7 - 1 7. Rates and Price Indices This section contains information on telephone price indices and rate levels. It describes and presents a series of price indices maintained by the Bureau of Labor Statistics (BLS). It also discusses rate levels and changes in average rate levels. Telephone Service Price Indices The 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/data. The monthly price indices represent prices sampled in the middle of the month. A Consumer Price Index for telephone services was first published in 1935. 1 Since that time, telephone prices have tended to increase at a slower pace than most other prices. Table 7.1 shows long-run 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 public utilities. The price of telephone service has increased less rapidly than the prices of most of these categories when viewed over a long period of time. Chart 7.1 shows the levels of the overall CPI and the CPI for telephone services over time. 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 both local and long distance services. The annual rate of change during recent years is shown in Table 7.2 for the overall CPI (which measures the impact of inflation on consumers), and the CPI for telephone services. In addition, Table 7.2 shows the Gross Domestic Product chain-type price index (which reflects inflation throughout the economy) prepared by the Bureau of Economic Analysis. Chart 7.2 shows the changes in the overall CPI and the CPI for telephone services over time. For 2009 the nation's overall level of prices (measured by the CPI for all items) rose by 2.7%. The CPI for telephone services rose by 1.0% during 2009. During 2009, the local service component (including subscriber line charges) rose by 3.2%; the price index for interstate toll calls rose by 1.8%, and the price index for intrastate toll calls increased by 2.1%. The levels of these three indexes over time are shown in Chart 7.3. The Bureau of Labor Statistics publishes a number of price indices related to local telephone service, two of which are important to the monitoring program. The CPI index of local telephone charges is based on a broadly defined "market basket" of local services that includes monthly service charges, message unit charges, leased equipment, installation, service 1 BLS publishes two sets of Consumer Price Indices. The CPI-U, used herein, is based on expenditures of all urban consumers. The CPI-W series is based on expenditures of urban wage earners and clerical workers. 7 - 2 enhancements (such as tone dialing and call waiting), taxes, subscriber line charges, and all other consumer expenditures associated with local telephone services except long distance 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 tone dialing service, and subscriber line charges. It excludes taxes and all other telephone service charges. The annual rates of change for these two indices are presented in Table 7.3. There are also CPI and PPI data available for intrastate toll and interstate toll services. Table 7.3 also presents the annual changes in these series for recent years. 2 Price indices are less reliable when industries are changing rapidly. For example, in 1992, long distance carriers began to increase basic long distance rates while at the same time greatly expanding their range of discount offerings aimed at medium and heavy users of long distance service. The fixed market basket of toll calls measured for the CPI did not fully reflect these discounts. In 1998, the CPI for telephone services was altered to include cellular telephone services, making the new index not directly comparable to prior years. In 1995, BLS made major changes to the PPI telephone series, and there are no data after July 1995 comparable with prior data. At that time the BLS introduced revenue-weighted telephone price indices. The new indices categorize the telephone industry into much finer detail, though the new series are not comparable to the old in many categories. Monthly data for the new CPI telephone indices are shown in Table 7.4. With the release of data for January 2004, the Producer Price Index program changed its basis for industry classification from the 1987 Standard Industrial Classification (SIC) system to the North American Industry Classification System (NAICS). Developed in cooperation with Canada and Mexico, NAICS represents a profound change for statistical programs focusing on emerging economic activities. The system was developed using a production-oriented conceptual framework, grouping establishments into industries based on the activity in which they are primarily engaged. While many NAICS industries directly compare with SIC industries, a number of SIC industries were split or combined to form a new NAICS industry. The PPI treats the SIC-to-NAICS comparison as continuous if 80 percent or more of the weight of the SIC-based index comprises at least 80 percent of the weight of the NAICS-based index. All index series that have passed this test are published under the NAICS structure using the index base date and price index history established by the SIC-based index. Documentation of the NAICS to SIC concordance for all subsectors, industry groups, and products may be found at http:// www.bls.gov/ppi/ppinaics.htm. 3 2 In January 2010, BLS discontinued collecting four land-line telephone indexes. These indexes include local charges, long distance, interstate toll calls and intrastate toll calls. The PPI continues to release these sub-indexes. These indexes have become less meaningful in recent years as bundling of telephone services has become more common in the land-line telephone industry. 