Trends in Telephone Service Industry Analysis and Technology Division Wireline Competition Bureau September 2010 This report is available for reference in the FCC’s Information Center at 445 12th Street, S.W., Courtyard Level. Copies may be purchased by calling Best Copy and Printing, Inc., Portals II, 445 12th Street S.W., Room CY-B402, Washington DC 20554 at 800-378-3160, facsimile 202-488-5563, or via e-mail fcc@bcpiweb.com. The report can also be downloaded from the Wireline Competition Bureau Statistical Reports Internet site at: www.fcc.gov/wcb/iatd/trends.html. Table of Contents 1-1 1-1 Table 1.1 Interstate Per-Line Access Charges……………………………………………………… 1-3 Table 1.2 Interstate Per-Minute Access Charges…………………………………………………… 1-4 Table 1.3 Interstate Per-Line Access Charges by Carrier…………...……………………………… 1-5 Table 1.4 Interstate Per-Minute Access Charges by Carrier………………………………………… 1-7 2-1 Table 2.1 High-Speed Connections………………………………………………………………… 2-3 Chart 2.1 Fixed High-Speed Connections…………………………………………………………… 2-3 Chart 2.2 High-Speed Connections by Technology………………………………………………… 2-3 Table 2.2 Residential High-Speed Connections…………………………………………………… 2-4 Chart 2.3 Residential Fixed High-Speed Connections……………………………………………… 2-4 Chart 2.4 Residential High-Speed Connections by Technology…………………………………… 2-4 Table 2.3 Total High-Speed Connections by Speed Tier…………………………………………… 2-5 Table 2.4 Residential High-Speed Connections by Speed Tier…………………………………… 2-6 Table 2.5 High-Speed Connections by Technology by State……………………………………… 2-7 Table 2.6 Percentage of High-Speed Connections by Download Speed by State…………………… 2-9 Table 2.7 Percentage of Residential End-User Premises with Access to High-Services by State … 2-11 Table 2.8 Residential Fixed High-Speed Connections and Households by State……………………2-12 Chart 2.5 Percentage of U.S. Households with Computers, Internet Access, and High-Speed Access at Home………………………………………………………………2-14 Table 2.9 Percent of U.S. Households with Internet Connections at Home: Rural vs. Urban……… 2-15 Chart 2.6 Percent of U.S. Households with Internet Connections at Home: Rural vs. Urban……… 2-15 Consumer Expenditures…………………………………………………………………………… 3-1 Table 3.1 Household Expenditures for Telephone Service………………………………………… 3-3 Table 3.2 Average Monthly Household Telecommunications Expenditures by Type of Provider………………………………………………………………………………… 3-4 Table 3.3 Personal Consumption Expenditures……………………………………………………. 3-5 Table 3.4 Personal Consumption Expenditures Per Household Per Month………………………… 3-6 Chart 3.1 Personal Consumption Expenditures for Telephone Service and Internet Access……… 3-7 Chart 3.2 Monthly Personal Consumption Expenditures for Telephone Service per Household…… 3-7 Introduction……………………………………….……………………………………………… Access Charges…………………………………………………………………………………… Advanced Telecommunications…………………………………………………………………… i Earnings …………………………………………………………………………………………. 4-1 Table 4.1 Interstate Rate of Return Summary: Years 2000 through 2008 ………………………… 4-3 Employment and Labor Productivity …………………………………………………………. 5-1 Table 5.1 Average Number of Employees in the Telecommunications Industry ………………… 5-3 Chart 5.1 Average Number of Employees in the Telecommunications Industry ...………………… 5-3 Table 5.2 Labor Productivity Index for the Wired and Wireless Telecommunications Industry …………………………………………………………… 5-4 Chart 5.2 Wired and Wireless Telecommunications Carriers (NAICS 5171 and 5172) Labor Productivity Index ……………………………………. 5-4 Table 5.3 Number of Telecommunications Service Providers by Size of Business ……………… 5-5 International Telephone Service ………………………………………………………………… 6-1 Table 6.1 International Service from the United States …………………………………………… 6-3 Chart 6.1 Billed Revenues per Minute and per Call ……………………………………………… 6-3 Table 6.2 International Telephone Service Settlements …………………………………………… 6-4 Table 6.3 International Message Telephone Service for 2008 …………………………………… 6-5 Chart 6.2 U.S. Billed Minutes by Country for 2008 ……………………………………………… 6-5 Table 6.4 U.S. Billed Revenues of Facilities-Based and Facilities-Resale Carriers in 2008……… 6-6 Table 6.5 Top Providers of Pure Resale International MTS in 2008 ……………………………… 6-7 Lines ……………………………………………………………………………………………… 7-1 Table 7.1 Total U.S. Wireline Telephone Lines …………………………………………………… 7-3 Table 7.2 Telephone Loops of Incumbent Local Exchange Carriers by State: 2007 & 2008 ……… 7-4 Table 7.3 Telephone Loops of Incumbent Local Exchange Carriers by Holding Company: 2007 & 2008……………………………………………………………………………… 7-6 Chart 7.1 Five Largest Holding Companies' Share of Loops for 2007 …………………………… 7-6 Chart 7.2 Five Largest Holding Companies' Share of Loops for 2008 …………………………… 7-7 Table 7.4 Additional Residential Lines for Households with Telephone Service ………………… 7-8 Table 7.5 Number of Payphones Owned by LECs and Independent Operators: 2008 & 2009 …… 7-9 Table 7.6 Number of Payphones Over Time ………………………………….…………………… 7-11 Local Telephone Competition …………………………………………………………………… 8-1 Table 8.1 End-User Switched Access Lines and VoIP Subscriptions ……………………………. 8-5 Chart 8.1 End-User Switched Access Lines and VoIP Subscriptions ……………………………. 8-5 Table 8.2 End-User Switched Access Lines and VoIP Subscriptions by Customer Type …..…… 8-6 Chart 8.2 Percent of Lines and VoIP Subscriptions that Serve Residential Customers …………… 8-6 ii Table 8.3 End-User Switched Access Lines and VoIP Subscriptions Reported by Non-ILECs … 8-7 Chart 8.3 Non-ILEC End-User Switched Access Lines and VoIP Subscriptions ………………… 8-7 Table 8.4 ILEC End-User (Retail) and Wholesale Switched Access Lines, VoIP Subscriptions, and UNEs………………………………………………………………………………… 8-8 Chart 8.4 ILEC Total Lines and the Percent Provided to CLECs ………………………………… 8-8 Table 8.5 Total End-User Switched Access Lines and VoIP Subscriptions by State ……………… 8-9 Table 8.6 Residential End-User Switched Access Lines and VoIP Subscriptions by State ……… 8-10 Table 8.7 Business End-User Switched Access Lines and VoIP Subscriptions by State ………. 8-11 Table 8.8 Non-ILEC Share of Total End-User Switched Access Lines and VoIP Subscriptions by State…………………………………………………………………………………… 8-12 Table 8.9 Nationwide Local Service Revenues and New Competitors' Share……………………… 8-13 Table 8.10 Telephone Number Porting Activity Since Wireless Pooling Started …………………… 8-15 Table 8.11 Telephone Numbers Remaining in the Porting Database at the End of Each Quarter … 8-16 Table 8.12 Numbers in the Porting Database by Quarter in Which They Were Most Recently Ported…………………………………………………………………………………… 8-17 Long Distance Telephone Industry………………………………………………………… 9-1 Table 9.1 Toll Revenues by Provider …………………………………………………………….. 9-5 Table 9.2 Intrastate, Interstate, and International Toll Revenues ………………………………… 9-7 Chart 9.1 Toll Revenues by Market Segment ……………………………………………………… 9-7 Table 9.3 End-User Toll Revenues ………………………………………………………………… 9-8 Table 9.4 Number of Toll Service Providers ……………………………………………………… 9-9 Table 9.5 Residential Household Market Shares: 1995-2008 …………………………………… 9-10 Chart 9.2 Residential Household Market Shares: 2008 …………………………………………… 9-10 Table 9.6 Residential Household Market Shares by Region: 2008 ……………………………… 9-12 Chart 9.3 Residential Household Market Shares by Region: 2008 ………………………………. 9-12 Table 9.7 Regional Bell Operating Companies'Applications to Provide In-Region InterLATA Service ………………………………………………… 9-14 Minutes ……………………………………………………………………………………… 10-1 Table 10.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers ………… 10-3 Chart 10.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers ………… 10-3 Table 10.2 Telephone Calls and Billed Access Minutes of Large ILECs Reporting to the Commission …………………..……………………………………………………….. 10-4 Mobile Wireless Service …………………………………………………………………… 11-1 Table 11.1 Measures of Mobile Wireless Telephone Subscribers…………………………………… 11-3 Chart 11.1 Mobile Wireless Telephone Subscribers ………………………………………………. 11-4 Table 11.2 Mobile Wireless Telephone Subscribers …………………………………………………11-5 Table 11.3 Mobile Wireless Telephone Service: Industry Survey Results ………………………… 11-6 Table 11.4 Distribution of Residential Wireless Calls and Minutes ………………………………. 11-7 Table 11.5 Duration of Residential Wireless Calls: 2008 …………………………………………. 11-8 Table 11.6 Distribution of Residential Intrastate Wireless Minutes by Day and Time: 2006-2008 …11-9 Table 11.7 Distribution of Residential Interstate Wireless Minutes by Day and Time: 2006-2008 …11-10 iii Price Indices for Telephone Services …………………………………………………………12-1 Table 12.1 Long-Term Changes for Various Price Indices (Annual Rates of Change) …………… 12-3 Chart 12.1 CPI All Items and CPI Telephone Services …………………………………………… 12-3 Table 12.2 Annual Changes in Major Price Indices ………………………………………………… 12-4 Chart 12.2 Percent Change in CPI All Items and CPI Telephone Services ………………………… 12-4 Table 12.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services ……12-5 Chart 12.3 CPI Telephone Service Price Indices …………………………………………………… 12-5 Price Levels ……………………………………………………………………………………13-1 Table 13.1 Average Residential Rates for Local Service in Urban Areas: 1995-2007 ………………13-3 Table 13.2 Average Local Rates for Businesses with a Single Line In Urban Areas: 1995-2007 ……13-4 Table 13.3 Average Rate for a Residential Access Line …………………………………………… 13-5 Table 13.4 Average Revenue Per Minute …………………………………………………………… 13-6 Chart 13.1 Revenue Per Minute for Interstate Calls ……………………………………………….. 13-7 Residential Wireline Usage ………………………………………………………………… 14-1 Table 14.1 Distribution of Residential Wireline Toll Calls and Minutes ..………………………… 14-3 Table 14.2 Average Residential Wireline Monthly Toll Minutes ……………………………………14-3 Table 14.3 Distribution of Residential Wireline Long Distance Call Durations: 2008 ….………… 14-4 Table 14.4 Duration and Distance of Intrastate Toll Calls ………………………………………… 14-5 Table 14.5 Duration and Distance of Interstate Toll Calls ………………………….……………… 14-5 Table 14.6 Distribution of Residential Wireline Long Distance Minutes by Day and Time………… 14-6 Revenues ……………………………………………………………………………………… 15-1 Table 15.1 Telecommunications Industry Revenues …………………………………………………15-3 Chart 15.1 End-User Telecommunications Revenues ……………………………………………… 15-3 Table 15.2 Telecommunications Revenues Reported by Type of Service ………………...…………15-4 Table 15.3 Number of Interstate Telecommunications Providers By Principal Type of Business … 15-5 Table 15.4 Gross Revenues Reported by Type of Carrier ……………………………………………15-6 Table 15.5 Total Telecommunications Revenues by State ………………………………………… 15-7 Table 15.6 Telecommunications Revenues by State: 2007 ………………………………………… 15-8 Table 15.7 Telecommunications Revenues by Type of Service: 2007 ...…………………………… 15-9 Subscribership ………………………………………………………………………………. 16-1 Table 16.1 Household Telephone Subscribership in the United States ……………………………… 16-3 Table 16.2 Historical Telephone Penetration Estimates …………………………………………… 16-4 Table 16.3 Telephone Penetration by State: Households with Telephone Service ……...……………16-5 Table 16.4 Telephone Penetration by State: Houseing Units with Telephone Service ……...……… 16-6 Table 16.5 Telephone Penetration by Selected Characteristics ………………………………………16-7 iv Technology and Infrastructure…………………………………………………………………… 17-1 Table 17.1 Central Office Switches and Access Lines by Technology ……………………………. 17-5 Table 17.2 Switches by Metropolitan Statistical Area (MSA) and Non-MSA and Switches by Line Counts ……………………………………………………………………………. 17-6 Table 17.3 Local Transmission Technology (Bell Operating Companies) and Working Telecommunications Channels ………………………………………………… 17-7 Table 17.4 Central Offices Converted to Equal Access (As of February 1, 2010) …………….…… 17-8 Table 17.5 Broadband Capabilities of NECA's 2007 Rural Incumbent LEC Survey Respondents … 17-9 Chart 17.1 Telecommunications Patents …………………..…………………………..…………… 17-10 Table 17.6 Capital Expenditures for Structures and Equipment …………………………………… 17-11 Chart 17.2 Capital Expenditures for Structures and Equipment by Carriers ……………..………… 17-12 Telephone Numbers ……………………………………………………………………………… 18-1 Table 18.1 Geographic Telephone Number Utilization over Time…………………………………… 18-3 Table 18.2 Number Utilization by Carrier Type ……………………………………………………… 18-3 Table 18.3 Telephone Number Utilization by State ………………………………………………… 18-4 Table 18.4 Area Codes by State ……………………………………………………………………… 18-5 Table 18.5 Area Code Assignments ………………………………………………………………… 18-6 Table 18.6 Telephone Numbers Assigned for Toll-Free Service (800, 888, 877, 866) ……………… 18-8 Chart 18.1 Working Toll-Free Numbers .…………………………………………………………. 18-8 Table 18.7 Telephone Numbers Assigned for Toll-Free Service 800 Toll-Free Service ………...… 18-9 Table 18.8 Telephone Numbers Assigned for 888 Toll-Free Service ……………………………… 18-10 Table 18.9 Telephone Numbers Assigned for 877 Toll-Free Service ……………………………… 18-11 Table 18.10 Telephone Numbers Assigned for 866 Toll-Free Service ……………………………… 18-12 Table 18.11 Number of Digits Necessary to Dial Local and Toll Calls in the U.S. ………………… 18-13 Universal Service ……………………………………………………………………………….. 19-1 Table 19.1 Universal Service Support Mechanisms: 2007 & 2008 ………………………………… 19-5 Chart 19.1 Distribution of Universal Service Payments: 2008 ……………………………………… 19-5 Table 19.2 Universal Service Support Received by Service Provider: 2008 ………………………… 19-6 Chart 19.2 Universal Service Support Received by Service Provider: 2008 ………………………… 19-6 Table 19.3 High-Cost Support Fund Payment History ……………………………………………… 19-7 Chart 19.3 Total High-Cost Support Fund Payments ..……………………………………………… 19-7 Table 19.4 High-Cost Support Fund Payments by State: 2007 & 2008……………………………… 19-8 Table 19.5 High-Cost Support Received by Incumbent LECs and CETCs ……………………...……19-10 Chart 19.4 Percent of High-Cost Support Received by CETCs ………………………………………19-10 Table 19.6 High-Cost Support by Type of Carriers: 2008 ……………………………………………19-11 Table 19.7 Lifeline Monthly Support by State or Jurisdiction ………………………………………19-12 Table 19.8 Lifeline Subscribers and Link-Up Beneficiaries …….……………………………………19-13 Table 19.9 Lifeline Subscribers and Link-Up Beneficiaries by State or Jurisdiction: 2007 & 2008 …19-14 Table 19.10 Low-Income Support Payments ………………………………………………………… 19-16 Chart 19.5 Lifeline and Link-Up Support Payments …………………………………………………19-16 Table 19.11 Low-Income Support Payments by State or Jurisdiction: 2007 & 2008 …………………19-17 Table 19.12 Low-Income Support Received by ILECs and CETCs …………..………..…………… 19-19 Chart 19.6 Percent of Low-Income Support Received by CETCs ….…………………………………19-19 v Table 19.13 Schools and Libraries Funding by Type of Service …………………………………… 19-20 Chart 19.7 Total Schools and Libraries Funds Committed and Disbursed ……………….………… 19-20 Table 19.14 Schools and Libraries Funding by State and Type of Service …….…………………… 19-21 Table 19.15 Rural Health Care Fund Disbursements by Service Speed ………………………………19-22 Chart 19.8 Rural Health Care Fund Disbursements by Service Speed ………………………………19-22 Table 19.16 Rural Health Care Fund Disbursements by Service Speed and by State ……………… 19-23 Table 19.17 Universal Service Fund Contribution Factors …………………….…………………… 19-24 Table 19.18 Share of Universal Service Contributions by Principal Type of Contributor Using Traditional Carrier Categories …………………………………………………… 19-25 Chart 19.9 Share of Universal Service Contributions by Principal Type of Contributor …………… 19-26 Appendix A - List of Publications by the Industry Analysis and Technology Division ……… 20-A Appendix B - Sources of Telecommunications Information …………………………………… 21-A Appendix C - Contacting the Report Authors ………………………………………………… 22-A vi 1 - 1 Introduction Trends in Telephone Service is published by the Industry Analysis and Technology Division of the Federal Communication Commission’s Wireline Competition Bureau. 1 This report is designed to provide answers to some of the most frequently asked questions about the telephone industry -- questions asked by consumers, members of Congress, other government agencies, telecommunications carriers, and members of the business and academic communities. To this end, the report contains summary information about the size, growth, and development of the telephone industry, including data on market shares, minutes of calling, number of lines, and telephone subscribership. The report also provides information about access charges, advanced telecommunications, consumer expenditures for service, infrastructure, international telephone traffic, local telephone competition, telephone rates and price changes, toll service providers, and universal service support. Trends in Telephone Service summarizes a variety of information contained in other reports that are published periodically by the Industry Analysis and Technology Division. 2 In most cases, these other reports provide more detailed information than that provided here. These reports can be accessed from the Wireline Competition Bureau Statistical Reports Internet site, at www.fcc.gov/wcb/stats. In addition, to facilitate further information gathering by consumers and others, we have listed additional sources of information in Appendix B, and we have provided information on contacting the authors of this report in Appendix C. 1 Access Charges Long distance companies rely on the loops, switches, and transport facilities of local telephone companies for access to their customers. As a result, local telephone companies recover a portion of their costs from long distance companies accessing their networks. Both the manner in which these access charges have been assessed and the proportion of the costs they have recovered have varied considerably over time. In the early 1980s, AT&T provided about three-quarters of the nation's local telephone service and almost all interstate long distance service. Because revenue sharing was largely an internal process for AT&T, it was able to charge prices above true economic cost for long distance calls and share the revenues with local telephone companies. These transfers, while reducing the pressures on the local companies to raise monthly rates, contributed to inefficiently high long distance rates. The high rates were responsible for suppressing demand for long distance calls and inducing large corporations to bypass the public switched network. Moreover, while such revenue sharing arrangements were sustainable in an industry where one firm monopolized both long distance and local service, they were not compatible with a competitive 1 Trends in Telephone Service was last published in August 2008. 2 See Appendix A for a list of these publications. 1 - 2 long distance industry. In mid-1984 the FCC, in cooperation with a Federal-State Joint Board composed of both federal and state regulators, introduced sweeping changes in the way that local telephone companies charged for their services. The historic method of sharing revenues was replaced with a new system of access charges that provided a uniform method for local telephone companies to charge long distance carriers for the origination and termination of interstate traffic on their local networks. In addition, monthly subscriber line charges (SLCs) were introduced to recover a portion of the fixed costs of the local telephone companies’ loops directly from end users on a per-line basis. Since local telephone companies were required to reduce their charges to long distance carriers -- dollar for dollar -- as SLCs were introduced, the pricing changes reduced the implicit subsidy from long distance use to local service. The rebalancing of prices between local service and interstate long distance calls during the 1980s had a fundamental impact on the telephone industry as the price of long distance service fell and the volume of long distance calling surged. In mid-1997, as part of its implementation of the 1996 Telecommunications Act, the FCC introduced further interstate access charge reform. Prior to the 1997 reform, local carriers continued to recover part of their fixed costs in per-minute charges (from long distance carriers) and part from end users (in SLCs.) Presubscribed interexchange carrier charges (PICCs) were created in order to allow local carriers to recover the remaining portion of their fixed loop costs from long distance carriers on a per-line, instead of a per-minute, basis. As part of access charge reform in May of 2000, the FCC started to eliminate PICCs and consolidate them with SLCs. All price-cap local exchange carriers implemented lower access charges paid by long distance carriers. In October of 2001, the FCC modified its interstate access charge rules for rate-of-return incumbent local exchange carriers. These changes for the rate-of-return carriers were designed to align the interstate access rate structure more closely with the manner in which costs are incurred by driving per-minute access charges towards lower, more cost-based levels. Average monthly SLCs and PICCs are shown in Table 1.1, and average per-minute rates charged to long distance carriers are shown in Table 1.2. Both tables report historical averages for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Current per-line charges and per-minute charges are reported for each of the carriers in Tables 1.3 and 1.4, respectively. Table 1.1 Residential and Non-Primary Multiline Non-Primary Multiline From To Single-Line Residential Business Residential Business Business and Centrex 05/26/84 05/31/85 $0.00 $4.99 06/01/85 09/30/85 1.00 4.99 10/01/85 05/31/86 1.00 4.97 06/01/86 12/31/86 2.00 4.97 01/01/87 06/30/87 2.00 5.12 07/01/87 12/31/87 2.60 5.12 01/01/88 11/30/88 2.60 5.01 12/01/88 03/31/89 3.20 5.01 04/01/89 12/31/89 3.50 4.94 01/01/90 06/30/90 3.48 4.84 07/01/90 12/31/90 3.48 4.83 01/01/91 06/30/91 3.48 4.77 07/01/91 11/27/91 3.49 4.74 11/28/91 06/30/92 3.49 4.76 07/01/92 06/30/93 3.49 4.68 07/01/93 06/30/94 3.50 5.37 07/01/94 06/30/95 3.50 5.45 07/01/95 06/30/96 3.50 5.50 07/01/96 06/30/97 3.50 5.53 07/01/97 12/31/97 3.50 5.68 01/01/98 06/30/98 3.50 $4.98 6.92 $0.49 $1.50 $2.52 $0.35 07/01/98 12/31/98 3.50 4.99 7.11 0.49 1.38 2.38 0.38 01/01/99 06/30/99 3.50 5.88 7.05 0.49 1.38 2.22 0.32 07/01/99 12/31/99 3.50 5.84 6.94 0.95 1.77 2.78 0.42 01/01/00 06/30/00 3.50 5.81 6.94 0.92 1.70 2.44 0.35 08/11/00 06/30/01 4 4.28 5.99 6.88 0.00 0.00 2.30 0.37 07/01/01 12/31/01 4.78 6.66 0.00 0.00 1.35 0.22 01/01/02 06/30/02 4.92 6.79 0.00 0.00 1.35 0.22 07/01/02 06/30/03 5.62 6.45 0.00 0.00 0.48 0.08 07/01/03 06/30/04 5.96 6.37 0.00 0.00 0.20 0.04 07/01/04 06/30/05 5.92 6.24 0.00 0.00 0.19 0.05 07/01/05 06/30/06 5.92 6.26 0.00 0.00 0.21 0.04 07/01/06 06/30/07 5.91 6.27 0.00 0.00 0.23 0.04 07/01/07 06/30/08 5.93 6.30 0.00 0.00 0.23 0.05 07/01/08 06/30/09 5.90 6.27 0.00 0.00 0.22 0.05 07/01/09 06/30/10 5.88 6.21 0.00 0.00 0.18 0.04 Source: Access tariff filings. 2 Prior to 1/01/1998, carriers did not charge separate subscriber line charge (SLC) rates for primary and non-primary residential lines. Therefore, the residential and single-line business average SLCs reported prior to 1/01/1998 include all residential SLC charges. The average residential and single-line business SLC rate as of 1/01/98 excludes non-primary residential SLCs. Non-primary SLCs are now reported separately, except for the LECs in the NECA pool, which continue to charge a single residential SLC. Under price-cap regulation, as of 7/1/2003, the caps on SLCs for primary residential and single-line business, non-primary residential, and multiline business and Centrex lines equal $6.50, $7.00, and $9.20, respectively. For NECA pool companies, the residential SLC cap is $6.50, while the multiline business and Centrex SLC cap equals $9.20. 3 On 1/01/98, price-cap carriers began to charge presubscribed interexchange carrier charges (PICCs). The reported PICCs are averages per line including both price-cap and NECA pool lines. While carriers did not charge different rates for Centrex and multiline business SLCs, they did charge different PICC rates for these lines. Therefore, the average multiline business and Centrex PICC rates are reported separately. However, multiline business line counts, used to compute average PICC rates, include Centrex lines for LECs in the NECA pool, which do not charge PICCs or distinguish in access filings between the two line types. On 7/01/2000, residential and single-line business PICCs was eliminated. Since then the PICCs cap for multiline business lines equal $4.31 for price cap carriers. Centrex groups of 9 or fewer lines are capped at the multiline business PICC rate of $4.31 per group. Centrex groups with more than 9 lines are capped at $0.48 per line (1/9th the multiline business rate). 4 Although the charges took effect on 7/1/2000, some companies made adjustments to the tariffs which did not take effect until 8/11/2000. 5.81 5.75 1 This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. 5.78 Single-Line Business 5.83 5.81 5.88 5.93 5.93 5.94 5.85 Interstate Per-Line Access Charges 1 Rates in Effect Residential and (Subscriber Line Charges) Charged to End Users 2 Centrex Charged to Long Distance Carriers 3 (Presubscribed Interexchange Carrier Charges) 1 - 3 Table 1.2 Interstate Per-Minute Access Charges (National Average in Cents per Minute) 1 Total Charge per Conversation Minute 3 05/26/84 01/14/85 5.24 ข 5.24 ข 3.10 ข 17.26 ข 01/15/85 05/31/85 5.43 5.43 3.10 17.66 06/01/85 09/30/85 4.71 4.71 3.10 16.17 10/01/85 05/31/86 4.33 4.33 3.10 15.38 06/01/86 12/31/86 3.04 4.33 3.10 14.00 01/01/87 06/30/87 1.55 4.33 3.10 12.41 07/01/87 12/31/87 0.69 4.33 3.10 11.49 01/01/88 11/30/88 0.00 4.14 3.10 10.56 12/01/88 02/14/89 0.00 3.39 3.00 9.60 02/15/89 03/31/89 0.00 3.25 3.00 9.46 04/01/89 12/31/89 1.00 1.83 3.00 9.11 01/01/90 06/30/90 1.00 1.53 2.50 7.78 07/01/90 12/31/90 1.00 1.23 2.50 7.48 01/01/91 06/30/91 1.00 1.14 2.40 7.18 07/01/91 06/30/92 0.88 1.06 2.40 6.97 07/01/92 06/30/93 0.79 0.95 2.40 6.76 07/01/93 06/30/94 0.88 1.16 2.20 6.66 07/01/94 06/30/95 0.84 1.08 2.10 0.28 ข 6.89 07/01/95 06/30/96 0.74 0.89 1.96 0.21 6.16 07/01/96 06/30/97 0.72 0.89 1.95 0.17 6.04 07/01/97 12/31/97 0.64 0.84 1.63 0.14 5.18 01/01/98 06/30/98 0.68 0.23 1.29 0.21 4.04 07/01/98 12/31/98 0.91 0.20 0.99 0.30 3.82 01/01/99 06/30/99 0.82 0.16 0.98 0.32 3.71 07/01/99 12/31/99 0.37 0.10 0.86 0.28 2.82 01/01/00 06/30/00 0.32 0.10 0.86 0.31 2.85 08/11/00 06/31/00 4 0.23 0.07 0.52 0.26 1.91 07/01/01 12/31/01 0.15 0.07 0.48 0.24 1.71 01/01/02 06/30/02 0.15 0.07 0.47 0.24 1.69 07/01/02 06/30/03 0.02 0.01 0.48 0.22 1.46 07/01/03 06/30/04 0.00 0.00 0.48 0.22 1.44 07/01/04 06/30/05 0.00 0.00 0.50 0.25 1.53 07/01/05 06/30/06 0.00 0.00 0.52 0.25 1.59 07/01/06 06/30/07 0.01 0.00 0.54 0.25 1.63 07/01/07 06/30/08 0.01 0.00 0.56 0.26 1.71 07/01/08 06/30/09 0.01 0.00 0.63 0.24 1.80 07/01/09 06/30/10 0.00 0.00 0.64 0.26 1.85 Source: Access tariff filings. Rates in Effect From To Sensitive per Switched Interstate Charges for Switched Access Service Carrier Common Line per Originating Traffic Non-TrafficCarrier Common Line per Terminating Sensitive per Switched Access Minute 2 Minute 1 4 Although the charges took effect on 7/1/2000, some companies made adjustments to the tariffs which did not take effect until 8/11/2000. 1 This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. The average rates reported here do not include revenues from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), both of which are reported in Table 1.1. Effective 07/01/03, the carrier common line (CCL) rates for NECA carriers were eliminated. 2 Non-traffic-sensitive charges include charges assessed on a per-month, per-unit basis. Prior to 07/01/94, these charges were included in the average traffic-sensitive rates. 3 The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per originating access minute plus the traffic-sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non-traffic-sensitive charge per switched minute. Terminating charges per conversation minute equal carrier common line charges per terminating access minute plus both traffic-sensitive and non-traffic-sensitive charges per switched minute. Minute 1 MinuteAccess 1 - 4 Table 1.3 Interstate Per-Line Access Charges by Carrier (In Dollars per Month per Line) 1 Rates Effective from 07/01/09 to 06/30/10 Subscriber Line Charges PICC 2 2008 Average Monthly Access Lines 3 (Thousands) Company Residential Non-Primary Multiline Multiline Centrex Residential Non-Primary Multiline and Residential Business Business and Residential Business Single-Line and Single-Line and Business Centrex Business Centrex ACS $6.50 NA $9.20 $0.00 $0.00 49 0 24 Am้rica M๓vil 6.50 6.50 9.20 0.00 0.00 687 1 172 AT&T 5.47 5.26 5.41 0.00 0.00 31,552 3,570 17,938 CenturyTel 5.67 5.47 7.17 0.05 0.06 4,934 348 1,694 Cincinnati Bell 5.28 5.28 5.28 0.00 0.00 466 31 259 Consolidated 6.50 6.50 9.20 0.00 0.00 136 6 55 FairPoint 6.23 6.23 6.23 0.00 0.00 835 54 320 Frontier 6.17 6.53 9.20 3.87 0.74 1,288 58 436 Hawaiin Telecom 6.50 7.00 8.15 0.00 0.00 365 35 90 Iowa Telecom 5.89 5.89 8.09 0.00 0.00 155 5 43 Pacific Telecom Inc. 6.50 7.00 9.20 0.71 0.11 11 0 4 Qwest 5.99 6.20 6.38 0.00 0.00 6,619 636 2,731 Verizon 6.27 6.29 6.76 0.45 0.06 20,585 2,388 10,959 Windstream 6.29 6.46 7.50 0.12 1.32 1,523 224 534 Price Caps 5.83 5.75 6.11 0.19 0.04 69,205 7,358 35,260 NECA 6.50 NA 9.20 0.00 NA 4,788 NA 1,213 Price Caps and NECA $5.88 $5.75 $6.21 $0.18 $0.04 73,993 7,358 36,472 NA - Not Applicable. Source: Access tariff filings. 3 Access line counts measure lines that companies report as qualified to receive subscriber line charges (SLCs). ISDN-BRI lines, which are charged non-primary SLC and PICC rates, are included in the non-primary residential line counts. ISDN-PRI lines, which are charged rates equal to five times the multiline business SLC and PICC rates, are multiplied by five and added to multiline business counts. 1 This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. For example, non- primary residential SLCs can be less than primary residential SLCs due to weighting by access lines. Note that at the disaggregated level, non-primary rates are always greater than or equal to primary rates. The primary line rate is weighted by the number of primary residential lines and the non-primary residential rate is similarly weighted by the number of non-primary access lines. Because the weight on primary lines versus non-primary lines is not constant, the primary rate is not necessarily lower than the non-primary rate at the holding company level. No information is available for those carriers that are not in the NECA pool, but are subject to rate-of- return regulation. 2 PICC is an abbreviation for Presubscribed Interexchange Carrier Charge. 1 - 5 Table 1.3 Interstate Per-Line Access Charges by Carrier -- Continued (In Dollars per Month per Line) 1 Rates Effective from 07/01/08 to 06/30/09 Subscriber Line Charges PICC 2 2007 Average Monthly Access Lines 3 (Thousands) Company Residential Non-Primary Multiline Multiline Centrex Residential Non-Primary Multiline and Residential Business Business and Residential Business Single-Line and Single-Line and Business Centrex Business Centrex Am้rica M๓vil $6.50 $6.50 $9.20 $0.00 $0.00 777 2 193 AT&T 5.48 5.30 5.45 0.00 0.00 34,451 4,099 18,699 CenturyTel 4 6.37 6.58 7.55 0.82 1.19 407 17 116 Cincinnati Bell 5.27 5.27 5.27 0.00 0.00 522 36 260 Consolidated 6.50 6.50 9.20 0.00 0.00 148 8 57 Embarq 5.66 5.55 6.95 0.00 0.00 4,349 375 1,502 FairPoint 6.25 6.25 6.25 0.00 0.00 930 72 333 Frontier 6.47 6.95 9.20 4.27 0.79 1,171 57 365 Hawaiian Telecom 6.50 7.00 8.15 0.00 0.00 405 39 94 Iowa Telecom 6.16 6.16 8.41 0.00 0.00 168 6 46 Pacific Telecom Inc. 6.50 7.00 9.20 1.33 0.20 15 1 3 Qwest 6.02 6.26 6.53 0.00 0.00 7,322 755 2,863 Verizon 6.29 6.31 6.80 0.55 0.07 22,306 2,804 11,703 Windstream 6.36 6.48 7.69 0.50 0.73 1,566 93 583 Price Caps 5.85 5.78 6.15 0.23 0.05 74,538 8,364 36,817 NECA 6.50 NA 9.14 0.00 NA 6,388 NA 1,621 Price Caps and NECA $5.90 $5.78 $6.27 $0.22 $0.05 80,926 8,364 38,437 NA - Not Applicable. 4 Data reflect only those company study areas subject to price-cap regulation. Source: Access tariff filings. 3 Access line counts measure lines that companies report as qualified to receive subscriber line charges (SLCs). ISDN-BRI lines, which are charged non-primary SLC and PICC rates, are included in the non-primary residential line counts. ISDN-PRI lines, which are charged rates equal to five times the multiline business SLC and PICC rates, are multiplied by five and added to multiline business counts. 1 This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. For example, non- primary residential SLCs can be less than primary residential SLCs due to weighting by access lines. Note that at the disaggregated level, non-primary rates are always greater than or equal to primary rates. The primary line rate is weighted by the number of primary residential lines and the non-primary residential rate is similarly weighted by the number of non-primary access lines. Because the weight on primary lines versus non-primary lines is not constant, the primary rate is not necessarily lower than the non-primary rate at the holding company level. No information is available for those carriers that are not in the NECA pool, but are subject to rate-of- return regulation. 2 PICC is an abbreviation for Presubscribed Interexchange Carrier Charge. 1 - 6 Table 1.4 Interstate Per-Minute Access Charges by Carrier (In Cents per Minute) 1 Rates Effective from July 1, 2009 to June 30, 2010 Year 2008 Carrier Local Common Switching Line per Minutes of Company Originating Use Access (Millions) Minute ACS 0.00 ข 0.00 ข 0.56 ข 0.12 ข 1.39 ข 236 Am้rica M๓vil 0.00 0.00 0.90 0.22 2.29 2,029 AT&T 0.00 0.00 0.49 0.24 1.50 135,647 CenturyTel 0.01 0.00 0.85 0.21 2.18 20,102 Cincinnati Bell 0.00 0.00 0.66 0.55 2.47 2,170 Consolidated 0.00 0.00 1.33 0.35 3.46 456 FairPoint 0.00 0.00 0.51 0.28 1.62 3,421 Frontier 0.19 0.00 0.50 0.58 2.40 4,567 Hawaiian Telecom 0.00 0.00 0.63 0.38 2.06 996 Iowa Telecom 0.00 0.00 1.48 0.78 4.62 445 Pacific Telecom Inc. 0.00 0.00 0.49 0.17 1.35 48 Qwest 0.00 0.00 0.79 0.20 2.03 30,733 Verizon 0.00 0.00 0.55 0.26 1.64 86,668 Windstream 0.00 0.00 0.62 0.25 1.78 6,084 Price Caps 0.00 0.00 0.57 0.25 1.69 293,601 NECA 0.00 0.00 2.30 0.47 5.71 12,355 All Price Caps and NECA 0.00 0.00 0.64 0.26 1.85 305,956 Source: Access tariff filings. Minute 3 The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per originating access minute plus the traffic-sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non-traffic-sensitive charge per switched minute. Terminating charges per conversation minute equal carrier common line charges per terminating access minute plus both traffic-sensitive and non-traffic-sensitive charges per switched minute. 2 Non-traffic sensitive charges include charges assessed on a per-month, per-unit basis. Access Minute 2 Access Minute 1 This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. No information is available for those carriers that are not in the NECA pool, but are subject to rate-of-return regulation. The average rates reported here do not include the average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), both of which are reported in Table 1.1. Access Conversation Minute 3 Carrier Common Line per Terminating Total per SwitchedSwitched Traffic Charge per Sensitive Non-Traffic Sensitive per 1 - 7 Table 1.4 Interstate Per-Minute Access Charges by Carrier -- Continued (In Cents per Minute) 1 Rates Effective from July 1, 2008 to June 30, 2009 Year 2007 Carrier Local Common Switching Line per Minutes of Company Originating Use Access (Millions) Minute Am้rica M๓vil 0.00 ข 0.00 ข 0.97 ข 0.28 ข 2.56 ข 2,210 AT&T 0.00 0.00 0.49 0.24 1.50 147,141 CenturyTel 4 0.10 0.00 0.49 0.28 1.69 1,638 Cincinnati Bell 0.00 0.00 0.63 0.46 2.24 2,553 Consolidated 0.00 0.00 1.29 0.40 3.47 470 Embarq 0.00 0.00 0.89 0.18 2.20 18,574 FairPoint 0.00 0.00 0.48 0.27 1.53 3,989 Frontier 0.28 0.01 0.49 0.53 2.39 4,212 Hawaiian Telecom 0.00 0.00 0.60 0.48 2.20 1,221 Iowa Telecom 0.00 0.00 1.63 0.82 5.00 485 Pacific Telecom Inc. 0.00 0.00 0.54 0.14 1.40 51 Qwest 0.00 0.00 0.77 0.18 1.95 33,755 Verizon 0.02 0.00 0.52 0.23 1.57 100,522 Windstream 0.00 0.00 0.56 0.25 1.66 6,101 Price Caps 0.01 0.00 0.56 0.23 1.64 322,923 NECA 0.00 0.00 2.06 0.39 5.04 15,125 All Price Caps and NECA 0.01 0.00 0.63 0.24 1.80 338,049 4 Data reflect only those company study areas subject to price-cap regulation. Source: Access tariff filings. per SwitchedSwitched Traffic Sensitive 1 This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. No information is available for those carriers that are not in the NECA pool, but are subject to rate-of-return regulation. The average rates reported here do not include the average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), both of which are reported in Table 1.1. Access Minute Conversation Minute 3 Minute Carrier Common Line per Terminating 3 The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per originating access minute plus the traffic-sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non-traffic-sensitive charge per switched minute. Terminating charges per conversation minute equal carrier common line charges per terminating access minute plus both traffic-sensitive and non-traffic-sensitive charges per switched minute. Non-Traffic Sensitive per Total Charge per 2 Non-traffic sensitive charges include charges assessed on a per-month, per-unit basis. Access Minute 2 Access 1 - 8 2 - 1 2 Advanced Telecommunications Congress directed the Commission and the states, in section 706 of the Telecommunications Act of 1996, to encourage deployment of advanced telecommunications capability in the United States on a reasonable and timely basis. To assist in its evaluation of such deployment, in 2000 the Commission instituted a formal data collection program (FCC Form 477), which gathers standardized information about subscribership to high-speed Internet access services from telephone companies, cable system operators, terrestrial wireless service providers, satellite service providers, and any other facilities-based providers of advanced telecommunications capability. For reporting purposes, “high-speed” Internet access connections are faster than 200 kilobits per second (kbps) in at least one direction. From June 2005 onward, all facilities-based providers of high-speed connections have been required to report to the Commission basic information about their service offerings and types of customers. (Data for semiannual reporting dates from December 1999 through December 2004 were required from facilities-based providers with at least 250 high-speed connections in service in a particular state. Small providers, many of whom serve rural areas with relatively small populations, were therefore underrepresented in the earlier data. However, as of June 2005, filers with fewer than 250 connections in a state, including entities that previously filed on a voluntary basis, represented only about 0.2% of total reported high-speed connections.) Also starting with the June 2005 data, incumbent local exchange carriers (LECs) and cable system operators must report the extent to which their digital subscriber line (DSL) or cable modem high-speed connections are available to the households to whom they offer local telephone service or cable TV service – that is, available whether or not the household actually subscribes to a high-speed Internet access service. From December 2008 onward, all facilities-based providers report connections in accordance with 72 upload and download transmission speed categories. 1 Table 2.1 shows high-speed connections in service at semiannual reporting dates between June 2005 and December 2008 for the following types of technology: asymmetric digital subscriber line (aDSL), symmetric digital subscriber line (sDSL), other wireline, cable modem, fiber to the premises, satellite, fixed wireless, power line and other, and mobile wireless. Chart 2.1 shows the growth of high-speed connections from June 2005 through December 2008. (The drop in the reported number of mobile wireless connections between June 2008 and December 2008 is explained in the notes that follow Table 2.8.) Chart 2.2 shows the proportion of high- speed connections by technology as of December 31, 2008. Table 2.2 shows residential high-speed connections by the above technologies. Chart 2.3 shows the growth of residential high-speed connections from June 2005 through December 2008, 1 From December 2008 onward, facilities-based providers of fixed-location high-speed Internet access connections also report the number of connections in service at the census tract level of detail as well as at the state level. For additional information, see Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). 2 - 2 and Chart 2.4 shows the proportion of residential high-speed connections by technology as of December 31, 2008. Table 2.3 shows high-speed connections by speed tier and Table 2.4 shows residential high- speed connections by speed tier as of December 31, 2008. Table 2.5 shows high-speed connections, by state and by technology, as of December 31, 2008. Table 2.6 shows the percentage of high-speed connections above 200 kbps in both directions, by state and by download speed, as of December 31, 2008. Table 2.7 provides nationwide and state-specific estimates of the extent to which DSL high- speed connections provided by incumbent LECs, and cable modem high-speed service provided by cable system operators, are available to the households to whom these companies offer local telephone service or cable TV service. Table 2.8 shows residential fixed-location high-speed connections and households by state as of December 31, 2008, and the ratio of the two. The U.S. Department of Commerce periodically has asked the U.S. Census Bureau to include questions on whether households have telephones, computers, and Internet access as part of the Current Population Survey. Chart 2.5 shows the percent of U.S. households with computers, Internet access, and high-speed access as reported in those surveys. Table 2.9 and Chart 2.6 show the percent of U.S. households with Internet access for rural and urban areas, and the proportion that have Internet access over a high-speed connection. Table 17.5, appearing in section 17 of this report, presents broadband capabilities of small, mostly rural telephone companies based upon a periodic survey conducted by the National Exchange Carrier Association (NECA). 2 - 3 3 Table 2.1 High-Speed Connections 2005-2008 (Connections over 200 kbps in at least one direction, in thousands) 2005 2006 2007 2008 Technology Jun Dec Jun Dec Jun Dec Jun Dec Total 42,518 50,930 64,992 82,525 100,986 121,222 132,814 102,043 Total Fixed 42,138 47,803 53,975 60,238 65,681 70,206 73,123 76,926 aDSL 16,316 19,515 22,584 25,413 27,793 29,449 29,964 30,190 sDSL 412 369 337 345 320 293 275 245 Other Wireline 487 373 472 545 622 605 665 711 Cable Modem 24,017 26,558 29,173 31,982 34,404 36,507 38,190 41,468 FTTP 1 316 298 547 894 1,281 1,849 2,346 2,881 Satellite 377 427 495 572 669 791 869 938 Fixed Wireless 209 257 361 483 587 707 808 488 Power Line and Other 5 5 5 5 5 5 5 5 Mobile Wireless 2 380 3,128 11,017 22,288 35,305 51,016 59,691 25,117 1 Fiber to the premises. 2 Reporting instructions for mobile wireless changed between the June 2008 and December 2008 data. See additional notes following Table 2.8. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). C o n n e c t i o n s i n T h o u sa n d s 40,000 50,000 60,000 70,000 80,000 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Chart 2.1 Fixed High-Speed Connections 2005-2008 Chart 2.2 High-Speed Connections by Technology as of December 31, 2008 aDSL 29.6% FTTP 2.8% Cable Modem 40.6% Satellite 0.9% Mobile Wireless 24.6% All Other 1.4% 2 - 4 4 Table 2.2 Residential High-Speed Connections 2005-2008 (Connections over 200 kbps in at least one direction, in thousands) 2005 2006 2007 2008 Technology Jun Dec Jun Dec Jun Dec Jun Dec Total 38,696 43,965 50,941 58,344 66,173 73,984 79,090 85,966 Total Fixed 38,694 43,956 49,784 55,652 60,628 64,875 67,554 70,148 aDSL 14,443 17,371 20,152 22,768 24,962 26,475 26,950 26,481 sDSL 154 122 103 105 105 82 81 74 Other Wireline 6 7 9 13 12 17 32 42 Cable Modem 23,578 25,714 28,388 31,118 33,336 35,341 36,901 39,788 FTTP 1 83 213 444 764 1,153 1,683 2,139 2,715 Satellite 265 320 382 456 530 626 705 630 Fixed Wireless 161 203 301 424 523 644 741 413 Power Line and Other 4 5 5 5 5 5 5 5 Mobile Wireless 2 3 9 1,157 2,692 5,545 9,109 11,536 15,818 1 Fiber to the premises. 2 Reporting instructions for mobile wireless changed between the June 2008 and December 2008 data. See additional notes following Table 2.8. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). C o n n e c t i o n s i n T h o u sa n d s 30,000 40,000 50,000 60,000 70,000 80,000 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 Chart 2.3 Residential Fixed High-Speed Connections 2005-2008 Chart 2.4 Residential High-Speed Connections by Technology as of December 31, 2008 aDSL 30.8% FTTP 3.2% Cable Modem 46.3% Mobile Wireless 18.4% All Other 1.4% 2 - 5 5 Table 2.3 Total High-Speed Connections by Speed Tier as of December 31, 2008 (Connections in thousands) 200 kbps or less Upstream Over 200 kbps Upstream Technology Download over 200 kbps and less than 768 kbps Download at least 768 kbps Subtotal Download over 200 kbps and less than 768 kbps Download at least 768 kbps and less than 1.5 mbps Download at least 1.5 mbps and less than 3 mbps Download at least 3 mbps and less than 6 mbps Download at least 6 mbps and less than 10 mbps Download at least 10 mbps and less than 25 mbps Download at least 25 mbps Subtotal Total aDSL 1,174 2,455 3,628 2,080 5,969 9,252 8,357 769 135 # 26,562 30,190 sDSL 0 0 0 110 80 * 4 # * # 245 245 Other Wireline 0 0 0 110 88 392 62 22 16 22 711 711 Cable Modem 446 607 1,053 331 1,171 1,696 5,756 21,967 9,373 121 40,415 41,468 FTTP 5 1 6 19 40 79 697 37 1,970 34 2,876 2,881 Satellite 499 329 828 * * * * 0 0 0 110 938 Fixed Wireless 70 22 92 101 109 123 45 9 9 1 397 488 Mobile Wireless 7,576 2,996 10,572 4,296 8,364 1,747 138 0 0 0 14,545 25,117 Power Line and Other 0 0 0 * * * * 0 * 0 5 5 Total 9,769 6,409 16,178 7,052 15,839 13,428 15,060 22,804 11,503 178 85,865 102,043 Percentages aDSL 3.9 8.1 12.0 6.9 19.8 30.6 27.7 2.5 0.4 0.0 88.0 100.0 sDSL 0.0 0.0 0.0 44.9 32.5 * 1.6 0.0 * 0.0 100.0 100.0 Other Wireline 0.0 0.0 0.0 15.5 12.3 55.1 8.7 3.1 2.2 3.1 100.0 100.0 Cable Modem 1.1 1.5 2.5 0.8 2.8 4.1 13.9 53.0 22.6 0.3 97.5 100.0 FTTP 0.2 0.0 0.2 0.7 1.4 2.7 24.2 1.3 68.4 1.2 99.8 100.0 Satellite 53.2 35.0 88.3 * * * * 0.0 0.0 0.0 11.7 100.0 Fixed Wireless 14.2 4.5 18.7 20.8 22.3 25.2 9.2 1.9 1.8 0.2 81.3 100.0 Mobile Wireless 30.2 11.9 42.1 17.1 33.3 7.0 0.5 0.0 0.0 0.0 57.9 100.0 Power Line and Other 0.0 0.0 0.0 * * * * 0.0 * 0.0 100.0 100.0 Total 9.6 6.3 15.9 6.9 15.5 13.2 14.8 22.3 11.3 0.2 84.1 100.0 # = Rounds to Zero. * = Data withheld to maintain firm confidentiality. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). 2 - 6 6 Table 2.4 Residential High-Speed Connections by Speed Tier as of December 31, 2008 (Connections in thousands) 200 kbps or less Upstream Over 200 kbps Upstream Technology Download over 200 kbps and less than 768 kbps Download at least 768 kbps Subtotal Download over 200 kbps and less than 768 kbps Download at least 768 kbps and less than 1.5 mbps Download at least 1.5 mbps and less than 3 mbps Download at least 3 mbps and less than 6 mbps Download at least 6 mbps and less than 10 mbps Download at least 10 mbps and less than 25 mbps Download at least 25 mbps Subtotal Total aDSL 1,094 2,348 3,442 1,876 5,466 7,912 7,045 627 113 # 23,039 26,481 sDSL 0 0 0 37 22 * 1 # * 0 74 74 Other Wireline 0 0 0 4 20 8 1 8 # # 42 42 Cable Modem 415 595 1,010 317 1,111 1,553 5,353 21,355 9,020 70 38,779 39,788 FTTP 4 1 5 14 31 54 678 31 1,885 16 2,710 2,715 Satellite 354 203 557 * * * * 0 0 0 73 630 Fixed Wireless 63 20 84 86 90 104 35 7 7 # 330 413 Mobile Wireless 4,709 1,828 6,537 2,928 5,079 1,156 119 0 0 0 9,281 15,818 Power Line and Other 0 0 0 * * * * 0 * 0 5 5 Total 6,639 4,995 11,634 5,267 11,835 10,857 13,232 22,027 11,028 86 74,333 85,966 Percentages aDSL 4.1 8.9 13.0 7.1 20.6 29.9 26.6 2.4 0.4 0.0 87.0 100.0 sDSL 0.0 0.0 0.0 49.6 29.6 * 1.2 0.0 * 0.0 100.0 100.0 Other Wireline 0.0 0.0 0.0 9.0 48.4 19.8 3.4 18.9 0.6 0.0 100.0 100.0 Cable Modem 1.0 1.5 2.5 0.8 2.8 3.9 13.5 53.7 22.7 0.2 97.5 100.0 FTTP 0.2 0.0 0.2 0.5 1.2 2.0 25.0 1.2 69.5 0.6 99.8 100.0 Satellite 56.1 32.2 88.3 * * * * 0.0 0.0 0.0 11.7 100.0 Fixed Wireless 15.3 4.9 20.2 20.8 21.7 25.3 8.5 1.7 1.8 0.1 79.8 100.0 Mobile Wireless 29.8 11.6 41.3 18.5 32.1 7.3 0.8 0.0 0.0 0.0 58.7 100.0 Power Line and Other 0.0 0.0 0.0 * * * * 0.0 * 0.0 100.0 100.0 Total 7.7 5.8 13.5 6.1 13.8 12.6 15.4 25.6 12.8 0.1 86.5 100.0 # = Rounds to Zero. * = Data withheld to maintain firm confidentiality. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). 2 - 7 7 Table 2.5 High-Speed Connections by Technology by State as of December 31, 2008 (Connections over 200 kbps in at least one direction, in thousands) State ADSL SDSL Other Wireline Cable Modem Fiber Satellite Fixed Wireless Mobile Wireless Power Line and Other Total Alabama 457 4 9 460 3 * 1 281 * 1,235 Alaska 75 4 # * # * 4 43 0 224 American Samoa * * 0 0 0 0 * 0 0 * Arizona 466 2 * 987 2 * 20 522 0 2,033 Arkansas 273 # * 248 1 * 1 178 0 723 California 4,617 22 * 3,994 315 * 23 3,494 0 12,649 Colorado 624 2 * 659 3 * 28 461 0 1,816 Connecticut * 2 5 615 2 * * 338 0 1,402 Delaware * # 4 * * * 0 77 0 330 District of Columbia * 2 4 * 1 * * 181 0 375 Florida 2,005 5 * 2,825 247 * 5 1,542 0 6,729 Georgia 1,242 2 * 973 16 * # 773 0 3,065 Guam * * * * 0 0 0 * 0 25 Hawaii * * 1 * 1 * * 146 0 498 Idaho 160 1 * 121 1 * 21 133 0 448 Illinois 1,503 9 * 1,591 5 * 37 1,057 0 4,265 Indiana 672 4 9 626 55 * 24 384 * 1,796 Iowa 336 3 * 330 9 * 25 115 0 837 Kansas 243 1 * 425 13 * 16 207 0 924 Kentucky 421 7 * 452 4 * 3 246 0 1,154 Louisiana 385 1 * 518 19 * 2 395 0 1,346 Maine 114 4 1 288 1 * * 40 0 454 Maryland 471 7 24 799 * * # 595 0 2,193 Massachusetts * 3 17 1,307 * * 1 566 0 2,600 Michigan 779 8 16 1,411 4 * 17 606 * 2,881 Minnesota 544 30 * 666 14 * 20 357 0 1,662 Mississippi 229 # * 216 1 * # 142 0 614 Missouri 727 1 13 553 4 * 12 364 * 1,711 Montana 108 3 1 92 1 * 13 * 0 320 Nebraska 151 1 * 278 2 * 16 152 0 607 2 - 8 8 Table 2.5 - Continued High-Speed Connections by Technology by State as of December 31, 2008 (Connections over 200 kbps in at least one direction, in thousands) State ADSL SDSL Other Wireline Cable Modem Fiber Satellite Fixed Wireless Mobile Wireless Power Line and Other Total Nevada 222 1 8 * 1 * 7 257 0 918 New Hampshire 91 2 3 298 * * # 85 0 499 New Jersey 666 4 26 1,637 * * * 903 0 3,517 New Mexico 231 # * 146 1 * 15 141 0 546 New York 1,122 17 38 4,139 * * 3 1,708 0 7,405 North Carolina 891 1 * 1,551 5 * 1 701 0 3,203 North Dakota 62 1 * 85 10 * 5 41 0 206 Northern Mariana Isl * 0 * * * 0 * * 0 * Ohio 1,069 9 15 1,943 6 * 20 816 * 3,910 Oklahoma 337 1 * 408 4 * 8 239 0 1,022 Oregon 371 11 * 516 54 * 7 267 0 1,252 Pennsylvania 1,232 12 23 1,807 * * 1 871 0 4,225 Puerto Rico * * 3 * # * * 126 0 464 Rhode Island * 1 2 * * * * 81 0 378 South Carolina 400 # 10 752 14 * * 313 0 1,501 South Dakota 54 3 # 122 9 * 7 * 0 246 Tennessee 542 1 * 717 28 * 2 452 0 1,784 Texas 2,607 9 * 2,081 258 * 37 2,349 0 7,484 Utah 299 4 6 * 5 * 30 189 0 762 Vermont 61 * 1 71 * * * * 0 168 Virgin Islands * * * 0 0 * * * 0 21 Virginia 553 3 30 1,096 252 * 9 901 * 2,887 Washington 599 7 16 980 37 * 11 682 * 2,357 West Virginia 152 * 3 205 # * 1 80 0 452 Wisconsin 556 16 5 810 5 * 15 306 * 1,739 Wyoming 57 2 * 64 # * 3 43 0 175 Total 30,190 245 711 41,468 2,881 938 488 25,117 5 102,043 # = Rounds to Zero. * = Data withheld to maintain firm confidentiality. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). 2 - 9 9 Table 2.6 Percentage of High-Speed Connections by Download Speed by State as of December 31, 2008 (Connections over 200 kbps in at least one direction) Over 200 kbps Upstream and State % Over 200 kbps Downstream % at least 768 kbps Downstream % at least 3 mbps Downstream % at least 6 mbps Downstream % at least 10 mbps Downstream Alabama 82.3 76.1 44.3 17.9 4.3 Alaska 76.0 58.9 * * * American Samoa * * * * * Arizona 85.3 76.3 43.2 37.6 13.5 Arkansas 82.7 76.6 * * * California 86.2 78.3 40.5 19.7 3.9 Colorado 87.8 77.5 44.5 39.0 1.5 Connecticut 87.9 80.8 46.5 37.5 * Delaware 82.5 75.6 * * * District of Columbia 62.6 55.7 39.6 22.6 5.0 Florida 86.0 82.2 51.8 40.3 8.6 Georgia 81.8 76.7 43.8 23.7 1.8 Guam * * * * * Hawaii 92.5 88.3 60.5 * * Idaho 81.6 72.4 35.1 * * Illinois 87.9 79.6 43.0 31.9 7.5 Indiana 84.3 76.2 45.8 32.6 13.9 Iowa 87.0 74.6 46.5 * * Kansas 83.3 77.0 42.8 33.7 3.8 Kentucky 88.5 76.7 49.3 31.2 26.2 Louisiana 85.3 81.7 39.0 * * Maine 86.0 82.9 69.4 57.6 4.0 Maryland 78.3 72.1 59.0 40.2 11.7 Massachusetts 81.5 76.4 65.2 46.9 11.0 Michigan 85.6 78.8 48.3 32.6 * Minnesota 85.9 77.3 45.1 31.1 3.9 Mississippi 85.4 76.2 * * * Missouri 85.4 77.4 36.6 16.8 5.2 Montana 72.9 57.9 31.7 * * Nebraska 81.5 71.1 45.2 * * 2 - 10 10 Table 2.6 - Continued Percentage of High-Speed Connections by Download Speed by State as of December 31, 2008 (Connections over 200 kbps in at least one direction) Over 200 kbps Upstream and State % Over 200 kbps Downstream % at least 768 kbps Downstream % at least 3 mbps Downstream % at least 6 mbps Downstream % at least 10 mbps Downstream Nevada 88.8 83.0 44.3 30.4 6.6 New Hampshire 81.1 75.7 66.8 54.6 3.7 New Jersey 80.9 75.6 64.0 53.4 35.1 New Mexico 81.1 70.3 * * * New York 83.1 79.1 65.5 56.4 55.6 North Carolina 81.0 76.6 53.1 38.0 4.1 North Dakota 85.0 75.3 * * * Northern Mariana Isl * * * * * Ohio 80.7 74.0 48.8 37.2 4.5 Oklahoma 90.2 84.8 40.2 28.0 3.0 Oregon 87.3 79.4 51.1 39.2 5.3 Pennsylvania 79.9 73.5 57.1 37.5 8.9 Puerto Rico 94.5 69.6 * * * Rhode Island 85.5 80.9 * * * South Carolina 80.2 75.9 54.9 33.1 3.5 South Dakota 81.0 72.6 * * * Tennessee 81.2 73.5 46.6 29.0 2.9 Texas 86.3 78.1 37.6 24.3 5.2 Utah 88.6 78.5 39.5 33.2 2.9 Vermont 74.0 68.9 * * * Virgin Islands 55.9 13.6 0.1 0.1 0.0 Virginia 78.8 69.5 52.6 38.0 21.5 Washington 85.7 78.5 48.0 40.6 4.8 West Virginia 83.5 75.8 * * * Wisconsin 87.8 81.2 50.3 27.8 6.4 Wyoming 82.9 68.2 * * * Total 84.1 77.2 48.6 33.8 11.4 * = Data withheld to maintain firm confidentiality. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). 2 - 11 11 Table 2.7 Percentage of Residential End-User Premises with Access to High-Speed Services by State as of December 31, 2008 (Connections over 200 kbps in at least one direction) State xDSL Availability Where ILECs Offer Local Telephone Service Cable Modem Availability Where Cable Systems Offer Cable TV Service Alabama 80 92 Alaska 79 * American Samoa * 0 Arizona 86 93 Arkansas 78 72 California 89 98 Colorado 89 96 Connecticut * 100 Delaware * * District of Columbia * * Florida 92 97 Georgia 96 90 Guam * * Hawaii * * Idaho 80 99 Illinois 86 97 Indiana 81 94 Iowa 87 91 Kansas 84 95 Kentucky 86 93 Louisiana 84 97 Maine 73 96 Maryland 76 95 Massachusetts * 100 Michigan 74 91 Minnesota 88 97 Mississippi 76 91 Missouri 81 95 Montana 80 80 Nebraska 87 94 Nevada 90 * New Hampshire 63 98 New Jersey 88 100 New Mexico 87 80 New York 79 99 North Carolina 89 96 North Dakota 87 92 Northern Mariana Isl * * Ohio 85 98 Oklahoma 80 89 Oregon 83 96 Pennsylvania 85 98 Puerto Rico * * Rhode Island * * South Carolina 85 93 South Dakota 83 87 Tennessee 84 98 Texas 81 96 Utah 90 * Vermont 72 91 Virgin Islands * 0 Virginia 69 96 Washington 84 95 West Virginia 66 88 Wisconsin 83 96 Wyoming 78 85 Total 84 96 * = Data withheld to maintain firm confidentiality. Figures are presented to the nearest percent. Note: This table summarizes responses to Form 477 questions about service availability based on filers’ best estimates, as opposed to subscribership. xDSL includes both asymmetric and symmetric DSL. Each state-specific estimate is a weighted average of the availability percentages that ILECs or cable system operators report for the areas they serve. Reported xDSL availability is weighted by ILEC end-user switched access lines and VoIP lines. Reported cable modem availability is weighted by cable TV subscribers. The weighted averages include ILECs or cable system operators that report no availability. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). 