. Thus, the revenue-per-minute estimates are based on both minute and revenue data that includes LEC bundled service offerings. In 2008, 13% of switched toll revenue was reported on Line 404.2. This figure understates the amount of toll provided as part of bundled service plans because in many cases, the toll revenue portion of the package is reported on affiliate toll provider Form 499 filings and some of those filers report all switched toll revenue on Line 414. End-user switched toll revenue data also are problematic for other reasons. Through 1996, the figures shown are based on TRS gross revenue data. In order to translate reported gross revenues to end-user revenues, 80% of revenues reported by toll resellers were netted from the total. 12 A second problem is that in some years, filers classified substantial amounts of switched service revenues as (non-switched) other toll Starting in 1998, many toll carriers used fixed monthly charges to recover account maintenance, incumbent LEC presubscribed interexchange carrier charges (PICCs), and both federal and state universal service contributions. Some toll carriers reported some of these surcharges as local service tariffed PICC charges. An attempt was made to identify these amounts and include them with switched toll revenues. Some filers bill customers percentage surcharges to recover universal service contributions. While filers must separately identify the universal service surcharges on their universal service worksheets, it is not possible to identify a precise amount that is attributable to interstate toll service. The Table 9 adjustments to reflect both PICC and universal service costs and end-user charges should be taken as approximate. Table 9 also shows a number of assumptions that were made in order to separate international revenue data from interstate revenue data. Filers did not separately report end-user revenues for international services for years before 1999. For 1999 and 2000, it appears that many FCC Form 499-A filings understate international revenues and overstate interstate revenues. This could happen if, for example, a filer split revenues between interstate and international service based on a ratio of interstate to international minutes, rather than on actual billings. This would not reduce contribution requirements for the filer but does make the breakout shown in Tables 5, 6, and 7 less reliable. For 2001, carriers reported $1.5 billion more international revenues in FCC Form 499-A filings than they did in section 43.61 filings. The section 43.61 international traffic data appears to be more reliable, but lacks breakouts of carrier’s carrier and end-user revenues. Based on staff analysis of the FCC Form 499-A data, a simple methodology is used to convert section 43.61 international traffic revenue data into estimates of international end-user revenues for message telephone service. The same methodology is used in all years. While the Commission does collect detailed international traffic data, there is no clean match between categories of minutes actually reported and the international service end-user revenue data presented in Table 9. The amounts of international-to-international revenues are estimated for 1996 and earlier. Also, an increasing amount of international traffic is being carried on resold private lines and via other new arrangements. It seems likely that much of this traffic is not being reported in section 43.61 traffic data reports. For these reasons, the breakout between interstate revenues per-minute and international revenues per-minute is likely to be significantly less accurate than the combined estimate. Table 10 presents an estimate of average revenue per conversation minute, net of access and universal service contribution costs. Revenues per minute net of access and universal service contribution costs have declined over the past 10 years. The table uses the data on minutes developed in Table 9 and therefore has the attendant uncertainties. The analysis also uses international settlement payment data which, while relatively good, include settlements associated with international-to-international traffic. The analysis does not account for special access payments from toll carriers to local exchange carriers. In some cases, toll carriers recover the cost of these services through charges that are reported as switched toll revenues and that therefore are reflected in per-minute revenue estimates. 13 FCC Form 499-A asks filers to identify the share of their carrier’s carrier and end-user telecommunications revenues attributable to different regions of the country. Table 11 shows total end-user telecommunications revenues by region for local, toll and wireless filers. Table 12 provides data about the relative magnitude of universal service contributions from different classes of telecommunications providers. AT&T and MCI were classified as RBOC toll affiliates starting with 2006. Since the second quarter of 2003, universal service contributions have been based on projected collected interstate and international end-user revenues rather than on actual billed revenues from a prior quarter. On the first day of the second month of each quarter, filers report preliminary data for billed revenues from the previous quarter, and project billed and collected universal service contribution base amounts for the upcoming quarter. For example, on November 1, 2009, filers reported data for the third quarter of 2009 and projected revenues for the first quarter of 2010. Far less detail is filed on the quarterly FCC Form 499-Q than on the annual FCC Form 499-A. Revenue detail for the historic quarter includes total, interstate and international U.S. telecommunications revenues, divided into carrier’s carrier and end-user categories. For the coming quarter, filers provide only billed and projected collected interstate and international end-user revenues. Roll-ups of the quarterly data are available on the Commission’s website at: http://www.fcc.gov/wcb/iatd/lec.html. Table 1 Overview of Telecommunications Industry Revenues 1/ (Dollar Amounts Shown in Millions) Preliminary 5/ 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Carrier's Carrier Revenues 2/ Local Service 3/ $33,156 $36,621 $40,108 $38,412 $37,742 $38,546 $39,213 $39,392 $38,383 $39,200 $41,868 Wireless Service 4,652 5,144 6,180 5,020 4,465 4,164 6,334 5,187 5,360 5,630 5,383 Toll Service 14,934 21,849 19,999 16,476 18,205 15,703 16,892 15,101 16,093 13,623 12,069 Intrastate 22,293 25,553 27,848 25,770 24,825 25,852 27,486 24,848 22,566 21,836 22,077 Interstate and International 4/ 30,449 38,060 38,439 34,138 35,587 32,561 34,953 34,831 37,270 36,617 37,244 Total $52,742 $63,613 $66,287 $59,907 $60,412 $58,413 $62,439 $59,679 $59,836 $58,452 $59,320 End User Revenues 2/ Local Service 3/ $78,608 $84,526 $87,704 $88,712 $86,474 $83,407 $82,382 $78,215 $75,042 $72,693 $70,142 Wireless Service 43,843 56,857 68,507 76,501 85,254 94,404 100,743 110,096 115,865 118,855 115,505 Toll Service 93,311 87,767 79,302 67,222 58,983 55,511 52,358 49,278 48,709 47,365 39,259 Intrastate 134,919 147,465 155,347 154,815 150,889 153,265 154,310 157,653 158,380 157,737 150,316 Interstate and International 4/ 80,844 81,685 80,165 77,619 79,822 80,057 81,173 79,937 81,235 81,176 74,590 Total $215,763 $229,149 $235,513 $232,434 $230,711 $233,322 $235,482 $237,589 $239,615 $238,913 $224,906 Total Revenues Local Service 3/ $111,764 $121,147 $127,812 $127,123 $124,216 $121,953 $121,595 $117,607 $113,425 $111,893 $112,010 Wireless Service 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 121,225 124,485 120,888 Toll Service 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 64,802 60,988 51,328 Intrastate 157,212 173,018 183,195 180,585 175,714 179,117 181,796 182,501 180,946 179,573 172,393 Interstate and International 4/ 111,293 119,745 118,605 111,756 115,409 112,617 116,125 114,768 118,505 117,793 111,833 Total $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,451 $297,365 $284,226 Note: Detail may not add to totals due to rounding. Data for 1997 and 1998 available in the Zip File version of this table or in prior versions of the report. 1/ Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements. 2/ Carrier's carrier revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale. This includes, for example, access services that local exchange carriers provide to toll carriers. Sales to de minimis resellers, end-user customers, governments, non-profits, and any other non-contributors are treated as end-user revenues. Filers contribute to the universal service funding mechanisms based on their end-user interstate revenues. See Table 4 for further details on contribution bases. 3/ Payphone revenues are included with local service revenues in this table. 4/ Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table through 2008, but are not included in the universal service contribution base. These revenues are not included in preliminary 2009 data. 5/ Preliminary 2009 data are based on FCC Form 499-Q quarterly filings through February 28, 2010. 