3 Several telecommunications PPIs published by the BLS under the SIC classification system are no longer published following the conversion to NAICS. These include “Other Local Service” (SIC pcu4813#114), “Other Local Service except Directory Assistance” (SIC pcu4813#11409), “LEC Intrastate Private Line Service” (SIC pcu4813#311), “Directory Advertising” (SIC pcu4813#91), and “Other Telephone Services” (SIC pcu4813#99). In addition, “Directory Assistance” (SIC pcu4813#11401) is now classified as “Other Local 7 - 3 The current PPI indices are shown in Table 7.5. Information on Rate Levels Because of the sorts of difficulties mentioned above related to constructing price indices, measures of average revenues are sometimes used as alternatives to price indices. Table 7.6 contains average revenue per minute for interstate calls. These estimates show that billed revenue per minute has declined over time for both international and domestic services. The FCC survey of local rates reported in previous Monitoring Reports was not conducted since 2007. Therefore, the rates reported in Tables 7.6 and 7.7 of the 2008 Monitoring Report are the most recent ones available. Subscriber Line and 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. Prior to 1984, AT&T provided almost all interstate long distance service while its local telephone companies provided about three-quarters of the nation’s local telephone service. Under the regulatory oversight of the FCC and state public utilities commissions, for many years AT&T set long distance charges above cost and shared part of its revenues with Bell System and independent local companies. This system reduced pressures on the local companies to raise monthly local rates, but the high long distance rates suppressed demand for long distance calls and induced 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 long distance industry. In mid-1984, the FCC, in cooperation with a Federal-State Joint Board comprised of both federal and state regulators, introduced sweeping changes to the way that local 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 for the origination and termination of interstate traffic on their local networks. In particular, 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 -- the introduction of SLCs permitted reductions in implicit subsidies from long distance service 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. Service” (NAICS 517110114) and “Telephone Communications except Radiotelephone” is now referred to as “Wired Telecommunications Carriers”. 7 - 4 In mid-1997, as part of its implementation of the 1996 Telecommunications Act, the FCC introduced further interstate access charge reform. 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. A further access charge reform was adopted on May 31, 2000, which eliminated the PICC and consolidated it with the SLC. This took effect on July 1, 2000. 4 Average monthly SLCs and PICCs are shown in Table 7.7 and average per-minute rates charged to long distance carriers are shown in Table 7.8. Both tables report historical averages for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and LECs in the National Exchange Carrier Association (NECA) pool. These LECs control over 98% of the telecommunications industry's access lines regulated under Title II of the Telecommunications Act of 1996. 5 Current per-line charges and per-minute charges are reported for each of the carriers in Tables 7.9 and 7.10, respectively. The averages in Table 7.8 clearly illustrate the effectiveness of access reform in reducing the prices long distance carriers pay per minute for access to the local telephone companies' networks. The reductions in per-minute access prices over time have been a major contributing factor to reductions in long distance prices. 4 Access Charge Reform, CC Docket No. 96-262, Sixth Report and Order, 15 Rcd. 12962 (CALLS Order). 5 Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996) (1996 Act). The 1996 Act amended the Communications Act of 1934. 47 U.S.C. §§ 151 et seq. 1959 - 2009 1999 - 2009 CPI All Items 4.1 % 2.5 % CPI All Services 4.9 3.1 CPI Telephone Services 1 1.7 0.3 CPI Major Categories: - Food & Beverages * 2.8 - Housing * 2.7 - Apparel 1.9 -0.9 - Transportation 4.6 2.9 - Medical Care 5.9 4.1 - Recreation * 1.0 - Other Goods & Services * 3.7 CPI Public Transportation 5.0 2.0 CPI Utility (Piped) Gas Service 4.9 5.0 CPI Electricity 3.7 4.2 CPI Water & Sewerage Maintenance 5.7 5.1 CPI Postage 4.7 3.2 Source: Bureau of Labor Statistics. Table 7.1 (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 7.1 CPI All Items and CPI Telephone Services Base Periods: 1982-84 = 100 0 50 100 150 200 250 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 CPI All Items CPI Telephone Services 7 - 5 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 2.9 2.5 1.7 2007 2.6 4.1 2.1 2008 2.1 0.1 2.9 2009 0.4 2.7 1.0 * The CPI telephone service index was revised in December of 1997. Sources: Bureau of Labor Statistics and Bureau of Economic Analysis. Table 7.2 Annual Changes in Major Price Indices CPI - All Items CPI - Telephone Services CPI All Items and CPI Telephone Services Chart 7.2 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 Percen t Ch an g e f r o m Prio r Year CPI All Items CPI Telephone Services 7 - 6 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 2009 3.2 0.8 1.8 6.2 2.1 2.0 Note: Data reflect the percent change from December of the previous year through December of the year shown. Source: Bureau of Labor Statistics. 