UNIVERSAL SERVICE MONITORING REPORT CC Docket No. 96-45 WC Docket No. 02-6 WC Docket No. 02-60 WC Docket No. 06-122 WC Docket No. 10-90 WC Docket No. 11-42 WC Docket No. 13-184 WC Docket No. 14-58 2017 (Data Received Through September 2017) Prepared by Federal and State Staff for the Federal-State Joint Board on Universal Service 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 FCC’s Federal-State Joint Board Monitoring Reports website at http://www.fcc.gov/encyclopedia/federal-state-joint-board-monitoring-reports. Table of Contents Introduction and Summary ............................................................................................................ 4 to 5 2017 Monitoring Report Supplementary Material ................................................................ 6 1. Revenues and Contributions .................................................................................................... 7 to 21 2. Lifeline (Low Income) .............................................................................................................. 22 to 30 3. Connect America Fund (High Cost) ........................................................................................ 31 to 38 4. E-rate (Schools and Libraries) .................................................................................................. 39 to 41 5. Rural Health Care ..................................................................................................................... 42 to 44 6. Subscribership & Penetration ................................................................................................... 45 to 60 7. Price Indices .............................................................................................................................. 61 to 64 1 Report Tables Table 1.1 Filer Revenues by Service Type: 2006 - 2016 ........................................................... 8 Table 1.2 Filer Revenues, Wholesale vs. Retail: 2006 - 2016 .................................................. 10 Table 1.3 2016 Filer Revenues by Service Type: Top 5 Affiliated Entities vs. Other Companies ...................................................................................................... 12 Table 1.4 Telecommunications Revenue Reported on FCC Form 499-Q: 2015 - 2017 ............................................................................................................... 13 Table 1.5 USF Contribution Base by Year: 2006 - 2016 .......................................................... 14 Table 1.6 Universal Service Fund Contribution Factor ............................................................ 15 Table 1.7 Billed Interstate and International Retail Telecommunications Revenues by Top 5 Affiliated Entities vs. Other Companies: 2009 - First Half of 2017 ............ 16 Table 1.8 End User Telecommunications Revenues by State: 2015 ........................................ 17 Table 1.9 Universal Service Support Mechanism by State: 2016 ............................................ 18 Table 1.10 Universal Service Disbursements 2001 - 2016 ....................................................... 19 Table 1.11 Universal Service Program Requirements and Contribution Factors for 2017 ..... 20 Table 1.12 Universal Service Contributions Divided by Number of Households ................... 21 Table 2.1 Lifeline Subscribers and Link Up Beneficiaries ....................................................... 23 Table 2.2 Low-Income Claims ................................................................................................... 24 Table 2.3 Low-Income Claims by State: 2016 .......................................................................... 25 Table 2.4 Low-Income Claims Received by ILECs and CETCs ............................................. 26 Table 2.5 Low-Income Claims by Program and by Affiliated Entities: 2016 ......................... 27 Table 2.6 Total Monthly Lifeline Subscribers Since January 2013 ......................................... 28 Table 2.7 Lifeline De-Enrollment or Scheduled to be De-Enrolled by State in 2016 ............. 29 Table 2.8 Low-Income Subscribers by State in 2016 by Facilities Type of Carrier ................ 30 Table 3.1 High-Cost Support Fund Claim History .................................................................... 32 Table 3.2 High-Cost Support Fund Claim History - Rate of Return ILECs ............................ 33 Table 3.3 High-Cost Support Fund Claim History - Price Cap ILECs .................................... 34 Table 3.4 High-Cost Support Fund Claim History - CETCs .................................................... 35 Table 3.5 High-Cost Support Fund Claims - State: 2016 ......................................................... 36 Table 3.6 Annual High-Cost Fund Support Claims - Affiliates: 2014-2016 ........................... 37 Table 3.7 High-Cost Support Fund Claims - Affiliates: 2016 .................................................. 38 Table 4.1 Schools and Libraries Funding Commitments and Disbursements by Applicant Type and Year ........................................................................................................... 40 Table 4.2 Schools and Libraries Funding Commitments and Disbursements from Program Inception through June 30, 2017 by State and Applicant Type .............................. 41 Table 5.1 Rural Health Care Funding Commitments and Disbursements by Program and Year ........................................................................................................................... 43 Table 5.2 Rural Health Care Funding Commitments and Disbursements from Program Inception through June 30, 2017 by State and Program ......................................... 44 2 Table 6.1 Household Voice Subscribership in the United States, 1983 - 2017 ....................... 47 Table 6.2 Household Voice Penetration by Income, 1997 - 2017 ............................................ 48 Table 6.3 Nominal Dollar Equivalents by Year ........................................................................ 49 Table 6.4 Historical Voice Penetration Estimates ..................................................................... 50 Table 6.5 Voice Penetration by Selected Demographic Characteristics, 2013 - 2017 (Percentage of Households with Voice Service) ..................................................... 51 Table 6.6 Voice Penetration by State, 2011 - 2016 (Percentage of Occupied Housing Units with Voice Service) ................................ 52 Table 6.7 Voice Penetration by State, Selected Years (Percentage of Households with a Telephone in Unit) ........................................... 53 Table 6.8 Household Voice Penetration by State and Income, 2017 ....................................... 54 Table 6.9 Internet Use by Selected Characteristics, 2016 ......................................................... 55 Table 6.10 High-Speed Internet Penetration for Households by State ..................................... 