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 2009 are based on type of filer rather than on data filed by service. Source: Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets, with data from 1997 FCC Form 431 TRS Worksheets used for service providers not required to file a Universal Service Worksheet. Starting in 1999, data summarized from FCC Form 499-A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. Table 2 Telecommunications Industry Revenues by Service (Dollar Amounts Shown in Millions) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Local Exchange $59,245 $64,940 $69,947 $72,346 $71,320 $70,606 $68,238 $66,506 $63,264 $62,790 $60,871 Pay Telephone 2,536 2,218 1,932 1,585 1,192 1,063 1,002 924 659 470 379 Local Private Line 10,403 12,914 16,864 21,966 23,070 22,415 23,840 25,673 25,448 24,307 26,314 Other Local 2,179 2,501 3,249 3,391 3,418 3,242 2,944 3,331 3,884 3,227 3,321 Subscriber Line Charges 11,052 10,826 11,563 12,127 12,758 12,136 11,715 11,113 10,827 10,141 9,283 Access 18,449 18,105 17,017 15,096 13,955 12,972 12,352 11,822 11,392 10,543 9,776 Universal Service Surcharges on Local Service Bills 1/ 103 260 575 1,301 1,410 1,783 1,862 2,227 2,133 1,947 1,948 Additional Revenues from TRS Worksheets 595 Total Local Service and Payphone 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,595 117,607 113,425 111,893 Wireless Service 36,240 48,117 61,505 74,006 80,678 88,023 96,450 104,489 112,442 117,939 120,934 Universal Service Surcharges on Wireless Service Bills 1/ 345 379 495 681 842 1,696 2,118 2,587 2,841 3,286 3,551 Additional Revenues from TRS Worksheets 189 Total Wireless Service 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 121,225 124,485 Operator 12,205 10,049 11,406 10,389 7,902 6,567 6,542 6,631 5,577 5,874 5,664 Non-Operator Switched Toll 74,168 78,389 75,183 65,325 54,475 50,178 46,387 44,876 41,570 42,518 38,959 Long Distance Private Line 11,952 13,169 16,189 16,402 15,108 15,316 13,906 13,264 12,739 12,080 11,683 Other Long Distance 3,386 3,656 3,372 3,259 2,445 2,222 1,801 2,021 2,154 1,661 2,071 Universal Service Surcharges on Toll Service Bills 1/ 1,810 2,983 3,467 3,927 3,767 2,905 2,577 2,458 2,340 2,669 2,611 Additional Revenues from TRS Worksheets 1,532 Total Toll Service 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 64,802 60,988 Total Telecommunications 246,392 268,505 292,762 301,799 292,341 291,122 291,735 297,921 297,269 299,451 297,366 Non-Telecommunications 27,944 33,144 42,261 48,036 60,406 65,186 71,493 86,764 101,061 131,615 151,494 Total Reported Revenues 272,019 301,648 335,023 349,835 352,747 356,308 363,227 384,685 398,329 431,066 448,860 Service Reported as: Intrastate 142,108 157,212 173,018 183,195 180,585 175,714 179,129 181,796 182,501 180,946 179,573 Interstate and International 104,284 111,293 119,745 118,605 111,756 115,409 112,605 116,125 114,768 118,505 117,793 Total Telecommunications $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,451 $297,365 Note: Detail may not add to totals due to rounding. Data for 1992 through 1997 are available in the Zip File version of this table and in prior year reports. 1/ Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless and toll revenues. In calculating the totals shown, reported amounts for each filer are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll intrastate, interstate and international end-user revenues for that filer. Source: Data for 1992 through 1996 summarized from FCC Form 431 TRS Worksheets. Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets, with data from 1997 TRS Worksheets used for service providers not required to file a Universal Service Worksheet. Starting in 1999, data summarized from FCC Form 499-A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. Table 3 Telecommunications and Interconnected VoIP Revenues Reported by Type of Carrier 1/ (Dollar Amounts Shown in Millions) Service Provider Category 2/ 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Incumbent Local Exchange Carriers 2/ $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 $105,496 $103,561 $99,997 $93,885 $89,732 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 3,348 5,652 9,814 12,998 13,043 15,509 15,112 16,930 17,276 17,476 20,980 Interconnected VoIP 514 2,394 3,541 Local Resellers 410 511 879 1,393 1,538 721 1,215 630 460 594 540 Other Local Exchange Carriers 36 171 11 329 406 338 245 216 124 181 288 Private Service Providers 147 87 39 15 281 267 532 770 1,080 1,031 1,051 Shared-Tenant Service Providers 93 87 202 46 42 22 22 22 19 14 39 Competitors of Incumbent LECs 4,034 6,508 10,945 14,781 15,309 16,857 17,126 18,568 19,473 21,690 26,440 Fixed Local Service Providers 112,268 118,725 127,103 132,666 130,300 126,337 122,622 122,128 119,470 115,575 116,172 Payphone Providers 1,101 1,213 972 836 641 523 445 481 435 388 275 Wireless Telephony Including Cellular, 33,139 46,513 59,823 71,887 78,568 88,168 98,329 107,834 116,971 123,968 127,730 Personal Communications Service (PCS) and SMR Telephony Carriers 3/ Paging & Messaging Service 3/ 3,161 3,232 3,102 2,197 1,473 1,007 872 579 555 607 426 Specialized Mobile Radio (SMR) 186 191 188 206 33 46 226 48 188 40 Dispatch Wireless Data Service Providers and Other Mobile Service Providers 3/ 731 221 164 324 220 135 218 169 178 180 119 Wireless Service Providers 37,032 50,152 63,280 74,596 80,467 89,342 99,465 108,809 117,752 124,943 128,314 Interexchange Carriers (IXCs) 83,443 87,570 87,311 81,272 68,146 61,246 51,589 46,856 44,083 43,701 37,358 Operator Service Providers (OSPs) 590 337 635 611 554 567 523 548 631 595 1,063 Prepaid Calling Card Providers 888 866 727 133 460 812 1,635 1,828 1,713 2,195 1,999 Satellite Service Providers 475 280 336 373 406 663 721 714 444 708 860 Toll Resellers 9,885 9,211 10,641 8,797 9,279 9,294 12,192 13,362 9,943 8,314 8,256 Audio Bridge Service Providers 42 58 273 Other Toll Carriers including VoIP 710 150 1,758 2,516 2,089 2,339 2,543 3,195 2,756 2,973 2,795 Toll Carriers Toll Service Providers 95,992 98,414 101,407 93,702 80,934 74,920 69,204 66,503 59,611 58,545 52,604 Total Telecommunications Revenues $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,451 $297,365 1/ Data for 1992 through 1997 are available in the ZIP file version of this table. 2/ Filers are asked to select for themselves a service provider category that best describes their operations. The choices have changed over the years. For example, most satellite service providers identified themselves as other toll carriers in their 1997 FCC Form 431 TRS worksheets because there was no separate category for satellite service providers. Similarly, paging carriers typically identified themselves as other mobile carriers. For 2003 through 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. 3/ Significant amounts of enhanced service, billing and collection, CPE and other non-telecommunications revenues were reported on TRS worksheets by incumbent local exchange carriers (Incumbent LECs) and wireless carriers through 1996. Universal Service Worksheet filers report these revenues in the non-telecommunications category. For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that Tier 1 incumbent LECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of amounts reported as mobile service revenues. These amounts have been removed from incumbent LEC totals. Source: Data compiled from FCC Form 431, FCC Form 457 and FCC Form 499-A filings. Table 4 Contribution Base Revenues By Program 1/: 2008 (Dollar Amounts Shown in Millions) 2008 Revenues subject to universal service contribution Billed interstate and international end-user revenues [ Line 412(e) + Line 420(d) + Line 420(e) ] $81,176 less revenues for international - to - international services [ Line 412(e) ] 862 less international revenues of international-only filers and international revenues that were excluded because of 4,368 the 12% rule 2/ less interstate and other international revenues for 2,553 filers who are de minimis or otherwise exempt from universal service support requirements 51 less uncollectible contribution base revenues [ Line 422(d) + Line 422(e) ] 1,131 (Does not include uncollectible amounts associated with revenues excluded above.) equals $74,764 Revenues subject to TRS contribution Interstate and international end-user revenues $81,176 less interstate and international revenues for 128 filers who identify themselves as private service providers or 901 as shared tenent service providers and who therefore are exempt from telecommunications relay service (TRS) contribution requirements if they provide no carrier services less interstate and international revenues for services provided for resale but reported as end user 235 because it was provided to carriers that do not contribute to universal service support mechanisms [ Line 511(b) ] equals $80,040 Revenues subject to NANPA and LNP contribution Total telecommunications service end-user revenues (including intrastate, interstate and international) $238,697 less telecommunications revenues for 537 filers who identify themselves as private service providers, 739 shared tenent service providers or payphone service providers and who therefore are exempt from North American Numbering Plan Administration (NANPA) and local number portability administration (LNP) contribution requirements if they provide no carrier services ? less telecommunications revenues for services provided for resale