2 - 12 12 Table 2.8 Residential Fixed High-Speed Connections and Households by State as of December 31, 2008 (Connections over 200 kbps in at least one direction and Households, in thousands) State Connections Households Subscribership Ratio Alabama 861 1,821 0.47 Alaska 155 248 0.62 American Samoa * 9 * Arizona 1,403 2,436 0.58 Arkansas 487 1,119 0.44 California 8,311 12,646 0.66 Colorado 1,230 1,886 0.65 Connecticut 973 1,362 0.71 Delaware 236 337 0.70 District of Columbia 170 263 0.65 Florida 4,697 7,436 0.63 Georgia 2,062 3,628 0.57 Guam * 39 * Hawaii * 450 * Idaho 283 562 0.50 Illinois 2,943 4,775 0.62 Indiana 1,299 2,457 0.53 Iowa 654 1,180 0.55 Kansas 648 1,077 0.60 Kentucky 829 1,687 0.49 Louisiana 851 1,609 0.53 Maine 392 540 0.73 Maryland 1,461 2,140 0.68 Massachusetts 1,892 2,493 0.76 Michigan 2,081 3,869 0.54 Minnesota 1,188 2,011 0.59 Mississippi 418 1,076 0.39 Missouri 1,220 2,323 0.53 Montana 192 385 0.50 Nebraska 411 698 0.59 Nevada 603 1,015 0.59 New Hampshire 389 514 0.76 New Jersey 2,408 3,202 0.75 New Mexico 365 748 0.49 New York 5,260 7,297 0.72 North Carolina 2,277 3,617 0.63 North Dakota 146 255 0.57 Northern Mariana Isl * 14 * Ohio 2,844 4,495 0.63 Oklahoma 701 1,423 0.49 Oregon 890 1,489 0.60 Pennsylvania 3,113 4,831 0.64 Puerto Rico 301 1,262 0.24 Rhode Island 274 418 0.66 South Carolina 1,084 1,721 0.63 South Dakota 176 310 0.57 Tennessee 1,197 2,455 0.49 Texas 4,655 8,730 0.53 Utah 518 858 0.60 Vermont 135 247 0.55 Virgin Islands 14 41 0.34 Virginia 1,824 3,003 0.61 Washington 1,533 2,533 0.61 West Virginia 343 737 0.47 Wisconsin 1,310 2,200 0.60 Wyoming 112 206 0.54 Total 70,148 116,181 0.60 # = Rounds to Zero; * = Data withheld to maintain firm confidentiality. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for Internet Access: Status as of December 31, 2008 (February 2010). 2 - 13 Notes for Tables 2.1 – 2.8 and Charts 2.1 – 2.4 General Figures may not sum to totals due to rounding. Summary statistics are for FCC Form 477 data. Form 477 collects information about Internet access connections in service to end-user locations that are advertised to deliver information to and/or from the end user – that is, in at least one direction – at transfer rates (“speeds”) above 200 kilobits per second (kbps). End users are residential, business, institutional, or government entities who use services for their own purposes and who do not resell such services to other entities. Numbers of connections are not adjusted for the number of persons at a single end-user location who have access to, or who use, the Internet access services delivered over the connection to that location. Numbers of residential connections are estimated based on the total connections and percentage-residential connections information reported on Form 477. Information is collected about connections in 72 speed tiers (nine upstream tiers and eight downstream) defined by ranges of upstream speeds and downstream speeds and by the technology employed by the part of the connection that terminates at the end-user location. The mutually exclusive Form 477 technology categories are: asymmetric Digital Subscriber Line (“aDSL”), symmetric Digital Subscriber Line (“sDSL”), other wireline, cable modem, optical fiber to the end-user premises, satellite, fixed wireless (using licensed or unlicensed spectrum), mobile wireless (using licensed or unlicensed spectrum), electric power line, and all other (which is included to capture deployment of additional technologies over time). Mobile wireless Changed reporting instructions starting in December 2008 caused a one-time decrease in the reported number of high-speed mobile wireless Internet access service connections. For reporting periods through June 2008, Form 477 instructed mobile wireless providers to report the number of subscribers whose mobile device (such as a wireless modem laptop card, smartphone, or handset) was capable of sending or receiving data at speeds above 200 kbps. The Commission found these instructions insufficiently precise to enable it to determine, from the reported data, the number of subscribers making regular use of Internet access service above 200 kbps as part of their mobile service package. Starting with the December 2008 data, Form 477 requires mobile wireless providers to report the number of subscribers that have a capable device (as just defined) for which the subscription includes a data plan for transferring, on a monthly basis, either a specified or an unlimited amount of data to and from Internet sites of the subscriber’s choice, and excluding subscribers whose choice of content is restricted to only customized-for-mobile content (for example, text and multimedia messaging, or the capacity to download ringtones and games). Also, changed instructions about distinguishing residential subscribers from other subscribers in the December 2008, and later, data caused some mobile wireless providers to report a larger share of residential subscribers than they had reported for earlier dates. * Data on computer penetration are not available for 2007 and 2009. Source: U.S. Department of Commerce, National Telecommunications and Information Administration (NTIA), Digital Nation: 21st Century America's Progress Toward Universal Broadband Internet Access (February 2010), available through NTIA's website at www.ntia.doc.gov. Chart 2.5 Percent of U.S. Households With Computers, Internet Access, and High-Speed Access at Home Selected Years (1997 - 2009) 38.6% 18.6% 42.1% 26.2% 51.0% 41.5% 4.4% 56.2% 50.3% 9.1% 61.8% 54.6% 19.9% 61.7% 50.8% 68.7% 63.5% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% P ercent of U . S. H ouseholds Computer 38.6% 42.1% 51.0% 56.2% 61.8% Internet Access 18.6% 26.2% 41.5% 50.3% 54.6% 61.7% 68.7% High-Speed Access 4.4% 9.1% 19.9% 50.8% 63.5% Oct 1997 Dec 1998 Aug 2000 Sept 2001 Oct 2003 Oct 2007 * Oct 2009 * 2 - 14 2007 2009 2007 2009 2007 2009 Internet Service 58.3% 63.4% 62.6% 70.0% 61.7% 68.7% Dial-Up Service 19.3% 8.9% 8.5% 3.7% 10.7% 4.7% High-Speed Service 38.8% 54.1% 53.8% 65.9% 50.8% 63.5% Other 0.3% 0.4% 0.2% 0.4% 0.2% 0.4% Source: U.S. Department of Commerce, National Telecommunications and Information Administration (NTIA), Broadband in America, 2007 (January 2008); U.S. Department of Commerce, NTIA, Digital Nation: 21st Century America's Progress Toward Universal Broadband Internet Access (February 2010); and Supplemental Current Population Survey (CPS) Internet Tables at http://www.ntia.doc.gov/data/CPSTables/t11_2lst.txt. Table 2.9 Percent of U.S. Households with Internet Connections at Home Rural versus Urban Rural Urban Total (As of October 2007 and October 2009) Note: Figures may not add up due to rounding. (As of October 2007 and October 2009) Chart 2.6 Percent of U.S. Households with Internet Connections at Home Rural versus Urban 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% Rural 58.3% 19.3% 38.8% 63.4% 8.9% 54.1% Urban 62.6% 8.5% 53.8% 70.0% 3.7% 65.9% Internet Service Dial-Up Service High-Speed Service Internet Service Dial-Up Service High-Speed Service 2007 2009 2 - 15 3 - 1 3 Consumer Expenditures The Bureau of Labor Statistics conducts surveys of consumer expenditures, in part, to develop weights for CPI indices. Table 3.1 shows total annual expenditures for telephone service for all consumer units. About 2% of all consumer expenditures are devoted to telephone service. This percentage has remained virtually unchanged over the past twenty years, despite major changes in the telephone industry and in telephone usage. Average annual expenditures on telephone service increased from $360 per household in 1981 to $1,100 in 2008. Bill Harvestingฎ data collected by TNS Telecoms provide information on the telecommunications expenditures of households. (Additional information on TNS Telecoms can be found in Section 14 and Appendix B.) Expenditures can be classified by the type of service provider. Table 3.2 presents average monthly household bills from wireline and wireless providers for 1995 through 2008. 1 The upper portion of the table shows average monthly expenditures for the entire sample of households while the lower shows average monthly expenditures among those households billed by each type of service provider. The average monthly household expenditures are greater in the latter portion of the table since those households not billed for particular services are removed from the average. Another measure of consumer expenditures for telephone service is provided by the Bureau of Economic Analysis. Table 3.3 and Table 3.4 show estimates of personal consumption expenditures by households for landline, cellular and internet services by households. Charts 3.1 and 3.2 illustrate the increasing importance of the wireless and Internet share of household telecommunications service expenditures. 1 In this Trends Report, expenditures for local exchange providers and long distance providers have been combined. The breakout between local exchange and long distance expenditures has become more difficult to identify over time as LECs have increased the amount of bundled services that they provide to consumers. 1981 $17,558 $360 2.1 % 1982 18,071 375 2.1 1983 19,692 415 2.1 1984 21,975 435 2.0 1985 23,490 455 1.9 1986 23,866 471 2.0 1987 24,414 499 2.0 1988 25,892 537 2.1 1989 27,810 567 2.0 1990 28,381 592 2.1 1991 29,614 618 2.1 1992 29,846 623 2.1 1993 30,692 658 2.1 1994 31,731 690 2.2 1995 32,264 708 2.2 1996 33,797 772 2.3 1997 34,819 809 2.3 1998 35,535 830 2.3 1999 36,995 849 2.3 2000 38,045 877 2.3 2001 39,518 914 2.3 2002 40,677 957 2.4 2003 40,817 956 2.3 2004 43,395 990 2.3 2005 46,409 1,048 2.3 2006 48,398 1,087 2.2 2007 49,638 1,100 2.2 2008 50,486 1,127 2.2 Source: Bureau of Labor Statistics, Consumer Expenditure Survey. Table 3.1 Annual Expenditures for All Households Telephone Expenditures as a Percent of All Expenditures Year All Expenditures Telephone Expenditures Household Expenditures for Telephone Service 3 - 3 Table 3.2 Average Monthly Household Telecommunications Expenditures By Type of Provider Year Wireline Providers Wireless Providers Total 1995 $51 $7 $58 1996 51 9 60 1997 57 11 68 1998 56 14 70 1999 55 17 72 2000 53 23 76 2001 51 29 80 2002 48 35 83 2003 47 41 88 2004 45 47 92 2005 44 53 97 2006 44 58 102 2007 45 68 113 2008 48 78 125 Year Wireline Providers Wireless Providers Total 1995 $54 $46 $100 1996 56 45 101 1997 60 40 100 1998 61 41 102 1999 59 42 101 2000 59 46 105 2001 57 51 108 2002 55 56 111 2003 53 62 115 2004 49 67 116 2005 49 74 122 2006 48 78 126 2007 48 85 133 2008 50 92 142 (Averages for all Households) (Averages for only those Households Billed for Service) Note: Average monthly household expenditures are estimates based on sample data. All households in the sample have wireline telephone service. Households in Alaska and Hawaii are excluded from the analysis. No effort was made to distinguish bundled prices from a la carte prices. For households taking bundled local and long distance from the same provider, the entire bill is generally considered local. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 3 - 4 Personal Landline Cellular Internet Total Telephone Consumption Telephone Telephone Access Telephone & Internet Expenditures Services Services Services and Access 1/ 2/ 3/ 4/ Internet as a Access Percentage Landline Cellular Internet of PCE 1980 $1,755,826 $27,574 $0 $0 $27,574 1.6 % 100 % 0 % 0 % 1981 1,939,506 30,889 0 0 30,889 1.6 100 0 0 1982 2,075,495 35,140 0 0 35,140 1.7 100 0 0 1983 2,288,576 38,639 0 0 38,639 1.7 100 0 0 1984 2,501,083 41,786 0 0 41,786 1.7 100 0 0 1985 2,717,608 45,877 101 0 45,978 1.7 100 0 0 1986 2,896,746 49,088 173 0 49,261 1.7 100 0 0 1987 3,096,960 51,637 242 0 51,879 1.7 100 0 0 1988 3,350,056 53,799 591 25 54,415 1.6 99 1 0 1989 3,594,490 56,783 1,352 50 58,185 1.6 98 2 0 1990 3,835,453 58,456 2,246 100 60,802 1.6 96 4 0 1991 3,980,073 60,915 3,088 200 64,203 1.6 95 5 0 1992 4,236,891 66,133 4,866 305 71,304 1.7 93 7 0 1993 4,483,594 68,585 6,423 412 75,420 1.7 91 9 1 1994 4,750,806 72,770 8,522 805 82,097 1.7 89 10 1 1995 4,987,280 73,893 11,274 1,611 86,778 1.7 85 13 2 1996 5,273,608 79,036 13,735 2,675 95,446 1.8 83 14 3 1997 5,570,626 87,443 15,706 3,575 106,724 1.9 82 15 3 1998 5,918,488 91,625 19,455 5,549 116,629 2.0 79 17 5 1999 6,342,784 95,796 24,204 10,055 130,055 2.1 74 19 8 2000 6,830,371 97,636 32,590 16,437 146,663 2.1 67 22 11 2001 7,148,807 96,817 40,763 18,243 155,823 2.2 62 26 12 2002 7,439,191 90,907 48,933 21,929 161,769 2.2 56 30 14 2003 7,804,013 85,499 54,667 26,128 166,294 2.1 51 33 16 2004 8,285,080 81,662 61,458 28,451 171,571 2.1 48 36 17 2005 8,819,002 76,677 69,390 29,888 175,955 2.0 44 39 17 2006 9,322,662 79,566 78,224 32,301 190,091 2.0 42 41 17 2007 9,826,438 76,053 85,940 38,606 200,599 2.0 38 43 19 2008 10,129,919 76,454 91,517 42,470 210,441 2.1 36 43 20 2009 10,089,069 76,600 94,543 44,144 215,287 2.1 36 44 21 Note: All series revised for all years 1/ Personal Consumption Expenditures (Series DPCERC). 2/ Represents the sum of two series: Landline Local Telephone Service (Series DLOCRC) and Landline Long Distance Telephone Services (Series DLDTRC). 3/ Cellular Telephone Service (Series DCELRC). 4/ Internet Access (Series DINTRC). Source: Bureau Of Economic Analysis, National Economic Accounts, Table 2.4.5U. Personal Consumption Expenditures by Type of Product. See http://www.bea.gov/national/nipaweb/nipa_underlying/SelectTable.asp, last visited June 8, 2010. As a Percentage of Total Telephone and internet Access Table 3.3 Personal Consumption Expenditures (PCE) (Expenditure Amounts Shown in Millions) 3 - 5 Households in All Landline Cellular Internet Total Telephone July Consumption Telephone Telephone Access and Internet (Millions) Expenditures Services Services Services Access 1980 81.9 $1,786 $28 $0 $0 $28 1981 83.5 1,935 31 0 0 31 1982 84.7 2,042 35 0 0 35 1983 85.1 2,241 38 0 0 38 1984 86.6 2,407 40 0 0 40 1985 88.2 2,568 43 0 0 43 1986 89.5 2,697 46 0 0 46 1987 90.7 2,845 47 0 0 48 1988 92.4 3,021 49 1 0 49 1989 93.8 3,193 50 1 0 52 1990 94.8 3,372 51 2 0 53 1991 95.5 3,473 53 3 0 56 1992 96.6 3,655 57 4 0 62 1993 97.9 3,816 58 5 0 64 1994 98.6 4,015 62 7 1 69 1995 100.0 4,156 62 9 1 72 1996 101.2 4,343 65 11 2 79 1997 102.3 4,538 71 13 3 87 1998 103.4 4,770 74 16 4 94 1999 105.1 5,029 76 19 8 103 2000 105.8 5,380 77 26 13 116 2001 106.9 5,573 75 32 14 121 2002 108.5 5,714 70 38 17 124 2003 112.1 5,801 64 41 19 124 2004 113.5 6,083 60 45 21 126 2005 114.4 6,424 56 51 22 128 2006 116.2 6,686 57 56 23 136 2007 117.7 6,957 54 61 27 142 2008 118.0 7,154 54 65 30 149 2009 118.0 7,125 54 67 31 152 1/ Expenditure amounts per month were calculated as the amounts shown in Table 3.3 divided by the number of households as of July. Source: Number of households from the Census Bureau's Current Population Survey. Expenditure data from the Bureau Of Economic Analysis, National Economic Accounts, Table 2.4.5U. Personal Consumption Expenditures by Type of Product. See http://www.bea.gov/national/nipaweb/nipa_underlying/SelectTable.asp last visited June 8, 2010. Table 3.4 Personal Consumption Expenditures Per Household Per Month 1/ 3 - 6 Monthly Personal Consumption Expenditures for Telephone Service per Household Chart 3.1 Personal Consumption Expenditures for Telephone Service and Internet Access ($ Millions) Chart 3.2 $0 $50,000 $100,000 $150,000 $200,000 $250,000 1980 1985 1990 1995 2000 2005 Landline Cellular Internet Access 0 10 20 30 40 50 60 70 80 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Landline Cellular Internet Access 3 - 7 4 - 1 4 Earnings Beginning in the mid-1980s, local exchange carriers that file access tariffs with the Commission were required to file rate-of-return reports (FCC Form 492). The first reports were filed for the monitoring period October 1, 1985 - December 31, 1986. Carriers filed reports for each subsequent two-year monitoring period (1987-88 and 1989-90). In 1991, carriers that became subject to price-cap incentive regulation began filing reports on a yearly basis. Non-price-cap carriers filed annual reports for each monitoring period. Table 4.1 is a summary of interstate rates of return for 2000-2008 filed by price-cap carriers. Beginning in 2008, AT&T, Qwest, and Verizon no longer file FCC Form 492A. 1 Rates of return for 1991-1999 can be found in the August 2001 Trends report which can be accessed at www.fcc.gov/wcb/stats. The rates of return shown in Table 4.1 were those posted at the time of the carriers’ individual FCC Form 492 filings. They do not reflect revisions filed by the carriers at a later date. Thus, they are not necessarily the official versions for regulatory purposes, but they do illustrate general industry trends. Summaries of the filings can be found on the Wireline Competition Bureau Statistical Reports web site at www.fcc.gov/wcb/stats. Copies of the FCC Form 492A reports are on file in the FCC's Reference Information Center, Courtyard Level, 445 12th Street S.W., Washington, D.C. 20554. 1 The Commission’s MO&O in Petition of AT&T For Forbearance, WC Docket No. 07-21, et al, 23 FCC Rcd 7302 (2008), granted AT&T conditional forbearance from filing FCC 492A, the Rate of Return Monitoring Report, subject to approval of a compliance plan. On December 12, 2008, the Commission extended the same relief, subject to the same conditions, to Verizon and Qwest. On December 31, 2008, in a Public Notice, the Wireline Competition Bureau approved the three plans effective immediately. Therefore, the 2007 preliminary reported data will also be their final data. AT&T, Verizon, and Qwest entities will no longer file Report Form 492A for year 2008 and subsequent years. Reporting Entity 2008 2007 2006 2005 2004 2003 2002 2001 2000 (Final Reports for 2000 Through 2007 and Initial Report for 2008) 1 Table 4.1 Interstate Rate of Return Summary * Years 2000 through 2008 Price-Cap Companies Reporting FCC Form 492A AT&T, Inc. 11 1 BellSouth Telecommunications Inc 24.54 15.88 25.00 22.68 21.93 19.35 21.25 22.83 2 Ameritech Operating Companies 40.11 33.26 27.92 22.51 20.55 20.24 25.72 30.24 3 Nevada Bell Telephone Company 33.51 33.54 31.29 24.76 20.16 14.86 20.86 21.55 4 Pacific Bell Telephone Company 62.43 48.67 36.81 28.77 26.23 21.00 23.79 19.20 5 Southern New England Telephone Company, The 31.55 28.62 27.47 21.82 6 23.93 18.47 23.57 18.21 6 Southwestern Bell Telephone Company L.P. 31.66 26.73 20.27 16.38 6 15.60 14.88 18.81 15.17 7 Qwest Corporation, Including Malheur and El Paso 11 52.56 41.97 28.60 10 25.07 22.74 20.08 19.14 19.93 Verizon Telephone Companies 11 8 Verizon Telephone Companies (Verizon FCC Tariff No. 1 & No. 11) 19.89 16.55 18.37 11.24 8.00 11.95 12.93 13.36 9 Verizon California Inc. (California - GTCA) 39.60 32.18 27.89 34.99 29.17 28.50 28.48 25.87 10 Verizon California Inc. (Arizona - COAZ) 81.40 19.58 26.11 6.17 2.05 6.99 13.25 10.90 11 Verizon California Inc. (California - COCA) 85.67 54.32 40.93 36.93 30.64 28.22 29.80 28.74 12 Verizon California Inc. (Nevada - CONV) 47.81 39.12 27.98 28.79 28.51 24.08 26.66 28.82 13 Verizon Florida Inc. (Florida - GTFL) 30.16 31.59 32.25 28.96 24.46 22.03 29.23 21.90 14 Verizon North Inc. (COPA + COQS = COPT) 36.03 32.55 38.92 32.88 6 40.74 43.61 39.71 41.05 15 Verizon North Inc. (Illinois - COIL) 48.90 42.82 41.27 41.72 60.34 54.09 53.67 44.51 16 Verizon North Inc. (Indiana - COIN) 70.42 54.82 51.36 40.36 47.34 46.06 46.55 47.67 17 Verizon North Inc. (Ohio - GTOH) 29.59 19.66 20.96 18.58 19.39 19.53 20.45 21.88 18 Verizon North Inc. (Pennsylvania - GTPA) 29.13 9.28 52.26 20.50 13.76 22.50 23.17 21.95 19 Verizon North Inc. (Wisconsin - GTWI) 21.76 17.16 13.86 11.53 6 10.85 9.90 14.16 16.99 20 Verizon North/Verizon South (GTIN + GLIN = GAIN) 26.98 19.97 22.78 22.34 22.64 24.75 32.82 33.00 21 Verizon North/Contel South (GTMI + GLMI = GAMI) 23.38 20.00 17.88 14.83 6 15.10 16.64 17.49 16.45 22 Verizon North/Verizon South (GTIL + GLIL = GAIL) 34.90 25.48 23.11 23.29 21.99 21.54 23.67 23.90 23 Verizon Northwest Inc. (Idaho - GTID) 68.31 47.61 43.93 34.53 28.20 33.01 38.74 34.17 24 Verizon Northwest Inc. (Oregon - GTOR) 29.30 29.05 32.43 25.44 26.28 26.10 31.69 30.95 25 Verizon Northwest Inc. (Washington - COWA) 47.16 39.13 33.53 30.44 36.20 31.57 40.06 39.49 26 Verizon Northwest Inc. (Washington - GTWA) 40.45 40.04 33.22 33.91 29.82 28.97 34.03 33.26 27 Verizon Northwest Inc. (West Coast CA - GNCA) (7.20) (1.59) (33.59) (9.44) (13.80) (5.17) 1.91 (8.35) 28 Verizon South Inc. (North Carolina - GTNC) 32.74 29.37 (27.32) 17.52 16.74 23.45 30.08 26.44 29 Verizon South Inc. (N. Carolina - CONC) 32.13 25.23 26.27 10.10 14.77 21.97 22.17 17.75 30 Verizon South Inc. (GTSC + COSC = GTST) 20.34 34.45 26.00 39.63 28.19 29.82 32.44 31.19 Verizon South Inc. (Alabama - GTAL) 24.02 20.24 Verizon South Inc. (Kentucky - COKY) 30.95 20.60 Verizon South Inc. (Kentucky - GTKY) 27.21 25.07 31 Verizon South Inc. (Virginia - COVA) 52.93 50.02 46.88 33.50 39.52 40.41 40.69 40.85 32 Verizon South Inc. (Virginia - GTVA) 49.72 13.94 19.98 24.17 (22.01) 1.76 9.53 6.62 33 GTE Southwest Inc. dba Verizon Southwest (Texas - COTX) 18.13 13.33 11.09 11.23 10.05 12.46 11.9 12.17 34 GTE Southwest Inc. dba Verizon Southwest (Texas - GTTX) 21.36 16.33 18.38 18.21 18.74 20.47 24.35 21.65 GTE Midwest Inc. (Missouri - COMO + COCM + COEM =COMT) 20.33 17.06 GTE Midwest Inc. (Missouri - GTMO) 23.92 19.15 GTE Systems of The South (Alabama - COAL) 15.77 14.93 Embarq 35 Central Telephone Company - Nevada Division 59.46 % 47.08 % 53.49 % 8 53.49 % 8 45.80 % 43.37 % 34.16 % 23.80 % 19.61 % 36 Embarq - Florida Incorporated 31.46 33.54 40.43 8 40.43 8 43.03 40.98 6 35.54 29.41 25.89 37 Embarq Local Telephone Cos. - Eastern (NJ & PA) 53.22 47.02 50.74 8 50.74 8 56.61 55.14 6 45.38 37.78 25.62 38 Embarq Local Telephone Cos. - Midwest (MO, KS, MN, NE, WY, TX) 28.22 25.15 30.84 8 30.84 8 32.36 29.17 6 25.24 18.89 18.88 39 Embarq Local Telephone Cos. - North Carolina 34.06 34.94 46.08 8 46.08 8 50.82 51.62 6 45.89 36.64 22.23 40 Embarq Local Telephone Cos. - Northwest (OR & WA) 32.21 27.39 32.06 8 32.06 8 33.80 23.90 6 33.51 34.62 32.77 41 Embarq Local Telephone Cos. - Southeast (TN, VA & SC) 37.57 34.91 40.98 8 40.98 8 38.35 36.14 6 34.34 33.76 23.32 42 United Telephone Co. of Indiana, Inc. 55.12 58.90 64.24 8 64.24 8 71.95 68.80 6 46.47 41.75 38.21 43 United Telephone Co. of Ohio 60.45 53.29 50.39 8 50.39 8 46.30 39.01 6 31.50 30.89 20.03 %%%%% %%% 4 - 3 Reporting Entity 2008 2007 2006 2005 2004 2003 2002 2001 2000 (Final Reports for 2000 Through 2007 and Initial Report for 2008) 1 Table 4.1 Interstate Rate of Return Summary * Years 2000 through 2008 Price-Cap Companies Reporting FCC Form 492A All Other Companies 44 CenturyTel of Belle-Hermann/So Missouri/Sw Missouri (CNMO) 23.24 17.20 26.29 30.75 22.94 14.53 4.69 2 46 CenturyTel of Northern Alabama (CNAN) 42.67 42.23 44.51 26.77 11.97 8.23 7.49 3 47 CenturyTel of Southern Alabama (CNAS) 43.83 41.26 39.47 32.36 23.21 24.13 15.78 3 48 Cincinnati Bell Telephone Company 72.35 56.54 47.98 53.10 33.71 6 32.48 28.64 4 30.09 28.95 49 Citizens Comms Cos. dba Citizens Comms FCC Tariff 1 (CTC1) 35.24 37.90 45.66 41.31 34.99 6 24.40 19.27 15.73 19.68 50 Citizens Comms Cos. dba Citizens Comms FCC Tariff 2 (CTC2) 66.66 63.41 59.07 48.43 37.75 6 16.14 20.67 17.30 24.05 51 Citizens Comms Cos. dba Citizens Comms FCC Tariff 3 (CTC3) 19.78 15.77 23.46 22.00 12.19 6 10.40 8.94 4.52 16.12 52 Citizens Comms Cos. dba Citizens Comms FCC Tariff 4 (CTC4) 57.15 57.25 56.69 57.95 42.79 6 35.38 23.31 13.08 30.94 53 Citizens Telecommunications Cos. (CTC5) 10.76 40.37 4.90 0.86 (11.23) 54 Consolidated Communications of Fort Bend Company 15.45 55 Consolidated CommunicaTIONS OF Texas Company 25.09 56 Frontier Telephone of Rochester 51.98 10.84 18.21 11.32 55.89 6 10.67 11.47 12.32 18.91 57 Frontier Tier 2 Concurring Companies 35.45 48.89 51.56 59.64 11.45 6 38.49 33.34 38.12 38.95 58 Frontier Comms of Minnesota & Frontier Comms of Iowa 16.31 33.41 34.90 47.18 33.67 6 32.16 31.15 25.24 33.16 59 Hawaiian Telecom 23.43 21.43 22.41 21.88 10 9.44 7 16.96 15.30 16.72 17.87 60 Illinois Consolidated Telephone Company 38.89 61 Iowa Telecom Service Group 35.15 28.05 25.51 19.36 10 17.30 6 17.58 5 14.26 4 13.07 62 Iowa Telecom Systems Service Group 17.19 15.20 19.14 10 20.16 23.97 5 20.47 4 18.45 63 Micronesian Telecommunications Corp. 51.51 51.05 45.48 43.52 43.52 67 33.91 32.75 21.83 23.58 Windstream 64 Georgia Properties 25.88 65 Oklahoma Properties 41.37 66 Texas Windstream, Inc 19.51 67 Valor Oklahoma 17.69 30.33 (1.34) 9 19.38 10 15.29 6 8.69 9.31 11.65 11.22 68 Valor Texas 28.12 24.03 (1.13) 9 18.08 10 13.47 6 15.21 10.66 5.70 5.24 60 Valor New Mexico #1 30.73 22.84 11.60 9 28.25 10 22.96 6 18.45 16.86 11.45 20.67 70 Valor New Mexico #2 25.72 21.64 5.54 9 17.77 10 21.16 6 20.41 15.88 8.39 13.35 71 Windstream Alabama, LLC 31.19 72 Windstream Arkansas, LLC 24.61 73 Windstream Concord, Inc 39.50 74 Windstream Florida, Inc 29.08 75 Windstream Kentucky East, LLC Lexington 99.56 61.07 30.15 9 38.10 10 33.40 6 26.75 27.78 12.57 12.99 76 Windstream Kentucky East, LLC London 31.26 22.87 14.12 9 23.37 10 25.50 6 26.26 28.76 77 Windstream Kentucky West, LLC 35.05 78 Windstream Kerrville 41.96 79 Windstream Missouri, Inc 24.78 80 Windstream Mississippi, LLC 81.28 81 Windstream Nebraska 53.55 24.89 23.87 9 28.40 10 14.25 6 13.43 12.20 12.57 12.99 82 Windstream New York, Inc 56.59 83 Windstream North Carolina, LLC 11.41 84 Windstream Ohio 17.73 85 Windstream Pennsylvania, LLC 16.57 86 Windstream South Carolina, LLC 28.99 87 Windstream Standard, LLC 33.33 88 Windstream Sugar Land 31.79 89 Windstream Western Reserve 25.25 Maximum Rate of Return 11 99.56 % 85.67 % 64.24 % 71.84 % 68.80 % 59.89 % 54.09 % 53.67 % 47.67 % Minimum Rate of Return 11 10.76 (7.20) (1.59) (33.60) (9.44) (17.50) (5.17) 0.86 (11.23) Weighted Arithmetic Mean 11 32.16 30.65 25.51 23.48 20.44 18.06 17.69 19.62 18.04 Standard Deviation 11 15.51 12.87 11.58 9.13 9.00 8.63 5.69 5.80 5.17 1 For years 1991 - 1999, see Industry Analysis Division, Common Carrier Bureau, Trends in Telephone Service (August 2001). 2 For the reporting period 9/1/02 - 12/31/02. 3 For the reporting period 7/1/02 - 12/31/02. 4 For final 2002, there were no changes to the preliminary. 5 For final 2003, there were no changes to the preliminary. 6 For final 2004, there were no changes to the preliminary. 7 Verizon sold these entities in 2005. 10 For final 2005, there were no changes to the preliminary. 11 The Commission's MO&O in Petition of AT&T For Forbearance , WC Docket No. 07-21, et al, 23 FCC Rcd 7302 (2008), granted AT&T conditional forbearance from filing FCC 492A, the Rate of Return Monitoring Report, subject to approval of a compliance plan. On December 12, 2008, the Commission extended the same relief, subject to the same conditions, to Verizon and Qwest. On December 31, 2008, in a Public Notice, the Wireline Competition Bureau approved the three plans effective immediately. Therefore, the 2007 preliminary reported data will also be their final data. AT&T, Verizon, and Qwest entities will no longer file Report Form 492A for year 2008 and subsequent years. 8 In December 2004 Sprint and Nextel merged and in February 2006 the Local Telecommunication Division was named EMBARQ. 9 Windstream formed through spinoff of Alltel's landline business and merger with Valor Communications. For example, price-cap carriers report interstate rates of return on the Commission's Automated Reporting Management Information System's (ARMIS) 43-01 report. The 43-01 Report interstate rates of return also includes revenues and costs for non-price-cap services. See footnote 11 for additional information regarding the 43-01 Report. * The carriers' interstate rates of return reported on the FCC Form 492A may not agree with the interstate rates of return reported by the carriers on other Commission reports. 4 - 4 5 - 1 5 Employment and Labor Productivity The Bureau of Labor Statistics (BLS) publishes monthly data regarding the total number of employed workers in the communications industry. Specifically, BLS compiles employment statistics for the entire telephone communications industry. 1 These are classified according to the North American Industry Classification System (NAICS). NAICS is a collaborative effort between the United States, Canada, and Mexico to provide comparability in statistics about business activity across North America. The telecommunications industry subsector (517) can be found in the 2007 NAICS Information Sector – 50. 2 The industry groups under telecommunications are as follows: wired telecommunications carriers (5171) 3 ; wireless telecommunications carriers (5172) 4 ; telecommunications resellers (517911) 5 ; and other telecommunications (5179). Further information on NAICS can be found on the Bureau of Labor Statistics web site at http://www.bls.gov/ces/cesnaics07.htm. Table 5.1 and the associated graph show the information compiled by BLS for the annual average employment figures for the telecommunications industry – NAICS 517, as well as the industry distributions for wired telecommunications carriers – NAICS 5171, wireless telecommunications carriers – NAICS 5172, telecommunications resellers – NAICS 517911, and other telecommunications – NAICS 5179. Monthly employment data for these categories from 1990 to the present can be found on the BLS web site at www.bls.gov. Table 5.2 and the associated graph show the information compiled by BLS for the labor productivity index for nonfarm business – NAICS 8500, for wired telecommunications carriers – NAICS 5171, and for wireless telecommunications carriers – NAICS 5172. The BLS index of labor productivity relates output to the employee hours expended in producing that output. 1 BLS used to compile data based on the Standard Industrial Classification (SIC) system. With the May 2003 data, the employment series underwent a complete industry reclassification, changing from the 1987 SIC system to the 2002 NAICS. Employment statistics from 1951 to 2002 based on the SIC system can be found in Table 5.1 of the Industry Analysis and Technology Division, Wireline Competition Bureau, Trends in Telephone Service (August 2003). The Labor Productivity Index for the telephone communications industry for the years 1951 to 2002 based on the SIC system can also be found in the August 2003 edition of Trends in Table 5.2. 2 On February 1, 2008, the CES National Nonfarm Payroll series was updated to the 2007 NAICS from the 2002 NAICS basis. The conversion to NAICS 2007 resulted in minor definitional changes within manufacturing, telecommunications, financial activities, and professional and technical services. Several industry titles and descriptions were updated. The most significant revisions are in the Information sector, particularly within the telecommunications area. 3 Wired telecommunications carriers (5171) now includes Cable and Other Program Distribution (5175). 4 Wireless telecommunications carriers (5172) now includes Cellular and Other Wireless Carriers (517212). 5 Telecommunications resellers changed their series from (5173) to (517911). 5 - 2 Table 5.3 presents estimates of the number of telecommunications service providers that the Small Business Administration’s Office of Size Standards defines as small businesses (i.e., 1,500 or fewer employees, including all affiliates). Year Telecom 1 Wired 2 Wireless 3 Telecom Other 4 Carriers Telecom Telecom Resellers Telecom Carriers Carriers 517 5171 5172 517911 5179 1990 1,008.5 759.5 35.8 179.5 33.7 1991 999.9 749.9 41.8 178.1 30.1 1992 972.9 725.8 47.8 172.6 26.7 1993 969.5 716.5 56.3 170.5 26.2 1994 989.5 719.2 71.7 171.8 26.8 1995 1,009.3 717.6 90.3 171.2 30.2 1996 1,038.1 722.2 110.1 171.6 34.2 1997 1,108.0 755.7 132.1 181.3 38.9 1998 1,167.4 789.8 144.2 188.7 44.7 1999 1,270.8 853.2 159.9 200.2 57.5 2000 1,396.6 921.8 185.6 213.6 75.6 2001 1,423.9 933.8 201.4 214.1 74.6 2002 1,280.9 837.1 197.3 179.5 67.0 2003 1,166.8 761.8 189.9 154.9 60.2 2004 1,115.1 720.4 189.7 147.3 57.7 2005 1,071.3 689.6 191.3 135.1 55.3 2006 1,047.6 669.2 200.2 125.6 52.6 2007 1,030.6 664.5 203.4 117.2 45.5 2008 1,021.4 666.1 202.7 109.3 43.3 1 Figures may not add up due to rounding. 2 Cable and Other Program Distribution (formerly 5175) is no longer reported separately and is reported in Wired Telecom Carriers (5171). 3 Cellular and Other Wireless Carriers (formerly 517212) is no longer reported separately and is reported in Wireless Telecom Carriers (5172). 4 Totals for Other Telecom (5179) exclude data reported for Telecom Resellers (517911). Source: Bureau of Labor Statistics. Annual Average Number of Employees in the Telecommunications Industry (In Thousands) Table 5.1 Annual Average Number of Employees in the Telecommunications Industry (In Thousands) Chart 5.1 0 200 400 600 800 1,000 1,200 1,400 1,600 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Telecom Carriers Wired Carriers Wireless Carriers Telecom Resellers Other Telecom 5 - 3 Year 1996 83.22 81.54 46.64 1997 84.50 84.55 45.88 1998 86.98 89.13 50.69 1999 89.87 93.26 66.63 2000 92.92 94.89 70.09 2001 95.64 92.00 88.04 2002 100.00 100.00 100.00 2003 103.66 105.72 110.51 2004 106.59 110.40 132.28 2005 108.37 112.33 171.74 2006 109.40 116.64 185.09 2007 111.41 122.77 195.15 2008 113.69 126.72 231.89 Source: Bureau of Labor Statistics. Nonfarm Business, Wired, and Wireless Telecommunications Carriers (NAICS 8500, 5171, and 5172) Labor Productivity Index (NAICS 5171) (NAICS 5172) Chart 5.2 (NAICS 8500) Wired WirelessNonfarm Carriers CarriersBusiness Table 5.2 Labor Productivity Index for Nonfarm Business and the Wired and Wireless Telecommunications Industry Measured in Output per Hour (OPH) (Base Year 2002 = 100) 0.00 50.00 100.00 150.00 200.00 250.00 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Nonfarm Business (8500) Wired (5171) Wireless (5172) 5 - 4 Table 5.3 Number of Telecommunications Service Providers by Size of Business (As of October 13, 2008) 1,500 or Fewer Employees 2 More than 1,500 Employees 2 Incumbent Local Exchange Carriers (ILECs) 1,307 1,006 301 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 1,442 1,256 186 Local Resellers 213 211 2 Shared-Tenant Service Providers 17 17 0 Other Local Service Providers 72 70 2 Total Local Competitors 1,744 1,554 190 Total Fixed Local Service Providers 3,051 2,560 491 Payphone Service Providers 535 531 4 Private Service Providers 137 125 12 Wireless Telephony Including Cellular, Personal Communications Service (PCS) and SMR Telephony Carriers 413 261 152 Paging and Messaging Service Providers 291 289 2 Specialized Mobile Radio (SMR) Dispatch 183 183 0 Wireless Data and Other Mobile Service Providers 83 82 1 Total Wireless Service Providers 970 815 155 Interexchange Carriers (IXCs) 359 317 42 Operator Service Providers (OSPs) 33 31 2 Prepaid Calling Card Providers 193 193 0 Satellite Service Providers 50 44 6 Toll Resellers 881 857 24 Other Toll Carriers 284 279 5 Total Toll Service Providers 1,800 1,721 79 All Filers 6,493 5,752 741 Holding Company Analysis Filers without Affiliates: Holding Company Level 3,682 3,661 21 Filer Level 3,682 3,661 21 Filers with Affiliates 3 : Holding Company Level 806 759 47 Filer Level 2,811 2,091 720 Total, Holding Company Level 4,488 4,420 68 Total, Filer Level 6,493 5,752 741 2 Employee counts are estimated at the holding company level, yet presented at the filer level. If our analysis indicates that, at the holding company level, a group of filers together employs more than 1,500 people, then each of the individual filers that comprise the holding company are entered in the column labeled as such. Therefore, our estimates do not imply that each or any of the individual filers alone employs more than 1,500 persons. Source: FCC Form 499-A filings and IATD staff estimates. Filers that in Combination with Affiliates Have Number of FCC Form 499-A Filers 1 Type of Provider 1 While FCC Form 499-A filings are not publicly available, filer registration information is published by the Industry Analysis and Technology Division (IATD) in the Telecommunications Provider Locator (January 2010), which can be accessed at http://www.fcc.gov/wcb/iatd/locator.html. This same information is searchable online at http://fjallfoss.fcc.gov/cgb/form499/499a.cfm. Note: Estimates are based on gross revenue data filed on the 2007 FCC Form 499-A worksheets, and public employment data from ARMIS and Securities and Exchange Commission filings. Filers were considered affiliated based on information from their FCC Form 499-A filings. These estimates do not reflect affiliates that do not file the FCC Form 499-A, such as firms that are not in the telecommunications business or firms that operate solely outside the United States. 3 In some cases, affiliated companies may file a single FCC Form 499A for all operations. Such consolidated filings are included in this category. 5 - 5 6 -1 6 International Telephone Service International telecommunications has become an increasingly important segment of the telecommunications market. International telephone calling -- propelled by technological innovation, lower prices and increased international trade and travel -- has skyrocketed. In 1980, customers in the United States were billed for almost 2 billion minutes of calls to international points. This figure increased to 8 billion in 1990, 30 billion in 2000, and 75 billion in 2008. Americans spent $7.3 billion on international calls in 2008. On average, carriers billed 10 cents per minute for international calls in 2008, a decline of 93% since 1980, and 80% since 2000. International private line revenues increased through 2000 and then declined significantly through 2003. These trends are shown in Table 6.1. Chart 6.1 shows the trends in billed revenues per minute and per call since 1980. U.S. and foreign carriers compensate each other when one carries traffic that the other bills. Because Americans place more international calls than they receive, and because U.S. carriers payout far more per minute of outbound traffic than they receive per minute of inbound traffic, U.S. carriers make substantial net payments to foreign carriers -- $4.0 billion in 2008. The net payout has declined between 1996 and 2003 because falling compensation rates more than offset the growth in traffic. Trends in settlement payments are shown in Table 6.2. International traffic data are available on a country-by-country basis. Table 6.3 summarizes traffic by region of the world. Five markets -- Canada, Mexico, the Philippines, India and the United Kingdom -- currently account for about 47% of the international billed minutes in the United States in 2008. Chart 6.2 shows the percentage breakout for the five markets. Since 1985, when MCI began to compete with AT&T for international calls, numerous carriers have begun to provide international service. In 2008, 77 carriers provided international telecommunications service between the United States and international points by using their own facilities or lines leased from other carriers. These carriers provided $6.5 billion of international telephone service, $817 million of international private line and other miscellaneous international services. Table 6.4 shows revenues for the 46 companies that did not request confidential treatment for 2008 filings. Nine hundred and seventy seven carriers reported revenues for international message telephone service that they provided on a pure resale basis. These carriers reported $7.0 billion of pure resale revenues in 2008. Table 6.5 shows pure resale revenues for the carriers with the highest pure resale messages, minutes and revenues. The data compiled in Tables 6.1 - 6.5 are filed pursuant to section 43.61 of the Commission's rules. Preliminary data are filed July 31st of each year and final data are filed October 31st. Additional information can be found in a number of international reports on the Internet on the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/stats. Table 6.1 International Service from the United States (Minute, Message, and Revenue Amounts Shown in Millions) Telephone Service Other Services Billed Revenues Billed Revenues Minutes Total Per Per Call Telex Misc. End-User 1 Minute 2 Services 3 1980 1,569 199 $2,097 $1.34 $10.53 $325 $63 $115 1981 1,857 233 2,239 1.21 9.61 350 62 126 1982 2,187 274 2,382 1.09 8.70 363 56 138 1983 2,650 322 2,876 1.09 8.92 379 54 154 1984 3,037 367 3,197 1.05 8.71 394 46 158 1985 3,446 411 3,487 1.01 8.49 415 45 172 1986 4,126 482 4,004 0.97 8.30 390 42 175 1987 4,819 570 4,751 0.99 8.33 360 35 191 1988 5,679 687 5,806 1.02 8.45 310 30 194 1989 6,751 835 6,912 1.02 8.28 243 27 208 1990 8,030 984 8,059 1.00 8.19 196 24 201 1991 9,072 1,384 9,263 1.02 6.69 201 15 309 $23 1992 10,294 1,663 10,382 1.01 6.25 156 16 323 24 1993 11,513 1,945 11,564 1.00 5.95 136 12 366 23 1994 13,616 2,347 12,543 0.92 5.35 123 12 441 25 1995 15,889 2,830 14,335 0.90 5.07 120 6 514 48 1996 19,325 3,520 14,598 0.76 4.15 119 5 661 26 1997 22,753 4,259 15,662 0.69 3.68 110 4 851 28 1998 24,250 4,477 14,726 0.61 3.29 64 2 921 36 1999 28,515 5,305 14,980 0.53 2.82 57 2 1,216 31 2000 30,135 5,742 14,909 0.49 2.60 33 1 1,480 251 2001 33,287 6,265 11,386 0.34 1.82 10 * 1,419 199 2002 35,064 5,926 9,956 0.28 1.64 ** ** 988 113 2003 42,664 7,350 9,294 0.21 1.22 ** ** 899 3 2004 63,553 10,895 9,176 0.14 0.84 ** ** 711 3 2005 70,064 13,134 7,975 0.11 0.61 ** ** 738 3 2006 72,440 13,673 7,907 0.11 0.58 ** ** 792 3 2007 69,975 13,695 7,132 0.10 0.52 ** ** 717 3 2008 74,934 15,028 7,305 0.10 0.49 ** ** 817 3 * Denotes revenues less than $500,000. ** Data not filed. 1 Billed revenues in Table 6.1 differ from billed revenues in Table 6.3. The amounts shown here represent charges to end-user customers and equal the amounts billed by underlying carriers plus estimated reseller markups. The amounts shown in Table 6. 2 Billed revenue per minute for international service differs in Table 6.1 and Table 13.3. Data in Table 6.1 are calculated using all U.S. billed minutes and revenues. Data for Table 13.3 represent charges for most U.S. billed calls that originate or terminate in th United States. International-to-international revenues and reorigination, country-beyond and country-direct minutes are not include in that table. both publically filed amounts and amounts withheld to preserve confidential treatment. Data through 2004 from International Bureau, International Telecommunications Data (March 2006). Data starting 2005 are from Billed Revenues per Minute and per Call Note: Data represent traffic and circuits from all U.S. points. Data for some prior years have been revised. Chart 6.1 Telegraph Private Line 3 Messages Source: 3 Starting in 2003, private line and miscellaneous service revenue are combined because separate totals are not published including are the amounts reported by the underlying carriers that carried the traffic to foreign destinations. International Bureau, International Telecommunications Data. $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 Per Minute Per Call 6 - 3 Table 6.2 International Telephone Service Settlements (Revenue Amounts Shown in Millions) Average per Minute Settlement Settlement U.S. Owed to Due from Carrier Net End-User Retained Due from Net Foreign Foreign End-User Billed Owed to End-User Foreign Net End-User Carriers Carriers Revenues Revenues Foreign Revenues Carriers Settlements Revenues for U.S. for Foreign All 1/ Carriers 1/ 2/ 1/ Billed Calls Billed Calls Traffic 3/ 1980 $2,097 $1,063 $1,034 $716 ($347) $1,750 $0.68 $0.62 $0.64 1981 2,239 1,330 910 799 (531) 1,708 0.72 0.56 0.52 1982 2,382 1,674 708 961 (712) 1,670 0.77 0.60 0.44 1983 2,876 2,036 841 1,086 (950) 1,926 0.77 0.60 0.43 1984 3,197 2,269 928 1,066 (1,203) 1,994 0.75 0.54 0.40 1985 3,487 2,398 1,089 1,243 (1,155) 2,332 0.70 0.55 0.41 1986 4,004 2,865 1,140 1,396 (1,469) 2,536 0.69 0.56 0.38 1987 4,751 3,423 1,328 1,671 (1,752) 2,999 0.71 0.59 0.39 1988 5,806 4,039 1,767 1,906 (2,133) 3,674 0.71 0.59 0.41 1989 6,912 4,735 2,177 2,213 (2,523) 4,390 0.70 0.58 0.42 1990 8,059 5,297 2,762 2,426 (2,871) 5,188 0.66 0.56 0.42 1991 9,263 5,852 3,411 2,536 (3,317) 5,946 0.65 0.51 0.42 1992 10,382 6,008 4,375 2,650 (3,357) 7,025 0.58 0.46 0.44 1993 11,564 6,372 5,192 2,667 (3,705) 7,859 0.55 0.43 0.44 1994 12,543 7,010 5,533 2,719 (4,291) 8,252 0.51 0.39 0.40 1995 14,335 7,569 6,766 2,631 (4,938) 9,397 0.48 0.35 0.40 1996 14,598 8,252 6,345 2,594 (5,658) 8,939 0.43 0.30 0.32 1997 15,661 8,031 7,630 2,602 (5,429) 10,232 0.35 0.27 0.31 1998 14,726 7,022 7,704 2,538 (4,484) 10,242 0.29 0.21 0.28 1999 14,980 6,383 8,597 1,782 (4,601) 10,379 0.22 0.15 0.26 2000 14,909 5,536 9,373 1,609 (3,927) 10,982 0.18 0.11 0.25 2001 11,380 4,526 6,854 1,181 (3,346) 8,034 0.14 0.08 0.17 2002 9,956 3,733 6,223 892 (2,842) 7,114 0.11 0.05 0.14 2003 8,944 3,649 5,295 873 (2,777) 6,167 0.09 0.04 0.10 2004 9,188 4,623 4,530 1,016 (3,642) 5,546 0.07 0.04 0.07 2005 7,975 4,098 3,877 637 (3,461) 4,514 0.06 0.03 0.05 2006 7,907 4,146 3,761 517 (3,630) 4,277 0.06 0.02 0.05 2007 7,132 4,029 3,103 353 (3,677) 3,455 0.06 0.01 0.04 2008 7,305 4,327 2,977 343 (3,985) 3,320 0.06 0.01 0.04 1/ Billed revenues in Table 6.2 differ from billed revenues in Table 6.3. The amounts shown here represent charges to end-user customers and equal the amounts billed by underlying carriers plus estimated markups, where service was provided through resellers. The amounts shown in Table 6.3 are the amounts reported by the underlying carriers. Similar differences exist for retained end-user and net revenues. 2/ Beginning in 1991, includes net settlement receipts for transiting traffic. 3/ Beginning in 1991, includes transiting traffic. Data after 2004 are from International Bureau, International Telecommunications Data. Note: Data represent traffic to and from all U.S. points. Source: Data through 2004 from International Bureau, Trends in the International Telecommunications Industry (September 2005). 6 - 4 Table 6.3 International Message Telephone Service for 2008 (Figures Rounded to the Nearest Million) Traffic Billed in the United States Traffic Billed in Foreign Countries Total Originating or Terminating Transiting U.S. in the United States Carrier Number Number U.S. Owed to Retained Number Number Due from Retained Retained of of Carrier Foreign Revenues of of Foreign Revenues Revenues Region of the World 1 Messages Minutes Revenues Carriers Messages Minutes Carriers Africa 786 3,452 $530 $451 $79 131 500 $16 $31 $126 Asia 4,064 18,502 1,409 980 429 907 4,195 91 70 589 Caribbean 847 4,453 683 610 73 298 957 16 14 103 Eastern Europe 549 2,489 246 173 74 42 221 4 5 83 Middle East 509 2,076 265 185 80 145 679 11 8 99 North and Central America 4,084 25,373 1,786 1,045 741 3,868 13,340 103 59 903 Oceania 392 1,199 109 54 54 103 592 7 4 66 Other Regions 2 2 4 2 2 * * * * 2 South America 1,176 8,045 624 444 180 161 936 24 60 264 Western Europe 2,617 9,316 797 381 416 1,256 4,979 71 405 892 Total for Foreign Points 15,008 74,801 6,453 4,326 2,127 6,898 26,334 342 656 3,125 Total for U.S. Points 21 133 6 2 4 14 66 1 * 5 Total for All International 15,028 74,934 $6,459 $4,327 $2,131 6,911 26,400 $343 $656 $3,130 Points * Denotes values that are less than half a million. 1 The region totals include all international traffic reported by carriers serving domestic U.S. points including Guam and the U.S. Virgin Islands. Most traffic between Guam, the U.S. Virgin Islands, American Samoa and Northern Mariana Islands and other U.S. points are shown separately as the total for U.S. points, and also are included in the total for all international points. The total for all international points also includes all traffic originating in American Samoa and the Northern Mariana Islands, which is excluded from the region totals. Source: International Bureau, International Telecommunications Data. Chart 6.2 U.S. Billed Minutes by Country Mexico 16% Philippines 4% United Kingdom 4% India 11% Canada 13% All Other 52% 6 - 5 Table 6.4 U.S. Billed Revenues of Facilities-Based and Facilities-Resale Carriers in 2008 1/ (Revenue Amounts Shown in Millions) International Service Total Telephone Private Miscellaneous International Line Billed Revenues ABS-CBN Telecom North America, Inc. 2 2 Bharti Airtel Limited 30 30 BringCom International, LLC 44 Cable & Wireless Americas Operations, Inc. 4 4 Carrier PB Telco, Inc. 13 13 Centennial Puerto Rico Operations Corp. 3 3 China Unicom USA Corp. 7 * 7 Chunghwa Telecom Global, Inc. 1 1 Cincinnati Bell, Inc. * * Colt Telecommunications 4 4 Columbus Networks USA, Inc. 1 1 EKU Solutions, LLC * * EPM Telecomunicaciones S.A. E.S.P. 107 5 111 France Telecom Long Distance USA, LLC 9 * 9 Global Caribbean Fiber 90 90 Global Crossing North America, Inc. 15 15 Global Telecom and Technology Americas, Inc 2 2 Golden Holdings, Inc. * * Intelsat USA License Corp. * * KDDI America, Inc. * 10 10 KT America, Inc. 1 1 Level 3 Communications, LLC 30 30 New Edge Networks * * NTT America, Inc. 7 7 Pacifica Telecom Inc. (PTI) 11 1 12 Philippine Long Distance Telephone Co., Ltd. 2 * 2 PREPA.Net International Wholesale Transport * * Qwest Services Corporation 4 4 Reliance Communications, Inc. 236 10 246 Satellite Communication Systems, Inc. * 22 Sierra USA Communications, Inc. * * Smitcoms, Inc. Stratos Holdings, Inc. 2 2 Syniverse Technologies, Inc. 90 90 Telecom Argentina USA, Inc. 6 6 Telecom Colombia USA, Inc. 5 5 Telecom Italia Sparkle of North America, Inc 136 136 Telefonica Larga Distancia, Inc. (TLD) 2 * 2 Telekom Malaysia (USA), Inc. 1 1 Telenor Global Services AS 1 1 Telmex 18 18 Thrane & Thrane Airtime Ltd. * * Tricom USA, Inc. 35 35 Universal Telecom Services, Inc. * * Verizon Communications Inc. 1,111 65 1,176 Viatel Holding (Bermuda) Limited * * * Total All Carriers 2/ $6,459 $363 $4 $7,275 * Represents revenues greater than $0 but less than $500,000. 1/ 2/ Source: International Bureau, International Telecommunications Data . Revenue totals are for Domestic U.S. points (which include Puerto Rico) and Off-shore U.S. points (which include American Samoa, U.S. points and Off-shore U.S. points and calls between Off-shore U.S. points. Thirty one filers that requested confidential treatment and are not listed in this table, but their revenues are included in the totals. Data exclude pure resale services. Data do not show settlement receipts for terminating foreign billed traffic. Guam, the Northern Mariana Islands, and the U.S. Virgin Islands). The totals include $11 million of revenue for calls between Domestic 6 - 6 Table 6.5 Top Providers of Pure Resale International MTS in 2008 Percent Number of Number of U.S. Carrier of Total Messages Minutes Revenues IMTS (Millions) (Millions) ($ Millions) Resale Revenues Allcom Distribution Corp. d/b/a Allcom Telecommunications 78 497 $46 0.66 % STi Prepaid, LLC 20 84 9 0.13 Verizon Communications, Inc. 33 200 21 0.30 Dollar Phone Corp. 219 319 35 0.50 Locus Telecommunications, Inc 8 65 11 0.15 KDDI Corporation 3 15 8 0.11 Sprint Nextel Corporation 25 252 32 0.45 Network Enhanced Telecom, LLP 4 21 11 0.15 Qwest Communications International, Inc. 3 20 14 0.20 Reliance Communications International, Inc 5 34 8 0.11 Total Call 7 74 9 0.13 Epana Networks, Inc. 69 686 86 1.23 Global Crossing North America, Inc. 18 167 38 0.55 Computer Tel, Inc. 282 1,689 539 7.74 NobelTel, LLC 299 3,354 250 3.59 Level 3 Communications, Inc. 16 92 36 0.52 Logical Telecom, LP 280 3,946 113 1.63 Platinum Equity, LLC 522 2,447 87 1.25 Telmex 34 122 20 0.28 Allcom Distribution Corp. d/b/a Allcom Telecommunications 5 51 16 0.23 Telecom Italia Sparkle of North America, Inc 358 2,355 223 3.20 Cox Communications, Inc. 566 1,846 58 0.83 Embarq Communications, Inc. 337 4,120 247 3.55 Belgacom International Carriers Services S.A 82 1,288 52 0.75 CIMA Telecom, Inc. 10 118 11 0.16 One Phone, Inc. 10 72 9 0.12 Virgin Mobile USA, LP 19 179 19 0.28 NovaTel Ltd., Inc. 304 3,248 136 1.95 PaeTec Corporation 46 541 22 0.32 NetworkIP, LLC 86 581 70 1.01 Auris, LLC 6 63 8 0.11 Gold Line Telemanagement, Inc 72 751 24 0.35 NECC Telecom, Inc. 15 158 31 0.44 Hawaiian Telcom Services Company, Inc 44 143 24 0.34 United States Cellular Corporation 37 348 50 0.72 Citizens Communications Company 36 665 14 0.20 Progress International, LLC 1,459 6,921 134 1.93 Redes Modernas de la Frontera SA de CV 10 100 13 0.18 Telscape Communications, Inc. 79 949 129 1.85 Lunex Telecom, Inc. 865 2,254 198 2.85 Cincinnati Bell, Inc. 591 6,466 465 6.69 Cavalier Telephone Corporation 189 775 41 0.58 Communication Technology, Inc. 32 93 8 0.11 VoIP Tel, L.P 10 344 48 0.69 Alltel Communications, Inc. 7 77 12 0.17 MetroPCS, Inc. 303 1,956 126 1.82 Cleartel Communications, Inc. 9 33 14 0.20 Telekom Malaysia (USA), Inc. 694 2,795 264 3.80 CenturyTel, Inc. 17 87 25 0.36 NOS Communications, Inc. 31 243 9 0.13 Total for 66 Companies Requesting Confidential Treatment 3,544 19,918 2,865 41.18 Total for 861 Companies Not Shown Above 1/ 1,262 10,903 283 4.07 Total for all Reporting Carriers 12,393 75,844 $6,959 100.00 % 1/ Data are consolidated for affiliated carriers. A total of 977 carriers made a total of 1,109 filings. Source: International Bureau, International Telecommunications Data . 6 - 7 7 - 1 7 Lines Within the telephone industry there are several alternative, but closely related, definitions of telephone lines or loops. While these differences often make it difficult to reconcile data from different statistical series, they are not usually large enough to affect comparisons among companies or trends over time. Since 1970, over 90% of households and virtually all businesses have subscribed to telephone service. Until 2000, line growth over time, averaging about 3% per year, has historically reflected growth in the population and the economy. Since then, the number of lines provided by wireline carriers has declined, likely due to some consumers substituting wireless service for wireline service, and some households eliminating second lines when they move from dial-up Internet service to broadband service. Table 7.1 shows the nation's total number of telephone lines using three alternative measures. The first measure is the number of end-user switched access lines for both incumbent local exchange carriers (LECs) and competitive local exchange carriers (CLECs) as reported to the Commission on the FCC Form 477. These data undercount lines by a small amount because carriers with less than 10,000 lines in a state were not required to file the FCC Form 477 prior to 2005. The second measure is the number of local loops, which is a way of counting lines that is used to determine the amount of high-cost universal service support provided to eligible telecommunications carriers. The number of local loops includes end-user access lines, lines resold to other carriers and UNE loops with switching (UNE-P). This measure excludes CLEC lines provided over their own facilities. The third measure, access lines, represents estimates for the whole incumbent LEC industry based on data filed with the Commission by large incumbent LECs through the Automated Reporting Management Information System (ARMIS). This measure excludes a substantial number of incumbent LEC lines provided to CLECs as UNE-P lines between 2001 and 2007. Table 7.2 shows the number of local exchange operating areas (study areas – company’s operations in one state) and loops in each state, and shows breakdowns by loops for price-cap and average-schedule companies. 1 Table 7.3 shows the number of loops by holding companies, and Chart 7.1 shows the five largest holding companies’ share of loops. Table 7.4 presents estimates of the number of households that have only wireline telephone service versus those households that have only wireless telephone service. The number of households that have only wireline telephone service declined from 27.9 million in the first half of 2007 to 17.5 million households in the second half of 2009. In contrast, wireless only households increased from 15.9 million households in the first half 1 Average schedule companies have been permitted by the Commission to estimate their access settlements and universal service support through the use of average schedules to avoid the difficulties and expenses involved with conducting company-specific cost studies. 7 - 2 of 2007 to 28.7 million in the second half of 2009. The FCC staff estimates are based on the Center for Disease Control and Prevention’s National Center for Health Statistics survey, and data from the Census Bureau’s Current Population Survey. 