56 Table 6.11 Residential Fixed Connections per Household by Speed Tier as of December 31, 2016 ................................................................................................... 57 Table 6.12 Comparison of Telephone and Internet Subscribership and Expenses in Low-Income Households ................................................................................................................ 58 Table 6.13 Fixed Connections at Least 3 Mbps Downstream and 768 kbps Upstream for Incumbent Local Exchange Carriers ........................................................................ 59 Table 6.14 Switched Access Lines and Interconnected VoIP Subscribers for Incumbent Local Exchange Carriers .......................................................................................... 60 Table 7.1 Long-Term Changes for Various Price Indices ........................................................ 62 Table 7.2 Annual Changes in CPI Telephone Service and All Items Indices .......................... 63 Table 7.3 Monthly Consumer Price Indices .............................................................................. 64 3 Universal Service Monitoring Report 2017 Introduction and Summary This is the twentieth report in a series prepared by federal and state staff members for the Federal-State Joint Board on Universal Service (Universal Service Joint Board).1 Unless otherwise noted, this report is generally based on information available to us as of September 2017. These reports contain information designed to monitor the impact of various universal service support mechanisms and the method used to finance them. These reports are part of a monitoring program created by the Federal Communications Commission in 1997 in CC Docket No. 96-45 to replace a similar program in CC Docket No. 87-339 that previously resulted in a series of nineteen Monitoring Reports.2 The Monitoring Report incorporates data from several sources, including the National Exchange Carrier Association (NECA) and the Universal Service Administrative Company (USAC). USAC collects information from both contributors and beneficiaries of the Universal Service Fund, including incumbent local exchange carriers (ILECs), competitive eligible telecommunications carriers (CETCs), schools, libraries and health care providers. NECA, at the direction of the Commission, provides information to USAC that is utilized in administering certain aspects of the high-cost program. The following is the organization of this report: Section 1 provides an update on industry revenues, universal service program funding requirements, and contribution factors. Sections 2 through 5 provide the latest data on the low-income, high-cost, schools and libraries, and rural health care support mechanisms. Section 6 presents recent Census and Bureau of Labor Statistics data on voice telephony subscribership and expenses taken from the Current Population Survey, the American Community Survey and the Consumer Expenditure Survey as well as data on telephone penetration by income by state. It also includes data on residential Internet subscribership and expenses. Section 7 includes updated Consumer Price Index data. This entire report is available electronically in page image (.pdf) format through the FCC’s Federal- State Joint Board Monitoring Reports website, located at http://www.fcc.gov/encyclopedia/federal-state- joint-board-monitoring-reports. The tables of the report are also available separately as spreadsheet files in a single compressed (.zip) format file at this site. The Monitoring Report is published once a year. Information received well in advance of the next Monitoring Report will be made available on an interim basis in separate staff reports or in raw data files (such as most NECA filings used in the Monitoring Report) on the Wireline Competition Bureau Statistical Reports Internet site. Supplementary material is available in a single compressed (.zip) format file at http://www.fcc.gov/encyclopedia/federal-state-joint-board-monitoring-reports. The supplementary material includes tables too extensive to be practical for a printed report. A table listing the files available when this file is unzipped is provided at the end of this introduction. 1 The last report was released in December 2016. Universal Service Monitoring Report, 2016, CC Docket No. 96- 45 et al. (Data Received Through September 2016) available at https://www.fcc.gov/general/federal-state-joint- board-monitoring-reports. 2 In 1997, the Commission adopted rules to implement section 254 largely based on the recommendations of the Universal Service Joint Board and delegated to the Common Carrier Bureau (the predecessor to the Wireline Competition Bureau), in consultation with the state staff, the creation of a new monitoring program. Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 9218, para. 869 (1997) (Universal Service First Report and Order). See 47 C.F.R. § 54.702(i). 4 We continue to look for ways to present universal service data in a way that is useful for the public. We have revised the tables in Section 3 to provide a clearer overview of high-cost support fund history by carrier types. Section 6 now includes two additional tables that provide fixed broadband deployment and subscription information for ILECs. We invite questions or comments on this report via email at IATDreports@fcc.gov with subject: December 2017 Monitoring Report. 5 2017 Monitoring Report Supplementary Material This list provides the names of files provided in the 2017 Monitoring Report Supplementary Material zip file available at http://www.fcc.gov/encyclopedia/federal-state-joint-board-monitoring-reports. Underlined names are folders containing those files after unzipping the file. Revenues and Contributions S.1.1. Detailed Telecommunications Revenue - 2016 S.1.2. Estimating End-User Revenue by State - 2015 Technical Appendix S.1.3. Estimating End-User Revenue by State - 2015 Tables S.1.4. Contribution Base Revenues by Program Low Income S.2.1. LI Support - by State S.2.2. LI Support - by Study Area S.2.3. LI Subscribers and Beneficiaries - by State S.2.4. ETCs Receiving Lifeline Support 2016 High Cost Claims S.3.1. HC Claims - by State S.3.2. HC Claims - by Study Area S.3.3. HC RoR Claims per Line - by Study Area S.3.4. HC Support Study Areas - 2016 S.3.5. 