but reported as end user because it 251 was provided to carriers that do not contribute to universal service support mechanisms [ Line 511 (a) ] equals $237,707 1/ This table shows how contribution bases differ for different programs and provides relative magnitudes, but does not provide the actual amounts used for determining contribution amounts. Amounts shown represent the amounts contained in the FCC Form 499-A database as of December 7, 2009. The universal service administrator continues to receive additional and corrected filings. Exempt amounts were based on revenues and the filer type information contained in the FCC Form 499-A filings. The fund administrators may use carrier type, revenue type, line 603 exemption certifications and additional information requested from filers to determine which filers must contribute. The universal service fund administrator bills delinquent filers based on estimated revenues and may, in some instances, include estimated revenue amounts in contribution base amounts. Note also that universal service contribution factors are set quarterly based on FCC Form 499-Q filings. FCC Form 499-A data are used for true-up and auditing purposes. Also note that local number portability contribution amounts are determined by region of the country rather than on a nationwide basis. As a result of these factors, actual contribution bases have been based on different amounts than those shown. 2/ International revenues are excluded from the contribution base if the total amount of interstate end-user revenues for the filing entity consolidated with all affiliates is less than 12% of the total of interstate and international end-user revenues for the filing entity consolidated with all affiliates. See 47 C.F.R. § 54.706(c). The threshold was increased from 8% to 12% in 2002. See Federal-State Joint Board , on Universal Service, et al., CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-166, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752, 3806, para. 125 (2002). In addition, filers that provide only international services are exempt regardless of services offered by affiliates. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2008 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs .1 Provided as unbundled network elements (UNEs) $2,149 $207 $0 $2,357 $151 $13 * $164 .2 Provided under other arrangements 512 80 0 592 86 72 0 158 Total Line 303 2,661 288 0 2,949 236 85 * 321 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 2,039 2,014 0 4,053 1,865 982 2 2,848 .2 Provided as unbundled network elements or other contract arrangement 324 436 0 760 55 52 * 106 Total Line 304 2,363 2,450 0 4,813 1,919 1,033 2 2,954 305 Local private line & special access 523 11,486 0 12,009 288 1,831 * 2,120 306 Payphone compensation from toll carriers 16 23 0 39 * 1 * 2 307 Other local telecommunications service revenues 1,935 467 0 2,402 37 6 0 43 308 Universal service support revenues received from 781 742 0 1,523 649 1,929 * 2,578 Federal or state sources Total fixed local service provided for resale 8,278 15,456 0 23,734 3,130 4,885 3 8,018 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 46 16 0 62 31 37 * 68 Total mobile service provided for resale 46 16 0 62 31 37 * 68 Toll service 310 Operator and toll calls with alternative billing 1 0 0 1 * * 0 * arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 130 * 0 130 3 1 * 4 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 22 7 0 29 6 6 0 13 313 Satellite services 0 0 0 0 * * 0 * 314 All other long distance services * * 0 * 7 2 * 8 Total toll service provided for resale 153 8 0 160 16 9 * 25 315 Total service provided for resale (carrier's carrier) $8,476 $15,480 $0 $23,956 $3,178 $4,932 $3 $8,112 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2008 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECS and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs .1 Provided as unbundled network elements (UNEs) $47 $140 $1 $188 * * * * .2 Provided under other arrangements 206 24 1 231 * 0 0 * Total Line 303 252 164 2 418 * * * * 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 569 592 43 1,204 * * * * .2 Provided as unbundled network elements or other contract arrangement 327 150 42 519 0 0 0 0 Total Line 304 896 743 85 1,723 * * * * 305 Local private line & special access 1,240 811 74 2,125 1 1 * 2 306 Payphone compensation from toll carriers * * * * 34 59 2 95 307 Other local telecommunications service revenues 25 3 * 29 1 * * 2 308 Universal service support revenues received from 55 60 0 115 * * 0 * Federal or state sources Total fixed local service provided for resale 2,469 1,780 161 4,410 37 60 2 99 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 4 5 0 9 * * 0 * Total mobile service provided for resale 4 5 0 9 * * 0 * Toll service 310 Operator and toll calls with alternative billing 3 77 * 80 1 1 * 1 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 252 288 186 726 * * 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 250 880 49 1,178 0 0 0 0 313 Satellite services 1 0 3 4 0 0 0 0 314 All other long distance services 24 11 * 35 * * 0 * Total toll service provided for resale 529 1,256 238 2,023 1 1 * 2 315 Total service provided for resale (carrier's carrier) $3,002 $3,041 $399 $6,442 $38 $61 $2 $101 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2008 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs .1 Provided as unbundled network elements (UNEs) $6 $0 * $6 $0 $0 $0 $0 .2 Provided under other arrangements 0.6 0 0 0.6 0 0 0 0 Total Line 303 7 0 * 7 0 0 0 0 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 2 2 * 3 * * 0 * .2 Provided as unbundled network elements or other contract arrangement 16 17 0 32 1 * 3.6 4 Total Line 304 17 18 * 36 1 * 4 5 305 Local private line & special access 23 1 0 24 1 3 * 4 306 Payphone compensation from toll carriers 0 0 0 0 * * * * 307 Other local telecommunications service revenues 2 * * 3 13 1 * 14 308 Universal service support revenues received from 290 835 * 1,126 1 * 0 1 Federal or state sources Total fixed local service provided for resale 340 854 * 1,194 15 4 4 23 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 3,952 1,407 4 5,363 32 19 * 51 Total mobile service provided for resale 3,952 1,407 4 5,363 32 19 * 51 Toll service 310 Operator and toll calls with alternative billing 1 * * 1 0 0 0 0 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 290 286 1 577 * 3 * 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 * * 0 * 0 0 0 0 313 Satellite services 0 0 0 0 0 0 0 0 314 All other long distance services 5 2 2 10 * * * * Total toll service provided for resale 295 288 4 587 * 3 * 3 315 Total service provided for resale (carrier's carrier) $4,587 $2,550 $8 $7,144 $47 $26 $4 $77 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 5 Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale 1/: 2008 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 303 Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs .1 Provided as unbundled network elements (UNEs) $4 $6 * $10 $2,357 $366 $2 $2,725 .2 Provided under other arrangements 247 351 37.2 636 1,051 527 38 1,617 Total Line 303 251 357 38 646 3,408 894 40 4,341 304 Per-minute charges for originating or terminating calls .1 Provided under state or federal access tariff 47 46 3 97 4,522 3,636 48 8,206 .2 Provided as unbundled network elements or other contract arrangement 66 76 7 149 787 730 52 1,570 Total Line 304 113 122 10 246 5,309 4,366 100 9,776 305 Local private line & special access 295 439 25 759 2,371 14,571 99 17,041 306 Payphone compensation from toll carriers * * 1 1 50 84 3 137 307 Other local telecommunications service revenues 22 6 * 29 2,036 484 1 2,521 308 Universal service support revenues received from 35 6 0 41 1,812 3,572 * 5,384 Federal or state sources Total fixed local service provided for resale 717 931 73 1,722 14,986 23,971 243 39,200 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309 Monthly, activation, and message charges except toll 47 23 8 77 4,110 1,507 13 5,630 Total mobile service provided for resale 47 23 8 77 4,110 1,507 13 5,630 Toll service 310 Operator and toll calls with alternative billing 15 39 94 148 20 117 94 231 arrangements (credit card, collect, international call-back, etc.) 311 Ordinary long distance (direct dialed MTS, customer 1,440 2,954 3,890 8,283 2,114 3,531 4,077 9,722 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 263 1,436 250 1,948 541 2,330 298 3,169 313 Satellite services 3 68 124 194 4 68 127 198 314 All other long distance services 24 118 107 249 59 133 110 302 Total toll service provided for resale 1,745 4,614 4,463 10,822 2,739 6,179 4,705 13,623 315 Total service provided for resale (carrier's carrier) $2,509 $5,568 $4,544 $12,621 $21,836 $31,656 $4,960 $58,452 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2008 (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Regional Bell Operating Company Other Incumbent Local Incumbent Local Exchange Carriers Exchange Carriers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: .1 & .3 Traditional Circuit Switched $30,997 * $0 $30,997 $6,704 $16 $0 $6,720 .4 & .5 Interconnected Voice over Internet Protocol $6 $12 $0 $18 * $1 $0 $1 405 Tariffed subscriber line charges and PICC charges 122 6,219 0 