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. CPI Telephone Service Price Indices Chart 7.3 Base Periods: December 1997 = 100 Table 7.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services Local Residential Service Toll Service 1 Interstate Intrastate 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 7 - 7 All Goods and Services Telephone Services Land-line Telephone Services, Local Charges Land-line Telephone Services, Long- Distance Charges Land-line Interstate Toll Calls Land-line Intrastate Toll Calls Wireless Telephone Services CUUR0000SA0 CUUR0000SEED CUUR0000SEED01 CUUR0000SEED02 CUUR0000SS27051 CUUR0000SS27061 CUUR0000SEED03 2004 January 114.8 97.0 124.4 73.9 71.6 78.0 66.3 February 115.4 97.1 124.2 73.9 71.6 77.8 66.6 March 116.2 96.7 124.2 73.1 70.6 77.2 66.5 April 116.6 96.5 123.9 72.8 70.1 77.2 66.4 May 117.2 95.9 124.2 71.3 68.8 75.5 66.5 June 117.6 95.8 124.2 71.2 68.4 75.4 66.4 July 117.4 95.6 124.7 70.1 67.6 74.2 66.5 August 117.5 95.0 124.7 68.7 66.0 72.9 66.5 September 117.7 95.3 124.9 69.6 67.0 73.9 66.3 October 118.4 94.6 125.2 68.3 65.7 72.6 65.5 November 118.4 94.9 125.1 69.3 66.4 74.0 65.5 December 118.0 94.8 125.5 68.6 65.7 73.4 65.6 2005 January 118.2 94.8 125.9 68.5 65.7 72.9 65.3 February 118.9 95.1 126.9 68.5 65.3 73.8 65.4 March 119.8 95.0 127.4 67.9 64.9 72.5 65.2 April 120.6 95.3 127.8 68.4 64.9 73.4 65.2 May 120.5 94.8 127.3 67.5 64.0 72.6 65.2 June 120.6 94.6 127.5 67.1 63.7 72.1 65.2 July 121.1 94.4 128.0 66.7 63.3 72.3 64.7 August 121.8 94.1 128.6 65.5 62.0 71.2 64.7 September 123.2 95.1 128.6 67.7 64.5 73.4 64.8 October 123.5 94.6 128.8 66.5 63.2 72.1 64.8 November 122.5 95.2 129.1 67.8 64.1 74.0 64.6 December 122.0 95.2 129.5 67.4 63.7 73.7 64.6 2006 January 122.9 95.2 129.1 67.7 64.1 73.8 64.6 February 123.2 95.2 129.2 67.7 64.2 73.8 64.6 March 123.9 95.0 129.4 67.2 63.8 72.9 64.6 April 124.9 95.4 129.5 68.4 64.9 74.4 64.3 May 125.5 95.2 129.8 67.7 64.1 73.8 64.3 June 125.8 95.4 130.0 67.9 64.5 73.9 64.4 July 126.2 95.6 130.7 67.6 64.1 73.5 64.7 August 126.4 95.9 131.2 68.2 64.8 73.9 64.6 September 125.8 96.1 131.8 68.3 65.0 74.0 64.7 October 125.1 96.8 131.9 69.8 67.0 75.5 64.6 November 124.9 96.5 132.0 69.3 66.8 75.3 64.6 December 125.1 96.8 132.4 69.6 66.9 76.1 64.6 2007 January 125.5 96.9 132.5 69.8 67.2 75.9 64.6 February 126.2 97.1 133.3 69.9 67.2 75.9 64.6 March 127.3 97.5 133.9 70.5 67.2 76.7 64.6 April 128.1 97.6 134.6 70.3 67.5 76.6 64.6 May 128.9 98.5 135.0 72.2 68.5 80.6 64.5 June 129.2 98.5 135.3 72.2 68.5 80.8 64.4 July 129.1 98.6 136.1 72.0 68.5 80.8 64.3 August 128.9 98.8 136.6 72.2 68.7 81.1 64.4 September 129.3 98.9 137.0 72.2 68.7 81.0 64.4 October 129.5 99.0 137.6 72.1 68.7 80.9 64.4 November 130.3 98.8 137.5 72.0 68.7 80.7 64.0 December 130.2 98.8 137.8 71.9 68.5 80.6 64.0 2008 January 130.9 98.9 138.0 72.0 68.5 80.7 64.1 February 131.2 98.8 137.9 71.8 68.5 80.3 64.1 March 132.4 99.0 138.5 72.0 68.4 80.8 64.1 April 133.2 99.5 139.6 72.2 68.7 81.1 64.3 May 134.3 99.9 140.1 73.1 70.2 81.9 64.3 June 135.7 100.7 140.5 75.5 72.0 85.7 64.3 July 136.4 101.3 141.9 76.6 72.8 87.6 64.3 August 135.8 101.3 141.5 76.8 72.8 88.0 64.3 September 135.6 101.3 141.6 76.7 72.8 88.0 64.3 October 134.3 101.4 141.7 76.9 73.1 88.2 64.3 November 131.7 101.5 142.0 77.0 73.4 88.0 64.4 December 130.3 101.7 142.0 77.5 74.7 88.3 64.4 2009 January 130.9 101.9 142.6 77.6 74.8 88.4 64.4 February 131.6 101.9 142.7 77.6 74.7 88.3 64.4 March 131.9 102.0 142.9 77.8 74.9 88.6 64.4 April 132.2 102.1 143.2 77.7 74.9 88.8 64.4 May 132.6 102.3 144.0 77.8 74.9 88.9 64.4 June 133.7 102.2 143.8 77.6 74.6 88.9 64.4 July 133.5 102.6 144.6 78.5 75.5 90.1 64.4 August 133.8 102.7 145.0 78.2 75.2 89.6 64.4 September 133.9 103.0 145.7 78.6 75.6 90.1 64.4 October 134.0 102.9 145.8 78.2 75.6 89.8 64.4 November 134.1 102.5 146.3 78.5 75.6 89.9 63.6 December 133.9 102.7 146.4 79.0 76.0 90.1 63.6 Note: Figures for All Goods and Services, Local Telephone Service, Interstate Toll Service, and Intrastate Toll Service after May, 2000 are converted from 1982-1984 base index series reported by the Bureau of Labor Statistics. Historical data on these series based upon the 1982-1984 index for January 1972 through March 2002 can be found in the Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report (October 2002). Table 7.4 Monthly Consumer Price Indices (December 1997 = 100) BLS Series ID 7 - 8 Wired Telecommunications Carriers Local Service, except Private Lines Residence Local Service Business Local Service Coin Local Service Other Local Service NAICS Series ID 517110 5171101 517110111 517110112 517110113 517110114 2002 January 105.1 98.2 97.2 99.4 100.3 87.2 February 104.6 98.2 97.2 99.4 100.3 87.2 March 104.4 98.3 97.2 99.4 100.4 87.2 April 103.9 98.3 97.3 99.4 100.4 87.2 May 104.4 98.3 97.3 99.4 100.4 87.2 June 104.2 98.4 97.4 99.5 100.4 87.2 July 103.8 98.8 98.0 99.6 100.4 99.3 August 104.3 98.8 98.0 99.6 100.4 99.3 September 104.2 98.8 98.1 99.5 100.0 99.7 October 101.6 98.8 98.1 99.5 100.0 99.7 November 102.7 98.8 98.1 99.5 