2017 Rate Floor Report S.3.6. Support Reduction Waiver Requests S.3.7. HC Rate Floor Reductions – by Study Area S.3.8. HC Reductions due to $250 Cap - by Study Area Disbursements S.3.9. HC Disbursements - by State S.3.10. HC Disbursements - by Study Area S.3.11. HC RoR Disbursements per Line - by Study Area S.3.12. HC Penalties Schools and Libraries S.4.1. SL Funds - by Service Type, State, and Funding Year S.4.2. SL Cumulative Funds - by Service Type and State S.4.3. SL Disbursements - by Service Provider Type S.4.4. SL Funds per Student - by State S.4.5. SL Funds - by Applicant Type, State, and Funding Year Rural Health Care S.5.1. RHC Funds - by State, Program, and Year S.5.2. RHC Disbursements - by Speed, Year, and State S.5.3. RHC Disbursements - by Speed, Year, and HCP Type S.5.4. RHC Disbursements per Person - by State S.5.5. RHC Funds - by HCP Type, Program, and Year Subscribership, Penetration, and S.6.1. Broadband Penetration by County and Congressional District Minutes of Use S.6.2. ILEC Interstate Switched Access Minutes of Use - by Study Area S.6.3. ILEC Interstate Switched Access Minutes of Use - by Tier S.6.4. ILEC Interstate Switched Access Minutes of Use - by State S.6.5. NECA Pool Results 6 Section 1 - Revenues and Contributions Overview – Revenues and Contributions In response to the Telecommunications Act of 1996, the Commission established several universal service mechanisms to help ensure that all Americans have access to affordable telecommunications service. Congress mandated that these programs be supported by contributions from every telecommunications carrier that provides interstate telecommunications, and other providers of telecommunication services if the Commission finds contributions from such providers to be in the public interest. The tables in this section provide a general overview of the revenues of the U.S. telecommunications industry and the associated contributions to the universal service support mechanisms. The tables are based on information filed with the Commission in FCC Forms 499-A and 499-Q. To the extent that certain telecommunications industry revenues are not subject to contributions, such revenues may not be fully captured in these tables. Additional information about the revenues collected to support universal service can be found on the Commission’s website at http://www.fcc.gov/encyclopedia/contribution-methodology-administrative-filings and on USAC’s website at http://www.usac.org/cont/default.aspx. Please note that that the information provided in this report is based upon Commission rules in effect in 2017. 7 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Local Exchange and Federal/State USF Support 1 $63,264 $62,790 $60,721 $56,839 $56,993 $52,718 $50,598 $49,016 $47,495 $46,515 $46,314 Pay Telephone 2 659 470 379 268 197 136 362 359 327 286 271 Local Private Line 3 25,448 24,307 26,314 27,098 26,809 28,243 29,101 29,632 31,194 32,191 30,472 Other Local 4 3,884 3,227 3,321 3,531 3,032 3,145 2,408 1,746 1,456 1,493 1,510 Subscriber Line Charges 5 10,827 10,141 9,283 8,363 7,481 6,703 6,195 5,968 5,507 5,175 4,787 Access 6 11,392 10,543 9,776 8,778 8,336 7,368 6,759 6,384 5,016 4,836 3,809 Total Local Service and Payphone Revenues 115,474 111,478 109,795 104,876 102,847 98,313 95,422 93,105 90,994 90,495 87,162 Total Mobile Service Revenues 7 112,442 117,939 120,934 114,625 111,643 107,393 105,183 98,160 86,998 75,263 65,636 Operator8 5,577 5,874 5,444 4,340 3,585 3,162 3,092 3,064 2,785 2,351 1,876 Non-Operator Switched Toll 9 41,570 42,518 39,329 34,943 27,132 27,557 25,340 23,345 22,518 21,499 18,297 Long Distance Private Line 10 12,739 12,080 11,683 11,649 14,344 11,443 12,262 12,542 12,362 12,778 13,353 Other Long Distance 11 2,154 1,661 2,071 2,708 4,945 4,186 3,929 3,886 3,891 3,050 2,816 Total Toll Service Revenues 62,039 62,133 58,527 53,640 50,006 46,347 44,624 42,837 41,555 39,678 36,342 Total Local, Mobile, and Toll Revenues 289,954 291,549 289,255 273,141 264,496 252,052 245,229 234,102 219,547 205,436 189,141 7,314 7,902 8,110 7,911 8,662 8,986 10,012 8,986 9,084 9,041 9,135 Total Telecommunications Revenues 14 297,269 299,451 297,365 281,052 273,158 261,038 255,242 243,088 228,631 214,477 198,276 101,061 131,615 151,494 158,859 173,228 214,538 224,487 251,892 268,260 301,121 311,404 Total Reported Revenues $398,329 $431,066 $448,860 $439,911 $446,386 $475,576 $479,729 $494,981 $496,892 $515,598 $509,679 Universal Service Surcharges 12,13 Total Non-Telecommunications Revenues 15 Table 1.1 Filer Revenues by Service Type: 2006 - 2016 (in Millions of Dollars) Local Service and Payphone Revenues Mobile Revenues Toll Service Revenues 8 Source : FCC Form 499-A based on filings as of September 7, 2017. 15 Dollar amounts are calculated using Line 418a from Form 499-A. 14 Subtotal includes surcharge. 13 Dollar amounts are calculated using Line 403a from Form 499-A. Note : Detail may not add to totals due to rounding. 3 Dollar amounts are calculated using the sum of Lines 305a and 406a from Form 499-A. 2 Dollar amounts are calculated using the sum of Lines 306a and 407a from Form 499-A. 1 Dollar amounts are calculated using the sum of Lines 303a, 308a (Federal and State USF Support Revenues), and Line 404a from Form 499-A. Footnotes to Table 1.1 12 The surcharge figure indicates only surcharges that have been explicitly reported as such in Form 499-A and does not account for implicit surcharge revenues where carriers collect the surcharge through higher prices. 11 Dollar amounts are calculated using the sum of Lines 313a, 314a, 416a, and 417a from Form 499-A. 10 Dollar amounts are calculated using the sum of Lines 312a and 415a from Form 499-A. 9 Dollar amounts are calculated using the sum of Lines 311a and 414a from Form 499-A. 8 Dollar amounts are calculated using the sum of Lines 310a, 411a, 412a, and 413a from Form 499-A. 7 Dollar amounts are calculated using the sum of Lines 309a, 409a, and 410a from Form 499-A. 6 Dollar amounts are calculated using Line 304a from Form 499-A. 5 Dollar amounts are calculated using Line 405a from Form 499-A. As of 2012, includes Access Recovery Charge (ARC). 4 Dollar amounts are calculated using the sum of Lines 307a and 408a from Form 499-A. 9 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Local Service 3,4 $39,392 $38,383 $39,200 $38,285 $37,955 $39,807 $39,783 $39,101 $37,974 $38,976 $36,180 Mobile Service 5 5,187 5,360 5,630 4,284 5,006 5,512 5,587 5,384 5,334 5,025 4,601 Toll Service 6 15,101 16,093 13,843 13,003 15,549 11,921 11,425 10,911 10,472 9,955 9,714 Total Wholesale Revenues 59,679 59,836 58,672 55,571 58,510 57,240 56,796 55,396 53,780 53,955 50,496 Intrastate 7 24,848 22,566 21,836 20,173 22,484 20,379 18,860 17,236 16,182 15,775 13,749 Interstate and International 8,9 34,831 37,270 36,837 35,399 36,026 36,861 37,936 38,160 37,598 38,180 36,747 58% 62% 63% 64% 62% 64% 67% 69% 70% 71% 73% Local Service 3,10 $76,082 $73,095 $70,598 $66,591 $64,892 $58,506 $55,639 $54,004 $53,020 $51,519 $50,982 Mobile Service 11 107,255 112,579 115,304 110,341 106,637 101,881 99,596 92,776 81,664 70,238 61,035 Toll Service 12 46,938 46,040 44,681 40,637 34,457 34,426 33,198 31,927 31,083 29,724 26,628 Universal Service Surcharges 13 7,314 7,902 8,110 7,911 8,662 8,986 10,012 8,986 9,084 9,041 9,135 Total Retail Revenues $237,589 $239,615 $238,693 $225,481 $214,648 $203,798 $198,446 $187,693 $174,851 $160,522 $147,780 Intrastate 14 157,653 158,380 157,737 149,493 142,356 133,475 128,409 119,294 107,909 96,592 87,598 Interstate and International 1,8, 15 79,937 