2 Tables 7.5 and 7.6 display payphone line information. Long distance carriers are required to pay payphone owners 49 cents for every completed dial-around call (calls where the consumer chooses the long distance carrier over the payphone’s presubscribed long distance carrier). 3 Because of this requirement, several long distance carriers employ the National Payphone Clearinghouse to administer payments on their behalf. On an annual basis, the National Payphone Clearinghouse 4 supplies the FCC with data that allow the number of payphones in each state to be calculated. Table 7.5 shows the number of payphones owned by LECs and by independent payphone operators in each state. The number of payphones is broken down by whether the payphones are served by an RBOC or by another LEC. Payphones located in RBOC territories but served by a CLEC are accounted for in the RBOC territories columns. Similarly, payphones located in non-RBOC territories (i.e., other incumbent LEC territories) but served by a CLEC are accounted for in the all other LEC territories columns. Data for earlier years can be found in earlier editions of Trends. Table 7.6 shows the number of payphones over time. The National Payphone Clearinghouse began providing detailed data to the Commission starting with data as of March 31, 1999. Where possible, data from the payphone proceedings were used to fill values for 1997 and 1998 (see the footnotes to Table 7.6 for citations). 2 Source: Household data are from the Census Bureau’s Current Population Survey. Distribution of wireless versus wireline is from Table 1 of Blumberg SJ, Luke JV. Wireless Substitution: Early Release of Estimates From the National Health Interview Survey, July–December 2009, National Center for Health Statistics, May 2010. Available from: http://www.cdc.gov/nchs/nhis.htm. 3 See Report and Order, CC Docket 03-225, adopted Jul. 27, 2004. 4 Further information on the National Payphone Clearinghouse can be found at https://www.npc.cc/home.aspx. Table 7.1 Total U.S. Wireline Telephone Lines at Year-End (In Thousands) Year End Annual Growth (%) Annual Growth (%) 1980 102,216 1981 105,559 3.3 % 1982 107,519 1.9 1983 110,613 2.9 1984 112,551 1.8 113,832 1985 115,986 3.1 117,385 3.1 % 1986 118,289 2.0 120,730 2.8 1987 122,789 3.8 124,626 3.2 1988 127,087 3.5 126,900 1.8 1989 131,505 3.5 130,860 3.1 1990 136,114 3.5 134,686 2.9 1991 139,413 2.4 139,613 3.7 1992 143,342 2.8 142,367 2.0 1993 148,106 3.3 147,033 3.3 1994 153,448 3.6 151,543 3.1 1995 159,659 4.0 158,153 4.4 1996 166,446 4.3 165,350 4.6 1997 173,867 4.5 173,857 5.1 1998 179,849 3.4 180,516 3.8 1999 189,397 185,003 2.9 186,594 3.4 2000 192,432 1.6 % 188,500 1.9 187,581 0.5 2001 191,571 -0.4 185,587 -1.5 179,811 -4.1 2002 189,250 -1.2 180,095 -3.0 172,246 -4.2 2003 182,933 -3.3 173,141 -3.9 161,374 -6.3 2004 177,691 -2.9 165,980 -4.1 154,039 -4.5 2005 175,161 -1.4 157,038 -5.4 147,993 -3.9 2006 167,460 -4.4 146,843 -6.5 140,029 -5.4 2007 158,437 -5.4 135,790 -7.5 131,586 -6.0 2008 162,627 2.6 122,597 -9.7 121,675 -7.5 1 Includes end-user switched access lines for competitive local exchange carriers (CLECs) and incumbent local exchange carrier (ILECs) as reported in FCC Form 477 through December 2008. Prior to June 2005, only carriers with greater than 10,000 lines in a state were required to report. Beginning in June 2005 all carriers were required to report. Beginning in December 2008, Form 477 required interconnected VoIP service to be reported. Prior to December 2008, individual incumbent LECs and competitive LECs - to a varying and largely unknown degree -included or excluded VoIP. 2 Includes end-user switched access lines, resold lines, and UNE-P lines. 3 Between 2001 and 2007, a substantial number of ILEC lines provided to CLECs as UNE-P lines are not included in the total. Sources: CLEC and ILEC access lines: Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). Local loops: National Exchange Carrier Association, Universal Service Fund filings. Access Lines: Industry Analysis and Technology Division, Wireline Competition Bureau, Statistics of Communications Common Carriers , Table 4.10, after inflating access lines of reporting cariers to represent the total industry. The 1996 adjustment factor was used for the years prior to 1996. 7 - 3 CLEC and ILEC End- User Switched Access Liness and VoIP Subscriptions 1 ILEC Local Loops 2 Annual Growth (%) ILEC Access Lines 3 Table 7.2 Telephone Loops of Incumbent Local Exchange Carriers by State (As of December 31, 2007) Price Cap Non-Price Cap Study Areas Bell Company Loops 1 Other Company Loops Average Schedule Company Loops 2 Other Company Loops Total Loops Alabama 28 1,523,645 256,974 27,869 162,320 1,970,808 Alaska 25 0 0 221 337,393 337,614 American Samoa 1 0 0 0 10,594 10,594 Arizona 17 1,884,555 152,416 0 39,154 2,076,125 Arkansas 28 777,072 0 12,064 373,703 1,162,839 California 22 18,071,665 138,362 0 196,856 18,406,883 Colorado 28 2,011,718 0 1,086 119,233 2,132,037 Connecticut 1 1,709,510 0 0 0 1,709,510 Delaware 1 444,456 0 0 0 444,456 District of Columbia 1 668,803 0 0 0 668,803 Florida 12 6,573,039 1,674,790 0 174,675 8,422,504 Georgia 36 3,074,899 2,419 47,706 749,948 3,874,972 Guam 1 0 0 0 62,004 62,004 Hawaii 2 0 541,852 0 1,876 543,728 Idaho 20 567,563 21,078 1,347 42,884 632,872 Illinois 56 5,687,714 101,207 28,008 183,959 6,000,888 Indiana 42 2,500,130 211,330 29,562 113,540 2,854,562 Iowa 154 799,979 273,137 151,189 69,865 1,294,170 Kansas 39 883,589 98,975 0 121,478 1,104,042 Kentucky 19 882,950 603,367 64,429 117,195 1,667,941 Louisiana 20 1,642,790 0 1,246 158,315 1,802,351 Maine 20 545,264 0 32,300 97,450 675,014 Maryland 2 3,033,677 0 0 6,783 3,040,460 Massachusetts 3 2,965,978 0 0 3,764 2,969,742 Michigan 39 3,965,623 21,254 23,411 144,335 4,154,623 Minnesota 88 1,525,566 365,551 181,783 185,556 2,258,456 Mississippi 19 1,031,779 0 8,774 76,622 1,117,175 Missouri 44 1,978,065 495,586 9,419 276,443 2,759,513 Montana 18 257,952 7,756 3,378 148,117 417,203 Nebraska 40 288,967 293,543 11,457 85,262 679,229 Nevada 14 353,602 691,230 0 32,845 1,077,677 New Hampshire 10 566,144 0 2,194 49,338 617,676 New Jersey 3 4,339,459 169,892 0 7,597 4,516,948 New Mexico 17 687,998 90,977 0 44,567 823,542 New York 44 7,408,210 671,129 8,865 216,047 8,304,251 North Carolina 26 2,076,198 1,142,574 205,494 436,725 3,860,991 North Dakota 22 127,680 0 49,037 108,093 284,810 Northern Mariana Islands 1 0 0 0 18,719 18,719 Ohio 42 3,513,794 1,044,004 34,693 331,450 4,923,941 Oklahoma 39 1,138,519 76,831 2,573 214,095 1,432,018 Oregon 33 1,374,059 75,009 2,505 135,546 1,587,119 Pennsylvania 36 5,023,358 348,012 515,689 221,612 6,108,671 Puerto Rico 2 0 0 0 924,692 924,692 Rhode Island 1 348,325 0 0 0 348,325 South Carolina 26 1,263,278 82,804 54,706 439,059 1,839,847 South Dakota 31 144,278 0 64,169 75,224 283,671 Tennessee 25 1,983,839 298,316 79,684 255,260 2,617,099 Texas 58 8,585,551 589,742 8,528 509,102 9,692,923 Utah 14 828,285 21,872 7,474 62,853 920,484 Vermont 10 301,380 0 4,539 57,355 363,274 Virgin Islands 1 0 0 0 64,964 64,964 Virginia 21 3,139,584 361,934 74,246 36,108 3,611,872 Washington 26 2,440,423 69,904 4,285 228,567 2,743,179 West Virginia 10 698,467 144,954 1,406 14,961 859,788 Wisconsin 90 1,735,356 50,405 166,780 525,016 2,477,557 Wyoming 10 185,933 6,094 0 43,146 235,173 Total 1,438 113,560,668 11,195,280 1,922,116 9,112,265 135,790,329 1 Includes loops owned by Verizon/GTE and SBC/Southern New England Telephone. Source: NECA, Universal Service Fund 2009 Submission of 2007 Study Results (October 1, 2009). 2 Average schedule companies have been permitted by the Commission to estimate their access settlements and universal service support through the use of average schedules to avoid the difficulties and expenses involved with conducting company-specific cost studies. 7 - 4 Table 7.2 Telephone Loops of Incumbent Local Exchange Carriers by State - Continued (As of December 31, 2008) Price Cap Non-Price Cap Study Areas Bell Company Loops 1 Other Company Loops Average Schedule Company Loops 2 Other Company Loops Total Loops Alabama 28 1,367,788 238,546 26,706 156,389 1,789,429 Alaska 25 0 0 216 304,807 305,023 American Samoa 1 0 0 0 10,435 10,435 Arizona 17 1,680,099 141,593 0 38,546 1,860,238 Arkansas 28 703,247 0 11,503 351,068 1,065,818 California 22 16,382,604 125,892 0 174,082 16,682,578 Colorado 28 1,799,321 0 1,040 113,614 1,913,975 Connecticut 1 1,520,344 0 0 0 1,520,344 Delaware 1 399,716 0 0 0 399,716 District of Columbia 1 603,803 0 0 0 603,803 Florida 12 5,726,555 1,467,518 0 164,971 7,359,044 Georgia 36 2,716,616 2,268 42,206 707,138 3,468,228 Guam 1 0 0 0 56,381 56,381 Hawaii 2 0 489,167 0 2,091 491,258 Idaho 20 518,223 19,654 1,297 40,590 579,764 Illinois 56 5,173,033 153,710 26,095 111,323 5,464,161 Indiana 42 2,264,853 197,863 27,755 107,251 2,597,722 Iowa 154 730,742 252,975 141,883 69,236 1,194,836 Kansas 39 793,720 91,271 0 116,942 1,001,933 Kentucky 19 778,293 548,829 61,642 110,701 1,499,465 Louisiana 20 1,518,814 0 1,099 149,504 1,669,417 Maine 20 0 483,998 28,331 88,718 601,047 Maryland 2 2,687,562 0 0 6,469 2,694,031 Massachusetts 3 2,693,252 0 0 3,590 2,696,842 Michigan 39 3,442,719 19,098 23,568 135,197 3,620,582 Minnesota 88 1,384,731 331,962 170,154 178,030 2,064,877 Mississippi 19 937,848 0 8,291 71,979 1,018,118 Missouri 44 1,814,200 466,748 8,964 264,040 2,553,952 Montana 18 231,522 7,619 3,198 142,549 384,888 Nebraska 40 260,036 277,000 11,055 82,398 630,489 Nevada 14 322,286 586,610 0 31,562 940,458 New Hampshire 10 0 489,599 2,155 46,480 538,234 New Jersey 3 3,855,791 155,971 0 6,947 4,018,709 New Mexico 17 625,477 87,522 0 42,652 755,651 New York 44 6,578,650 624,064 8,410 198,990 7,410,114 North Carolina 26 1,854,921 1,049,324 193,867 415,782 3,513,894 North Dakota 22 114,195 0 47,448 105,587 267,230 Northern Mariana Islands 1 0 0 0 17,576 17,576 Ohio 42 3,124,758 959,215 32,543 297,715 4,414,231 Oklahoma 39 1,051,039 72,323 2,442 203,528 1,329,332 Oregon 33 1,219,808 69,195 2,452 129,206 1,420,661 Pennsylvania 36 4,575,642 320,929 480,927 210,473 5,587,971 Puerto Rico 2 0 834,149 0 0 834,149 Rhode Island 1 318,993 0 0 0 318,993 South Carolina 26 1,129,673 77,867 51,602 409,002 1,668,144 South Dakota 31 129,519 0 61,528 73,218 264,265 Tennessee 25 1,768,955 244,434 76,557 239,330 2,329,276 Texas 58 7,876,006 716,734 7,961 347,876 8,948,577 Utah 14 742,087 21,166 7,294 60,983 831,530 Vermont 10 0 271,850 4,446 55,704 332,000 Virgin Islands 1 0 0 0 62,514 62,514 Virginia 21 2,826,151 345,558 71,193 34,726 3,277,628 Washington 26 2,160,053 66,585 4,132 214,023 2,444,793 West Virginia 10 634,698 141,560 1,422 14,876 792,556 Wisconsin 90 1,562,872 47,511 159,633 493,351 2,263,367 Wyoming 10 169,192 5,733 0 41,421 216,346 Total 1,438 100,770,407 12,503,610 1,811,015 7,511,561 122,596,593 1 Includes loops owned by Verizon/GTE and SBC/Southern New England Telephone. Source: NECA, Universal Service Fund 2009 Submission of 2008 Study Results (October 1, 2009), and NECA's Non-Rural Wire Center Data as of December 31, 2008. 2 Average schedule companies have been permitted by the Commission to estimate their access settlements and universal service support through the use of average schedules to avoid the difficulties and expenses involved with conducting company-specific cost studies. 7 - 5 Table 7.3 (As of December 31, 2007) Holding Companies Loops Percent of Loops AT&T Inc. 60,827,401 44.80 % Verizon Communications Inc. 40,718,592 29.99 Qwest Communications International, Inc. 12,014,675 8.85 Embarq 6,147,117 4.53 Windstream Corporation 2,964,396 2.18 Citizens Communications Company 2,181,905 1.61 CenturyTel, Inc. 2,101,532 1.55 America Movil 924,692 0.68 Cincinnati Bell Inc. 729,320 0.54 Telephone and Data Systems, Inc. 589,696 0.43 Hawaiian Telcom Communications, Inc. 541,852 0.40 Consolidated Communications, Inc. 270,398 0.20 FairPoint Communications, Inc. 232,840 0.17 Iowa Telecom 228,387 0.17 Alaska Communications Systems Holdings, Inc. 213,795 0.16 D & E Communications, Inc. 123,754 0.09 SureWest Communications 110,063 0.08 North-State Telephone Co. (NC) 100,840 0.07 Rock Hill Telephone Company 99,609 0.07 Horry Telephone Cooperative, Inc. 90,009 0.07 Hargray Communications Group, Inc. 72,976 0.05 Farmers Telephone Cooperative, Inc. 70,894 0.05 Virgin Islands Telephone Corporation 64,964 0.05 TeleGuam Holdings LLC 62,004 0.05 Matanuska Telephone Association, Inc. 57,304 0.04 Pioneer Telephone Cooperative (OK) 52,154 0.04 Hickory Tech Corporation 50,210 0.04 Lynch Interactive Corporation 48,409 0.04 NTELOS, Inc. 43,886 0.03 Atlantic Telephone Membership Corporation 42,895 0.03 Guadalupe Valley Telephone Cooperative, Inc. 40,969 0.03 Golden West Telecommunications Cooperative, Inc. 40,893 0.03 Twin Lakes Telephone Cooperative Corporation 37,240 0.03 SRT Services Corporation 37,096 0.03 Skyline Telephone Membership Corporation 35,746 0.03 EATEL Corp., Inc. 35,202 0.03 Otelco Inc. 34,733 0.03 Ben Lomand 34,149 0.03 All Other Companies 3,717,732 2.74 Total 135,790,329 100.00 % Telephone Loops of Incumbent Local Exchange Carriers by Holding Company 1 1 Includes incumbent local exchange carriers' loops for holding companies with more than 32,500 loops. Five Largest Holding Companies' Share of Loops as of December 31, 2007 Chart 7.1 Source: NECA, Universal Service Fund 2009 Submission of 2007 Study Results (October 1, 2009). AT&T Inc. 44.8% Qwest 8.8% Windstream 2.2% Verizon 30.0% Embarq 4.5% All Others 9.7% 7 - 6 Table 7.3 (As of December 31, 2008) Holding Companies Loops Percent of Loops AT&T Inc. 54,748,156 44.66 % Verizon Communications Inc. 35,252,762 28.76 Qwest Communications International, Inc. 10,769,489 8.78 Embarq 5,507,418 4.49 Windstream Corporation 2,817,678 2.30 CenturyTel, Inc. 1,967,338 1.60 Frontier Communications Corporation 1,718,677 1.40 FairPoint Communications, Inc. 1,459,312 1.19 America Movil 834,149 0.68 Cincinnati Bell Inc. 679,326 0.55 Telephone and Data Systems, Inc. 567,754 0.46 Hawaiian Telcom Communications, Inc. 489,167 0.40 Citizens Communications Company 310,627 0.25 Consolidated Communications, Inc. 247,020 0.20 Iowa Telecom 222,579 0.18 Alaska Communications Systems Holdings, Inc. 188,815 0.15 D & E Communications, Inc. 118,346 0.10 Rock Hill Telephone Company 113,085 0.09 North-State Telephone Co. (NC) 92,834 0.08 SureWest Communications 91,404 0.07 Horry Telephone Cooperative, Inc. 82,755 0.07 Farmers Telephone Cooperative, Inc. 67,170 0.05 Hargray Communications Group, Inc. 66,722 0.05 Virgin Islands Telephone Corporation 62,514 0.05 TeleGuam Holdings LLC 56,381 0.05 Matanuska Telephone Association, Inc. 52,718 0.04 Otelco Inc. 49,883 0.04 Pioneer Telephone Cooperative (OK) 49,533 0.04 Lynch Interactive Corporation 46,162 0.04 Hickory Tech Corporation 45,535 0.04 Atlantic Telephone Membership Corporation 41,854 0.03 NTELOS, Inc. 41,443 0.03 Golden West Telecommunications Cooperative, Inc. 39,787 0.03 Guadalupe Valley Telephone Cooperative, Inc. 39,684 0.03 Twin Lakes Telephone Cooperative Corporation 36,105 0.03 SRT Services Corporation 35,622 0.03 Skyline Telephone Membership Corporation 34,807 0.03 EATEL Corp., Inc. 34,024 0.03 Ben Lomand 33,156 0.03 All Other Companies 3,484,802 2.84 Total 122,596,593 100.00 % Telephone Loops of Incumbent Local Exchange Carriers by Holding Company - Continued 1 1 Includes incumbent local exchange carriers' loops for holding companies with more than 32,500 loops. Five Largest Holding Companies' Share of Loops as of December 31, 2008 Chart 7.2 Source: NECA, Universal Service Fund 2009 Submission of 2008 Study Results (October 1, 2009), and NECA's Non-Rural Wire Center Data as of December 31, 2008. AT&T Inc. 44.7% Qwest 8.8% Windstream 2.3% Verizon 28.8% Embarq 4.5% All Others 11.0% 7 - 7 Table 7.4 Distribution of Households with Wireless and Wireline Telephone Service Households In Millions Year Period Wireline Only Wireless Only Both Wireline and Wireless Wireline and Wireless Unknown No Telephone Service 1 Total Households 2007 1st Half 28.0 16.0 69.3 2.0 2.4 117.7 2007 2nd Half 25.7 18.6 69.2 1.5 2.7 118.2 2008 1st Half 24.2 20.6 68.9 1.1 2.9 118.0 2008 2nd Half 20.5 23.8 70.1 1.1 2.2 118.6 2009 1st Half 18.2 26.7 69.9 0.5 2.4 118.4 2009 2nd Half 17.5 28.8 68.5 0.5 2.4 119.2 Year Period Wireline Only Wireless Only Both Wireline and Wireless Wireline and Wireless Unknown No Telephone Service 1 Total Households 2007 1st Half 23.8% 13.6% 58.9% 1.7% 2.0% 100.0% 2007 2nd Half 21.8 15.8 58.8 1.3 2.3 100.0 2008 1st Half 20.6 17.5 58.5 0.9 2.5 100.0 2008 2nd Half 17.4 20.2 59.6 0.9 1.9 100.0 2009 1st Half 15.5 22.7 59.4 0.4 2.0 100.0 2009 2nd Half 14.9 24.5 58.2 0.4 2.0 100.0 Percentage Source: Household data are from the Censu Bureau's Current Population Survey. Distribution of wireless versus wireline is from Table 1 of Blumberg SJ, Luke JV. Wireless Substitution: Early Release of Estimates from the National Health Interview Survey, July–December 2009, National Center for Health Statistics (NCHS), May 2010. Available from: http://www.cdc.gov/nchs/nhis.htm and from FCC staff estimates. 1 Includes households reporting "no telephone service" and households reporting "nonlandline with unknown wireless telephone status" in the NCHS report. 7 - 8 Table 7.5 Number of Payphones Owned by LECs and Independent Operators (As of March 31, 2008) RBOC Territories All Other LEC Territories Grand State LEC-Owned Independent LEC-Owned Independent LEC-Owned Independent Total Alabama 13 5,864 120 215 133 6,079 6,212 Alaska 0 0 1,886 1,744 1,886 1,744 3,630 Arizona 59 12,362 725 834 784 13,196 13,980 Arkansas 191 1,981 592 364 783 2,345 3,128 California 29,079 65,557 953 739 30,032 66,296 96,328 Colorado 0 8,164 23 37 23 8,201 8,224 Connecticut 2,665 2,767 0 0 2,665 2,767 5,432 Delaware 1,411 1,005 0 0 1,411 1,005 2,416 District of Columbia 3,468 488 0 0 3,468 488 3,956 Florida 4,186 21,591 4,877 3,758 9,063 25,349 34,412 Georgia 107 11,394 1,681 1,635 1,788 13,029 14,817 Hawaii 0 0 5,251 452 5,251 452 5,703 Idaho 364 1,620 218 97 582 1,717 2,299 Illinois 8,262 13,562 527 608 8,789 14,170 22,959 Indiana 3,800 6,113 1,030 498 4,830 6,611 11,441 Iowa 15 3,406 536 670 551 4,076 4,627 Kansas 430 2,422 483 340 913 2,762 3,675 Kentucky 8 3,696 1,944 1,878 1,952 5,574 7,526 Louisiana 13 5,949 31 128 44 6,077 6,121 Maine 2,833 391 12 174 2,845 565 3,410 Maryland 13,605 4,197 0 6 13,605 4,203 17,808 Massachusetts 15,155 6,287 0 0 15,155 6,287 21,442 Michigan 4,547 9,559 268 146 4,815 9,705 14,520 Minnesota 31 6,149 1,153 664 1,184 6,813 7,997 Mississippi 21 3,974 48 50 69 4,024 4,093 Missouri 1,392 4,504 994 1,270 2,386 5,774 8,160 Montana 43 1,402 288 221 331 1,623 1,954 Nebraska 0 1,844 2,304 498 2,304 2,342 4,646 Nevada 82 1,221 1,268 5,201 1,350 6,422 7,772 New Hampshire 2,541 1,029 73 5 2,614 1,034 3,648 New Jersey 27,298 8,710 767 57 28,065 8,767 36,832 New Mexico 0 3,774 213 627 213 4,401 4,614 New York 60,922 26,219 6,539 1,196 67,461 27,415 94,876 North Carolina 918 7,092 5,536 4,359 6,454 11,451 17,905 North Dakota 0 520 74 111 74 631 705 Ohio 5,604 7,947 4,048 1,736 9,652 9,683 19,335 Oklahoma 964 3,590 907 425 1,871 4,015 5,886 Oregon 603 6,848 322 478 925 7,326 8,251 Pennsylvania 18,120 10,852 5,194 1,038 23,314 11,890 35,204 Rhode Island 1,944 1,337 0 0 1,944 1,337 3,281 South Carolina 503 6,082 916 1,012 1,419 7,094 8,513 South Dakota 1 1,087 279 109 280 1,196 1,476 Tennessee 5 7,447 1,244 1,010 1,249 8,457 9,706 Texas 10,606 30,642 1,102 2,466 11,708 33,108 44,816 Utah 2 3,333 229 333 231 3,666 3,897 Vermont 1,380 198 35 51 1,415 249 1,664 Virginia 12,976 7,082 1,484 921 14,460 8,003 22,463 Washington 1,684 12,719 241 355 1,925 13,074 14,999 West Virginia 3,925 938 553 320 4,478 1,258 5,736 Wisconsin 1,840 4,111 559 441 2,399 4,552 6,951 Wyoming 1 1,282 22 75 23 1,357 1,380 Totals 243,617 360,308 57,549 39,352 301,166 399,660 700,826 Source: Raw data provided by National Payphone Clearinghouse. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. Statewide 7 - 9 Table 7.5 Number of Payphones Owned by LECs and Independent Operators - Continued (As of March 31, 2009) RBOC Territories All Other LEC Territories Grand State LEC-Owned Independent LEC-Owned Independent LEC-Owned Independent Total Alabama 13 4,644 1,068 644 1,081 5,288 6,369 Alaska 0 0 1,681 688 1,681 688 2,369 Arizona 71 10,999 699 614 770 11,613 12,383 Arkansas 0 1,583 1,321 381 1,321 1,964 3,285 California 13,199 57,910 879 593 14,078 58,503 72,581 Colorado 12 7,056 179 217 191 7,273 7,464 Connecticut 105 2,883 0 0 105 2,883 2,988 Delaware 967 582 0 0 967 582 1,549 District of Columbia 2,767 351 0 0 2,767 351 3,118 Florida 2,774 17,403 2,654 3,554 5,428 20,957 26,385 Georgia 83 9,204 1,627 1,475 1,710 10,679 12,389 Hawaii 0 0 5,171 378 5,171 378 5,549 Idaho 276 1,492 242 85 518 1,577 2,095 Illinois 1,618 14,905 801 248 2,419 15,153 17,572 Indiana 1,973 5,473 606 405 2,579 5,878 8,457 Iowa 14 2,932 474 528 488 3,460 3,948 Kansas 4 2,028 260 216 264 2,244 2,508 Kentucky 8 2,718 1,774 1,531 1,782 4,249 6,031 Louisiana 13 4,532 160 181 173 4,713 4,886 Maine 0 2,776 35 172 35 2,948 2,983 Maryland 10,874 3,560 0 0 10,874 3,560 14,434 Massachusetts 12,269 5,295 0 0 12,269 5,295 17,564 Michigan 1,036 7,571 565 190 1,601 7,761 9,362 Minnesota 161 4,859 900 424 1,061 5,283 6,344 Mississippi 21 2,952 68 93 89 3,045 3,134 Missouri 48 3,727 1,694 1,275 1,742 5,002 6,744 Montana 41 1,175 363 242 404 1,417 1,821 Nebraska 0 1,270 2,112 349 2,112 1,619 3,731 Nevada 26 1,028 1,433 3,341 1,459 4,369 5,828 New Hampshire 0 3,106 70 27 70 3,133 3,203 New Jersey 22,361 6,829 389 39 22,750 6,868 29,618 New Mexico 1 3,180 160 468 161 3,648 3,809 New York 51,659 21,018 6,196 806 57,855 21,824 79,679 North Carolina 719 5,855 3,874 3,879 4,593 9,734 14,327 North Dakota 0 309 64 97 64 406 470 Ohio 1,555 7,498 3,489 1,412 5,044 8,910 13,954 Oklahoma 9 3,240 693 211 702 3,451 4,153 Oregon 422 6,340 406 500 828 6,840 7,668 Pennsylvania 13,709 8,108 4,307 728 18,016 8,836 26,852 Rhode Island 1,554 1,234 0 0 1,554 1,234 2,788 South Carolina 395 4,797 771 775 1,166 5,572 6,738 South Dakota 4 826 239 96 243 922 1,165 Tennessee 5 6,132 887 909 892 7,041 7,933 Texas 3,097 25,973 1,236 1,951 4,333 27,924 32,257 Utah 7 3,372 196 182 203 3,554 3,757 Vermont 0 1,488 34 37 34 1,525 1,559 Virginia 9,155 5,216 914 713 10,069 5,929 15,998 Washington 1,212 9,350 373 609 1,585 9,959 11,544 West Virginia 3,149 767 504 214 3,653 981 4,634 Wisconsin 438 3,992 2,541 937 2,979 4,929 7,908 Wyoming 0 1,038 43 162 43 1,200 1,243 Totals 157,824 310,576 54,152 32,576 211,976 343,152 555,128 Source: Raw data provided by National Payphone Clearinghouse. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. Statewide 7 - 10 All Other LECs' Territories Grand Year LEC-Owned Independent Total LEC Owned Independent Total LEC Owned Independent Total 1997 1,399,600 1 NA NA NA NA NA NA NA 2,086,540 2 1998 1,381,800 1 NA NA NA NA NA NA NA 2,100,558 2 1999 1,305,463 572,503 1,877,966 80,491 163,069 243,560 1,385,954 735,572 2,121,526 2000 1,244,535 633,022 1,877,557 63,808 122,353 186,161 1,308,343 755,375 2,063,718 2001 1,131,377 571,778 1,703,155 88,399 128,086 216,485 1,219,776 699,864 1,919,640 2002 964,999 531,801 1,496,800 95,639 118,622 214,261 1,060,638 650,423 1,711,061 2003 854,295 464,479 1,318,774 75,885 101,127 177,012 930,180 565,606 1,495,786 2004 737,146 455,506 1,192,652 78,642 73,705 152,347 815,788 529,211 1,344,999 2005 587,373 486,384 1,073,757 78,815 63,603 142,418 666,188 549,987 1,216,175 2006 444,649 453,283 897,932 59,197 49,673 108,870 503,846 502,956 1,006,802 2007 334,117 413,074 747,191 61,009 64,056 125,065 395,126 477,130 872,256 2008 243,617 360,308 603,925 57,549 39,352 96,901 301,166 399,660 700,826 2009 157,824 310,576 468,400 54,152 32,576 86,728 211,976 343,152 555,128 NA - Not Available. Table 7.6 Number of Payphones Over Time (As of March 31 of Each Year) Source: Unless otherwise noted, raw data provided by National Payphone Clearinghouse. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. 1 See RBOC/GTE/SNET Payphone Coalition Comments on Remand Issues in CC Docket No. 96-128, Report of Arthur Andersen on Per- Call Compensation, Carl R. Geppert at 10 (July 13, 1998). 2 See Letter from Denny Reuss, NPC Product Manager, to Craig Stroup, Federal Communications Commission, CC Docket 96-128 at 1 (Filed October 22, 1998. The 1997 data point is as of June 30, 1997.) RBOCs' Territories 7 - 11 8 - 1 8 Local Telephone Competition For most of the past century, households and businesses had no choice in selecting their local telephone company. In the 1980s, competitive access providers (CAPs) began to market access services provided over CAPs’ wired networks to business customers. To some extent they also carried local telephone calls among their customers. In the 1990s, some CAPs and other companies, including affiliates of cable television companies and local service divisions of long distance companies, began to offer local telephone services to a broader range of customers. Companies with operations in larger cities added operations in smaller cities, where the typical customer is more likely to be a small or medium-sized business than a large business, and some new companies focused on smaller cities from the beginning. These competitors are often called competitive local exchange carriers (CLECs), although the terms CAPs and CLECs are sometimes used interchangeably. The Telecommunications Act of 1996 (1996 Act) contemplated three vehicles for competitors to enter local telephone service markets. First, CLECs may resell the services of incumbent local exchange carriers (ILECs). Second, CLECs may make use of ILEC facilities, for example, by leasing ILEC unbundled network elements (UNEs) loops and transport. Third, CLECs may build the complete set of facilities they need to compete. Individual CLECs have used various combinations of these methods at different times. Since about 2002, cable companies and others have begun offering retail interconnected Voice over Internet Protocol (interconnected VoIP) service, which enables voice communications over a broadband connection and allows users both to receive calls from, and place calls to, the public switched telephone network, like traditional phone service. The service represents a rapidly growing part of the U.S. voice services market. Providers include companies like Vonage as well as cable and telephone companies that own their own networks. 1. Non-ILEC Share of Switched Access Lines and Interconnected VoIP Subscriptions All ILECs and non-ILECs (collectively, CLECs and those interconnected VoIP providers who do not have ILEC regulatory status) were required to report to the Commission basic information about their local telephone and interconnected VoIP services starting in December 2008. From June 2005 through June 2008, only local exchange carriers were required to report. 1 From December 1999 through December 1 Prior to the December 2008 data, companies that solely provide interconnected VoIP service did not file Form 477. Local exchange carriers were required to file Form 477, but were not required to report interconnected VoIP subscriptions. However, some local exchange carriers chose to include interconnected VoIP subscriptions in the number of retail (end-user) switched access lines that they reported. 8 - 2 2004, only local exchange carriers with at least 10,000 switched access lines in service in a particular state were required to report. Small carriers, many of whom serve rural areas with relatively small populations, were therefore underrepresented in those data. 2 Table 8.1 and the associated chart show the number of ILEC and non-ILEC end- user switched access lines and interconnected VoIP subscriptions from December 1999 through December 2008. Table 8.2 and the associated chart show the relative shares of the residential end-user switched access lines and interconnected VoIP subscriptions provisioned by ILECs and non-ILECs from December 1999 through December 2008. Table 8.3 shows the percentages of non-ILEC end-user access lines and interconnected VoIP subscriptions that were provisioned over CLEC-owned local loop facilities, over lines acquired from unaffiliated carriers, and as interconnected VoIP, from December 1999 through December 2008. Chart 8.3 displays that information graphically for December 2008. Data reported by ILECs, presented in Table 8.4, show the lines that ILECs provided to other carriers as UNE loops provided with ILEC switching (including the UNE-platform), UNE loops provided without switching, and resale. Chart 8.4 shows the trend, from December 1999 through December 2008, of ILEC total switched access lines and the percentages provided to other carriers. Table 8.5 shows ILEC and non-ILEC end-user switched access lines and interconnected VoIP subscriptions by state as of December 31, 2008. Tables 8.6 and 8.7 present similar data for residential and business end-user switched access lines and interconnected VoIP subscriptions. Table 8.8 presents historical data on non-ILEC share of total end-user switched access lines and interconnected VoIP subscriptions by state. 2. New Competitors Share of Local Telephone Service Revenues As discussed in Section 15, the Commission has been collecting revenue data from local exchange carriers since 1993. Table 8.9 shows new competitors and ILEC local telephone service revenues from 1997 through 2007. Chart 8.5 shows the ILEC and new competitor’s shares of local service revenues from 1998 through 2007. 3. Ported Telephone Numbers When telecommunications customers switch service providers, they have the option of taking their local telephone number with them. This is called porting. All ported numbers reside in one of seven regional databases. These databases contain several elements of information about ported numbers, including identifiers for the old and new carriers, and the date the number was ported. The porting databases are 2 As of December, 2005, filers with fewer than 10,000 switched access lines in a state (including entities that previously filed on a voluntary basis) reported about 4.5 million lines (about 2.0 million ILEC lines and about 2.5 million CLEC lines). 8 - 3 overseen by the local number portability administrator, currently NeuStar, Inc. NeuStar provides the FCC with two sets of information on ported numbers. The first set of information is a rollup of the quantity of telephone numbers that were ported each month. This information forms the basis for Table 8.10. Unlike Tables 8.11 and 8.12 (see footnote 2 in Table 8.12), these figures include instances where the customer ports the number back to the original carrier. The second set of information that the FCC receives from NeuStar on a monthly basis is a current list of all ported numbers where the customer changed carriers. For each number, the list includes identifiers for the old and new carriers for that number, and the date the number was ported. In order to protect consumer privacy, the Commission receives the information in a manner that prevents it from determining if any particular telephone number has been ported. This information forms the basis for Tables 8.11 and 8.12. Table 8.11 shows the quantities of ports in the porting databases at the end of each quarter. The ports are broken out by service type: from landline to landline, landline to mobile, mobile to mobile, and mobile to landline. Table 8.12 examines the ports in the databases as of March 31, 2009. It shows, by service type, when each number in the database was ported. ILEC Non-ILEC Dec 1999 181,203 8,194 189,397 4.3 % Jun 2000 179,649 11,557 191,206 6.0 Dec 2000 177,561 14,871 192,432 7.7 Jun 2001 174,752 17,275 192,027 9.0 Dec 2001 171,917 19,653 191,571 10.3 Jun 2002 167,330 21,645 188,975 11.5 Dec 2002 164,386 24,864 189,250 13.1 Jun 2003 158,275 26,985 185,260 14.6 Dec 2003 153,158 29,775 182,933 16.3 Jun 2004 147,993 32,034 180,027 17.8 Dec 2004 144,810 32,881 177,691 18.5 Jun 2005 143,758 33,975 177,733 19.1 Dec 2005 143,773 31,388 175,161 17.9 Jun 2006 142,293 29,896 172,189 17.4 Dec 2006 138,834 28,626 167,460 17.1 Jun 2007 134,640 28,729 163,369 17.6 Dec 2007 129,693 28,725 158,418 18.1 Jun 2008 124,606 30,049 154,655 19.4 Dec 2008 118,503 43,726 162,230 27.0 Table 8.1 End-User Switched Access Lines and VoIP Subscriptions 1 End-User Switched Access Lines and VoIP Subscriptions Chart 8.1 (In Thousands) 1 Only incumbent local exchange carriers (ILECs) and competitive local exchange carriers (CLECs) with at least 10,000 retail or wholesale switched access lines in service in a state were required to report through December 2004. All were required to report June 2005 and later data. Providers of interconnected VoIP service were first required to report subscribers as of December 2008, and individual ILECs and CLECs, to a varying and largely unknown degree, included or excluded VoIP subscribers in the earlier data. Interconnected VoIP is distinguished from VoIP service more generally by permitting users to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. See 47 C.F.R. ง 9.3. Form 477 counts both switched access lines and interconnected VoIP subscriptions as the maximum number of calls that may be active, simultaneously, from the end user’s location under the purchased service plan. Provided by Date Total Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). Non-ILEC Share (In Millions) 0 20 40 60 80 100 120 140 160 180 200 ILEC Non-ILEC Non-ILEC 8.2 11.6 14.9 17.3 19.7 21.6 24.9 27.0 29.8 32.0 32.9 34.0 31.4 29.9 28.6 28.7 28.7 30.0 43.7 ILEC 181.2 179.6 177.6 174.8 171.9 167.3 164.4 158.3 153.2 148.0 144.8 143.8 143.8 142.3 138.8 134.6 129.7 124.6 118.5 Dec 1999 Jun 2000 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Dec 2002 Jun 2003 Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 8 - 5 Dec 1999 139,694 41,508 77.1 % 3,369 4,826 41.1 % Jun 2000 140,566 39,083 78.2 4,580 6,978 39.6 Dec 2000 138,824 38,737 78.2 6,620 8,251 44.5 Jun 2001 134,531 40,221 77.0 7,793 9,482 45.1 Dec 2001 133,320 38,597 77.5 9,489 10,164 48.3 Jun 2002 130,937 36,393 78.3 11,081 10,564 51.2 Dec 2002 127,495 36,892 77.6 14,608 10,255 58.8 Jun 2003 122,574 35,701 77.4 16,771 10,215 62.1 Dec 2003 118,659 34,499 77.5 18,702 11,073 62.8 Jun 2004 114,533 33,460 77.4 20,872 11,162 65.2 Dec 2004 112,054 32,755 77.4 19,812 13,069 60.3 Jun 2005 95,316 48,442 66.3 16,338 17,637 48.1 Dec 2005 94,393 49,381 65.7 13,873 17,515 44.2 Jun 2006 92,453 49,840 65.0 12,474 17,422 41.7 Dec 2006 89,167 49,667 64.2 12,211 16,415 42.7 Jun 2007 85,633 49,007 63.6 12,117 16,612 42.2 Dec 2007 81,798 47,894 63.1 12,051 16,675 42.0 Jun 2008 77,457 47,149 62.2 12,396 17,654 41.3 Dec 2008 72,785 45,718 61.4 24,634 19,092 56.3 Table 8.2 End-User Switched Access Lines and VoIP Subscriptions by Customer Type 1 Reporting Non-ILECsReporting ILECs Date (In Thousands) Percent of Lines and VoIP Subscriptions that Serve Residential Customers 1 Chart 8.2 % ResidentialBusiness 1 In 2004, the Commission modified instructions for reporting lines serving small businesses. They were counted with residential lines through December 2004 and with business lines thereafter. This change caused a one-time drop in the percentages of ILEC and CLEC lines reported as residential. The December 2008 data are the first for which comprehensive reporting of interconnected VoIP subscribers was required. See footnote 1, Table 8.1. Business Residential % Residential Residential Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). 0% 10% 20% 30% 40% 50% 60% 70% 80% ILECs Non-ILECs ILECs 77.1% 78.2% 78.2% 77.0% 77.5% 78.3% 77.6% 77.4% 77.5% 77.4% 77.4% 66.3% 65.7% 65.0% 64.2% 63.6% 63.1% 62.2% 61.4% Non-ILECs 41.1% 39.6% 44.5% 45.1% 48.3% 51.2% 58.8% 62.1% 62.8% 65.2% 60.3% 48.1% 44.2% 41.7% 42.7% 42.2% 42.0% 41.3% 56.3% Dec 1999 Jun 2000 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Dec 2002 Jun 2003 Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 8 - 6 81 8,194 3,513 1,959 2,723 - 42.9% 23.9% 33.2% - 78 11,557 4,315 3,201 4,042 - 37.3 27.7 35.0 - 89 14,871 4,114 5,540 5,217 - 27.7 37.3 35.1 - 91 17,275 3,919 7,580 5,776 - 22.7 43.9 33.4 - 94 19,653 4,250 9,332 6,072 - 21.6 47.5 30.9 - 96 21,645 4,478 10,930 6,236 - 20.7 50.5 28.8 - 112 24,864 4,677 13,709 6,479 - 18.8 55.1 26.1 - 125 26,985 4,887 15,728 6,370 - 18.1 58.3 23.6 - 136 29,775 4,842 17,888 7,045 - 16.3 60.1 23.7 - 137 32,034 4,927 19,624 7,483 - 15.4 61.3 23.4 - 149 32,881 5,417 18,961 8,503 - 16.5 57.7 25.9 - 326 33,975 5,826 19,025 9,124 - 17.1 56.0 26.9 - 382 31,388 6,704 14,521 10,163 - 21.4 46.3 32.4 - 400 29,896 6,548 12,547 10,802 - 21.9 42.0 36.1 - 397 28,626 5,819 11,663 11,144 - 20.3 40.7 38.9 - 406 28,729 6,193 11,511 11,025 - 21.6 40.1 38.4 - 443 28,725 6,430 10,582 11,713 - 22.4 36.8 40.8 - 469 30,049 6,073 10,884 13,093 - 20.2 36.2 43.6 - 701 43,726 7,065 9,597 6,338 20,726 16.2 21.9 14.5 47.4% 3 Lines provided over CLEC-owned "last-mile" facilities. Chart 8.3 Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). Dec 2007 Jun 2002 Jun 2003 Jun 2007 Dec 2006 Non-ILEC End-User Switched Access Lines and VoIP Subscriptions Dec 2008 VoIP Jun 2008 Resold LEC service ILEC UNEs CLEC- owned local loops Dec 2003 2 Includes unbundled network element (UNE) loops leased from an unaffiliated ILEC on a stand-alone basis and also UNE loops leased in combination with UNE switching or any other unbundled network element. Dec 2001 Table 8.3 End-User Switched Access Lines and VoIP Subscriptions Reported by Non-ILECs 1 (Lines and Subscriptions in Thousands) Acquired from other LECs Percent CLEC- owned local loops 3 End-User Switched Access Lines Date ILEC UNEs 2 VoIP 1 See footnote 1, Table 8.1. Resold LEC service Dec 2000 Jun 2004 Dec 1999 Jun 2000 Dec 2002 Dec 2004 Jun 2001 End-User Switched Access Lines and VoIP Subscriptions Dec 2005 Reporting Non- ILECs Jun 2005 Jun 2006 Resold LEC service 16.2% ILEC UNEs 21.9% CLEC-owned local loops 14.4% VoIP 47.4% 8 - 7 Dec 1999 168 187,190 181,203 - 4,494 1,004 489 1,493 5,987 3.2 % Jun 2000 159 188,058 179,679 - 5,098 1,696 1,616 3,312 8,409 4.5 Dec 2000 166 188,223 177,561 - 5,388 2,436 2,838 5,274 10,662 5.7 Jun 2001 156 187,092 174,752 - 4,417 3,161 4,761 7,922 12,340 6.6 Dec 2001 164 185,391 171,917 - 4,014 3,679 5,781 9,460 13,474 7.3 Jun 2002 166 182,345 167,330 - 3,475 4,061 7,478 11,540 15,015 8.2 Dec 2002 174 181,616 164,386 - 2,743 4,259 10,227 14,487 17,229 9.5 Jun 2003 181 177,770 158,275 - 2,232 4,227 13,036 17,263 19,495 11.0 Dec 2003 185 174,453 153,158 - 1,833 4,287 15,176 19,463 21,296 12.2 Jun 2004 185 171,050 147,993 - 1,600 4,322 17,136 21,458 23,057 13.5 Dec 2004 190 167,063 144,810 - 1,490 4,217 16,546 20,763 22,253 13.3 Jun 2005 757 164,449 143,758 - 1,796 4,300 14,596 18,895 20,691 12.6 Dec 2005 807 160,881 143,773 - 1,793 4,469 10,846 15,315 17,108 10.6 Jun 2006 805 156,872 142,293 - 1,723 4,413 8,443 12,856 14,579 9.3 Dec 2006 814 151,958 138,834 - 1,613 4,408 7,103 11,511 13,124 8.6 Jun 2007 816 146,672 134,640 - 1,517 4,285 6,230 10,515 12,032 8.2 Dec 2007 805 140,808 129,693 - 1,460 4,122 5,534 9,655 11,115 7.9 Jun 2008 800 134,846 124,606 - 1,473 3,827 4,941 8,768 10,241 7.6 Dec 2008 780 128,295 117,975 529 3,209 3,844 2,740 6,583 9,792 7.6 Table 8.4 ILEC End-User (Retail) and Wholesale Switched Access Lines, VoIP Subscriptions, and UNEs 1 (Lines, Subscriptions, and UNEs in Thousands) UNEs Date End-User Switched Access Lines Reporting ILECs 2 % of Total Lines Switched Access Lines and UNEs Provided to CLECs ILEC Total Lines and the Percent Provided to CLECs ILEC Total Lines 3 Without Switching VoIP Total UNEs & Resold Lines Resold Lines With Switching 4 Total UNEs 3 This figure is the sum of ILEC-reported end-user (retail) switched access lines, ILEC interconnected VoIP subscriptions, and ILEC wholesale switched access lines and UNEs provided to CLECs. 1 See footnote 1, Table 8.1. Figures may not add to totals due to rounding. Chart 8.4 2 Fewer ILECs were counted for year-end 2008 than year-end 2007 primarily because FCC staff identified additional common-control relationships among filers. 4 ILEC loops provided with ILEC switching, including the combination of ILEC loop UNE, switching UNE, and transport UNE, collectively referred to as the UNE-Platform ("UNE-P"). The Commission directed CLECs to migrate their retail customers served by these methods to an alternative arrangement by March 11, 2006, i.e., within 12 months of the effective data of the Triennial Review Remand Order . See C.F.R. ง 51.319(d)(2)(ii). Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 Dec 1999 Jun 2000 Dec 2000 Jun 2001 Dec 2001 Jun 2002 Dec 2002 Jun 2003 Dec 2003 Jun 2004 Dec 2004 Jun 2005 Dec 2005 Jun 2006 Dec 2006 Jun 2007 Dec 2007 Jun 2008 Dec 2008 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% ILEC Total Lines Percent Provided to CLECs 8 - 8 Alabama 1,745 # # 1,746 307 57 95 460 2,205 21% Alaska 289 0 0 289 * 1 **** American Samoa 10 0 0 10 0000100 Arizona 1,847 # # 1,847 956 73 175 1,204 3,051 39 Arkansas 1,018 # 3 1,021 143 19 61 223 1,245 18 California 16,274 6 66 16,345 2,464 413 1,659 4,536 20,882 22 Colorado 1,873 0 0 1,873 430 88 320 838 2,711 31 Connecticut 1,515 1 24 1,540 247 45 333 625 2,165 29 Delaware 379 # 1 380 79 * * 164 544 30 District of Columbia 733 # 4 737 131 12 38 182 919 20 Florida 7,395 4 40 7,440 1,179 385 1,125 2,690 10,130 27 Georgia 3,465 2 2 3,468 622 158 376 1,157 4,626 25 Guam 54 0 0 54 ****** Hawaii 512 # 0 512 40 * * 114 626 18 Idaho 581 # # 582 81 10 30 122 703 17 Illinois 5,282 2 58 5,342 738 246 662 1,646 6,989 24 Indiana 2,524 1 22 2,547 266 73 219 559 3,106 18 Iowa 1,113 # # 1,113 198 97 13 307 1,421 22 Kansas 933 # 6 939 264 25 128 417 1,356 31 Kentucky 1,458 # # 1,458 292 25 176 493 1,951 25 Louisiana 1,634 # # 1,634 289 41 158 488 2,122 23 Maine 539 # 2 542 108 * * 211 753 28 Maryland 2,581 1 7 2,588 462 88 304 854 3,443 25 Massachusetts 2,477 1 15 2,493 794 134 661 1,590 4,084 39 Michigan 3,444 2 67 3,512 607 177 658 1,442 4,954 29 Minnesota 1,922 0 # 1,922 554 84 234 873 2,794 31 Mississippi 963 # # 963 111 21 49 182 1,145 16 Missouri 2,463 1 2 2,465 256 62 196 514 2,980 17 Montana 387 0 0 387 46 7 47 101 488 21 Nebraska 584 # # 584 250 10 38 298 882 34 Nevada 970 # 2 972 188 54 172 414 1,386 30 New Hampshire 469 0 1 470 172 33 137 343 813 42 New Jersey 3,715 1 25 3,741 784 118 1,015 1,917 5,658 34 New Mexico 754 # # 754 72 14 35 121 875 14 New York 6,534 2 20 6,557 2,063 191 2,257 4,511 11,068 41 North Carolina 3,511 3 5 3,519 463 106 516 1,084 4,603 24 North Dakota 241 0 0 241 79 * * 113 354 32 Northern Mariana Isl. 17 0 0 17 0000170 Ohio 4,291 1 34 4,326 644 74 745 1,463 5,790 25 Oklahoma 1,210 # 6 1,216 318 39 162 519 1,736 30 Oregon 1,284 # 1 1,286 301 49 221 571 1,856 31 Pennsylvania 5,233 1 9 5,243 1,326 194 667 2,186 7,430 29 Puerto Rico 755 0 0 755 121 8 81 210 965 22 Rhode Island 292 # # 292 259 * * 316 608 52 South Carolina 1,625 # 4 1,629 243 50 179 472 2,101 22 South Dakota 251 0 0 251 98 * * 140 391 36 Tennessee 2,296 1 # 2,297 426 69 255 751 3,048 25 Texas 8,634 5 34 8,673 1,242 200 908 2,350 11,022 21 Utah 776 0 0 776 134 32 103 269 1,046 26 Vermont 289 0 # 289 54 * * 88 378 23 Virgin Islands 61 0 0 61 0 ***** Virginia 3,254 1 9 3,265 1,015 122 290 1,427 4,692 30 Washington 2,363 # 3 2,367 444 105 471 1,020 3,386 30 West Virginia 714 # 1 714 121 16 58 195 909 21 Wisconsin 2,231 # 15 2,246 372 54 340 765 3,012 25 Wyoming 209 # # 209 15 6 33 54 263 20 Nationwide 117,975 38 491 118,503 23,000 3,957 16,769 43,726 162,230 27 Stand- alone Switched Access Lines Switched Access Lines Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). # = Rounds to zero. * Data withheld to maintain firm confidentiality. Bundled with Internet VoIP purchased as Total VoIP purchased as ILECs Stand- alone Table 8.5 Total End-User Switched Access Lines and VoIP Subscriptions by State as of December 31, 2008 (In Thousands) Non-ILEC % of Total State Total Total Bundled with Internet Non-ILECs 8 - 9 Alabama 1,174 # # 1,174 102 55 90 247 1,422 17% Alaska 147 0 0 147 * 1 **** American Samoa 5005000050 Arizona 1,133 # 0 1,133 538 63 144 746 1,879 40 Arkansas 661 # 3 665 28 17 54 99 763 13 California 9,378 6 29 9,412 796 355 1,339 2,490 11,902 21 Colorado 1,209 0 0 1,209 27 76 279 382 1,591 24 Connecticut 917 1 23 940 64 41 317 421 1,361 31 Delaware 230 # 0 231 13 * * 95 326 29 District of Columbia 168 # 0 168 19 10 22 50 218 23 Florida 4,680 4 0 4,684 115 346 1,049 1,510 6,195 24 Georgia 2,060 2 0 2,062 112 146 346 603 2,665 23 Guam 310031****** Hawaii 293 0 0 293 0 * * 73 366 20 Idaho 380 # # 380 21 9 26 56 437 13 Illinois 2,957 2 24 2,983 114 230 600 944 3,927 24 Indiana 1,616 1 16 1,633 72 70 207 348 1,981 18 Iowa 775 # # 775 94 96 1 191 966 20 Kansas 542 # 6 548 120 22 119 261 808 32 Kentucky 933 # 0 934 153 23 171 347 1,281 27 Louisiana 1,005 # 0 1,005 106 39 145 291 1,296 22 Maine 400 # 2 402 13 * * 115 517 22 Maryland 1,484 1 0 1,485 125 80 289 493 1,978 25 Massachusetts 1,440 1 0 1,441 96 126 627 848 2,289 37 Michigan 1,938 2 58 1,997 222 163 632 1,017 3,014 34 Minnesota 1,341 0 # 1,341 121 79 198 397 1,738 23 Mississippi 605 # 0 605 37 19 45 101 707 14 Missouri 1,603 1 # 1,604 47 59 172 278 1,882 15 Montana 250 0 0 250 16 7 43 66 317 21 Nebraska 334 # # 334 126 9 32 167 502 33 Nevada 575 # 1 576 16 50 158 224 800 28 New Hampshire 331 0 0 331 7 30 133 171 501 34 New Jersey 2,135 1 0 2,136 149 105 961 1,215 3,352 36 New Mexico 507 # # 507 12 13 27 52 559 9 New York 3,876 2 0 3,878 381 159 2,122 2,661 6,539 41 North Carolina 2,266 3 0 2,269 40 97 497 635 2,903 22 North Dakota 161 0 0 161 46 * * 76 237 32 Northern Mariana Isl. 8008000080 Ohio 2,740 1 22 2,764 194 62 720 975 3,739 26 Oklahoma 767 # 6 773 162 36 152 350 1,123 31 Oregon 886 # 0 886 20 45 200 265 1,151 23 Pennsylvania 3,568 1 0 3,569 196 174 622 992 4,561 22 Puerto Rico 589 0 0 589 2 7 74 84 673 12 Rhode Island 184 # 0 184 135 * * 188 372 51 South Carolina 1,079 # 0 1,079 52 45 174 271 1,350 20 South Dakota 158 0 0 158 63 * * 99 257 38 Tennessee 1,528 1 0 1,528 58 65 237 360 1,888 19 Texas 5,258 5 16 5,279 201 175 844 1,220 6,499 19 Utah 502 0 0 502 27 29 90 146 648 23 Vermont 207 0 0 207 7 * * 40 246 16 Virgin Islands 41 0 0 41 0 ***** Virginia 1,886 1 0 1,887 329 110 266 705 2,592 27 Washington 1,570 # 0 1,570 46 98 441 585 2,155 27 West Virginia 548 # 0 548 14 14 56 84 633 13 Wisconsin 1,356 # 12 1,369 101 50 316 467 1,836 25 Wyoming 113 0 # 113 6 6 31 42 156 27 Nationwide 72,531 36 218 72,785 5,643 3,572 15,419 24,634 97,419 25 Stand- alone VoIP purchased as Non-ILECs Stand- alone Bundled with Internet Total Bundled with Internet Total Switched Access Lines VoIP purchased as Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). # = Rounds to zero. * Data withheld to maintain firm confidentiality. Table 8.6 Residential End-User Switched Access Lines and VoIP Subscriptions by State as of December 31, 2008 (In Thousands) State ILECs Total Non-ILEC % of Total Switched Access Lines 8 - 10 Alabama 571 # # 571 205 2 5 212 784 27% Alaska 142 0 0 142 0#000* American Samoa 5005000050 Arizona 714 # # 714 417 10 31 458 1,172 39 Arkansas 357 0 # 357 115 2 8 125 481 26 California 6,896 # 37 6,933 1,668 58 321 2,047 8,980 23 Colorado 664 0 0 664 404 11 41 455 1,120 41 Connecticut 599 # 1 600 183 4 16 203 803 25 Delaware 149 # 1 149 66 0 0 69 218 31 District of Columbia 565 # 4 569 112 3 16 132 701 19 Florida 2,715 # 40 2,756 1,064 39 76 1,179 3,935 30 Georgia 1,404 # 2 1,406 511 13 31 554 1,960 28 Guam 23002300000* Hawaii 218 # 0 219 40 0 0 41 259 16 Idaho 201 # # 201 61 1 4 65 267 25 Illinois 2,325 # 34 2,359 624 16 62 702 3,061 23 Indiana 908 # 6 914 194 4 13 211 1,125 19 Iowa 338 # # 339 104 1 12 117 455 26 Kansas 391 # # 391 144 4 9 157 548 29 Kentucky 524 # # 524 138 2 5 146 670 22 Louisiana 629 # # 629 183 2 12 197 826 24 Maine 139 # 1 140 95 0 0 96 236 41 Maryland 1,096 # 7 1,103 337 8 16 361 1,464 25 Massachusetts 1,037 # 15 1,052 699 9 35 742 1,795 41 Michigan 1,506 # 9 1,515 384 14 26 425 1,940 22 Minnesota 581 0 # 581 433 5 37 475 1,056 45 Mississippi 358 0 # 358 75 2 4 80 438 18 Missouri 860 # 2 861 209 3 24 236 1,098 22 Montana 136 0 0 136 30 # 4 35 171 20 Nebraska 250 0 # 250 124 1 6 131 381 34 Nevada 396 # # 396 172 4 14 190 586 32 New Hampshire 139 0 1 140 165 3 5 172 312 55 New Jersey 1,580 # 25 1,605 635 13 53 702 2,307 30 New Mexico 247 # # 247 60 1 8 69 316 22 New York 2,658 # 20 2,679 1,683 32 135 1,850 4,529 41 North Carolina 1,246 # 5 1,251 422 9 18 450 1,700 26 North Dakota 80 0 0 80 34 0 0 37 117 32 Northern Mariana Isl. 9009000090 Ohio 1,551 # 12 1,563 450 12 25 488 2,051 24 Oklahoma 443 0 # 443 156 3 10 170 613 28 Oregon 398 # 1 399 281 4 21 306 705 43 Pennsylvania 1,665 # 9 1,674 1,130 20 45 1,195 2,869 42 Puerto Rico 166 0 0 166 119 1 6 126 292 43 Rhode Island 108 # # 108 124 0 0 128 237 54 South Carolina 546 # 4 550 191 5 5 201 751 27 South Dakota 93 0 0 93 35 0 0 41 134 31 Tennessee 769 # # 769 368 5 18 391 1,160 34 Texas 3,376 # 18 3,394 1,041 25 64 1,130 4,523 25 Utah 275 0 0 275 108 3 13 123 398 31 Vermont 82 0 # 83 47 0 0 49 131 37 Virgin Islands 20 0 0 20 00000* Virginia 1,368 # 9 1,378 686 12 24 722 2,100 34 Washington 793 # 3 796 398 7 30 435 1,231 35 West Virginia 166 # 1 166 106 2 2 110 277 40 Wisconsin 874 # 3 877 270 4 24 298 1,175 25 Wyoming 95 # # 96 10 # 2 11 107 11 Nationwide 45,444 2 272 45,718 17,357 385 1,350 19,092 64,810 29 Stand- alone VoIP purchased as Non-ILECs Stand- alone Bundled with Internet Total Bundled with Internet Total Switched Access Lines VoIP purchased as Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). # = Rounds to zero. * Data withheld to maintain firm confidentiality. Table 8.7 Business End-User Switched Access Lines and VoIP Subscriptions by State as of December 31, 2008 (In Thousands) State ILECs Total Non-ILEC % of Total Switched Access Lines 8 - 11 Alabama 16 % 15 % 16 % 13 % 13 % 14 % 16 % 21 % Alaska * * 26 **** * American Samoa 0000000 0 Arizona 27 30 30 32 33 34 37 39 Arkansas 13 11 12 13 14 14 14 18 California 18 13 13 14 14 14 15 22 Colorado 17 20 19 17 17 16 19 31 Connecticut 14 11 12 12 13 14 15 29 Delaware 20 20 18 18 19 17 18 30 District of Columbia 20 17 14 14 14 14 15 20 Florida 16 17 15 13 13 13 14 27 Georgia 21 18 19 14 16 16 17 25 Guam NA 0000** * Hawaii 6 7 9 11 13 16 18 18 Idaho 10 10 11 10 11 11 11 17 Illinois 20 15 15 15 14 14 14 24 Indiana 14 10 10 10 9 9 11 18 Iowa 14 14 15 16 17 18 19 22 Kansas 25 21 24 23 25 26 28 31 Kentucky 14 15 16 15 16 19 18 25 Louisiana 19 17 18 16 17 18 21 23 Maine 20 20 16 16 17 20 24 28 Maryland 18 18 16 15 15 14 15 25 Massachusetts 25 25 24 24 23 24 25 39 Michigan 25 19 18 17 18 19 20 29 Minnesota 21 24 23 22 24 23 22 31 Mississippi 14 12 13 10 10 10 11 16 Missouri 14 11 13 13 14 14 15 17 Montana 8 10 12 14 16 18 19 21 Nebraska 25 26 27 28 29 30 31 34 Nevada 13 13 17 15 24 22 26 30 New Hampshire 25 25 24 23 23 23 25 42 New Jersey 22 21 17 18 17 17 18 34 New Mexico 878888914 New York 30 31 27 27 28 29 31 41 North Carolina 13 15 16 16 18 19 20 24 North Dakota 20 19 20 21 21 22 24 32 Northern Mariana Isl. NA 000000 0 Ohio 15 15 15 16 18 20 23 25 Oklahoma 18 18 20 21 23 25 27 30 Oregon 13 19 16 17 18 18 18 31 Pennsylvania 23 23 20 19 20 20 21 29 Puerto Rico ******192 Rhode Island 40 42 43 46 47 48 50 52 South Carolina 13 13 15 14 16 17 19 22 South Dakota 30 33 33 30 30 31 32 36 Tennessee 16 17 18 15 16 17 18 25 Texas 19 16 16 17 16 17 18 21 Utah 23 22 24 21 22 20 21 26 Vermont 14 12 12 12 12 12 13 23 Virgin Islands * * * 0000 * Virginia 21 22 21 22 22 23 23 30 Washington 14 14 14 14 15 14 16 30 West Virginia 12 12 12 13 13 14 16 21 Wisconsin 19 18 19 20 21 23 24 25 Wyoming 11 12 14 15 17 18 19 20 Nationwide 19 % 18 % 17 % 17 % 18 % 18 % 19 % 27 % * Data withheld to maintain firm confidentiality. NA is an abbreviation for not available. State 1 See footnote 1, Table 8.1. 2008 Non-ILEC Share of Total End-User Switched Access Lines and VoIP Subscriptions by State 1 Jun Dec 2007 DecDec Source: Industry Analysis & Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). 20062005 Table 8.8 Jun JunJunDec 8 - 12 TRS & FCC Form 499 Data USF Data 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Number of Local Competitors 1 RBOCs & Other Incumbent LECs 1,348 1,318 1,335 1,335 1,309 1,301 1,304 1,303 1,311 1,304 1,297 CAPs & CLECs 212 298 479 511 542 601 690 734 985 774 813 Local Resellers, Shared Tenant, Interconneced VoIP, Private Carriers, & Other Local 64 96 128 158 186 172 228 885 649 538 649 All Other Carriers Reporting Local Exchange Service Revenues 133 143 229 168 176 179 186 188 211 206 210 Total 2 1,757 1,855 2,171 2,172 2,213 2,253 2,408 3,110 3,156 2,822 2,962 Local Service Revenues 3 Incumbent LECs Bell Operating Companies $69,801 $76,586 $93,135 $93,388 $91,158 $85,558 $82,555 $81,032 $77,282 $71,507 $67,853 Other Incumbent LECs 26,989 26,084 15,166 17,490 17,590 18,141 18,326 18,205 17,862 18,387 17,867 Total 96,790 102,670 108,301 110,879 108,749 103,699 100,881 99,237 95,144 89,894 85,720 Local Service Competitors CAPs & CLECs 2,393 4,505 7,552 10,629 10,001 12,373 12,363 13,569 13,769 13,612 15,674 Local Resellers, Shared Tenant, Private Carriers, & Other Local 329 522 914 1,395 1,644 943 1,405 840 1,192 2,918 3,682 All Other Filers (Local Exchange Service Revenues Only) 809 1,319 2,028 2,796 3,337 4,979 5,136 5,405 4,269 3,463 2,365 Total 3,530 6,347 10,494 14,820 14,982 18,295 18,904 19,814 19,230 19,993 21,720 Total $100,320 $109,016 $118,795 $125,698 $123,730 $121,994 $119,785 $119,051 $114,374 $109,887 $107,440 Share of Local Service Revenues Incumbent LECs Bell Operating Companies 69.6% 70.3% 78.4% 74.3% 73.7% 70.1% 68.9% 68.1% 67.6% 65.1% 60.5% Other Incumbent LECs 26.9% 23.9% 12.8% 13.9% 14.2% 14.9% 15.3% 15.3% 15.6% 16.7% 15.9% Total 96.5% 94.2% 91.2% 88.2% 87.9% 85.0% 84.2% 83.4% 83.2% 81.8% 76.4% Local Service Competitors CAPs & CLECs 2.4% 4.1% 6.4% 8.5% 8.1% 10.1% 10.3% 11.4% 12.0% 12.4% 14.0% Local Resellers, Shared Tenant, Private Carriers, & Other Local 0.3% 0.5% 0.8% 1.1% 1.3% 0.8% 1.2% 0.7% 1.0% 2.7% 3.3% Providers All Other Filers 0.8% 1.2% 1.7% 2.2% 2.7% 4.1% 4.3% 4.5% 3.7% 3.2% 6.4% Total 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8% 16.6% 16.8% 18.2% 23.6% Total Telecommunications Revenues (Including Payphone, Mobile, & Toll Service) Incumbent LECs $108,234 $112,216 $116,158 $117,885 $114,999 $109,480 $105,496 $103,561 $99,997 $93,885 $89,732 Local Competitors 4,034 6,508 10,945 14,781 15,309 16,857 17,126 18,568 19,473 21,690 26,440 Ratio of ILEC Total Telecommunications 27 : 1 17 : 1 11 : 1 8 : 1 8 : 1 6 : 1 6 : 1 6 : 1 5 : 1 4 : 1 3 : 1 Revenues to Local Competitor Total Telecommunications Revenues ILEC and New Local Competitor Share of Local Service Revenue Table 8.9 Nationwide Local Service Revenues and New Competitors' Share 1 (Dollar Amounts Shown in Millions) Chart 8.5 See notes on following page. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ILEC Share 96.5% 94.2% 91.2% 88.2% 87.9% 85.0% 84.2% 83.4% 83.2% 81.8% 76.4% New Competitor Share 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8% 16.6% 16.8% 18.2% 23.6% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 8 - 13 Notes to Table 8.9. Note: Detail may not add to totals due to rounding. Data for 1993 through 1997 are available in prior year reports. 1 Counts for incumbent LECs, CLECs, CAPs, local resellers, shared tenant service providers, private carriers and other local service providers are based on the numbers of filers actually reporting revenues. The category All Other Filers includes payphone, mobile service, and toll providers that reported local exchange service revenues. Non-incumbent LEC affiliates of incumbent LECs are classified as local service competitors, not as incumbent LECs. 2 The total number of local service providers shown in Table 8.9 differs from the total fixed local service providers shown in Table 15.3 because the number shown in Table 8.9 represents filers that self identify as mobile or toll providers, and that report some end-user local exchange service revenues. 