6,342 47 1,649 0 1,696 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 31,125 6,231 0 37,356 6,751 1,666 0 8,417 406 Local private line and special access service 2,595 2,638 0 5,234 535 546 * 1,081 407 Payphone coin revenues (local and long distance) 87 * 0 87 18 * * 18 408 Other local telecommunications service revenues 399 12 0 411 68 2 * 70 Line 403 surcharges on fixed local service 1/ 173 1,005 0 1,178 32 231 0 263 Total fixed local service provided to end users 34,380 9,886 0 44,266 7,404 2,445 * 9,849 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 14 0 0 14 286 68 * 354 410 Message charges including roaming, but excluding 63 0 0 63 40 11 * 51 toll charges Line 403 surcharges on mobile service 1/ * 0 0 * 2 8 0 10 Total mobile service provided to end users 77 0 0 77 328 87 * 415 Toll service 411 Prepaid calling card (including card sales to * * 0 * * * * 1 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 0 0 0 0 0 0 foreign points 413 Operator and toll calls with alternative billing 35 * 0 35 5 * * 5 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 1,535 105 * 1,640 347 50 2 399 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 865 1 0 866 68 6 * 74 416 Satellite services 0 0 0 0 * 0 0 * 417 All other long distance services 14 1 0 14 2 * 0 2 Line 403 surcharges on toll service 1/ 5 11 0 16 2 5 * 7 Total toll service provided to end users 2,453 118 * 2,571 424 61 3 488 Total telecommunications and interconnected VoIP 36,910 10,004 * 46,914 8,156 2,592 3 10,751 service provided to end users 422 Uncollectible revenue/bad debt expense associated 614 115 * 729 123 26 * 149 with end user revenues other than Line 412 423 Net universal service contribution base revenues $36,296 $9,888 * $46,184 $8,033 $2,566 $3 $10,602 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2008 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A CLECS and Other Payphone Providers Fixed Local Competitors Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: .1 & .3 Traditional Circuit Switched $5,632 $174 $9 $5,816 * * $0 * .4 & .5 Interconnected Voice over Internet Protocol $4,145 $1,184 $143 $5,472 * * $0 * 405 Tariffed subscriber line charges and PICC charges 35 960 7 1,001 * 0 0 * levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 9,812 2,318 159 12,289 * * 0 * 406 Local private line and special access service 1,225 779 6 2,010 0 0 0 0 407 Payphone coin revenues (local and long distance) 2 * * 3 115 6 1 122 408 Other local telecommunications service revenues 234 30 1 265 * * * * Line 403 surcharges on fixed local service 1/ 61 315 2 378 * * 0 * Total fixed local service provided to end users 11,335 3,443 168 14,945 116 6 1 122 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 28 25 * 53 * * 0 * 410 Message charges including roaming, but excluding 2 1 * 3 1 * 0 1 toll charges Line 403 surcharges on mobile service 1/ * 3 * 3 0 0 0 0 Total mobile service provided to end users 31 29 * 59 1 * 0 1 Toll service 411 Prepaid calling card (including card sales to 2 5 81 88 * * 1 1 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 8 8 0 0 * * foreign points 413 Operator and toll calls with alternative billing 14 8 2 24 42 8 * 50 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 1,468 1,570 357 3,395 * * * * 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 192 710 69 970 0 0 0 0 416 Satellite services 1 5 20 26 * * * * 417 All other long distance services 76 120 12 208 * * 0 * Line 403 surcharges on toll service 1/ 9 259 7 275 0 0 0 0 Total toll service provided to end users 1,760 2,677 557 4,994 42 8 1 51 Total telecommunications and interconnected VoIP 13,125 6,148 725 19,998 158 15 1 174 service provided to end users 422 Uncollectible revenue/bad debt expense associated 221 92 10 322 1 * * 1 with end user revenues other than Line 412 423 Net universal service contribution base revenues $12,905 $6,056 $707 $19,668 $157 $15 $1 $173 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2008 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Cellular, PCS and SMR Wireless Other Wireless Telephony Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: .1 & .3 Traditional Circuit Switched $8 $6 $0 $14 $10 * $0 $10 .4 & .5 Interconnected Voice over Internet Protocol $5 $4 $0 $9 $4 $2 * $6 405 Tariffed subscriber line charges and PICC charges 0 7 0 7 0 0 0 0 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 13 18 0 31 14 2 * 16 406 Local private line and special access service 24 1 0 25 23 1 0 24 407 Payphone coin revenues (local and long distance) 0 0 0 0 * * * * 408 Other local telecommunications service revenues 20 1 0 20 15 2 0 17 Line 403 surcharges on fixed local service 1/ * 2 0 2 * * 0 * Total fixed local service provided to end users 57 21 0 79 52 6 * 58 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 73,243 22,320 204 95,767 370 45 * 414 410 Message charges including roaming, but excluding 14,143 3,986 195 18,324 17 3 * 20 toll charges Line 403 surcharges on mobile service 1/ 563 2,957 4 3,523 2 5 * 7 Total mobile service provided to end users 87,949 29,263 403 117,615 389 52 * 441 Toll service 411 Prepaid calling card (including card sales to 3 2 2 7 * * * * customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 9 9 0 0 0 0 foreign points 413 Operator and toll calls with alternative billing 56 29 1 86 0 0 * * arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 578 856 1,237 2,672 3 2 1 5 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 * * * * 0 1 0 1 416 Satellite services * * 0 * * * * * 417 All other long distance services * 6 3 9 * 2 * 2 Line 403 surcharges on toll service 1/ 3 101 6 109 * * * * Total toll service provided to end users 641 994 1,257 2,892 3 5 1 9 Total telecommunications and interconnected VoIP 88,647 30,279 1,660 120,586 444 63 1 508 service provided to end users 422 Uncollectible revenue/bad debt expense associated 1,841 529 27 2,397 4 1 * 5 with end user revenues other than Line 412 423 Net universal service contribution base revenues $86,805 $29,751 $1,624 $118,180 $440 $62 $1 $503 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 6 Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2008 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499-A Toll Carriers Total All Filers Line Intrastate Interstate International Total Intrastate Interstate International Total Fixed local service 404 Monthly service, local calling, connection charges, vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges: .1 & .3 Traditional Circuit Switched $2,033 $4 $1 $2,037 $45,384 $201 $10 $45,595 .4 & .5 Interconnected Voice over Internet Protocol $21 $22 $2 $45 $4,181 $1,224 $146 $5,551 405 Tariffed subscriber line charges and PICC charges 2 235 0 237 207 9,070 7 9,283 levied by a local exchange carrier on a no-PIC customer Total local exchange (Line 404 + Line 405) 2,055 262 3 2,320 49,771 10,496 162 60,429 406 Local private line and special access service 143 737 20 900 4,544 4,703 26 9,273 407 Payphone coin revenues (local and long distance) 8 4 1 13 231 11 2 243 408 Other local telecommunications service revenues 13 3 * 16 749 50 1 800 Line 403 surcharges on fixed local service 1/ 22 104 1 126 288 1,658 3 1,948 Total fixed local service provided to end users 2,239 1,109 26 3,374 55,583 16,916 194 72,693 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409 Monthly and activation charges 128 55 8 191 74,069 22,512 213 96,794 410 Message charges including roaming, but excluding 29 13 6 48 14,295 4,015 201 18,511 toll charges Line 403 surcharges on mobile service 1/ 1 8 * 9 567 2,980 4 3,551 Total mobile service provided to end users 158 76 14 248 88,931 29,507 417 118,855 Toll service 411 Prepaid calling card (including card sales to 177 158 2,982 3,316 182 165 3,065 3,412 customers and non-carrier distributors) reported at face value of cards 412 International calls that both originate and terminate in 0 0 844 844 0 0 862 862 foreign points 413 Operator and toll calls with alternative billing 537 279 143 959 688 324 147 1,159 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414 Ordinary long distance (direct-dialed MTS, customer 6,454 11,119 3,553 21,126 10,384 13,703 5,149 29,236 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 611 5,316 676 6,603 1,736 6,033 745 8,514 416 Satellite services 15 149 252 416 16 155 272 442 417 All other long distance services 53 719 121 893 145 848 136 1,128 Line 403 surcharges on toll service 1/ 54 1,932 218 2,204 72 2,307 231 2,611 Total toll service provided to end users 7,900 19,672 8,789 36,361 13,223 23,535 10,607 47,365 Total telecommunications and interconnected VoIP 10,297 20,857 8,828 39,982 157,737 69,958 11,218 238,913 service provided to end users 422 Uncollectible revenue/bad debt expense associated 290 282 97 669 3,094 1,044 134 4,272 with end user revenues other than Line 412 423 Net universal service contribution base revenues $10,007 $20,576 $7,887 $38,469 $154,643 $68,914 $10,223 $233,780 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal contributions. Table 7 Total Revenues: 2008 (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 $42,555 $25,319 $0 $67,873 $10,516 $7,329 $2 $17,847 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 103 24 0 126 18 1 * 20 [Lines 306 and 407] Mobile service 123 16 0 139 