100.0 99.7 December 102.2 98.8 98.1 99.5 100.0 99.7 2003 January 101.8 98.8 98.1 99.5 100.0 99.7 February 102.0 98.8 98.1 99.5 100.0 99.7 March 101.9 98.8 98.1 99.5 100.0 99.7 April 101.6 99.3 98.7 99.9 100.0 99.7 May 102.1 99.6 99.2 100.0 100.0 99.7 June 102.1 99.8 99.7 100.0 100.0 99.7 July 102.2 100.0 100.0 100.0 100.0 100.0 August 102.3 100.0 100.0 100.0 100.0 100.0 September 101.9 100.0 100.0 100.0 100.0 100.0 October 101.3 100.0 100.0 100.0 100.0 100.0 November 100.7 100.0 100.0 100.0 100.0 100.0 December 100.0 100.0 100.0 100.0 100.0 100.0 2004 January 100.4 100.2 100.3 100.0 100.0 100.0 February 99.8 100.2 100.3 100.0 100.0 100.0 March 100.0 100.2 100.3 100.0 100.0 100.0 April 99.8 100.2 100.3 100.0 100.0 100.0 May 99.5 100.2 100.3 100.0 100.0 100.0 June 99.6 100.2 100.3 100.0 100.0 100.0 July 99.4 100.2 100.3 100.0 100.0 100.0 August 99.5 100.2 100.3 100.0 100.0 100.0 September 99.2 100.2 100.4 100.1 100.0 100.2 October 99.0 100.3 100.5 100.1 100.0 100.6 November 98.9 100.4 100.6 100.1 100.0 100.6 December 98.6 100.4 100.7 100.1 100.0 100.6 2005 January 98.9 100.8 101.3 100.2 100.0 100.6 February 98.3 100.8 101.3 100.3 99.8 100.6 March 98.5 100.8 101.3 100.3 99.6 100.6 April 98.8 100.8 101.3 100.4 99.4 100.6 May 98.9 100.8 101.3 100.4 99.4 100.6 June 99.1 100.8 101.3 100.4 99.4 100.6 July 99.4 100.9 101.5 100.4 99.4 100.6 August 99.4 100.9 101.5 100.4 99.4 100.6 September 99.1 100.9 101.5 100.4 99.4 100.6 October 99.2 100.9 101.5 100.4 99.4 100.6 November 98.9 100.9 101.5 100.4 99.4 100.6 December 98.9 100.9 101.6 100.4 99.4 100.6 2006 January 98.6 101.1 101.9 100.5 99.4 100.6 February 98.5 101.3 102.3 100.5 99.4 100.6 March 99.0 101.4 102.4 100.5 99.4 100.6 April 98.8 101.4 102.4 100.6 99.4 102.1 May 99.1 101.9 103.3 100.6 99.4 102.1 June 99.5 102.0 103.3 100.8 99.4 102.1 July 99.9 102.0 103.4 100.8 99.4 102.1 August 100.3 102.2 103.7 100.8 99.4 102.1 September 100.7 102.2 103.7 100.8 99.4 102.1 October 101.4 102.2 103.7 100.8 99.4 102.1 November 100.8 102.6 104.2 101.1 99.4 102.1 December 101.6 102.7 104.3 101.3 99.4 102.1 2007 January 101.1 102.8 104.3 101.3 99.4 103.5 February 101.3 102.8 104.4 101.3 99.4 103.5 March 101.9 102.9 104.3 101.8 99.4 103.5 April 102.3 102.9 104.3 101.8 99.4 103.5 May 102.3 102.9 104.3 101.8 99.4 103.5 June 103.0 102.9 104.3 101.8 99.4 103.5 July 104.0 103.1 104.7 101.8 99.4 103.5 August 103.6 103.7 105.8 101.7 99.4 102.7 September 104.3 103.8 106.0 101.7 99.4 102.7 October 104.2 103.8 106.1 101.7 99.4 102.7 November 103.7 103.8 106.0 101.7 99.4 102.7 December 103.7 103.8 106.0 101.7 99.4 102.7 2008 January 103.5 104.2 106.6 101.7 99.4 102.7 February 104.2 104.2 106.6 101.7 99.4 102.7 March 104.2 104.2 106.7 101.7 99.4 102.7 April 104.0 104.2 106.7 101.7 99.4 102.7 May 104.6 104.2 106.7 101.7 99.4 102.7 June 104.5 104.2 106.7 101.7 99.4 102.7 July 104.7 104.0 106.4 101.7 99.4 102.7 August 104.9 104.0 106.4 101.7 99.4 102.7 September 105.0 104.1 106.5 101.7 99.4 102.7 October 105.1 104.1 106.6 101.7 99.4 102.7 November 105.1 104.2 106.7 101.7 99.4 102.7 December 105.1 104.1 106.5 101.7 99.4 102.7 2009 January 105.0 104.2 106.7 101.7 99.4 102.7 February 104.6 104.2 106.7 101.7 99.4 102.7 March 104.6 104.2 106.7 101.7 99.4 102.7 April 104.5 104.2 106.7 101.7 99.4 102.7 May 104.8 104.2 106.7 101.7 99.4 102.7 June 105.3 104.2 106.7 101.7 99.4 102.7 July 105.4 104.2 106.7 101.7 99.4 102.7 August 105.8 104.5 107.3 101.7 99.4 102.7 September 105.5 104.5 107.3 101.7 99.4 102.7 October 105.3 104.5 107.3 101.8 99.4 102.8 November 105.0 104.6 107.4 101.8 99.4 102.8 December 105.0 104.6 107.4 101.8 99.4 102.8 Note: The values for the last several months are subject to revision. Table 7.5 Monthly Producer Price Indices (December 2003 = 100) 7 - 9 Public Switched Toll Service Residence Switched Toll Service Intrastate Residence Switched Toll Service Interstate Residence Switched Toll Service International Residence Switched Toll Service Business Switched Toll Service Business Switched Access Toll Service NAICS Series ID 5171102 51711021 517110211 517110212 517110213 51711022 517110221 2002 January 114.3 116.2 114.0 121.2 140.6 111.3 112.4 February 113.1 114.2 114.5 116.1 135.6 111.6 113.5 March 112.6 113.3 114.2 115.3 128.6 111.5 113.8 April 111.4 112.5 113.8 112.7 131.9 109.8 113.6 May 112.4 112.0 113.9 111.7 129.7 113.0 114.1 June 112.0 111.7 113.6 110.5 133.1 112.4 115.0 July 110.5 111.4 113.2 110.1 134.5 109.2 111.5 August 111.7 112.8 115.8 110.8 135.2 110.1 112.0 September 111.4 111.3 115.8 107.2 132.3 111.4 112.6 October 105.1 103.4 115.6 86.5 125.9 107.7 110.0 November 107.8 108.4 115.2 101.8 122.4 106.8 108.1 December 106.7 108.4 114.4 102.5 123.3 104.0 106.9 2003 January 105.7 107.1 114.2 99.2 122.3 103.5 105.9 February 106.1 106.9 104.5 110.4 118.9 105.0 106.7 March 105.9 107.0 104.4 111.0 118.2 104.2 105.1 April 104.7 104.8 103.8 106.3 113.8 104.6 106.3 May 105.4 106.6 104.1 111.7 109.9 103.5 103.9 June 105.1 105.7 104.1 109.7 108.1 104.2 105.7 July 105.3 106.5 103.8 110.6 116.2 103.6 103.7 August 105.5 106.6 103.6 111.8 113.1 103.9 103.9 September 104.5 104.7 102.7 108.5 108.4 104.2 104.7 October 103.1 104.0 102.0 108.1 104.0 101.8 103.0 November 101.7 102.0 101.2 104.0 101.6 101.2 100.5 December 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2004 January 100.7 101.1 99.3 104.1 98.4 100.1 100.1 February 99.5 99.3 98.7 99.4 100.3 99.7 99.5 March 99.7 100.2 98.3 103.9 93.2 99.0 98.8 