3 For most categories of carriers for 1996, local service revenues include revenues from the following TRS reporting categories: local exchange, local private line, other local services, interstate access services, and intrastate access services. The amounts shown do not include pay telephone, mobile, or toll service revenues. See also footnote four. 1998 revenues for carriers that filed TRS worksheets but not universal service worksheets were estimated using 1998 TRS worksheets. These worksheets contain carrier revenue data for calendar year 1997. Sources: Data filed on FCC Forms 431, 457, 499-Q and 499-A worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues. 8 - 14 Table 8.10 Telephone Number Porting Activity Since Wireless Porting Started 1 Landline to Landline to Mobile to Cellular/PCS Month Landline Mobile Mobile 2 to Landline Total (thousands) (thousands) (thousands) 2003 November 3 561 2 61 1 625 December 638 12 756 1 1,407 2004 January 809 24 713 1 1,547 February 711 65 591 2 1,369 March 776 79 632 1 1,488 April 718 49 613 1 1,381 May 756 73 689 1 1,519 June 789 165 873 2 1,829 July 656 143 806 3 1,608 August 4 786 95 824 * 1,705 September 701 43 787 1 1,532 October 899 97 738 1 1,735 November 736 131 736 2 1,605 December 692 86 910 1 1,689 2005 January 698 53 808 2 1,561 February 936 81 735 1 1,753 March 1,257 74 815 2 2,148 April 959 55 797 1 1,812 May 892 56 862 1 1,811 June 1,064 38 1,153 2 2,257 July 1,006 62 982 2 2,052 August 1,203 42 933 2 2,179 September 1,114 31 835 2 1,982 October 991 37 866 2 1,896 November 1,023 29 826 2 1,880 December 1,079 22 1,031 2 2,135 2006 January 1,242 37 879 4 2,162 February 1,347 22 807 3 2,178 March 1,422 19 876 2 2,319 April 1,095 19 747 2 1,863 May 1,213 46 813 2 2,073 June 1,010 30 862 2 1,904 July 960 55 866 1 1,883 August 1,111 61 953 2 2,127 September 941 36 839 2 1,818 October 1,049 33 823 2 1,908 November 907 40 812 3 1,762 December 977 41 993 2 2,013 2007 January 902 31 1,021 2 1,956 February 864 45 1,049 2 1,960 March 1,035 40 1,155 2 2,232 April 926 33 1,112 2 2,072 May 973 45 1,083 3 2,103 June 1,026 82 1,095 3 2,207 July 1,288 124 1,136 3 2,550 August 1,440 149 1,135 5 2,728 September 1,235 90 1,012 3 2,340 October 1,539 93 1,027 2 2,661 November 1,302 111 1,187 3 2,603 December 2,500 53 1,274 2 3,829 2008 January 1,293 19 5 1,102 3 2,418 February 1,220 24 1,079 2 2,326 March 1,473 19 1,085 4 2,582 April 1,420 21 987 3 2,430 May 1,232 22 1,069 3 2,326 June 1,176 19 1,113 2 2,311 July 1,289 39 1,383 3 2,715 August 1,410 48 1,410 4 2,873 September 1,207 47 1,212 4 2,471 October 1,332 39 1,258 5 2,634 November 1,107 59 1,213 4 2,382 December 1,257 36 1,513 4 2,810 2009 January 1,112 33 1,334 4 2,483 February 1,112 33 1,334 4 2,483 March 1,262 43 1,389 5 2,698 April 1,232 38 1,184 5 2,459 May 1,295 36 1,203 5 2,539 June 1,317 39 1,415 4 2,775 July 1,333 40 1,445 5 2,823 August 1,304 44 1,397 5 2,750 September 1,336 131 1,292 5 2,764 Cumulative Total 77,474 3,811 70,345 180 151,811 * Indicates a number between 1 and 499. Source: Raw data from Local Number Portability Administrator (NeuStar, Inc.). Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. 1 Monthly figures include numbers that were ported back to the original carrier, or where the subscriber with the ported number terminated service. 3 Wireless porting started November 24, 2003. These figures include all ports during the month of November, which for ports from or to a wireless carrier, include a small number of test ports that happened prior to November 24. 4 Due to a data problem, does not include numbers that were ported back to the original carrier, or where the subscriber with the ported number terminated service. 2 Excludes significant porting activity between Cingular and AT&T Wireless following the closing of their merger in October 2004. 5 In late 2007, some wireline carriers completed plans to transfer groups of numbers to the wireless carriers that were providing service to end users using those numbers. In many cases, the whole block could not be reassigned in the Local Exchange Routing Guide so number porting was used to effectuate the transfer. 8 - 15 Table 8.11 Telephone Numbers Remaining in the Porting Database at the End of Each Quarter 1 Landline to Landline to Mobile to Mobile to Total Year Quarter Landline Mobile Mobile 2 Landline (thousands) (thousands) (thousands) 1999 Second 1,840 * * * 1,840 Third 2,658 * * * 2,658 Fourth 3,854 * * * 3,854 2000 First 5,029 * * * 5,029 Second 5,781 * * * 5,781 Third 7,595 * * * 7,595 Fourth 9,146 * * * 9,146 2001 First 10,567 * * * 10,567 Second 12,310 * * * 12,310 Third 14,610 * * * 14,610 Fourth 15,519 * * * 15,519 2002 First 16,810 * * * 16,810 Second 18,210 * * * 18,210 Third 19,862 * * * 19,862 Fourth 21,449 * * * 21,449 2003 First 22,781 * * * 22,781 Second 23,723 * * * 23,723 Third 24,796 * * * 24,796 Fourth 25,869 16 795 2 26,682 2004 First 28,462 173 2,686 3 31,324 Second 28,371 406 4,635 4 33,417 Third 29,396 667 6,874 9 36,945 Fourth 30,607 832 9,041 11 41,491 2005 First 32,399 1,001 10,860 16 44,276 Second 34,136 1,092 12,926 19 48,173 Third 35,959 1,201 14,327 23 51,510 Fourth 37,607 1,226 16,101 29 54,963 2006 First 40,194 1,272 17,577 34 59,077 Second 42,130 1,333 19,032 42 62,538 Third 43,743 1,407 20,509 46 65,705 Fourth 45,149 1,480 21,920 50 68,600 2007 First 46,761 1,541 23,518 50 71,870 Second 48,396 1,659 25,399 54 75,508 Third 3 50,222 2,057 27,068 116 79,463 Fourth 53,168 2,031 29,065 120 84,384 2008 First 55,095 2,075 30,605 127 87,902 Second 56,114 2,067 32,024 153 90,359 Third 57,217 2,175 34,089 156 93,637 Fourth 58,924 2,255 35,851 171 97,202 2009 First 60,609 2,353 37,663 177 100,801 Second 62,508 2,433 39,221 182 104,344 Third 64,333 2,539 40,522 181 107,576 2 Excludes significant porting activity between Cingular and AT&T Wireless following the closing of their merger. Source: Raw data from Local Number Portability Administrator (NeuStar, Inc.). Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. * Wireless portability started November 24, 2003. A small number of test ports were conducted before then. 1 Numbers ported because customer changed carriers. The database contains the date when the telephone number record was last updated. For most telephone numbers, this was the most recent port. For those telephone numbers affected by area code changes, however, the date refers to when the record was updated to reflect the new area code. See the text for a fuller discussion. 3 Starting with the July 2007 data, the method of determining whether a port came from a wireline or wireless carrier changed. For numbers that have been ported multiple times, the original carrier is now used to determine the porting carrier's type. Previously, the porting carrier's type was based on the most recent port. 8 - 16 Table 8.12 Numbers in the Porting Database by Quarter in Which They Were Most Recently Ported 1 March 31, 2009 2 Ported During Landline to Landline to Mobile to Mobile to Year Quarter Landline Mobile Mobile Landline (thousands) (thousands) 1998 First 0 3 ** * Second 3 * * * Third 36 * * * Fourth 110 * * * 1999 First 192 * * * Second 302 * * * Third 313 * * * Fourth 396 * * * 2000 First 422 * * * Second 483 * * * Third 602 * * * Fourth 672 * * * 2001 First 594 * * * Second 754 * * * Third 770 * * * Fourth 957 * * * 2002 First 792 * * * Second 892 * * * Third 1,055 * * * Fourth 890 * * * 2003 First 806 * * * Second 974 * * * Third 971 * * * Fourth 954 8 321 2 2004 First 1,302 110 711 3 Second 1,313 99 827 8 Third 1,325 159 992 7 Fourth 1,275 101 1,033 5 2005 First 1,543 78 999 4 Second 1,643 69 1,096 3 Third 1,857 90 1,272 4 Fourth 1,681 61 1,305 13 2006 First 2,442 51 1,293 4 Second 1,981 65 1,350 4 Third 1,771 117 1,569 5 Fourth 1,760 97 1,635 5 2007 First 1,909 93 1,713 5 Second 2,156 134 1,867 4 Third 2,739 249 2,230 24 Fourth 4,292 223 2,556 9 2008 First 3,018 70 4 2,451 8 Second 3,065 76 2,452 7 Third 3,189 129 3,290 7 Fourth 3,207 138 3,307 8 2009 First 3,052 127 2,974 8 Second 3,335 127 3,052 7 Third 3,572 236 3,645 9 1 Numbers ported because customer changed carriers. 3 Number is between 0 and 499. Source: Raw data from Local Number Portability Administrator (NeuStar, Inc.). Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau. 2 The local number portability database was designed solely for the purpose of routing calls. As such, it retains only the most recent porting activity for any given number. So if a consumer ports a number from Carrier A to Carrier B, and later the consumer then ports the number from Carrier B to Carrier C, the database will not reflect the original port from Carrier A to Carrier B. Also, numbers that revert back to the original carrier (either because the customer ports the number back to the original carrier or because the customer discontinues service with that number) are dropped from the database. Lastly, area code splits can make a number appear to be ported later than it actually was. * Wireless portability started November 24, 2003. A small number of test ports were conducted before then. NeuStar supplies information indicating which carriers are wireless and which are wireline. Occasionally, a carrier that had been identified as a wireline carrier is later identified as a wireless carrier, and vice-versa. 4 In late 2007, some wireline carriers completed plans to transfer groups of numbers to the wireless carriers that were providing service to end users using those numbers. In many cases, the whole block could not be reassigned for routing purposes in the Local Exchange Routing Guide (LERG) so number porting was used to effectuate the transfer. 8 - 17 9 - 1 9 Long Distance Telephone Industry Until the 1970s, AT&T had a virtual monopoly on long distance service in the United States. In the 1970s, competitors such as MCI and Sprint began also to offer long distance service. With the gradual emergence of competition, basic rates dropped, calling surged, and AT&T’s dominance declined. More than 1,900 toll companies now offer long distance service of which more than 1,400 are wireline carriers. These carriers remain subject to the Commission’s jurisdiction. The Commission, however, has chosen to rely on competition, rather than regulation, as much as possible. Thus, the Commission forbears from regulating most aspects of long distance service. 1. Toll Revenues In 2008, telecommunications companies generated $59.9 billion in toll revenues. These include toll revenues from long distance carriers, wireless toll from wireless carriers, and toll revenues from local exchange carriers. These revenues are shown in Table 9.1. Table 9.1 also shows the share of toll revenues by the five largest and the next twenty largest providers. The trend is for smaller firms to have a greater share of industry toll revenues. Toll calls can be divided into three jurisdictional categories - intrastate calls, domestic interstate calls, and international calls. The revenues, from 1980 through 2007, for each of the three jurisdictional categories are shown in Table 9.2. Toll revenues also can be divided between residential and nonresidential services, as in Table 9.3. In 2007, residential customers generated 30% of all end-user toll revenues. 2. Number of Companies The number and types of carriers reporting long distance revenues are shown in Table 9.4. The Telecommunications Reporting Worksheet (FCC Form 499-A) requires each filer to select up to five of 20 categories that best describe its primary lines of business. Six of these categories consist of carriers that are primarily engaged in providing long distance service and are collectively described as being toll carriers: interexchange carriers (IXCs), operator service providers (OSPs), other toll service providers, prepaid calling card providers, satellite service providers, and toll resellers. Additional information on the FCC Form 499-A has been used to categorize some filers as Voice Over Internet Protocol (VoIP) Toll providers and as Audio Bridge Service Providers. In 2008, 1,418 filers were categorized using one of the above toll service provider categories. 9 - 2 Prior to 1986, carrier identification codes (CICs) provided information on the number of firms seeking to acquire certain types of interconnecting arrangements with local telephone companies. Beginning in 1986, a number of corporations, government agencies and other organizations began to acquire carrier identification codes for their own use, rather than for the purpose of providing telecommunications services to others. After that time, the use of such codes to estimate the number of long distance carriers became less reliable. The number of codes assigned over time can be found in the long distance section of the May 2004 Trends report which can be accessed at www.fcc.gov/wcb/stats.html. CICs are currently assigned by the North American Numbering Plan Administration (NANPA), which is part of Neustar, Inc. Further information on such codes can be found on the Internet at www.nanpa.com. 3. Long Distance Market Shares A generation ago, before the breakup of the Bell System, AT&T’s local telephone companies provided local service to most of the United States. At the beginning of 1984, however, AT&T’s local operating companies were divested in the settlement of an antitrust case. After the AT&T divestiture, AT&T’s former operating companies were restricted to providing service within their own local access and transport areas (LATAs), i.e., they were precluded from offering toll service that crossed LATA boundaries. As a result, two separate and distinct toll markets emerged. In the first, AT&T competed with small but rapidly growing competitors for calls that crossed LATA boundaries. This market included almost all interstate and international calls and a large number of intrastate toll calls as well. A second and much smaller market consisted of short distance toll calls that did not cross LATA boundaries. This second market was dominated, at least initially, by the local exchange carriers operating within their own service territories. Over time, the distinctions between the two markets have become blurred as customers acquired the ability to select among competing carriers for their intraLATA calls as well as their interLATA calls. As discussed in greater detail in the following section, the 1996 Telecommunications Act established a procedure for Bell companies to offer in-region, interLATA long distance service after complying with certain preconditions to open their own markets. Bill Harvestingฎ data collected by TNS Telecoms (TNS) are used to calculate residential market shares. Further information on TNS and its Bill Harvestingฎ data can be found in Section 14 and in Appendix B. Table 9.5, which is based on this information, presents nationwide market shares of households, and directly dialed intraLATA and interLATA minutes from 1995 to 2008. Chart 9.2 shows the residential household market shares for the largest carriers for 2008. Table 9.6 presents market shares by region for 2008. Chart 9.3 shows residential market shares for the largest carriers for the northeast and southwest regions for 2008. 9 - 3 4. Section 271 Applications Section 271 of the Communications Act required the regional Bell operating companies (RBOCs) to apply to the Commission, on a state-by-state basis, for authorization to provide in-region interLATA services. To obtain such authorization pursuant to section 271, the RBOC had to demonstrate that it satisfied the 14-point competitive checklist, that it complied with the separate affiliate and nondiscrimination requirements of section 272, and that the requested authorization was consistent with the public interest, convenience, and necessity. After a section 271 application was filed with the Commission, the Commission had 90 days to determine whether the RBOC had taken the statutorily required steps to open its local telecommunications markets to competition. A RBOC applicant had to demonstrate either that: A) one or more unaffiliated competing providers of local telephone service to residential and business subscribers was connected to the RBOC’s network, and that such local telephone service was being “offered by such competing providers either exclusively over their own telephone exchange service facilities or predominately over their own telephone exchange service facilities in combination with the resale of the telecommunications services of another carrier” (commonly referred to as “Track A”); or B) if no potential competing provider had requested to connect to a RBOC’s network, the RBOC had a statement of generally available terms and conditions in place demonstrating that it is ready to allow potential competitors to connect to its facilities (commonly referred to as “Track B”). On December 22, 1999, the first regional Bell operating company’s application (Bell Atlantic, now known as Verizon) was approved by the Commission to provide in- region interLATA service in the state of New York. On December 3, 2003, the final Bell operating company’s application (Qwest) was approved to provide in-region interLATA service in the state of Arizona. Table 9.7 shows the states in which the BOCs filed section 271 applications, the Bell operating company’s name, and the application’s resolution date. The companies approved must continue to comply with the section 271 requirements. The Commission has a number of enforcement tools at its disposal, including imposing penalties or suspension of approval. Table 9.1 -- Toll Service Revenues 1/ by Provider 2/ (Revenue Amounts Shown in Millions) 2000 2001 2002 2003 2004 2005 2006 2007 2008 Total Toll Revenue $81,546 $73,486 $59,864 $52,172 $46,511 $46,599 $45,015 $42,907 $37,070 Percentage of total 74.4% 74.0% 71.5% 67.6% 65.3% 67.3% 69.9% 66.2% 61.9% U.S. End User Toll Revenue Revenue $17,024 $15,122 $13,808 $13,837 $13,534 $10,683 $7,991 $8,753 $8,867 Percentage of total 15.5% 15.2% 16.5% 17.9% 19.0% 15.4% 12.4% 13.5% 14.8% Revenue $11,045 $10,722 $10,026 $11,179 $11,168 $11,968 $11,373 $13,142 $13,973 Percentage of total 10.1% 10.8% 12.0% 14.5% 15.7% 17.3% 17.7% 20.3% 23.3% Total Service Revenue $109,615 $99,053 $83,697 $77,188 $71,214 $69,250 $64,379 $64,802 $59,910 Companies reporting toll 1,401 1,715 1,668 1,835 2,173 2,117 1,811 2,058 2,393 service revenue 2000 Five companies reporting the most toll service revenue: Next twenty: 2001 Five companies reporting the most toll service revenue: Next twenty: 2002 Five companies reporting the most toll service revenue: Next twenty: 2003 Five companies reporting the most toll service revenue: Next twenty: Totals for the five companies that report the most toll revenue Totals for the next twenty companies that report the most toll revenue AT&T Communications; Qwest Services Corp.; SBC Communications, Inc.; Sprint Corp.; WorldCom, Inc. AT&T Communications; MCI, Inc.; SBC Communications, Inc.; Sprint Corp.; Verizon Communications, Inc. ALLTEL Corp.; BellSouth Corp.; Broadwing Corp.; CenturyTel, Inc.; Cincinnati Bell, Inc.; Citizens Communications; Evercom, Inc.; Global Crossing North America, Inc.; IDT Corporation; ITC^DeltaCom, Inc.; McLeod USA Inc.; Primus Telecommunications Group, Inc.; Qwest Services Corp.; Telco Group, Inc.; Teleglobe Netherlands Holdings B.V.; Telenor Global Services AS; T-Mobile USA, Inc.; VarTec Telecom, Inc.; WilTel Communications Group, Inc.; XO Communications, Inc. ALLTEL Corp.; Atlas Telecommunications S.A.; BCE, Inc. (Bell Canada Enterprises); BellSouth Corporation; Broadwing, Inc.; Cable & Wireless Holdings, Inc.; Global Crossing, Ltd.; IDS Telcom, LLC; IDT Corp.; Intermedia Communications, Inc.; McLeod USA Inc.; Pacific Gateway Exchange, Inc.; Primus Telecommunications Group, Inc.; Star Telecommunications; Talk.com, Inc.; VarTec Telecom, Inc.; Verizon; Viatel, Inc.; Williams Communications Group, Inc.; World Access, Inc. ALLTEL Corp.; BellSouth Corp.; Broadwing, Inc.; Cable & Wireless USA, Inc.; Citizens Communication; Empresa Nacional de Telecomunicaciones SSA; Global Crossing; IDT Corp.; ITC^DeltaCom, Inc.; McLeodUSA, Inc.; Network Plus Corp.; Nextel Communications, Inc.; Pacific Gateway Exchange, Inc.; Primus Telecommunications Group, Inc.; Qwest Services Corp.; Star Telecommunications, Inc.; Touch America Holdings, Inc.; VarTec Telecom; WilTel Communications Group, Inc.; World Access, Inc. Totals for all other companies Totals for all companies AT&T Communications; SBC Communications, Inc.; Sprint Corp.; Verizon Communications, Inc.; WorldCom, Inc. ALLTEL Corp.; BellSouth Corp.; Broadwing, Inc.; Cable & Wireless USA, Inc.; CenturyTel, Inc.; Cincinnati Bell, Inc.; Citizens Communications; Comcast Corp.; Empresa Nacional de Telecomunicaciones SSA; Evercom, Inc.; Global Crossing North American Holdings, Inc.; IDT Corp.; ITC^DeltaCom, Inc.; McLeod USA Inc.; Qwest Services Corp.; Telco Group, Inc.; Touch America Holdings, Inc.; VarTec Telecom, Inc.; WilTel Communications Group, Inc.; XO Communications, Inc. AT&T Communications; SBC Communications, Inc.; Sprint Corp.; Verizon Communications, Inc.; WorldCom, Inc. 9 - 5 2004 Five companies reporting the most toll service revenue: Next twenty: 2005 Five companies reporting the most toll service revenue: Next twenty: 2006 Five companies reporting the most toll service revenue: Next twenty: 2007 Five companies reporting the most toll service revenue: Next twenty: 2008 Five companies reporting the most toll service revenue: Next twenty: 1/ 2/ AT&T, Inc.; Qwest Services Corp.; SBC Long Distance, LLC; Sprint Nextel Corporation; Verizon Communications, Inc.; Atlantis Holdings; CenturyTel, Inc.; Comcast Corporation; CoxCom, Inc.; Deutsche Telekom AG; Dollar Phone Corp.; Embarq Corporation; Epana Networks; Global Crossing ; Gtel Holdings, Inc.; iBasis, Inc.; IDT Telecom, Inc.; Locus Telecommunications, Inc.; Reliance Infocomm Ltd.; STi Prepaid, LLC; Telecom Corporation of New Zealand LTD; T-NETIX, INC.; Touch-Tel USA, LLC; Videsh Sanchar Nigam Limited; Windstream Corp.; Table 9.1 -- Toll Service Revenues 1/ by Provider 2/ -- Continued Toll revenues consist of carrier's carrier revenues reported on the FCC Form 499-A Lines 310 through 314; end user revenues reported on Lines 404.2 and 411 through 417; and a portion of USF pass-through revenue reported on Line 403. ALLTEL Corporation; CenturyTel, Inc.; Comcast Corporation; CoxCom, Inc.; Deutsche Telekom AG; Embarq Corporation; Epana Networks; Global Crossing ; Gtel Holdings, Inc.; iBasis, Inc.; IDT Telecom, Inc.; Locus Telecommunications, Inc.; Reliance Infocomm Ltd.; Telecom Corporation of New Zealand LTD; T-NETIX, INC.; Touch-Tel USA, LLC; VarTec Telecom, Inc.; Videsh Sanchar Nigam Limited; Windstream Corp.; XO Communications, Inc.; ALLTEL Corporation; BellSouth Corporation; Broadwing Corporation; BT United States LLC; CenturyTel, Inc.; Deutsche Telekom AG; Dialaround Enterprises, Inc.; Epana Networks; Global Crossing North America, Inc.; IDT Corporation; ITC DeltaCom, Inc.; Level 3 Financing, Inc.; Locus Telecommunications, Inc.; New Cingular Wireless Services, Inc. ; Pacific Gateway Exchange, Inc.; Reliance Infocomm Ltd.; T-NETIX, INC.; VarTec Telecom, Inc.; Videsh Sanchar Nigam Limited; WilTel Communications Group, Inc.; AT&T Inc.; Level 3 Financing, Inc.; Qwest Services Corp.; Sprint Nextel Corporation; Verizon Communications, Inc.; Source: Data filed on FCC Form 499A and press reports. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Provider Locator. AT&T Corp.; SBC Communications, Inc.; Sprint Corporation; Verizon Communications Inc.; WorldCom, Inc.; Filings of affiliated companies have been consolidated to create this table. Companies are treated as affiliated if they were known to be affiliated on December 31. The annual Telecommunications Provider Locator reports are one source of information showing which filers are treated as affiliates. For the purpose of this table, revenues for Cingular were divided between Bell South and SBC in proportion to their ownership interest. Revenues for CellCo Partnership historically were consolidated with Verizon. AT&T, Inc; Level 3 Financing, Inc.; Qwest Services Corp.; Sprint Nextel Corporation; Verizon Communications, Inc.; ALLTEL Corporation; BellSouth Corporation; Broadwing Communications, LLC; CenturyTel, Inc.; Citizens Communications Company; Deutsche Telekom AG; Evercom, Inc.; Excel Telecommunications, Inc.; Global Crossing North America, Inc.; GTE Corporation; IDT Corporation; ITC^DeltaCom, Inc.; McLeod USA Inc.; Primus Telecommunications Group, Inc.; Qwest Services Corp.; Telco Group, Inc. (Really Verizon Wireless?); Teleglobe Netherlands Holdings B.V.; Telenor Global Services AS; VarTec Telecom, Inc. ; WilTel Communications Group, Inc.; AT&T, Inc; Level 3 Financing, Inc.; Qwest Services Corp.; Sprint Nextel Corporation; Verizon Communications, Inc.; BT United States LLC; CenturyTel, Inc.; Comcast Corporation; CoxCom, Inc.; Deutsche Telekom AG; Dollar Phone Corp.; Embarq Corporation; Epana Networks; Global Crossing ; Gtel Holdings, Inc.; iBasis, Inc.; IDT Telecom, Inc.; Locus Telecommunications, Inc.; MetroPCS Communications, Inc.; Reliance Infocomm Ltd.; STi Prepaid, LLC; Telecom Corporation of New Zealand LTD; T-NETIX, INC.; Videsh Sanchar Nigam Limited; Windstream Corp.; 9 - 6 Intrastate, Interstate, and International Toll Revenues (Dollar Amounts Shown in Millions) Toll Revenues End-User Revenues Total Toll Year Intrastate Interstate International Revenues Intrastate Interstate International Revenues 1980 $12,700 $19,049 $1,586 $33,335 $1,475 1981 14,632 21,948 2,599 39,180 2,485 1982 16,457 24,685 2,777 43,919 2,651 1983 17,612 26,418 2,940 46,970 2,802 1984 19,077 28,616 3,463 51,156 3,309 1985 20,408 30,613 3,794 54,815 3,636 1986 21,340 32,010 4,119 57,468 3,947 1987 21,563 32,345 4,611 58,519 4,436 1988 22,900 34,350 5,350 62,600 5,146 1989 23,850 35,775 6,399 66,024 6,340 1990 25,622 33,678 7,492 66,792 7,390 1991 24,090 35,837 8,631 68,558 8,480 1992 27,667 37,871 10,207 75,744 9,810 1993 30,950 40,212 11,364 82,525 10,901 1994 29,815 42,028 12,635 84,478 12,100 1995 31,519 43,955 14,155 89,629 13,144 1996 34,181 48,903 16,607 99,691 15,023 1997 32,859 49,247 18,688 100,793 $30,144 $43,640 15,409 $89,193 1998 34,699 50,000 20,356 105,055 30,800 44,153 16,654 91,607 1999 33,600 54,590 20,056 108,246 29,976 47,598 15,737 93,311 2000 33,030 56,225 20,361 109,615 28,501 42,980 16,286 87,767 2001 29,530 46,389 23,381 99,301 25,891 36,660 16,751 79,302 2002 25,772 39,725 18,200 83,697 22,122 31,707 13,392 67,222 2003 23,160 38,501 15,527 77,188 18,889 28,088 12,006 58,983 2004 21,748 34,664 14,802 71,214 17,762 27,487 10,262 55,511 2005 19,397 33,839 16,014 69,250 15,489 26,811 10,238 52,538 2006 18,791 31,420 14,168 64,379 15,415 25,164 8,699 49,278 2007 16,874 33,728 14,200 64,802 13,535 27,237 7,937 48,709 2008 15,962 29,292 15,734 60,988 13,223 25,021 8,121 46,365 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues, International Bureau, Trends in the U.S. International Telecommunications Industry and International Traffic Data, 47 CFR ง 43.21(c) data through 1991. Through 1996, some breakouts based on staff estimates. Table 9.2 Toll Revenues by Market Segment (Dollar Amounts Shown in Billions) Chart 9.1 Total Toll $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Interstate Intrastate International 9 - 7 Table 9.3 End-User Toll Revenues (Dollar Amounts Shown in Millions) Residential End-User End-User Toll Revenues Toll as a Toll By Customer Type Percentage Revenues 2/ of all End- Year User Toll Residential Other Revenues 1/ 1995 48 % $75,638 $36,425 $39,213 1996 47 82,616 39,187 43,430 1997 47 89,193 41,766 47,427 1998 45 91,607 41,401 50,205 1999 44 93,311 40,784 52,527 2000 40 87,767 35,440 52,327 2001 37 79,302 29,584 49,718 2002 38 67,222 25,284 41,938 2003 39 58,983 23,190 35,793 2004 37 55,511 20,329 35,182 2005 33 52,538 17,588 34,950 2006 31 49,278 15,364 33,914 2007 30 48,709 14,808 33,901 2008 30 46,365 13,969 32,396 Note: Data for all years were revised. 1/ Staff estimates are based on market segment data in carrier annual reports to shareholders; average household payments to long distance carriers shown in Table 3.2; and residential toll revenues published by the U.S. Census Bureau in the Service Annual Survey: Table 3.3.7; Bureau Of Economic Analysis, National Economic Accounts, Table 2.4.5U. Personal Consumption Expenditures by Type of Product; and previous reports. 2/ Toll services are telecommunications services that enable customers to communicate outside of local exchange calling areas. Toll service revenues include revenues from ordinary long distance, subscriber toll-free, operator service, prepaid calling card, long distance private line, satellite services, and other long distance services. End-user toll revenues consist of toll service revenues from end-user customers, governments, non-profits, de minimis resellers, and any other customer that does not contribute directly to universal service. Source: End-user toll revenues for 1997 through 2008 are taken from Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues current and previous editions. The breakout between Residential and Other, and total end-user toll revenues for 1995 and 1996, are staff estimates. 9 - 8 Table 9.4 Number of Toll Service Providers TRS & FCC Form 499-A Data USF Data 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Carriers That Provide Toll Service 1/ Toll Carriers Interexchange Carriers (IXCs) 151 171 178 212 233 229 232 257 262 270 250 272 Other Toll Carriers Operator Service Providers (OSPs) 32 24 15 20 19 18 17 19 23 24 23 24 Pre-paid Calling Card Providers 18 20 18 23 27 27 50 67 69 85 93 127 Satellite Service Providers 13 13 17 25 34 33 40 40 40 39 41 42 Toll Resellers 340 388 406 493 558 574 642 751 721 744 693 727 VoIP Toll Providers 12 91 Audio Bridge Service Providers 69 Other Toll Carriers 15 31 17 35 69 51 45 70 63 76 80 66 Total Toll Service Providers 569 647 651 808 940 932 1,026 1,204 1,178 1,267 1,192 1,418 Fixed Local Service, Payphone, and Mobile Service Filers with Toll Service Revenues 1,537 1,740 1,870 1,678 1,884 1,602 1,678 1,680 1,879 1,937 1,952 1,961 All Toll Service Providers 2/ 2,106 2,387 2,521 2,486 2,824 2,534 2,704 2,884 3,057 3,204 3,144 3,379 Note: Some data have been revised. Data for 1992 through 1996 are available in prior year reports. 1/ Counts of toll carriers represent the numbers of filers that reported telecommunications revenues and that identified themselves using a toll carrier category. Filers that identified themselves as Fixed Local Service, Payphone, and Mobile Service providers were counted as toll providers only if they reported toll service revenues. 2/ Toll carrier counts in Table 9.4 differ from toll carrier counts in Table 9.1 for two reasons. Counts in this table include firms that identify temselves as toll carriers even if they reported only non-toll telecommunications revenues. In addition, counts in this table were made by filing entity whereas Table 9.1 consolidates affiliated filers. Toll carrier counts also differ from toll carrier counts in Table 5.3. Table 5.3 includes companies that made an FCC Form 499-A filing for registration purposes but that had not yet reported revenues. Sources: Data filed on FCC Forms 431, 457, and 499-A worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues and Telecommunications Provider Locator. 9 - 9 AT&T 1 MCI 2 Sprint 3 BellSouth 4 Qwest 5 SBC 6 Verizon 7 Other 8 1995 74.6 % 13.0 % 4.2 % (8) % (8) % (8) % (8) % 8.2 % 1996 69.9 14.1 5.0 (8) (8) (8) (8) 11.0 1997 67.2 13.2 5.7 (8) (8) (8) (8) 13.8 1998 62.6 15.1 5.7 (8) (8) (8) (8) 16.6 1999 62.5 16.0 6.2 (8) (8) (8) (8) 15.4 2000 51.1 18.0 6.6 0.1 1.6 1.0 4.6 17.0 2001 42.3 18.5 6.8 0.1 2.9 2.6 6.7 20.0 2002 36.7 15.8 7.6 0.2 2.5 3.8 9.3 24.1 2003 31.7 13.0 7.1 2.2 3.2 7.5 10.8 24.4 2004 23.5 9.9 6.9 4.4 5.7 13.2 12.9 23.5 2005 18.1 7.7 6.2 5.9 5.9 15.9 16.2 24.1 2006 29.3 -- 3.8 6.6 6.1 -- 25.2 29.0 2007 28.5 -- 2.1 -- 5.3 -- 27.3 36.8 2008 26.1 -- 1.3 -- 5.2 -- 23.2 44.2 1995 8.9 % 2.4 % 4.6 % (8) % (8) % (8) % (8) % 84.1 % 1996 9.5 5.4 4.4 (8) (8) (8) (8) 80.6 1997 13.9 6.7 3.7 (8) (8) (8) (8) 75.7 1998 15.6 8.7 3.8 (8) (8) (8) (8) 71.8 1999 16.9 12.0 3.6 (8) (8) (8) (8) 67.5 2000 17.3 12.8 5.0 1.6 5.0 18.6 18.0 21.7 2001 15.4 13.2 4.8 1.4 4.3 17.9 17.6 25.3 2002 14.0 11.8 4.8 1.1 2.9 18.5 16.3 30.7 2003 10.7 11.4 8.1 0.9 2.7 17.7 13.2 35.4 2004 7.5 9.4 5.0 1.0 4.6 30.5 12.2 29.9 2005 5.5 9.2 5.3 1.3 5.3 34.3 12.2 26.7 2006 38.1 -- 1.8 1.2 6.9 -- 17.8 34.2 2007 33.9 -- 0.8 -- 5.7 -- 20.0 39.7 2008 32.9 -- 0.4 -- 6.1 -- 14.2 46.5 1995 69.5 % 16.1 % 5.8 % (8) % (8) % (8) % (8) % 8.6 % 1996 62.5 15.9 7.1 (8) (8) (8) (8) 14.5 1997 62.4 14.9 6.5 (8) (8) (8) (8) 16.2 1998 58.4 17.0 6.5 (8) (8) (8) (8) 18.1 1999 53.2 20.9 6.6 (8) (8) (8) (8) 19.3 2000 44.7 22.0 7.3 0.1 1.6 0.5 2.5 21.3 2001 36.3 20.5 7.6 0.1 1.9 1.8 3.6 28.1 2002 31.2 18.1 9.0 0.3 1.6 3.1 5.6 31.0 2003 26.0 16.6 7.9 1.4 1.8 6.6 6.6 32.9 2004 17.0 12.5 8.1 1.9 6.4 20.3 6.7 27.0 2005 10.8 11.3 8.6 2.6 8.5 23.7 8.2 26.3 2006 35.6 -- 3.3 2.4 10.3 -- 16.4 32.0 2007 32.7 -- 1.5 -- 10.8 -- 12.7 42.4 2008 34.1 -- 1.2 -- 12.2 -- 9.5 43.0 Residential Household Market Shares Table 9.5 Residential Household Market Shares (1995 - 2008) Chart 9.2 Households 9 Direct Dial IntraLATA Minutes Direct Dial InterLATA Minutes 2008 AT&T 26.1% Other 44.2% Sprint 1.3% Qwest 5.2% Verizon 23.2% 9 - 10 Notes for Table 9.5 3 Excluding Embarq starting in 2006. 5 Qwest and U S WEST Long Distance. 8 Until 2000, the regional Bell operating companies are not broken out of the "Other" category. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor ™, Bill Harvesting ฎ. 9 Each household is assumed to have a single access line (less than 8% of households in the 2003 sample had more than one access line). These lines are allocated across carriers based on the household's primary long distance carrier which is imputed by the provider of the data, TNS Telecoms. In 1995, 1996 and 1999-2003, TNS defined the household's primary long distance carrier. In 1997, a household's primary long distance carrier was determined based on calls made through long distance carriers, and in 1998, a household's primary long distance carrier was determined based on interLATA calls. Note: Market shares are estimates based on sample data. Shares for past years have been revised to take into account mergers and acquisitions and changes in methodology. Columns may not sum to 100% due to rounding. 6 Ameritech Communications, Ameritech 800, Pacific Bell, Southwest Long Distance, SBC Long Distance and SNET All Distance. Starting in 2006, SBC's figures were included in the totals for AT&T. Starting in 2007, BellSouth's figures were included in the totals for AT&T. 1 AT&T Long Distance, Lucky Dog Phone Co., ACC Long Distance, AT&T U-verse. Starting in 2006, AT&T includes the former SBC. 4 BellSouth Long Distance and BellSouth Public Communications. Starting in 2007, BellSouth's figures were included in the totals for AT&T. 2 MCI Long Distance, Telecom USA, Touch 1, TTI National, LDDS WorldCom and WorldCom Network Service. Starting in 2006, MCI's figures were included in the totals for Verizon. 7 Bell Atlantic Long Distance, NYNEX/Bell Atlantic North, Verizon Select Services ,GTE, and Verizon VoiceWing. Starting in 2006, MCI's figures were included in the totals for Verizon. 9 - 11 Region 1 AT&T 2 MCI 3 Sprint 4 Sample Size Southeast 38.8 % -- % 1.4 % -- % 1.2 % -- % 10.6 % 48.0 % 3,494 West 5.4 -- 1.0 -- 35.2 -- 7.5 50.9 2,261 West Coast 47.2 -- 2.0 -- 1.6 -- 18.4 30.8 1,820 Mid-Atlantic 6.4 -- 0.7 -- 0.5 -- 52.3 40.1 3,244 Mid-West 35.5 -- 1.6 -- 2.2 -- 15.1 45.6 3,404 Northeast 8.8 -- 0.4 -- 0.3 -- 39.4 51.1 2,927 Southwest 48.5 -- 2.1 -- 1.6 -- 11.2 36.6 2,062 Total 26.1 % -- % 1.3 % -- % 5.2 % -- % 23.2 % 44.2 % 19,212 Southeast 13.5 % -- % 0.8 % -- % 0.7 % -- % 15.1 % 70.0 % 34,189 West 0.3 -- 0.0 -- 43.5 -- 7.2 49.1 50,248 West Coast 58.1 -- 0.8 -- 0.2 -- 19.4 21.6 56,007 Mid-Atlantic 4.4 -- 0.5 -- 2.3 -- 23.0 69.9 46,871 Mid-West 52.9 -- 0.1 -- 0.1 -- 10.0 36.9 103,984 Northeast 14.8 -- 0.1 -- 0.0 -- 30.2 54.9 37,393 Southwest 47.4 -- 0.7 -- 0.2 -- 4.6 47.2 55,970 Total 32.9 % -- % 0.4 % -- % 6.1 % -- % 14.2 % 46.5 % 384,663 Southeast 16.2 % -- % 2.3 % -- % 0.9 % -- % 10.9 % 69.7 % 137,802 West 2.6 -- 0.2 -- 64.5 -- 4.0 28.7 131,847 West Coast 57.2 -- 0.9 -- 0.2 -- 8.6 33.2 93,885 Mid-Atlantic 8.9 -- 1.3 -- 0.4 -- 18.9 70.5 70,281 Mid-West 58.5 -- 1.0 -- 0.5 -- 9.2 30.8 146,416 Northeast 24.6 -- 0.1 -- 0.4 -- 18.4 56.5 44,127 Southwest 64.4 -- 2.1 -- 0.8 -- 5.7 27.0 101,337 Total 34.1 % -- % 1.2 % -- % 12.2 % -- % 9.5 % 43.0 % 725,695 Direct Dial IntraLATA Minutes Direct Dial InterLATA Minutes Households Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvesting ฎ. Chart 9.3 Residential Household Market Shares by Region: 2008 Note: Market shares are estimates based on sample data. Columns may not sum to 100% due to rounding. For footnotes, please see the next page. Table 9.6 Residential Household Market Shares By Region: 2008 BellSouth 5 Qwest 6 SBC 7 Verizon 8 Other 9 Northeast Other 51.1% Qwest 0.3% Verizon 39.4% AT&T 8.8% Sprint 0.4% Southwest Other 36.6% Verizon 11.2% Qwest 1.6% Sprint 2.1% AT&T 48.5% 9 - 12 Notes for Table 9.6 3 MCI Long Distance, Telecom USA, Touch 1, TTI National, LDDS WorldCom and WorldCom Network Service 4 Not including Embarq. 5 BellSouth Long Distance and BellSouth Public Communications. 6 Qwest and U S WEST Long Distance. 1 Southeast: Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. West: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming. Mid-Atlantic: Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia 9 Households with any other presubscribed carrier. Note that households for which the presubscribed carrier is unknown or could not be determined have been excluded from the sample. 7 Ameritech Communications, Ameritech 800, Pacific Bell, Southwest Long Distance, SBC Long Distance and SNET All Distance. Starting in 2006, SBC's figures were included in the totals for AT&T. West Coast: California and Nevada. Mid-West: Illinois, Indiana, Michigan, Ohio and Wisconsin. Northeast: Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. Southwest: Arkansas, Kansas, Missouri, Oklahoma and Texas. 2 AT&T Long Distance, Lucky Dog Phone Co. and ACC Long Distance. Starting in 2006, AT&T includes the former SBC. 8 Bell Atlantic Long Distance, NYNEX/Bell Atlantic North, Verizon Select Services and GTE. Starting in 2006, MCI's figures were included in the totals for Verizon. 9 - 13 Table 9.7 Regional Bell Operating Companies' Applications To Provide In-Region InterLATA Service (Section 271 Applications) State Bell Operating Company Date Application Resolved Alabama BellSouth 09/18/02 Arkansas SBC 11/16/01 Arizona Qwest 12/03/03 California SBC 12/19/02 Colorado Qwest 12/23/02 Connecticut Verizon 07/20/01 Delaware Verizon 09/25/02 District of Columbia Verizon 03/19/03 Florida BellSouth 12/19/02 Georgia BellSouth 05/15/02 Idaho Qwest 12/23/02 Illinois SBC 10/15/03 Indiana SBC 10/15/03 Iowa Qwest 12/23/02 Kansas SBC 01/22/01 Kentucky BellSouth 09/18/02 Louisiana BellSouth 05/15/02 Maine Verizon 06/19/02 Maryland Verizon 03/19/03 Massachusetts Verizon 04/16/01 Michigan SBC 09/17/03 Minnesota Qwest 06/26/03 Mississippi BellSouth 09/18/02 Missouri SBC 11/16/01 Montana Qwest 12/23/02 Nebraska Qwest 12/23/02 Nevada SBC 04/14/03 New Hampshire Verizon 09/25/02 New Jersey Verizon 06/24/02 New Mexico Qwest 04/15/03 New York Verizon 12/22/99 North Carolina BellSouth 09/18/02 North Dakota Qwest 12/23/02 Ohio SBC 10/15/03 Oklahoma SBC 01/22/01 Oregon Qwest 04/15/03 Pennsylvania Verizon 09/19/01 Rhode Island Verizon 02/22/02 South Carolina BellSouth 09/18/02 South Dakota Qwest 04/15/03 Tennessee BellSouth 12/19/02 Texas SBC 06/30/00 Utah Qwest 12/23/02 Vermont Verizon 04/17/02 Virginia Verizon 10/30/02 Washington Qwest 12/23/02 West Virginia Verizon 03/19/03 Wisconsin SBC 10/15/03 Wyoming Qwest 12/23/02 9 - 14 10 - 1 10 Minutes As in the case of telephone lines, there are several alternative measures of calling volumes. Most subscribers purchase service with unlimited local calling. As a result, most local calls are not metered. Periodic studies have been used within the telephone industry to estimate the number of calls and calling minutes for a variety of purposes. For example, periodic studies of dial equipment minutes (DEMs) historically were used to estimate the proportion of calling that is interstate and to allocate costs between interstate and intrastate services. However, DEMs are no longer being used for separations purposes because the separations factors are now frozen. Historical data for DEMs can be found in the August 2003 issue of Trends in Telephone Service. 1. Interstate Switched Access Minutes Switched access minutes are those minutes transmitted by long distance carriers that also use the distribution networks of local telephone companies, i.e., calls made on private telecommunications networks and on leased lines are excluded. On ordinary long distance calls, minutes are counted both where the call originates and where the call terminates. Access minutes include only the domestic portion of international calls. WATS and toll-free (800/888/877/866) calls are counted only on one end of the call. WATS calls generate access minutes only at the terminating end of the call and toll-free (800/888/877/866) calls generate access minutes only at the originating end of the call; both types of minutes are counted in the terminating minutes because they are billed at the terminating rate. Originating WATS and terminating toll-free minutes are covered under special access arrangements, and hence are not subject to switched access charges. Finally, switched access minutes include time for incomplete calls and setup time. Table 10.1 and Chart 10.1 show the total number of interstate switched access minutes handled by all long distance carriers starting with mid-1984, when the data first became available. The number of minutes grew steadily from mid-1984 to 2000 stemming from a combination of overall economic growth and price reductions. Since 2001, interstate switched access minutes have declined, due to a number of reasons including substitution of other services. 2. Billed Access Minutes and Calls Another measure of usage is the number of interLATA billed access minutes and the number of local calls and toll calls. The large incumbent LECs have filed data on this as part of their Automated Reporting Management Information System (ARMIS) reports. The individual carrier's data can be obtained from the ARMIS Report 43-08 on the ARMIS web page at www.fcc.gov/wcb/armis. However, ARMIS filing requirements were reduced significantly for 2008 data by Commission forbearance orders and these data are no longer submitted. The number of interLATA access minutes is based on bills sent to interexchange carriers. They include total originating and terminating access minutes of use. Where these data are 10 - 2 unavailable, a statistically valid calculation is sometimes used. The number of local calls refers to the number of originating calls completed or unanswered between points both of which are within the local service area of the calling telephone, or total originating calls minus total originating toll calls. The number of toll calls completed refers to the number of completed calls directed to a point outside the local service area of the calling telephone. IntraLATA toll calls completed (originating) consist of the number of completed toll calls carried by the reporting local operating company within a given local access and transport area (LATA) and interLATA toll calls completed (originating) consist of completed calls directed to and carried by interexchange carriers. IntraLata toll calls carried by interexchange carriers are not included. More detailed definitions can be found on the ARMIS web site. Intralata toll calls carried by Interexchange carriers are not included. Table 10.2 shows historical data on the number of local and toll calls and the number of interLATA billed access minutes for the large ILECs reporting to the Commission. Toll calls are further categorized by intraLATA, interLATA interstate and interLATA intrastate. Interstate and intrastate billed access minutes are also shown. (In Billions) Access Access Access Year Period Minutes Year Period Minutes Year Period Minutes 1984 Third Quarter 37.5 Fourth Quarter 39.6 1985 First Quarter 39.6 1993 First Quarter 90.6 2001 First Quarter 138.1 Second Quarter 41.5 Second Quarter 91.2 Second Quarter 137.1 Third Quarter 42.8 Third Quarter 93.6 Third Quarter 133.3 Fourth Quarter 43.3 Fourth Quarter 95.9 Fourth Quarter 131.3 Total 1985 167.1 Total 1993 371.2 Total 2001 539.8 1986 First Quarter 43.0 1994 First Quarter 98.7 2002 First Quarter 124.7 Second Quarter 44.8 Second Quarter 97.9 Second Quarter 124.3 Third Quarter 46.7 Third Quarter 101.9 Third Quarter 119.6 Fourth Quarter 48.5 Fourth Quarter 102.9 Fourth Quarter 118.0 Total 1986 183.1 Total 1994 401.4 Total 2002 486.6 1987 First Quarter 51.2 1995 First Quarter 105.6 2003 First Quarter 114.2 Second Quarter 52.5 Second Quarter 106.8 Second Quarter 112.1 Third Quarter 55.0 Third Quarter 109.0 Third Quarter 109.9 Fourth Quarter 57.0 Fourth Quarter 110.6 Fourth Quarter 107.7 Total 1987 215.7 Total 1995 431.9 Total 2003 443.9 1988 First Quarter 59.0 1996 First Quarter 115.7 2004 First Quarter 109.3 Second Quarter 59.6 Second Quarter 114.7 Second Quarter 106.2 Third Quarter 62.1 Third Quarter 117.5 Third Quarter 105.0 Fourth Quarter 64.0 Fourth Quarter 120.2 Fourth Quarter 102.0 Total 1988 244.6 Total 1996 468.1 Total 2004 422.4 1989 First Quarter 66.2 1997 First Quarter 122.1 2005 First Quarter 101.2 Second Quarter 68.5 Second Quarter 124.4 Second Quarter 100.5 Third Quarter 69.7 Third Quarter 124.9 Third Quarter 100.4 Fourth Quarter 72.6 Fourth Quarter 125.8 Fourth Quarter 98.8 Total 1989 277.1 Total 1997 497.3 Total 2005 401.0 1990 First Quarter 74.7 1998 First Quarter 124.0 2006 First Quarter 98.2 Second Quarter 75.8 Second Quarter 131.3 Second Quarter 95.3 Third Quarter 77.9 Third Quarter 130.7 Third Quarter 94.0 Fourth Quarter 79.1 Fourth Quarter 132.8 Fourth Quarter 91.9 Total 1990 307.4 Total 1998 518.8 Total 2006 379.3 1991 First Quarter 79.2 1999 First Quarter 135.6 2007 First Quarter 90.6 Second Quarter 81.9 Second Quarter 138.1 Second Quarter 88.5 Third Quarter 82.6 Third Quarter 138.3 Third Quarter 86.4 Fourth Quarter 84.4 Fourth Quarter 140.3 Fourth Quarter 83.4 Total 1991 328.0 Total 1999 552.3 Total 2007 348.9 1992 First Quarter 85.6 2000 First Quarter 142.8 2008 First Quarter 83.6 Second Quarter 86.5 Second Quarter 142.9 Second Quarter 80.4 Third Quarter 87.9 Third Quarter 141.3 Third Quarter 77.1 Fourth Quarter 89.8 Fourth Quarter 139.9 Fourth Quarter 74.6 Total 1992 349.7 Total 2000 566.9 Total 2008 315.7 Source: National Exchange Carrier Association (NECA), MOU/Data/Summary of NECA's Total Pool Results, March 17, 2009. Industry Analysis and Technology Division, Wireline Competition Bureau, Universal Service Monitoring Report (December 2008). Table 10.1 ILEC Quarterly Interstate Switched Access Minutes Chart 10.1 (In Billions) Interstate Switched Access Minutes for Incumbent Local Exchange Carriers 0.0 100.0 200.0 300.0 400.0 500.0 600.0 19 85 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 10 - 3 Telephone Calls and Billed Access Minutes of Large ILECs Reporting to the Commission Number of Telephone Calls InterLATA Billed Access Minutes (Thousands) (Originating and Terminating) (Thousands) Toll Calls Completed (Originating) Number of Year Carriers Local Calls Total IntraLATA Total InterLATA InterLATA Total Interstate Intrastate InterLATA Interstate Intrastate 1985 55 365,304,830 NA NA NA NA NA NA NA NA 1986 57 372,296,473 NA NA NA NA NA NA NA NA 1987 52 379,864,264 NA NA NA NA NA NA NA NA 1988 52 379,035,883 67,547,342 18,983,768 48,563,574 36,752,925 11,810,649 NA NA NA 1989 51 389,383,322 68,547,451 19,406,222 49,141,229 37,593,867 11,547,362 NA NA NA 1990 51 402,492,293 63,359,346 20,263,554 43,095,792 31,888,748 11,207,044 NA NA NA 1991 52 416,213,954 67,333,207 23,337,553 43,995,654 32,126,555 11,869,099 405,456,048 305,745,611 99,710,437 1992 54 434,175,743 71,502,090 22,612,572 48,889,518 36,036,032 12,853,486 432,356,515 327,821,281 104,535,234 1993 53 447,473,714 78,077,246 23,757,662 54,319,584 38,746,788 15,572,796 465,270,369 351,022,599 114,247,770 1994 52 465,207,539 83,441,709 23,796,633 59,645,076 43,244,593 16,400,483 500,297,267 374,996,101 125,301,166 1995 53 484,195,345 94,051,667 23,327,801 70,723,866 50,618,771 20,105,095 549,982,263 405,579,546 144,402,717 1996 51 504,131,507 94,905,927 21,376,847 73,529,080 52,677,037 20,852,043 598,563,946 438,772,880 159,791,066 1997 51 522,025,261 98,424,977 21,844,925 76,580,052 54,563,338 22,016,714 647,813,708 469,638,292 178,175,416 1998 52 544,288,934 96,934,938 18,469,316 78,465,622 55,974,210 22,491,412 690,523,467 497,138,901 193,384,566 1999 52 553,853,237 102,245,666 18,116,240 84,129,426 57,806,961 26,322,465 739,042,459 519,272,905 219,769,554 2000 52 536,523,081 105,978,596 16,157,912 89,820,684 59,212,055 30,608,629 792,263,836 535,011,649 257,252,187 2001 52 515,335,676 97,849,444 14,970,794 82,878,650 53,319,645 29,559,005 745,754,124 504,026,109 241,728,015 2002 53 453,603,777 95,709,932 13,324,887 82,385,045 52,905,686 29,479,359 666,477,372 451,602,651 214,874,720 2003 54 418,024,360 87,670,954 11,794,327 75,876,627 48,968,414 26,908,213 611,329,124 414,524,141 196,804,983 2004 56 380,783,208 82,254,901 10,132,759 72,122,142 47,575,750 24,546,392 600,762,941 406,173,324 194,589,617 2005 56 330,018,175 79,451,371 9,308,449 70,142,922 45,381,539 24,761,383 577,328,125 388,561,466 188,766,659 2006 56 280,182,070 73,111,230 8,610,165 64,501,065 42,003,740 22,497,325 543,337,469 371,990,523 171,346,945 2007 55 235,428,403 69,608,967 7,810,818 61,798,149 40,692,976 21,105,173 504,462,125 348,506,441 155,955,683 NA - Not available. was reported for 1988, and also between 1988 and subsequent years, as the carriers were adapting to the new USOA and automated reporting requirements. Source: Industry Analysis and Technology Division, Wireline Competition Division, Universal Service Monitoring Report (December 2008). Table 10.2 Note: Between 1987 and 1988, there were significant changes in the definitions of many of the items in this table. With the implementation of a new Uniform System of Accounts (USOA) in 1988, new categories of reporting units of network usage were created and defined. In 1992, some of these definitions were further refined when the reporting mechanism of the carriers was changed for the filing of 1991 data. For these reasons, there may be inconsistencies in the data reported for 1985-1987 compared to what 10 - 4 11 - 1 11 Mobile Wireless Service 1. Industry Statistics There are several measures of mobile wireless subscribers. While there are some differences in these data series, they all show significant growth in mobile wireless subscribers. The Commission collects data on the number of wireless subscribers by state as part of the local competition and broadband data gathering program (FCC Form 477). This program requires providers of wireless service to file information twice each year. Prior to June 2005, only wireless carriers with at least 10,000 subscribers in a state were required to report. 1 The Commission also collects data on wireless numbers as part of the data collection on Numbering Resources and Utilization/Forecasting (FCC Form 502). Wireless numbers are a good proxy for wireless subscribers since wireless carriers generally assign only one subscriber per number. The CTIA-The Wireless Association TM periodically publishes summary information on the industry. CTIA can be found on the Internet at www.ctia.org. Table 11.1 and Chart 11.1 show three measures of mobile wireless subscribers over time. In 1984, there were 92,000 subscribers, as compared with about 270 million subscribers as of December 31, 2008. Table 11.2 shows the number of wireless subscribers per state as of June 30, 2008 using data from FCC Form 477. Table 11.3 provides information on the industry published by CTIA. These trends include revenues, cell sites, employees, and average monthly bills. The table shows that the industry had more than 268,000 employees as of December 2008, as compared to about 3,500 employees in 1986; and there was a significant drop in the average monthly bill from $96.83 at the end of 1987 to $50.07 as of December 2008. 2. Residential Wireless Toll Calling Patterns The summary of residential wireless usage presented in Tables 11.4 through 11.7 is based on calling data captured from a sample of consumer bills by TNS Telecoms. (For additional information on TNS Telecoms, see Appendix B.) While these tables were constructed in a manner similar to those describing wireline toll calling patterns in Section 14, the two sets of tables should be compared with caution. One important issue is that, if wireless bills itemize calls, all calls, rather than just toll calls, are listed. 2 As a result, these tables characterize wireless local and long-distance calling where the tables in Section 14 only cover wireline long distance. To provide some frame of reference, 1 Mobile telephony service providers with fewer than 10,000 subscribers in a state reported about 389,000 subscribers as of June 30, 2005. Such filers reported (on a voluntary basis) about 69,000 subscribers six months earlier. 2 In fact, since this analysis generally includes all outgoing wireless calls, many of the calls in the data are not traditional voice calls. The data include calls made to access voicemail, move data, access the Internet, send faxes or text messages, etc. 11 - 2 wireline distinctions have been imposed on the wireless calling data. That is, we distinguished wireless interstate from intrastate calls. Another issue is that not all bills, wireline or wireless, itemize any calls. The extent to which certain types of providers are more or less likely to provide itemization could affect comparisons. Table 11.4 shows the estimated distribution of residential wireless calls and minutes over time. The vast majority of both calls and minutes were intrastate. The number of interstate calls rose from about 9% to 13% of the total from 2000 to 2003, and interstate minutes rose from 16% to 27% of the total over the same period. This was likely an adjustment to the introduction of flat-rate pricing during that time. Since 2003, the jurisdictional distribution of calls and minutes has been relatively stable. We note that these figures are estimates, based on sample data, and the distribution of calls and minutes may vary across carriers. A snapshot of the duration of wireless calls is presented in Table 11.5. In the 2008 data shown, wireless calls were generally brief. About 71% of intrastate wireless calls (which, again, represent the vast majority of calls) were 2 minutes or less. Like wireline traffic, the data are right-skewed such that a handful of long calls pull the average call duration far above the median duration. As a measure of central tendency, the median is more representative of the duration of a typical call than is the average in this context. Tables 11.6 and 11.7 show when wireless intrastate and interstate calls, respectively, were made. Over the years shown, patterns in intrastate calls have changed only slightly. Daytime minutes gained share from nighttime minutes (from about 72.1% in 2005 to 73.5% in 2007), and weekend use fell slightly as a share of total use. Traffic was typically heaviest on Friday and lightest on Sunday. Patterns in interstate calling were different. Unlike intrastate calls, interstate calls were generally most likely on the weekend, particularly on Sunday. Further, though both types of calls were more likely during the day than at night, relative to intrastate calls, interstate calls were allocated more heavily to the nighttime hours. Nonetheless, the same forces acting to change intrastate calling patterns seem to be having similar, yet more dramatic effects on interstate calling. For example, like intrastate calls, the share of interstate minutes made during the day has continued to increase, from about 63% of the total in 2005 to almost 66% in 2007. Weekend use has also continued to fall, from 38.1% in 2005 to 35.5% in 2007. 1984 December 92 1985 December 340 1986 December 682 1987 December 1,231 1988 December 2,069 1989 December 3,509 1990 December 5,283 1991 December 7,557 1992 December 11,033 1993 December 16,009 1994 December 24,134 1995 December 33,786 1996 December 44,043 1997 December 55,312 1998 December 69,209 1999 June 76,285 December 86,047 79,696 2000 June 97,036 90,643 December 109,478 101,043 99,019 2001 June 118,398 114,029 111,734 December 128,375 123,991 128,493 2002 June 134,561 130,751 136,927 December 140,767 138,878 141,776 2003 June 148,066 147,624 151,861 December 158,722 157,042 160,637 2004 June 169,467 167,313 170,406 December 182,140 181,105 184,819 2005 June 194,479 192,053 198,381 December 207,896 203,667 213,212 2006 June 219,652 217,418 227,135 December 233,041 229,619 241,834 2007 June 243,428 238,316 251,945 December 255,396 249,332 262,091 2008 June 262,720 255,729 271,370 December 270,334 261,284 279,646 NA indicates not available. 