81,235 80,956 75,988 72,292 70,323 70,037 68,399 66,942 63,930 60,181 34% 34% 34% 34% 34% 35% 35% 36% 38% 40% 41% Local Service 3 $115,474 $111,478 $109,798 $104,876 $102,847 $98,313 $95,422 $93,105 $90,994 $90,495 $87,162 Mobile Service 112,442 117,939 120,934 114,625 111,643 107,393 105,183 98,160 86,998 75,263 65,636 Toll Service 62,039 62,133 58,523 53,640 50,006 46,347 44,624 42,837 41,555 39,678 36,342 Universal Service Surcharges 13 7,314 7,902 8,110 7,911 8,662 8,986 10,012 8,986 9,084 9,041 9,135 Total Telecommunications Revenues $297,268 $299,451 $297,365 $281,052 $273,158 $261,038 $255,242 $243,088 $228,631 $214,477 $198,276 Intrastate 182,501 180,946 179,573 169,666 164,840 153,854 147,269 136,530 124,091 112,367 101,347 Interstate and International 8 114,768 118,505 117,793 111,387 108,318 107,184 107,972 106,559 104,540 102,110 96,929 39% 40% 40% 40% 40% 41% 42% 44% 46% 48% 49% $101,061 $131,615 $151,494 $158,859 $173,228 $214,538 $224,487 $251,892 $268,260 $301,121 $311,404 $398,329 $431,066 $448,859 $439,911 $446,386 $475,576 $479,729 $494,981 $496,892 $515,598 $509,679Total Reported Revenues Table 1.2 Filer Revenues,1 Wholesale vs. Retail: 2006 - 2016 (in Millions of Dollars) Wholesale (Carrier's Carrier) Telecommunications Revenues 2 Percentage Interstate/International Retail (End User) Telecommunications Revenues Percentage Interstate/International Total Telecommunications Revenues (Wholesale + Retail) Percentage Interstate/International Total Non-Telecommunications Revenues 10 4 Dollar amounts are calculated using the sum of Lines 303a to 308a from Form 499-A. 5 Dollar amounts are calculated using Line 309a from Form 499-A. 6 Dollar amounts are calculated using the sum of Lines 310a to 314a from Form 499-A. 9 Dollar amounts are calculated using the sum of Lines 303d to 314d, plus the sum of Lines 303e to 314e from Form 499-A. 10 Dollar amounts are calculated using the sum of Lines 404a to 408a from Form 499-A. 11 Dollar amounts are calculated using the sum of Lines 409a and 410a from Form 499-A. 12 Dollar amounts are calculated using the sum of Lines 411a to 417a from Form 499-A. 13 Dollar amounts are calculated using Line 403a from Form 499-A. Surcharges are contribution amounts passed through to end users. Note : Detail may not add to totals due to rounding. Footnotes to Table 1.2 15 This line best represents the USF contribution base, which is further described in Table 1.5. Dollar amounts are calculated using the sum Source : FCC Form 499-A based on filings as of September 7, 2017. 7 Dollar amounts are calculated using the sum of Lines 303a to 314a, minus the sum of Lines 303d to 314d, minus the sum of Lines 303e to 314e from Form 499-A. 14 Dollar amounts are calculated using the sum of Lines 403a to 417a, minus the sum of Lines 403d to 417d, minus the sum of Lines 403e to 417e from Form 499-A. 2 Wholesale revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale. This includes, for example, access services that local exchange carriers provide to toll carriers. Sales to de minimis resellers, end-user customers, government- only providers, international-only providers, and any other non-contributors are treated as end-user revenues. Filers contribute to the universal service funding mechanisms based on their end-user interstate and international revenues. See Table 1.5 for further details on the USF contribution base. 8 Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues and are included in this table, but are not included in the universal service contribution base. This line best respresents the USF contribution base, which is further described in Table 1.5. 1 Data include revenues for de minimis filers, as well as for other carriers that are exempt from universal service contribution requirements. 3 Payphone revenues and interconnected Voice over Internet Protocol (VoIP) revenues are included with local service revenues in this table. 11 Top 5 Affiliated Entities1 Other Companies Total Local Exchange 2 $20,202 $20,096 $40,298 Pay Telephone 3 5 266 271 Local Private Line 4 20,551 9,921 30,472 Other Local 5 881 629 1,510 Federal and State USF Support 6 1,419 4,597 6,016 Subscriber Line Charges 7 2,465 2,322 4,787 Access 8 1,952 1,857 3,809 Total Local Service and Payphone Revenues 47,474 39,688 87,162 Total Mobile Service Revenues 9 58,447 7,189 65,636 Operator 10 110 1,766 1,876 Non-Operator Switched Toll 11 8,124 10,174 18,297 Long Distance Private Line 12 7,459 5,894 13,353 Other Long Distance 13 482 2,334 2,816 Total Toll Service Revenues 16,175 20,167 36,342 Total Local, Mobile, and Toll Revenues 122,096 67,045 189,141 Universal Service Surcharges 14 6,489 2,646 9,135 Total Telecommunications Revenues 128,586 69,690 198,276 Total Non-Telecommunications Revenues 15 208,897 102,507 311,404 Total Reported Revenues $337,482 $172,197 $509,679 15 Dollar amounts are calculated using Line 418a from Form 499-A. Toll Service Revenues Table 1.3 2016 Filer Revenues by Service Type: Top 5 Affiliated Entities vs. Other Companies (in Millions of Dollars) Local Service and Payphone Revenues Mobile Revenues Note : Detail may not add to totals due to rounding. Source : FCC Form 499-A, based on filings as of September 7, 2017. 2 Dollar amounts are calculated using the sum of Lines 303a and 404a from Form 499-A. 1 The "Top 5 Affiliated Entities" are those with the greatest revenues as defined by Line 419a, which includes Lines 303a to 314a and Lines 403a to 418a on Form 499-A. These companies are (in alphabetical order): AT&T Inc., CenturyLink, Deutsche Telekom AG, SoftBank Corporation, and Verizon Communications. The affiliated entity structure is current as of year-end 2016. 3 Dollar amounts are calculated using the sum of Lines 306a and 407a from Form 499-A. 4 Dollar amounts are calculated using the sum of Lines 305a and 406a from Form 499-A. 5 Dollar amounts are calculated using the sum of Lines 307a and 408a from Form 499-A. 6 Dollar amounts are calculated using Line 308a from Form 499-A. 7 Dollar amounts are calculated using Line 405a from Form 499-A. As of 2012, this amount also includes the Access Recovery Charge. 