April 99.2 99.8 98.1 102.3 95.7 98.5 98.1 May 98.7 99.5 98.0 102.4 93.0 97.4 96.7 June 98.8 99.6 98.1 102.9 91.1 97.7 97.4 July 98.3 99.7 98.4 102.2 94.2 96.3 96.5 August 98.6 100.6 98.5 104.4 94.7 95.6 96.0 September 97.9 99.6 97.8 102.9 91.7 95.5 95.7 October 97.3 99.8 98.2 103.2 91.6 93.7 93.5 November 96.9 98.8 97.9 102.1 85.5 93.9 94.6 December 96.2 98.1 97.1 100.7 86.5 93.3 93.2 2005 January 96.5 98.8 97.4 101.7 89.6 93.1 92.8 February 94.9 96.8 96.1 97.7 89.2 92.0 91.7 March 95.5 98.7 96.8 101.8 90.5 90.8 91.3 April 96.1 98.9 97.0 101.6 93.4 91.9 91.8 May 96.3 100.1 97.0 105.6 90.9 90.5 89.8 June 96.8 100.6 97.8 105.8 92.3 91.1 90.7 July 97.4 102.2 98.2 108.5 98.1 90.2 89.9 August 97.3 102.3 98.0 109.1 98.0 89.9 89.7 September 96.8 100.9 97.9 105.3 97.9 90.6 89.7 October 96.8 101.5 98.1 107.4 94.9 89.9 89.3 November 96.2 101.0 97.5 107.2 93.1 88.9 90.3 December 96.1 101.5 97.3 108.2 95.4 87.9 88.8 2006 January 95.2 100.4 97.5 104.5 96.8 87.4 88.3 February 94.5 99.9 96.4 105.4 91.8 86.6 87.6 March 95.6 101.8 96.6 110.6 91.8 86.4 87.2 April 95.2 100.7 97.4 106.2 93.4 86.9 88.0 May 95.2 102.9 94.7 115.8 91.8 83.8 84.0 June 96.1 103.4 97.5 113.3 95.6 85.1 85.8 July 97.0 105.0 97.8 116.2 101.8 84.9 85.7 August 97.7 106.0 98.1 119.3 98.5 85.2 86.7 September 98.8 107.3 98.3 123.0 97.3 86.0 87.0 October 100.4 109.9 98.3 129.0 97.8 86.2 86.2 November 98.6 108.1 98.4 125.2 95.7 84.4 86.2 December 100.4 110.9 98.5 130.5 100.9 84.5 85.9 2007 January 98.3 106.1 97.7 118.0 113.9 85.4 86.6 February 99.0 108.6 100.2 119.6 120.5 84.1 85.4 March 100.7 111.3 100.6 124.3 120.6 85.0 84.7 April 102.1 115.1 102.3 128.8 126.3 83.8 84.2 May 102.2 115.4 103.7 129.3 124.7 83.7 83.5 June 104.3 119.2 104.8 134.7 128.2 84.0 84.3 July 107.5 125.6 105.9 144.3 133.6 83.8 85.6 August 105.1 122.4 106.8 137.7 134.6 82.3 83.9 September 107.2 126.1 106.9 144.2 135.1 82.8 81.9 October 106.9 127.0 108.4 146.6 131.2 81.1 80.7 November 105.2 124.7 106.6 145.2 124.4 79.9 79.2 December 105.2 124.0 107.6 144.6 120.9 80.6 78.1 2008 January 103.9 120.7 106.2 139.7 118.7 81.8 79.8 February 106.2 124.7 107.7 147.0 117.1 82.3 79.0 March 106.2 124.9 108.3 149.3 110.1 82.2 77.5 April 105.5 122.6 109.0 144.3 111.0 83.4 78.6 May 107.4 127.2 109.7 153.2 108.9 82.5 77.3 June 107.1 127.6 110.3 155.9 101.7 81.5 76.3 July 108.3 129.5 110.6 158.2 105.2 81.8 77.0 August 108.9 132.8 111.2 162.5 110.2 79.5 76.3 September 109.1 133.4 111.4 163.8 109.1 79.1 75.6 October 109.2 134.2 111.7 165.3 108.4 78.5 75.4 November 109.0 134.9 112.2 166.4 108.4 77.3 74.9 December 109.3 134.8 112.1 166.7 107.2 77.9 75.1 2009 January 108.6 133.6 111.9 164.1 108.4 77.8 75.5 February 107.2 131.8 111.8 160.9 108.4 76.9 74.9 March 107.5 133.0 111.9 162.0 111.7 76.1 74.3 April 106.9 132.5 112.0 160.9 112.1 75.4 73.5 May 108.3 135.5 112.4 166.3 111.9 75.2 73.5 June 109.9 138.3 113.1 171.3 111.7 75.6 73.8 July 110.2 139.0 113.4 172.2 112.4 75.4 73.1 August 110.8 141.0 113.9 174.9 114.9 74.5 73.1 September 110.0 141.0 114.1 174.6 115.4 72.8 72.1 October 109.4 141.5 114.2 175.6 114.8 70.8 70.9 November 108.1 141.2 114.4 175.5 113.4 68.2 69.7 December 108.1 142.0 114.3 177.0 113.5 67.2 69.0 Note: The values for the last several months are subject to revision. Table 7.5 Monthly Producer Price Indices - Continued (December 2003 = 100) 7 - 10 Outbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Outbound Interstate Business Switched Access Toll Service, Outbound International Business Switched Access Toll Service, Outbound Inbound Business Switched Access Toll Service Intrastate Business Switched Access Toll Service, Inbound Interstate Business Switched Access Toll Service, Inbound International Business Switched Access Toll Service, Inbound NAICS Series ID 5171102211 51711022111 51711022112 51711022113 5171102212 51711022121 51711022122 51711022123 2002 January 122.0 105.7 176.0 145.0 99.0 101.2 98.5 81.0 February 121.5 105.6 172.5 146.2 102.3 104.3 104.9 82.2 March 123.1 105.4 179.6 151.0 100.9 105.2 100.3 86.2 April 122.1 105.1 170.7 160.0 101.7 101.0 105.5 78.8 May 121.6 103.9 155.6 190.4 103.7 105.4 107.2 88.8 June 122.5 104.4 165.5 178.1 104.4 104.2 109.7 88.8 July 118.4 104.1 154.8 158.4 101.9 105.3 102.9 85.3 August 116.5 104.0 152.4 143.4 105.6 107.7 110.5 91.2 September 117.2 104.0 153.3 148.8 106.3 108.1 109.4 119.5 October 114.7 103.5 153.2 127.5 103.4 104.2 103.7 126.5 November 113.8 103.0 150.8 125.2 100.2 101.6 99.6 98.9 December 110.9 102.5 139.1 121.4 101.4 100.2 103.5 98.1 2003 January 109.7 102.1 133.0 123.4 100.6 104.7 97.7 113.0 February 108.2 101.9 128.6 118.1 104.5 105.3 106.7 117.6 March 108.2 102.0 127.0 120.0 100.8 105.5 97.5 114.0 April 108.2 101.3 129.8 119.9 103.6 105.6 104.0 120.0 May 104.7 100.9 117.6 109.2 102.8 105.8 101.4 124.6 June 105.8 101.1 118.2 118.2 105.4 107.6 107.6 118.7 July 103.9 100.7 108.2 119.9 103.4 107.5 100.3 142.0 August 104.1 100.6 107.3 124.2 103.6 107.7 102.0 130.7 September 103.0 100.5 107.8 112.9 107.1 111.9 106.6 149.1 October 102.7 100.5 111.1 104.0 103.3 107.1 101.6 129.5 November 100.9 100.2 103.0 102.0 99.8 103.9 96.9 103.3 December 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2004 January 99.6 99.9 100.5 94.8 100.8 101.9 101.4 93.4 February 98.0 98.8 95.1 97.1 101.5 100.0 104.7 90.4 March 98.1 99.8 95.4 90.2 99.9 100.8 101.2 77.6 April 97.2 99.1 92.1 91.9 99.3 101.4 98.6 85.8 May 96.0 98.5 89.2 89.7 97.6 100.7 94.6 85.7 June 96.4 98.6 89.8 91.6 