1 See Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of December 31, 2008 (June 2010). Carriers with under 10,000 subscribers in a state were not require 2 Numbers are adjusted for porting. See current and previous editions of Industry Analysis and Technology wireless numbers. (In Thousands) 11 - 3 Table 11.1 Measures of Mobile Wireless Telephone Subscribers FCC Form 502 2 Reported by CTIA FCC Form 477 1 Division, Wireline Competition Bureau, Numbering Resource Utilization in the United States. Source: CTIA-The Wireless Association TM and FCC Forms 477 and 502. FCC Form 502 contains assigned to report until June 2005. 11 - 4 Chart 11.1 Mobile Wireless Telephone Subscribers As of December (Subscribers in Thousands) 0 50,000 100,000 150,000 200,000 250,000 300,000 CTIA 5,283 7,557 11,033 16,009 24,134 33,786 44,043 55,312 69,209 86,047 109,478 128,375 140,767 158,722 182,140 207,896 233,041 255,396 270,334 FCC Form 477 79,696 101,043 123,991 138,878 157,042 181,105 203,667 229,619 249,332 261,284 FCC Form 502 99,019 128,493 141,776 160,673 184,819 213,212 241,834 262,091 279,646 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Jun Dec Jun Dec Jun Dec Jun Dec Alabama 15 7 % 2,874 3,105 3,276 3,375 3,605 3,765 3,887 3,960 Alaska 12 13 341 377 397 412 432 460 480 383 American Samoa * * * * * * * * * * Arizona 13 8 3,543 3,844 4,153 4,405 4,637 4,800 4,936 4,983 Arkansas 9 9 1,681 1,781 1,924 2,044 2,149 2,288 2,446 2,530 California 18 7 24,572 25,537 27,497 29,717 30,204 32,247 31,946 32,177 Colorado 12 11 3,041 3,247 3,428 3,608 3,756 3,968 4,066 4,311 Connecticut 8 7 2,329 2,463 2,582 2,705 2,787 2,884 2,959 3,030 Delaware 7 8 585 618 650 683 724 751 775 778 District of Columbia 7 9 753 825 879 880 966 936 1,047 1,096 Florida 13 9 12,620 12,568 14,177 14,762 15,255 15,605 15,809 16,158 Georgia 14 5 6,001 6,079 6,865 7,282 7,598 7,941 8,142 8,322 Guam * * * * * * * * * * Hawaii 7 4 934 983 1,010 1,035 1,067 1,096 1,115 1,184 Idaho 18 7 774 834 901 973 1,019 1,086 1,125 1,167 Illinois 15 7 8,227 8,655 9,148 9,589 9,949 10,330 10,634 10,919 Indiana 12 11 3,443 3,716 3,973 4,271 4,448 4,675 4,824 4,956 Iowa 67 8 1,634 1,811 1,867 2,010 2,058 2,166 2,245 2,319 Kansas 15 11 1,660 1,794 1,905 2,047 2,133 2,261 2,326 2,421 Kentucky 13 10 2,508 2,662 2,821 2,966 3,101 3,291 3,343 3,445 Louisiana 11 7 2,942 3,192 3,356 3,492 3,612 3,765 3,896 4,012 Maine 8 17 711 746 787 845 882 941 972 1,012 Maryland 9 8 3,968 4,239 4,471 4,691 4,818 5,024 5,124 5,234 Massachusetts 7 7 4,488 4,728 4,917 5,129 5,289 5,470 5,624 5,749 Michigan 13 8 6,230 6,604 6,863 7,094 7,333 7,608 7,821 8,027 Minnesota 9 11 3,132 3,380 3,543 3,702 3,834 4,048 4,164 4,345 Mississippi 12 8 1,631 1,821 1,923 2,030 2,070 2,196 2,252 2,312 Missouri 14 9 3,595 3,853 4,068 4,322 4,480 4,674 4,835 4,940 Montana 8 7 466 525 575 620 650 694 723 748 Nebraska 13 5 1,071 1,160 1,199 1,272 1,325 1,387 1,451 1,496 Nevada 13 7 1,605 1,777 1,883 1,990 2,093 2,167 2,249 2,268 New Hampshire 8 11 791 849 897 943 973 1,022 1,045 1,080 New Jersey 7 6 6,234 6,617 6,954 7,207 7,419 7,654 7,834 8,008 New Mexico 11 9 1,025 1,170 1,253 1,333 1,416 1,489 1,555 1,536 New York 11 10 12,996 13,805 14,574 15,262 15,901 16,395 17,260 16,702 North Carolina 14 8 5,503 5,792 6,209 6,627 6,962 7,306 7,428 8,024 North Dakota 9 6 368 432 457 473 492 513 541 581 Northern Mariana Isl. * * * * * * * * * * Ohio 14 9 6,994 7,504 7,939 8,380 8,723 9,099 9,357 9,565 Oklahoma 19 8 2,002 2,189 2,317 2,480 2,572 2,723 2,808 2,889 Oregon 10 9 2,056 2,339 2,484 2,656 2,781 2,923 3,007 3,084 Pennsylvania 14 10 7,397 7,942 8,349 8,831 9,201 9,615 9,895 10,214 Puerto Rico 7 2 2,003 2,111 2,171 2,301 2,323 2,411 2,502 2,624 Rhode Island 7 9 689 749 765 798 829 848 874 888 South Carolina 15 9 2,607 2,784 3,001 3,209 3,340 3,500 3,573 3,323 South Dakota 10 6 434 481 514 548 570 596 611 631 Tennessee 14 8 4,066 4,417 4,731 5,127 4,971 5,246 5,791 5,518 Texas 28 6 14,424 15,644 16,928 17,822 18,792 19,677 20,390 21,008 Utah 15 7 1,414 1,530 1,649 1,775 1,874 1,971 2,046 2,095 Vermont 7 16 295 314 334 358 375 402 421 435 Virgin Islands * * * * * * * * * * Virginia 11 9 4,851 5,073 5,325 5,607 6,148 6,416 6,242 6,856 Washington 11 9 4,062 4,249 4,495 4,799 5,035 5,292 5,461 5,624 West Virginia 11 17 821 858 965 1,040 1,095 1,173 1,236 1,295 Wisconsin 12 10 3,200 3,366 3,517 3,510 3,641 3,842 3,966 4,265 Wyoming 13 9 315 342 359 387 410 441 457 484 Nationwide 175 8 % 192,053 203,667 217,418 229,619 238,316 249,332 255,729 261,284 Table 11.2 Mobile Telephone Facilities-based Carriers and Mobile Telephony Subscribers Subscribers (In Thousands) * Data withheld to maintain firm confidentiality. Some data for June 2008 have been revised. 2005 2006 2007 2008 1 Percentage of mobile telephony subscribers purchasing their service subscriptions from a mobile wireless reseller. Dec 2008 Carriers % Resold 1 State 11 - 5 Table 11.3 Mobile Wireless Telephone Service: Industry Survey Results (As Reported by CTIA-The Wireless Association TM ) Employees 1986 June 500,000 $360,585 1,194 3,556 December 681,825 462,467 1,531 4,334 1987 June 883,778 479,514 1,732 5,656 December 1,230,855 672,005 2,305 7,147 $96.83 1988 June 1,608,697 886,075 2,789 9,154 95.00 December 2,069,441 1,073,473 $89,331 3,209 11,400 98.02 1989 June 2,691,793 1,406,463 121,368 3,577 13,719 85.52 December 3,508,944 1,934,132 173,199 4,169 15,927 89.30 1990 June 4,368,686 2,126,362 192,350 4,768 18,973 83.94 December 5,283,055 2,422,458 263,660 5,616 21,382 80.90 1991 June 6,380,053 2,653,505 302,329 6,685 25,545 74.56 December 7,557,148 3,055,017 401,325 7,847 26,327 72.74 1992 June 8,892,535 3,633,285 436,725 8,901 30,595 68.51 December 11,032,753 4,189,441 537,146 10,307 34,348 68.68 1993 June 13,067,318 4,819,259 587,347 11,551 36,501 67.31 December 16,009,461 6,072,906 774,266 12,824 39,775 61.48 140 1994 June 19,283,306 6,519,030 778,116 14,740 45,606 58.65 December 24,134,421 7,710,890 1,052,666 17,920 53,902 56.21 119 1995 June 28,154,414 8,740,352 1,120,337 19,833 60,624 52.42 December 33,785,661 10,331,614 1,422,233 22,663 68,165 51.00 119 1996 June 38,195,466 11,194,247 1,314,943 24,802 73,365 48.84 December 44,042,992 12,440,724 1,465,992 30,045 84,161 47.70 125 1997 June 48,705,553 13,134,551 1,392,440 38,650 97,039 43.86 December 55,312,293 14,351,082 1,581,765 51,600 109,387 42.78 117 1998 June 60,831,431 15,286,660 1,584,891 57,674 113,111 39.88 December 69,209,321 17,846,515 1,915,578 65,887 134,754 39.43 136 1999 June 76,284,753 19,368,304 1,922,416 74,157 141,929 40.24 December 86,047,003 20,650,185 2,163,001 81,698 155,817 41.24 185 2000 June 97,035,925 24,645,365 1,971,625 95,733 159,645 45.15 December 109,478,031 27,820,655 1,911,356 104,288 184,449 45.27 255 2001 June 118,397,734 30,905,721 1,727,058 114,059 186,317 45.56 December 128,374,512 34,410,513 2,209,387 127,540 203,580 47.37 380 2002 June 134,561,370 36,707,086 1,846,267 131,350 186,956 47.42 December 140,766,842 39,801,101 2,049,245 139,338 192,410 48.40 427 2003 June 148,065,824 41,384,171 1,825,243 147,719 187,169 49.46 December 158,721,981 46,239,922 1,941,024 162,986 205,629 49.91 507 2004 June 169,467,393 49,275,671 2,015,780 174,368 212,368 49.49 December 182,140,362 52,845,539 2,194,532 175,725 226,016 50.64 584 2005 June 194,479,364 55,689,208 1,941,960 178,025 225,162 49.52 December 207,896,198 57,849,013 1,844,371 183.689 233,067 49.98 708 2006 June 219,652,457 60,450,669 1,713,680 197,576 238,236 49.30 December 233,040,781 65,006,156 1,780,614 195,613 253,793 50.56 714 2007 June 243,428,202 67,887,668 1,830,435 210,360 257,401 49.94 December 255,395,599 70,981,636 1,911,579 213,299 266,782 49.79 769 2008 June 262,720,165 72,728,764 1,778,519 220,472 267,855 48.54 December 270,333,881 75,355,406 1,960,755 242,130 268,528 50.07 708 * Represents the average per month for the previous six months. Source: CTIA-The Wireless Association TM : Estimates for Total Industry. Subscribers (Thousands) Six-Month Revenues (Thousands) Cell SitesRoamer Service Revenues Month * Bill * Average Minutes of Use per Average Monthly 11 - 6 Intrastate Interstate Others 2 Intrastate Interstate Others 2 2000 87 9 4 295,892 82 16 2 760,380 2001 84 11 5 330,444 76 22 2 952,993 2002 82 13 5 502,946 71 26 2 1,614,341 2003 82 13 5 547,767 71 27 3 1,797,559 2004 82 14 4 508,799 70 28 2 1,690,428 2005 81 15 4 506,072 70 28 2 1,717,643 2006 81 14 5 610,693 71 27 3 2,123,705 2007 81 15 4 381,996 71 28 1 1,366,040 2008 3 81 15 4 203,365 68 30 2 751,896 1 Outgoing, itemized calls only. Table 11.4 Distribution of Residential Wireless Calls and Minutes 1 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Percentage of Calls Total Calls in Sample Percentage of Minutes Total Minutes in Sample Year Note: Individual figures may not add to totals due to rounding. Some previously published figures have been revised. 2 Inter-, intrastate status could not be determined. 3 2008 calculations based on first, second and third quarter data only. Calls Minutes 11 - 7 Table 11.5 Duration of Residential Wireless Calls: 2008 1 Duration of Call (Minutes) Intrastate Interstate All Calls 1 48.5 % 39.4 % 46.9 % 2 22.6 20.0 22.2 3 8.5 7.2 8.2 4 4.6 4.5 4.6 5 3.0 3.5 3.1 6 2.2 2.7 2.3 7 1.6 2.3 1.7 8 1.3 1.9 1.4 9 1.0 1.6 1.1 10 0.8 1.4 0.9 11-15 2.6 4.9 3.0 16-20 1.2 3.1 1.5 21-25 0.7 2.0 0.9 26-30 0.4 1.5 0.6 31-45 0.6 2.2 0.8 46-60 0.2 0.9 0.3 > 60 0.2 0.9 0.3 Average Duration 3.3 6.2 3.8 Median Duration 2.0 2.0 2.0 Sample Size 152,483 32,010 184,493 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ . 1 Outgoing, itemized calls only. All seven-digit dialed calls are considered intrastate. 800-type calls and calls for which a cross-state distinction could not be made were excluded from this analysis. Note also that only data from first, second and third quarter 2008 were available for these calculations. Note: Individual figures may not add to totals due to rounding. 11 - 8 Table 11.6 Distribution of Residential Intrastate Wireless Minutes By Day and Time 1 2008 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 10.9 % 4.0 % 14.9 % Tuesday 10.9 4.0 14.9 Wednesday 10.9 3.9 14.8 Thursday 11.5 4.3 15.8 Friday 11.6 3.9 15.5 Saturday 9.8 3.2 13.0 Sunday 7.6 3.5 11.1 Total 73.3 % 26.7 % 100.0 % Calls in sample = 152,483. 2007 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 10.3 % 3.7 % 14.0 % Tuesday 11.1 4.0 15.1 Wednesday 10.9 4.2 15.1 Thursday 11.2 4.2 15.5 Friday 11.9 3.9 15.8 Saturday 10.1 3.2 13.3 Sunday 7.9 3.3 11.2 Total 73.5 % 26.5 % 100.0 % Calls in sample =291,142. 2006 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 10.7 % 3.7 % 14.4 % Tuesday 10.8 4.1 14.9 Wednesday 11.0 4.0 15.1 Thursday 11.1 4.2 15.3 Friday 11.8 3.9 15.7 Saturday 10.2 3.3 13.5 Sunday 7.7 3.4 11.1 Total 73.4 % 26.6 % 100.0 % Calls in sample = 463,098. Note: Individual figures may not add to totals due to rounding. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Outgoing, itemized calls only. All seven-digit dialed calls are considered intrastate. 800-type calls and calls for which a cross-state distinction could not be made were excluded from this analysis. Note also that only data from first, second and third quarter 2008 were available for these calculations. 11 - 9 Table 11.7 Distribution of Residential Interstate Wireless Minutes By Day and Time 1 2008 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 8.3 % 5.2 % 13.5 % Tuesday 8.8 4.5 13.2 Wednesday 8.3 4.5 12.8 Thursday 8.5 4.2 12.7 Friday 8.4 4.3 12.7 Saturday 11.8 4.7 16.5 Sunday 12.3 6.3 18.6 Total 66.2 % 33.8 % 100.0 % Calls in sample = 32,010. 2007 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 8.7 % 4.6 % 13.3 % Tuesday 8.2 4.6 12.8 Wednesday 7.7 4.7 12.3 Thursday 8.5 5.0 13.5 Friday 8.5 4.1 12.6 Saturday 12.5 4.1 16.6 Sunday 12.4 6.5 18.9 Total 66.5 % 33.5 % 100.0 % Calls in sample = 52,047. 2006 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 7.9 % 4.8 % 12.7 % Tuesday 8.1 4.7 12.8 Wednesday 7.9 5.0 12.9 Thursday 8.1 5.0 13.1 Friday 8.2 4.2 12.4 Saturday 12.4 4.3 16.7 Sunday 12.7 6.6 19.3 Total 65.3 % 34.7 % 100.0 % Calls in sample = 81,632. Note: Individual figures may not add to totals due to rounding. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Outgoing, itemized calls only. All seven-digit dialed calls are considered intrastate. 800-type calls and calls for which a cross-state distinction could not be made were excluded from this analysis. Note also that only data from first, second and third quarter 2008 were available for these calculations. 11 - 10 12 - 1 12 Price Indices for Telephone Services The Bureau of Labor Statistics (BLS) collects a variety of information on telephone service as part of three separate programs -- the Consumer Price Index (CPI), the Producer Price Index (PPI), and the Consumer Expenditure Survey. They can be found on the Internet at www.bls.gov. The following material illustrates the range of information available from price indices. 1. Long-Term Trends in Price Indices A price index for telephone service was first published in 1935. Since that time, telephone prices have tended to increase at a slower pace than most other prices. Table 12.1 shows long-term changes in the consumer price indices for all items, all services, telephone services, each of the seven major categories that currently constitute the overall CPI and several services that are often characterized as being public utilities. Chart 12.1 shows the CPI telephone services trend as compared to the CPI all items trend from 1958 through 2008. 2. Comprehensive Price Indices The CPI index of telephone services is based on a market basket intended to represent the telephone-related expenditures of a typical urban household. It includes local, long distance, and cellular services. Beginning in 1988, the CPI for all items has consistently been higher than the CPI for telephone services as shown in Chart 12.1. The annual rates of change are shown in Table 12.2 and the associated chart for the overall CPI (which measures the impact of inflation on consumers) and the CPI for telephone services. In addition, Table 12.2 shows the gross domestic product chain-type price index (which measures inflation throughout the economy) prepared by the Department of Commerce’s Bureau of Economic Analysis. Chart 12.2 shows the annual percentage changes for the overall CPI and CPI for telephone services. 3. Price Indices for Local Service The CPI index of local telephone charges is based on a broadly defined market basket that includes: monthly service charges, message unit charges, leased equipment, installation, service enhancements (such as tone dialing and call waiting), taxes, and subscriber line charges. In contrast, the PPI index of monthly residential rates is much more narrowly defined. It is based only on monthly service charges for residential service, optional touch-tone service, and subscriber line charges. It excludes taxes, charges for special services such as call waiting, and all other expenditures. The annual rates of change for these indices of local costs are presented in Table 12.3 and Chart 12.3. 4. Price Indices for Long Distance Service Price indices are available for intrastate toll and interstate toll services. These series are also presented in Table 12.3 and Chart 12.3. 12 - 2 5. Price-Index Limitations Price indices are less reliable when industries are changing rapidly. For example, in 1992, long distance carriers began to increase basic rates while greatly expanding their range of discount offerings. The fixed market basket of toll calls measured for the CPI did not fully reflect these discounts. In 1995, BLS made major changes to the PPI telephone series, and there are no data after July 1995 comparable with prior data. Because of these sorts of difficulties, measures of average revenues are sometimes used as alternatives to price indices. 1958 - 2008 1998 - 2008 CPI All Items 4.0 % 2.5 % CPI All Services 5.0 3.3 CPI Telephone Services 1 1.7 0.1 CPI Major Categories: - Food & Beverages * 3.0 - Housing * 3.0 - Apparel 1.9 -1.1 - Transportation 3.5 1.6 - Medical Care 5.9 4.1 - Recreation * 1.2 - Other Goods & Services * 3.4 CPI Public Transportation 4.9 2.3 CPI Utility (Piped) Gas Service 5.5 7.3 CPI Electricity 3.8 4.4 CPI Water & Sewerage Maintenance 5.6 4.5 CPI Postage 4.6 3.0 Source: Bureau of Labor Statistics. Table 12.1 (Annual Rates of Change) * Series not established until after 1955. 1 The CPI telephone service index was revised in December of 1997. Long-Term Changes for Various Price Indices Chart 12.1 CPI All Items and CPI Telephone Services Base Periods: 1982-84 = 100 0 50 100 150 200 250 1958 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 CPI All Items CPI Telephone Services 12 - 3 1980 9.7 12.5 4.6 1981 8.3 8.9 11.7 1982 5.2 3.8 7.2 1983 3.4 3.8 3.6 1984 3.6 3.9 9.2 1985 2.8 3.8 4.7 1986 2.3 1.1 2.7 1987 2.9 4.4 -1.3 1988 3.7 4.4 1.3 1989 3.5 4.6 -0.3 1990 4.1 6.1 -0.4 1991 3.1 3.1 3.5 1992 2.1 2.9 -0.3 1993 2.3 2.7 1.8 1994 2.2 2.7 0.7 1995 2.0 2.5 1.2 1996 1.9 3.3 2.1 1997 1.5 1.7 0.2 1998 1.1 1.6 0.3 * 1999 1.5 2.7 0.4 2000 2.3 3.4 -2.3 2001 2.5 1.6 1.3 2002 1.7 2.4 0.2 2003 2.2 1.9 -2.7 2004 3.2 3.3 -2.5 2005 3.5 3.4 0.4 2006 2.8 2.5 1.7 2007 2.6 4.1 2.1 2008 2.1 0.1 2.9 * The CPI telephone service index was revised in December of 1997. Sources: Bureau of Labor Statistics and Bureau of Economic Analysis. Table 12.2 Annual Changes in Major Price Indices CPI - All Items CPI - Telephone Services CPI All Items and CPI Telephone Services Chart 12.2 Note: All values calculated as the percent change from December of the previous year through December of the year shown, except the GDP price index, which is based on changes from the 4th quarter to 4th quarter. GDP Chain-Type Price Index -20 -10 0 10 20 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 P e rcen t C h an g e fro m P r io r Y ear CPI All Items CPI Telephone Services 12 - 4 1980 7.0 7.1 3.4 5.5 -0.6 2.3 1981 12.6 15.6 14.6 15.9 6.2 8.0 1982 10.8 9.0 2.7 3.9 4.2 1.7 1983 3.1 0.2 1.4 0.0 7.4 3.9 1984 17.2 10.4 -4.3 -5.1 3.6 3.8 1985 8.9 12.4 -3.7 -3.0 0.6 2.1 1986 7.1 8.9 -9.4 -10.0 0.3 -3.5 1987 3.3 2.6 -12.4 -11.8 -3.0 -3.0 1988 4.5 4.6 -4.2 -2.1 -4.2 -3.8 1989 0.6 1.9 -1.3 -1.7 -2.6 0.5 1990 1.0 1.5 -3.7 -0.1 -2.2 -2.2 1991 5.1 2.1 1.3 -1.3 -1.5 -2.6 1992 0.5 -0.2 -1.3 1.0 -2.4 1.3 1993 1.0 0.8 6.5 3.8 0.2 -1.1 1994 -0.3 0.7 5.4 6.1 -1.0 -1.4 1995 2.6 2 0.1 2 -3.8 2 1996 0.9 0.2 3.7 0.8 6.1 0.9 1997 1.0 0.1 -4.3 7.8 2.8 -4.3 1998 1.3 0.0 -0.8 -0.4 1.5 -3.7 1999 2.8 0.2 -0.7 2.4 -1.6 -2.8 2000 5.5 1.5 -11.2 -4.3 -6.0 0.2 2001 4.5 2.7 -2.0 -9.4 -1.7 1.7 2002 5.3 1.6 -5.9 -18.5 -6.1 -0.3 2003 2.6 1.9 -10.9 -2.4 -9.4 -12.6 2004 1.1 0.7 -8.7 0.7 -6.6 -2.9 2005 3.3 0.9 -3.0 7.4 0.4 0.2 2006 2.2 2.7 5.0 20.6 3.3 1.2 2007 4.1 1.6 2.4 10.8 5.9 9.2 2008 3.0 0.5 9.1 15.3 9.5 4.2 Note: Data reflect the percent change from December of the previous year through December of the year shown. Source: Bureau of Labor Statistics. CPI Telephone Service Price Indices Chart 12.3 Base Periods: December 1997 = 100 Table 12.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services Local Residential Service Toll Service 1 Interstate Intrastate CPI PPICPI PPI CPI PPI 1 The CPI toll indices represent rates for households. Through 1994, PPI toll indices represent rate changes for both business and residential consumers. Since 1995, PPI indices reflect rates for residential customers. 2 The PPI telephone indices were revised in June of 1995. The series are not comparable. 0 20 40 60 80 100 120 140 160 180 200 220 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 CPI Local Services CPI Interstate Toll CPI Intrastate Toll 12 - 5 13 - 1 13 Price Levels 1. Local Rates The price indices maintained by the Bureau of Labor Statistics indicate percentage changes in the price of telephone services. BLS does not publish actual rate levels. Calculations of average rates are based on surveys by FCC staff. These surveys use the same sampling areas and weights used by BLS in constructing the Consumer Price Index. Table 13.1 presents average local rates for residential customers in urban areas. In October 2007, the average monthly charge was $25.62 while the average charge for connecting phone service was $43.22. Table 13.2 presents average local rates for a business with a single phone line in an urban area. In October 2007, the average monthly charge was $48.17 while the average charge for connecting phone service was $68.74. Table 13.3 presents the average local rate for a residential phone line from 1940 to 2007. The table shows, after adjusting for inflation, the price of a local exchange line declined from 1940 through the early 1980s. 2. Long Distance Rates Table 13.4 contains measures of average revenue per minute (ARPM) for long distance calls. Estimates of ARPM are often used interchangeably with estimates of the average price. From 1984 to 2007 the price of long distance calling dropped from 32 cents per minute to 8 cents per minute. The average price of 8 cents per minute represents a mix of international calling (9 cents per minute) and domestic interstate calling (7 cents per minute). The decline in prices since 1984 is more than 75% after adjusting for the impact of inflation. Chart 13.1 shows that on a per minute basis, the cost of access and of contributing to universal service support has declined through 2002. These declines account for much of the decrease in interstate toll rates. 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Representative Monthly Charge 1 2 $13.62 $13.71 $13.67 $13.75 $13.77 $13.64 $14.49 $14.38 $14.54 $14.57 $14.66 $15.03 $15.62 Subscriber Line Charges 3.54 3.54 3.53 3.52 3.58 4.50 5.05 5.74 5.86 5.81 5.82 5.97 5.74 Additional Monthly Charge for Touch- Tone Service 0.44 0.30 0.25 0.10 0.09 0.06 0.04 2 2 2 2 2 2 Taxes, 911, and Other Charges 2.41 2.40 2.42 2.39 2.48 2.57 3.03 3.94 4.12 4.14 4.15 4.26 4.26 Total Monthly Charge $20.01 $19.95 $19.88 $19.76 $19.93 $20.78 $22.62 $24.07 $24.52 $24.52 $24.64 $25.26 $25.62 Basic Connection Charge $40.91 $41.11 $41.04 $41.24 $41.26 $41.45 $40.02 $39.83 $39.22 $39.26 $39.62 $39.68 $39.81 Additional Connection Charge for Touch- Tone Service 0.23 0.23 0.17 0.12 0.12 0.12 0.12 2 2 2 2 2 2 Taxes, 911, and Other Charges 2.44 2.36 2.46 2.38 2.57 2.53 2.81 1.33 3.32 3.44 3.17 3.45 3.41 Total Connection Charge $43.58 $43.70 $43.67 $43.74 $43.95 $44.10 $42.95 $41.16 $42.54 $42.71 $42.80 $43.13 $43.22 Additional Charge if Drop Line and Connection Block Needed $5.90 $5.74 $5.65 $5.64 $5.86 $5.84 $5.84 $5.85 $12.13 $12.45 $12.65 $13.91 $12.65 Lowest-Cost Inside Wiring Maintenance Plan $1.52 $1.78 $1.68 $2.22 $2.66 $3.03 $3.62 $3.62 $3.64 $4.08 $4.42 $4.96 $5.38 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (2008). 2 Beginning in 2002, additional monthly charges for touch-tone service are included in the monthly charge. Table 13.1 Average Residential Rates for Local Service in Urban Areas, 1995 - 2007 (As of October 15) 1 Rates are based on flat-rate service where available, and measured/message service with one hundred five-minute, same-zone, business-day calls elsewhere. As of 2001, all 95 cities in the Urban Rates Survey offered flat-rate residential service, which made measuring the cost of such calls unnecessary. Note: Details may not add to totals due to rounding. Some previously published were revised. Data for 1986 through 1994 are available in prior year reports. 13 - 3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Monthly Representative Service Charge 1 $32.48 $32.58 $32.76 $32.44 $32.41 $32.18 $31.88 $30.86 $30.65 $32.11 $32.21 $33.54 $36.58 Subscriber Line Charges 3.57 3.54 3.54 3.54 3.52 4.39 4.91 5.63 5.76 5.71 5.71 5.90 5.73 Extra for Touch-Tone Service 2 0.97 0.82 0.38 0.32 0.25 0.19 0.18 2 2 2 2 2 2 Taxes, 911, and Other Charges 4.79 4.87 4.99 4.97 5.03 5.04 5.45 5.47 5.55 5.67 5.83 5.88 5.87 Total Monthly Charge $41.80 $41.81 $41.67 $41.27 $41.21 $41.80 $42.43 $41.95 $41.96 $43.49 $43.75 $45.32 $48.17 Monthly Charge for Flat-Rate Service $34.45 $34.42 $34.68 $34.39 $33.73 $33.45 $32.02 $32.92 $33.17 $34.20 $34.19 $34.56 $35.17 Subscriber Line Charges 3.69 3.61 3.61 3.56 3.50 4.35 4.77 5.77 6.03 6.01 6.03 6.16 6.16 Extra for Touch-Tone Service 2 1.00 0.89 0.53 0.49 0.47 0.43 0.39 2 2 2 2 2 2 Taxes, 911, and Other Charges 5.58 5.55 5.58 5.63 5.49 5.68 5.98 8.16 7.91 7.53 7.77 7.68 7.35 Total Monthly Charge for Flat-Rate Service $44.71 $44.47 $44.39 $44.07 $43.20 $43.90 $43.15 $46.85 $47.12 $47.74 $47.99 $48.39 $48.67 Number of Sample Cities with Flat-Rate Service 53 53 53 54 54 54 56 52 52 56 56 56 56 Monthly Charge for Measured/Message Service $17.06 $17.26 $17.28 $17.16 $17.06 $16.92 $17.16 $17.56 $17.21 $18.49 18.30 $16.41 $18.59 200 Five-Minute Same-Zone Business-Day Calls 17.15 17.10 17.18 17.15 17.24 17.63 17.56 16.78 17.17 17.86 18.16 16.93 17.77 Subscriber Line Charges 3.54 3.51 3.51 3.53 3.52 4.39 4.90 5.56 5.65 5.86 5.80 5.49 5.57 Extra for Touch-Tone Service 2 0.98 0.83 0.39 0.33 0.25 0.20 0.19 2 2 2 2 2 2 Taxes, Including 911 Charges 5.01 5.13 5.22 5.19 5.28 5.32 5.76 4.71 4.78 5.07 5.14 4.74 5.07 Total Monthly Charge for Measured/Message Service $43.75 $43.84 $43.57 $43.35 $43.35 $44.45 $45.57 $44.61 $44.82 $47.29 $47.40 $43.57 $47.00 Number of Sample Cities with Measured/Message Service 87 86 85 85 85 85 85 86 85 86 85 78 78 Cost of a Five-Minute Same-Zone Business- Day Call $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.10 $0.10 $0.09 $0.11 Basic Connection Charge $67.87 $68.47 $68.67 $65.83 $67.87 $67.77 $67.04 $67.29 $67.23 $67.24 $67.35 $62.55 $62.67 Additional Connection Charge for Touch- Tone Service 2 0.27 0.17 0.17 0.12 0.12 0.12 0.12 2 2 2 2 2 2 Taxes, Including 911 Charges 4.17 4.20 4.45 4.13 4.53 4.40 4.69 5.09 6.95 6.42 6.15 6.41 6.06 Total Connection Charge $72.31 $72.85 $73.29 $70.09 $72.55 $72.29 $71.86 $72.39 $74.18 $73.66 $73.50 $68.96 $68.74 Additional Charge if Drop Line and Connection Block Needed $7.28 $6.98 $6.54 $6.54 $6.65 $6.62 $6.62 $6.52 $13.43 $13.76 $13.96 $11.45 $11.45 Lowest-Cost Inside Wiring Maintenance Plan $2.39 $2.63 $2.84 $3.04 $3.53 $3.92 $4.86 $4.73 $4.65 $4.94 $6.27 $5.77 $5.62 2 Beginning in 2002, additional monthly charges for touch-tone service are included in the monthly charge. 1 Rates are based on flat-rate service where available, and measured/message service with 200 five-minute, same-zone, business-day calls elsewhere. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (2008). Table 13.2 Average Local Rates for Businesses with a Single Line in Urban Areas (As of October 15) Note: Details may not add to totals due to rounding. Some previously published were revised. Data for 1989 through 1994 are available in prior year reports. 13 - 4 Table 13.3 Average Rate for a Residential Access Line Consumer Average Rate Consumer Average Rate Price for a Price for a Index Residential Access Line Index Residential Access Line All Urban All Urban All Goods Survey Rate Restated All Goods Survey Rate Restated and Services in 2008 and Services in 2008 (1982-1984 Dollars (1982-1984 Dollars = 100) = 100) 1940 14.0 $3.67 $56.44 1978 65.2 $8.31 $27.44 1941 14.7 3.67 53.75 1979 72.6 8.40 24.91 1942 16.3 3.64 48.08 1980 82.4 8.61 22.50 1943 17.3 3.64 45.30 1981 90.9 9.16 21.70 1944 17.6 3.66 44.77 1982 96.5 10.18 22.71 1945 18.0 3.67 43.90 1983 99.6 13.58 29.36 1946 19.5 3.67 40.52 1984 103.9 15.18 31.46 1947 22.3 3.70 35.72 1985 107.6 16.26 32.54 1948 24.1 3.91 34.93 1986 109.6 17.70 34.77 1949 23.8 4.02 36.37 1987 113.6 18.18 34.46 1950 24.1 4.29 38.33 1988 118.3 18.11 32.96 1951 26.0 4.48 37.10 1989 124.0 19.05 33.08 1952 26.5 4.62 37.54 1990 130.7 19.24 31.69 1953 26.7 4.93 39.75 1991 136.2 19.77 31.25 1954 26.9 5.10 40.82 1992 140.3 19.72 30.26 1955 26.8 5.19 41.69 1993 144.5 19.95 29.73 1956 27.2 5.24 41.48 1994 148.2 19.81 28.78 1957 28.1 5.28 40.46 1995 152.4 20.01 28.27 1958 28.9 5.36 39.93 1996 156.9 19.95 27.38 1959 29.1 5.51 40.77 1997 160.5 19.88 26.67 1960 29.6 5.55 40.37 1998 163.0 19.76 26.10 1961 29.9 5.61 40.40 1999 166.6 19.93 25.76 1962 30.2 5.62 40.07 2000 172.2 20.78 25.98 1963 30.6 5.65 39.75 2001 177.1 22.62 27.50 1964 31.0 5.66 39.31 2002 179.9 24.07 28.81 1965 31.5 5.67 38.75 2003 184.0 24.52 28.69 1966 32.4 5.64 37.48 2004 188.9 24.52 27.95 1967 33.4 5.60 36.10 2005 195.3 24.64 27.16 1968 34.8 5.61 34.71 2006 201.6 25.26 26.98 1969 36.7 5.68 33.32 2007 207.3 25.62 26.61 1970 38.8 5.76 31.96 2008 215.3 1971 40.5 6.04 32.11 1972 41.8 6.38 32.86 1973 44.4 6.69 32.44 1974 49.3 7.08 30.92 1975 53.8 7.32 29.29 1976 56.9 7.81 29.55 1977 60.6 8.07 28.67 Sources:Averages for 1940 through 1982 are from an AT&T local rate survey and represent January 1 rates. These averages exclude taxes and are for rotary service including the cost of a telephone. See Reference Book of Rates, Price Indices and Expenditures for Telephone Service, Wireline Competition Bureau. Starting in 1983, averages are from the Urban Rates Survey and represent October 15 rates. These averages include taxes and are for touch tone service but do not include telephone rental charges or any unbundled inside wiring maintenance plan charges. The 2005 and 2006 rates are revised. 13 - 5 Table 13.4 Average Revenue per Minute Consumer Average Revenue Per Consumer Average Revenue Per Minute for Interstate and International Calls Price Minute for Interstate and Price Interstate and International Interstate Calls Index International Calls Index International Calls Calls 1/ All Goods Restated All Goods Restated Net of and Services in 2008 and Services in 2008 Access and (1982-1984 Dollars (1982-1984 Dollars Universal = 100) = 100) Service Cost 1930 16.7 $0.27 $3.54 1970 38.8 $0.23 $1.28 $2.43 $0.20 1931 15.2 0.27 3.81 1971 40.5 0.25 1.30 2.35 0.22 1932 13.7 0.26 4.12 1972 41.8 0.24 1.26 2.31 0.21 1933 13.0 0.28 4.56 1973 44.4 0.25 1.23 2.29 0.22 1934 13.4 0.27 4.37 1974 49.3 0.26 1.12 2.25 0.22 1935 13.7 0.27 4.17 1975 53.8 0.27 1.09 2.23 0.24 1936 13.9 0.25 3.89 1976 56.9 0.29 1.08 2.20 0.25 1937 14.4 0.22 3.24 1977 60.6 0.28 1.01 2.18 0.25 1938 14.1 0.21 3.27 1978 65.2 0.29 0.95 2.09 0.25 1939 13.9 0.22 3.34 1979 72.6 0.29 0.86 1.76 0.26 1940 14.0 0.21 3.23 1980 82.4 0.30 0.79 1.34 0.27 1941 14.7 0.21 3.04 1981 90.9 0.33 0.77 1.21 0.31 1942 16.3 0.22 2.85 1982 96.5 0.34 0.76 1.09 0.32 1943 17.3 0.21 2.62 1983 99.6 0.35 0.75 1.09 0.33 1944 17.6 0.22 2.64 1984 103.9 0.32 0.67 1.05 0.30 1945 18.0 0.21 2.54 1985 107.6 0.31 0.62 1.01 0.29 1946 19.5 0.20 2.18 1986 109.6 0.28 0.55 0.97 0.26 1947 22.3 0.19 1.85 1987 113.6 0.25 0.46 0.99 0.22 1948 24.1 0.19 1.67 1988 118.3 0.23 0.43 1.02 0.21 1949 23.8 0.19 1.71 1989 124.0 0.22 0.38 1.02 0.19 1950 24.1 0.19 1.73 1990 130.7 0.20 0.33 1.00 0.17 1951 26.0 0.20 1.66 1991 136.2 0.20 0.31 1.02 0.15 1952 26.5 0.20 1.64 1992 140.3 0.19 0.30 1.01 0.15 $0.09 1953 26.7 0.21 1.68 1993 144.5 0.19 0.29 1.02 0.15 0.09 1954 26.9 0.22 1.78 1994 148.2 0.18 0.26 0.93 0.14 0.08 1955 26.8 0.23 1.84 1995 152.4 0.17 0.24 0.91 0.12 0.07 1956 27.2 0.23 1.85 1996 156.9 0.16 0.22 0.76 0.12 0.08 1957 28.1 0.24 1.82 1997 160.5 0.15 0.20 0.69 0.11 0.06 1958 28.9 0.24 1.78 1998 163.0 0.14 0.19 0.58 0.11 0.08 1959 29.1 0.24 1.79 1999 166.6 0.14 0.18 0.54 0.11 0.08 1960 29.6 0.24 1.76 2000 172.2 0.12 0.15 0.52 0.09 0.06 1961 29.9 0.25 1.79 2001 177.1 0.10 0.12 0.35 0.08 0.06 1962 30.2 0.25 1.80 2002 179.9 0.09 0.11 0.28 0.07 0.05 1963 30.6 0.25 1.75 2003 184.0 0.08 0.09 0.21 0.06 0.05 1964 31.0 0.25 1.73 2004 188.9 0.08 0.09 0.14 0.06 0.05 1965 31.5 0.24 1.64 2005 195.3 0.07 0.08 0.10 0.07 0.05 1966 32.4 0.24 1.61 2006 201.6 0.07 0.07 0.10 0.06 0.04 1967 33.4 0.24 1.56 2007 207.3 0.08 0.08 0.09 0.07 0.04 1968 34.8 0.24 1.46 2008 215.3 1969 36.7 0.24 1.41 1/ Sources: Estimates for 1930 through 1981 are based on information in AT&T's Long Lines Statistics , 1930-1963, 1946-1970, and Starting in 1992, billed revenue per minute for international service differs in Table 6.1 and Table 13.4. Data in Table 6.1 are calculated using all U.S. billed minutes and revenues. Data for Table 13.4 represent charges for most U.S. billed calls that originate or terminate in the United States. International-to-international revenues and reorigination, country-beyond and country-direct minutes are not included in this table. 1960-1981, and appear to represent data for the conterminous U.S. only. Data prior to 1946 may not be comparable. Data for 1982 and 1983 were estimated using BLS price index changes. Data for 1984 through 1991 were supplied by AT&T. Starting with 1992, data are from the Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues . For 1970 through 1991, interstate revenue per minute was estimated using the combined interstate and international revenue per minute estimates shown in the table, and international revenue and revenue perminute data in Table 1 and Table 2 of Trends in the International Telecommunications Industry . 13 - 6 Item 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Revenue per minute $0.115 $0.117 $0.104 $0.098 $0.097 $0.087 $0.094 $0.094 $0.081 $0.076 $0.062 $0.054 $0.052 $0.050 $0.046 $0.049 retained by carrier Cost to carrier per minute for $0.062 $0.059 $0.058 $0.054 $0.049 $0.044 $0.037 $0.034 $0.026 $0.020 $0.017 $0.016 $0.015 $0.016 $0.015 $0.017 access and universal service Chart 13.1 Revenue per Minute for Interstate Calls $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Revenue per minute retained by carrier Cost to carrier per minute for access and universal service 13 - 7 14 - 1 14 Residential Wireline Usage Bill Harvestingฎ data collected by TNS Telecoms provides information on actual usage in the residential telecom market as collected from the actual telecommunications bills of households. TNS Telecoms (TNS), a telecommunications market information firm, conducts nationwide surveys and Bill Harvestingฎ on a quarterly basis from over 120,000 households each year. These surveys, in which households are asked to mail copies of their phone bills for one month to TNS, are called Bill Harvesting studies. The company has donated databases containing information on residential phone usage to the Commission. The Bill Harvesting data reflect calls itemized on residential telephone bills for wireline service. The figures have not been adjusted to take into account the fact that call itemization is increasingly omitted from customer bills. Thus, 800 and 800-like calls made from the residence are not included, nor are collect calls made from the residence. In contrast, 800 and 800-like calls received, and shown on the household monthly bill, are included, as are collect calls received. Table 14.1 shows the percentage of residential wireline long distance telephone usage that is intrastate, interstate and international. In 2008, 34% of residential toll phone calls were interstate as opposed to 47% of minutes. Table 14.2 shows the average number of toll minutes on residential phone bills that are intrastate, interstate and international from 1995-2008. Table 14.3 shows the distribution of residential wireline long distance calls by call duration. The average interstate residential call lasts about nine minutes, although about 42% of interstate toll calls last one minute or less. Tables 14.4 and 14.5 show the duration and the average distance (sometimes called length of haul) of residential wireline intrastate and interstate long distance calls, respectively. The average distance of an interstate toll call in 2008 was 765 miles, as opposed to about 55 miles for an intrastate toll call. Table 14.6 shows the percentage of residential wireline long distance minutes by day of week and time of day. Over the past three years, these data indicate that interLATA wireline traffic has been slowly moving to weekdays from nights and weekends. Type 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Calls IntraLATA-Intrastate 41 % 40 % 38 % 38 % 39 % 39 % 42 % 44 % 45 % 44 % 44 % 45 % 44 % 44 % InterLATA-Intrastate 19 18 19 19 18 17 18 17 17 17 16 16 16 16 IntraLATA-Interstate 11111111111111 InterLATA-Interstate 37 35 37 36 37 36 36 34 33 34 35 32 33 33 International 11111111222222 Others 1 255 44522222334 Total Calls in Sample 197,787 165,465 483,685 578,850 474,408 538,337 456,328 427,781 340,763 312,918 265,194 247,425 208,877 182,065 Minutes IntraLATA-Intrastate 28 % 29 % 27 % 27 % 28 % 29 % 30 % 32 % 35 % 32 % 32 % 34 % 33 % 33 % InterLATA-Intrastate 18 18 18 18 17 17 18 18 16 17 16 16 16 16 IntraLATA-Interstate 11111111111111 InterLATA-Interstate 50 47 49 49 49 47 48 46 44 46 46 45 46 46 International 21112222233333 Others 1 144 3 3 5 1 1 1112 2 2 Total Minutes in Sample 1,493,674 1,210,675 3,673,315 4,330,888 3,544,905 4,030,643 3,319,982 2,992,644 2,308,266 2,088,773 1,766,565 1,614,546 1,376,557 1,194,486 Note: Includes itemized calls only. Figures may not add to totals due to rounding. 1 Toll-free (800, 888, 877, 866) calls billed to residential customers, 900 calls and calls that cannot be classified. Type 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 IntraLATA-Intrastate 40 41 41 40 36 33 32 28 25 18 17 16 14 12 InterLATA-Intrastate 26 26 27 26 23 19 19 16 12 10 8 8 7 6 IntraLATA-Interstate 1 1 1 1 1 1 1 1 1 1 0 1 0 0 InterLATA-Interstate 71 67 73 71 65 55 51 41 31 26 24 22 19 16 International 3 1 2 2 2 2 2 2 2 2 2 2 1 1 Others 1 1 6 6 5 4 5 1 1 1 1 0 1 1 1 All Types 143 143 149 144 131 116 105 90 71 56 51 49 42 36 Note: Includes itemized calls only. Figures may not add to totals due to rounding. 1 Toll-free (800, 888, 877, 866) minutes billed to residential customers, 900 minutes and minutes for calls that cannot be classified. Average Residential Wireline Monthly Toll Minutes Distribution of Residential Wireline Toll Calls and Minutes Table 14.1 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1995 1996 1997 Table 14.2 14 - 3 Duration of Call (Minutes) Intrastate Interstate All Calls 1 49.2 % 42.3 % 46.6 % 2 14.2 11.0 13.0 3 7.4 5.8 6.8 4 4.7 4.1 4.5 5 3.4 3.1 3.3 6 2.6 2.6 2.6 7 1.9 2.3 2.1 8 1.6 2.0 1.8 9 1.4 1.7 1.5 10 1.3 1.6 1.4 11-15 4.0 6.1 4.8 16-20 2.4 4.2 3.1 21-25 1.7 3.2 2.2 26-30 1.1 2.3 1.6 31-45 1.7 3.9 2.6 46-60 0.7 1.9 1.1 > 60 0.7 1.8 1.1 Average Duration 5.3 8.9 6.7 Median Duration 2.0 2.0 2.0 Sample Size 102,830 62,031 164,861 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Table 14.3 Distribution of Residential Wireline Long Distance Call Durations: 1 The sample includes domestic, directly-dialed calls. 2008 1 14 - 4 Duration Distance (In Minutes) (In Miles) Average Median Average Median 1995 6.0 2.0 53.0 26.0 1996 6.0 2.0 55.0 28.0 1997 6.2 2.0 56.0 28.0 1998 6.0 2.0 55.0 29.0 1999 6.0 2.0 54.0 29.0 2000 6.1 2.0 54.0 28.0 2001 5.9 2.0 53.0 29.0 2002 5.6 2.0 52.0 28.0 2003 5.6 2.0 51.0 28.0 2004 5.3 2.0 55.8 29.5 2005 5.4 2.0 54.6 29.2 2006 5.2 2.0 54.6 30.6 2007 5.3 2.0 54.2 30.0 2008 5.3 2.0 55.0 31.8 Duration Distance (In Minutes) (In Miles) Average Median Average Median 1995 10.6 4.0 689 507 1996 10.0 4.0 670 473 1997 10.3 4.0 695 480 1998 10.3 4.0 691 493 1999 10.0 3.9 693 501 2000 10.0 4.0 706 524 2001 9.7 3.0 686 501 2002 9.4 3.0 692 489 2003 8.9 3.0 684 481 2004 8.9 2.0 721 525 2005 8.8 2.0 759 568 2006 8.9 2.0 751 575 2007 9.0 2.0 763 594 2008 8.9 2.0 765 577 Table 14.5 Duration and Distance of Interstate Toll Calls 1 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Direct-dial calls carried by long distance carriers and local exchange carriers. Includes only domestic calls. Duration and Distance of Intrastate Toll Calls 1 Table 14.4 Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. 1 Direct-dial calls carried by long distance carriers and local exchange carriers. Includes only domestic calls. 14 - 5 2008 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 9.9 % 4.7 % 14.6 % Tuesday 10.1 4.7 14.7 Wednesday 9.5 5.0 14.5 Thursday 9.4 4.8 14.2 Friday 9.0 4.0 13.0 Saturday 9.3 3.8 13.1 Sunday 11.0 5.0 16.0 Total 68.1 % 31.9 % 100.0 % Based on a sample of 88,682 directly-dialed, interLATA calls. 2007 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 9.6 % 5.2 % 14.9 % Tuesday 9.2 5.0 14.2 Wednesday 9.1 4.9 13.9 Thursday 9.1 4.8 13.9 Friday 9.2 4.2 13.3 Saturday 9.3 4.0 13.3 Sunday 11.3 5.2 16.6 Total 66.8 % 33.2 % 100.0 % Based on a sample of 102,515 directly-dialed, interLATA calls. 2006 Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total Monday 9.8 % 5.2 % 15.0 % Tuesday 8.7 5.0 13.7 Wednesday 8.4 5.1 13.5 Thursday 8.7 5.0 13.7 Friday 8.7 4.5 13.2 Saturday 9.6 3.7 13.4 Sunday 11.9 5.6 17.6 Total 65.9 % 34.1 % 100.0 % Based on a sample of 118,243 directly-dialed, interLATA calls. Note: Individual figures may not add to totals due to rounding. Source: Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor™, Bill Harvestingฎ. Table 14.6 Distribution of Residential Wireline Long Distance Minutes By Day and Time 14 - 6 15 - 1 15 Revenues In 1993, the Commission required all carriers with interstate revenues to begin filing an annual Telecommunications Relay Service (TRS) Fund Worksheet. Because revenues derived from providing access to the interstate network are considered to be interstate, virtually all carriers were required to file information. Starting in 1997, larger carriers were required to file Universal Service Fund (USF) worksheets, which contain similar information but with breakouts for revenues from service provided for resale and for service provided to end users. End-user revenues include revenues associated with services to end users and do not include resale (carrier’s carrier) revenues. Carrier's carrier revenues are sales of telecommunications to universal service contributors for resale in the form of telecommunications. Filers report all other revenues as end-user revenues. 1 On April 1, 2000, carriers first filed an FCC Form 499-A Telecommunications Reporting Worksheet to report prior year revenue data for TRS, USF, North American Numbering Planning Administration, and local number portability contribution purposes. The FCC Form 499-A superseded the older reporting requirements and is now filed to satisfy carrier registration requirements at the Commission as well. The carriers also file quarterly data reported on Form 499Q. Table 15.1 shows the major components of telecommunications revenues from 1999 to the present: carrier’s carrier revenues and end-user revenues for local, wireless, and toll service. Chart 15.1 shows the trend of the end-user revenue percentages for local, wireless and toll services. Table 15.2 shows how revenues by type of service have changed over time. Table 15.3 shows the number of telecommunications service providers by principal type of business. The publication Telecommunications Provider Locator (January 2010 edition) lists carriers that filed a FCC Form 499-A worksheet in 2008. It also contains an address and contact telephone number for each carrier. Table 15.4 contains revenues for eleven years through 2008 by type of carrier. Additional revenue detail can be found in the latest Telecommunications Industry Revenue report (September 2010 edition). State-level telephone revenues are estimated using data from various editions of Telecommunications Industry Revenue, Statistics of Communications Common Carriers, Local Telephone Competition, and access filings to the FCC. 2 1 Carrier's carrier revenues and end-user revenues are defined in the FCC Form 499 instructions. Carrier's carrier revenues includes, for example, most access services that local exchange carriers provide to toll carriers. Sales to de minimis carriers and to others that are exempt from universal service contribution requirements, however, must be classified as end-user revenues. Filers contribute to the universal service funding mechanism based on types of end-user revenues. 2 See Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (various issues), Industry Analysis Division, Common Carrier Bureau, State-by-State Telephone Revenues and Universal Service Data (various issues). 15 - 2 Table 15.5 provides estimates of telecommunications revenues by state for 1998 to 2007. Table 15.6 provides estimates of end-user and carrier’s carrier revenues by state for 2007. Table 15.7 provides estimates of telecommunications revenues for incumbent local exchange carriers, competitive local exchange carriers, and mobile wireless carriers by state; as well as estimates for subscriber line charges, access, and toll services. Table 15.1 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 $301,800 $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 are available in prior year reports. 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 revenues. 4 Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table through 2007, but are not 5 Preliminary 2009 data are based on FCC Form 499-Q quarterly filings. Companies that do not contribute to universal service are not required to make these filings. The quarterly filings include preliminary data for the just closed quarter and projections for the coming quarter, and therefore are not as accurate as the subsequent annual filings. Also, FCC Form 499-Q filers do not separate revenue by type of service. Therefore, revenue totals by service type for 2008 are based on type of filer rather than on data filed by service. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues , except as noted. End-User Telecommunications Revenues included in the universal service contribution base, and are not included in the pr 3 Payphone revenues are included with local service revenues in this tab Chart 15.1 1997 Local Service 36.7% Wireless Service 16.0% Toll Service 47.3% 2008 Toll Service 19.8% Local Service 30.4% Wireless Service 49.7% 15 - 3 Telecommunications Revenues Reported by Type of Service (Dollar Amounts Shown in Millions) Universal Service FCC Form 499-A & TRS Data Data Telecommunications Revenues 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 1/ 2,536 2,218 1,932 1,585 1,192 1,063 1,002 924 659 470 379 Local Private Line 2/ 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 2/ 11,052 10,826 11,563 12,127 12,758 12,136 11,715 11,113 10,827 10,141 9,283 Access 2/ 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 103 260 575 1,301 1,410 1,783 1,862 2,227 2,133 1,947 1,948 595 Total Local Service Revenues 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 345 379 495 681 842 1,696 2,118 2,587 2,841 3,286 3,551 189 Total Wireless Service Revenues 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,076 115,283 121,225 124,485 Operator 1/ 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 1,810 2,983 3,467 3,927 3,767 2,905 2,577 2,458 2,340 2,669 2,611 1,532 Total Toll Service Revenues 105,055 108,246 109,615 99,301 83,697 77,188 71,214 69,250 64,379 64,802 60,988 Total Telecommunications Revenues 246,392 268,505 292,762 301,799 292,341 291,122 291,735 297,921 297,269 299,451 297,366 Non-Telecommunications Revenues 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 Revenues $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 prior year reports. 1/ TRS filers generally reported pay telephone revenues as local service revenues, access revenues or operator toll revenues. The Universal Service and FCC Form 499-A Worksheets contain a separate category for payphone coin revenues. Starting in 1997, payphone revenues include payphone compensation received from toll carriers. 2/ TRS Worksheet filers generally reported special access revenues as access revenues. 3/ Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless and toll revenues. Reported amounts are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll intrastate and interstate revenues by type of carrier. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues. Table 15.2 TRS Worksheets Additional Revenues from TRS Worksheets Local Service Bills 3/ Additional Revenues from Additional Revenues from Local Service Bills 3/ TRS Worksheets Local Service Bills 3/ 15 - 4 Table 15.3 Number of Interstate Telecommunications Providers By Principal Type of Business Service Provider Category 1/ 2/ 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Incumbent Local Exchange Carriers (ILECs) 1,348 1,318 1,335 1,335 1,310 1,303 1,304 1,303 1,311 1,304 1,297 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 212 298 479 511 451 601 690 734 780 774 813 Local Resellers 54 73 105 132 100 100 136 122 133 124 129 Interconnected VoIP Providers 145 251 334 Other Local Exchange Carriers 10 23 23 26 64 72 92 187 169 163 186 Total: Competitors of ILECs 276 394 607 669 615 773 918 1,043 1,227 1,312 1,462 Total: Fixed Local Service Providers 3/ 1,624 1,712 1,942 2,004 1,925 2,076 2,222 2,346 2,538 2,616 2,759 Payphone Providers 615 704 699 751 606 605 642 576 581 432 409 Wireless Telephony Including Cellular, Personal Communications Service (PCS) and SMR Telephony Carriers 808 784 783 670 422 413 396 402 426 428 412 Paging & Messaging Service 303 391 425 425 346 347 360 300 304 238 229 Specialized Mobile Radio (SMR) Dispatch 119 199 191 182 138 155 172 155 165 153 162 Wireless Data Service Providers and 28 45 31 29 21 24 35 48 60 55 67 Other Mobile Service Providers Total: Wireless Service Providers 1,258 1,419 1,430 1,306 927 939 963 905 955 874 870 Interexchange Carriers (IXCs) 171 178 212 233 229 232 257 262 270 250 237 Operator Service Providers (OSPs) 24 15 20 19 18 17 19 23 24 23 31 Prepaid Calling Card Providers 20 18 23 27 27 50 67 69 85 93 121 Satellite Service Carriers 13 17 25 34 33 40 40 40 39 41 45 Toll Resellers 388 406 493 558 574 642 751 721 744 693 654 VoIP Toll Providers 12 96 Audio Bridge Service Providers 68 Other Toll Carriers 31 17 35 69 51 45 70 63 76 80 64 647 651 808 940 932 1,026 1,204 1,178 1,238 1,192 1,316 All Filers 4,144 4,486 4,879 5,001 4,390 4,646 5,031 5,005 5,312 5,114 5,354 Note: Data for 1993 through 1997 are available in prior year reports. 1/ changed over the years; for example, Interconnected VoIP category was added in 2007 for filers reporting 2006 revenues. Starting with the filings that included 2003 revenues, filers were able to identify up to five service provider types. Starting with 2003 data, counts are based on the category selected as best describing the provider's operations. 2/ Counts are based on the numbers of filers actually reporting U.S. telecommunications revenues. Counts dropped in 2002 because 3/ The total number of local service providers shown in Table 8.9 differs from the total fixed local service providers shown in Table 15.3 because the number shown in Table 8.9 includes filers that self identify as mobile or toll providers, but that report some local exchange service revenues. The number of telecommunications providers shown in Table 15.3 also differs from the numbers shown in Table 5.3 because Table 5.3 includes all filers, including new filers that reported no revenues for the themselves as interconnected VoIP but that primarily provide international termination service are reclassified as other toll carriers. Total: Toll Service Providers available at http://www.fcc.gov/wcb/stats. many affiliated filers were permitted to make consolidated filings. Source: Data filed on FCC Forms 431, 457, and 499-A worksheets. See also: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues and Telecommunications Provider Locator, Filers are asked to select for themselves a service provider category that best describes their operations. The choices have year shown. Private telecommunications providers are included with other local competitors in this table. Filers that identified 15 - 5 Table 15.4 Gross Revenues Reported by Type of Carrier (Dollars Shown in Millions) Universal FCC Form 499 Data Service & TRS Data Service Provider Category 1/ 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Incumbent Local Exchange Carriers $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 Carriers 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 Total: Competitors of ILECs 4,034 6,508 10,945 14,781 15,309 16,857 17,126 18,568 19,473 21,690 26,440 Total: 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 Total: 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 Paging & Messaging Service 3,161 3,232 3,102 2,197 1,473 1,007 872 579 555 607 426 Specialized Mobile Radio (SMR) 186 191 214 206 33 46 226 48 188 40 Dispatch Wireless Data Service Providers and 731 221 164 110 220 135 218 169 178 180 119 Other Mobile Service Providers Total: 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 Carriers 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 710 150 1,758 2,516 2,089 2,339 2,543 3,195 2,756 2,973 2,795 Total: 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 $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 prior year reports. 1/ 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 Form 431 TRS worksheets because that worksheet did not contain a separate category for satellite service providers. For 2003 and 2004, some filers identified themselves as all distance carriers. These filers have been reclassified to be consistent with prior classifications. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues. Total Telecommunications Revenues 15 - 6 2005 2006 2007 Alabama $3,394 $3,712 $4,008 $4,314 $4,052 $4,196 $4,318 $4,587 $4,580 $4,619 Alaska 590 664 717 770 778 816 823 831 834 835 American Samoa NA NA NA 13 13 13 15 17 19 21 Arizona 3,958 4,359 4,972 5,205 5,045 4,898 4,974 5,127 5,367 5,685 Arkansas 2,005 2,303 2,315 2,593 2,486 2,470 2,592 2,709 2,734 2,771 California 28,692 29,384 33,577 35,398 34,838 34,098 34,303 35,042 34,672 35,322 Colorado 4,260 4,826 5,290 5,515 5,308 5,013 4,984 5,013 5,071 5,067 Connecticut 3,173 3,405 3,924 4,020 3,854 3,884 3,821 3,929 3,709 3,745 Delaware 685 788 875 883 877 874 946 1,014 923 971 District of Columbia 1,085 1,581 1,648 1,383 1,343 1,337 1,296 1,397 1,340 1,380 Florida 15,042 17,223 18,308 18,849 18,223 18,613 20,003 19,918 19,355 18,969 Georgia 7,469 8,479 8,919 9,627 9,371 9,433 9,415 9,657 9,506 9,487 Guam 103 99 108 122 119 123 130 143 156 172 Hawaii 969 1,009 1,177 1,207 1,200 1,212 1,196 1,229 1,184 1,261 Idaho 1,010 1,092 1,210 1,245 1,244 1,237 1,223 1,300 1,322 1,390 Illinois 10,948 11,983 13,516 12,860 12,110 11,928 11,809 12,113 11,785 11,794 Indiana 4,810 5,099 5,552 5,524 5,385 5,292 5,298 5,389 5,446 5,524 Iowa 2,268 2,441 2,340 2,652 2,549 2,711 2,559 2,630 2,801 2,872 Kansas 2,304 2,588 2,571 2,656 2,479 2,473 2,436 2,488 2,602 2,631 Kentucky 3,060 3,426 3,573 3,665 3,301 3,307 3,634 3,856 3,842 3,894 Louisiana 3,432 3,913 3,964 4,274 4,185 4,232 4,278 4,430 4,403 4,369 Maine 1,105 1,195 1,328 1,387 1,365 1,359 1,353 1,425 1,374 1,411 Maryland 4,911 5,176 5,783 6,202 6,033 6,073 6,163 6,441 6,245 6,266 Massachusetts 6,338 6,561 7,428 7,367 7,121 6,983 6,897 6,962 7,112 6,963 Michigan 8,523 9,530 9,937 9,889 9,450 9,352 8,897 9,089 8,925 8,745 Minnesota 4,115 4,617 4,877 4,934 4,772 4,682 4,578 4,629 4,711 4,722 Mississippi 2,017 2,283 2,486 2,633 2,578 2,676 2,768 2,834 2,815 2,695 Missouri 4,613 5,442 5,688 6,067 5,436 5,676 5,522 5,750 5,808 5,925 Montana 780 897 937 903 907 911 897 912 921 957 Nebraska 1,587 1,737 1,760 1,865 1,796 1,799 1,744 1,749 1,746 1,745 Nevada 1,592 1,884 1,954 2,160 2,163 2,267 2,348 2,407 2,496 2,591 New Hampshire 1,246 1,313 1,429 1,419 1,399 1,373 1,362 1,474 1,418 1,412 New Jersey 9,366 9,558 10,670 10,689 10,251 10,054 10,258 10,493 9,554 9,535 New Mexico 1,433 1,518 1,515 1,656 1,631 1,706 1,767 1,775 1,823 1,891 New York 17,935 19,700 20,903 21,771 21,148 20,660 19,593 19,724 20,431 20,465 North Carolina 7,297 8,006 8,619 8,811 8,368 8,321 8,482 8,558 8,505 8,757 North Dakota 599 660 731 699 678 641 630 645 654 642 Northern Mariana Islands 30 34 32 43 46 44 44 45 43 43 Ohio 9,396 9,952 10,902 10,708 10,351 10,419 10,489 10,736 10,632 10,789 Oklahoma 2,552 2,727 2,915 3,116 3,100 3,210 3,169 3,185 3,240 3,297 Oregon 2,905 3,123 3,159 3,480 3,381 3,337 3,356 3,292 3,366 3,456 Pennsylvania 10,309 10,770 12,200 12,578 12,274 12,087 12,063 12,166 12,035 12,260 Puerto Rico 1,467 2,051 1,971 2,598 2,168 2,456 2,354 2,537 2,698 2,538 Rhode Island 859 946 1,012 989 978 965 980 963 1,012 1,047 South Carolina 3,393 3,790 4,047 4,147 4,142 4,187 4,124 4,306 4,276 4,314 South Dakota 635 716 763 712 690 668 667 712 743 757 Tennessee 4,553 4,928 5,256 5,574 5,409 5,466 5,442 5,738 5,995 5,902 Texas 17,576 19,032 21,405 21,617 21,549 21,508 21,610 22,162 22,817 22,941 Utah 1,557 1,790 1,998 2,090 2,016 1,986 2,003 2,062 2,160 2,217 Vermont 602 684 717 659 640 629 590 663 670 691 Virgin Islands 109 122 129 145 157 172 190 214 229 215 Virginia 6,576 7,020 8,013 8,506 8,174 8,107 8,074 8,134 7,931 8,324 Washington 5,080 5,703 6,253 6,260 6,215 6,090 6,172 6,005 5,955 5,827 West Virginia 1,383 1,437 1,625 1,735 1,671 1,674 1,707 1,732 1,728 1,794 Wisconsin 4,234 4,719 5,195 5,027 4,976 4,859 4,821 5,000 4,974 4,949 Wyoming 462 513 563 587 552 567 567 584 576 594 Total $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,452 NA - Not Available. Note: Figures may not add to totals due to rounding. Table 15.5 Total Telecommunications Revenues by State (Dollar Amounts Shown in Millions) 2003 20041999 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (various issues) and Industry Analysis Division, Common Carrier Bureau, State-by-State Telephone Revenue and Universal Service Data (various issues). 