359 124 * 483 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 2,606 125 * 2,731 440 70 3 513 [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 45,386 25,483 * 70,869 11,334 7,524 6 18,863 Total telecommunications and IVoIP service provided 8,476 15,480 0 23,956 3,178 4,932 3 8,112 for resale (from Table 5) Total telecommunications and IVoIP service provided to 36,910 10,004 * 46,914 8,156 2,592 3 10,751 end users (from Table 6) Total telecommunications and IVoIP service revenues 45,386 25,483 * 70,869 11,334 7,524 6 18,863 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues .1 bundled with circuit switched local exchange service - - - - - - - - - 1,492 - - - - - - - - - 1,161 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - 0 - - - - - - - - - * .3 other - - - - - - - - - 19,990 - - - - - - - - - 2,877 419 Gross billed revenues from all sources - - - - - - - - - 92,351 - - - - - - - - - 22,901 421 Uncollectible revenue/bad debt expense associated 945 234 with gross billed revenues Total collected revenues from all sources $91,406 $22,667 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 7 Total Revenues: 2008 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 $13,801 $5,222 $329 $19,353 $3 $1 * $5 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 2 1 * 3 149 65 3 216 [Lines 306 and 407] Mobile service 34 34 * 68 1 * 0 1 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 2,289 3,933 795 7,017 43 9 1 53 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications and IVoIP service revenues 16,127 9,189 1,124 26,440 196 76 3 275 Total telecommunications and IVoIP service provided 3,002 3,041 399 6,442 38 61 2 101 for resale (from Table 5) Total telecommunications and IVoIP service provided to 13,125 6,148 725 19,998 158 15 1 174 end users (from Table 6) Total telecommunications and IVoIP service revenues 16,127 9,189 1,124 26,440 196 76 3 275 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues .1 bundled with circuit switched local exchange service - - - - - - - - - 1,500 - - - - - - - - - 0 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - 907 - - - - - - - - - 0 .3 other - - - - - - - - - 28,148 - - - - - - - - - 65 419 Gross billed revenues from all sources - - - - - - - - - 56,996 - - - - - - - - - 340 421 Uncollectible revenue/bad debt expense associated 703 4 with gross billed revenues Total collected revenues from all sources $56,293 $336 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 7 Total Revenues: 2008 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 $397 $876 * $1,273 $67 $10 $4 $81 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 0 0 0 0 * * * * [Lines 306 and 407] Mobile service 91,901 30,670 407 122,978 421 71 * 492 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 936 1,283 1,261 3,480 3 8 1 11 [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 93,233 32,829 1,668 127,730 491 88 5 584 Total telecommunications and IVoIP service provided 4,587 2,550 8 7,144 47 26 $4 77 for resale (from Table 5) Total telecommunications and IVoIP service provided to 88,647 30,279 1,660 120,586 444 63 1 508 end users (from Table 6) Total telecommunications and IVoIP service revenues 93,233 32,829 1,668 127,730 491 88 5 584 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues .1 bundled with circuit switched local exchange service - - - - - - - - - 1,108 - - - - - - - - - 24 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - * - - - - - - - - - * .3 other - - - - - - - - - 52,353 - - - - - - - - - 4,982 419 Gross billed revenues from all sources - - - - - - - - - 181,192 - - - - - - - - - 5,590 421 Uncollectible revenue/bad debt expense associated 3,016 8 with gross billed revenues Total collected revenues from all sources $178,177 $5,582 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 7 Total Revenues: 2008 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 $2,949 $2,036 $97 $5,082 $70,288 $40,793 $432 $111,514 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone 8 4 2 14 281 94 5 379 [Lines 306 and 407] Mobile service 204 99 22 325 93,042 31,014 430 124,485 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 9,645 24,286 13,252 47,183 15,962 29,714 15,312 60,988 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications and IVoIP service revenues 12,806 26,425 13,373 52,604 179,573 101,614 16,179 297,365 Total telecommunications and IVoIP service provided 2,509 5,568 4,544 12,621 21,836 31,656 4,960 58,452 for resale (from Table 5) Total telecommunications and IVoIP service provided to 10,297 20,857 8,828 39,982 157,737 69,958 11,218 238,913 end users (from Table 6) Total telecommunications and IVoIP service revenues 12,806 26,425 13,373 52,604 179,573 101,614 16,179 297,365 418 Enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non-telecommunications service revenues .1 bundled with circuit switched local exchange service - - - - - - - - - 609 - - - - - - - - - 5,896 .2 bundled with interconnected VoIP local exchange service - - - - - - - - - 117 - - - - - - - - - 1,025 .3 other - - - - - - - - - 36,159 - - - - - - - - - 144,574 419 Gross billed revenues from all sources - - - - - - - - - 89,490 - - - - - - - - - 448,859 421 Uncollectible revenue/bad debt expense associated 807 5,715 with gross billed revenues Total collected revenues from all sources $88,683 $443,144 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions. Table 8 Revenues by Type of Carrier 1/: 2008 (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 $23,734 $62 $160 $23,956 $44,266 $77 $2,571 $46,913 Other Incumbent Local Exchange Carriers (LECs) 8,018 68 25 8,112 9,849 415 488 10,751 Total Incumbent LECs 31,752 130 186 32,068 54,115 492 3,058 57,665 Competitive Access Providers (CAPs) and Competitive 3,888 1 1,269 5,158 11,785 38 3,999 15,822 Local Exchange Carriers (CLECs) Local Resellers 81 0 2 83 318 2 137 457 Private Service Providers 114 3 408 525 99 2 425 526 Shared-Tenant Service Providers 0 0 * * 29 * 11 39 Interconnected VoIP Providers 216 3 227 447 2,676 6 412 3,094 Other Local Service Providers 110 1 117 229 38 11 10 59 Total Local Competitors 4,410 9 2,023 6,442 14,945 59 4,994 19,998 Fixed Local Service Providers 36,163 138 2,208 38,509 69,060 551 8,052 77,663 Payphone Service Providers 99 * 2 101 122 1 51 174 Wireless Telephony Including Cellular, Personal 1,194 5,363 587 7,144 79 117,615 2,892 120,586 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 3 10 3 16 3 403 4 410 Specialized Mobile Radio (SMR) Dispatch 9 * 0 10 * 28 1 30 Wireless Data and Other Mobile Service Providers 10 40 * 51 55 10 3 68 Wireless Service Providers 1,217 5,414 590 7,221 137 118,056 2,901 121,093 Interexchange Carriers (IXCs) 1,519 20 7,095 8,634 2,900 125 25,699 28,724 Operator Service Providers (OSPs) * 0 44 45 13 0 1,006 1,018 Prepaid Calling Card Providers 4 12 178 193 4 8 1,794 1,806 Satellite Service Providers * 4 275 279 1 23 557 581 Toll Resellers 116 17 1,811 1,943 391 65 5,857 6,313 VoIP Toll Providers 28 0 324 351 10 1 226 236 Audio Bridge Service Provider 1 * 41 42 13 26 193 231 Other Toll Carriers 53 25 1,055 1,134 41 0 1,032 1,073 Toll Service Providers 1,722 77 10,822 12,621 3,374 248 36,361 39,982 All Filers $39,200 $5,629 $13,623 $58,452 $72,693 $118,855 $47,365 $238,913 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as Coaxial Cable Service Providers have been re-categorized as CLECs for the purpose of creating summary statistics. 2/ Telecommunications and interconnected VoIP service provided for resale consists of services provided to other contributors to federal universal service support mechanisms for resale. Revenues from services provided to firms that are de minimis under or exempt from federal universal service support mechanisms are reported as end-user service revenues and are subject to contribution requirements. Table 8 Revenues by Type of Carrier 1/: 2008 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 $9,888 $45,386 $25,483 $0 * $70,869 $21,482 $92,351 Other Incumbent Local Exchange Carriers (ILECs) 2,569 11,334 7,524 0 6 18,863 4,038 22,901 Total ILECs 12,457 56,719 33,007 0 6 89,732 25,520 115,252 Competitive Access Providers (CAPs) and Competitive 4,896 13,509 6,977 5 490 20,980 9,324 30,304 Local Exchange Carriers (CLECs) Local Resellers 114 358 115 2 65 540 326 866 Private Service Providers 372 268 692 1 91 1,051 7,320 8,371 Shared-Tenant Service Providers 11 28 9 0 3 39 90 129 Shared-Tenant Service Providers 1,352 1,864 1,247 1 429 3,541 13,066 16,607 Other Local Service Providers 18 100 150 0 38 288 430 718 Total Local Competitors 6,763 16,127 9,189 8 1,116 26,440 30,556 56,996 Fixed Local Service Providers 19,221 72,846 42,196 8 1,121 116,172 56,076 172,248 Payphone Service Providers 16 196 76 * 3 275 65 340 Wireless Telephony Including Cellular, Personal 31,375 93,233 32,829 9 1,659 127,730 53,462 181,192 Communications Service (PCS) and SMR Telephony Carriers Paging & Messaging Service Providers 52 366 59 0 * 426 213 639 Specialized Mobile Radio (SMR) Dispatch 1 39 1 0 * 40 4,550 4,590 Wireless Data and Other Mobile Service Providers 9 86 28 0 5 119 243 362 Wireless Service Providers 31,438 93,724 32,917 9 1,664 128,314 58,468 186,782 Interexchange Carriers (IXCs) 20,514 9,374 21,342 568 6,073 37,358 18,124 55,481 Operator Service Providers (OSPs) 182 813 234 5 11 1,063 164 1,227 Prepaid Calling Card Providers 1,713 99 66 24 1,810 1,999 247 2,246 Satellite Service Providers 385 41 251 152 416 860 3,741 4,601 Toll Resellers 4,319 2,226 4,099 58 1,874 8,256 3,219 11,476 VoIP Toll Provider 187 26 50 20 493 588 252 840 VoIP Toll Provider 191 34 157 12 70 273 10,258 10,532 Other Toll Carriers 972 193 226 6 1,782 2,207 879 3,086 Toll Service Providers 28,463 12,806 26,425 844 12,528 52,604 36,886 89,490 All Filers $79,137 $179,573 $101,614 $862 $15,317 $297,365 $151,494 $448,859 Note: Amounts may not add to totals due to rounding. * Denotes values greater than $0 but less than $500,000. 