Voice Telephone Services: Status as of December 31, 2014 Industry Analysis and Technology Division Wireline Competition Bureau March 2016 This report is available for reference in the FCC’s Reference Information Center, Courtyard Level, 445 12th Street, SW, Washington, DC. Copies may be purchased by contacting Best Copy and Printing, Inc., 445 12th Street, SW, Room CY-B402, Washington, DC 20554, telephone (800) 378-3160, or via their website at www.bcpiweb.com. The report can also be downloaded from the Wireline Competition Bureau Statistical Reports Internet site at https://www.fcc.gov/general/iatd-data-statistical-reports. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 i Contents TEXT Introduction ............................................................................................................................................. 1 Retail voice telephone service connections ............................................................................................ 2 Retail service relationships ..................................................................................................................... 4 Remainder of the report .......................................................................................................................... 7 Technical Notes .................................................................................................................................... 12 Glossary ................................................................................................................................................ 13 FIGURES 1. Retail Voice Telephone Service Connections, 2011 - 2014 ............................................................. 2 2. Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, and Customer Type .......................................................................................................................... 3 3. Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type .......................................................................................................................... 5 4. Retail Relationships of Wireline Voice Telephone Service with Internet Access Service by Regulatory Status ........................................................................................................................ 6 TABLES 1. Voice Subscriptions ± Total for US .................................................................................................. 8 2. Number of Providers Reporting Voice Subscriptions ± Total for US ............................................ 10 SUPPLEMENTAL MATERIALS TO BE AVAILABLE ON WEBSITE - Tables 1 and 2 in Excel format - State-level Voice Subscriptions and Number of Providers tables in Excel format - Crosswalk to Local Telephone Competition: Status as of December 31, 2013 in PDF format - CSV-format file of consistent data series published for 2008-2014 Voice Telephone Services: Status as of December 31, 2014 Introduction. The Commission has used FCC Form 477 to collect subscribership information from providers of voice telephone services ± the incumbent local exchange carriers (ILECs), competitive local exchange carriers (CLECs), and mobile voice providers ± since December 1999. The Commission has requi red interconnected 9oice over ,nternet 3rotocol ³interconnecteG VoIP´ service providers to report subscribership information since December 2008 because the use of VoIP technology is growing rapidly and it increasingly is used to provide voice telephone service.1 Also, starting with the data reported for 2014, Form 477 has been modified to distinguish ³over-the-top ´ colloTXiall\ ³brinJ \oXr oZn broaGbanG´ interconnecteG 9o,3 sXbscriptions froP other interconnecteG 9o,3 sXbscriptions2 This report summarizes the information collected about telephone services as of December 31, 2014, and also as of June 2014. We are not releasing a separate report on status as of June 2014 but incorporate such data in this report. This report demonstrates continued growth in subscribership to interconnected VoIP and mobile voice services and continued decline in subscribership to traditional wired telephone services.3 1 The FCC’s rXles at  CF5 ?  state An interconnected Voice over Internet Protocol (VoIP) service is a service that: (1) Enables real-time, two-way voice communications;  5eTXires a broaGbanG connection froP the Xser’s location (3) Requires Internet protocol-compatible customer premises equipment (CPE); and (4) Permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. We note that the current interpretation of element (4) of the definition excludes the VoIP services that Skype offers in the United States, and subscribers to those services are not reported on Form 477. 