1998 2000 2001 2002 15 - 7 Table 15.6 Telecommunications Revenues by State: 2007 (Dollar Amounts Shown in Millions) End User Carrier's Carrier Total: End User + Carrier's Carrier Percent Interstate Intrastate Total Interstate Intrastate Total Interstate Intrastate Total of Total Alabama $1,246 $2,503 $3,749 $522 $347 $869 $1,768 $2,851 $4,619 1.54 % Alaska 264 394 657 121 56 177 385 450 835 0.28 American Samoa 5 12 17 2 2 4 7 14 21 0.01 Arizona 1,646 2,891 4,537 766 381 1,148 2,412 3,272 5,685 1.90 Arkansas 742 1,462 2,204 362 205 567 1,104 1,667 2,771 0.93 California 9,050 19,189 28,239 4,145 2,937 7,083 13,195 22,126 35,322 11.80 Colorado 1,456 2,496 3,952 766 349 1,115 2,222 2,845 5,067 1.69 Connecticut 1,088 1,925 3,013 527 204 731 1,616 2,129 3,745 1.25 Delaware 298 473 771 147 53 200 446 526 971 0.32 Dist. of Columbia 379 694 1,073 228 79 307 607 773 1,380 0.46 Florida 5,386 9,991 15,376 2,219 1,373 3,592 7,605 11,364 18,969 6.33 Georgia 2,615 5,038 7,653 1,194 640 1,835 3,809 5,678 9,487 3.17 Guam 61 72 133 28 10 38 89 83 172 0.06 Hawaii 368 644 1,011 158 92 250 525 736 1,261 0.42 Idaho 411 668 1,079 214 97 311 625 765 1,390 0.46 Illinois 3,289 6,327 9,616 1,376 801 2,177 4,665 7,128 11,794 3.94 Indiana 1,545 2,896 4,442 670 412 1,082 2,216 3,308 5,524 1.84 Iowa 824 1,391 2,216 396 260 657 1,221 1,651 2,872 0.96 Kansas 742 1,367 2,110 359 162 521 1,102 1,529 2,631 0.88 Kentucky 1,048 2,086 3,134 437 322 760 1,485 2,409 3,894 1.30 Louisiana 1,138 2,460 3,599 439 331 770 1,577 2,791 4,369 1.46 Maine 347 774 1,121 181 109 290 528 883 1,411 0.47 Maryland 1,805 3,190 4,995 872 398 1,270 2,677 3,589 6,266 2.09 Massachusetts 1,828 3,771 5,600 897 466 1,364 2,726 4,238 6,963 2.33 Michigan 2,283 4,785 7,068 973 704 1,677 3,256 5,489 8,745 2.92 Minnesota 1,291 2,448 3,740 643 339 982 1,934 2,788 4,722 1.58 Mississippi 724 1,469 2,193 307 195 501 1,031 1,663 2,695 0.90 Missouri 1,590 3,025 4,615 743 567 1,310 2,332 3,592 5,925 1.98 Montana 278 461 739 135 83 218 413 544 957 0.32 Nebraska 463 896 1,359 232 154 386 695 1,051 1,745 0.58 Nevada 809 1,287 2,096 343 151 494 1,152 1,438 2,591 0.87 New Hampshire 399 717 1,117 193 102 295 593 819 1,412 0.47 New Jersey 2,732 4,836 7,568 1,323 645 1,967 4,055 5,481 9,535 3.18 New Mexico 551 912 1,463 279 149 428 830 1,061 1,891 0.63 New York 5,153 11,173 16,326 2,460 1,679 4,139 7,613 12,852 20,465 6.83 North Carolina 2,450 4,652 7,102 997 658 1,655 3,447 5,309 8,757 2.92 North Dakota 172 323 495 92 54 147 265 377 642 0.21 N. Mariana Islands 12 22 34 6 3 9 18 25 43 0.01 Ohio 2,835 5,808 8,643 1,250 896 2,146 4,085 6,704 10,789 3.60 Oklahoma 878 1,752 2,630 439 228 667 1,317 1,980 3,297 1.10 Oregon 981 1,746 2,728 476 252 728 1,457 1,999 3,456 1.15 Pennsylvania 3,359 6,330 9,689 1,604 967 2,571 4,963 7,296 12,260 4.09 Puerto Rico 731 1,383 2,113 287 138 425 1,018 1,520 2,538 0.85 Rhode Island 277 579 856 120 71 191 397 650 1,047 0.35 South Carolina 1,196 2,289 3,484 495 335 830 1,690 2,624 4,314 1.44 South Dakota 229 360 588 104 65 169 333 424 757 0.25 Tennessee 1,631 3,251 4,881 635 387 1,021 2,265 3,637 5,902 1.97 Texas 5,672 12,658 18,330 2,753 1,859 4,611 8,424 14,517 22,941 7.66 Utah 625 1,121 1,746 315 155 471 941 1,276 2,217 0.74 Vermont 203 339 542 102 47 149 305 386 691 0.23 Virgin Islands 88 76 164 40 11 51 129 87 215 0.07 Virginia 2,353 4,208 6,561 1,173 590 1,763 3,526 4,798 8,324 2.78 Washington 1,644 3,005 4,649 755 423 1,178 2,399 3,428 5,827 1.95 West Virginia 525 881 1,406 251 137 388 776 1,018 1,794 0.60 Wisconsin 1,344 2,593 3,937 619 392 1,012 1,963 2,986 4,949 1.65 Wyoming 176 281 456 96 41 137 272 322 594 0.20 Total $81,236 $158,380 $239,616 $37,270 $22,566 $59,836 $118,506 $180,947 $299,452 100.00 Note: Figures may not add to totals due to rounding. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (December 2009). 15 - 8 Table 15.7 Telecommunications Revenues by Type of Service: 2007 (Dollar Amounts Shown in Millions) Alabama $1,129 $225 $1,831 $174 $304 $955 $4,619 Alaska NA NA NA NA NA NA 835 American Samoa NA NA NA NA NA NA 21 Arizona 880 788 2,355 187 506 968 5,685 Arkansas 606 135 1,092 88 261 590 2,771 California 6,696 2,189 15,340 1,068 3,307 6,721 35,322 Colorado 1,077 321 1,908 205 557 999 5,067 Connecticut 842 197 1,415 137 312 842 3,745 Delaware 189 75 368 37 89 214 971 District of Columbia 364 104 491 35 148 238 1,380 Florida 4,129 981 7,748 770 1,345 3,997 18,969 Georgia 2,211 551 3,859 337 731 1,798 9,487 Guam NA NA NA NA NA NA 172 Hawaii 249 66 542 57 114 234 1,261 Idaho 296 59 517 57 158 303 1,390 Illinois 2,318 717 5,053 385 851 2,470 11,794 Indiana 1,192 221 2,259 233 460 1,159 5,524 Iowa 539 189 1,045 93 316 689 2,872 Kansas 497 264 1,084 74 220 493 2,631 Kentucky 858 248 1,575 144 295 774 3,894 Louisiana 1,039 274 1,834 161 235 826 4,369 Maine 341 102 448 48 114 358 1,411 Maryland 1,254 398 2,447 222 559 1,386 6,266 Massachusetts 1,372 654 2,686 235 564 1,452 6,963 Michigan 1,671 697 3,724 294 715 1,644 8,745 Minnesota 853 498 1,947 156 468 801 4,722 Mississippi 688 94 1,051 96 162 602 2,695 Missouri 1,247 330 2,275 206 629 1,238 5,925 Montana 203 62 330 42 104 215 957 Nebraska 320 195 673 47 187 324 1,745 Nevada 452 269 1,063 71 172 564 2,591 New Hampshire 249 129 494 49 125 365 1,412 New Jersey 1,620 677 3,768 348 944 2,178 9,535 New Mexico 394 58 719 92 229 400 1,891 New York 3,801 2,166 8,076 600 1,741 4,081 20,465 North Carolina 1,912 639 3,536 338 593 1,739 8,757 North Dakota 118 53 250 20 78 122 642 N. Mariana Islands NA NA NA NA NA NA 43 Ohio 2,241 807 4,430 362 911 2,037 10,789 Oklahoma 705 317 1,306 103 295 571 3,297 Oregon 653 246 1,413 129 353 662 3,456 Pennsylvania 2,238 1,149 4,673 478 1,211 2,512 12,260 Puerto Rico 546 98 1,180 81 142 492 2,538 Rhode Island 146 220 421 26 61 173 1,047 South Carolina 988 263 1,696 158 300 909 4,314 South Dakota 107 88 289 22 79 172 757 Tennessee 1,375 365 2,525 223 308 1,107 5,902 Texas 5,290 1,404 9,544 686 2,078 3,939 22,941 Utah 360 183 952 76 244 401 2,217 Vermont 172 36 190 29 58 206 691 Virgin Islands NA NA NA NA NA NA 215 Virginia 1,553 792 3,123 299 816 1,742 8,324 Washington 997 362 2,557 213 568 1,130 5,827 West Virginia 451 92 556 74 155 467 1,794 Wisconsin 994 516 1,849 180 430 980 4,949 Wyoming 124 35 208 24 71 132 594 Total $60,770 $21,690 $121,205 $10,323 $25,799 $59,659 $299,452 NA - Not Applicable. Note: Figures may not add to totals due to rounding. 1 Excludes subscriber line charges. 2 Includes ILECs' USF pass-thru charges. 3 Totals in the first six columns include revenues for locations not estimated. Access Toll Total Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (December 2009). ILECs 1 CLECs Mobile Wireless SLCs 2 15 - 9 16 - 1 16 Subscribership Under contract with the FCC, the U.S. Census Bureau includes questions on telephones as part of its Current Population Survey (CPS). This survey, which monitors demographic trends between the decennial censuses, has several strengths: it is conducted regularly by an expert agency, the sample is large, and the questions are consistent. Thus, changes in the results can be compared over time with a great deal of confidence. More than thirty-four million households have been added to the nation's telephone system since these surveys began in November 1983, reflecting both an increase in the total number of households and a small, but statistically significant, increase in the percentage of households that subscribe to telephone service. Because of smaller sample sizes, state-by-state data, shown in Table 16.3, are subject to greater sampling errors than the national data shown in Table 16.1. These two tables are based on the Census Bureau’s Current Population Survey. Additional information can be found in the Telephone Penetration and Telephone Subscribership reports available on the Internet on the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/stats. Historical estimates for the United States, using the decennial census population counts, are shown in Table 16.2. Prior to 1980, historical estimates of telephone penetration were based on a comparison of the number of residential main stations to the number of households. These estimates became less reliable at that point because of the emergence of an increasing number of households with multiple phone lines. In the 1980 decennial census, the question "Do you have a telephone?" was added to the long-form questionnaire. The 1980 and 1990 percentages in Table 16.2 are based on those responses. In the 2000 decennial census, the question was changed to “Is there telephone service available in this [housing unit] from which you can both make and receive calls?” The question was changed in 2000 to avoid the possible bias from having a phone but no service. With the telephone companies no longer owning the telephone instruments beginning in 1984, it is possible for someone to have a telephone but not have service. The question also allows for the possibility of the substitution of wireless service for wireline service. Beginning in 2001 the Census Bureau introduced the American Community Survey (ACS), which was designed to replace the long form of the decennial census, and Table 16.2 includes data from that survey as well. Table 16.2 also documents the per capita changes in wireline phone lines and wireless subscribers over time. The decennial census percentages in 1990 and 2000 and the ACS percentages for 2001 to 2008 reported in Table 16.2 are higher than the CPS percentage reported in Table 16.1. We believe that these differences are due to factors such as the slight differences in the questions and the contexts in which they are asked, as well as the fact that the CPS uses households as the basis of measurement, while the census and the ACS use occupied housing units instead. Further information from the ACS is shown in Tables 16.4 and 16.5. Table 16.4 shows state data and Table 16.5 shows other characteristics including housing unit tenure, age of the householder, and race and ethnicity of the householder. Households Percentage Households Percentage with with without without Date Households Telephones Telephones Telephones Telephones (millions) (millions) (millions) November 1983 85.8 78.4 91.4% 7.4 8.6% March 1984 86.0 78.9 91.8% 7.1 8.2% July 1984 86.6 79.3 91.6% 7.3 8.4% November 1984 87.4 79.9 91.4% 7.5 8.6% March 1985 87.4 80.2 91.8% 7.2 8.2% July 1985 88.2 81.0 91.8% 7.2 8.2% November 1985 88.8 81.6 91.9% 7.2 8.1% March 1986 89.0 82.1 92.2% 6.9 7.8% July 1986 89.5 82.5 92.2% 7.0 7.8% November 1986 89.9 83.1 92.4% 6.8 7.6% March 1987 90.2 83.4 92.5% 6.8 7.5% July 1987 90.7 83.7 92.3% 7.0 7.7% November 1987 91.3 84.3 92.3% 7.0 7.7% March 1988 91.8 85.3 92.9% 6.5 7.1% July 1988 92.4 85.7 92.8% 6.7 7.2% November 1988 92.6 85.7 92.5% 6.9 7.5% March 1989 93.6 87.0 93.0% 6.6 7.0% July 1989 93.8 87.5 93.3% 6.3 6.7% November 1989 93.9 87.3 93.0% 6.6 7.0% March 1990 94.2 87.9 93.3% 6.3 6.7% July 1990 94.8 88.4 93.3% 6.4 6.7% November 1990 94.7 88.4 93.3% 6.3 6.7% March 1991 95.3 89.2 93.6% 6.1 6.4% July 1991 95.5 89.1 93.3% 6.4 6.7% November 1991 95.7 89.4 93.4% 6.3 6.6% March 1992 96.6 90.7 93.9% 5.9 6.1% July 1992 96.6 90.6 93.8% 6.0 6.2% November 1992 97.0 91.0 93.8% 6.0 6.2% March 1993 97.3 91.6 94.2% 5.7 5.8% July 1993 97.9 92.2 94.2% 5.7 5.8% November 1993 98.8 93.0 94.2% 5.8 5.8% March 1994 98.1 92.1 93.9% 6.0 6.1% July 1994 98.6 92.4 93.7% 6.2 6.3% November 1994 99.8 93.7 93.8% 6.2 6.2% March 1995 99.9 93.8 93.9% 6.1 6.1% July 1995 100.0 94.0 94.0% 6.0 6.0% November 1995 100.4 94.2 93.9% 6.2 6.1% March 1996 100.6 94.4 93.8% 6.2 6.2% July 1996 101.2 95.0 93.9% 6.1 6.1% November 1996 101.3 95.1 93.9% 6.2 6.1% March 1997 102.0 95.8 93.9% 6.2 6.1% July 1997 102.3 96.1 93.9% 6.2 6.1% November 1997 102.8 96.5 93.8% 6.3 6.2% March 1998 103.4 97.4 94.1% 6.1 5.9% July 1998 103.4 97.3 94.1% 6.1 5.9% November 1998 104.1 98.0 94.2% 6.1 5.8% March 1999 104.8 98.5 94.0% 6.3 6.0% July 1999 105.1 99.2 94.4% 5.9 5.6% November 1999 105.4 99.1 94.1% 6.3 5.9% March 2000 105.3 99.6 94.6% 5.7 5.4% July 2000 105.8 99.8 94.4% 5.9 5.6% November 2000 106.5 100.2 94.1% 6.3 5.9% March 2001 107.0 101.1 94.6% 5.8 5.4% July 2001 106.9 101.7 95.1% 5.2 4.9% November 2001 107.7 102.2 94.9% 5.5 5.1% March 2002 108.3 103.4 95.5% 4.8 4.5% July 2002 108.5 103.2 95.1% 5.3 4.9% November 2002 109.0 104.0 95.3% 5.1 4.7% March 2003 112.1 107.1 95.5% 5.0 4.5% July 2003 112.1 106.8 95.2% 5.3 4.8% November 2003 113.1 107.1 94.7% 6.0 5.3% March 2004 112.9 106.4 94.2% 6.5 5.8% July 2004 113.5 106.5 93.8% 7.1 6.2% November 2004 113.8 106.4 93.5% 7.4 6.5% March 2005 114.5 105.8 92.4% 8.7 7.6% July 2005 114.4 107.5 94.0% 6.8 6.0% November 2005 115.2 107.0 92.9% 8.2 7.1% March 2006 115.5 107.2 92.8% 8.4 7.2% July 2006 116.2 109.9 94.6% 6.3 5.4% November 2006 116.4 108.8 93.4% 7.6 6.6% March 2007 117.1 110.8 94.6% 6.4 5.4% July 2007 117.7 111.7 95.0% 5.9 5.0% November 2007 118.2 112.2 94.9% 6.0 5.1% March 2008 117.8 112.2 95.2% 5.6 4.8% July 2008 118.0 112.6 95.4% 5.5 4.6% November 2008 118.6 112.7 95.0% 5.9 5.0% Note: Details may not appear to add to totals due to rounding. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telephone Subscribership in the United States (June 2009). Based on data from the Census Bureau's Current Population Survey. 16 - 3 Table 16.1 Household Telephone Subscribership in the United States Percentage of Telephone Wireless Housing Units Wire Lines per Subscribers per Year with Telephones 100 Population 100 Population 1920 % 1930 1940 1950 1960 1970 1980 1990 2000 2001 2002 2003 2004 2005 2006 2007 2008 Sources: Percentage data for 1920 to 1970 from the U.S. Census Bureau, Historical Statistics of the United States, Colonial Times to 1970, Part 2, page 783. Percentage data for 1980 to 2000 from the decennial censuses. Percentage data for 2001 to 2007 from the Census Bureau's American Community Survey. Telephone line data for 1920 through 1970 are estimated by multiplying the number of telephones by the proportion of main plus equivalent main stations to total telephones for the Bell System. Prior to 1950, the 1950 proportion is used. For 1980 and 1990, ILEC local loops are used; see Table 7.1. For 2000 to 2008, June ILEC and CLEC lines are used from Table 1 of Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition: Status as of June 30, 2008 (July 2009). June wireless subscribers reported by CTIA are from Table 11.1. For 1920 to 2000, the population from the decennial census is used. For 2001 to 2008, Census Bureau population estimates for July 1 are used. 94.8 60.1 65.8 Table 16.2 Historical Telephone Penetration Estimates 54.7 97.6 96.9 96.6 96.2 16 - 4 63.8 61.5 1.8 34.5 41.5 46.8 51.0 57.9 94.8 95.7 67.4 65.7 78.3 90.5 92.9 67.9 27.6 35.0 45.1 12.7 21.7 9.6 12.5 35.0 40.9 36.9 61.8 98.2 50.9 86.4 94.1 57.7 73.6 94.6 54.2 80.8 State Alabama 88.4 % 94.0 % 5.6 % * Alaska 86.5 96.4 9.8 * Arizona 86.9 94.6 7.6 * Arkansas 86.6 92.9 6.3 * California 92.5 96.5 4.0 * Colorado 93.2 98.0 4.8 * Connecticut 95.5 97.1 1.6 Delaware 94.3 94.7 0.5 District of Columbia 94.9 92.0 -2.9 Florida 88.7 93.0 4.3 * Georgia 86.2 92.9 6.7 * Hawaii 93.5 96.5 2.9 Idaho 90.7 96.0 5.3 * Illinois 94.2 94.1 -0.1 Indiana 91.6 92.1 0.5 Iowa 96.2 97.4 1.2 Kansas 94.3 96.4 2.0 Kentucky 88.1 94.1 5.9 * Louisiana 89.7 95.7 6.0 * Maine 93.4 97.8 4.4 * Maryland 95.7 94.7 -1.0 Massachusetts 95.9 96.4 0.6 Michigan 92.8 96.0 3.1 * Minnesota 95.8 98.2 2.3 Mississippi 82.4 92.7 10.3 * Missouri 91.5 96.8 5.3 * Montana 91.0 94.5 3.5 * Nebraska 95.7 94.7 -1.0 Nevada 90.4 94.0 3.7 * New Hampshire 94.3 97.7 3.3 * New Jersey 94.8 94.8 0.0 New Mexico 82.0 92.6 10.6 * New York 91.8 94.4 2.6 * North Carolina 88.3 93.5 5.2 * North Dakota 94.6 98.3 3.7 * Ohio 92.4 96.9 4.5 * Oklahoma 90.3 95.3 5.0 * Oregon 90.6 97.6 7.0 * Pennsylvania 94.9 97.9 3.0 * Rhode Island 93.6 96.4 2.8 South Carolina 83.7 90.8 7.1 * South Dakota 93.2 96.8 3.6 * Tennessee 88.5 93.0 4.5 * Texas 88.4 94.3 5.9 * Utah 92.5 96.9 4.3 * Vermont 92.3 97.0 4.8 * Virginia 93.1 95.7 2.6 * Washington 93.0 98.1 5.0 * West Virginia 87.7 94.5 6.8 * Wisconsin 95.2 97.2 2.0 Wyoming 89.9 95.8 5.9 * United States 91.6 % 95.2 % 3.6 % * Note: Differences may not appear to equal changes due to rounding. * Increase is statistically significant at the 95% confidence level. # Decrease is statistically significant at the 95% confidence level. Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telephone Subscribership in the United States (June 2009). Based on data from the Census Bureau's Current Population Survey. 16 - 5 20081984 Table 16.3 Telephone Penetration by State (Annual Average Percentage of Households with Telephone Service) Change State Alabama 95.2 % 95.3 % 95.1 % 94.5 % 93.3 % 92.6 % 93.9 % 98.0 % Alaska 96.6 97.9 96.7 97.6 96.6 96.3 97.7 98.1 Arizona 95.8 95.6 95.0 95.2 93.1 93.6 93.7 97.0 Arkansas 94.7 94.3 92.5 91.0 90.9 90.3 91.3 97.6 California 98.0 98.3 98.3 97.9 97.0 96.6 96.7 98.7 Colorado 98.5 97.4 97.0 96.5 95.1 94.6 94.3 98.2 Connecticut 98.8 98.7 98.2 98.3 97.3 96.5 96.8 99.1 Delaware 98.2 98.2 97.7 97.9 97.5 97.0 95.8 98.7 District of Columbia 97.1 97.5 96.9 96.1 95.2 94.5 92.6 97.8 Florida 97.0 96.6 96.3 95.5 94.0 92.4 93.4 97.9 Georgia 95.6 95.5 95.0 94.1 92.9 90.9 92.7 97.1 Hawaii 97.9 97.0 96.3 95.2 95.6 95.7 94.9 98.1 Idaho 96.2 97.4 96.3 95.7 96.2 94.2 94.2 99.0 Illinois 95.9 95.7 95.4 94.7 94.4 93.7 94.8 98.6 Indiana 95.4 94.7 93.7 93.4 94.4 93.4 94.2 98.4 Iowa 97.6 97.4 96.6 95.6 96.0 94.9 95.3 98.9 Kansas 96.9 96.3 95.8 95.7 93.6 92.7 93.8 98.9 Kentucky 96.0 94.8 95.0 93.3 92.0 91.9 93.1 97.8 Louisiana 95.3 95.4 94.7 92.9 92.9 91.6 92.5 97.3 Maine 98.8 98.2 98.4 97.7 96.6 95.7 95.9 98.8 Maryland 97.7 97.5 97.5 97.0 95.8 95.3 95.6 99.0 Massachusetts 98.5 98.6 98.5 97.9 96.2 95.5 96.1 98.8 Michigan 96.4 95.5 95.1 94.4 93.4 92.1 93.0 98.6 Minnesota 98.7 98.2 98.5 97.4 96.7 95.8 95.4 99.2 Mississippi 93.3 93.4 92.8 91.4 89.6 88.4 91.2 96.9 Missouri 96.6 96.7 96.3 96.1 95.4 93.6 94.3 98.5 Montana 97.1 96.9 96.5 95.1 95.0 93.6 93.7 97.5 Nebraska 97.2 96.4 95.6 94.8 95.5 94.4 94.5 99.0 Nevada 95.2 95.3 94.4 95.2 95.9 94.6 94.3 97.6 New Hampshire 98.7 98.5 98.1 98.2 96.9 97.0 97.5 98.6 New Jersey 98.0 97.7 97.6 96.9 95.8 95.3 95.1 97.9 New Mexico 92.9 90.7 93.0 94.4 92.5 91.7 92.4 95.7 New York 97.2 96.9 96.8 96.5 95.5 94.8 95.0 97.9 North Carolina 96.5 95.6 94.1 94.5 93.8 93.2 93.4 98.1 North Dakota 97.8 97.3 96.8 95.9 94.7 94.7 94.8 99.2 Ohio 97.7 96.7 97.1 96.2 95.4 94.2 94.6 98.1 Oklahoma 95.7 93.9 94.7 93.7 93.1 92.9 93.2 98.0 Oregon 98.0 97.1 96.9 96.0 95.3 95.2 94.9 98.7 Pennsylvania 97.8 98.0 97.5 97.2 96.5 95.9 95.9 98.8 Rhode Island 98.3 97.8 97.7 96.8 96.4 95.6 96.0 97.8 South Carolina 96.0 94.7 94.7 93.6 92.3 92.0 93.2 97.2 South Dakota 97.6 96.8 96.1 95.8 95.3 96.0 95.3 98.6 Tennessee 96.8 96.3 95.1 95.2 92.9 92.8 93.7 98.1 Texas 95.9 95.4 94.3 93.7 92.9 92.6 93.5 98.0 Utah 97.4 97.7 97.5 97.4 96.5 96.2 96.0 99.3 Vermont 98.1 98.1 97.7 97.6 97.9 97.2 96.9 98.8 Virginia 97.3 97.0 97.0 95.8 95.6 95.2 95.2 98.3 Washington 97.5 97.8 97.0 96.5 96.5 96.2 96.3 99.0 West Virginia 95.1 95.9 94.8 94.0 94.5 93.8 93.6 96.9 Wisconsin 97.9 97.5 96.3 95.5 96.4 95.6 96.1 99.0 Wyoming 95.1 94.9 94.5 94.4 94.9 93.4 95.0 98.7 United States 96.9 % 96.6 % 96.2 % 95.7 % 94.8 % 94.1 % 94.6 % 98.2 % Puerto Rico NA NA NA NA 73.8 % 73.6 % 80.6 % 91.9 % 2006 2007 Source: Census Bureau, American Community Survey and Puerto Rico Community Survey. (Percentage of Occupied Housing Units with Telephone Service) Telephone Penetration by State Table 16.4 20022001 20082003 2004 2005 16 - 6 Characteristic Housing Unit Status Owner Occupied 98.8 % 98.7 % 98.5 % 98.3 % 97.7 % 97.1 % 97.1 % 99.3 % Renter Occupied 93.4 92.6 91.6 90.4 89.0 87.9 89.5 96.2 Age of Householder 15 - 34 94.5 93.6 92.0 90.2 88.0 86.3 87.8 93.4 35 - 64 97.3 97.2 97.1 96.7 96.1 95.4 95.6 98.4 65 + 98.7 98.6 98.7 98.7 98.6 98.5 98.5 99.2 Race of Householder White 97.6 97.3 96.9 96.3 95.6 NA NA NA Black or African American 93.6 93.0 93.0 92.3 91.9 NA NA NA American Indian or Alaska Native 89.1 89.5 87.8 89.6 86.8 NA NA NA Asian 98.4 98.0 97.5 96.9 95.5 NA NA NA Native Hawaiian or Pacific Islander 95.9 95.5 91.4 92.2 93.1 NA NA NA Other 94.6 95.1 93.9 93.3 91.0 NA NA NA Two or More Races 95.1 92.7 95.6 92.8 92.7 NA NA NA Ethnicity of Householder Hispanic or Latino 94.2 93.9 93.4 92.6 91.6 NA NA NA United States 96.9 % 96.6 % 96.2 % 95.7 % 94.8 % 94.1 % 94.6 % 98.2 % NA - Not available Table 16.5 Telephone Penetration by Selected Characteristics (Percentage of Occupied Housing Units with Telephone Service) 200820022001 2003 2004 2005 2006 2007 Source: Census Bureau, American Community Survey. 16 - 7 17 - 1 17 Technology and Infrastructure Price-cap regulated carriers, including the Bell operating companies (BOCs), file data on technology as part of their Automated Reporting Management Information System (ARMIS) reports. The data contained in Tables 17.1 and 17.3 are from the BOCs’ ARMIS 43-07 reports 1 , and the data contained in Table 17.2 are from the ARMIS 43-05 report. The individual carrier's data can be obtained from the ARMIS web page at www.fcc.gov/wcb/eafs. Selected holding company statistics from the ARMIS 43-07, through 2007, can be found in Section 10 of our Monitoring Report on the web page www.fcc.gov/wcb/iatd/monitor. Also, information about broadband deployment is contained in Chapter 2, Advanced Telecommunications. 1. Central Office Technology Table 17.1 shows the number of BOC switches and tracks the deployment of certain key switching and signaling technologies, described below, in BOC central offices. (Information about broadband deployment is contained in Chapter 2, Advanced Telecommunications.) Telephone companies replaced most of their older electromechanical switches with stored program control switches (SPCSs) beginning in the early 1980s. Stored program control makes it possible to change the operational and service features of a switch by changing the program stored in switch memory and executed by switch processors. SPCSs can use either analog or digital switching technology. As shown in Table 17.1 virtually all switches in BOC networks now use digital stored program control technology, and more than 98 percent of BOC access lines terminate on digital switches. In the late 1980s, telephone companies began to convert switching offices from in-band signaling to Signaling System 7 (SS7). SS7 permits calls to be set up more efficiently, and also allows certain new services to be deployed. It may be implemented on both analog and digital stored program control switches. Data in Table 17.1 shows that SS7 has now been deployed almost everywhere in BOC networks. Telephone companies began introducing integrated services digital network (ISDN) capabilities on their digital switches shortly after introducing Signaling System 7. One of the attractions of ISDN is that ordinary local telephone lines (copper loops) can be used to transport data between computers at speeds higher than possible using a modem. In recent years, however, ISDN has taken a back seat to central office broadband technologies, such as Digital Subscriber Line (DSL) and Fiber to the Home (FTTH), when used for this purpose. Table 17.2 provides some additional categorization of switches. It shows line 1 In 2008, the Commission granted significant forbearance from carriers’ obligations to file ARMIS reports. (See 23 FCC Rcd 13647) As such, 2007 was the last year the Commission received data contained in Tables 17.1 and 17.3. 17 - 2 counts of switches from 1996 to 2007 for the following categories: fewer than 1,000 lines; 1,000 - 4,999 lines; 5,000 - 9,999 lines; 10,000 - 19,999 lines; and 20,000 lines or more. The table also breaks out switches based on their being in a Metropolitan Statistical Area (MSA) or not (non-MSA). Note that while Table 17.1 provides switch counts for BOCs only, Table 17.2 provides this information for all price-cap carriers. 2. Transmission Technology Each telephone company has a network of transmission paths interconnecting switching offices and also connecting customers to their serving local central offices. Today, wireline transmission is typically provided on fiber or copper cable, with other technologies being used only infrequently. As indicated in Table 17.3, from 1991 to 2007, the proportion of fiber cable sheath kilometers 2 in Bell Operating Company networks increased from 5% to over 15% of total cable sheath kilometers. The number of working channels provides a rough approximation of the number of transmission paths that are in service between customers and the telephone company offices serving those customers. This includes both switched access lines and the local portion of special access and private lines. Table 17.3 shows that the number of working channels provided partly or totally on fiber in BOC networks increased from about 4% of total working channels in 1991 to over 20% in 2007. 3. Equal Access Equal access refers to a class of service whereby all long distance service providers receive equivalent connections to the local exchange carrier's network. Where a local exchange carrier serves customers using equal-access switches, those customers can utilize their preferred long distance provider by dialing "1" plus the ten-digit telephone number they want to reach. The conversion of lines by local exchange carriers to equal access started in 1984; by the end of 1996, over 99% of the nation's lines were served by equal access switches. A table tracing this process through time can be found in the equal-access section of the Trends report released in July 1998. Despite the fact that more than 99% of the nation's customers receive equal access, there still are some central offices where equal access is not yet available. Table 17.4 shows the number of central office wire centers in each state that had been converted to equal access as of August 1, 2009. The table is derived from NECA’s Tariff 4 database, which is updated by local exchange carriers. In some cases, there is a lag between an office converting to equal access and that change being reflected in the database. Thus, in some cases, the data continue to show some offices not yet converted 2 Cable sheath kilometers is a measure of the length of cable used to provide telecommunications services. A sheath contains individual copper or fiber pairs used to transmit voice or data. Fiber cable sheaths typically contain 40 to 50 fiber strands while copper cable sheaths contain as many as several hundred copper pairs. 17 - 3 to equal access even in states where equal access is reported to be available to all customers. 4. Rural Network Capabilities The National Exchange Carrier Association periodically conducts a survey of over 1,000 small, mostly rural telephone companies. 3 The most recent survey focuses on the small companies’ efforts to bring advanced services to their customers. Table 17.5 shows selected network capabilities by state of the 1,101 companies that responded to the 2009 survey and a summary of the results of the 2008 survey. In addition to the number of switches and access lines, the table shows the percentage of companies providing equal access, SS7 and DSL; percentage providing Ethernet, ATM and SONET-based services to customers; percentage having those technologies in their networks; the number of ADSL access lines; and the percentage that provide other broadband services. 5. Telecommunications Patents One measure of developing technology is the number of U.S. patents. The U.S. Patent and Trademark Office maintains a file of over six million distinct U.S. patents granted. These patents are categorized by technology. Chart 17.1 shows the number of patents granted for telecommunications from 1992 to 2007. The information presented profiles U.S. patent activity in the general field of telecommunications. It includes all U.S. patent documents, except reissued patents, granted between January 1992 and December 31, 2007 in the following classes: Class 370, Multiplex Communications Class 375, Pulse or Digital Communications Class 379, Telephonic Communications Class 455, Telecommunications 6. Capital Expenditures The FCC does not systematically collect information on capital expenditures from most carriers. Table 17.6 provides annual estimates of expenditures for structures and equipment for telecommunications carriers, taken from a U.S. Census Bureau survey. 4 Chart 17.2 combines this expenditure data with FCC collected revenue data. It shows that for each dollar of revenue collected from end users in 2007, wireless carriers invested 19 cents in structures and equipment whereas wireline, resellers, satellite & other carriers invested 28 cents. Overall, capital expenditures were 25 cents for each dollar of end-user revenues. 3 National Exchange Carrier Association, Trends 2009, A report on rural telecom technology, p.18 4 U.S. Census Bureau, Annual Capital Expenditures, (Issued January 22, 2009) Table 4a; http://www.census.gov/csd/ace/xls/2007/Full%20Report.htm (last visited January 12, 2010) Year End Total Signaling System 7 ISDN Digital Stored Switches Switches Switches Program Controlled Switches 1990 9,872 2,428 24.59 % 600 6.08 % 5,816 58.91 % 1991 9,951 3,670 36.88 920 9.25 6,636 66.69 1992 10,069 5,392 53.55 1,219 12.11 7,530 74.78 1993 10,089 6,688 66.29 1,874 18.57 8,239 81.66 1994 10,023 8,334 83.15 2,400 23.94 8,795 87.75 1995 10,051 8,977 89.31 2,868 28.53 9,015 89.69 1996 9,966 9,286 93.18 3,329 33.40 9,247 92.79 1997 9,965 9,688 97.22 3,902 39.16 9,417 94.50 1998 9,788 9,643 98.52 4,146 42.36 9,357 95.60 1999 1 9,968 9,844 98.76 4,424 44.38 9,648 96.79 2000 2 15,092 14,822 98.31 5,414 35.87 14,889 98.65 2001 15,109 14,954 99.07 5,465 36.17 14,970 99.08 2002 14,353 3 14,258 99.35 5,664 39.46 14,245 3 99.25 2003 14,376 14,342 99.59 5,651 39.46 14,292 99.42 2004 14,399 14,366 99.77 5,787 40.19 14,326 99.49 2005 12,321 12,292 99.76 5,730 46.21 12,256 99.47 2006 12,315 12,286 99.76 5,914 48.02 12,251 99.48 2007 5 12,347 12,323 99.81 5,930 48.03 12,283 99.48 Access Lines Served by Type of Office (Thousands) Year End All Signaling System 7 ISDN Digital Stored Switches Switches Switches Program Controlled Switches 1990 105,641 40,026 37.89 % 13,970 13.22 % 45,452 43.02 % 1991 107,388 57,321 53.38 20,567 19.15 52,061 48.48 1992 109,997 76,480 69.53 28,375 25.80 60,324 54.84 1993 113,368 92,493 81.59 39,875 35.17 71,192 62.80 1994 117,345 109,465 93.28 56,546 48.19 84,040 71.62 1995 122,266 116,568 95.34 71,274 58.29 93,172 76.20 1996 125,844 122,343 97.22 85,434 67.89 101,283 80.48 1997 131,722 130,778 99.28 95,956 72.85 110,503 83.89 1998 136,426 136,246 99.87 106,834 78.31 119,738 87.77 1999 1 141,763 141,685 99.94 113,999 80.42 129,838 91.59 2000 2 160,557 160,303 99.84 132,844 82.74 153,240 95.44 2001 155,543 155,363 99.88 129,075 82.98 150,732 96.91 2002 148,292 344 124,451 83.92 145,009 3 97.79 2003 142,698 44 119,422 83.68 140,262 98.30 2004 136,057 115,561 84.94 134,076 98.54 2005 127,026 44 107,535 84.36 125,460 98.77 2006 118,316 100,084 84.56 116,817 98.73 2007 5 109,448 44 92,284 84.32 108,058 98.73 1 Southern New England Telephone Company merged with SBC Communications October 26, 1998. Their data are included in this table starting with 1999. 2 Large increase in 2000 is due to the merger of Bell Atlantic and GTE. 3 The decrease in the number of switches and their associated lines from 2001 to 2002 is partially due to the sale of a number of study areas by Verizon. 5 Starting in 2008, the Commission eliminated the requirement for Bell Operating Companies to file ARMIS 43-07 data. See 23 FCC Rcd 13647. Source: ARMIS 43-07 Table 17.1 Central Office Switches and Access Lines by Technology (Bell Operating Companies) 4 Starting with 2002 data, the Commission eliminated the requirement that the Bell operating companies file electromechanical switch data and data for lines served by SS7 switches. See 2000 Biennial Regulatory Review – Comprehensive Review of the Accounting Requirements and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers: Phase 2, et al., CC Docket Nos. 00-199, 99-301, 97-212, 80-286, Report and Order in CC Docket Nos. 00-199, 97- 212, and 80-286, Further Notice of Proposed Rulemaking in CC Docket Nos. 00-199, 99-301, and 80-286, 16 FCC Rcd 19911, 19770-72, paras. 161-165 17 - 5 Table 17.2 1 Switches by Metropolitan Statistical Area (MSA) and Non-MSA Year Total Switches Total Switches Total Switches Switches with Switches with Switches with Switches with Switches with MSA Non-MSA MSA and Under 1,000 1,000 - 4,999 5,000 - 9,999 10,000 - 19,999 20,000 or More Non-MSA Lines Lines Lines Lines Lines 1996 8,711 7,426 16,137 4,594 5,758 1,770 1,431 2,584 1997 9,138 7,199 16,337 4,476 5,843 1,786 1,518 2,714 1998 9,011 7,492 16,503 4,374 6,027 1,821 1,527 2,754 1999 9,165 7,452 16,617 4,319 5,898 1,915 1,613 2,873 2000 9,058 6,340 15,398 3,472 5,538 1,869 1,632 2,888 2001 8,996 6,377 15,373 3,402 5,481 1,873 1,678 2,938 2002 9,098 6,336 15,434 3,638 5,627 1,852 1,627 2,772 2003 9,170 6,541 15,711 3,747 5,725 1,887 1,685 2,667 2004 9,289 6,737 16,026 4,160 5,833 1,868 1,681 2,485 2005 2 9,064 5,602 14,666 3,380 5,310 1,886 1,719 2,371 2006 9,079 5,578 14,657 3,502 5,343 1,914 1,748 2,150 2007 9,004 5,735 14,739 3,669 5,441 1,900 1,782 1,947 2008 9,004 5,307 14,311 3,857 5,178 1,860 1,775 1,641 2009 8,993 5,306 14,299 4,062 5,205 1,838 1,781 1,413 1 The number of switches in Table 17.2 differs from Tables 17.1. Table 17.1 is derived from the ARMIS 43-07, which was filed by the regional Bell operating companies through 2007. Table 17.2 is derived from the ARMIS 43-05, which is filed by incumbent local exchange carriers subject to price-cap regulation. 2 The decline in switches between 2004 and 2005 is primarily due to Verizon GTE reporting substantially fewer switches in 2005 than in 2004. Verizon attributes its 2005 reduction in local switches to Verizon GTE's change in data sources from financial to operations databases, which the company expects will provide more timely information. And Switches by Line Counts 17 - 6 Table 17.3 Local Transmission Technology (Bell Operating Companies) Cable Sheath Kilometers Year End Total Copper Fiber Other 1991 4,163,640 3,955,622 95.0 % 196,791 4.7 % 11,228 0.3 % 1992 4,214,804 3,965,406 94.1 238,406 5.7 10,994 0.3 1993 4,264,569 3,976,100 93.2 280,017 6.6 8,450 0.2 1994 4,256,253 3,934,243 92.4 314,660 7.4 7,350 0.2 1995 4,319,068 3,960,343 91.7 351,907 8.1 6,819 0.2 1996 4,339,067 3,947,238 91.0 386,011 8.9 5,819 0.1 1997 4,396,205 3,974,204 90.4 416,105 9.5 5,896 0.1 1998 4,473,351 4,009,772 89.6 449,554 10.0 14,026 0.3 1999 1 4,608,808 4,103,657 89.0 491,478 10.7 13,672 0.3 2000 2 5,761,869 5,132,364 89.1 613,646 10.7 15,860 0.3 2001 5,848,516 5,166,537 88.3 665,805 11.4 16,174 0.3 2002 5,791,105 5,086,669 87.8 692,031 11.9 12,406 0.2 2003 5,851,790 5,118,314 87.5 720,877 12.3 12,600 0.2 2004 5,940,199 5,166,481 87.0 763,132 12.8 12,587 0.2 2005 5,987,524 5,166,382 86.3 810,556 13.5 10,585 0.2 2006 6,079,810 5,184,980 85.3 894,319 14.7 10,511 0.2 2007 6,201,565 5,218,430 84.1 972,713 15.7 10,422 0.2 Working Telecommunications Channels 1 (Thousands) Year End Total Copper Fiber Other 1991 118,654 114,047 96.1 % 4,605 3.9 % 2.3 0.0 % 1992 120,848 114,609 94.8 6,238 5.2 1.0 0.0 1993 124,191 115,496 93.0 8,694 7.0 1.4 0.0 1994 130,192 118,437 91.0 11,755 9.0 0.3 0.0 1995 136,231 122,975 90.3 13,255 9.7 0.3 0.0 1996 142,824 125,595 87.9 17,228 12.1 1.0 0.0 1997 149,429 128,436 86.0 20,992 14.0 0.3 0.0 1998 172,916 134,629 77.9 38,286 22.1 0.3 0.0 1999 2 186,387 138,691 74.4 47,696 25.6 0.0 0.0 2000 3 218,928 157,840 72.1 61,086 27.9 1.9 0.0 2001 228,705 152,441 66.7 76,263 33.3 1.5 0.0 2002 4 169,157 137,228 81.1 31,927 18.9 1.4 0.0 2003 155,978 127,261 81.6 28,716 18.4 0.5 0.0 2004 148,278 117,673 79.4 30,605 20.6 0.1 0.0 2005 137,254 100,017 72.9 27,237 19.8 0.1 0.0 2006 125,767 100,254 79.7 25,513 20.3 0.1 0.0 2007 5 116,333 92,432 79.5 23,902 20.5 0.1 0.0 Source: Industry Analysis and Technology Division, Wireline Competition Division, Statistics of Communications Common Carriers, with updates and revisions contained in the ARMIS database (ARMIS 43-07 Report) for the most recent five years through 2007. Totals may be understated because certain data pertaining to the carriers included in this table are not available. 1 Working Channels are reported in 4 kHz bandwidth (single-voice channel) equivalents. 2 Southern New England Telephone Company merged with SBC Communications October 26, 1998. Their data are included in this table starting with 1999. 3 Large increase in 2000 is due to the merger of Bell Atlantic and GTE. 4 The large decrease from 2001 to 2002 is due in part to a number of Verizon companies refiling in order to remove interexchange carrier, point-of-presence, and co-location circuit counts to comply with ARMIS definitions. 5 In 2008, the Commission granted forebearance relief from filing this data. 17 - 7 Table 17.4 Central Offices Converted to Equal Access 1/ (As of February 1, 2010) Bell Company Other ILEC CLEC All Central Offices Central Offices Central Offices Central Offices Equal Non- % Equal Equal Non- % Equal Equal Non- % Equal Total % Equal Access Equal Access Access Equal Access Access Equal Access Offices Access Access Access Access Alabama 146 0 100.0 % 210 0 100.0 % 45 0 100.0 % 401 100.0 % Alaska 0 0 NA 114 141 44.7 0 0 NA 255 44.7 American Samoa 0 0 NA 4 0 100.0 0 0 NA 4 100.0 Arizona 145 0 100.0 100 2 98.0 37 0 100.0 284 99.3 Arkansas 138 0 100.0 276 2 99.3 33 2 94.3 451 99.1 California 908 2 99.8 84 1 98.8 178 2 98.9 1,175 99.6 Colorado 165 1 99.4 99 1 99.0 34 0 100.0 300 99.3 Connecticut 128 0 100.0 0 0 NA 17 0 100.0 145 100.0 Delaware 33 0 100.0 0 0 NA 5 0 100.0 38 100.0 District of Columbia 18 0 100.0 0 0 NA 23 0 100.0 41 100.0 Florida 292 0 100.0 177 0 100.0 219 0 100.0 688 100.0 Georgia 182 0 100.0 233 1 99.6 84 0 100.0 500 99.8 Guam 0 0 NA 3 0 100.0 0 0 NA 3 100.0 Hawaii 0 0 NA 93 0 100.0 8 0 100.0 101 100.0 Idaho 97 0 100.0 77 0 100.0 13 0 100.0 187 100.0 Illinois 696 4 99.4 325 7 97.9 73 1 98.6 1,106 98.9 Indiana 384 3 99.2 179 0 100.0 55 1 98.2 622 99.4 Iowa 135 0 100.0 650 0 100.0 58 0 100.0 843 100.0 Kansas 171 2 98.8 215 4 98.2 32 1 97.0 425 98.4 Kentucky 178 0 100.0 405 0 100.0 31 0 100.0 614 100.0 Louisiana 223 0 100.0 89 0 100.0 40 0 100.0 352 100.0 Maine 143 1 99.3 104 8 92.9 3 0 100.0 259 96.5 Maryland 214 0 100.0 1 0 100.0 24 0 100.0 239 100.0 Massachusetts 274 1 99.6 3 0 100.0 33 0 100.0 311 99.7 Michigan 542 7 98.7 165 0 100.0 73 0 100.0 787 99.1 Minnesota 155 0 100.0 564 0 100.0 114 0 100.0 833 100.0 Mississippi 205 0 100.0 70 0 100.0 22 0 100.0 297 100.0 Missouri 215 0 100.0 445 20 95.7 65 0 100.0 745 97.3 Montana 75 0 100.0 195 1 99.5 22 0 100.0 293 99.7 Nebraska 69 0 100.0 387 0 100.0 23 0 100.0 479 100.0 Nevada 55 0 100.0 61 3 95.3 15 0 100.0 134 97.8 New Hampshire 125 1 99.2 32 0 100.0 7 0 100.0 165 99.4 New Jersey 209 0 100.0 28 0 100.0 49 0 100.0 286 100.0 New Mexico 65 0 100.0 105 1 99.1 12 0 100.0 183 99.5 New York 526 2 99.6 306 2 99.4 107 0 100.0 943 99.6 North Carolina 184 0 100.0 565 1 99.8 108 0 100.0 858 99.9 North Dakota 27 0 100.0 274 19 93.5 16 0 100.0 336 94.3 Ohio 489 19 96.3 341 4 98.8 104 1 99.0 958 97.5 Oklahoma 207 1 99.5 303 1 99.7 28 0 100.0 540 99.6 Oregon 135 0 100.0 153 0 100.0 31 0 100.0 319 100.0 Pennsylvania 506 0 100.0 429 29 93.7 82 0 100.0 1,046 97.2 Puerto Rico 0 0 NA 86 0 100.0 3 0 100.0 89 100.0 Rhode Island 30 0 100.0 0 0 NA 7 0 100.0 37 100.0 South Carolina 158 0 100.0 263 0 100.0 53 0 100.0 474 100.0 South Dakota 42 0 100.0 201 6 97.1 10 0 100.0 259 97.7 Tennessee 196 0 100.0 602 0 100.0 57 1 98.3 856 99.9 Texas 797 2 99.7 695 1 99.9 225 5 97.8 1,725 99.5 Utah 63 0 100.0 93 4 95.9 12 0 100.0 172 97.7 Vermont 90 2 97.8 38 0 100.0 4 0 100.0 134 98.5 Virgin Islands 0 0 NA 5 0 100.0 0 0 NA 5 100.0 Virginia 328 1 99.7 270 7 97.5 67 0 100.0 673 98.8 Washington 219 0 100.0 141 2 98.6 41 0 100.0 403 99.5 West Virginia 145 0 100.0 86 6 93.5 7 0 100.0 244 97.5 Wisconsin 225 4 98.3 375 0 100.0 58 0 100.0 662 99.4 Wyoming 26 0 100.0 36 13 73.5 3 0 100.0 78 83.3 Total United States 10,778 53 99.5 % 10,755 287 97.4 % 2,470 14 99.4 % 24,357 98.5 % NA - Not applicable. 1/ Some companies do not report information on their remote switches in Tariff No. 4. As a result, central office counts may be lower than reported in other sources. Source: NECA FCC Tariff No. 4 database. 17 - 8 St at e or Juris d ict i on Com p anies S w i t ch es Access Li n e s Pr ovide E qual Access Pr ovide SS7 P r ovide DSL S ervi c e DS L Acces s Li n e s P r ovide AT M S ervi c e Dep l oy ATM in Net w ork P r ovi d e Et h ern et S ervi c e 1 Dep l oy Et h ern et in Net w ork Pr ovide SON E T S ervi c e 1 D e ploy SON E T in Net w ork P r ovide Ot her B r oadband 2 Alabama 21 80 102,381 100 % 100 % 100 % 26,319 19 % 29 % 29 % 62 % 0 % 62 % 100 % Alaska 19 89 111,310 79 84 74 36,836 21 37 37 68 21 32 68 American Samoa 1 4 10,297 100 100 100 ******** Arizona 12 44 37,291 100 100 100 8,621 25 75 33 75 17 92 75 Arkansas 19 115 73,661 100 100 95 25,568 11 58 21 63 16 68 63 California 13 19 67,026 100 100 100 27,011 31 85 85 85 8 85 62 Colorado 24 37 34,453 98 96 88 9,545 13 58 17 63 8 42 75 Florida 6 12 65,667 100 100 100 18,351 17 83 67 83 17 100 100 Georgia 26 60 179,277 97 100 100 55,199 8 65 27 65 0 81 100 Guam 1 3 52,884 100 100 100 ******** Hawaii 1 9 1,889 100 100 100 Idaho 13 50 32,103 100 100 100 12,729 31 92 38 100 15 92 85 Illinois 38 119 56,681 97 92 97 18,941 13 39 6 55 0 42 63 Indiana 33 74 101,206 100 100 100 39,733 27 70 33 76 0 70 94 Iowa 144 314 187,534 100 100 97 69,170 1 37 9 72 1 56 64 Kansas 34 114 113,342 100 100 97 48,547 18 53 38 76 12 79 97 Kentucky 12 279 119,366 100 100 100 37,702 42 75 50 83 0 92 100 Louisiana 9 62 35,589 100 100 89 12,475 0 56 56 44 0 67 89 Maine 19 116 114,329 100 100 100 33,924 26 84 42 63 26 89 47 Maryland 1 1 6,350 100 100 100 ******** Massachusetts 2 2 3,473 100 100 100 774 0 50 50 50 0 0 50 Michigan 31 99 77,893 100 100 97 24,785 16 58 39 81 3 58 77 Minnesota 80 298 287,831 100 98 94 83,341 18 60 14 74 9 61 61 Mississippi 16 48 47,962 100 100 100 14,302 44 63 19 81 0 56 81 Missouri 36 155 106,615 100 100 100 38,956 8 58 31 67 0 69 75 Montana 14 187 90,171 100 100 100 31,883 21 79 7 86 29 93 86 Nebraska 35 140 62,963 100 100 97 24,997 0 57 9 63 9 69 86 Nevada 8 29 30,358 100 100 100 12,806 38 88 13 100 25 88 50 New Hampshire 9 32 48,369 100 100 100 13,759 44 78 67 67 0 78 89 New Jersey 1 2 6,738 100 100 100 ******** New Mexico 12 74 36,469 100 100 100 9,976 8 58 25 67 8 75 92 New York 31 85 137,731 100 97 100 41,439 19 71 29 84 0 81 94 North Carolina 14 140 181,470 100 100 100 38,790 57 100 64 100 21 100 93 North Dakota 20 260 135,253 100 100 100 52,685 40 90 50 85 25 95 100 Ohio 33 25 62,668 100 88 94 15,066 9 64 18 73 0 64 64 Oklahoma 34 264 158,232 100 100 94 63,432 24 59 24 74 6 79 82 Oregon 27 58 69,290 100 100 93 27,905 11 70 33 81 0 63 85 Pennsylvania 23 729 471,377 100 100 96 91,863 17 70 17 83 17 83 78 South Carolina 12 186 93,847 100 100 100 31,466 50 92 33 75 17 75 75 South Dakota 28 180 115,836 100 93 93 40,745 11 64 11 71 18 93 79 Tennessee 16 531 212,478 100 100 100 72,138 50 81 50 94 0 75 88 Texas 43 352 218,809 100 100 100 69,857 21 65 21 65 12 77 86 Utah 11 70 66,550 100 100 100 27,074 9 64 55 91 9 55 91 Vermont 9 39 59,697 100 100 100 25,152 44 89 44 44 33 67 100 Virginia 15 181 75,125 100 100 93 26,504 20 67 33 80 7 60 93 Washington 20 54 72,621 100 100 90 26,619 25 55 35 70 5 40 70 West Virginia 6 6 16,048 100 100 100 5,203 0 0 17 67 33 67 83 Wisconsin 64 204 290,103 100 100 100 64,021 23 73 39 89 3 78 88 Wyoming 5 23 22,410 100 100 100 8,904 40 60 20 80 40 80 80 Totals 1,101 6,054 4,761,023 99 % 99 % 97 % 1,477,876 18 % 61 % 27 % 74 % 7 % 69 % 78 % 2008 Totals 1,119 6,324 5,519,917 99 % 98 % 97 % 1,317,208 27 % 75 % 17 % 60 % 6 % 71 % 74 % 1 TS pooling companies offering ATM, Ethernet and SONET services to their customers and are listed in NECA’s Tariff F.C.C. Wire Center Tariff # 4. 2 Includes fiber such as FTTP, FTTH, FTTC or Hybrid-Fiber-Coax; wireless broadband using fixed, licensed unlicensed, WiFi or WiMAX; cable or satellite. * Individual data withheld to maintain company confidentiality. All data included in totals. Source: National Exchange Carrier Association "Trends 2009, A report on rural telecom technology". Table 17.5 Broadband Capabilities of NECA's 2009 Rural Incumbent LEC Survey Results 17 - 9 Note: 1996 total reflects one-time change in law affecting patents. Source: U.S. Patent and Trademark Office, Patent Counts by Class by Year, January 1977 - December 2009, 'Telecommunications Classes 370, 375, 379 and 455 (April 2010), available at http://www.uspto.gov/web/offices/ac/ido/oeip/taf/cbcby.htm#PartA1-2. Chart 17.1 Telecommunications Patents (In Thousands) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 Pat e nt s ( 000) Patents 2.7 3.1 4.0 4.7 5.9 5.5 8.4 9.2 9.6 9.6 10.2 11.1 12.7 11.5 18.0 15.3 16.7 17.8 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 17 - 10 Industry 2 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Wireline Telecommunications Carriers Expenditures for Structures New $10,652 3 $18,021 $14,482 $7,820 $9,825 3 $7,921 $10,142 $9,318 3 Used 12 3 205 18 1 52 3 11 18 7 3 Total 10,664 17,309 18,226 14,500 7,821 9,877 8,118 7,933 10,160 9,325 8,956 Expenditures for Equipment New 39,828 3 55,902 57,436 26,986 16,918 3 19,172 21,924 25,737 3 Used 78 3 77 38 12 41 3 31 57 144 3 Total 39,905 42,442 55,980 57,474 26,998 16,959 15,922 19,203 21,981 25,882 24,369 Total Expenditures for Structures and Equipment $50,570 $59,752 $74,206 $71,974 $34,819 $26,836 $24,040 $27,136 $32,141 $35,207 $33,325 Wireless Telecommunications Carriers (Except Satellite) Expenditures for Structures New $2,387 $5,026 $7,674 $11,313 $8,245 $11,512 $11,685 3 12,604 3 8,070 Used * 3 58 8 7 2 31 3 45 3 25 Total 2,387 5,030 7,732 11,321 8,252 11,514 11,716 16,456 12,648 7,253 8,094 Expenditures for Equipment New 5,841 9,350 17,589 12,695 12,210 9,459 12,278 3 15,290 3 17,457 Used 6 43 161 13 29 16 4 3 31 3 4 Total 5,841 9,393 17,750 12,708 12,238 9,475 12,282 10,882 15,321 14,971 17,462 Total Expenditures for Structures and Equipment $8,228 $14,422 $25,482 $24,028 $20,490 $20,989 $23,998 $27,337 $27,969 $22,225 $25,556 Resellers, Satellite and Other Telecommunications Carriers Expenditures for Structures New $2,089 $1,410 $1,951 $2,233 $1,556 $3,499 $397 $449 $259 $279 $598 Used * 4 3 5 3 133 6 1 - 1 18 Total 2,089 1,414 1,954 2,238 1,560 3,632 403 450 259 280 616 Expenditures for Equipment New 4,188 8,795 11,495 7,288 4,119 809 3,095 3,180 2,726 3,038 2,766 Used 4 49 164 78 12 96 22 27 18 59 14 Total 4,192 8,845 11,659 7,367 4,131 905 3,117 3,207 2,744 3,097 2,780 Total Expenditures for Structures and Equipment $6,281 $10,259 $13,613 $9,605 $5,691 $4,537 $3,520 $3,657 $3,003 $3,377 $3,396 Total Telephone and Other Communications Services Expenditures for Structures New 15,128 3 $27,646 $28,028 $17,621 $24,836 3 $8,373 $23,005 $9,600 $8,671 Used 12 3 266 31 11 187 3 15 63 11 46 Total 15,140 23,753 27,912 28,059 17,633 25,023 18,237 8,382 23,068 9,605 9,605 Expenditures for Equipment New 49,857 3 84,986 77,419 43,315 27,186 3 22,355 39,940 28,778 20,226 Used 88 3 402 129 53 153 3 61 106 206 21 Total 49,938 60,680 85,389 77,549 43,367 27,339 31,321 22,410 40,046 28,978 28,978 Total Expenditures for Structures and Equipment $65,079 $84,433 $113,301 $105,607 $61,000 $52,362 $51,558 $58,130 $63,113 $60,809 $62,277 Note: Detail may not add to totals shown due to rounding. * Represents amounts greater than $0 but less than $500,000. 1 Capital expenditures include capitalized computer software, capitalized interest during construction and expenditures for land development and improvement. They exclude equipment acquired under operating leases, good will, and expenditures for subsidiaries and branches located outside the United States. 2 Starting in 1998 data are based on the North American Industry Classification System (NAICS). NAICS Codes are 51331 for Wireline, 51332 for Wireless and 51333, 51334 and 51339 for others. For 2004 - 2008 they are 5171, 5172, and 5173, 5174, and 5179, respectively. 3 Data withheld by the Census Bureau to maintain firm confidentiality. Source: U.S. Census Bureau, Annual Capital Expenditures, (Issued June 23, 2010) Table 4a See: http://www.census.gov/econ/aces/xls/2008/Full%20Report.htm (last visited September 20, 2010). Table 17.6 (Expenditure Amounts Shown in Millions) Capital Expenditures for Structures and Equipment 1 17 - 11 Capital Expenditures for Structures and Equipment by Carriers Chart 17.2 1 Capital expenditures per dollar of end-user telecommunications revenues are derived by dividing expenditures figures in Table 17.6 by end-user revenues data in Table 6 of the Revenue Report. Source: U.S. Census Bureau, Annual Capital Expenditures ; Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2010). Per Dollar of End-User Telecommunications Revenues 1 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 Wireless Carriers $0.32 $0.44 $0.35 $0.27 $0.25 $0.25 $0.27 $0.25 $0.19 $0.22 Wireline & Resellers $0.41 $0.51 $0.49 $0.26 $0.18 $0.17 $0.20 $0.25 $0.28 $0.28 All Telecommunications Carriers $0.39 $0.49 $0.45 $0.26 $0.23 $0.22 $0.25 $0.27 $0.25 $0.26 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 17 - 12 18 - 1 18 Telephone Numbers When the North American Numbering Plan was established in 1947, only 78 area codes were assigned to carriers in the United States. Only 36 new codes were added through 1989. But the rate of activation increased dramatically. In the 1990s, 109 new area codes were activated in the United States. Because the remaining supply of unassigned area codes is diminishing, and because a premature exhaust of area codes imposes significant costs on consumers, the Commission has taken a number of steps to ensure that the limited numbering resources are used efficiently. Among other things, the Commission requires carriers to submit data on numbering resource utilization and forecasts twice a year. The information is submitted using FCC Form 502, which is known as the Numbering Resource Utilization/Forecast (NRUF) form. Carriers controlling numbering resources for the purpose of providing services to their customers are required to file their NRUF forms with the North American Numbering Plan Administrator (NANPA) by February 1 and August 1 of each year. Table 18.1 shows the percentage of numbers that have been assigned to carriers and that the carriers have then assigned to end users over time. The utilization rate for incumbent local exchange carriers (LECs) is slowly declining and cellular/PCS and competitive LEC (CLEC) utilization rates are generally increasing. The utilization rate for paging continues to drop because the paging market is shrinking. Table 18.2 shows the total quantity of telephone numbers reported by the carriers and the number of 10,000 blocks (or NXXs) that were reported. It also shows the quantity of telephone numbers that carriers reported for each of the following six categories of telephone numbers: assigned, intermediate, reserved, aging, administrative, and available. 1 Table 18.3 shows utilization statistics on a state-by-state basis. As might be expected, states that are relatively rural and have low population densities have a lower percentage of numbers that have been assigned to end-user customers than in more urban, populous states. Carriers report only those numbers that have been assigned to them, so the quantity of available numbers does not include any of the NXXs that had not yet been assigned to a carrier. Table 18.4 lists in-service area codes along with the state and month the code was activated. Table 18.5 shows area code assignment information from 1947 to 2009. AT&T introduced toll-free service in 1967. The Commission changed procedures for routing toll-free calls on May 1, 1993 to make toll-free numbers "portable." This change enabled customers to switch service providers yet still retain their toll-free numbers. Between 1993 and 2000, the quantity of assigned toll-free numbers grew rapidly: growing from 3.9 million in 1993 to 24.2 million in 2000. New toll-free calling codes were opened to meet the demand. In March 1996, calling code 888 was placed into service. The third 1 For definitions on these categories, see Numbering Resource Utilization in the United States, available at http://www.fcc.gov/wcb/iatd/number.html. 18 - 2 toll-free calling code (877) went into effect April 4, 1998, and the fourth toll-free calling code (866) went into effect July 29, 2000. The growth of toll-free telephone numbers for the four toll-free codes (800, 888, 877, and 866) is shown in Table 18.6 and Chart 18.1. Tables 18.7 through 18.10 show the growth of each individual toll-free code: 800, 888, 877, and 866, respectively. In the event that another toll-free code is needed, the 855 code would be opened. Database Service Management, Inc./Team DSMI, a subsidiary of Telcordia Technologies, Inc., maintains the Toll-Free Service Management System for the United States and Canada. Dialing patterns differ from state to state. For instance, in some states, callers making local calls within an area code are required to dial only the 7-digit phone number. In other states, callers making local calls must dial the ten-digit phone number (area code plus the phone number). Finally, in some states, local callers must dial a “1” before dialing the area code plus the phone number. Each state’s public utilities commission (or public service commission) determines the calling pattern for each area code in their state. The dialing patterns for area codes are listed in area code planning letters, which are available on the North American Numbering Plan Administrator’s web site at www.nanpa.com. For both local and domestic toll calls, there are two basic types of calls: those within an area code and those between area codes. Table 18.11 shows the dialing patterns for all four types of calls. The last column of Table 18.11 indicates whether all toll calls in that state require callers to dial a “1” before the telephone number. Table 18.1 Telephone Number Utilization over Time ILEC Cellular/PCS CLEC Paging Overall 2000 December 52.1% 46.2% 9.8% 26.3% 40.1% 2001 June 52.1% 45.3% 10.9% 24.8% 39.6% December 52.5% 47.2% 11.4% 20.2% 39.7% 2002 June 52.2% 47.5% 10.4% 17.6% 39.2% December 52.2% 47.8% 10.6% 17.0% 39.2% 2003 June 53.2% 49.0% 10.7% 14.3% 39.9% December 52.6% 50.6% 10.6% 13.0% 39.5% 2004 June 54.5% 53.9% 14.8% 10.9% 42.3% December 53.5% 54.6% 16.4% 10.3% 42.2% 2005 June 52.8% 56.9% 18.1% 9.9% 43.0% December 52.4% 59.1% 19.7% 8.6% 43.4% 2006 June 50.2% 60.4% 20.5% 8.1% 43.3% December 49.3% 63.3% 21.5% 8.0% 44.2% 2007 June 50.8% 64.8% 25.4% 7.5% 46.7% December 50.7% 65.0% 26.9% 7.1% 47.1% 2008 June 50.3% 65.3% 30.4% 6.6% 48.1% December 49.6% 65.6% 31.1% 6.7% 47.9% 2009 June 48.8% 66.1% 34.3% 6.1% 48.5% Table 18.2 Telephone Number Utilization by Carrier Type as of June 30, 2009 Assigned Intermediate Reserved Aging Admin Available 1 Total Unique Carrier Type (Thousands of telephone numbers) NXXs Incumbent LEC 282,648 14,405 4,150 14,382 12,943 251,007 579,534 66,642 Cellular/PCS 280,156 1,671 1,490 16,100 4,314 120,453 424,183 56,008 CLEC 105,711 3,453 3,287 7,073 1,441 186,994 307,959 49,739 Paging 4,689 644 649 587 221 70,609 77,400 5,834 All Reporting Carriers 673,203 20,173 9,576 38,142 18,919 629,063 1,389,076 140,260 2 Incumbent LEC 48.8% 2.5% 0.7% 2.5% 2.2% 43.3% 100.0% Cellular/PCS 66.1% 0.4% 0.4% 3.8% 1.0% 28.4% 100.0% CLEC 34.3% 1.1% 1.1% 2.3% 0.5% 60.7% 100.0% Paging 6.1% 0.8% 0.8% 0.8% 0.3% 91.2% 100.0% All Reporting Carriers 48.5% 1.5% 0.7% 2.8% 1.4% 45.3% 100.0% Source: Numbering Resource Utilization in the United States. 