1/ Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by an RBOC affiliate that identifies itself as an IXC are included in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates. Filers identified as Coaxial Cable Service Providers have been re-categorized as CLECs for the purpose of creating summary statistics. 2/ Telecommunications and interconnected VoIP service provided for resale consists of services provided to other contributors to federal universal service support mechanisms for resale. Revenues from services provided to firms that are de minimis under or exempt from federal universal service support mechanisms are reported as end-user service revenues and are subject to contribution requirements. 3/ Universal service contribution base revenues consist of all interstate and international end-user telecommunications revenues except for international-to- international revenues reported on Line 412. The totals include revenues from filers who are de minimis or otherwise exempt from contributing. This table also includes international revenues that were exempt from contribution because of the 12 percent rule. See Table 4 for details on exempt amounts. Contribution base amounts reported as uncollectible on Line 422 have been removed. 4/ Carriers report non-telecommunications service revenues on Line 418. This category includes enhanced services, inside wiring maintenance, billing and collection, customer premises equipment, published directory, dark fiber, Internet, foreign carrier and other non-U.S. telecommunications service revenues. Table 9 Estimates of Average Revenue per Conversation Minute (Dollar Amounts and Minutes Shown in Millions) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Interstate operator service revenues 1/ $6,971 $5,747 $6,603 $5,480 $3,843 $2,508 $4,267 $4,287 $3,412 $3,661 $3,701 + Other interstate switched toll revenues 2/ $42,620 $45,026 $38,753 $32,870 $26,431 $24,050 $21,848 $20,241 $18,963 $20,017 $18,852 + International-to-international toll revenues 3/ $1,121 $983 $1,087 $924 $636 $1,148 $644 $873 $708 $886 $862 + Charges on bills identified as USF $878 $2,213 $2,830 $2,945 $2,361 $2,028 $1,789 $1,639 $1,538 $1,793 $1,720 contributions 4/ + PICC pass-through reported as SLC $1,208 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 revenues 5/ - Estimate carrier's carrier revenues 6/ = Total end-user switched toll revenues $52,797 $53,969 $49,273 $42,219 $33,270 $29,734 $28,548 $27,040 $24,622 $26,357 $25,135 - International-to-international toll revenues 3/ $1,121 $983 $1,087 $924 $636 $1,148 $644 $873 $708 $886 $862 = U.S. international and interstate end-user $51,677 $52,986 $48,186 $41,295 $32,634 $28,586 $27,904 $26,167 $23,913 $25,471 $24,273 switched toll revenues End-user international MTS revenues 7/ $14,726 $14,980 $14,909 $11,380 $9,956 $9,294 $9,176 $7,976 $7,906 $7,220 $7,305 - International reoriginating revenues 14/ $287 $370 $430 $712 $574 $633 $725 $702 $899 $760 $758 - International-to-international toll revenues 3/ $1,121 $983 $1,087 $924 $636 $1,148 $644 $873 $708 $886 $862 = International revenues for U.S. end users $13,318 $13,627 $13,391 $9,743 $8,746 $7,513 $7,807 $6,401 $6,299 $5,574 $5,685 Total end-user switched toll revenues $52,797 $53,969 $49,273 $42,219 $33,270 $29,734 $28,548 $27,040 $24,622 $26,357 $25,135 - End-user international MTS revenues 6/ $14,726 $14,980 $14,909 $11,380 $9,956 $9,294 $9,176 $7,976 $7,906 $7,220 $7,305 = Interstate domestic switched end-user $38,071 $39,507 $34,364 $30,840 $23,314 $20,440 $19,372 $19,064 $16,715 $19,137 $17,831 revenues U.S. billed international minutes 24,250 28,515 29,216 33,280 35,988 42,664 63,553 70,064 72,440 69,975 74,934 - Country-direct/beyond minutes 10/ 933 1,736 1,935 1,330 1,127 1,422 1,447 1,058 1,266 1,218 1,325 - Reoriginating minutes 14/ 532 802 1,412 4,414 3,664 5,355 6,934 7,193 7,319 7,061 9,338 = U.S. billed international minutes excluding 22,785 25,978 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 64,270 country-direct/beyond and reoriginating ILEC originating interstate access minutes 8/ 184,000 208,267 203,962 194,435 167,970 146,108 137,892 129,803 108,043 99,394 89,924 + Estimated CLEC originating minutes 9/ 6,452 12,079 18,017 22,943 20,324 21,916 21,787 21,417 18,151 18,090 18,165 - U.S. billed international minutes excluding country-direct/beyond and reoriginating 10/ 22,785 25,978 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 64,270 = Domestic originating access minutes 167,667 194,369 196,110 189,843 157,097 132,137 104,507 89,407 62,338 55,787 43,818 ILEC terminating interstate access minutes 8/ 334,800 344,465 362,955 345,256 318,672 297,826 284,441 271,229 271,216 249,504 225,732 + Estimated CLEC terminating minutes 9/ 11,739 20,757 32,062 40,740 38,559 44,674 44,942 44,753 45,564 45,410 45,598 - Country-direct/beyond international 933 1,736 1,935 1,330 1,127 1,422 1,447 1,058 1,266 1,218 1,325 settlement minutes 10/ Foreign billed international settlement - minutes 11/ 10,208 10,765 12,719 13,478 13,575 13,575 18,547 21,865 23,410 18,547 18,547 = Domestic terminating access minutes 335,398 352,721 380,364 371,188 342,529 327,503 309,389 293,060 292,105 275,150 251,458 Conversation minutes 12/ U.S. interstate and international minutes 358,183 377,163 406,233 398,724 373,727 363,390 364,561 354,873 333,325 336,970 305,747 International conversation minutes 10/ 22,785 25,016 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 64,270 Interstate domestic conversation minutes 335,398 352,147 380,364 371,188 342,529 327,503 309,389 293,060 292,105 275,150 251,458 End-user revenue per U.S. interstate and international minute $0.14 $0.14 $0.12 $0.10 $0.09 $0.08 $0.08 $0.07 $0.07 $0.08 $0.08 International conversation minute 13/ $0.58 $0.54 $0.52 $0.35 $0.28 $0.21 $0.14 $0.10 $0.10 $0.09 $0.09 Interstate domestic conversation minute $0.11 $0.11 $0.09 $0.08 $0.07 $0.06 $0.06 $0.07 $0.06 $0.07 $0.07 See notes on next page. Notes for Table 9. n.a. - not available Note: Some data for prior years have been revised. Data for 1992 through 1997 available in the Zip File version of the report. 1/ Starting in 1997, interstate operator service revenues include interstate and international prepaid calling card revenues (currently Table 6, Line 411) plus revenues from interstate and international operator and toll calls with alternative billing arrangements (currently Table 6, Line 413). 2/ Starting in 1997, other interstate switched toll revenues are equal to revenues from interstate and international ordinary long distance and other switched toll services (currently Table 6, Line 414). 3/ Starting in 1997, amounts shown are revenues from international calls that both originate and terminate at foreign points (currently Table 6, Line 412). International-to-international revenues were not reported separately prior to 1997. Amounts for 1992 through 1996 were estimated using a 50% growth rate. Most international-to-international services are provided to foreign customers. Some international-to-international services, such as call-back service, generate both originating and terminating access minutes. 4/ Carriers only report aggregate universal service surcharge revenues. Such revenues are allocated across services based on the share of contribution base revenues generated by each service. 5/ PICC charges were introduced in 1998. The reporting instructions for 1998 data were not clear and many toll carriers reported PICC pass-through charges as local revenues rather than as toll revenues. Carrier-by-carrier information was used to identify misclassified amounts to ensure that the amount of toll revenues for 1998 was accurate. 6/ Through 1996, carrier's carrier switched toll revenues was estimated to equal the total amount of switched toll revenue reported by toll resellers times 80%. 7/ Table 2 of Trends in the U.S. International Telecommunications Industry contains estimates of international end-user revenues. Preliminary figures are used for 2004 through 2007. Note that these figures differ significantly from data contained in Table 6 herein. Table 3 in Trends in the U.S. International Telecommunications Industry contains data for country-direct/beyond and reoriginated minutes. 