2 The Technical Notes and the Glossary that appear at the end of this report provide more-detailed information about the current Form 477 and the meaning of terms used in this report. To be consistent with modifications to Form 477 that were adopted in 2013 (to be effective for reporting June 2014 and later data), and to avoid confusion , this report no longer uses the terms ³stanGalone 9o,3´ anG b\ contrast ³broaGbanG bXnGle´ 6tanGalone 9o,3 in the earlier, Local Telephone Competition, reports has a different meaning from ³over-the-top ´VoIP in this report. In particular, subscriptions reported as standalone VoIP for December 2013 and earlier dates included over-the-top subscriptions as defined in this report and also video-plus-VoIP service subscriptions sold by cable TV system operators and other entities that own last-mile facilities to end-user premises. We note that, accordingly, 13% of total interconnected VoIP subscriptions were categorized as standalone VoIP in December 2013 and, by contrast, 10% of total interconnected VoIP subscriptions were categorized as over-the-top VoIP in December 2014. 3 The presentation of mobile wireless telephone subscriber counts in this report does not constitute, or imply, Commission analysis of the extent to which wireline and mobile wireless telephone services are demand substitutes or complements in general or in any particular situation. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 1 Retail voice telephone service connections. Retail voice telephone service customers are served by two wireline technologies ± ³enG-user ´switched access lines and interconnecteG 9o,3 ³sXbscriptions´ ± and by mobile wireless subscriptions. ? In December 2014, there were 73 million end-user switched access lines in service, 54 million interconnected VoIP subscriptions, and 323 million mobile subscriptions in the United States, or 449 million retail voice telephone service connections in total. See Figure 1. ? Over the three-year period presented in Figure 1, interconnected VoIP subscriptions increased at a compound annual growth rate of 14%, mobile voice subscriptions increased at a compound annual growth rate of 3%, and retail switched access lines declined at 12% per year. 4 Figure 1 Retail Voice Telephone Service Connections, 2011 - 2014 (In Thousands) ? Of the 127 million wireline retail voice telephone service connections (including both switched access lines and interconnected VoIP subscriptions) in December 2014, 70 million (or 55%) were residential connections and 57 million (or 45%) were business connections.5 See Figure 2. 4 The compound annual growth rate (CAGR) is a smoothed rate of growth calculated in three steps. First, divide the ending (December 2014) value by the beginning (December 2011) value. Second, raise the result of that division to a power equal to one divided by the number of years in the period (in this case, 3 years, so the power is 1/3). Third, subtract the number one from the result of the second step. 5 FCC Form 477 does not distinguish between residential and business subscribers to mobile voice service. The information that Form 477 collects about mobile broadband service is summarized elsewhere; see Internet Access Services: Status as of December 31, 2014 , available at https://www.fcc.gov/reports-research/reports/internet-access- services-reports/internet-access-services-reports . U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 2 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, and Customer Type as of December 31, 201 4 (I n Thousands) Total Switched Access Interconnected Total Lines VoIP ILEC 58,045 11,336 69 ,382 Non-ILEC 14,560 42,9 02 57,462 Total 72,605 54,238 126,844 Residential ILEC 29 ,937 9 ,496 39 ,433 Non-ILEC 2,063 28,738 30,800 Residential Total 32,000 38,234 70,233 Business ILEC 28,108 1,841 29 ,949 Non-ILEC 12,497 14,164 26,661 Business Total 40,605 16,005 56,610 Figures may not add to totals due to rounding. ILEC = incumbent local exchange carrier. A voice-service affiliate of an ILEC that is operat ing oXtsiGe the ,/(C’s traGitional service area ³stXG\ area´ is a 1on-ILEC . U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 3 ? Cross-classifieG b\ technoloJ\ anG the retailer’s reJXlator\ statXs in FiJXre  the  Pillion wireline residential connections in December 2014 were: 43% ILEC switched access lines, 41% non-ILEC interconnected VoIP subscriptions, 14% ILEC interconnected VoIP subscriptions, and 3% non-ILEC switched access lines. Similarly, the 57 million wireline business connections were: 50% ILEC switched access lines, 25% non-ILEC interconnected VoIP subscriptions, 3% ILEC interconnected VoIP subscriptions, and 22% non-ILEC switched access lines. Retail service relationships. The revised Form 477 program collects two types of information about retail service relationships.6 ? Interconnected VoIP service retailers distinguish over-the-top ( ³OTT )´ interconnected VoIP subscriptions²which, in the revised Form 477 program, means that the VoIP service end user has purchased ( or has use of) a broadband connection from an entity that is not affiliated with the VoIP service retailer²by contrast to all other interconnected VoIP subscriptions. See Figure 3. ? Retailers of switched access lines and retailers of interconnected VoIP service distinguish between sales to end users who do not also purchase Internet access from them (including affiliates) and sales to end users who do purchase both these services. See Figure 4. 