8 Dollar amounts are calculated using Line 304a from Form 499-A. 9 Dollar amounts are calculated using the sum of Lines 309a, 409a, and 410a from Form 499-A. 10 Dollar amounts are calculated using the sum of Lines 310a, 411a, 412a, and 413a from Form 499-A. 11 Dollar amounts are calculated using the sum of Lines 311a and 414a from Form 499-A. 12 Dollar amounts are calculated using the sum of Lines 312a and 415a from Form 499-A. 14 Dollar amounts are calculated using Line 403a from Form 499-A. 13 Dollar amounts are calculated using the sum of Lines 313a, 314a, 416a, and 417a from Form 499-A. 12 All Filers LIRE Exemption1 Total Less LIRE Retail (End User) Billed 3 $64,691 Retail Net of Uncollectibles 4 64,066 (2,881) 61,185 Implied Uncollectible Rate 1.0% Wholesale (Carrier's Carrier) Billed 5 52,382 Retail (End User) Billed 160,970 Total Revenue 213,352 Interstate and International Retail (End User) Billed 63,447 Retail (End User) Billed 61,506 Retail Net of Uncollectibles 60,955 (2,446) 58,509 Implied Uncollectible Rate 0.9% Wholesale (Carrier's Carrier) Billed 50,246 Retail (End User) Billed 148,259 Total Revenue 198,505 Interstate and International Retail (End User) Billed 60,071 Retail (End User) Billed 6 56,323 Retail Net of Uncollectibles 7,8 55,765 (2,019) 53,656 Implied Uncollectible Rate 0.99% Wholesale (Carrier's Carrier) Billed 9 23,522 Retail (End User) Billed 10 69,827 Total Revenue 93,348 Interstate and International Retail (End User) Billed 11 28,354 Table 1.4 Telecommunications Revenue Reported on FCC Form 499-Q: 2015-2017 (in Millions of Dollars) Data from FCC Form 499-Q Projected Revenues for 2015 Interstate and International 2 Historical Revenues Reported for 2015 Intrastate, Interstate, and International Projected Revenues for 2016 Interstate and International Historical Revenues Reported for 2016 Intrastate, Interstate, and International 8 Dollar amounts for projected LIRE exempt revenues are calculated using the sum of Lines 120b and 120c in the Form 499Q filings from those filers who are LIRE-exempt. 7 Dollar amounts for projected revenues collected from end users are calculated using the sum of Lines 120b and 120c from Form 499-Q. 6 Dollar amounts for projected revenues billed to end users are calculated using the sum of Lines 119b and 119c from Form 499-Q. Projected Revenues for 2017 Interstate and International Historical Revenues Reported for First Half of 2017 Intrastate, Interstate, and International 2 Projected intrastate revenues are not reported on FCC Form 499-Q. 3 Prior to 2014, this line was referred to as "Billed to End Users." 4 Prior to 2014, this line was referred to as "Collected from End Users." 5 Prior to 2014, this line was referred to as "Billed to Resellers." 1 A provider receives the Limited International Revenue Exemption (LIRE) and its international revenues are excluded from the contribution base if the total amount of interstate end-user revenues for the filing entity, consolidated with all affiliates, is less than 12% of the total of interstate and international end-user revenues for the filing entity consolidated with all affiliates. Affiliated filer entities who do not pass the 12% rule, but whose USF obligation exceeds its interstate revenue, may be considered for the LIRE exemption on a case by case basis. See 47 C.F.R. § 54.706(c). In addition, filers that provide only international services are exempt regardless of services offered by affiliates. Note : Detail may not add to totals due to rounding. 11 Dollar amounts for interstate and international historical revenues billed to end users is calculated using the sum of Lines 116b and 116c from Form 499-Q. 10 Dollar amounts for historical revenues billed to retail is calculated using Line 116a from Form 499-Q. 9 Dollar amounts for historical revenues billed to wholesaler is calculated using Line 115a from Form 499-Q. Source : FCC Form 499-Q. 13 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Revenues Subject to USF Contribution Billed interstate and international retail (end-user) revenues (includes Universal Service Surcharge) [Line 403 to Line 417, parts (d) and (e)] $79,937 $81,235 $80,956 $75,988 $72,292 $70,323 $70,037 $68,399 $66,942 $63,930 $60,181 less revenues for international-to-international services [ Line 412(e) ] 708 886 862 576 469 452 444 589 673 362 174 less international revenues of international-only filers and international revenues that were excluded because of the LIRE Exemption2 3,598 3,978 4,148 3,393 3,326 3,079 2,653 3,086 2,827 2,616 1,960 less interstate and other international revenues for filers who are de minimis or otherwise exempt from universal service support requirements 57 50 51 49 34 31 28 31 31 31 31 less uncollectible contribution base revenues [Line 422(d) + Line 422(e) ]3 1,073 1,301 1,131 1,075 960 787 709 610 527 470 427 equals $74,499 $75,020 $74,764 $70,895 $67,503 $65,971 $66,203 $64,083 $62,884 $60,451 $57,590 Table 1.5 USF Contribution Base by Year1: 2006-2016 (in Millions of Dollars) 3 Does not include uncollectible amounts associated with filers who are de minimis or LIRE exempt. Note : Detail may not add to totals due to rounding. Revisions have been made for 2007. Source : FCC Form 499-A based on filings as of September 7, 2017. 2 A provider receives the Limited International Revenue Exemption (LIRE) and its international revenues are excluded from the contribution base if the total amount of interstate end-user revenues for the filing entity consolidated with all affiliates is less than 12% of the total of interstate and international end-user revenues for the filing entity consolidated with all affiliates. Affiliated filer entities who do not pass the 12% rule, but whose USF obligation exceeds its interstate revenue may request to be considered for the LIRE exemption on a case by case basis. See 47 C.F.R. § 54.706(c). In addition, filers that provide only international services are exempt regardless of services offered by affiliates. 1 This table shows the contribution base for the Universal Service Fund (USF), but the actual amounts used for determining contributions may differ due to the following factors: (1) Adjustments are made by the Administrator to account for additional and corrected filings received; (2) Exempt amounts were based on revenues and the filer type (i.e., principal business activity) information contained in the FCC Form 499- A filings; (3) The Administrator may use carrier type, revenue type, Line 603 exemption certifications, and additional information requested from filers to determine which filers are required to contribute; (4) Th Administrator bills delinquent filers based on estimated revenues and may, in some instances, include estimated revenue amounts in contribution base amounts; (5) The universal service contribution factors are set quarterly based on FCC Form 499-Q filings; and (6) FCC Form 499-A data are used for true-up and auditing purposes. As a result of these factors, actual contribution bases have been based on different amounts than those shown. 14 Year Quarter Factor 2006 First Quarter 10.2 Second Quarter 10.9 Third Quarter 10.5 Fourth Quarter 9.1 2007 First Quarter 9.7 Second Quarter 11.7 Third Quarter 11.3 Fourth Quarter 11.0 2008 First Quarter 10.2 Second Quarter 11.3 Third Quarter 11.4 Fourth Quarter 11.4 2009 First Quarter 9.5 Second Quarter 11.3 Third Quarter 12.9 Fourth Quarter 12.3 2010 First Quarter 14.1 Second Quarter 15.3 Third Quarter 13.6 Fourth Quarter 12.9 2011 First Quarter 15.5 Second Quarter 14.9 Third Quarter 14.4 Fourth Quarter 15.3 2012 First Quarter 17.9 Second Quarter 17.4 Third Quarter 15.7 Fourth Quarter 17.4 2013 First Quarter 16.1 Second Quarter 15.5 Third Quarter 15.1 Fourth Quarter 15.6 2014 First Quarter 16.4 Second Quarter 16.6 Third Quarter 15.7 Fourth Quarter 16.1 2015 First Quarter 16.8 Second Quarter 17.4 Third Quarter 17.1 Fourth Quarter 16.7 2016 First Quarter 18.2 Second Quarter 17.9 Third Quarter 17.9 Fourth Quarter 17.4 2017 First Quarter 16.7 Second Quarter 17.4 Third Quarter 17.1 Fourth Quarter 18.8 Table 1.6 Universal Service Fund Contribution Factor1 1 Carriers contribute based on projected, collected, end-user interstate and international telecommunications revenues. Source : Quarterly Public Notices on universal service contribution factors are in CC Docket 96-45. See http://www.fcc.gov/encyclopedia/contribution-factor-quarterly-filings-universal-service-fund-usf- management-support. 