8/ Based on National Exchange Carrier Association (NECA) filings. Separate data were available for originating and terminating access minutes through 1998. Beginning in 1999, incumbent LEC (ILEC in this table) total interstate access minutes (Monitoring Report, Table 8.1) are allocated between originating and terminating based on the originating and terminating shares of carrier common line (CCL) minutes of use reported by carriers subject to price-cap regulation and all local exchange carriers in the NECA pool (see Trends in Telephone Service, Table 1.4. The August 2008 edition contains data for 2006.) These figures exclude the minutes of rate-of-return incumbent LECs. Access minute breakouts are no longer available. Starting with 2007, originating minutes are assumed to be 28.49% of total, the ratio for 2006.. 9/ CLEC access minutes are estimated based on the local service competitors share of the local services market. Data taken from Table 8.7 of Trends in Telephone Service. That table, reproduced in relevant part below, includes all local service revenues of local carriers, but includes only local exchange service revenues of wireless and toll carriers. Local service competitors' share of 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 local revenues 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8% 16.5% 16.8% 18.2% 20.2% 10/ World total MTS minutes billed in the United States from Section 43.61 International Telecommunications Data includes data for all U.S. points, all settlement arrangements and all U.S. carriers. Billing types covered are 1, 11, and (through 1999) 21. (See the International Data report for an explanation of billing types.) Starting in 1995, carriers separately reported country-direct/beyond minutes. Most country-direct traffic generates terminating access minutes and generally represents billed end-user revenues from U.S. customers. Country-beyond minutes generally do not result in access minutes and generate revenues that are reported as international-to-international. Some other international-to-international traffic, however, results in access minutes and ordinary U.S. billed minutes of traffic. In the absence of better assumptions, and recognizing the offsetting bias for call-back minutes, the country-beyond/direct minutes are treated as terminating access minutes but are not included as international conversation minutes. 11/ World total MTS minutes originating or terminating in the United States but billed in foreign countries are from Section 43.61 International Telecommunications Data. Includes data for all U.S. points, all settlement arrangments and all U.S. carriers. Billing types covered are 2, 12, and (through 1999) 22. (See the International Data report for an explanation of billing types.) Foreign billed minutes of international traffic generate terminating access minutes. 12/ International conversation minutes are estimated as U.S. billed international traffic minutes excluding country-direct/beyond and reoriginating minutes. Domestic conversation minutes are estimated as domestic terminating access minutes. An unknown quantity of conversation minutes result in reported interstate or international switched toll revenues but not in reported interstate access minutes. This may result in an upward bias in the revenue per minute estimates. Estimates for recent years may be overstated by as much as 20%. 13/ International revenue per-minute amounts published herein differ from estimates published in Trends in the U.S. International Telecommunications Industry, Table 2, because the latter estimates include revenues and billed minutes associated with calls that originate and terminate at foreign points. 14/ Reorigination traffic originates and terminates outside of the United States. U.S. carriers receive settlement-like payments for this service which are reported as U.S. billed revenues in 43.61 reports. For FCC Form 499 reporting, these amounts are treated as settlements and should not be reported as U.S. telecommunications revenues. However, some filers may erroneously include reorigination revenues on Line 412 as international-to-international revenues. Reorigination data are taken from Table 3 in Trends in the U.S. International Telecommunications Industry and from Section 43.61 International Telecommunications Data. Table 10 Estimates of Access and Universal Service Contribution Costs per Conversation Minute (Dollar Amounts and Minutes Shown in Millions, Per-Minute Amounts Shown in Dollars and Cents) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Minutes data from Table 9 1/ ILEC originating interstate access minutes 184,000 208,267 203,962 194,435 167,970 146,108 137,892 129,803 108,043 99,394 89,924 Originating minutes of international traffic 22,785 25,978 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 64,270 Domestic originating access minutes 167,667 194,369 196,110 189,843 157,097 132,137 104,507 89,407 62,338 55,787 43,818 ILEC terminating interstate access minutes 334,800 344,465 362,955 345,256 318,672 297,826 284,441 271,229 271,216 249,504 225,732 Terminating minutes of international traffic 11,141 12,501 14,654 14,808 14,702 14,997 19,994 22,923 24,676 19,764 19,872 U.S. Interstate and international 358,183 377,163 406,233 398,724 373,727 363,390 364,561 354,873 333,325 336,970 305,747 conversation minutes International conversation minutes 22,785 25,016 25,869 27,536 31,197 35,887 55,172 61,813 63,855 61,696 64,270 Interstate domestic conversation minutes 335,398 352,147 380,364 371,188 342,529 327,503 309,389 293,060 292,105 275,150 251,458 End-user revenue per minute data from Table 9 U.S. interstate and international minute $0.14 $0.14 $0.12 $0.10 $0.09 $0.08 $0.08 $0.07 $0.07 $0.08 $0.08 International conversation minute $0.58 $0.54 $0.52 $0.35 $0.28 $0.21 $0.14 $0.10 $0.10 $0.09 $0.09 Interstate domestic conversation minute $0.11 $0.11 $0.09 $0.08 $0.07 $0.06 $0.06 $0.07 $0.06 $0.07 $0.07 Access cost per interstate 2-ended minute 2/ $0.039 $0.033 $0.024 $0.018 $0.016 $0.014 $0.015 $0.016 $0.016 $0.017 $0.017 Originating access minutes $0.022 $0.018 $0.013 $0.010 $0.008 $0.007 $0.008 $0.008 $0.008 $0.009 $0.009 Terminating access minutes $0.016 $0.013 $0.011 $0.008 $0.007 $0.007 $0.007 $0.008 $0.008 $0.008 $0.008 Access cost per average conversation minute 3/ U.S. interstate and international minutes $0.026 $0.022 $0.016 $0.012 $0.010 $0.009 $0.009 $0.009 $0.009 $0.008 $0.009 International conversation minutes $0.030 $0.026 $0.019 $0.014 $0.012 $0.010 $0.010 $0.011 $0.011 $0.011 $0.011 Interstate domestic conversation minutes $0.026 $0.022 $0.016 $0.012 $0.010 $0.009 $0.008 $0.008 $0.008 $0.008 $0.008 Universal service contributions assessed on a per-line basis ($millions) 4/ $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Expressed per minute 5/: U.S. interstate and international minutes $0.006 $0.007 $0.007 $0.007 $0.006 $0.006 $0.006 $0.006 $0.007 $0.007 $0.007 International conversation minutes $0.025 $0.025 $0.029 $0.024 $0.020 $0.017 $0.011 $0.010 $0.009 $0.009 $0.008 Interstate domestic conversation minutes $0.005 $0.005 $0.005 $0.006 $0.005 $0.005 $0.005 $0.006 $0.005 $0.007 $0.006 CLEC access revenues assessed on a per-minute basis ($millions) 6/ $93 $213 $369 $573 $854 $913 $586 $477 $582 $864 $982 Expressed per conversation minute $0.0003 $0.0006 $0.0009 $0.0014 $0.0023 $0.0025 $0.0016 $0.0013 $0.0017 $0.0026 $0.0032 International-to-international revenues as % of total international end-user revenues 7/ 7.6% 6.6% 7.3% 8.1% 6.4% 12.8% 7.0% 10.9% 9.0% 12.3% 11.8% Net international settlement payouts ($millions) 7/ $4,663 $4,477 $4,335 $2,649 $2,560 $2,650 $2,961 $3,007 $2,962 $2,946 $3,118 Per U.S. interstate and international minute $0.012 $0.011 $0.010 $0.006 $0.006 $0.006 $0.008 $0.008 $0.008 $0.008 $0.009 Per international conversation minute $0.189 $0.167 $0.155 $0.088 $0.077 $0.064 $0.050 $0.043 $0.042 $0.042 $0.043 PICC charges billed by Tier 1 carriers ($millions) 8/ $2,000 $2,258 $1,732 $571 $134 $72 $76 $71 $70 $69 $67 Expressed per conversation minute $0.006 $0.006 $0.004 $0.001 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 Access and universal service contribution costs 9/ per: U.S. interstate and international minute $0.050 $0.046 $0.038 $0.028 $0.025 $0.024 $0.024 $0.024 $0.026 $0.026 $0.029 International conversation minute 10/ $0.249 $0.224 $0.209 $0.130 $0.111 $0.095 $0.073 $0.066 $0.065 $0.065 $0.066 Interstate domestic conversation minute $0.037 $0.034 $0.026 $0.020 $0.017 $0.016 $0.015 $0.016 $0.015 $0.017 $0.018 Revenue per-minute net of access and universal service contribution costs, per: U.S. interstate and international minute $0.094 $0.094 $0.081 $0.076 $0.062 $0.054 $0.052 $0.050 $0.046 $0.050 $0.050 International conversation minute 10/ $0.335 $0.314 $0.309 $0.224 $0.169 $0.115 $0.068 $0.038 $0.034 $0.026 $0.023 Interstate domestic conversation minute $0.077 $0.078 $0.064 $0.063 $0.051 $0.046 $0.048 $0.049 $0.042 $0.052 $0.052 Access and universal service contribution costs as a percentage of revenue per minute U.S. interstate and international minutes 34.8% 33.1% 31.7% 27.0% 29.1% 30.9% 31.6% 32.2% 36.1% 34.2% 36.4% International conversation minutes 42.6% 41.6% 40.3% 36.7% 39.7% 45.2% 51.8% 63.3% 65.4% 71.6% 74.2% Interstate domestic conversation minutes 32.3% 30.2% 28.7% 24.4% 25.6% 26.3% 24.1% 24.6% 26.3% 25.2% 25.1% See notes on next page. Notes for Table 10. Note: Some data for prior years have been revised. Data for 1992 through 1997 available in the Zip File version of the report. 