6 Due to the From 477 revisions adopted in 2013, the information in Figures 5 and 6 of this report is not directly comparable to the information in Figure 5 in earlier, Local Telephone Competition, reports. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 4 Figure 3 Interconnected VoIP Subscribership by Repo rted Service Features, Regulato ry Status, and Customer Type as of December 31 , 201 4 (In Thousands) Total Over - the - Top All Other Total (OTT) VoIP ILEC 28 11,308 11,336 Non-ILEC 5,121 37,781 42,9 02 Total 5,150 49 ,089 54,238 Resident ial ILEC 26 9,469 9,496 Non-ILEC 2,855 25,883 28,738 Residential Total 2,882 35,352 38,234 Business ILEC 2 1,839 1,841 Non-ILEC 2,266 11,898 14,164 Business Total 2,268 13,737 16,005 Figures may not add to totals due to rounding. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 5 Figure 4 Retail Relat ionships of Wireline Voice Telephone Service with Internet Access Service by Regulatory Status as of December 31, 2014 (In Thousands) Total Sold to End Users ILEC Non- ILEC Total Switched Access Lines 58,045 14,560 72,605 Over -the-Top VoIP 28 5,121 5,150 All Other VoIP 11,308 37,781 49,0 89 Total 69,382 57,462 126,844 Internet Also Sold Switched Access Lines 21,409 3,686 25,095 Over -the-Top VoIP 0 0 0 All Other VoIP 11,285 32,171 43,456 Both Sold Total 32,69 4 35,857 68,551 Internet Not Also Sold Switched Access Lines 36,636 10,874 47,510 Over -the-Top VoIP 28 5,121 5,150 All Other VoIP 23 5,610 5,633 Only Voice Total 36,688 21,605 58,293 Figures may not sum to totals due to rounding. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 6 Remainder of the report. The remainder of this document consists of two tables of national information, technical notes, and a glossary of terms. Table 1 summarizes the national-level voice telephone servic e subscription data for December 2014, and also for June 2014. Table 2 shows the number of entities that reported national-level subscription data. Table 1 and Table 2 are available in Excel format at https://www.fcc.gov/voice-telephone-services- report. Also available at that page are Excel-format files of state-level data, and a PDF-format crosswalk between this document and the Local Telephone Competition report that summarized data as of December 2013. For researchers’ convenience Ze also intend to post a CSV-format file containing the consistent data series that are available back to December 2008, the point at which interconnected VoIP service was added to the data collection. Even earlier data, back through December 1999, are available in the Local Telephone Competition reports at https://www.fcc.gov/general/local-telephone-competition-repor ts. However, researchers who consider using the complete data series for trend analysis should recall the discontinuities in the data that arise from Form 477 modifications over time. ? Between December 1999 and December 2004, Form 477 collected state-by-state da ta only from local exchange carriers with at least 10,000 end-user switched access lines in service in the state, and from facilities-based mobile voice carriers with at least 10,000 mobile voice subscriptions in service in the state. ? Prior to December 2008, interconnected VoIP service retailers were not required to submit Form 477, but an unknown amount of interconnected VoIP service was included along with the switched access lines reported by some Form 477 filers. ? As discussed earlier in this report, the category standalone interconnected VoIP that was reported from December 2008 to December 2013 is different (that is, includes more subscriptions) than the category over-the-top interconnected VoIP that is reported starting with the June 2014 data. 7 * * * * We invite users of this information to provide suggestions for improved analysis of data presented in this report by using the attached customer response form or by sending comments to IATDreports@fcc.gov for subject: December 2014 voice telephone data. We encourage users of this information to provide suggestions for improved data collection by participating in any formal proceedings undertaken by the Commission to solicit comments for improvement of FCC Form 477. 7 See footnote 2, above. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 7 Reference Data element Dec 2014 June 2014 1 Mobile telephony 322,527 314,489 2 Directly-billed or prepaid 283,316 276,800 3 Not directly-billed or prepaid 39,210 37,690 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 126,844 127,535 5 Incumbent LECs 69,382 71,413 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 57,462 56,122 7 Consumer-grade service 70,233 71,078 8 Incumbent LECs 39,433 40,632 9 Other (Non-ILECs) 30,800 30,446 10 Business & Government-grade service 56,610 56,458 11 Incumbent LECs 29,949 30,781 12 Other (Non-ILECs) 26,661 25,676 13 Local exchange telephone service (Switched Access Lines) 72,605 76,966 14 Incumbent LECs 58,045 61,573 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 14,560 15,392 16 Consumer-grade service 32,000 34,460 17 Incumbent LECs 29,937 32,223 18 Other (Non-ILECs) 2,063 2,237 19 Business & Government-grade service 40,605 42,506 20 Incumbent LECs 28,108 29,351 21 Other (Non-ILECs) 