98.8 100.3 98.1 84.0 July 95.8 98.5 86.3 93.0 97.5 99.7 94.8 87.5 August 95.9 98.3 87.5 93.3 96.1 101.7 90.1 87.6 September 95.1 98.0 85.1 90.7 96.4 102.1 90.8 86.2 October 91.9 96.3 78.0 82.9 95.7 101.4 89.6 83.3 November 92.7 97.5 79.2 80.6 97.2 101.6 94.0 76.1 December 91.9 96.7 75.8 84.1 95.1 100.2 88.6 84.5 2005 January 90.9 96.5 73.8 79.8 95.3 99.2 90.4 78.7 February 90.9 96.5 74.1 79.2 92.8 97.8 84.9 77.3 March 90.6 96.4 73.8 76.6 92.2 99.1 82.5 79.6 April 90.7 96.5 74.6 76.1 93.2 101.4 83.8 78.3 May 89.1 95.9 69.7 72.3 90.8 101.5 77.8 75.1 June 89.1 96.3 68.6 72.7 92.9 99.8 84.0 75.8 July 88.2 96.0 66.2 69.6 92.3 99.9 82.4 77.1 August 88.3 95.8 67.4 69.1 91.7 99.6 81.6 72.0 September 87.5 95.5 65.6 66.7 92.7 97.5 85.2 73.1 October 87.4 95.4 65.7 65.7 92.0 97.0 84.1 70.1 November 87.7 95.9 65.9 65.4 93.8 98.7 88.0 65.0 December 86.9 95.4 64.2 63.7 91.5 97.4 81.9 77.5 2006 January 86.7 95.0 63.1 67.2 90.5 96.4 80.7 68.8 February 85.1 94.4 58.4 63.0 91.1 96.6 82.5 63.5 March 85.5 94.5 59.0 65.0 89.7 95.8 78.6 72.8 April 85.4 94.6 59.7 63.2 91.6 94.7 85.1 60.3 May 84.5 94.3 57.8 59.1 83.3 93.0 64.9 61.4 June 82.8 94.1 50.7 56.2 89.9 94.0 81.2 63.6 July 84.2 94.4 56.7 57.7 87.8 94.6 75.5 61.5 August 84.8 94.6 54.7 65.8 89.3 94.9 79.0 62.7 September 85.5 95.6 57.0 61.8 89.2 94.8 79.1 59.0 October 84.3 95.1 54.8 58.3 88.7 95.5 78.1 57.1 November 84.8 95.2 57.7 56.5 88.2 95.0 77.5 57.6 December 83.7 94.9 56.7 49.9 89.0 94.6 78.9 59.9 2007 January 84.8 94.9 58.1 51.0 89.0 94.6 79.4 57.5 February 83.4 94.6 57.2 47.2 88.1 94.2 78.0 58.2 March 83.0 94.8 56.1 48.3 86.9 94.5 74.2 64.6 April 82.5 94.7 57.3 41.9 86.3 94.6 74.6 58.8 May 82.3 94.9 56.2 43.8 85.0 94.5 73.5 54.2 June 82.9 95.1 56.9 44.3 86.0 94.5 74.0 59.1 July 84.2 95.4 58.3 45.8 87.4 94.7 75.8 61.0 August 81.2 94.6 54.0 46.1 87.7 94.4 76.0 63.7 September 79.4 94.1 51.3 47.1 85.5 93.4 73.4 60.5 October 76.7 93.6 48.8 42.2 86.7 93.8 74.6 63.6 November 74.7 93.0 45.6 43.9 86.0 94.6 73.3 61.6 December 74.4 93.0 45.3 43.0 83.6 93.3 70.1 61.7 2008 January 74.9 93.2 45.8 43.6 87.1 93.8 75.2 63.9 February 73.5 93.0 44.1 42.2 87.5 93.3 76.0 64.2 March 73.3 92.9 43.7 42.9 83.8 93.4 68.2 70.7 April 73.7 93.0 44.3 42.8 86.1 93.8 72.9 66.2 May 73.3 92.9 43.7 43.1 83.1 93.3 66.4 73.7 June 73.1 92.8 43.2 44.0 80.9 93.0 62.7 74.0 July 74.2 93.1 44.3 45.5 80.9 93.0 62.4 75.6 August 74.4 93.2 44.4 45.6 79.0 92.9 59.4 74.2 September 74.0 93.1 43.9 45.9 77.8 92.7 57.4 74.8 October 73.6 93.0 43.4 45.3 77.9 92.6 56.9 78.1 November 73.4 92.9 42.9 46.6 76.9 92.4 55.8 75.9 December 73.1 92.8 42.7 45.7 77.9 92.4 57.8 74.9 2009 January 73.8 92.8 43.6 46.4 77.8 92.2 58.2 73.1 February 72.9 92.6 42.0 47.8 77.6 92.1 58.2 71.5 March 72.4 92.6 41.7 45.9 76.8 91.9 57.2 71.0 April 71.4 92.4 40.7 44.6 76.3 91.8 56.6 69.8 May 71.6 92.4 40.9 45.0 76.1 91.9 56.5 68.6 June 71.6 92.3 40.5 46.3 77.0 92.3 57.8 68.4 July 71.8 92.4 40.7 46.6 74.8 91.7 54.7 67.4 August 72.6 92.5 41.4 48.1 73.5 91.5 52.4 67.8 September 72.8 92.4 40.9 51.2 70.5 91.0 48.4 65.0 October 72.2 92.3 40.9 48.2 68.3 90.9 45.1 63.6 November 71.7 92.3 40.7 46.3 66.1 90.6 42.0 61.5 December 71.4 92.4 40.5 45.2 64.8 90.6 40.7 57.8 Note: The values for the last several months are subject to revision. Table 7.5 Monthly Producer Price Indices - Continued (December 2003 = 100) 7 - 11 Business Special Access Switched Toll Service, except Private Lines Outbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Outbound Interstate Business Special Access Switched Toll Service, Outbound International Business Special Access Switched Toll Service, Outbound Inbound Business Special Access Switched Toll Service Intrastate Business Special Access Switched Toll Service, Inbound NAICS Series ID 517110222 5171102221 51711022211 51711022212 51711022213 5171102222 51711022221 2002 January 108.9 99.9 100.7 90.1 115.4 121.7 128.6 February 107.2 106.1 103.0 103.2 119.4 108.9 93.6 March 106.2 105.4 111.3 99.6 117.5 107.3 98.5 April 101.3 99.6 114.7 87.7 109.7 103.7 92.9 May 110.6 106.7 106.6 106.3 115.0 116.1 116.7 June 106.6 105.0 104.5 103.6 113.1 108.9 106.2 July 103.9 103.1 106.0 97.4 114.1 105.1 99.3 August 106.0 103.9 93.2 103.3 115.8 108.9 104.9 September 108.7 108.4 111.3 106.8 118.5 109.2 103.4 October 102.5 99.8 97.7 94.9 109.1 106.2 96.7 November 103.9 102.7 101.9 100.4 110.1 105.6 94.8 December 97.6 96.0 92.0 85.5 111.0 100.0 95.4 2003 January 98.2 94.7 100.9 88.1 95.9 103.2 110.5 February 101.3 97.8 90.6 96.0 102.7 106.2 95.5 March 102.1 101.3 99.9 104.2 98.8 103.1 105.5 April 100.8 98.2 100.5 89.0 110.2 104.6 97.9 May 102.7 101.7 89.1 98.7 116.1 104.1 104.1 June 100.9 97.4 94.2 92.1 105.0 106.0 96.1 July 103.5 106.7 109.1 108.9 109.0 98.9 104.5 August 103.8 105.2 105.8 105.5 109.9 101.8 90.8 September 102.9 104.7 107.7 101.7 112.9 100.3 107.2 October 99.2 99.4 98.5 99.8 98.7 98.9 98.6 November 102.9 104.9 105.1 107.1 106.7 100.0 102.7 December 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2004 January 100.3 99.2 101.1 98.7 98.1 101.8 101.1 February 100.1 100.5 91.0 111.5 88.8 99.5 96.0 March 99.5 96.6 90.6 104.1 84.0 103.7 102.5 April 99.3 97.7 98.1 104.4 83.9 101.6 95.7 May 99.0 97.5 93.1 104.3 86.2 101.2 99.0 June 98.4 96.7 93.5 103.0 84.4 100.8 103.3 July 95.7 95.0 91.8 97.3 87.7 96.7 97.8 August 94.7 93.4 94.1 92.7 86.7 96.7 99.1 September 95.2 93.3 96.0 94.1 83.1 97.9 106.0 October 94.1 93.8 93.8 93.2 87.8 94.6 98.3 November 92.5 91.7 87.9 