15 Top 5 Affiliated Entities2 Other Companies Total 2009 $54,503 $21,485 $75,988 72 % 2010 51,655 20,637 72,292 71 2011 50,412 19,911 70,323 72 2012 49,795 20,242 70,037 71 2013 48,530 19,870 68,399 71 2014 46,870 20,072 66,942 70 2015 43,682 20,247 63,930 68 2016 40,013 20,169 60,182 66 First Half 20173 18,721 9,633 28,354 66 Table 1.7 Billed Interstate and International Retail Telecommunications Revenues1 by Top 5 Affiliated Entities vs. Other Companies: 2009 - First Half 2017 (in Millions of Dollars) Note : Detail may not add to totals due to rounding. Source : Data for 2009 through 2015 are based on Form 499-A. Revenues for 2016 are based on Form 499-A filings as of September 7, 2017. Data for 2017 are based on FCC Form 499-Q. Top 5 Share 1 Revenues for 2011 - 2017 are calculated as the sum of Lines 403d to 417d (interstate end user revenue) and 403e to 417e (international end user revenue) from Form 499-A. Previous years were calculated as the sum of Lines 403d to 417d (interstate end user revenue) and 403e to 417e (international end user revenue), minus Lines 412e, 422d, and 422e. 2 The "Top 5 Affiliated Entities" are the five affiliated entities with the greatest revenues as defined by Line 419a, which is the sum of Lines 303a to 314a and Lines 403a to 418a, and is determined as of each year-end affiliate structure. These companies for 2009 and 2010 are (in alphabetical order): AT&T Inc., Deutsche Telekom AG, Qwest Services Corp., Sprint Nextel Corporation, and Verizon Communications. These companies for 2011 to 2012 are (in alphabetical order): AT&T Inc., CenturyLink, Deutsche Telekom AG, Sprint Nextel Corporation, and Verizon Communications. These companies for 2013 - 2017 are (in alphabetical order): AT&T Inc., CenturyLink, Deutsche Telekom AG, SoftBank Corporation (which acquired Sprint Nextel Corporation in June 2013), and Verizon Communications. 3 Preliminary revenues are calculated using Line 116b plus Line 116c for each quarter in FCC Form 499-Q. 16 Intrastate Interstate and International Total % Intrastate % Interstate and International % Total Alabama $1,343 $880 $2,223 1.39 % 1.38 % 1.38 % Alaska 221 163 385 0.23 0.26 0.24 American Samoa 8 6 13 0.01 0.01 0.01 Arizona 1,826 1,303 3,129 1.89 2.04 1.95 Arkansas 804 548 1,352 0.83 0.86 0.84 California 11,983 7,029 19,012 12.41 10.99 11.84 Colorado 1,608 1,202 2,810 1.66 1.88 1.75 Connecticut 1,200 859 2,059 1.24 1.34 1.28 Delaware 319 251 570 0.33 0.39 0.36 District of Columbia 493 375 868 0.51 0.59 0.54 Florida 5,913 3,883 9,796 6.12 6.07 6.10 Georgia 2,932 1,965 4,897 3.04 3.07 3.05 Guam 39 31 70 0.04 0.05 0.04 Hawaii 401 284 685 0.41 0.44 0.43 Idaho 413 303 716 0.43 0.47 0.45 Illinois 3,914 2,551 6,466 4.05 3.99 4.03 Indiana 1,796 1,202 2,998 1.86 1.88 1.87 Iowa 856 624 1,481 0.89 0.98 0.92 Kansas 834 545 1,379 0.86 0.85 0.86 Kentucky 1,215 852 2,067 1.26 1.33 1.29 Louisiana 1,376 842 2,219 1.42 1.32 1.38 Maine 396 284 681 0.41 0.44 0.42 Maryland 2,044 1,530 3,574 2.12 2.39 2.23 Massachusetts 2,326 1,483 3,809 2.41 2.32 2.37 Michigan 2,797 1,742 4,539 2.90 2.73 2.83 Minnesota 1,705 1,174 2,879 1.76 1.84 1.79 Mississippi 739 486 1,224 0.76 0.76 0.76 Missouri 1,700 1,189 2,889 1.76 1.86 1.80 Montana 296 227 524 0.31 0.36 0.33 Nebraska 561 425 986 0.58 0.66 0.61 Nevada 843 560 1,402 0.87 0.88 0.87 New Hampshire 420 315 735 0.43 0.49 0.46 New Jersey 3,149 2,222 5,371 3.26 3.48 3.35 New Mexico 554 411 965 0.57 0.64 0.60 New York 6,814 4,196 11,011 7.05 6.56 6.86 North Carolina 2,909 1,970 4,879 3.01 3.08 3.04 North Dakota 219 163 382 0.23 0.26 0.24 N. Mariana Islands 9 6 15 0.01 0.01 0.01 Ohio 3,421 2,192 5,613 3.54 3.43 3.50 Oklahoma 1,041 665 1,707 1.08 1.04 1.06 Oregon 1,111 774 1,886 1.15 1.21 1.17 Pennsylvania 4,116 2,808 6,924 4.26 4.39 4.31 Puerto Rico 807 663 1,470 0.83 1.04 0.92 Rhode Island 326 205 531 0.34 0.32 0.33 South Carolina 1,279 902 2,181 1.32 1.41 1.36 South Dakota 249 178 426 0.26 0.28 0.27 Tennessee 1,909 1,227 3,135 1.98 1.92 1.95 Texas 7,308 4,504 11,812 7.57 7.05 7.36 Utah 722 508 1,230 0.75 0.79 0.77 Vermont 209 165 374 0.22 0.26 0.23 Virgin Islands 42 51 93 0.04 0.08 0.06 Virginia 2,669 1,919 4,588 2.76 3.00 2.86 Washington 2,041 1,377 3,419 2.11 2.15 2.13 West Virginia 524 431 955 0.54 0.67 0.59 Wisconsin 1,670 1,148 2,818 1.73 1.80 1.76 Wyoming 171 128 299 0.18 0.20 0.19 Total $96,592 $63,930 $160,522 100.00 % 100.00 % 100.00 % Table 1.8 End User Telecommunications Revenue by State: 2015 (in Millions of Dollars) Note : Figures may not add to totals due to rounding. Source : FCC/WCB staff estimates. For methodology end-user revenue per state, see the Technical Appendix at http://www.fcc.gov/encyclopedia/federal-state-joint-board-monitoring-reports. 17 Amount % of Total Amount % of Total Alabama $32,982 $20,157 $51,552 $3,024 $107,715 1.24 % $122,348 1.38 % -$14,633 Alaska 179,057 13,498 85,225 100,858 378,637 4.35 22,701 0.26 355,937 American Samoa 3,266 21 1,065 0 4,352 0.05 764 0.01 3,588 Arizona 71,524 47,174 58,566 7,053 184,317 2.12 181,100 2.04 3,217 Arkansas 113,361 11,158 41,477 8,419 174,415 2.00 76,180 0.86 98,235 California 168,924 233,797 293,804 17,491 714,016 8.20 976,777 10.99 -262,761 Colorado 59,392 9,756 21,769 4,869 95,786 1.10 167,028 1.88 -71,242 Connecticut 454 13,164 19,024 289 32,931 0.38 119,429 1.34 -86,498 Delaware 228 4,128 5,425 0 9,781 0.11 34,848 0.39 -25,068 District of Columbia 0 5,106 6,401 0 11,507 0.13 52,128 0.59 -40,620 Florida 60,719 97,382 96,709 4,466 259,276 2.98 539,589 6.07 -280,312 Georgia 113,940 51,038 88,799 8,421 262,198 3.01 273,110 3.07 -10,912 Guam 12,383 157 679 42 13,261 0.15 4,253 0.05 9,008 Hawaii 8,297 2,775 8,424 21 19,517 0.22 39,533 0.44 -20,016 Idaho 42,915 1,529 9,080 2,015 55,540 0.64 42,080 0.47 13,460 Illinois 111,370 49,194 80,778 4,620 245,962 2.82 354,549 3.99 -108,587 Indiana 112,270 23,940 61,266 4,397 201,873 2.32 166,992 1.88 34,881 Iowa 179,571 7,021 15,606 2,511 204,710 2.35 86,758 0.98 117,952 Kansas 169,021 6,664 21,467 3,780 200,932 2.31 75,706 0.85 125,226 Kentucky 149,860 28,831 43,607 5,011 227,309 2.61 118,381 1.33 108,929 Louisiana 88,078 26,744 60,690 2,887 178,400 2.05 117,059 1.32 61,340 Maine 30,789 4,297 7,182 1,041 43,308 0.50 39,488 0.44 3,820 Maryland 3,629 23,651 21,659 197 49,135 0.56 212,613 2.39 -163,477 Massachusetts 2,392 23,796 36,382 491 63,061 0.72 206,090 2.32 -143,029 Michigan 84,718 