1 Includes only telephone numbers in NXXs assigned to carriers and are therefore available for assignment to customers. Does not include any numbers in NXXs that have not yet been assigned to carriers. 2 Unduplicated total. Note: Figures may not add due to rounding. Where an Regional Bell Operating Company (RBOC) has acquired a carrier with Competitive Local Exchange Carrier (CLEC) services in the RBOC's operating region, the numbering resources of the acquired CLEC that are in the RBOC's operating region are counted as incumbent LEC resources. Where the acquired CLEC provides services outside of the acquirer's operating region, the numbering resources are treated as CLEC resources. 18 - 3 Table 18.3 Telephone Number Utilization by State as of June 30, 2009 Assigned Intermediate Reserved Aging Administrative Available 1 Total State/jurisdiction 000s % 000s % 000s % 000s % 000s % 000s % 000s Alabama 9,744 43.5 658 2.9 165 0.7 627 2.8 398 1.8 10,833 48.3 22,425 Alaska 1,544 28.2 39 0.7 120 2.2 96 1.7 36 0.7 3,646 66.5 5,481 American Samoa 26 87.9 0 0.0 1 2.6 0 0.0 1 3.0 2 6.5 30 Arizona 13,419 63.0 89 0.4 163 0.8 743 3.5 238 1.1 6,650 31.2 21,303 Arkansas 5,118 35.4 421 2.9 50 0.3 285 2.0 166 1.1 8,412 58.2 14,453 California 82,747 53.1 1,794 1.2 723 0.5 4,463 2.9 3,071 2.0 63,042 40.5 155,841 Colorado 12,325 58.5 56 0.3 124 0.6 611 2.9 372 1.8 7,581 36.0 21,069 Connecticut 7,926 52.5 284 1.9 91 0.6 352 2.3 200 1.3 6,251 41.4 15,104 Delaware 2,670 56.8 13 0.3 42 0.9 147 3.1 29 0.6 1,799 38.3 4,700 District of Columbia 4,341 73.3 2 0.0 73 1.2 220 3.7 39 0.7 1,245 21.0 5,919 Florida 39,672 54.9 2,305 3.2 521 0.7 3,159 4.4 1,330 1.8 25,220 34.9 72,206 Georgia 19,513 48.6 1,840 4.6 279 0.7 1,489 3.7 729 1.8 16,279 40.6 40,128 Guam 219 32.7 0 0.0 0 0.0 13 1.9 3 0.5 434 64.8 670 Hawaii 2,849 55.9 12 0.2 20 0.4 152 3.0 189 3.7 1,874 36.8 5,098 Idaho 2,945 44.2 104 1.6 53 0.8 170 2.6 187 2.8 3,202 48.1 6,661 Illinois 29,378 46.4 511 0.8 540 0.9 1,416 2.2 623 1.0 30,854 48.7 63,322 Indiana 11,689 42.3 372 1.3 150 0.5 564 2.0 336 1.2 14,517 52.5 27,629 Iowa 7,109 35.3 377 1.9 204 1.0 295 1.5 166 0.8 11,999 59.5 20,151 Kansas 5,500 32.2 491 2.9 113 0.7 272 1.6 178 1.0 10,535 61.7 17,088 Kentucky 8,275 37.9 556 2.5 134 0.6 422 1.9 288 1.3 12,169 55.7 21,844 Louisiana 9,118 42.5 617 2.9 92 0.4 683 3.2 373 1.7 10,591 49.3 21,474 Maine 2,632 41.6 21 0.3 135 2.1 90 1.4 124 2.0 3,331 52.6 6,332 Maryland 14,958 57.4 27 0.1 183 0.7 824 3.2 171 0.7 9,879 37.9 26,042 Massachusetts 20,333 53.4 30 0.1 518 1.4 1,033 2.7 285 0.7 15,904 41.7 38,102 Michigan 20,856 40.2 441 0.9 194 0.4 1,068 2.1 456 0.9 28,859 55.6 51,874 Minnesota 12,048 42.6 156 0.6 231 0.8 519 1.8 461 1.6 14,834 52.5 28,249 Mississippi 5,063 31.1 288 1.8 84 0.5 368 2.3 387 2.4 10,071 61.9 16,261 Missouri 11,644 39.3 553 1.9 150 0.5 613 2.1 299 1.0 16,378 55.3 29,637 Montana 1,679 26.3 15 0.2 42 0.7 107 1.7 44 0.7 4,507 70.5 6,394 Nebraska 3,634 34.6 95 0.9 34 0.3 175 1.7 94 0.9 6,460 61.6 10,492 Nevada 5,746 61.3 70 0.7 48 0.5 428 4.6 111 1.2 2,975 31.7 9,378 New Hampshire 3,368 47.2 9 0.1 153 2.1 126 1.8 59 0.8 3,414 47.9 7,129 New Jersey 21,858 53.7 116 0.3 260 0.6 1,237 3.0 315 0.8 16,885 41.5 40,671 New Mexico 3,760 50.5 59 0.8 40 0.5 214 2.9 98 1.3 3,278 44.0 7,449 New York 45,981 58.7 436 0.6 787 1.0 2,604 3.3 660 0.8 27,847 35.6 78,316 North Carolina 17,410 48.7 1,076 3.0 193 0.5 1,241 3.5 541 1.5 15,313 42.8 35,774 North Dakota 1,197 20.4 27 0.5 8 0.1 58 1.0 58 1.0 4,518 77.0 5,865 Northern Marianas Is. 54 54.5 0 0.0 11 10.7 4 4.4 0 0.0 30 30.4 100 Ohio 23,540 45.8 960 1.9 147 0.3 1,138 2.2 560 1.1 24,999 48.7 51,343 Oklahoma 6,572 34.1 526 2.7 49 0.3 438 2.3 215 1.1 11,483 59.5 19,283 Oregon 7,746 50.7 64 0.4 122 0.8 405 2.7 222 1.5 6,706 43.9 15,266 Pennsylvania 28,414 49.2 168 0.3 691 1.2 1,575 2.7 430 0.7 26,521 45.9 57,799 Puerto Rico 3,671 61.2 0 0.0 40 0.7 169 2.8 79 1.3 2,041 34.0 5,999 Rhode Island 3,101 59.7 3 0.1 55 1.1 117 2.2 27 0.5 1,895 36.5 5,198 South Carolina 8,725 48.0 687 3.8 109 0.6 636 3.5 334 1.8 7,699 42.3 18,189 South Dakota 1,405 23.8 24 0.4 10 0.2 88 1.5 78 1.3 4,296 72.8 5,901 Tennessee 12,973 49.6 843 3.2 186 0.7 829 3.2 340 1.3 10,990 42.0 26,161 Texas 50,850 46.0 2,502 2.3 631 0.6 3,056 2.8 2,154 1.9 51,446 46.5 110,640 Utah 6,258 56.6 65 0.6 61 0.6 266 2.4 158 1.4 4,254 38.5 11,062 Vermont 2,374 45.2 4 0.1 84 1.6 49 0.9 59 1.1 2,682 51.1 5,253 Virgin Islands 170 47.3 15 4.2 31 8.6 46 12.7 2 0.5 96 26.7 360 Virginia 18,724 59.6 36 0.1 259 0.8 1,061 3.4 285 0.9 11,056 35.2 31,420 Washington 15,836 57.6 67 0.2 132 0.5 753 2.7 464 1.7 10,264 37.3 27,515 West Virginia 2,742 41.4 49 0.7 71 1.1 110 1.7 66 1.0 3,586 54.1 6,625 Wisconsin 10,683 39.8 190 0.7 158 0.6 434 1.6 284 1.1 15,115 56.3 26,864 Wyoming 1,072 30.3 7 0.2 11 0.3 85 2.4 45 1.3 2,318 65.5 3,538 Totals 673,204 48.5 20,173 1.5 9,576 0.7 38,142 2.7 18,919 1.4 629,064 45.3 1,389,078 Source: Numbering Resource Utilization in the United States. 1 Includes only telephone numbers in NXXs assigned to carriers and are therefore available for assignment to customers. Does not include any numbers in NXXs that have not yet been assigned to carriers. Note: Figures may not add due to rounding. 18 - 4 Area Code State/Jurisdiction Area Code Opened Area Code State/ Jurisdiction Area Code Opened Area Code State/ Jurisdiction Area Code Opened Area Code State/ Jurisdiction Area Code Opened 205 Alabama Jan-47 404 Georgia Jan-47 218 Minnesota Jan-47 215 Pennsylvania Jan-47 251 Alabama Jun-01 678 Georgia Jan-98 320 Minnesota Mar-96 267 Pennsylvania Jul-99 256 Alabama Mar-98 706 Georgia May-92 507 Minnesota Jan-54 412 Pennsylvania Jan-47 334 Alabama Jan-95 770 Georgia Aug-95 612 Minnesota Jan-47 484 Pennsylvania Jun-99 938 Alabama Jul-10 912 Georgia Jan-54 651 Minnesota Jul-98 570 Pennsylvania Dec-98 907 Alaska Jan-57 671 Guam Jul-97 228 Mississippi Sep-97 610 Pennsylvania Jan-94 684 American Somoa Oct-04 808 Hawaii Jan-57 601 Mississippi Jan-47 717 Pennsylvania Jan-47 480 Arizona Mar-99 208 Idaho Jan-47 662 Mississippi Apr-99 724 Pennsylvania Feb-98 520 Arizona Mar-95 217 Illinois Jan-47 769 Mississippi Mar-05 814 Pennsylvania Jan-47 602 Arizona Jan-47 224 Illinois Jan-02 314 Missouri Jan-47 787 Puerto Rico Mar-96 623 Arizona Mar-99 309 Illinois Jan-57 417 Missouri Jan-50 939 Puerto Rico Sep-01 928 Arizona Jun-01 312 Illinois Jan-47 573 Missouri Jan-96 401 Rhode Island Jan-47 479 Arkansas Jan-02 331 Illinois Oct-07 636 Missouri May-99 803 South Carolina Jan-47 501 Arkansas Jan-47 618 Illinois Jan-47 660 Missouri Oct-97 843 South Carolina Mar-98 870 Arkansas Apr-97 630 Illinois Aug-96 816 Missouri Jan-47 864 South Carolina Dec-95 209 California Jan-58 708 Illinois Nov-89 406 Montana Jan-47 605 South Dakota Jan-47 213 California Jan-47 773 Illinois Oct-96 308 Nebraska Jan-55 423 Tennessee Sep-95 310 California Nov-91 779 Illinois Mar-07 402 Nebraska Jan-47 615 Tennessee Jan-54 323 California Jun-98 815 Illinois Jan-47 531 Nebraska Mar-11 731 Tennessee Feb-01 408 California Jan-59 847 Illinois Jan-96 702 Nevada Jan-47 865 Tennessee Nov-99 415 California Jan-47 872 Illinois Nov-09 775 Nevada Dec-98 901 Tennessee Jan-47 424 California Aug-06 219 Indiana Jan-47 603 New Hampshire Jan-47 931 Tennessee Sep-97 442 California Nov-09 260 Indiana Jan-02 201 New Jersey Jan-47 210 Texas Nov-92 510 California Sep-91 317 Indiana Jan-47 551 New Jersey Dec-01 214 Texas Jan-47 530 California Nov-97 574 Indiana Jan-02 609 New Jersey Jan-57 254 Texas May-97 559 California Nov-98 765 Indiana Feb-97 732 New Jersey Jun-97 281 Texas Nov-96 562 California Jan-97 812 Indiana Jan-47 848 New Jersey Dec-01 325 Texas Apr-03 619 California Jan-82 319 Iowa Jan-47 856 New Jersey Jun-99 361 Texas Feb-99 626 California Jun-97 515 Iowa Jan-47 862 New Jersey Dec-01 409 Texas Nov-82 650 California Aug-97 563 Iowa Mar-01 908 New Jersey Nov-90 430 Texas Feb-03 657 California Sep-08 641 Iowa Jul-00 973 New Jersey Jun-97 432 Texas Apr-03 661 California Feb-99 712 Iowa Jan-47 505 New Mexico Jan-47 469 Texas Jul-99 707 California Jan-59 316 Kansas Jan-47 575 New Mexico Oct-07 512 Texas Jan-47 714 California Jan-51 620 Kansas Feb-01 212 New York Jan-47 682 Texas Oct-00 747 California May-09 785 Kansas Jul-97 315 New York Jan-47 713 Texas Jan-47 760 California Mar-97 913 Kansas Jan-47 347 New York Oct-99 806 Texas Jan-57 805 California Jan-57 270 Kentucky Apr-99 516 New York Jan-51 817 Texas Jan-53 818 California Jan-84 364 Kentucky Oct-11 518 New York Jan-47 830 Texas Jul-97 831 California Jul-98 502 Kentucky Jan-47 585 New York Nov-01 832 Texas Jan-99 858 California Jun-99 606 Kentucky Jan-55 607 New York Jan-54 903 Texas Nov-90 909 California Nov-92 859 Kentucky Apr-00 631 New York Nov-99 915 Texas Jan-47 916 California Jan-47 225 Louisiana Aug-98 646 New York Jul-99 936 Texas Feb-00 925 California Mar-98 318 Louisiana Jan-57 716 New York Jan-47 940 Texas May-97 949 California Apr-98 337 Louisiana Oct-99 718 New York Sep-84 956 Texas Jul-97 951 California Jul-04 504 Louisiana Jan-47 845 New York Jun-00 972 Texas Sep-96 303 Colorado Jan-47 985 Louisiana Feb-01 914 New York Jan-47 979 Texas Feb-00 719 Colorado Mar-88 207 Maine Jan-47 917 New York Jan-92 385 Utah Mar-09 720 Colorado Jun-98 240 Maryland Jun-97 252 North Carolina Mar-98 435 Utah Sep-97 970 Colorado Apr-95 301 Maryland Jan-47 336 North Carolina Dec-97 801 Utah Jan-47 203 Connecticut Jan-47 410 Maryland Oct-91 704 North Carolina Jan-47 802 Vermont Jan-47 475 Connecticut Dec-09 443 Maryland Jun-97 828 North Carolina Mar-98 340 Virgin Islands Jun-97 860 Connecticut Aug-95 339 Massachusetts May-01 910 North Carolina Nov-93 276 Virginia Sep-01 302 Delaware Jan-47 351 Massachusetts May-01 919 North Carolina Jan-54 434 Virginia Jun-01 202 District of Columbia Jan-47 413 Massachusetts Jan-47 980 North Carolina Apr-01 540 Virginia Jul-95 239 Florida Mar-02 508 Massachusetts Jul-88 701 North Dakota Jan-47 571 Virginia Mar-00 305 Florida Jan-47 617 Massachusetts Jan-47 670 Northern Marianas Is. Jul-97 703 Virginia Jan-47 321 Florida Nov-99 774 Massachusetts May-01 216 Ohio Jan-47 757 Virginia Jul-96 352 Florida Dec-95 781 Massachusetts Sep-97 234 Ohio Oct-00 804 Virginia Jun-73 386 Florida Feb-01 857 Massachusetts May-01 330 Ohio Mar-96 206 Washington Jan-47 407 Florida Apr-88 978 Massachusetts Sep-97 419 Ohio Jan-47 253 Washington Apr-97 561 Florida May-96 231 Michigan Jun-99 440 Ohio Aug-97 360 Washington Jan-95 727 Florida Jul-98 248 Michigan May-97 513 Ohio Jan-47 425 Washington Apr-97 754 Florida Aug-01 269 Michigan Jul-02 567 Ohio Jan-02 509 Washington Jan-57 772 Florida Feb-02 313 Michigan Jan-47 614 Ohio Jan-47 304 West Virginia Jan-47 786 Florida Mar-98 517 Michigan Jan-47 740 Ohio Dec-97 681 West Virginia Mar-09 813 Florida Jan-53 586 Michigan Sep-01 937 Ohio Sep-96 262 Wisconsin Sep-99 850 Florida Jun-97 616 Michigan Jan-47 405 Oklahoma Jan-47 274 Wisconsin Mar-12 863 Florida Sep-99 734 Michigan Dec-97 580 Oklahoma Nov-97 414 Wisconsin Jan-47 904 Florida Jul-65 810 Michigan Dec-93 918 Oklahoma Jan-53 534 Wisconsin Aug-10 941 Florida May-95 906 Michigan Mar-61 458 Oregon Feb-10 608 Wisconsin Jan-55 954 Florida Sep-95 947 Michigan Sep-02 503 Oregon Jan-47 715 Wisconsin Jan-47 229 Georgia Aug-00 989 Michigan Apr-01 541 Oregon Nov-95 920 Wisconsin Jul-97 478 Georgia Aug-00 763 Minnesota Feb-00 971 Oregon Oct-00 307 Wyoming Jan-47 762 Georgia May-06 952 Minnesota Feb-00 878 Pennsylvania Aug-01 Source: North American Numbering Plan Administrator. Note: Implementation dates after 2009 are scheduled dates. Table 18.4 Area Codes by State 18 - 5 Table 18.5 Area Code Assignments (since 1999) Implementation Previous Added Location Date 1 Code Code Texas (Houston) Jan-99 713 832 California Feb-99 805 661 Texas Feb-99 512 361 Arizona Mar-99 602 480 Arizona Mar-99 602 623 Kentucky Apr-99 502 270 Mississippi Apr-99 601 662 Alberta May-99 403 780 Missouri May-99 314 636 Michigan Jun-99 616 231 Pennsylvania Jun-99 610 484 California Jun-99 619 858 New Jersey Jun-99 609 856 New York (Manhattan) Jul-99 212 646 Pennsylvania Jul-99 215 267 Texas (Dallas) Jul-99 214 469 Florida Sep-99 941 863 Wisconsin Sep-99 414 262 New York Oct-99 718 347 Louisiana Oct-99 318 337 Florida Nov-99 407 321 New York Nov-99 516 631 Tennessee Nov-99 423 865 Texas Feb-00 409 936 Texas Feb-00 409 979 Minnesota Feb-00 612 763 Minnesota Feb-00 612 952 Virginia Mar-00 703 571 Kentucky Apr-00 606 859 New York Jun-00 914 845 Iowa Jul-00 515 641 Georgia Aug-00 912 229 Georgia Aug-00 912 478 Oregon Oct-00 503 971 Texas Oct-00 817 682 Ohio Oct-00 330 234 Kansas Feb-01 316 620 Louisiana Feb-01 504 985 Tennessee Feb-01 901 731 Florida Feb-01 904 386 Ontario Mar-01 416 647 Iowa Mar-01 319 563 North Carolina Apr-01 704 980 Michigan Apr-01 517 989 Massachusetts May-01 508 774 Massachusetts May-01 617 857 Massachusetts May-01 781 339 Massachusetts May-01 978 351 Pennsylvania May-01 484 835 2 Pennsylvania May-01 267 445 3 Virginia Jun-01 804 434 Ontario Jun-01 905 289 Alabama Jun-01 334 251 Arizona Jun-01 520 928 Florida Aug-01 954 754 18 - 6 Table 18.5 Area Code Assignments (since 1999) Implementation Previous Added Location Date 1 Code Code Pennsylvania Aug-01 412 878 Virginia Sep-01 540 276 Puerto Rico Sep-01 787 939 Michigan Sep-01 810 586 British Columbia Nov-01 604 778 New York Nov-01 716 585 New Jersey Dec-01 201 551 New Jersey Dec-01 732 848 New Jersey Dec-01 973 862 Ohio Jan-02 419 567 Illinois Jan-02 847 224 Indiana Jan-02 219 260 Indiana Jan-02 219 574 Arkansas Jan-02 501 479 Florida Feb-02 561 772 Florida Mar-02 941 239 Michigan Jul-02 616 269 Michigan Sep-02 248 947 Texas Feb-03 903 430 Texas Apr-03 915 325 Texas Apr-03 915 432 California Jul-04 909 951 Mississippi Mar-05 601 769 Dominican Republic Aug-05 809 829 Georgia May-06 706 762 California Aug-06 310 424 Ontario Oct-06 519 226 Quebec Nov-06 514 438 Illinois Mar-07 815 779 Illinois Oct-07 630 331 New Mexico Oct-07 505 575 California Sep-08 714 657 Kentucky Jan-09 270 364 Utah Mar-09 801 385 California May-09 818 747 Illinois Nov-09 312 872 California Nov-09 760 442 Connecticut Dec-09 203 475 Oregon Feb-10 541 458 Alabama Jul-10 256 938 Wisconsin Aug-10 715 534 Nebraska Mar-11 402 531 Kentucky Oct-11 270 364 Wisconsin Mar-12 920 274 Note: For years 1984 - 1998, see Industry Analysis and Technology Division, Wireline Competition Bureau, Trends in Telephone Service (August 2003). 1 Implemenation dates after 2009 are scheduled dates. 2 The NANPA was able to reclaim area code 835. See Planning Letter 344. 3 The NANPA was able to reclaim area code 445. See Planning Letter 332. Source: North American Numbering Plan Administrator (NANPA), which can be accessed at www.nanpa.com. Planning letters can be found at www.nanpa.com/planning_letters/index.html. 18 - 7 Table 18.6 Telephone Numbers Assigned for Toll-Free Service (800, 888, 877, 866) 1 Working Miscellaneous Total Spare Numbers Year Month Numbers Numbers 2 Numbers Still Available 1993 December 3,155,955 731,438 3,887,393 3,822,607 1994 December 4,948,605 763,235 5,711,840 1,998,160 1995 December 6,700,576 286,487 6,987,063 722,937 1996 December 9,527,982 945,671 10,473,653 5,216,347 1997 December 12,980,714 996,449 13,977,163 1,712,837 1998 December 16,200,883 965,466 17,166,349 6,503,651 1999 December 19,677,001 1,101,964 20,778,965 2,891,035 2000 December 23,022,015 1,178,096 24,200,111 7,449,889 2001 December 23,453,029 1,027,973 24,481,002 7,168,998 2002 December 22,496,215 1,051,232 23,547,447 8,102,553 2003 December 21,108,662 941,520 22,050,182 9,599,818 2004 December 22,159,440 1,145,661 23,305,101 8,344,899 2005 December 22,474,643 957,835 23,432,478 8,217,522 2006 December 22,709,753 756,808 23,466,561 8,183,439 2007 3 December 23,902,113 585,864 24,487,982 7,322,018 2008 December 24,556,244 773,164 25,329,408 6,480,592 2009 September 25,534,225 504,064 26,038,289 5,771,711 Note: For individual month assignments through June 2003, see Industry Analysis and Technology Division, Wireline Competition Bureau, Trends in Telephone Service (August 2003). Chart 18.1 Working Toll-Free Numbers (Numbers in Millions) 1 Toll-free (800) service was initially offered by AT&T in 1967. On May 1, 1993, procedures for routing toll- free calls were changed and 800 numbers were made "portable" so customers who switched service providers could retain their numbers. Due to the growth in demand for toll-free numbers, a new toll-free calling code, 888, was added in March 1996, which made it possible to assign about 8 million new toll-free numbers. A third toll-free calling code, 877, was added in April 1998; and a fourth toll-free code, 866, was added in July 2000. 2 Miscellaneous numbers include those in the 800, 888, 877, and 866 service management systems maintained by Database Service Management, Inc., and categorized as reserved, assigned but not yet activated, recently disconnected, or suspended. 3 SMS800 freed up all unused numbers contained in certain blocks of numbers that were reserved for the provision of certain mobile radio telecommunications (pager) services within a specified geographic area. These numbers were in NPA 800 and had NXXs in the range of NX2 where ‘N’ = 2 through 9 and ‘X’ = 0 for 1 and the numbers ended in a state code. http://www.sms800.com/PublicContent.aspx?Text=2008&URL=Shared+Documents%2fPublic%2fNews%2f2008&Site=Public, visited January 15, 2010. 0.0 5.0 10.0 15.0 20.0 25.0 30.0 Series1 3.2 4.9 6.7 9.5 13.0 16.2 19.7 23.0 23.5 22.5 21.1 22.2 22.5 22.7 23.9 24.6 25.5 Dec 1993 Dec 1994 Dec 1995 Dec 1996 Dec 1997 Dec 1998 Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Sep 2009 18 - 8 Table 18.7 Telephone Numbers Assigned for 800 Toll-Free Service 1 Total Spare Toll-Free Working Miscellaneous Toll-Free Numbers Toll-Free Toll-Free Numbers Still Year Month Numbers Numbers 2 Assigned Available 1998 June 7,480,468 227,041 7,707,509 2,491 September 7,489,271 219,080 7,708,351 1,649 December 7,487,529 215,267 7,702,796 7,204 1999 March 7,498,527 204,515 7,703,042 6,958 June 7,502,118 207,061 7,709,179 821 September 7,523,302 185,363 7,708,665 1,335 December 7,505,737 202,416 7,708,153 1,847 2000 March 7,516,391 193,246 7,709,637 363 June 7,570,082 139,444 7,709,526 474 September 7,572,091 137,705 7,709,796 204 December 7,566,810 132,887 7,699,697 10,303 2001 March 7,434,621 264,967 7,699,588 10,412 June 7,357,279 242,106 7,599,385 110,615 September 7,383,111 164,881 7,547,992 162,008 December 7,370,055 184,689 7,554,744 155,256 2002 March 7,181,636 400,955 7,582,591 127,409 June 7,234,847 282,005 7,516,852 193,148 September 7,200,821 177,723 7,378,544 331,456 December 7,210,159 203,268 7,413,427 296,573 2003 March 7,182,120 224,536 7,406,656 303,344 June 7,171,068 234,576 7,405,644 304,356 September 7,031,806 222,846 7,254,652 455,348 December 7,089,752 260,807 7,350,559 359,441 2004 March 7,187,381 234,719 7,422,100 287,900 June 7,181,216 187,107 7,368,323 341,677 September 7,262,915 197,252 7,460,167 249,833 December 7,332,085 208,368 7,540,453 169,547 2005 March 7,267,936 234,679 7,502,615 207,385 June 7,163,402 425,206 7,588,608 121,392 September 7,160,678 495,326 7,656,004 53,996 December 7,317,165 277,052 7,594,217 115,783 2006 March 7,416,046 197,083 7,613,129 96,871 June 7,330,416 317,525 7,647,941 62,059 September 7,419,137 279,471 7,698,608 11,392 December 7,445,535 207,672 7,653,207 56,793 2007 March 7,559,307 140,686 7,699,993 10,007 June 7,546,532 153,063 7,699,595 10,405 September 7,597,883 102,117 7,700,000 10,000 December 7,736,774 3 123,226 7,860,000 10,000 3 2008 March 7,731,284 3 128,716 7,860,000 10,000 3 June 7,686,736 173,264 7,860,000 10,000 3 September 7,755,279 104,721 7,860,000 10,000 3 December 7,731,430 128,570 7,860,000 10,000 3 2009 March 7,752,946 107,054 7,860,000 10,000 3 June 7,775,315 84,685 7,860,000 10,000 3 September 7,780,198 79,802 7,860,000 10,000 3 1 For data before 1998, see the August 2008 edition of Trends in Telephone Service. 2 See Notes to Table 18.6. 3 See Notes to Table 18.6. 18 - 9 Table 18.8 Telephone Numbers Assigned for 888 Toll-Free Service 1 Total Spare Toll-Free Working Miscellaneous Toll-Free Numbers Toll-Free Toll-Free Numbers Still Year Month Numbers Numbers 2 Assigned Available 1998 June 6,591,764 665,496 7,257,260 722,740 September 6,898,718 612,254 7,510,972 469,028 December 7,146,159 515,009 7,661,168 318,832 1999 March 7,278,531 495,904 7,774,435 205,565 June 7,428,424 231,697 7,660,121 319,879 September 7,601,867 211,318 7,813,185 166,815 December 7,643,158 324,405 7,967,563 12,437 2000 March 7,685,423 230,035 7,915,458 64,542 June 7,789,986 140,658 7,930,644 49,356 September 7,806,252 173,588 7,979,840 160 December 7,789,188 177,328 7,966,516 13,484 2001 March 7,616,189 355,451 7,971,640 8,360 June 7,548,761 270,198 7,818,959 161,041 September 7,508,100 203,518 7,711,618 268,382 December 7,452,071 190,727 7,642,798 337,202 2002 March 6,964,624 577,910 7,542,534 437,466 June 6,629,862 354,771 6,984,633 995,367 September 6,682,043 92,050 6,774,093 1,205,907 December 6,610,191 154,015 6,764,206 1,215,794 2003 March 6,408,723 324,558 6,733,281 1,246,719 June 6,228,846 251,701 6,480,547 1,499,453 September 5,818,266 216,862 6,035,128 1,944,872 December 5,711,949 250,662 5,962,611 2,017,389 2004 March 5,680,105 133,824 5,813,929 2,166,071 June 5,640,743 128,141 5,768,884 2,211,116 September 5,716,957 210,068 5,927,025 2,052,975 December 5,563,469 384,320 5,947,789 2,032,211 2005 March 5,465,594 159,097 5,624,691 2,355,309 June 5,306,927 296,729 5,603,656 2,376,344 September 5,314,969 221,122 5,536,091 2,443,909 December 5,265,331 196,817 5,462,148 2,517,852 2006 March 5,049,966 321,175 5,371,141 2,608,859 June 4,930,939 387,726 5,318,665 2,661,335 September 4,923,018 282,840 5,205,858 2,774,142 December 4,894,774 154,764 5,049,538 2,930,462 2007 March 4,865,839 172,035 5,037,874 2,942,126 June 4,892,896 211,491 5,104,387 2,875,613 September 5,014,039 143,278 5,157,317 2,822,683 December 5,075,256 134,928 5,210,184 2,769,816 2008 March 5,131,254 300,830 5,432,084 2,547,916 June 5,153,074 328,514 5,481,588 2,498,412 September 5,212,933 131,617 5,344,550 2,635,450 December 5,204,756 195,377 5,400,133 2,579,867 2009 March 5,221,440 186,536 5,407,976 2,572,024 June 5,306,134 123,891 5,430,025 2,549,975 September 5,468,278 120,409 5,588,687 2,391,313 1 For data before 1998, see the August 2008 edition of Trends in Telephone Service. 2 See Notes to Table 18.6. 18 - 10 Table 18.9 Telephone Numbers Assigned for 877 Toll-Free Service 1 Total Spare Toll-Free Working Miscellaneous Toll-Free Numbers Toll-Free Toll-Free Numbers Still Year Month Numbers Numbers 2 Assigned Available 1998 June 552,037 209,967 762,004 7,217,996 September 1,072,046 206,714 1,278,760 6,701,240 December 1,567,195 235,190 1,802,385 6,177,615 1999 March 2,141,228 329,044 2,470,272 5,509,728 June 2,899,466 410,026 3,309,492 4,670,508 September 3,755,361 436,433 4,191,794 3,788,206 December 4,528,106 575,143 5,103,249 2,876,751 2000 March 5,436,297 598,702 6,034,999 1,945,001 June 6,317,507 402,858 6,720,365 1,259,635 September 6,539,180 496,015 7,035,195 944,805 December 6,391,285 719,333 7,110,618 869,382 2001 March 6,289,079 469,980 6,759,059 1,220,941 June 6,094,898 715,097 6,809,995 1,170,005 September 6,163,297 489,084 6,652,381 1,327,619 December 6,214,863 345,468 6,560,331 1,419,669 2002 March 6,174,529 340,472 6,515,001 1,464,999 June 6,016,107 267,320 6,283,427 1,696,573 September 5,656,158 275,722 5,931,880 2,048,120 December 5,448,276 421,984 5,870,260 2,109,740 2003 March 5,132,413 579,240 5,711,653 2,268,347 June 4,791,792 376,236 5,168,028 2,811,972 September 4,617,147 170,787 4,787,934 3,192,066 December 4,536,366 191,410 4,727,776 3,252,224 2004 March 4,528,716 163,856 4,692,572 3,287,428 June 4,550,870 146,826 4,697,696 3,282,304 September 4,537,840 214,197 4,752,037 3,227,963 December 4,551,486 254,082 4,805,568 3,174,432 2005 March 4,590,227 139,089 4,729,316 3,250,684 June 4,498,452 232,477 4,730,929 3,249,071 September 4,476,657 193,315 4,669,972 3,310,028 December 4,424,365 212,543 4,636,908 3,343,092 2006 March 4,387,383 178,974 4,566,357 3,413,643 June 4,227,659 203,501 4,431,160 3,548,840 September 4,216,739 221,090 4,437,829 3,542,171 December 4,158,082 191,476 4,349,558 3,630,442 2007 March 4,160,134 126,236 4,286,370 3,693,630 June 4,176,830 168,005 4,344,835 3,635,165 September 4,186,296 140,506 4,326,802 3,653,198 December 4,236,995 151,687 4,388,682 3,591,318 2008 March 4,243,519 150,600 4,394,119 3,585,881 June 4,312,293 204,414 4,516,707 3,463,293 September 4,105,708 266,286 4,371,994 3,608,006 December 4,126,424 187,099 4,313,523 3,666,477 2009 March 4,159,486 144,758 4,304,244 3,675,756 June 4,390,811 169,577 4,560,388 3,419,612 September 4,583,580 138,286 4,721,866 3,258,134 1 For data before 1998, see the August 2008 edition of Trends in Telephone Service. 2 See Notes to Table 18.6. 18 - 11 Table 18.10 Telephone Numbers Assigned for 866 Toll-Free Service Total Spare Toll-Free Working Miscellaneous Toll-Free Numbers Toll-Free Toll-Free Numbers Still Year Month Numbers Numbers 2 Assigned Available 2000 September 672,250 155,646 827,896 7,152,104 December 1,274,732 148,548 1,423,280 6,556,720 2001 March 1,652,602 361,888 2,014,490 5,965,510 June 1,944,520 362,880 2,307,400 5,672,600 September 2,256,792 308,801 2,565,593 5,414,407 December 2,416,040 307,089 2,723,129 5,256,871 2002 March 2,640,414 321,530 2,961,944 5,018,056 June 2,864,605 219,232 3,083,837 4,896,163 September 2,977,379 244,297 3,221,676 4,758,324 December 3,227,589 271,965 3,499,554 4,480,446 2003 March 3,461,686 299,700 3,761,386 4,218,614 June 3,486,674 420,477 3,907,151 4,072,849 September 3,609,244 265,446 3,874,690 4,105,310 December 3,770,595 238,641 4,009,236 3,970,764 2004 March 3,966,922 231,683 4,198,605 3,781,395 June 4,281,378 263,560 4,544,938 3,435,062 September 4,476,150 281,577 4,757,727 3,222,273 December 4,712,400 298,891 5,011,291 2,968,709 2005 March 5,015,324 267,412 5,282,736 2,697,264 June 5,047,314 487,471 5,534,785 2,445,215 September 5,259,730 352,226 5,611,956 2,368,044 December 5,467,782 271,423 5,739,205 2,240,795 2006 March 5,613,475 211,021 5,824,496 2,155,504 June 5,803,923 205,051 6,008,974 1,971,026 September 6,078,119 160,737 6,238,856 1,741,144 December 6,201,362 212,896 6,414,258 1,565,742 2007 March 6,355,241 207,073 6,562,314 1,417,686 June 6,555,756 240,460 6,796,216 1,183,784 September 6,685,581 219,067 6,904,648 1,075,352 December 6,853,093 176,023 7,029,116 950,884 2008 March 7,001,587 191,687 7,193,274 786,726 June 7,192,852 225,175 7,418,027 561,973 September 7,304,334 284,988 7,589,322 390,678 December 7,493,634 262,118 7,755,752 244,248 2009 March 7,752,906 193,240 7,946,146 33,854 June 7,766,358 185,149 7,951,507 28,493 September 7,702,169 165,567 7,867,736 112,264 2 See Notes to Table 18.6. 18 - 12 Table 18.11 Number of Digits Necessary to Dial Local and Toll Calls from Wireline Phones Local Calls Toll Calls Toll Calls Within Same Between Within Same Between Require State Area Code Area Codes Area Code Area Codes Dialing 1 + Alabama 7 1 10 2 1 + 10 1 + 10 Yes Alaska 7 1 + 10 1 + 10 1 + 10 Yes Arizona 7 10 1 + 10 1 + 10 Yes Arkansas 7 10 1 + 10 1 + 10 Yes California 7 3 1 + 10 7 3 1 + 10 No Colorado 7 4 10 1 + 10 1 + 10 Yes Connecticut 7 5 10 1 + 10 1 + 10 Yes Delaware 7 10 1 + 10 1 + 10 Yes District of Columbia 7 10 NA 1 + 10 Yes Florida 7 6 10 1 + 10 1 + 10 Yes Georgia 7 7 10 1 + 10 1 + 10 Yes Hawaii 7 NA 1 + 10 1 + 10 Yes Idaho 7 7 1 + 10 1 + 10 Yes Illinois 7 8 1 + 10 1 + 10 1 + 10 Yes Indiana 7 10 1 + 10 1 + 10 Yes Iowa 7 10 1 + 10 1 + 10 Yes Kansas 7 10 1 + 10 1 + 10 Yes Kentucky 7 10 9 1 + 10 1 + 10 Yes Louisiana 7 10 1 + 10 1 + 10 Yes Maine 7 1 + 10 7 1 + 10 No Maryland 10 10 1 + 10 1 + 10 Yes Massachusetts 10 10 10 1 + 10 1 + 10 Yes Michigan 7 11 10 1 + 10 1 + 10 Yes Minnesota 7 10 12 1 + 10 1 + 10 Yes Mississippi 7 13 10 1 + 10 1 + 10 Yes Missouri 7 14 10 1 + 10 1 + 10 Yes Montana 7 7 1 + 10 1 + 10 Yes Nebraska 7 15 7 15 1 + 10 1 + 10 Yes Nevada 7 10 1 + 10 1 + 10 Yes New Hampshire 7 1 + 10 7 1 + 10 No New Jersey 10 16 1 + 10 10 16 1 + 10 No New Mexico 7 10 1 + 10 1 + 10 Yes New York 7 17 1 + 10 7 17 1 + 10 No North Carolina 7 18 10 1 + 10 1 + 10 Yes North Dakota 7 7 1 + 10 1 + 10 Yes Ohio 7 19 10 1 + 10 1 + 10 Yes Oklahoma 7 7 1 + 10 1 + 10 Yes Oregon 10 20 10 1 + 10 1 + 10 Yes Pennsylvania 10 21 1 + 10 22 10 21 1 + 10 22 No Rhode Island 7 1 + 10 7 1 + 10 No South Carolina 7 10 1 + 10 1 + 10 Yes South Dakota 7 7 1 + 10 1 + 10 Yes Tennessee 7 10 23 1 + 10 1 + 10 Yes Texas 7 24 10 1 + 10 1 + 10 Yes Utah 10 25 10 25 1 + 10 1 + 10 Yes Vermont 7 1 + 10 1 + 10 1 + 10 Yes Virginia 7 26 10 1 + 10 1 + 10 Yes Washington 7 27 10 1 + 10 1 + 10 Yes West Virginia 10 10 1 + 10 1 + 10 Yes Wisconsin 7 28 1 + 10 1 + 10 1 + 10 Yes Wyoming 7 7 1 + 10 1 + 10 Yes NA - Not Applicable. Source: NPA database. The database is available at www.nanpa.com/area_codes/index.html. (As of November 2009) 18- 13 Notes to Table 18.11 1 In area code 659 and 938, 10-digit dialing is used. 2 In area code 659 and 907, 1+10-digit dialing is used. 3 In area codes 310, 442, 424, 657, 714, 747, 760 and 818, 1+10-digit dialing is used. 4 In area codes 303 and 720, 10-digit dialing is used. 5 In area codes 475 and 959, 10-digit dialing is used. 6 In area codes 305, 321, 407, 689, 754, 786, and 954, 10-digit dialing is used. 7 In area codes 404, 470, 678, 762, 706 and 770, 10-digit dialing is used. 8 In area codes 224, 331, 464, 447, 630, 779, 815, 847 and 872, 1+ 10-digit dialing is used. In addition, in area code 770, 10-digit dialing is used. 9 In area codes 270, 364 and 502, 7-digit dialing is used. 10 In area code 413, 7-digit dialing is used. 11 In area codes 248, 679 and 947, 10-digit dialing is used. 12 In area codes 218, 320, and 507, 7-digit dialing is used. 13 In area codes 601 and 769, 10-digit dialing is used. 14 In area codes 557 and 975, 10-digit dialing is used. 15 In area codes 531, 10-digit dialing is used. 16 In area codes 609, 856, and 908, 7-digit dialing is used. 17 In area codes 212, 347, 646, 718, and 917, 1+10 digit dialing is used. 18 In area codes 704, 980 and 984, 10-digit dialing is used. 19 In area codes 234, 283, 330, 380, 419, and 567, 10-digit dialing is used. 20 In area code 541, 7-digit dialing is used. 21 In area codes 570, 717, and 814, 7-digit dialing is used. 22 In some area codes, local calls to some other area codes may be dialed using 10 digits. 23 In area codes 615 and 931, 7-digit dialing is used. 24 In area codes 214, 281, 430, 469, 682, 713, 817, 832, 903, and 972, 10-digit dialing is used. 25 In area code 435, 7-digit dialing is used. 26 In area codes 571 and 703, 10-digit dialing is used. 27 In area code 564, 10-digit dialing is used. 28 In area code 274 and 534, 10-digit dialing is used. 18 - 14 19 - 1 19 Universal Service 1. Overview There are four universal service support mechanisms: 1) High Cost, 2) Low Income, including Lifeline and Link-Up, 3) Schools and Libraries, and 4) Rural Health Care. 1 High Cost support enables carriers with above-average costs to recover some of these costs from the support mechanisms, allowing these carriers to lower their end-user rates and/or to receive less money from state universal service support mechanisms. The Lifeline program promotes increased telephone subscribership by providing low- income households with discounts on the monthly cost of telephone service. The Link-Up America program promotes telephone subscribership by helping low-income households pay the initial costs of commencing telephone service. Schools and Libraries support enables eligible schools and libraries to obtain eligible services, including telecommunications services, at discounted rates. Rural Health Care support allows rural health care providers to purchase telecommunications services at comparable urban rates. Table 19.1 shows universal service support disbursements for 2007 and 2008. 2 Chart 19.1 shows this information graphically for 2008. Table 19.2 and Chart 19.2 show the type of service providers that received universal service support in 2008. 2. High Cost The High Cost support mechanisms include embedded high-cost loop support (HCLS), 3 safety net additive support (SNAS), safety valve support (SVS), local switching support (LSS), forward-looking high-cost model support (HCMS), interstate access support (IAS) for price-cap carriers, and interstate common line support (ICLS) for rate-of-return carriers. 4 HCLS provides assistance to companies with above average non-traffic-sensitive local loop costs – terminology that refers to the costs of providing loops connecting customers and 1 Additional information on universal service mechanisms is available in the Universal Service Monitoring Report (December 2009). See http://www.fcc.gov/wcb/iatd/monitor.html. 2 The figures used in this table are for the calendar year and include disbursements that were paid out in 2007 and 2008. 3 This was formerly referred to as the Universal Service Fund, and still bears that name in the Commission rules. It is now referred to as high-cost loop support to avoid confusion with the new, more comprehensive universal service support mechanisms that the Commission developed to implement the 1996 Act. See 47 C.F.R. ง 36.601. 4 Prior to July 1, 2004, rate-of-return carriers were eligible to receive long-term support (LTS). Since that date, LTS was merged into ICLS. 19 - 2 their serving telephone company central office. In addition, SNAS provides assistance to companies that have large increases in telecommunications plant in service. SVS provides additional assistance to rural carriers that make substantial investment after acquiring exchanges. LSS provides assistance to LECs with study areas of 50,000 or fewer access lines to help defray their higher per-line switching costs. HCMS provides assistance for non-rural carriers based on their forward-looking costs of providing supported services as determined by the Commission's cost model. The IAS mechanism provides support to price-cap carriers to replace the implicit support previously collected through interstate access charges. The ICLS mechanism converts support implicit in the access rate structure of rate-of-return carriers to explicit and portable support. ICLS recovers any shortfall between the allowed common line revenues of rate of return carriers and their subscriber line charge revenues. As noted above, LTS was merged into ICLS as of July 1, 2004. Table 19.3 shows HCLS, LTS, LSS, HCMS, IAS, ICLS, SNAS, and SVS payments from 1986 to 2008. Table 19.4 shows payments by state for 2007 and 2008. Table 19.5 shows high-cost support payments to incumbent LECs and competitive eligible telecommunications carriers (CETCs) from 1996 to 2008. Chart 19.4 shows the percent of high-cost support received by CETCs. Table 19.6 shows high-cost support payments by state for 2008 to ILECs and CETCs and also to rural and non-rural carriers. 3. Low-Income Support: Lifeline and Link-Up The Lifeline program promotes increased telephone subscribership by providing low- income households with discounts on the monthly cost of telephone service. The Link-Up America program increases telephone subscribership by helping low-income households pay the initial costs of commencing telephone service. The Lifeline program was created in 1984, and the Link-Up program was created in 1987. For both of these programs, the rules were later modified to make the distribution of low- income support competitively and technologically neutral by allowing all eligible telecommunications carriers, including wireless carriers, to receive support for providing Lifeline and Link-Up service. In June 2000, the Commission further expanded the Lifeline and Link-Up programs to address the needs of households on tribal lands. 5 Eligibility requirements for Lifeline and Link-Up vary from state to state. In a state that has its own Lifeline program, the state may create its own eligibility requirements for the federal Lifeline program. Those criteria must be based solely on income or factors directly related to income. In addition, a state commission must ensure that its qualification criteria are reasonably designed to reach eligible residents of tribal lands within the state. In those states that do not have their own Lifeline program, known as federal default states, Lifeline eligibility requirements are set by the FCC. In federal default states, households must certify that they participate in at least one of the following seven federal programs: Medicaid, food stamps, Supplemental Security Income (SSI), federal public housing assistance, the Low-Income Home 5 Federal-State Joint Board on Universal Service; Promoting Deployment and Subscribership in Unserved and Underserved Areas, Including Tribal and Insular Areas, Twelfth Report and Order, and Further Notice of Proposed Rulemaking, CC Docket No. 96-45, FCC 00-208, 15 FCC Rcd 12,208 (2000). 19 - 3 Energy Assistance Program (LIHEAP), the National School Lunch Program’s free lunch program, or Temporary Assistance to Needy Families. By June 2005, consumers may also be able to qualify if their income is at or below 135% of the federal poverty guidelines. Eligible consumers living on tribal lands can receive federal Lifeline support if they (a) meet their state’s Lifeline eligibility requirements; (b) certify that they are enrolled in one of the seven federal programs listed above; or (c) participate in one of the following federal assistance programs: Bureau of Indian Affairs (BIA) general assistance program, tribally administered Temporary Assistance for Needy Families (TANF), or Head Start (meeting the income- qualifying standard). Under the Commission’s rules, there are four tiers of federal Lifeline support. 6 The first tier represents a monthly waiver of the federal subscriber line charge, which ranges between $3.50 and $6.50, varying by state and the carrier providing service. Second-tier support is an additional $1.75 per-month reduction in the basic local rate. All Lifeline subscribers receive at least the first two tiers of federal support. The third tier of federal support is based on the amount of additional support mandated by the relevant state or otherwise provided by carriers. Federal support is available to match one-half of the tier-three support provided, up to a maximum of $1.75 in federal support. Eligible subscribers living on tribal lands also qualify to receive a fourth tier of Lifeline support. Tier-four support provides up to an additional $25 per month although all subscribers on tribal lands must pay at least $1 per month. The Commission’s Link-Up program provides qualified low-income individuals with a federally financed 50% discount on initial connection charges up to $30. Link-Up beneficiaries also may choose to schedule deferred payments of up to $200 over a one-year period, with the customary interest charges paid through federal support. Eligible subscribers living on tribal lands may receive an additional discount of up to $70 to cover 100% of the charges between $60 and $130. Table 19.7 shows the minimum, maximum and average monthly Lifeline support as of March 31, 2008, by state. The table contains both federal and state support, and indicates the additional contribution from the federal program to reduce local rates where states have authorized statewide or carrier specific intrastate local rate reductions. Table 19.8 contains historical Lifeline subscriber and Link-Up beneficiary data for 1987 through 2008. Table 19.9 present tribal and non-tribal lifeline subscriber and Link-Up beneficiary data by state for 2007 and 2008. Table 19.10 and Chart 19.5 contain annual historical low-income support payments for the years 1988 through 2008. Table 19.11 shows low-income support payments by state or jurisdiction for 2007 and 2008. Table 19.12 shows low-income support payments to ILECs and CETCs from 1996 through 2008. Chart 19.6 shows the percent of low-income support received by CETCs. 6 In addition, the Lifeline program compensates eligible telecommunication carriers for toll limitation service (TLS). 19 - 4 4. Schools and Libraries The schools and libraries support mechanism also known as the “E Rate” enables schools and libraries to obtain eligible services at discounted rates. Eligible schools and libraries receive telecommunications services, Internet access, and internal connections at discounts that range from 20 percent to 90 percent. The level of the discount is generally based on the percentage of students eligible for the national school lunch program, or in the case of libraries, the percentage of students eligible for the national school lunch program in the school district where the library is located. In addition, schools and libraries located in rural areas receive an additional discount. Table 19.13 shows funding commitments and disbursements to schools and libraries by funding year since 1998. The commitments and disbursements are shown by the type of service funded (internal connections, Internet access, and telecommunications). Chart 19.7 graphically shows the total schools and libraries mechanism’s funding commitments and disbursements. Table 19.14 shows, on a state-by-state basis, funding commitments to schools and libraries for the July 1, 2006 through June 30, 2007 Funding Year. 5. Rural Health Care The Rural Health Care support mechanism enables health care providers in rural areas to pay no more than their urban counterparts for similar telecommunications services necessary for the provision of health care. Eligible rural health care providers can also receive a 25% discount off the monthly cost of Internet access reasonably related to the health care needs of the facility. Additionally, rural health care providers in entirely rural states are eligible to receive a 50% discount off the monthly cost of advanced telecommunications and information services reasonably related to the health care needs of the facility. Further, mobile rural health care providers utilizing satellite service can receive support for the difference between the rate for the satellite service and the rate for an urban wireline service with a similar bandwith. Table 19.15 and Chart 19.8 show rural health care fund disbursements by service speed since 1998. Table 19.16 shows rural health care fund disbursements by service speed and on a state-by-state basis for the funding period July 1, 2006 through June 30, 2007. 6. Contributions to the Universal Service Fund Carriers contribute to universal service support mechanisms based on interstate and international end-user revenues. Since November 1999, all contributions to the USF are based on interstate end-user revenues. Table 19.17 shows interstate and intrastate contribution rates since the first quarter of 1998. Table 19.18 shows changes in the shares of contributions over time by type of service provider. Shares have changed because of differential pricing, growth trends, mergers, the removal of aDSL from the contribution base and wireless carriers now reporting greater shares of interstate revenue. Mechanism Percent of Total Percent of Total High-Cost Support $4,287 61.6 % $4,478 63.0 % High-Cost Loop Support 1,402 20.2 1,457 20.5 Safety Net Additive Support 38 0.6 48 0.7 Safety-Valve 3 0.0 2 0.0 High-Cost Model Support 346 5.0 351 4.9 Long Term Support 0 0.0 0 0.0 Interstate Common Line Support 1,392 20.0 1,621 22.8 Interstate Access Support 645 9.3 585 8.2 Local Switching Support 460 6.6 416 5.9 823 11.8 819 11.5 School and Libraries 1,808 26.0 1,760 24.8 Rural Health Care 37 0.5 49 0.7 All Universal Service Support $6,955 100.0 % $7,106 100.0 % Table 19.1 Universal Service Support Mechanisms: 2007 & 2008 (Dollars in Millions) Source: Universal Service Administration Company (USAC). Disbursements 2007 2008 Notes: Figures may not add due to rounding. The figures used in this table are for the calendar year and include disbursements that were committed over several years but paid out in the respective calendar year (2007 or 2008). In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. Disbursements Distribution of Universal Service Payments: 2008 Chart 19.1 Low-Income Support Low Income 11.5% High Cost 63.0% Rural Health Care 0.7% Schools & Libraries 24.8% 19 - 5 High-Cost Low Income Rural Health Care Schools and Libraries 6 Total Incumbent Local Exchange Carriers $3,093,299 $676,021 $7,266 $662,445 $4,439,031 62.4 % Non-Traditional Providers 1 $0 $0 $1,416 $301,003 302,419 4.3 Wireless Providers 2 $1,361,321 $143,274 $2,629 $146,312 1,653,537 23.2 Competitive Local Exchange Carriers 3 $23,166 $0 $5,129 $424,397 452,692 6.4 Internet Service Providers $0 $0 $541 $107,240 107,781 1.5 Long Distance Providers 4 $0 $0 $29,972 $91,802 121,774 1.7 Other Providers 5 $0 $0 $2,505 $35,264 37,769 0.5 Total $4,477,786 $819,295 $49,458 $1,768,464 $7,115,002 100.0 % 4 Long distance providers include interexchange, operator service, toll resale, pre-paid card and other toll providers. Source: Compiled from data provided to the FCC by Universal Service Adminstrative Company (USAC). 6 Schools and Libraries figure in Table 19.1 and 19.2 are slightly different. The figure in 19.1 is net authorizations (net of returned funds) and the figure in 19.2 is gross disbursements. Universal Service Support Received by Service Provider Type: 2008 5 Other providers' services include paging and messaging, payphone service provider, A38private service and satellite service. Percent of Total Table 19.2 Universal Service Support Received by Service Provider Type: 2008 (Dollars in Thousands) Chart 19.2 1 Non-traditional providers provide eligible software, hardware, and network devices. 3 Competitive local exchange carriers include competitive access providers, local resale, other local and shared tenant service providers. All CETC disbursement from Low-Income are assigned to wireless providers. 2 Wireless providers include cellular, PCS, SMR, wireless data and other mobile providers. All CETC disbursement from Low- Income are assigned to wireless providers. Incumbent Local Exchange Carriers 63.9% Non-Traditional Providers 4.3% Wireless Providers 23.2% Internet Service Providers 1.5% Competitive Local Exchange Carriers 6.4% Long Distance Providers 1.7% Other Providers 0.5% 19 - 6 Year High-Cost Loop Support Safety Net Additive Support Safety Valve Support High-Cost Model Support Long-Term Support* Interstate Common Line Support Interstate Access Support Local Switching Support Total Support 1986 $56 - - - - - - - $56 1987 126 - - - - - - - 126 1988 183 - - - - - - - 183 1989 265 - - - $219 - - - 483 1990 339 - - - 263 - - - 602 1991 485 - - - 272 - - - 757 1992 609 - - - 306 - - - 915 1993 705 - - - 323 - - - 1,028 1994 725 - - - 347 - - - 1,072 1995 750 - - - 382 - - - 1,132 1996 763 - - - 426 - - - 1,188 1997 794 - - - 470 - - - 1,263 1998 827 - - - 473 - - $390 1,690 1999 864 - - - 473 - - 380 1,718 2000 874 - - $219 478 - $279 385 2,235 2001 927 - - 206 492 - 577 390 2,592 2002 1,045 - - 233 493 $173 615 376 2,935 2003 1,085 $9 $0 234 504 415 622 396 3,265 2004 1,137 12 0 273 275 716 642 414 3,468 2005 1,219 15 4 292 0 1,149 691 426 3,796 2006 1,309 29 1 358 4 1,299 681 428 4,110 2007 1,402 38 3 346 0 1,419 645 435 4,290 2008 1,457 48 2 351 0 1,621 585 416 4,478 Note: Detail may not appear to add to totals due to rounding. - Support mechanism did not exist in that year. * Long-Term Support was merged into Interstate Common Line Support in July 2004. Values in subsequent years are adjustments to payments made in previous years. Sources: National Exchange Carrier Association (1986-1997), Universal Service Administrative Company (1998-2008). Total High-Cost Support Fund Payments (In Millions of Dollars) Table 19.3 High-Cost Support Fund Payment History Chart 19.3 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Millions of D o llar s 19 - 7 High-Cost Loop Support Safety Net Additive Support Safety Valve Support High-Cost Model Support Long-Term Loop Support Interstate Common Line Support Interstate Access Support Local Switching Support Total Support Alabama $19,813 $444 $0 $44,671 $0 $20,475 $20,269 $5,997 $111,668 Alaska 69,647 821 0 0 0 73,029 0 16,627 160,123 American Samoa -2 0 0 0 0 2,196 0 961 3,155 Arizona 28,894 366 0 0 0 12,734 19,899 10,466 72,358 Arkansas 67,830 447 0 0 0 48,783 165 8,648 125,874 California 34,513 264 0 0 0 22,590 40,628 4,930 102,924 Colorado 36,580 128 0 0 1 21,354 18,641 4,768 81,471 Connecticut 0 0 0 0 0 0 531 0 531 Delaware 0 0 0 0 0 0 245 0 245 District of Columbia 0 0 0 0 0 0 0 0 0 Florida 10,719 0 0 0 0 11,035 59,948 3,822 85,525 Georgia 35,824 895 0 0 0 43,559 23,574 12,265 116,117 Guam 1,440 0 0 0 0 10,854 0 0 12,294 Hawaii 30,201 0 0 0 0 17,840 2,561 2,294 52,896 Idaho 21,210 675 0 0 0 10,802 15,467 7,000 55,154 Illinois 15,429 703 0 0 0 25,106 10,999 10,277 62,515 Indiana 17,983 761 0 0 0 20,543 22,851 9,381 71,520 Iowa 36,210 4,109 15 0 0 45,064 8,077 27,955 121,429 Kansas 126,593 3,338 0 0 0 61,945 6,111 16,945 214,932 Kentucky 29,938 632 0 16,827 0 26,659 17,392 6,102 97,550 Louisiana 97,899 1,200 0 0 0 40,559 13,412 6,958 160,028 Maine 8,287 109 0 2,117 0 14,420 95 8,606 33,634 Maryland 252 91 0 0 0 890 2,492 637 4,362 Massachusetts -1 13 0 0 0 234 1,660 553 2,460 Michigan 29,077 178 0 0 0 23,581 674 11,345 64,855 Minnesota 49,390 3,346 23 0 0 52,099 3,897 21,362 130,116 Mississippi 34,538 633 0 197,320 0 18,441 24,210 5,086 280,229 Missouri 46,400 1,391 0 0 0 33,734 9,462 7,126 98,112 Montana 26,247 214 0 20,580 0 22,231 864 7,108 77,243 Nebraska 33,029 1,107 0 11,094 0 31,422 9,268 19,286 105,206 Nevada 6,306 277 0 0 0 5,711 10,376 6,372 29,042 New Hampshire 275 32 0 0 0 2,738 1,835 3,751 8,631 New Jersey 0 0 0 0 0 237 270 629 1,136 New Mexico 29,496 184 0 0 0 18,540 10,642 10,585 69,448 New York 6,415 1,104 0 0 0 12,174 18,234 13,868 51,795 North Carolina 12,529 0 0 0 0 35,814 29,047 6,043 83,433 North Dakota 27,579 1,684 95 0 0 36,519 962 16,006 82,845 Northern Mariana Islands 0 0 0 0 0 0 444 1,082 1,526 Ohio 9,664 1,624 0 0 0 12,662 12,450 4,187 40,587 Oklahoma 61,814 1,822 0 0 0 47,207 2,361 17,060 130,265 Oregon 28,239 417 0 0 0 22,323 20,134 8,986 80,098 Pennsylvania 2,004 69 0 0 0 30,702 21,718 5,031 59,524 Puerto Rico 0 0 0 0 0 160,755 0 0 160,755 Rhode Island 0 0 0 0 0 0 31 0 31 South Carolina 23,041 1,751 0 0 0 39,685 11,175 5,161 80,813 South Dakota 40,116 2,430 116 2,445 0 34,498 31 14,796 94,432 Tennessee 12,294 504 0 0 0 23,145 9,793 6,396 52,131 Texas 114,466 805 0 0 0 67,840 44,274 19,058 246,443 Utah 6,298 111 159 0 0 8,748 2,535 4,632 22,482 Vermont 6,950 451 0 9,881 0 7,427 2,400 3,943 31,053 Virgin Islands 11,136 0 0 0 0 12,127 0 0 23,263 Virginia 3,584 324 0 0 0 8,099 61,719 5,360 79,087 Washington 30,202 51 0 0 0 31,880 25,637 7,377 95,147 West Virginia 9,863 121 0 27,594 0 2,662 19,473 3,565 63,279 Wisconsin 36,896 2,519 2,562 0 0 72,218 256 27,241 141,691 Wyoming 15,373 318 0 13,734 0 13,542 5,802 7,457 56,225 Total $1,402,482 $38,462 $2,968 $346,264 $1 $1,419,433 $644,991 $435,088 $4,289,688 Source: The data are derived from individual company payments reported on the USAC web site. Table 19.4 High-Cost Support Payments by State: 2007 (In Thousands of Dollars) Note : The reason some values are negative is that support amounts include prior period adjustments. 19 - 8 High-Cost Loop Support Safety Net Additive Support Safety Valve Support High-Cost Model Support Long-Term Loop Support Interstate Common Line Support Interstate Access Support Local Switching Support Total Support Alabama $19,809 $185 $0 $43,355 $0 $19,646 $19,093 $5,715 $107,802 Alaska 70,769 634 0 0 0 75,219 0 15,561 162,184 American Samoa 0 0 0 0 0 2,450 0 1,536 3,986 Arizona 29,070 511 0 0 0 13,100 17,893 9,282 69,856 Arkansas 80,985 369 0 0 0 60,956 137 11,072 153,518 California 35,386 344 0 0 0 23,991 40,543 4,673 104,936 Colorado 35,109 154 0 0 0 23,022 17,669 4,752 80,706 Connecticut 0 0 0 0 0 -185 477 -112 180 Delaware 0 0 0 0 0 0 213 0 213 District of Columbia 0 0 0 0 0 0 0 0 0 Florida 10,182 0 0 0 0 9,847 53,554 3,710 77,293 Georgia 36,629 1,191 0 0 0 59,457 22,865 14,022 134,164 Guam 1,471 0 0 0 0 14,758 0 0 16,229 Hawaii 37,545 0 0 0 0 20,022 2,081 2,211 61,859 Idaho 20,780 422 0 0 0 11,933 14,397 6,365 53,898 Illinois 20,130 617 0 0 0 27,869 11,077 11,322 71,016 Indiana 19,135 895 0 0 0 25,292 19,455 9,218 73,994 Iowa 38,367 3,352 9 0 0 55,293 11,697 24,424 133,141 Kansas 128,865 2,681 550 0 0 68,210 6,450 14,499 221,255 Kentucky 36,123 1,492 0 16,146 0 28,516 15,903 5,908 104,088 Louisiana 95,217 1,940 0 0 0 43,526 13,680 5,972 160,335 Maine 6,822 472 0 2,185 0 15,409 54 7,508 32,450 Maryland 242 0 0 0 0 885 2,346 599 4,072 Massachusetts 11 42 0 0 0 174 1,502 635 2,365 Michigan 26,842 178 0 0 0 25,597 720 10,660 63,996 Minnesota 47,964 2,627 14 0 0 60,625 3,821 18,913 133,964 Mississippi 34,813 991 0 203,920 0 21,148 23,319 4,935 289,126 Missouri 53,128 1,547 0 0 0 38,960 9,850 7,046 110,530 Montana 27,942 213 0 18,993 0 24,325 827 7,017 79,317 Nebraska 36,373 753 0 10,997 0 35,624 8,631 21,311 113,689 Nevada 5,079 0 0 0 0 6,686 10,088 5,970 27,823 New Hampshire 228 33 0 0 0 3,543 848 4,011 8,662 New Jersey 0 0 0 0 0 333 253 432 1,018 New Mexico 28,578 192 0 0 0 16,905 12,335 7,214 65,224 New York 5,461 2,023 0 0 0 12,836 13,820 13,514 47,654 North Carolina 12,359 0 0 0 0 34,770 26,389 4,751 78,269 North Dakota 30,686 5,349 74 0 0 40,760 822 15,814 93,505 Northern Mariana Islands 0 0 0 0 0 0 248 473 722 Ohio 8,201 641 0 0 0 16,124 11,112 3,896 39,973 Oklahoma 67,559 6,368 0 0 0 52,750 1,945 16,314 144,936 Oregon 29,811 524 0 0 0 25,393 18,288 9,940 83,955 Pennsylvania 1,826 44 0 0 0 28,216 20,158 4,092 54,335 Puerto Rico 0 0 0 0 0 215,609 0 0 215,609 Rhode Island 0 0 0 0 0 0 31 0 31 South Carolina 30,392 1,408 0 0 0 45,187 10,077 5,408 92,472 South Dakota 42,607 2,288 104 2,381 0 35,343 111 12,413 95,246 Tennessee 13,383 2,136 0 0 0 24,825 9,353 6,124 55,821 Texas 116,007 675 0 0 0 77,760 46,041 19,200 259,685 Utah 5,186 41 81 0 0 8,997 2,358 3,785 20,447 Vermont 5,581 460 0 9,606 0 8,530 1,357 3,550 29,084 Virgin Islands 8,994 0 0 0 0 12,135 0 0 21,129 Virginia 3,024 259 0 0 0 9,277 56,999 5,029 74,587 Washington 31,373 95 0 0 0 39,257 -1,811 8,128 77,042 West Virginia 8,650 81 0 29,961 0 3,304 19,997 3,331 65,325 Wisconsin 34,873 3,115 1,011 0 0 81,715 181 25,463 146,357 Wyoming 17,001 186 0 13,026 148 14,671 5,363 8,319 58,714 Total $1,456,567 $47,528 $1,842 $350,571 $148 $1,620,591 $584,614 $415,924 $4,477,786 Source: The data are derived from individual company payments reported on the USAC web site. Table 19.4 - Continued High-Cost Support Payments by State: 2008 (In Thousands of Dollars) Note : The reason some values are negative is that support amounts include prior period adjustments. 19 - 9 Table 19.5 ILECs CETCs Total 1996 $1,188 $0 $1,188 0.0 % 1997 1,263 0 1,263 0.0 1998 1,690 0 1,690 0.0 1999 1,717 1 1,718 0.0 2000 2,233 1 2,235 0.1 2001 2,575 17 2,592 0.7 2002 2,889 46 2,935 1.6 2003 3,136 130 3,265 4.0 2004 3,153 316 3,468 9.1 2005 3,169 628 3,796 16.5 2006 3,143 967 4,110 23.5 2007 3,112 1,177 4,290 27.4 2008 3,093 1,384 4,478 30.9 High-Cost Support Received by Incumbent LECs and CETCs (In Millions of Dollars) Notes: ILECs is an abbreviation for incumbent local exchange carriers. CETCs is an abbreviation for competitive eligible telecommunications carriers. CETCs include both wireless and wireline carriers. Percent of High-Cost Support Received by CETCs Chart 19.4 Percent CETCs Sources: National Exchange Carrier Association (1996-1997). Universal Service Administrative Company (1998-2008). 