12,497 13,155 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 54,238 50,570 23 Incumbent LECs 11,336 9,840 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 42,902 40,730 25 Consumer-grade service 38,234 36,618 26 Incumbent LECs 9,496 8,409 27 Other (Non-ILECs) 28,738 28,209 28 Business & Government-grade service 16,005 13,951 29 Incumbent LECs 1,841 1,431 30 Other (Non-ILECs) 14,164 12,521 31 Over-the-top interconnected VoIP 5,150 5,088 32 Incumbent LECs 28 34 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 5,121 5,055 34 Consumer-grade service 2,882 3,018 35 Incumbent LECs 26 31 36 Other (Non-ILECs) 2,855 2,987 37 Business & Government-grade service 2,268 2,070 38 Incumbent LECs 2 2 39 Other (Non-ILECs) 2,266 2,067 40 All Other interconnected VoIP 49,089 45,481 41 Incumbent LECs 11,308 9,806 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 37,781 35,675 43 Consumer-grade service 35,352 33,600 44 Incumbent LECs 9,469 8,378 45 Other (Non-ILECs) 25,883 25,221 46 Business & Government-grade service 13,737 11,882 47 Incumbent LECs 1,839 1,428 48 Other (Non-ILECs) 11,898 10,454 Table 1. Voice Subscriptions (in Thousands) - Total for US U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 8 Reference Data element Dec 2014 June 2014 Table 1. Voice Subscriptions (in Thousands) - Total for US 49 Local exchange telephone service by last-mile delivery medium 72,605 76,966 50 Fiber-to-the-premises 5,425 5,308 51 Incumbent LECs 3,443 3,319 52 Other (Non-ILECs) 1,982 1,989 53 Coaxial cable 1,194 1,344 54 Incumbent LECs 65 49 55 Other (Non-ILECs) 1,128 1,295 56 Terrestrial fixed wireless 582 578 57 Incumbent LECs 549 546 58 Other (Non-ILECs) 33 32 59 Copper local loop 65,404 69,735 60 Incumbent LECs 53,988 57,659 61 Other (Non-ILECs) 11,416 12,076 62 All Other interconnected VoIP by last-mile delivery medium 49,089 45,481 63 Fiber-to-the-premises 6,226 5,927 64 Incumbent LECs 4,941 4,672 65 Other (Non-ILECs) 1,285 1,255 66 Coaxial cable 31,557 30,231 67 Incumbent LECs 4 3 68 Other (Non-ILECs) 31,552 30,227 69 Terrestrial fixed wireless or satellite 67 82 70 Incumbent LECs 0 0 71 Other (Non-ILECs) 67 82 72 Copper local loop 11,239 9,242 73 Incumbent LECs 6,362 5,131 74 Other (Non-ILECs) 4,877 4,111 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 14,560 15,392 76 Provided over owned last-mile facilities 4,852 5,256 77 Provided over UNE-L obtained from unaffiliated entity 3,270 3,645 78 Provided over other services obtained from unaffiliated entity 6,438 6,492 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 6,266 6,421 80 Wholesale lines 3,750 3,795 81 UNE-L 2,516 2,626 82 Local exchange telephone service and long-distance service 72,605 76,966 83 Consumer-grade service 32,000 34,460 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 19,480 20,937 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 10,457 11,286 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 1,725 1,789 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 337 448 88 Business & Government-grade service 40,605 42,506 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 15,122 15,736 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 12,986 13,614 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 9,534 9,982 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 2,964 3,173 93 End user buys local exchange telephone service and Internet access service from same entity 25,095 26,973 94 End user buys both services from incumbent LEC or affiliates 21,409 22,640 95 End user buys both services from Non-ILEC or affiliates 3,686 4,333 96 End user buys interconnected VoIP and Internet access service from same entity 43,456 41,658 97 End user buys both services from incumbent LEC or affiliates 11,285 9,786 98 End user buys both services from Non-ILEC or affiliates 32,171 31,872 U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 9 Reference Data element Dec 2014 June 2014 1 Mobile telephony 148 150 2 Directly-billed or prepaid 145 147 3 Not directly-billed or prepaid 28 27 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 1,584 1,545 5 Incumbent LECs 742 744 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,092 1,049 7 Consumer-grade service 1,233 1,229 8 Incumbent LECs 741 743 9 Other (Non-ILECs) 729 721 10 Business & Government-grade service 1,468 1,429 11 Incumbent LECs 736 738 12 Other (Non-ILECs) 977 934 13 Local exchange telephone service (Switched Access Lines) 1,040 1,033 14 Incumbent LECs 740 740 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 513 506 16 Consumer-grade service 927 928 17 Incumbent LECs 740 740 18 Other (Non-ILECs) 393 395 19 Business & Government-grade service 1,006 994 20 Incumbent LECs 735 734 21 Other (Non-ILECs) 481 468 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 848 796 23 Incumbent LECs 78 75 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 818 764 25 Consumer-grade service 469 449 26 Incumbent LECs 41 39 27 Other (Non-ILECs) 445 425 28 Business & Government-grade service 749 707 29 Incumbent LECs 74 73 30 Other (Non-ILECs) 720 674 31 Over-the-top interconnected VoIP 429 397 32 Incumbent LECs 13 13 