61,828 51,332 3,482 201,359 2.31 242,099 2.73 -40,739 Minnesota 169,575 12,013 31,750 4,188 217,526 2.50 163,183 1.84 54,343 Mississippi 180,155 16,816 33,234 9,503 239,709 2.75 67,491 0.76 172,218 Missouri 164,861 15,734 46,736 5,500 232,831 2.67 165,255 1.86 67,576 Montana 101,649 1,488 4,950 1,965 110,052 1.26 31,590 0.36 78,463 Nebraska 90,655 899 11,957 3,455 106,966 1.23 59,032 0.66 47,934 Nevada 25,319 13,082 10,674 883 49,958 0.57 77,804 0.88 -27,846 New Hampshire 13,414 1,915 4,171 551 20,052 0.23 43,789 0.49 -23,737 New Jersey 927 28,178 58,674 0 87,779 1.01 308,828 3.48 -221,049 New Mexico 79,001 20,657 29,544 5,104 134,306 1.54 57,129 0.64 77,177 New York 50,790 102,236 90,111 5,418 248,554 2.85 583,162 6.56 -334,608 North Carolina 85,968 37,314 91,434 6,622 221,338 2.54 273,805 3.08 -52,467 North Dakota 116,939 1,989 2,837 2,395 124,160 1.43 22,656 0.26 101,503 N. Mariana Islands 3,403 189 1,307 0 4,900 0.06 815 0.01 4,084 Ohio 83,413 62,186 77,423 2,551 225,573 2.59 304,626 3.43 -79,052 Oklahoma 131,694 89,897 57,224 10,762 289,577 3.32 92,474 1.04 197,103 Oregon 76,252 7,224 18,975 4,440 106,892 1.23 107,619 1.21 -728 Pennsylvania 72,398 57,562 58,842 4,440 193,242 2.22 390,161 4.39 -196,919 Puerto Rico 115,237 65,965 43,160 33 224,395 2.58 92,133 1.04 132,263 Rhode Island 30 5,828 3,780 0 9,639 0.11 28,484 0.32 -18,846 South Carolina 110,224 23,528 49,583 2,146 185,480 2.13 125,326 1.41 60,154 South Dakota 98,757 1,138 5,749 1,602 107,246 1.23 24,694 0.28 82,552 Tennessee 90,299 34,298 57,494 5,021 187,112 2.15 170,451 1.92 16,661 Texas 296,301 95,466 244,014 12,188 647,969 7.44 625,888 7.05 22,081 Utah 31,467 3,624 23,363 1,346 59,800 0.69 70,605 0.79 -10,805 Vermont 21,043 1,428 4,090 346 26,907 0.31 22,890 0.26 4,016 Virgin Islands 16,428 407 2,992 0 19,827 0.23 7,104 0.08 12,723 Virginia 87,189 19,792 44,212 7,987 159,179 1.83 266,621 3.00 -107,442 Washington 80,129 18,973 37,389 1,450 137,941 1.58 191,410 2.15 -53,469 West Virginia 60,230 10,319 15,417 1,395 87,361 1.00 59,917 0.67 27,443 Wisconsin 193,929 20,369 31,178 10,999 256,475 2.94 159,572 1.80 96,902 Wyoming 43,211 88 6,528 403 50,230 0.58 17,819 0.20 32,411 Total $4,490,029 $1,537,409 $2,386,757 $298,076 $8,712,276 100.00 % $8,883,939 100.00 % -$171,663 4 Net dollar flow is positive when payments from USF to carriers exceed contributions to USF. Total is negative because of administrative expenses. Rural Health Care Total Notes: Figures may not add due to rounding. 1 Data are from USAC. 2 High-cost support excludes penalties from Mobility Fund and includes recovered forfeited funds for CAF-Phase I Support. 3 Contributions include administrative cost of approximately $172 million, as shown in USAC's Annual Report. Allocation of contributions among states is an FCC staff estimate. See the Technical Appendix at http://www.fcc.gov/encyclopedia/federal-state-joint-board-monitoring-reports. Table 1.9 Universal Service Support Mechanisms by State: 2016 (Annual Payments and Contributions in Thousands of Dollars) Payments from USF to Providers Estimated Contributions 3 Estimated Net Dollar Flow4 High-Cost Support2 Low-Income Support Schools & Libraries 18 Year High-Cost Support Low-Income Support Rural Health Care Schools and Libraries Total 2001 $2,602 $584 $8 $1,464 $4,659 2002 2,978 673 16 1,683 5,350 2003 3,273 713 3 1,644 5,633 2004 3,488 759 1 1,076 5,324 2005 3,824 809 26 1,862 6,520 2006 4,096 820 41 1,669 6,626 2007 4,287 823 37 1,808 6,955 2008 4,478 819 49 1,760 7,106 2009 4,292 1,025 72 1,878 7,268 2010 4,268 1,316 110 2,282 7,976 2011 4,031 1,751 141 2,233 8,156 2012 4,147 2,189 155 2,218 8,710 2013 4,165 1,798 159 2,204 8,326 2014 3,733 1,660 193 2,269 7,855 2015 4,499 1,514 279 2,080 8,372 2016 4,490 1,537 298 2,387 8,712 Table 1.10 Universal Service Disbursements 2001-2016 (in Millions of Dollars) Notes : Figures may not add due to rounding. The figures used in this table are for the calendar year and include disbursements that were committed over several years but paid out in the respective calendar year. In Sections 4 and 5, figures for the Schools and Libraries program and the Rural Health Care program are reported based on fiscal year rather than calendar year. High-cost support excludes penalties for Mobility Fund and includes recovered forfeited funds for CAF-Phase I Support. Source : Universal Service Administration Company (USAC). 19 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year High Cost High Cost Loop Support $158.95 $155.34 $125.65 $125.65 $565.59 Broadband Loop Support $240.94 $233.97 $186.12 $186.12 $847.15 CAF - Phase I Frozen Support 1 $41.69 $36.75 $36.73 $36.75 $151.92 Frozen Competitive ETC Support 2 $144.63 $124.59 $124.60 $123.80 $517.62 CAF - Intercarrier Compensation Support $107.72 $107.96 $106.84 $102.83 $425.35 CAF - Phase II Cost Model $397.22 $402.14 $394.56 $390.78 $1,584.70 Rural Broadband Experiments $0.77 $0.83 $0.83 $0.83 $3.26 Alternative Connect America Cost Model $138.95 $138.95 $277.90 Alaska Plan Support $32.08 $32.08 $32.08 $96.24 Change to High-Cost Account 3 $33.08 $31.34 -$21.36 -$12.79 $30.27 Prior Period Adjustment -$9.85 -$3.86 -$15.07 $15.67 -$13.11 USAC Administrative Costs $11.61 $13.36 $9.58 $10.14 $44.69 Interest Income 4 -$4.14 -$4.39 -$4.26 -$4.74 -$17.53 Program Total $1,122.62 $1,130.11 $1,115.25 $1,146.07 $4,514.05 Low Income Lifeline Assistance $381.11 $373.83 $330.26 $319.85 $1,405.05 Link-Up $0.12 $0.07 $0.09 $0.04 $0.32 Prior Period Adjustment -$26.13 -$27.03 -$54.67 -$44.46 -$152.29 USAC Administrative Costs $7.36 $11.40 $8.49 $14.69 $41.94 Interest Income 4 -$0.15 -$0.14 -$0.17 -$0.28 -$0.74 Program Total $362.31 $358.13 $284.00 $289.84 $1,294.28 Rural Health $0.00 Rural Health Care Support $89.80 $98.90 -$2.45 $104.81 $291.06 Prior Period Adjustment -$1.41 -$0.35 -$1.10 $1.69 -$1.17 USAC Administrative Costs $3.35 $3.33 $3.17 $2.47 $12.32 Interest Income 4 -$0.70 -$0.81 -$0.85 -$1.17 -$3.53 Program Total $91.04 $101.07 -$1.23 $107.80 $298.68 Schools & Libraries Schools and Libraries Support $380.03 $380.03 $486.57 $486.57 $1,733.20 Prior Period Adjustment -$10.58 -$1.93 -$6.08 $5.77 -$12.82 Interest Income 4 -$10.08 -$10.56 -$10.12 -$10.33 -$41.09 USAC Administrative Costs $41.50 $34.70 $27.72 $17.46 $121.38 Program Total $400.87 $402.24 $498.09 $499.47 $1,800.67 Grand Total $1,976.84 $1,991.55 $1,896.11 $2,043.18 $7,907.68 Applicable interstate and international end-user revenues Reported contribution base revenues $13,971.51 $13,615.14 $13,110.46 $13,025.59 Circulatory Adjustment Amount carriers will contribute to USF in this quarter -$1,976.84 -$1,991.55 -$1,896.11 -$2,043.18 Subtotal $11,994.67 $11,623.59 $11,214.35 $10,982.41 Adjustment factor for uncollectibles 1.0% 1.0% 1.0% 1.0% Contribution base at the time the factor was calculated $11,874.72 $11,507.35 $11,102.21 $10,872.59 Contribution factor 16.7% 17.4% 17.1% 18.8% Contribution factor times contribution base $1,983.08 $2,002.28 $1,898.48 $2,044.05 4 Interest income is shown as negative because it is subtracted from expenses to yield the total. Source : Support mechanism data are from USAC Appendix M02 from pertinent filings as shown at http://www.usac.org/about/tools/fcc/filings/default.aspx. Contribution factor information is available at https://www.fcc.gov/encyclopedia/contribution-factor-quarterly-filings-universal-service-fund-usf-management-support. Table 1.11 Universal Service Program Requirements and Contribution Factors for 2017 (in Millions of Dollars) 1 In the USF/ICC Transformation Order, the Commission converted support received by price cap carriers and their rate-of-return affiliates, including: IAS, HCMS, ICLS, LSS, and HCLS, to CAF Phase I Frozen Support. USF/ICC Transformation Order, paras. 