1/ The number of conversation minutes is based on the number of access minutes. An unknown quantity of conversation minutes result in reported revenues but do not result in interstate access minutes. Therefore, the analysis may overstate average access and universal service contribution costs per minute. Note that the end-user revenue per-minute data taken from Table 9 includes revenues from universal service pass-through charges levied on end users by filers to recover contribution amounts. In this table, ILEC refers to incumbent Local Exchange Carrier. 2/ Originating and terminating per-minute charges are derived from data in Table 1.2 of Trends in Telephone Service. Charges for the year are calculated as the average of charges for the first and second half of each year. 3/ Access cost per average conversation minute is calculated as the total cost of originating and terminating access (based on Incumbent LEC but not CLEC access minutes and costs per minute shown in the table) divided by conversation minutes. For example, for international minutes, originating access minutes equal the U.S. billed international minutes excluding country-direct/beyond minutes and hubbing minutes. Similarly, terminating access minutes equal the number of foreign billed minutes plus country-direct/beyond minutes. Ideally, country-direct minutes would be treated differently from country-beyond minutes, but Section 43.61 international traffic data reports do not contain that breakout. For simplicity, all CLEC minutes are treated as domestic access minutes. 4/ Source: National Exchange Carrier Association (NECA). Through 1997, toll carriers were assessed based on the number of presubscribed lines. 5/ Starting with 1998, the amounts are estimated as the approximate contribution rate for interstate and international revenues times the average per-minute charges. Starting 2003, the USF rate is calculated net of the circularity adjustment. 6/ Interstate access per-minute revenues reported on FCC Form 457 and FCC Form 499-A by carriers other than Incumbent LECs. 7/ Section 43.61 International Telecommunications Data. Totals exclude settlement payouts for hubbing service. Net international settlement payouts have been reduced by the ratio of international-to-international service revenues to total international end-user revenues, reflecting the assumption that these revenues cause a proportionate share of net settlement payouts. 8/ Since 1998, Tier 1 incumbent local exchange carriers were allowed to recover a portion of interstate expenses through presubscribed interexchange carrier charges (PICCs) on access lines. Where the access line was presubscribed, the PICC was levied on the interexchange carrier (IXC) and the associated revenues were reported as carrier's carrier revenues. The PICC charges shown in the table through 2006 are based on Tier 1 carrier charges as well as line count information from Tariff Review Plans and from the Statistics of Communications Common Carriers. Where consumers did not have a presubscribed IXC, however, the Incumbent LEC billed the PICC charge to the customer rather than the IXC. We estimated that 97% of Incumbent LEC PICC revenues were collected from IXCs. Note that PICCs on residential and single line business lines were eliminated on July 1, 2000 and that PICC charges largely have been phased out for other lines. Beginning with 2007, estimated PICC charges to IXCs are based on the change in ILEC Tier 1 multi-line business line counts. 9/ Includes tariffed per-minute access charges, net international settlement payouts, universal service contributions and PICC charges but excludes the cost of dedicated access lines. 10/ The net cost of settling international traffic consists of the settlement payouts for U.S. billed traffic less the settlement receipts for foreign billed traffic. The minutes of foreign billed traffic are not included as international conversation minutes because U.S. carriers do not bill U.S. customers for this traffic. U.S. carriers incur terminating access charges for these minutes and international transmission costs. The terminating access costs are included in the cost per-minute estimates. Trends in the U.S. International Telecommunications Industry shows end-user revenue per minute handled, as compared to end-user revenue per U.S. billed conversation minute shown herein. Table 11 End-User Telecommunications and Interconnected VoIP Service Revenues By Region of the Country: 2008 (Dollar Amounts Shown in Millions) By Type of Filer All Services Fixed Local Toll Wireless Total Region as and including for Percent of Payphone Satellite Region Total Southeast: $17,023 $7,797 $28,304 $53,124 22.2 % Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Puerto Rico, South Carolina, Tennessee, and U.S. Virgin Islands Western: 9,665 4,833 16,701 31,199 13.1 Alaska, Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming West Coast: 10,076 5,798 16,707 32,581 13.6 California, Hawaii, Nevada, American Samoa, Guam, Northern Mariana Islands, and Wake Island Mid-Atlantic: 10,427 5,714 12,995 29,136 12.2 Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, and West Virginia Mid-West: 11,294 5,133 16,721 33,148 13.9 Illinois, Indiana, Michigan, Ohio, and Wisconsin Northeast: 9,621 5,071 13,783 28,475 11.9 Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont Southwest: 9,373 5,141 15,875 30,390 12.7 Arkansas, Kansas, Missouri, Oklahoma, and Texas Filers that did not identify revenues by region 1/ 357 497 7 861 0.4 Total $77,837 $39,982 $121,093 $238,913 100.0 % Note: Detail may not add to totals due to rounding. 1/ Filers that are exempt from contributing to local number portability administration are not required to provide a breakout by region of the country. Table 12 Share of Universal Service Contributions 1/ By Principal Type of Contributor 2/ Preliminary 1/ Q3 Service Provider Category 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Fixed Local Service Providers Regional Bell Operating Companies 14.4 % 16.4 % 18.4 % 20.2 % 20.3 % 20.4 % 20.4 % 18.6 % 14.5 % 13.9 % 13.3 % 13.6 % (RBOCs) Including Local Affiliates Other Incumbent Local Exchange 1.5 1.7 2.1 2.9 3.3 4.1 4.2 4.2 3.7 3.7 3.6 3.7 Carriers (LECs) Including Local Affiliates Competitive Local Exchange Carriers 2.7 2.3 2.8 3.4 3.6 3.8 4.4 5.3 6.4 8.1 8.8 10.2 (CLECs) Local Resellers, Payphone Providers and Other Local Carriers, Excluding LEC Affiliates Total: Fixed Local Service Providers 18.6 20.4 23.2 26.5 27.2 28.2 29.0 28.1 24.6 25.7 25.7 27.5 Wireless Service Providers Wireless Affiliates of RBOCs 16.4 16.9 20.3 21.7 25.8 27.9 27.2 Wireless Affiliates of Other 2.1 2.0 0.4 0.5 0.2 0.2 0.3 Incumbent LECs Wireless Telephony, Paging, SMR 10.4 11.6 15.3 18.3 16.0 15.2 14.3 and Other Wireless Providers, Excluding LEC Affiliates Total Wireless Service Providers 6.6 9.4 12.1 17.4 25.3 28.9 30.6 36.0 40.4 42.0 43.3 41.8 Toll Service Providers Toll Affiliates of RBOCs 2.0 2.3 3.0 3.5 5.1 7.2 8.6 29.1 27.4 25.8 24.0 23.8 Toll Affiliates of Other Incumbent 0.5 0.6 1.1 1.3 1.3 1.3 1.4 LECs IXCs, Toll Resellers, Prepaid Calling 35.1 31.2 5.8 6.4 5.2 5.7 5.5 Card, Satellite Service, and Other Toll providers, Excluding LEC Affiliates Total Toll Service Providers 74.8 70.2 64.7 56.1 47.5 42.8 40.4 35.9 35.0 32.2 31.0 30.7 RBOCs and Affiliates 43.9 46.0 68.0 63.6 65.5 65.2 64.6 Other Incumbant LECs and Affiliates 6.7 6.8 5.6 5.4 5.2 5.2 5.4 All Other Service Providers 49.4 47.3 26.4 31.0 29.2 29.7 30.0 Total All Filers 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 100.0 % Note: Detail may not add to totals due to rounding. Some data for prior years have been revised. Data back to 1997 available in prior reports. 1/ For years through 2002, the percentages are based on shares of reported subject interstate and international end-user billed revenues. The percentages shown for 2003 through 2007 are based on shares of reported subject interstate and international end-user collected revenues. Preliminary percentages shown for 2009 and 2010 are based on projected collected revenues from FCC Form 499-Q filings. Calculations exclude revenues for calls that both originate and terminate in foreign points and revenues that qualify for the Limited International Revenue Exemption (LIRE). Calculations were based on data from all filers, including some that were exempt from making universal service contributions. For the purposes of this table, AT&T Wireless filings are classified as RBOC filings for 2004; and AT&T Communications and MCI filings are classified as RBOC filings starting 2006. The Sprint Nextel 2004 and 2005 wireless and toll filings are classified as non-ILEC to be consistent with later years. 2/ Prior to 2004, the FCC Form 499-A asked each filer to identify a single category of communications business that best described its operations. The service provider categories listed on FCC Form 499-A correspond to traditional breakdowns of the industry. For 2004 and 2005, carriers were allowed to specify more than one category and were allowed to identify themselves as an All Distance service provider. Revenues from these filers were categorized using the traditional industry classification that best described each company. Source: 1999 through 2008: FCC Form 499-A filings; 2009 and 2010: FCC Form 499-Q filings. 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