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 424 391 34 Consumer-grade service 129 121 35 Incumbent LECs 6 7 36 Other (Non-ILECs) 125 116 37 Business & Government-grade service 392 364 38 Incumbent LECs 11 11 39 Other (Non-ILECs) 389 360 40 All Other interconnected VoIP 575 552 41 Incumbent LECs 75 71 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 545 521 43 Consumer-grade service 378 364 44 Incumbent LECs 38 35 45 Other (Non-ILECs) 356 343 46 Business & Government-grade service 500 486 47 Incumbent LECs 71 69 48 Other (Non-ILECs) 471 454 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 10 Reference Data element Dec 2014 June 2014 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US 49 Local exchange telephone service by last-mile delivery medium 1,040 1,033 50 Fiber-to-the-premises 652 630 51 Incumbent LECs 504 483 52 Other (Non-ILECs) 292 282 53 Coaxial cable 91 90 54 Incumbent LECs 22 19 55 Other (Non-ILECs) 77 78 56 Terrestrial fixed wireless 75 70 57 Incumbent LECs 51 45 58 Other (Non-ILECs) 33 37 59 Copper local loop 885 889 60 Incumbent LECs 650 654 61 Other (Non-ILECs) 367 362 62 All Other interconnected VoIP by last-mile delivery medium 575 552 63 Fiber-to-the-premises 284 264 64 Incumbent LECs 54 46 65 Other (Non-ILECs) 259 242 66 Coaxial cable 210 201 67 Incumbent LECs 10 7 68 Other (Non-ILECs) 207 198 69 Terrestrial fixed wireless or satellite 168 168 70 Incumbent LECs 9 7 71 Other (Non-ILECs) 162 163 72 Copper local loop 215 200 73 Incumbent LECs 41 45 74 Other (Non-ILECs) 196 174 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 513 506 76 Provided over owned last-mile facilities 350 343 77 Provided over UNE-L obtained from unaffiliated entity 125 128 78 Provided over other services obtained from unaffiliated entity 224 220 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 37 37 80 Wholesale lines 37 36 81 UNE-L 10 10 82 Local exchange telephone service and long-distance service 1,040 1,033 83 Consumer-grade service 927 928 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 668 665 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 687 692 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 353 352 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 275 276 88 Business & Government-grade service 1,006 994 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 667 657 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 655 650 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 420 411 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 323 313 93 End user buys local exchange telephone service and Internet access service from same entity 905 901 94 End user buys both services from incumbent LEC or affiliates 712 710 95 End user buys both services from Non-ILEC or affiliates 392 391 96 End user buys interconnected VoIP and Internet access service from same entity 521 504 97 End user buys both services from incumbent LEC or affiliates 65 62 98 End user buys both services from Non-ILEC or affiliates 493 476 U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 11 Technical Notes General Detailed information about Form 477 reporting requirements for data as of December 31, 2014 and June 30, 2014 is available at https://www.fcc.gov/general/form-477-resources-filers#block-menu-block-4 . See Glossary for definitions of terms used in this report. Counting lines and subscribers ? Form 477 counts both switched access lines and interconnected VoIP subscriptions as the maximXP nXPber of calls that Pa\ be active siPXltaneoXsl\ froP the enG Xser’s location XnGer the purchased service plan. All VoIP subscriptions discussed in this report are interconnected VoIP subscriptions. ? Form 477 data may not count all VoIP phone connections to Internet Protocol Private Branch Exchange (IP PBX) equipment that is owned by business end users because of the variety of ways the IP PBX may connect to the public switched telephone network. Holding company-subsidiary relationships ? When counting service providers that report voice telephone service in a particular geography, we count a holding company or common-control entity no more than once in any specified sub- category of total providers. ? Nationwide counts of providers are unique counts for any specified sub-category of total providers (for example, all non-ILECs or all interconnected VoIP providers); an entity operating in multiple states is counted only once. ILEC-CLEC affil iations ? If a CLEC is affiliated with an ILEC and reports some end-user switched access lines or interconnecteG 9o,3 sXbscriptions in the ,/(C’s service area in the state then the sZitcheG access lines or interconnected VoIP subscriptions reported by the CLEC are allocated between the ILEC and non-ILEC categories based on staff estimates. Mobile voice subscriptions ? Commercial mobile radio service (CMRS) carriers that own or operate wireless networks report both their retail voice service subscriptions and the retail subscriptions of the mobile voice service resellers that use their network. Mobile voice service resellers do not file Form 477. UNE-Platform lines replaced by commerci al agreements ? UNE-Platform (UNE-P) was the combination of ILEC loop UNE, switching UNE, and transport UNE. The Commission directed CLECs to migrate their retail customers served by UNE-P to an alternative arrangement within 12 months of the effective date of the Triennial Review Remand Order, that is, by March 11, 2006. See C.F.R. § 51.319(d)(2)(ii). Such lines are reported on Form 477 as ILEC wholesale lines provided to unaffiliated providers for resale. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 12 Glossary Term Definition All Other interconnected VoIP Interconnected VoIP service other than OTT interconnected VoIP. ( See the definition of OTT VoIP, below.) Circuit switching A method of completing electronic communications in which a transmission path is established for dedicated use by a communication; the basis of the public switched telephone network (PSTN). Coaxial cable The technology widely used by cable system operators to terminate their services at the enG Xser’s prePises. Copper local loop The technology widely used by telephone companies to terminate their service at the enG Xser’s premises. CLEC Competitive Local Exchang e Carrier: A local exchange carrier ( LEC ) that operates within the traditional service area of an unaffiliated incumbent LEC . End users Residential, business, institutional, or government entities that use services for their own purposes and who do not resell such services to other entities. Fixed wireless service A radio communication service between specified fixed points. FTTP or FTTH Fiber to the Premises ( Home ): A network access architecture in which optical fiber is Geplo\eG all the Za\ to the cXstoPer’s prePises hoPe  Internet access service Service that provides end users access to the Internet. ILEC Incumbent L ocal Exchange Carrier: A company or cooperative that was providing telephone service in a localized area , typically on a monopoly basis, prior to enactment of the Telecommunications Act of 1996 . Internet protocol or IP A language and set of formal rules that govern how packets transit the Internet. Interconnected VoIP or iVoIP A service that enables real-time, two-way voice communications; requires a broaGbanG connection froP the Xser’s location reTXires ,nternet- protocol compatible customer premises equipm ent; and permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. L EC Local Exchange Carrier: A company that provides telephone service within a localized area and access services that connect its customers to long-distance (Interexchange Carrier) networks. Local loop The physical connection between the customer’s prePises and the telephone coPpan\’s local switching office, typically provided using copper, fiber, or a combination of copper and fiber facilities. Mobile wireless service A radio communication service between mobile and fixed stations, or between mobile stations. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 13 Non-ILEC Any provider of communications services who does not have ILE C regulatory status. A voice-service affiliate of an ILEC that is operating oXtsiGe the ,/(C’s traGitional service area ³stXG\ area´ is a 1on-ILEC . OTT interconnected VoIP Over -the-top interconnected VoIP: Service delivered to the end-user cXstoPer’s premises over a high-capacity connection that the customer obtains (that is, buys) , or has the use of, from an entity not affiliated with the interconnecteG 9o,3 service proviGer ColloTXiall\ ³brinJ-your- own-broaGbanG´ PBX Private Branch Exchange: A communications switch that is owned or leaseG b\ the service proviGer’s enG-user customer and generally located on the cXstoPer’s prePises Packet switching A method of completing electronic communications in which the information is disassembled into discrete packets that are transmitted independently and later reassembled; IP is an example . Retail wireline voice telephone service Switched access lines and interconnected VoIP subscriptions for which an end user is the customer. Switched access line A service connection between an end user and the local telephone coPpan\’s switch; the basis of plain old telephone service (POTS). UNE Unbundled Network Element: A physical or functional element of an ILEC network that must be provided to a CLEC at a cost -based price, as provide for in the Telecommunications Act of 1996. UNE-L UNE-Loop: An ILEC unbundled local loop provided to a CLEC at a cost-based price. Wholesale switched access lines Local telephone service provided to an unaffiliated telephone company, which resells the service to end users; typically provided by an ILEC to a CLEC. U.S. Federal Communications Commission Voice Telephone Services: Status as of December 31, 2014 14 Customer Response Publication: Voice Telephone Services: Status as of December 31, 2014 You can help us provide the best possible information to the public by comp leting 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 teleco mmunications carrier ____ business customer evalua ting vendors/service options ____ consultant, la w 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, contact: 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/IA TD, Mail Stop 1600 F Washington, DC 20554