91.8 84.7 93.6 92.3 December 93.6 91.9 90.1 91.8 84.0 96.0 96.6 2005 January 94.0 92.1 87.6 91.7 86.7 96.8 98.9 February 92.6 92.5 81.1 92.9 90.5 92.6 94.2 March 89.7 88.0 91.0 83.2 80.7 92.2 95.3 April 92.2 91.7 91.7 86.8 90.6 92.9 100.8 May 92.1 93.4 99.3 87.7 92.0 90.1 102.9 June 91.9 93.6 99.1 90.3 88.8 89.4 95.1 July 90.7 92.4 96.1 88.0 89.0 88.2 96.1 August 90.2 91.0 93.8 84.5 89.9 89.0 96.2 September 92.8 96.2 92.0 97.5 92.3 87.9 86.3 October 91.1 91.4 87.1 87.8 90.4 90.7 90.2 November 85.9 83.3 69.7 71.6 92.3 89.6 92.0 December 86.0 84.4 69.7 75.9 90.0 88.2 88.2 2006 January 85.3 84.1 74.1 76.5 84.7 87.1 87.7 February 84.2 83.4 68.0 73.3 90.9 85.4 83.2 March 84.5 84.7 73.6 78.3 85.0 84.2 82.4 April 84.5 85.5 68.1 84.1 82.0 83.0 75.6 May 83.4 80.8 69.3 70.9 82.6 87.2 90.3 June 83.6 83.4 64.7 76.9 87.1 83.8 75.8 July 83.1 82.7 68.1 74.1 86.3 83.8 80.8 August 81.9 81.2 66.0 72.6 83.5 82.9 82.1 September 83.6 83.5 67.2 72.5 93.2 83.6 82.6 October 86.3 82.6 68.9 72.0 90.2 91.4 85.6 November 80.3 79.3 69.3 70.3 82.6 81.9 82.8 December 81.4 80.6 65.0 71.7 87.1 82.5 80.9 2007 January 82.5 80.8 65.6 71.7 81.4 86.5 84.1 February 81.1 80.7 62.6 72.6 90.9 81.1 81.2 March 85.5 85.2 71.6 74.6 90.2 85.1 82.7 April 82.8 82.5 68.1 72.7 88.8 82.5 80.0 May 84.0 84.6 70.8 74.2 87.4 81.4 79.7 June 83.4 82.4 68.7 72.4 89.0 85.2 83.6 July 80.0 79.8 66.3 70.2 89.0 79.3 80.6 August 78.8 78.0 62.8 69.3 90.6 79.8 81.1 September 84.6 84.5 65.2 76.2 96.9 83.6 79.5 October 81.8 81.3 63.7 72.9 91.4 82.0 76.0 November 81.2 76.2 63.6 66.7 96.5 94.5 87.4 December 85.8 83.0 61.4 75.9 94.4 92.7 85.4 2008 January 86.1 83.6 62.8 76.1 93.4 92.2 76.9 February 89.0 85.7 63.3 78.4 95.4 97.2 82.7 March 92.1 89.9 63.0 83.5 96.8 97.4 83.3 April 93.5 91.9 62.5 86.0 98.0 96.8 83.3 May 93.5 91.3 65.3 84.3 98.9 98.4 83.6 June 92.3 90.4 64.5 83.5 99.2 96.7 82.5 July 91.9 91.6 64.6 84.9 100.9 91.5 82.1 August 86.0 84.3 63.9 76.3 101.6 90.0 81.1 September 86.5 85.2 63.5 77.6 101.5 88.9 80.5 October 84.9 83.4 63.3 75.5 102.7 88.0 80.2 November 82.2 79.0 62.6 70.4 101.3 90.5 79.3 December 83.7 81.3 62.1 73.5 98.7 89.6 78.7 2009 January 82.7 79.9 61.8 71.9 94.5 89.8 78.3 February 81.1 77.6 61.6 69.3 93.5 90.1 77.9 March 80.0 76.2 61.2 67.6 93.8 90.0 77.3 April 79.5 75.9 60.1 67.7 94.3 88.7 76.0 May 78.5 75.3 59.3 67.2 97.7 86.8 74.8 June 79.1 76.8 58.6 69.3 99.7 84.8 73.8 July 80.2 78.7 57.8 72.0 100.1 83.3 72.5 August 77.5 76.0 55.6 69.5 98.7 80.6 69.5 September 74.1 72.6 55.5 65.4 95.7 77.6 69.4 October 70.7 68.6 55.7 60.6 93.3 75.7 69.8 November 64.8 61.6 56.0 52.0 91.7 73.1 70.3 December 63.3 59.7 58.0 49.0 90.4 72.8 73.1 Table 7.5 Monthly Producer Price Indices - Continued (December 2003 = 100) Note: The values for the last several months are subject to revision. 7 - 12 Interstate Business Special Access Switched Toll Service, Inbound International Business Special Access Switched Toll Service, Inbound Other Toll Service Private Line Service Intrastate Private Line Service Other Telephone Services NAICS Series ID 51711022222 51711022223 51711029 5171103 51711031 5171109 2002 January 141.9 150.3 125.5 99.3 98.1 99.8 February 123.2 145.4 123.2 99.4 98.3 99.8 March 117.7 147.7 121.6 99.4 98.3 99.8 April 111.0 144.7 121.7 99.5 98.6 99.7 May 132.6 142.4 122.5 99.6 98.8 99.7 June 118.9 142.7 122.8 99.6 98.9 99.7 July 112.1 142.0 122.0 99.7 99.1 99.7 August 119.3 144.8 122.1 99.7 99.1 99.7 September 120.5 144.0 122.1 99.7 99.1 99.7 October 115.8 140.6 117.5 100.0 100.1 100.0 November 115.0 142.5 118.2 100.0 100.1 99.9 December 101.3 141.5 115.1 100.0 100.1 100.0 2003 January 103.8 141.4 112.3 100.0 100.1 100.1 February 116.1 142.3 113.3 100.0 100.1 100.0 March 105.6 116.6 111.0 100.0 100.1 100.0 April 111.5 117.4 110.8 100.0 100.1 100.0 May 108.3 113.3 106.9 100.0 100.1 100.0 June 115.6 106.1 106.6 100.0 100.1 100.0 July 95.8 108.0 105.0 100.0 100.0 100.0 August 107.4 104.5 106.3 100.0 100.0 99.8 September 98.2 107.6 104.2 100.0 100.0 99.8 October 97.8 112.2 103.1 100.0 100.0 100.0 November 99.1 100.3 101.4 100.0 100.0 99.9 December 100.0 100.0 100.0 100.0 100.0 100.0 2004 January 103.9 106.5 101.7 100.0 100.0 100.0 February 100.0 104.0 99.0 100.0 100.0 99.9 March 107.9 119.8 96.5 100.0 100.0 99.9 April 105.4 92.8 95.0 100.0 100.0 99.9 May 103.2 89.8 94.3 100.0 100.0 99.9 June 100.8 94.2 92.2 100.0 100.0 99.9 July 92.8 89.2 91.5 100.0 100.0 99.9 August 92.4 86.4 89.9 100.0 100.0 99.9 September 92.9 84.9 90.8 100.0 100.1 99.9 October 87.7 84.5 88.2 100.1 100.3 100.1 November 87.6 71.0 87.3 100.2 100.5 100.1 December 91.7 72.9 88.0 100.2 100.6 100.7 2005 January 92.8 70.4 85.5 100.3 100.9 100.6 February 84.7 44.9 86.3 100.3 101.0 100.7 March 83.2 72.1 83.5 100.4 101.2 100.6 April 83.0 67.7 83.5 100.5 101.3 100.6 May 75.6 67.8 81.2 100.5 101.3 100.6 June 76.4 68.6 82.5 100.5 101.3 100.6 July 73.4 64.3 81.5 100.5 101.3 100.6 August 75.2 66.1 80.3 100.5 101.3 100.6 September 75.9 73.7 80.9 100.5 101.3 101.0 October 81.4 67.1 78.9 100.5 101.3 101.2 November 78.0 76.2 78.5 100.5 101.3 101.8 December 76.1 65.2 78.3 100.5 101.3 101.2 2006 January 73.5 64.6 78.5 100.6 101.9 101.2 February 71.1 66.0 78.2 101.0 102.9 101.1 March 68.3 64.8 76.0 101.3 103.6 101.1 April 68.0 50.7 76.2 101.5 104.3 101.2 May 72.8 63.0 75.3 101.8 105.1 101.1 June 69.7 47.6 75.6 101.9 105.5 101.1 July 68.1 59.0 74.6 101.9 105.5 101.1 August 65.5 55.9 74.0 101.9 105.5 101.1 September 67.1 59.7 75.0 101.9 105.5 