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 19 - 10 ILECs 1 CETCs 2 Rural Carriers Non-Rural Carriers Total Alabama $89,052 $18,750 17.4 % $43,321 $64,481 59.8 % $107,802 Alaska 87,645 74,539 46.0 119,195 42,989 26.5 162,184 American Samoa 673 3,313 83.1 1,858 2,128 53.4 3,986 Arizona 57,388 12,468 17.8 54,032 15,824 22.7 69,856 Arkansas 91,833 61,686 40.2 129,824 23,694 15.4 153,518 California 104,652 284 0.3 65,873 39,064 37.2 104,936 Colorado 70,409 10,297 12.8 59,421 21,285 26.4 80,706 Connecticut 180 0 0.0 -298 477 266.5 180 Delaware 213 0 0.0 0 213 100.0 213 District of Columbia 0 0 NA 0 0 NA 0 Florida 62,842 14,451 18.7 38,501 38,792 50.2 77,293 Georgia 110,709 23,455 17.5 102,209 31,954 23.8 134,164 Guam 7,121 9,108 56.1 7,870 8,359 51.5 16,229 Hawaii 28,207 33,653 54.4 48,383 13,476 21.8 61,859 Idaho 46,202 7,697 14.3 51,185 2,714 5.0 53,898 Illinois 58,367 12,649 17.8 57,449 13,567 19.1 71,016 Indiana 66,440 7,553 10.2 54,636 19,358 26.2 73,994 Iowa 68,151 64,990 48.8 99,597 33,544 25.2 133,141 Kansas 135,791 85,463 38.6 193,818 27,437 12.4 221,255 Kentucky 75,277 28,812 27.7 64,302 39,786 38.2 104,088 Louisiana 94,023 66,312 41.4 129,232 31,103 19.4 160,335 Maine 21,209 11,241 34.6 24,927 7,523 23.2 32,450 Maryland 4,072 0 0.0 1,726 2,346 57.6 4,072 Massachusetts 2,365 0 0.0 863 1,502 63.5 2,365 Michigan 41,667 22,330 34.9 54,271 9,725 15.2 63,996 Minnesota 83,982 49,982 37.3 110,440 23,524 17.6 133,964 Mississippi 127,609 161,517 55.9 52,753 236,373 81.8 289,126 Missouri 92,141 18,390 16.6 99,512 11,019 10.0 110,530 Montana 66,366 12,951 16.3 56,751 22,566 28.5 79,317 Nebraska 54,168 59,520 52.4 76,634 37,055 32.6 113,689 Nevada 20,979 6,844 24.6 18,279 9,544 34.3 27,823 New Hampshire 8,380 281 3.2 7,749 913 10.5 8,662 New Jersey 1,018 0 0.0 1,018 0 0.0 1,018 New Mexico 49,996 15,228 23.3 53,560 11,664 17.9 65,224 New York 44,719 2,936 6.2 38,960 8,694 18.2 47,654 North Carolina 68,314 9,954 12.7 53,917 24,352 31.1 78,269 North Dakota 47,036 46,469 49.7 72,337 21,168 22.6 93,505 Northern Mariana Islands 276 446 61.8 552 170 23.5 722 Ohio 39,973 0 0.0 33,869 6,104 15.3 39,973 Oklahoma 112,897 32,039 22.1 131,259 13,677 9.4 144,936 Oregon 59,804 24,151 28.8 60,533 23,422 27.9 83,955 Pennsylvania 52,805 1,531 2.8 41,703 12,632 23.2 54,335 Puerto Rico 59,557 156,051 72.4 0 215,609 100.0 215,609 Rhode Island 31 0 0.0 0 31 100.0 31 South Carolina 85,924 6,549 7.1 81,005 11,467 12.4 92,472 South Dakota 58,389 36,857 38.7 78,923 16,323 17.1 95,246 Tennessee 54,716 1,105 2.0 48,275 7,546 13.5 55,821 Texas 223,234 36,451 14.0 217,771 41,913 16.1 259,685 Utah 20,083 364 1.8 19,075 1,372 6.7 20,447 Vermont 22,713 6,372 21.9 16,349 12,736 43.8 29,084 Virgin Islands 19,737 1,392 6.6 19,945 1,184 5.6 21,129 Virginia 59,484 15,103 20.2 26,715 47,872 64.2 74,587 Washington 64,379 12,663 16.4 65,661 11,381 14.8 77,042 West Virginia 48,114 17,210 26.3 21,995 43,329 66.3 65,325 Wisconsin 82,563 63,794 43.6 108,342 38,015 26.0 146,357 Wyoming 39,426 19,288 32.9 36,352 22,362 38.1 58,714 Total $3,093,299 $1,384,487 30.9 % $3,052,428 $1,425,357 31.8 $4,477,786 Figures may not add up due to rounding. NA - Not Applicable 1 ILECs is an abbreviation for incumbent local exchange carriers. 2 CETCs is an abbreviation for competitive eligible telecommunications carriers. CETCs include both wireline and wireless carriers. Source: Universal Service Administrative Company. Percent CETCs 2 Percent Non- Rural Carriers Table 19.6 High-Cost Support by Type of Carriers: 2008 (In Thousands of Dollars) 19 - 11 Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Alabama $8.25 $8.25 $8.25 $1.18 $3.50 $3.39 $0.59 $1.75 $1.70 $8.84 $10.00 $9.95 $10.02 $13.50 $13.34 Alaska 8.25 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 10.00 10.00 10.00 13.50 13.50 13.50 American Samoa 8.25 8.25 8.25 0.00 0.00 0.00 0.00 0.00 0.00 8.25 8.25 8.25 8.25 8.25 8.25 Arizona 8.05 8.25 8.20 0.00 3.50 2.56 0.00 1.75 1.28 8.05 10.00 9.48 8.05 13.50 12.04 Arkansas 5.25 8.25 7.45 0.00 3.50 1.69 0.00 1.75 0.84 5.25 10.00 8.29 5.25 13.50 9.98 California 3.98 8.25 6.62 2.00 3.50 2.56 1.00 1.75 1.28 4.98 10.00 7.90 6.98 13.50 10.45 Colorado 8.25 8.25 8.25 0.00 3.50 3.48 0.00 1.75 1.74 8.25 10.00 9.99 8.25 13.50 13.46 Connecticut 7.49 7.49 7.49 1.18 1.18 1.18 0.59 0.59 0.59 8.08 8.08 8.08 9.26 9.26 9.26 Delaware 8.20 8.20 8.20 0.00 0.00 0.00 0.00 0.00 0.00 8.20 8.20 8.20 8.20 8.20 8.20 District of Columbia 5.61 5.61 5.61 3.50 3.50 3.50 1.75 1.75 1.75 7.36 7.36 7.36 10.86 10.86 10.86 Florida 8.06 8.25 8.25 0.00 3.50 3.50 0.00 1.75 1.75 8.06 10.00 9.99 8.06 13.50 13.49 Georgia 6.50 8.25 8.25 0.00 3.50 3.36 0.00 1.75 1.68 6.50 10.00 9.93 6.50 13.50 13.30 Guam 8.25 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 10.00 10.00 10.00 13.50 13.50 13.50 Hawaii 8.25 8.25 8.25 0.00 0.00 0.00 0.00 0.00 0.00 8.25 8.25 8.25 8.25 8.25 8.25 Idaho 6.50 8.25 8.17 0.00 3.50 3.44 0.00 1.75 1.72 6.50 10.00 9.89 6.50 13.50 13.34 Illinois 6.24 8.25 6.57 0.00 2.50 0.11 0.00 1.25 0.05 6.24 9.50 6.62 6.24 12.00 6.73 Indiana 5.25 8.25 7.52 0.00 0.00 0.00 0.00 0.00 0.00 5.25 8.25 7.52 5.25 8.25 7.52 Iowa 6.55 8.25 7.11 0.00 3.50 0.32 0.00 1.75 0.16 6.55 10.00 7.27 6.55 13.50 7.58 Kansas 6.50 8.25 7.31 0.00 3.50 3.44 0.00 1.75 1.72 6.50 10.00 9.03 6.50 13.50 12.47 Kentucky 7.00 8.25 8.17 0.00 3.50 2.80 0.00 1.75 1.40 7.00 10.00 9.57 7.00 13.50 12.37 Louisiana 8.25 8.25 8.25 0.00 3.50 0.41 0.00 1.75 0.21 8.25 10.00 8.46 8.25 13.50 8.87 Maine 8.15 8.25 8.17 0.00 3.50 3.47 0.00 1.75 1.73 8.15 10.00 9.91 8.15 13.50 13.37 Maryland 7.43 8.25 7.43 0.84 3.42 3.42 0.42 1.71 1.71 7.85 9.96 9.14 8.69 13.38 12.56 Massachusetts 8.15 8.25 8.15 3.50 3.50 3.50 1.75 1.75 1.75 9.90 10.00 9.90 13.40 13.50 13.40 Michigan 7.10 8.25 7.26 0.52 3.50 2.21 0.26 1.75 1.11 7.36 10.00 8.37 7.88 13.50 10.58 Minnesota 6.50 8.25 7.16 0.00 3.50 1.84 0.00 1.75 0.92 6.50 10.00 8.08 6.50 13.50 9.92 Mississippi 8.25 8.25 8.25 0.00 3.50 3.36 0.00 1.75 1.68 8.25 10.00 9.93 8.25 13.50 13.29 Missouri 6.50 8.25 7.34 0.00 3.50 3.45 0.00 1.75 1.72 6.50 10.00 9.06 6.50 13.50 12.51 Montana 8.25 8.25 8.25 0.00 3.50 2.85 0.00 1.75 1.43 8.25 10.00 9.68 8.25 13.50 12.53 Nebraska 6.06 8.25 7.03 0.00 3.50 3.39 0.00 1.75 1.70 6.06 10.00 8.72 6.06 13.50 12.12 Nevada 5.53 8.25 6.30 0.00 3.50 1.86 0.00 1.75 0.93 5.53 10.00 7.23 5.53 13.50 9.09 New Hampshire 8.14 8.25 8.16 0.00 0.00 0.00 0.00 0.00 0.00 8.14 8.25 8.16 8.14 8.25 8.16 New Jersey 7.07 8.25 8.03 0.00 3.50 3.48 0.00 1.75 1.74 7.07 10.00 9.77 7.07 13.50 13.25 New Mexico 8.25 8.25 8.25 0.00 3.50 3.08 0.00 1.75 1.54 8.25 10.00 9.79 8.25 13.50 12.87 New York 5.93 8.25 8.03 0.00 3.50 3.11 0.00 1.75 1.56 5.93 10.00 9.59 5.93 13.50 12.70 North Carolina 7.43 8.25 7.89 3.50 3.50 3.49 1.75 1.75 1.75 9.18 10.00 9.63 12.68 13.50 13.13 North Dakota 8.25 8.25 8.25 0.00 3.50 1.78 0.00 1.75 0.89 8.25 10.00 9.14 8.25 13.50 10.92 N. Marianna Islands 8.25 8.25 8.25 0.00 0.00 0.00 0.00 0.00 0.00 8.25 8.25 8.25 8.25 8.25 8.25 Ohio 7.00 8.25 7.30 0.00 3.50 3.49 0.00 1.75 1.75 7.00 10.00 9.05 7.00 13.50 12.54 Oklahoma 7.00 8.25 7.44 0.00 3.50 1.08 0.00 1.75 0.54 7.00 10.00 7.98 7.00 13.50 9.07 Oregon 8.13 8.25 8.25 0.00 3.50 3.47 0.00 1.75 1.74 8.13 10.00 9.99 8.13 13.50 13.46 Pennsylvania 5.25 8.25 7.74 0.00 2.50 0.98 0.00 1.25 0.49 5.25 9.50 8.23 5.25 12.00 9.20 Puerto Rico 8.25 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 10.00 10.00 10.00 13.50 13.50 13.50 Rhode Island 8.15 8.15 8.15 3.50 3.50 3.50 1.75 1.75 1.75 9.90 9.90 9.90 13.40 13.40 13.40 South Carolina 7.38 8.25 8.24 3.50 3.50 3.50 1.75 1.75 1.75 9.13 10.00 9.99 12.63 13.50 13.49 South Dakota 7.89 8.25 8.19 0.00 3.50 0.31 0.00 1.75 0.15 7.89 10.00 8.34 7.89 13.50 8.65 Tennessee 6.85 8.25 8.15 0.00 3.50 3.19 0.00 1.75 1.59 6.85 10.00 9.75 6.85 13.50 12.94 Texas 5.36 8.25 7.28 0.00 3.50 3.35 0.00 1.75 1.67 5.36 10.00 8.95 5.36 13.50 12.30 Utah 8.09 8.25 8.15 3.50 3.50 3.50 1.75 1.75 1.75 9.84 10.00 9.90 13.34 13.50 13.40 Vermont 8.15 8.25 8.17 3.50 3.50 3.50 1.75 1.75 1.75 9.90 10.00 9.92 13.40 13.50 13.42 Virgin Islands 8.25 8.25 8.25 3.50 3.50 3.50 1.75 1.75 1.75 10.00 10.00 10.00 13.50 13.50 13.50 Virginia 6.68 8.25 7.48 0.00 3.50 3.23 0.00 1.75 1.61 6.68 10.00 9.10 6.68 13.50 12.32 Washington 6.97 8.25 7.84 0.00 3.50 2.29 0.00 1.75 1.15 6.97 10.00 8.99 6.97 13.50 11.28 West Virginia 6.50 8.25 8.25 0.00 3.50 2.75 0.00 1.75 1.37 6.50 10.00 9.62 6.50 13.50 12.37 Wisconsin 6.81 8.25 7.33 0.00 3.50 1.21 0.00 1.75 0.61 6.81 10.00 7.94 6.81 13.50 9.15 Wyoming 8.25 8.25 8.25 0.00 3.50 3.45 0.00 1.75 1.73 8.25 10.00 9.98 8.25 13.50 13.43 Nationwide $3.98 $8.25 $7.30 $0.00 $3.50 $2.69 $0.00 $1.75 $1.34 $3.98 $10.00 $8.64 $3.98 $13.50 $11.33 Notes: This table reflects only non-tribal support. All averages are weighted averages. 1 Basic federal support includes both Tier 1 and Tier 2 support. See text for definitions. 2 Includes only state support that is matched by federal support. Source: Universal Service Administrative Company. Support 1 Total Federal and State Support 2 Total Federal Additional State Support 2 Support Federal Match Table 19.7 Lifeline Monthly Support by State or Jurisdiction (As of March 31, 2008) Basic Federal 19 - 12 Table 19.8 Lifeline Subscribers and Link-Up Beneficiaries Year Non-Tribal Tribal Total Non-Tribal Tribal Total 1987 1,063,443 7,953 1988 1,828,862 105,758 1989 2,115,288 206,656 1990 2,466,513 513,155 1991 2,984,290 639,645 1992 3,440,216 743,285 1993 3,971,937 737,362 1994 4,423,119 837,964 1995 4,914,056 823,679 1996 5,233,425 808,354 1997 1 5,110,537 NA 1998 5,380,726 2,195,417 1999 5,640,094 1,834,766 2000 5,871,619 18,692 5,890,311 1,689,867 2,038 1,691,905 2001 6,144,089 56,820 6,200,909 1,670,260 23,355 1,693,615 2002 6,518,367 112,191 6,630,558 1,656,768 29,901 1,686,669 2003 6,490,614 147,203 6,637,817 1,653,301 22,289 1,675,590 2004 6,792,695 176,390 6,969,085 1,669,888 41,034 1,710,922 2005 6,883,048 236,458 7,119,506 1,653,101 86,857 1,739,958 2006 6,648,267 289,249 6,937,516 1,560,348 99,179 1,659,527 2007 6,617,969 329,386 6,947,355 1,385,440 110,495 1,495,935 2008 2 6,500,374 353,274 6,853,648 1,505,833 116,905 1,622,738 NA - Not Available. 1 Subscriber data were not collected in 1997. Lifeline subscribership data were estimated by USAC. Source: Universal Service Administrative Company. Lifeline Link-Up 2 The reported subscribers and beneficiaries represent USAC data for the time period January 2008 through December 2008, which include true-ups for Lifeline subscribers and Link-Up beneficiaries through March 2009. 19 - 13 Non-Tribal Tribal Total Non-Tribal Tribal Total Alabama 45,714 15 45,729 34,849 0 34,849 Alaska 0 48,848 48,848 23 13,182 13,205 American Samoa 592 0 592 15 0 15 Arizona 31,143 48,955 80,098 3,547 8,955 12,502 Arkansas 28,476 4 28,480 5,435 0 5,435 California 2,778,807 465 2,779,272 590,563 1 590,564 Colorado 27,307 9 27,316 1,500 1 1,501 Connecticut 47,294 0 47,294 2,399 0 2,399 Delaware 2,280 0 2,280 279 0 279 District of Columbia 7,763 0 7,763 790 0 790 Florida 165,272 1 165,273 36,490 0 36,490 Georgia 76,610 0 76,610 17,815 0 17,815 Guam 2,259 0 2,259 1,100 0 1,100 Hawaii 4,914 0 4,914 206 0 206 Idaho 30,228 499 30,727 1,473 4 1,477 Illinois 110,330 0 110,330 54,105 0 54,105 Indiana 57,675 0 57,675 18,399 0 18,399 Iowa 65,499 1 65,500 5,017 0 5,017 Kansas 26,960 43 27,003 3,479 0 3,479 Kentucky 70,922 0 70,922 12,598 0 12,598 Louisiana 29,447 0 29,447 24,425 0 24,425 Maine 66,072 652 66,724 14,147 37 14,184 Maryland 5,133 0 5,133 1,627 0 1,627 Massachusetts 100,664 2 100,666 1,547 0 1,547 Michigan 132,351 303 132,654 47,895 27 47,922 Minnesota 71,718 1,620 73,338 6,359 375 6,734 Mississippi 40,306 19 40,325 19,191 0 19,191 Missouri 65,781 35 65,816 7,651 2 7,653 Montana 10,069 8,272 18,341 622 1,933 2,555 Nebraska 21,894 503 22,397 2,009 30 2,039 Nevada 34,611 215 34,826 4,840 17 4,857 New Hampshire 5,876 0 5,876 222 0 222 New Jersey 113,502 0 113,502 6,821 0 6,821 New Mexico 55,562 21,319 76,881 3,411 4,438 7,849 New York 323,603 16 323,619 1,856 0 1,856 North Carolina 120,363 8 120,371 5,673 0 5,673 North Dakota 16,169 6,751 22,920 2,212 1,775 3,987 Northern Mariana Islands 1,017 0 1,017 1,076 0 1,076 Ohio 287,047 0 287,047 55,511 0 55,511 Oklahoma 6,339 160,750 167,089 5,093 69,216 74,309 Oregon 46,367 269 46,636 7,611 11 7,622 Pennsylvania 152,658 0 152,658 43,620 0 43,620 Puerto Rico 136,395 0 136,395 26,106 0 26,106 Rhode Island 33,391 0 33,391 2,304 0 2,304 South Carolina 29,953 8 29,961 8,611 0 8,611 South Dakota 11,367 14,768 26,135 1,096 3,369 4,465 Tennessee 67,050 0 67,050 40,626 0 40,626 Texas 776,244 815 777,059 171,619 77 171,696 Utah 29,663 629 30,292 1,323 384 1,707 Vermont 25,506 0 25,506 1,413 0 1,413 Virgin Islands 520 0 520 2 0 2 Virginia 19,956 0 19,956 3,778 0 3,778 Washington 101,317 12,609 113,926 31,487 6,240 37,727 West Virginia 6,143 0 6,143 1,005 0 1,005 Wisconsin 88,207 671 88,878 42,129 411 42,540 Wyoming 5,663 312 5,975 440 10 450 Industry Totals 6,617,969 329,386 6,947,355 1,385,440 110,495 1,495,935 Source: Universal Service Administrative Company. The reported subscribers and beneficiaries represent USAC data for the time period January 2007 through December 2007, which include true-ups for Lifeline subscribers and Link-Up beneficiaries through March 2008. Table 19.9 Lifeline Subscribers and Link-Up Beneficiaries by State or Jurisdiction: 2007 Lifeline Link-Up 19 - 14 Non-Tribal Tribal Total Non-Tribal Tribal Total Alabama 76,594 17 76,611 61,547 0 61,547 Alaska 0 56,522 56,522 0 10,277 10,277 American Samoa 627 0 627 23 0 23 Arizona 28,918 48,356 77,274 4,331 8,579 12,910 Arkansas 29,715 4 29,719 7,997 0 7,997 California 2,309,971 467 2,310,438 545,078 1 545,079 Colorado 25,963 9 25,972 2,404 1 2,405 Connecticut 43,823 0 43,823 2,209 0 2,209 Delaware 1,984 0 1,984 185 0 185 District of Columbia 7,237 0 7,237 612 0 612 Florida 281,422 1 281,423 33,815 0 33,815 Georgia 100,202 0 100,202 54,903 0 54,903 Guam 2,401 0 2,401 953 0 953 Hawaii 4,390 0 4,390 175 0 175 Idaho 27,750 533 28,283 2,358 28 2,386 Illinois 108,635 0 108,635 45,136 0 45,136 Indiana 55,307 0 55,307 15,550 0 15,550 Iowa 58,639 2 58,641 5,688 0 5,688 Kansas 26,715 46 26,761 3,531 0 3,531 Kentucky 64,913 0 64,913 19,017 0 19,017 Louisiana 39,051 0 39,051 26,580 0 26,580 Maine 63,776 758 64,534 14,148 48 14,196 Maryland 5,821 0 5,821 2,117 0 2,117 Massachusetts 91,464 2 91,466 536 0 536 Michigan 116,409 301 116,710 32,120 30 32,150 Minnesota 72,861 2,495 75,356 9,900 208 10,108 Mississippi 58,327 19 58,346 45,597 0 45,597 Missouri 70,939 44 70,983 9,145 1 9,146 Montana 9,303 7,958 17,261 1,071 1,663 2,734 Nebraska 20,001 533 20,534 2,092 8 2,100 Nevada 30,109 238 30,347 4,417 58 4,475 New Hampshire 5,439 0 5,439 67 0 67 New Jersey 108,648 0 108,648 5,726 0 5,726 New Mexico 53,654 22,956 76,610 5,460 3,825 9,285 New York 309,760 15 309,775 2,062 0 2,062 North Carolina 127,373 6 127,379 20,395 0 20,395 North Dakota 15,392 5,372 20,764 1,643 514 2,157 Northern Mariana Islands 1,277 0 1,277 800 0 800 Ohio 279,260 0 279,260 49,409 0 49,409 Oklahoma 7,798 178,741 186,539 2,143 86,166 88,309 Oregon 45,326 267 45,593 8,005 20 8,025 Pennsylvania 144,490 0 144,490 36,627 0 36,627 Puerto Rico 187,864 0 187,864 32,289 0 32,289 Rhode Island 30,748 0 30,748 2,172 0 2,172 South Carolina 46,780 33 46,813 37,000 0 37,000 South Dakota 10,685 9,135 19,820 1,347 576 1,923 Tennessee 98,696 0 98,696 43,165 0 43,165 Texas 908,295 957 909,252 239,783 251 240,034 Utah 29,139 843 29,982 2,990 217 3,207 Vermont 25,816 0 25,816 1,102 0 1,102 Virgin Islands 534 0 534 9 0 9 Virginia 43,242 0 43,242 3,798 0 3,798 Washington 92,619 15,636 108,255 27,784 4,069 31,853 West Virginia 6,012 0 6,012 686 0 686 Wisconsin 83,032 716 83,748 27,741 349 28,090 Wyoming 5,228 292 5,520 395 16 411 Industry Totals 6,500,374 353,274 6,853,648 1,505,833 116,905 1,622,738 Source: Universal Service Administrative Company. The reported subscribers and beneficiaries represent USAC data for the time period January 2008 through December 2008, which include true-ups for Lifeline subscribers and Link-Up beneficiaries through March 2009. Table 19.9 - Continued Lifeline Subscribers and Link-Up Beneficiaries by State or Jurisdiction: 2008 Lifeline Link-Up 19 - 15 Total Year Non-Tribal Tribal TLS 1 PICC 2 Total Non-Tribal Tribal Total 1988 $31,952 $0 $0 $0 $31,952 $1,991 $0 $1,991 $33,943 1989 50,878 0 0 0 50,878 4,480 0 4,480 55,358 1990 62,464 0 0 0 62,464 11,351 0 11,351 73,815 1991 79,104 0 0 0 79,104 13,705 0 13,705 92,809 1992 93,766 0 0 0 93,766 15,342 0 15,342 109,108 1993 109,083 0 0 0 109,083 17,019 0 17,019 126,102 1994 123,284 0 0 0 123,284 18,573 0 18,573 141,857 1995 137,277 0 0 0 137,277 18,392 0 18,392 155,670 1996 148,186 0 0 0 148,186 18,247 0 18,247 166,433 1997 147,579 0 0 0 147,579 13,711 0 13,711 161,290 1998 1 416,504 0 2,700 2,802 422,006 42,463 0 42,463 464,469 1999 438,576 0 3,136 4,450 446,162 33,991 0 33,991 480,153 2000 482,045 508 2,854 3,168 488,575 30,371 62 30,433 519,007 2001 548,419 6,960 3,195 0 558,574 30,314 475 30,788 589,362 2002 623,350 17,955 3,779 0 645,083 30,323 700 31,022 676,106 2003 657,095 24,167 4,425 0 685,687 30,170 515 30,686 716,373 2004 695,188 30,502 5,111 0 730,800 30,898 1,230 32,129 762,929 2005 716,175 45,096 6,215 0 767,486 31,715 2,788 34,503 801,989 2006 704,045 61,673 8,885 0 774,602 29,832 2,903 32,735 807,337 2007 710,270 73,284 8,514 0 792,069 27,816 3,620 31,436 823,505 2008 695,001 81,114 8,629 0 784,745 30,665 6,620 37,284 822,029 2 Carriers no longer charge residential Presubscribed Interexchange Access Charges (PICCs) as of July 1, 2000. Source: Universal Service Administrative Company (USAC). 1 TLS is an abbreviation for toll limitation service. Chart 19.5 Lifeline and Link-Up Support Payments (Dollar Amounts in Millions) Note: Support payments reported in this table include all low income support disbursed based on commitments for a given year, including all true-ups through September 2009. Support payments reported for 2007 and 2008 in Tables 19.1, 19.2, and 19.12 report disbursements for 2007 and 2008, regardlesss of the year of the commitments. Table 19.10 Low-Income Support Payments (In Thousands of Dollars) Lifeline Link Up $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 $900.0 Lifeline Payments $32 $51 $62 $79 $94 $109 $123 $137 $148 $148 $422 $446 $489 $559 $645 $686 $731 $767 $775 $792 $785 Link Up Payments $2 $4 $11 $14 $15 $17 $19 $18 $18 $14 $42 $34 $30 $31 $31 $31 $32 $35 $33 $31 $37 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 19 - 16 (In Thousands of Dollars) Lifeline Link-Up Total Non-Tribal Tribal TLS Total Non-Tribal Tribal Total Alabama $5,337 $1 $215 $5,553 $896 $0 $896 $6,449 Alaska 6,117 11,052 82 17,251 1 242 243 17,494 American Samoa 59 0 0 59 0 0 0 59 Arizona 9,124 12,862 62 22,047 67 177 245 22,292 Arkansas 2,824 0 5 2,830 116 0 116 2,946 California 256,525 30 3,932 260,487 10,921 0 10,921 271,408 Colorado 3,275 1 7 3,283 25 0 25 3,308 Connecticut 4,573 0 1 4,574 72 0 72 4,646 Delaware 224 0 0 224 5 0 5 229 District of Columbia 685 0 0 685 8 0 8 693 Florida 18,965 0 77 19,041 706 0 706 19,747 Georgia 9,017 0 23 9,040 388 0 388 9,428 Guam 280 0 0 280 19 0 19 300 Hawaii 574 0 1 574 5 0 5 579 Idaho 3,657 113 11 3,781 22 0 22 3,803 Illinois 8,764 0 257 9,021 1,316 0 1,316 10,337 Indiana 5,215 0 50 5,265 441 0 441 5,706 Iowa 5,743 0 186 5,930 94 0 94 6,023 Kansas 2,907 4 56 2,968 63 0 63 3,030 Kentucky 7,894 0 98 7,992 239 0 239 8,231 Louisiana 2,966 0 127 3,093 595 0 595 3,688 Maine 7,931 104 8 8,042 310 1 310 8,353 Maryland 564 0 0 564 39 0 39 603 Massachusetts 11,950 0 1 11,951 10 0 10 11,962 Michigan 13,215 52 722 13,989 1,195 0 1,195 15,184 Minnesota 7,078 261 184 7,522 84 7 91 7,613 Mississippi 4,743 6 9 4,758 397 0 397 5,154 Missouri 7,180 1 135 7,316 138 0 138 7,454 Montana 2,154 2,125 13 4,292 9 31 40 4,331 Nebraska 2,369 89 14 2,472 32 0 33 2,505 Nevada 2,997 16 8 3,021 91 0 91 3,112 New Hampshire 576 0 0 576 4 0 4 580 New Jersey 13,295 0 2 13,298 144 0 144 13,442 New Mexico 9,083 5,576 64 14,722 56 86 141 14,864 New York 37,527 2 10 37,538 37 0 37 37,575 North Carolina 13,841 1 31 13,873 119 0 119 13,992 North Dakota 2,500 1,413 19 3,932 35 66 101 4,032 Northern Mariana Islands 101 0 0 101 11 0 11 111 Ohio 31,322 0 175 31,497 976 0 976 32,473 Oklahoma 16,377 32,117 547 49,041 120 2,651 2,771 51,812 Oregon 5,598 42 12 5,652 73 0 73 5,725 Pennsylvania 15,121 0 2 15,123 868 0 868 15,991 Puerto Rico 16,334 0 0 16,334 554 0 554 16,888 Rhode Island 3,964 0 1 3,965 8 0 8 3,973 South Carolina 3,513 1 13 3,528 170 0 170 3,697 South Dakota 2,493 3,406 49 5,947 15 158 173 6,120 Tennessee 7,740 0 196 7,936 944 0 944 8,880 Texas 85,378 28 697 86,104 3,626 1 3,627 89,731 Utah 3,593 119 23 3,736 18 8 26 3,761 Vermont 3,054 0 3 3,056 20 0 20 3,076 Virgin Islands 73 0 0 73 0 0 0 73 Virginia 2,182 0 0 2,183 71 0 71 2,254 Washington 11,809 3,614 27 15,451 486 185 671 16,122 West Virginia 708 0 1 709 19 0 19 728 Wisconsin 8,468 172 301 8,941 1,128 5 1,133 10,074 Wyoming 717 74 58 849 10 0 10 859 Industry Totals $710,270 $73,284 $8,514 $792,069 $27,816 $3,620 $31,436 $823,505 Source: Universal Service Administrative Company. Table 19.11 Low-Income Support Payments by State or Jurisdiction: 2007 Note: Support payments reported in this table include all low income support disbursed based on commitments for 2007, including all true-ups through September 2009. Support payments reported for 2007 in Tables 19.1, 19.2, and 19.12 report disbursements for 2007, regardlesss of the year of the commitments. 19 - 17 (In Thousands of Dollars) Lifeline Link-Up Total Non-Tribal Tribal TLS Total Non-Tribal Tribal Total Alabama $8,335 $2 $526 $8,862 $1,614 $0 $1,614 $10,476 Alaska 7,033 13,381 75 20,489 0 190 190 20,679 American Samoa 62 0 0 62 1 0 1 63 Arizona 8,764 12,694 56 21,514 76 171 247 21,761 Arkansas 3,010 0 5 3,016 175 0 175 3,191 California 210,841 30 3,919 214,790 9,879 0 9,879 224,670 Colorado 3,138 1 6 3,146 43 0 43 3,189 Connecticut 4,235 0 1 4,236 62 0 62 4,298 Delaware 195 0 0 195 3 0 3 199 District of Columbia 639 0 0 639 6 0 6 646 Florida 25,547 0 130 25,676 843 0 843 26,520 Georgia 11,757 0 34 11,790 1,242 0 1,242 13,032 Guam 295 0 0 295 17 0 17 312 Hawaii 472 0 0 473 4 0 4 477 Idaho 3,372 124 9 3,505 35 0 36 3,541 Illinois 8,485 0 145 8,630 1,143 0 1,143 9,772 Indiana 4,992 0 50 5,041 370 0 370 5,411 Iowa 5,030 0 67 5,098 100 0 100 5,198 Kansas 2,885 4 59 2,948 64 0 64 3,013 Kentucky 7,371 0 90 7,460 399 0 399 7,859 Louisiana 3,768 0 47 3,816 600 0 600 4,415 Maine 7,619 135 7 7,762 301 0 302 8,063 Maryland 626 0 0 626 51 0 51 677 Massachusetts 10,888 0 1 10,889 4 0 4 10,893 Michigan 11,514 51 260 11,825 789 0 790 12,615 Minnesota 7,121 524 85 7,730 121 4 125 7,854 Mississippi 6,855 6 13 6,873 999 0 999 7,873 Missouri 7,732 1 128 7,861 164 0 164 8,025 Montana 1,995 2,091 11 4,097 15 27 42 4,138 Nebraska 2,202 95 15 2,311 34 2 36 2,347 Nevada 2,635 18 8 2,661 84 1 85 2,746 New Hampshire 528 0 0 528 1 0 1 529 New Jersey 12,746 0 2 12,748 121 0 121 12,869 New Mexico 8,979 5,909 48 14,937 93 74 167 15,104 New York 35,756 2 9 35,766 27 0 27 35,793 North Carolina 14,536 1 113 14,649 489 0 489 15,139 North Dakota 2,276 1,154 10 3,440 26 21 47 3,487 Northern Mariana Islands 126 0 0 126 13 0 13 139 Ohio 30,369 0 239 30,608 846 0 846 31,454 Oklahoma 18,133 37,634 1,339 57,105 50 5,963 6,013 63,118 Oregon 5,490 41 11 5,543 78 0 78 5,620 Pennsylvania 14,257 0 2 14,259 730 0 730 14,989 Puerto Rico 22,555 0 0 22,555 883 0 883 23,439 Rhode Island 3,660 0 1 3,661 6 0 6 3,667 South Carolina 5,132 5 140 5,276 868 0 868 6,145 South Dakota 1,962 2,197 21 4,180 19 32 51 4,231 Tennessee 9,948 0 77 10,025 886 0 886 10,911 Texas 98,803 32 663 99,498 4,991 5 4,996 104,494 Utah 3,558 191 20 3,768 38 4 42 3,810 Vermont 3,075 0 2 3,077 16 0 16 3,092 Virgin Islands 72 0 0 72 0 0 0 73 Virginia 2,836 0 0 2,837 70 0 70 2,906 Washington 11,530 4,529 26 16,085 416 121 536 16,622 West Virginia 636 0 1 636 13 0 13 650 Wisconsin 8,000 188 138 8,325 737 4 741 9,067 Wyoming 627 74 21 722 8 0 8 730 Industry Totals $695,001 $81,114 $8,629 $784,745 $30,665 $6,620 $37,284 $822,029 Source: Universal Service Administrative Company. Table 19.11 - Continued Low-Income Support Payments by State or Jurisdiction: 2008 Note: Support payments reported in this table include all low income support disbursed based on commitments for 2008, including all true-ups through September 2009. Support payments reported for 2008 in Tables 19.1, 19.2, and 19.12 report disbursements for 2008, regardlesss of the year of the commitments. 19 - 18 Table 19.12 ILECs CETCs Total 1996 $166 $0 $166 0.0 % 1997 161 0 161 0.0 1998 464 0 464 0.0 1999 480 0 480 0.0 2000 519 0 519 0.0 2001 586 4 589 0.6 2002 663 13 676 1.9 2003 693 23 716 3.2 2004 724 39 763 5.2 2005 734 68 802 8.4 2006 707 100 807 12.4 2007 702 122 824 14.8 2008 675 147 822 17.9 Low-Income Support Received by ILECs and CETCs (In Millions of Dollars) Notes: ILECs is an abbreviation for incumbent local exchange carriers. CETCs is an abbreviation for competitive eligible telecommunications carriers. CETCs include both wireless and wireline carriers. In 2006, CETCs include temporary ETCs. Most companies that received Hurricane Katrina support were designated as temporary ETCs specifically for the purpose of serving consumers affected by Hurricane Katrina. Percent of Low-Income Support Received by CETCs Chart 19.6 Percent CETCs Source: Universal Service Administrative Company. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 19 - 19 Table 19.13 Schools and Libraries Funding by Type of Service Funds Committed and Disbursed Through June 30, 2009 1 (In Thousands of Dollars) Internal Connections Internet Access Telecommunications Totals Funds Funds Funds Funds Funds Funds Funds Funds Funding Period Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed Jan-98 to Jun-99 $886,046 $797,353 $134,153 $94,913 $675,892 $507,646 $1,696,090 $1,399,911 Jul-99 to Jun-00 1,367,140 1,105,726 149,569 95,499 634,062 452,988 2,150,772 1,654,213 Jul-00 to Jun-01 1,134,712 1,034,493 219,279 133,473 719,847 481,216 2,073,838 1,649,181 Jul-01 to Jun-02 1,184,027 1,007,328 224,896 149,424 775,455 539,621 2,184,379 1,696,372 Jul-02 to Jun-03 1,127,917 809,579 250,484 170,991 859,565 613,128 2,237,966 1,593,697 Jul-03 to Jun-04 1,534,433 1,083,746 276,239 203,843 908,026 659,186 2,718,698 1,946,775 Jul-04 to Jun-05 1,045,758 646,110 245,763 192,793 946,845 688,071 2,238,365 1,526,974 Jul-05 to Jun-06 882,381 596,181 264,102 213,045 979,104 759,945 2,125,587 1,569,172 Jul-06 to Jun-07 613,080 445,085 290,475 233,545 1,068,856 838,369 1,972,411 1,517,000 Jul-07 to Jun-08 959,354 576,126 309,146 251,868 1,167,534 898,175 2,436,034 1,726,169 Jul-08 to Jun-09 733,030 244,620 331,840 201,096 1,269,955 622,629 2,334,826 1,068,346 1 Because of the appeals process, funding commitments and disbursements can be made after the program years' end. Source: USAC data. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC. Total Schools and Libraries Funds Committed and Disbursed Chart 19.7 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Funds Committed $1.7 $2.2 $2.1 $2.2 $2.2 $2.7 $2.2 $2.1 $2.0 $2.4 Funds Disbursed $1.4 $1.7 $1.6 $1.7 $1.6 $1.9 $1.5 $1.6 $1.5 $1.7 Jan-98 to Jun-99 Jul-99 to Jun-00 Jul-00 to Jun-01 Jul-01 to Jun-02 Jul-02 to Jun-03 Jul-03 to Jun-04 Jul-04 to Jun-05 Jul-05 to Jun-06 Jul-06 to Jun-07 Jul-07 to Jun-08 A m ou n t s in Billion s 19 - 20 Internal Connections Internet Access Telecom. and Dedicated Totals Funds Funds Funds Funds Funds Funds Funds Funds State/Territory Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed Alabama $7,681 $7,394 $15,455 $13,232 $18,590 $15,693 $41,725 $36,318 Alaska 1,370 602 9,869 9,275 10,642 9,753 21,882 19,630 American Samoa 30 30 650 650 97 20 777 700 Arizona 28,970 23,182 6,989 4,667 21,708 15,380 57,667 43,229 Arkansas 5,625 4,320 1,189 782 20,736 13,469 27,550 18,571 California 252,009 110,582 20,853 15,487 161,421 113,197 434,283 239,265 Colorado 2,151 2,043 2,852 2,335 13,987 11,714 18,990 16,092 Connecticut 9,098 6,882 2,020 1,334 17,761 15,209 28,879 23,426 Delaware 0 0 11 9 1,792 1,740 1,803 1,749 District of Columbia 3,439 1,738 291 96 9,144 5,135 12,874 6,968 Florida 29,470 24,857 16,930 14,397 51,934 44,060 98,334 83,314 Georgia 28,058 23,264 9,027 7,704 39,991 34,305 77,077 65,273 Guam 0 0 2 0 15 8 17 8 Hawaii 59 8 773 594 2,544 1,499 3,376 2,101 Idaho 745 576 2,214 1,719 2,780 2,256 5,738 4,552 Illinois 55,053 37,719 9,163 6,211 42,011 32,053 106,227 75,983 Indiana 6,053 1,756 14,104 11,203 16,456 14,172 36,613 27,132 Iowa 200 28 2,344 1,990 9,330 7,767 11,874 9,785 Kansas 2,911 2,865 4,400 3,721 11,873 9,954 19,184 16,540 Kentucky 5,958 5,163 1,470 855 24,656 20,429 32,084 26,447 Louisiana 17,294 11,210 7,117 6,327 21,888 17,942 46,299 35,479 Maine 532 338 998 949 6,629 5,536 8,159 6,823 Maryland 5,093 789 1,530 1,170 13,091 10,190 19,714 12,149 Massachusetts 8,301 7,454 6,717 5,529 13,820 11,035 28,838 24,019 Michigan 14,608 5,936 8,064 6,762 37,058 29,317 59,731 42,014 Minnesota 7,098 5,980 5,439 4,421 14,129 12,300 26,666 22,700 Mississippi 9,439 7,885 1,409 539 22,544 16,214 33,392 24,638 Missouri 3,642 3,118 3,132 2,229 18,464 13,263 25,238 18,610 Montana 484 471 999 874 2,580 2,160 4,063 3,505 Nebraska 83 47 1,129 959 8,429 7,292 9,641 8,298 Nevada 4,855 366 525 492 3,416 2,963 8,795 3,820 New Hampshire 31 14 804 630 1,596 1,177 2,431 1,821 New Jersey 13,138 10,499 6,113 4,355 31,092 24,060 50,343 38,914 New Mexico 26,881 20,838 3,682 2,516 8,233 6,123 38,795 29,477 New York 170,636 102,352 14,223 11,698 122,471 81,358 307,330 195,408 North Carolina 20,597 14,613 12,866 11,515 32,074 26,742 65,537 52,869 North Dakota 505 471 166 159 3,482 3,237 4,153 3,867 Northern Mariana Islands 162 162 511 465 369 324 1,042 952 Ohio 27,381 15,088 16,086 15,030 41,612 33,097 85,079 63,214 Oklahoma 18,043 14,956 9,636 7,702 20,896 16,123 48,575 38,782 Oregon 1,503 1,246 4,385 3,189 8,744 6,697 14,632 11,132 Pennsylvania 8,123 6,208 10,884 9,214 43,413 35,899 62,420 51,322 Puerto Rico 1,217 888 2,714 2,006 5,185 391 9,116 3,285 Rhode Island 1,423 1,076 1,045 988 3,434 3,052 5,902 5,116 South Carolina 11,497 7,048 4,275 4,016 21,240 19,361 37,011 30,425 South Dakota 1,687 1,167 559 515 4,308 3,066 6,554 4,747 Tennessee 4,552 3,543 27,344 21,378 15,286 14,193 47,182 39,114 Texas 126,108 66,196 18,219 15,079 75,292 59,234 219,618 140,509 Utah 2,288 2,031 1,243 677 15,131 11,712 18,661 14,420 Vermont 4 0 692 537 1,217 943 1,913 1,479 Virgin Islands 2,085 2,032 2,706 2,600 657 597 5,448 5,229 Virginia 1,156 933 6,597 5,879 22,657 20,323 30,410 27,135 Washington 8,702 7,475 2,744 1,847 17,958 14,618 29,404 23,940 West Virginia 158 56 1,274 1,141 9,080 7,619 10,512 8,817 Wisconsin 1,077 568 2,515 2,045 18,453 9,508 22,045 12,121 Wyoming 91 62 200 175 4,138 2,699 4,428 2,936 Totals $959,354 $576,126 $309,146 $251,868 $1,167,534 $898,175 $2,436,034 $1,726,169 1 Because of the appeals process, funding commitments have been made after the program year ended on June 30, 2008. Source: USAC data. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC. Table 19.14 Schools and Libraries Funding by State and by Type of Service Funding Period: July 1, 2007 Through June 30, 2008 Activity Through June 30, 2009 1 (In Thousands of Dollars) 19 - 21 Table 19.15 Rural Health Care Fund Disbursements by Service Speed Activity Through June 30, 2009 1 Voice Grade Broadband Other Service Funding 56K to 200K to 1.5Mb or Speed Year 199K 1.49Mb and faster Unknown Total Jan-98 to Jun-99 $202,778 $880,375 $2,292,252 $0 $3,375,405 Jul-99 to Jun-00 452,992 1,073,816 2,719,619 58,132 4,304,559 Jul-00 to Jun-01 613,595 3,802,601 5,897,976 0 10,314,172 Jul-01 to Jun-02 319,539 13,256,841 4,978,963 0 18,555,343 Jul-02 to Jun-03 428,506 14,222,035 6,969,587 0 21,620,128 Jul-03 to Jun-04 477,657 15,917,701 9,469,267 7,559 25,872,184 Jul-04 to Jun-05 611,101 17,511,205 12,733,212 141,133 30,996,651 Jul-05 to Jun-06 899,135 23,270,642 14,956,523 520,114 39,646,414 Jul-06 to Jun-07 1,006,698 21,707,378 16,746,517 4,066,979 43,527,572 Jul-07 to Jun-08 1,231,390 25,740,082 22,590,045 596,518 50,158,034 Jul-08 to Jun-09 426,472 11,626,702 10,597,776 0 22,650,950 1 Because of the appeals process, funding commitments and disbursements may be made after the program year ended. Chart 19.8 Rural Health Care Fund Disbursements by Service Speed Source: USAC data. Rollups performed by the Industry Analysis and Technology Division, Wireline Competition Bureau, FCC. $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Broadband $3.2 $3.8 $9.7 $18.2 $21.2 $25.4 $30.2 $38.2 $38.5 $48.3 Voice Grade and Other $0.2 $0.5 $0.6 $0.3 $0.4 $0.5 $0.8 $1.4 $5.1 $1.8 Jan-98 to Jun-99 Jul-99 to Jun-00 Jul-00 to Jun-01 Jul-01 to Jun-02 Jul-02 to Jun-03 Jul-03 to Jun-04 Jul-04 to Jun-05 Jul-05 to Jun-06 Jul-07 to Jun-07 Jul-06 to Jun-08 A m ounts in Millions 19 - 22 Table 19.16 Rural Health Care Fund Disbursements by Service Speed and by State Funding Period: July 1, 2007 Through June 30, 2008 Activity Through June 30, 2009 1 Other Service 200 kbps to 1.5 Mbps Unknown 2 State 1.49 Mbps and Faster Total Alabama $23,283 $89,678 $38,287 $0 $151,248 Alaska 0 21,717,566 7,054,650 0 28,772,216 American Samoa 0 108,400 0 0 108,400 Arizona 1,723 52,126 1,157,221 0 1,211,070 Arkansas 0 84,876 99,424 0 184,300 California 5,350 66,820 409,198 19,200 500,567 Colorado 2,919 2,365 85,854 0 91,139 Connecticut 0 0 0 0 0 Delaware 0 413 0 0 413 District of Columbia 0 0 0 0 0 Florida 0 17,680 383,254 0 400,933 Georgia 103,770 103,194 913,966 243,275 1,364,205 Guam 0 0 6,860 0 6,860 Hawaii 0 6,208 177,676 0 183,884 Idaho 0 34,994 192,809 0 227,804 Illinois 10,468 92,698 581,305 0 684,471 Indiana 17,860 85,533 394,878 0 498,271 Iowa 81,580 43,411 335,235 0 460,226 Kansas 6,120 40,983 154,211 0 201,314 Kentucky 32,150 205,258 272,690 0 510,098 Louisiana 0 16,867 31,326 0 48,193 Maine 361 36,849 2,103 0 39,314 Maryland 0 0 0 0 0 Massachusetts 0 2,953 125,577 0 128,530 Michigan 14,051 63,111 726,338 0 803,500 Minnesota 3,616 207,643 1,856,593 25,444 2,093,296 Mississippi 23,847 22,323 105,109 0 151,279 Missouri 2,300 37,511 287,616 0 327,428 Montana 0 41,073 560,785 7,828 609,686 Nebraska 0 37,966 1,431,609 0 1,469,575 Nevada 0 0 6,784 0 6,784 New Hampshire 0 0 0 0 0 New Jersey 0 0 0 0 0 New Mexico 0 209,476 93,468 0 302,944 New York 144 6,283 32,187 0 38,614 North Carolina 8,190 25,158 167,627 0 200,974 North Dakota 8,130 233,223 216,021 0 457,375 Northern Mariana Islands 0 0 0 0 0 Ohio 14,572 89,194 35,831 74,380 213,978 Oklahoma 0 248,758 2,500 0 251,258 Oregon 0 61,293 59,367 46,440 167,100 Pennsylvania 7,821 13,843 75,435 0 97,100 Puerto Rico 0 0 0 0 0 Rhode Island 0 0 0 0 0 South Carolina 0 27,960 1,859 0 29,819 South Dakota 1,920 60,083 1,045,367 0 1,107,370 Tennessee 0 13,050 346,220 0 359,271 Texas 37,017 123,299 71,578 14,819 246,713 Utah 311 19,011 394,391 0 413,713 Vermont 0 25,720 69,679 42,371 137,770 Virgin Islands 0 51,318 0 0 51,318 Virginia 0 90,760 366,521 122,760 580,040 Washington 0 7,903 32,096 0 39,999 West Virginia 20,815 68,676 95,005 0 184,496 Wisconsin 803,071 1,146,112 1,968,402 0 3,917,585 Wyoming 0 464 125,133 0 125,596 Totals $1,231,390 $25,740,082 $22,590,045 $596,518 $50,158,034 1 Because of the appeals process, funding commitments have been made after the program year ended on June 30, 2008. Source: USAC data. Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC. Voice Grade 2 56 kbps to 2 USAC data contain a short description of the services the health care providers receive. These service descriptions are rolled up into the categories above. Some inferences were made when service speed was not clearly indicated. For example, frame relay was assumed to be broadband in the range of 200 kbps to 1.5 Mbps, even though some frame relay service speeds may be faster. Broadband 2 or Speed 199 kbps 19 - 23 Year 1998 First Quarter 3.19 % 0.72 % Second Quarter 3.14 0.76 Third Quarter 3.14 0.75 Fourth Quarter 3.18 0.75 1999 First Quarter 3.18 0.58 Second Quarter 3.05 0.57 Third Quarter 2.94 0.99 Fourth Quarter (Oct.) 2 2.887 1.10 Fourth Quarter (Nov. & Dec.) 2 5.8995 2000 First Quarter 5.8770 Second Quarter 5.7101 Third Quarter 5.5360 Fourth Quarter 5.6688 2001 First Quarter 6.6827 Second Quarter 6.8823 Third Quarter 6.8941 Fourth Quarter 6.9187 2002 First Quarter 6.8086 Second Quarter 7.2805 Third Quarter 3 7.2805 Fourth Quarter 7.2805 2003 First Quarter 7.2805 Second Quarter 4 9.1 Third Quarter 9.5 Fourth Quarter 9.2 2004 First Quarter 8.7 Second Quarter 8.7 Third Quarter 8.9 Fourth Quarter 8.9 2005 First Quarter 10.7 Second Quarter 11.1 Third Quarter 10.2 Fourth Quarter 10.2 2006 First Quarter 10.2 Second Quarter 10.9 Third Quarter 10.5 Fourth Quarter 9.1 2007 First Quarter 9.7 Second Quarter 11.7 Third Quarter 11.3 Fourth Quarter 11.0 2008 First Quarter 10.2 Second Quarter 11.3 Third Quarter 11.4 Fourth Quarter 11.4 2009 First Quarter 9.5 Second Quarter 11.3 Third Quarter 12.9 Fourth Quarter 12.3 2010 First Quarter 14.1 Second Quarter 15.3 Third Quarter 13.6 Fourth Quarter 12.9 4 Beginning with the second quarter of 2003, carriers contribute based on projected, collected, end-user interstate and international telecom- munications revenues. Previously, carriers contributed based on historical, gross-billed revenues. The Commission also released an Order and Second Order on Reconsideration, which, inter alia, directed the Wireline Competition Bureau to announce the universal service contribution factor as a percentage rounded up to the nearest tenth of one percent. (See Federal Joint Board on Universal Service, 1998 Biennial Regu- latory Review - Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Indivi- duals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, Truth-in-Billing and Billing Format, Order and Second Order on Reconsideration, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170, FCC 03-58 (rel. March 14, 2003), at para. 22.) Source: Quarterly Public Notices on universal service contribution factors are in CC Docket 96-45. See http://www.fcc.gov/omd/contribution-factor.html. 3 In the Schools First Report and Order, the Commission concluded that unused funds from the schools and libraries support mechanism would be applied to stabilize the collection requirement for universal service for the third and fourth quarters of 2002, and the first quarter of 2003, as necessary. ( See Schools and Libraries Universal Service Support Mechanism, CC Docket No. 2-6, First Report and Order, 17 FCC Rcd 11521 (2002). 2 Consistent with the Eighth Report and Order, the Wireline Competition Bureau (formerly Common Carrier Bureau) issued a single universal service contribution factor for November and December 1999. Effective November 1, 1999, this single contribution factor superseded the fourth quarter 1999 contribution factors previously announced by the Bureau on September 10, 1999. See Proposed Fourth Quarter 1999 Universal Service Contribution Factors, CC Docket No. 96-45, Public Notice, DA 99-2109 (Com. Car. Bur., rel. Oct. 8, 1999); See Proposed Fourth Quarter 1999 Universal Service Contribution Factors, CC Docket No. 96-45, Public Notice, DA 99-1857 (Com. Car. Bur., rel. Sept. 10, 1999). Universal Service Fund Contribution Factors for End-User Revenues 1 Initially, contributions for the schools and libraries and rural health care support mechanisms were based on interstate, international, and intrastate end- user telecommunications revenues, while contributions for high-cost and low-income support mechanisms were based on interstate and international end- user telecommunications revenues. See Federal-State Joint Board on Universal Service , CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 9200-05 (1997). Following a decision by the United States Court of Appeals for the Fifth Circuit, the Commission established a single contribution base for all universal service support mechanisms based on interstate and international revenues. See Federal-State Joint Board on Universal Service, Access Charge Reform , Sixteenth Order on Reconsideration and Eighth Report and Order in CC Docket No. 96-45 and Sixth Report and Order in CC Docket No. 96-262, 15 FCC Rcd 1679, 1685-86, para. 15 (1999) ( Eighth Report and Order). Table 19.17 IntrastateQuarter Interstate 19 - 24 Preliminary 1/ Q3 Service Provider Category 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Fixed Local Service Providers Regional Bell Operating Companies 14.4 % 14.4 % 16.4 % 18.4 % 20.2 % 20.3 % 20.4 % 20.4 % 18.6 % 14.5 % 13.6 % 12.9 % (RBOCs) Including Local Affiliates Other Incumbent Local Exchange 1.4 1.5 1.7 2.1 2.9 3.3 4.1 4.2 4.2 3.7 3.7 3.5 Carriers (LECs) Including Local Affiliates Competitive Local Exchange Carriers 1.4 2.7 2.3 2.8 3.4 3.6 3.8 4.4 5.3 6.4 7.8 9.3 (CLECs) Local Resellers, Payphone Providers and Other Local Carriers, Excluding LEC Affiliates Total: Fixed Local Service Providers 17.2 18.6 20.4 23.2 26.5 27.2 28.2 29.0 28.1 24.6 25.1 25.7 Wireless Service Providers Wireless Affiliates of RBOCs 16.4 16.9 20.3 21.7 22.6 28.2 Wireless Affiliates of Other 2.1 2.0 0.4 0.5 0.4 0.3 Incumbent LECs Wireless Telephony, Paging, SMR 10.4 11.6 15.3 18.3 18.9 14.6 and Other Wireless Providers, Excluding LEC Affiliates Total Wireless Service Providers 5.1 6.6 9.4 12.1 17.4 25.3 28.9 30.6 36 40.4 41.9 43.1 Toll Service Providers Toll Affiliates of RBOCs 2 2 23457.28.629.1 27.4 25.5 23.4 Toll Affiliates of Other Incumbent 0.5 0.6 1.1 1.3 1.3 1.3 LECs IXCs, Toll Resellers, Prepaid Calling 35.1 31.2 5.8 6.4 6.1 6.4 Card, Satellite Service, and Other Toll providers, Excluding LEC Affiliates Total Toll Service Providers 77.7 74.8 70.2 64.7 56.1 47.5 42.8 40.4 35.9 35.0 32.9 31.2 RBOCs and Affiliates 43.9 46.0 68.0 63.6 61.7 64.6 Other Incumbant LECs and Affiliates 6.7 6.8 5.6 5.4 5.4 5.1 All Other Service Providers 49.4 47.3 26.4 31.0 32.9 30.3 Total All Filers 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % Note: Detail may not add to totals due to rounding. Some data for prior years have been revised. Data for 1997 are available in prior year reports. 1 2 Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues and FCC 499-Q filings. Table 19.18 Share of Universal Service Contributions By Principal Type of Contributor Using Traditional Carrier Categories 1 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 have been categorized using the traditional industry classification that best described each company. For years 1997 through 2002, the percentages are based on shares of reported subject interstate and international end-user billed revenues. The percentages shown for 2003 through 2007 are based on shares of reported subject interstate and international end-user collected revenues. Preliminary percentages shown for 2008 and 2009 are based on projected collected revenues from FCC Form 499-Q filings. Calculations exclude revenues for calls that both originate and terminate in foreign points. Calculations for years 1999 through 2003 include revenues for all filers. For the purposes of this table, AT&T and MCI filings are classified as RBOC filings as of the first quarter of 2006. The Sprint Nextel 2004 and 2005 wireless and toll filings are classified as non-ILEC to be consistent with later years. 19 - 25 Chart 19.9 Share of Universal Service Contributions by Principal Type of Contributor 1997 RBOC Toll Providers 1.7% RBOC ILECs 11.7% Wireless 3.3% Other Toll Providers 79.9% CLECs 0.8% Other ILECs 2.6% Preliminary Third Quarter 2009 RBOC Toll Providers 23.4% RBOC Wireless 28.2% RBOC ILECs 12.9% Other Wireless 14.9% Other Toll Providers 7.8% CLECs 9.3% Other ILECs 3.5% 19 - 26 20 - A 20 Appendix A – List of Publications by the Industry Analysis and Technology Division Most recent release dates are shown in parentheses: Infrastructure of the Local Operating Companies (October 2000). Updates can be found in Section 10 of the December 2008 Monitoring Report. Internet Access Services (formerly High-Speed Services for Internet Access): Status as of June 30, 2009 (September 2010) Local Telephone Competition: Status as of June 30, 2009 (September 2010). Universal Service Monitoring Report (December 2009). Numbering Resource Utilization in the United States (February 2010). Quality of Service Report of the Local Operating Companies (December 2009). Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (August 2008). State-by-State Telephone Revenues and Universal Service Data (April 2001). Updates can be found in Section 1 of the Monitoring Report. Statistics of Communications Common Carriers, 2006/2007 Edition (September 2010). Statistics of the Long Distance Telecommunications Industry (May 2003). Telecommunications Industry Revenues: 2008 (September 2010). Telecommunications Provider Locator (January 2010). Telephone Penetration by Income by State (May 2010). Telephone Subscribership in the United States (August 2010). Telephone Subscribership on American Indian Reservations and Off-Reservations Trust Lands (May 2003). Trends in Telephone Service (August 2008). 21 - A 21 Appendix B – Sources of Telecommunications Information The information in this report and, in many cases, more detailed information can be downloaded from the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/stats. Printed copies of various statistical reports are available for reference in the FCC's Reference Information Center, Courtyard Level, 445 12th Street, S.W., and from the Commission's duplicating contractor, Best Copy and Printing, Inc., 800-378-3160. Additional information on regulated carriers, including investments, revenues, expenses, and earnings, is contained in the annual Statistics of Communications Common Carriers. The 2006/2007 edition can be found on the Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/iatd/socc.html. Filings with the Securities and Exchange Commission, such as the annual reports on Form 10-K, can be downloaded from the U.S. Securities and Exchange Commission web page at www.sec.gov. The names, addresses, and telephone numbers for companies in the telephone industry are published in the Industry Analysis and Technology Division's Telecommunications Provider Locator, which can also be downloaded at www.fcc.gov/wcb/iatd/locator.html. The most recent report was released on January 2010. In April 2001, the Commission began requiring all new and existing telecommunications carriers providing interstate telecommunications services to register with the FCC using the FCC Form 499-A. Carriers file the form with the Commission’s data collection agent, the Universal Service Administrative Company. Copies of the form can be downloaded from the Internet at www.fcc.gov/formpage.html. Information on registered companies can be found on the Internet at http://fjallfoss.fcc.gov/cgb/form499/499a.cfm. The information on personal consumption expenditures (Table 3.3) comes from the Bureau of Economic Analysis, National Economic Accounts, Table 2.4.5. Personal Consumption Expenditures by Type of Product. See http://www.bea.gov/national/nipaweb/SelectTable.asp?Selected=N. The information on consumer expenditures (Table 3.1), employment (Tables 5.1 and 5.2), and price indices (Tables 12.1 - 12.3) comes from the Bureau of Labor Statistics and can be found on the Internet at www.bls.gov. FCC rules require carriers to provide more detailed traffic data about international telephone service than about domestic service. Because of delays in international settlements, such information is typically received by the Commission much later than domestic data and is usually published separately. Tables 6.1 - 6.5 contain summary information on international telephone service. More detailed international data are available from International 21 - B Telecommunications Data and Trends in the International Telecommunications Industry, both of which are published by the International Bureau and are available at www.fcc.gov/wcb/iatd/intl.html. Tables 18.4 and 18.5 on area codes come from the North American Numbering Plan Administration (NANPA), which is part of Neustar, Inc. Additional information on NANPA can be found on the Internet at www.nanpa.com. The information on wireless telephone service shown in Tables 11.1 and 11.3 was prepared from data received from CTIA-The Wireless Association TM 1600 16th Street N.W., Washington, D.C. 20036, 202-785-0081. CTIA can be found on the Internet at www.ctia.org. TNS Telecoms (TNS) has donated databases to the Commission containing information on residential phone usage collected from actual consumer telecommunications bills. TNS has granted the Commission permission to use these databases for research purposes and to publish the industry level results. TNS has been monitoring the telecommunications market since 1995 through both the ReQuestฎ consumer survey and Bill Harvestingฎ in the residential market and the BusinessWaveฎ business survey in the business market. Tables 9.5, 9.6, and 14.1 - 14.6 are developed from these databases. For additional information, visit www.tnstelecoms.com or contact them at 1-866-811-TNST or by e-mail at contact@tnstelecoms.com. Their address is 101 Greenwood Avenue, Suite 502, Jenkintown, PA 19046. On June 12, 2008, the Commission released its Fifth Report to the Congress on the Availability of Advanced Telecommunications Capability in the United States. A copy of this can be found on the Commission’s web site at http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-08-88A1.pdf. A copy may also be obtained through from the Commission’s duplicating contractor. Copies of NTIA’s 2010 report entitled, Digital Nation: 21 st Century America’s Progress Toward Universal Broadband Internet Access, as well as NTIA’s 2008 report entitled, Networked Nation: Broadband in America 2007 can be obtained through NTIA’s web site at www.ntia.doc.gov or by contacting NTIA’s Office of Public Affairs at (202) 482-7002. Tables 17.1, 17.2, and 17.4 contain information from the ARMIS 43-07 reports for the Bell operating companies. Table 17.3 contains information from the ARMIS 43-05. Individual carrier information can be obtained from the ARMIS web page at www.fcc.gov/wcb/armis. Chart 17.1 shows the number of patents granted for telecommunications. Additional information on U.S. patents can be found on the Internet at www.uspto.gov. The National Exchange Carrier Association (NECA) administers access charge revenue pooling for about 1,100 local telephone companies. Their headquarters is located at 80 South Jefferson Road, Whippany, NJ 07981-1009, and they can be reached at 800-228-8597. NECA’s website can be found on the Internet at www.neca.org. 21 - C The United States Telecom Association (USTA) (1401 H Street N.W., Washington, D.C. 20005, 202-326-7300) represents most incumbent local telephone companies. Like many trade associations, it collects information from each of its members. It publishes and sells various reports including an annual publication called Phone Facts. USTA’s website can be found on the Internet at www.usta.org. Comptel/ALTS was formed in March 2005 by the merger of Comptel/ASCENT and the Association for Local Telecommunications Services (ALTS) and is currently located at 900 17 th Street, N.W., Suite 400, Washington, D.C. 20006, 202-296-6650). They represent facilities- based competitive telecommunications service providers, emerging VOIP providers, integrated communications companies, and their service partners, and can be found on the Internet at http://www.comptel.org. 22 - A 22 Appendix C – Contacting the Report Authors Trends in Telephone Service was prepared by the Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission. Principal authors of the report can be contacted at their electronic mail addresses or by calling the Industry Analysis and Technology Division at 202-418-0940. Users of TTY equipment should call 202- 418-0484. Access Charges .............................................................................................................James Eisner Advanced Telecommunications...................................................James Eisner or Suzanne Mendez Consumer Expenditures......................................................................... James Eisner or Jim Lande Earnings ................................................................................................................. Stephen Steckler Employment and Labor Productivity........................................................................Kenneth Lynch International Telephone Service .......................................................................................Jim Lande Lines and Payphones...........................................................................James Eisner or Craig Stroup Local Telephone Competition......................................................James Eisner or Suzanne Mendez Long Distance Telephone Industry...................................................................................Jim Lande Minutes .........................................................................................................................James Eisner Mobile Wireless Service...............................................................................................James Eisner Price Indices for Telephone Service ..................................................................Jonathan Kraushaar Price Levels..................................................................................Jonathan Kraushaar or Jim Lande Residential Telephone Usage....................................................................................Kenneth Lynch Revenues...........................................................................................................................Jim Lande Subscribership...............................................................................................................James Eisner Technology and Infrastructure........................................Jonathan Kraushaar or Michael Goldstein Telephone Numbers and Area Codes ...........................................................................Craig Stroup Universal Service - High Cost ......................................................................................James Eisner Universal Service – Lifeline/Link-Up .........................................Suzanne Mendez or James Eisner Universal Service – Rural Health Care.........................................................................Craig Stroup Universal Service – Schools and Libraries ...................................................................Craig Stroup Electronic mail addresses are: Craig Stroup.................................................................................................. Craig.Stroup@fcc.gov James Eisner..................................................................................................James.Eisner@fcc.gov Jim Lande.......................................................................................................... Jim.Lande@fcc.gov Jonathan Kraushaar............................................................................ Jonathan.Kraushaar@fcc.gov Kenneth Lynch.......................................................................................... Kenneth.Lynch@fcc.gov Michael Goldstein................................................................................ Michael.Goldstein@fcc.gov Stephen Steckler......................................................................................Stephen.Steckler@fcc.gov Suzanne Mendez .....................................................................................Suzanne.Mendez@fcc.gov Customer Response Publication: Trends in Telephone Service – September 2010 You can help us provide the best possible information to the public by completing this form and returning it to the Industry Analysis and Technology Division of the FCC's Wireline Competition Bureau. 1. Please check the category that best describes you: ____ press ____ current telecommunications carrier ____ potential telecommunications carrier ____ business customer evaluating vendors/service options ____ consultant, law firm, lobbyist ____ other business customer ____ academic/student ____ residential customer ____ FCC employee ____ other federal government employee ____ state or local government employee ____ Other (please specify) 2. Please rate the report: Excellent Good Satisfactory Poor No opinion Data accuracy (_) (_) (_) (_) (_) Data presentation (_) (_) (_) (_) (_) Timeliness of data (_) (_) (_) (_) (_) Completeness of data (_) (_) (_) (_) (_) Text clarity (_) (_) (_) (_) (_) Completeness of text (_) (_) (_) (_) (_) 3. Overall, how do you Excellent Good Satisfactory Poor No opinion rate this report? (_) (_) (_) (_) (_) 4. How can this report be improved? 5. May we contact you to discuss possible improvements? Name: Telephone #: To discuss the information in this report: call (202) 418-0940 or for users of TTY equipment, call (202) 418-0484 Fax this response to or Mail this response to 202-418-0520 FCC/WCB/IATD Washington, DC 20554