101.1 October 74.9 58.2 73.5 101.9 105.5 101.1 November 65.0 56.5 70.9 102.0 105.7 101.1 December 66.4 58.3 71.4 102.1 106.0 101.1 2007 January 69.9 58.8 71.7 102.2 106.3 101.1 February 64.5 60.9 71.5 102.2 106.6 101.5 March 68.8 58.4 70.8 102.2 106.9 103.5 April 66.7 57.7 70.5 102.2 107.0 102.3 May 65.4 58.7 70.5 102.2 107.0 102.2 June 68.4 60.0 70.2 102.2 107.0 102.2 July 62.4 60.5 69.9 102.2 107.0 101.9 August 63.0 59.9 69.6 102.2 107.0 101.8 September 68.3 58.6 69.4 102.2 107.1 101.8 October 67.7 57.5 68.7 102.3 107.2 101.8 November 78.5 55.0 68.8 102.3 107.2 101.8 December 77.0 56.5 69.0 102.3 107.2 101.8 2008 January 79.9 56.7 67.7 102.3 107.2 101.7 February 83.7 54.6 68.9 102.3 107.2 101.7 March 83.7 53.6 67.3 102.3 107.2 101.7 April 82.9 54.3 67.9 102.3 107.2 101.7 May 84.9 51.4 67.0 102.3 107.2 101.7 June 83.2 50.9 66.6 102.3 107.2 101.7 July 77.1 51.4 66.6 102.3 107.2 101.7 August 75.6 51.6 66.5 102.3 107.2 101.7 September 74.5 52.3 66.5 102.3 107.2 101.7 October 73.5 52.0 66.4 102.3 107.2 101.7 November 77.0 51.1 66.4 102.3 107.2 103.2 December 76.1 50.4 66.2 102.3 107.2 103.2 2009 January 76.5 49.6 65.8 102.3 107.2 103.2 February 77.1 49.2 65.8 102.3 107.2 103.2 March 77.2 48.4 65.4 102.3 107.2 103.2 April 76.2 47.9 65.2 102.3 107.2 103.2 May 74.4 47.1 65.1 102.3 107.2 100.1 June 72.3 47.4 64.9 102.3 107.2 100.1 July 71.0 48.0 64.9 102.3 107.2 100.1 August 69.0 47.2 64.8 102.3 107.2 100.1 September 65.3 48.3 64.7 102.3 107.2 100.1 October 62.8 47.4 64.6 102.3 107.2 100.1 November 59.5 46.7 64.5 102.3 107.2 100.1 December 57.9 47.3 64.5 102.3 107.2 100.1 Note: The values for the last several months are subject to revision. Table 7.5 Monthly Producer Price Indices - Continued (December 2003 = 100) 7 - 13 Table 7.6 Average Revenue per Minute AT&T All Carriers All Interstate All Interstate and International and International International All Interstate Switched Services Switched Services Switched Services Switched Services 1984 $0.32 NA NA NA 1985 0.31 NA NA NA 1986 0.28 NA NA NA 1987 0.25 NA NA NA 1988 0.23 NA NA NA 1989 0.22 NA NA NA 1990 0.20 NA NA NA 1991 0.20 NA NA NA 1992 0.19 $0.19 $1.01 $0.15 1993 0.19 0.19 1.02 0.15 1994 0.18 0.18 0.93 0.14 1995 NA 0.17 0.91 0.12 1996 NA 0.16 0.76 0.12 1997 NA 0.15 0.69 0.11 1998 NA 0.14 0.58 0.11 1999 NA 0.14 0.54 0.11 2000 NA 0.12 0.52 0.09 2001 NA 0.10 0.35 0.08 2002 NA 0.09 0.28 0.07 2003 NA 0.08 0.21 0.06 2004 NA 0.08 0.14 0.06 2005 NA 0.07 0.10 0.07 2006 NA 0.07 0.10 0.06 2007 NA 0.08 0.09 0.07 2008 NA 0.08 0.09 0.07 NA - Not available. Note: Data for some prior years have been revised. Sources: AT&T information provided by AT&T. Other estimates from Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (September 2010). 7 - 14 Table 7.7 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 07/01/10 06/30/11 5.89 6.19 0.00 0.00 0.13 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 5.74 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 5.75 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) 7 - 15 Table 7.8 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 ¢ 5.24 ¢ 3.10 ¢ 17.26 ¢ 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 ¢ 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 07/01/10 06/30/11 0.00 0.00 0.67 0.27 1.92 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 7 - 16 Table 7.9 Interstate Per-Line Access Charges by Carrier (In Dollars per Month per Line) 1 Rates Effective from 07/01/10 to 06/30/11 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 $9.17 $0.00 $0.00 86 0 72 AT&T 5.48 5.24 5.40 0.00 0.00 27,857 2,937 16,616 América Móvil 6.50 6.50 9.20 0.00 0.00 627 1 175 CenturyLink 5.75 5.53 6.93 0.02 0.01 4,934 297 1,721 Cincinnati Bell 5.28 5.28 5.28 0.00 0.00 417 26 251 Consolidated 6.50 6.50 9.20 0.00 0.00 120 6 53 FairPoint 6.21 6.20 6.23 0.00 0.00 727 91 248 Frontier 6.39 6.89 8.83 1.79 0.25 4,207 205 1,407 Hawaiin Telecom 6.50 7.00 8.15 0.00 0.00 307 27 73 Innovative 6.50 NA 9.20 0.00 0.00 43 0 16 Pacific Telecom 6.50 7.00 9.20 0.10 0.01 9 0 6 Qwest 5.97 6.09 6.29 0.00 0.00 5,854 519 2,514 Verizon 6.21 6.18 6.48 0.28 0.05 15,955 1,826 8,254 Windstream 6.34 6.55 7.89 0.29 0.29 1,839 306 753 Price Caps 5.84 5.74 6.08 0.14 0.04 62,982 6,241 32,159 NECA 6.50 NA 9.20 0.00 NA 4,394 NA 1,136 Price Caps and NECA $5.89 $5.74 $6.19 $0.13 $0.04 67,375 6,241 33,295 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. 7 - 17 Table 7.10 Interstate Per-Minute Access Charges by Carrier (In Cents per Minute) 1 Rates Effective from July 1, 2010 to June 30, 2011 Year 2008 Carrier Local Common Switching Line per Minutes of Company Originating Use Access (Millions) Minute ACS 0.00 ¢ 0.00 ¢ 0.59 ¢ 0.37 ¢ 1.97 ¢ 481 AT&T 0.00 0.00 0.52 0.26 1.59 116,741 América Móvil 0.00 0.00 0.73 0.20 1.92 1,778 CenturyLink 0.00 0.00 0.84 0.21 2.15 18,727 Cincinnati Bell 0.00 0.00 0.68 0.62 2.64 1,959 Consolidated 0.00 0.00 1.18 0.29 3.02 432 FairPoint 0.00 0.00 0.51 0.24 1.53 3,203 Frontier 0.06 0.00 0.56 0.37 1.97 14,823 Hawaiin Telecom 0.00 0.00 0.67 0.33 2.04 835 Innovative 0.00 0.00 0.77 0.18 1.95 244 Pacific Telecom 0.00 0.00 0.46 0.15 1.26 47 Qwest 0.00 0.00 0.76 0.19 1.95 26,566 Verizon 0.00 0.00 0.55 0.27 1.68 66,373 Windstream 0.00 0.00 0.56 0.32 1.81 6,828 Price Caps 0.00 0.00 0.58 0.26 1.73 259,037 NECA 0.00 0.00 2.61 0.48 6.36 10,821 All Price Caps and NECA 0.00 0.00 0.67 0.27 1.92 269,858 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 7 - 18