128-157. 2 In the USF/ICC Transformation Order, the Commission froze support received by competitive ETCs, including IAS, HCMS, ICLS, LSS, and HCLS at 2011 levels, effective January 1, 2012, and began phasing the frozen support down effective July 1, 2012. USF/ICC Transformation Order, paras. 498-532. 3 In the USF/ICC Transformation Order, the Commission created the Connect America reserve to be used to manage fluctuations in high-cost demand. USF/ICC Transformation Order, paras. 547-556. Subsequently, in 2016, in the Rate-of-Return Reform Order , the Commission directed USAC to eliminate the CAF reserve and to combine those funds with the high-cost account. Connect America Fund et al ., WC Docket No. 10-90 et al., Report and Order, Order and Order on Reconsideration and Further Notice of Proposed Rulemaking, 31 FCC Rcd 3087, 3111, paras. 17-79, n.130 (2016) (Rate-of-Return Reform Order) . 20 High-Cost Support Low-Income Support Rural Health Care Schools and Libraries Total Per-Household Low Estimate Per-Household High Estimate 2011 $3.34 $1.25 $0.07 $1.75 $6.41 $2.88 $3.52 2012 3.28 1.74 0.09 1.74 6.85 3.08 3.77 2013 3.12 1.12 0.12 1.62 5.98 2.69 3.29 2014 3.05 1.13 0.16 1.60 5.94 2.67 3.26 2015 2.99 0.98 0.18 1.61 5.76 2.59 3.17 2016 2.96 1.02 0.24 1.48 5.70 2.56 3.13 2017 2.88 0.82 0.19 1.15 5.04 2.27 2.77 Source : Universal service contributions in 2011 from Table 1.10 of the 2011 Monitoring Report, 2012 from Table 1.9 of the 2012 Monitoring Report, 2013 from Table 1.9 of the 2013 Monitoring Report , and for 2014 - 2017, Table 1.11 of the Monitoring Report for the respective year. Inflation adjusted using CPI values reported for July of each year in Table 7.3. Household data as reported in Table 6.1 were used to calculate per household amount. Notes : Performance measures reported pursuant to the USF/ICC Transformation Order and Lifeline Reform Order . Figures do not represent the average amount individual households see on their bills because universal service contribution data do not separate business from residential contributions. The Commission does not currently collect data that would allow the residential amount to be calculated accurately. FCC staff, using data from FCC Forms 477 and 499, Access filings with the FCC and a third party report, estimates that contributions based on services typically sold to residential users represent roughly one-half of overall contributions; the third party data source used in creating these estimates is the 2015 Telecommunications Industry Association (TIA) Market Forecast and Review. FCC staff believe that the residential portion of the total contribution is between 45% (low estimate) and 55% (high estimate). Table 1.12 Monthly Universal Service Contributions per Household Inflation Adjusted 2015 Dollars Total Contributions Residential Contributions 21 Section 2 – Lifeline (Low Income) Overview – Lifeline and Link Up Programs for Low-Income Consumers Since 1985, the Universal Service Lifeline program has provided a discount on phone service for qualifying low-income consumers to ensure that all Americans have the opportunities and security that phone service brings, including being able to connect to jobs, family and emergency services. Recently, the Commission has made ensuring the availability of broadband service for low-income Americans a goal of the Lifeline program. In 2016, the Commission adopted an order to comprehensively reform the Lifeline program. Among other things, the Commission included broadband as a supported service in the Lifeline program, set out minimum service standards for Lifeline-supported services, and directed USAC to establish a National Eligibility Verifier to make independent subscriber eligibility determinations. Many of the reforms took effect on December 2, 2016. The initial National Verifier states are set to launch in early 2018. In 2017, the Commission adopted an order focusing enhanced Tribal lands support to facilities-based providers serving rural Tribal lands. The Lifeline program is available to eligible low-income consumers in every state, territory, commonwealth, and on Tribal lands. The Link Up program offsets the cost of service activation to qualifying low-income households. Since 2013, Link Up has been available only on Tribal lands. Consumers with proper proof of eligibility may be qualified to enroll. To participate in the program, consumers must have an income that is at or below 135% of the federal Poverty Guidelines or participate in a qualifying assistance program. The Lifeline program is administered by the Universal Service Administrative Company (USAC). Additional information about the Lifeline program can be found on the Commission’s website at http://www.fcc.gov/lifeline and on USAC’s website at http://www.usac.org/li/. Please note that the information provided in this report is based upon the program rules through June 2017. 22 Table 2.1 Lifeline Subscribers and Link Up Beneficiaries Year Non-Tribal Tribal Total Non-Tribal Tribal Total 1987 1,063 8 1988 1,829 106 1989 2,115 207 1990 2,467 513 1991 2,984 640 1992 3,440 743 1993 3,972 737 1994 4,423 838 1995 4,914 824 1996 5,233 808 1997 1 5,111 1998 5,376 0 5,376 2,195 0 2,195 1999 5,638 0 5,638 1,835 0 1,835 2000 5,856 4 5,861 1,690 2 1,692 2001 6,088 53 6,140 1,670 23 1,694 2002 6,393 111 6,504 1,657 30 1,687 2003 6,352 146 6,498 1,662 23 1,685 2004 6,612 176 6,788 1,670 42 1,712 2005 6,829 234 7,063 1,672 90 1,762 2006 6,634 287 6,921 1,553 101 1,654 2007 6,615 328 6,943 1,382 112 1,494 2008 6,382 350 6,732 1,510 118 1,627 2009 7,661 371 8,032 1,751 111 1,862 2010 9,883 382 10,265 2,509 126 2,635 2011 13,301 463 13,764 4,014 285 4,300 2012 16,405 761 17,166 1,228 180 1,408 2013 13,834 650 14,483 0 17 17 2014 12,943 502 13,446 0 29 29 2015 12,117 418 12,535 0 20 20 2016 12,408 361 12,769 0 21 21 1 Subscriber data were not collected in 1997. Lifeline subscribership data were estimated by USAC. Link up data were not estimated. Source : Universal Service Administrative Company. Lifeline Link Up (in Thousands) Note : The Lifeline subscribers and Link Up beneficiaries represent USAC data for the time period January through December, including true-ups reported through August 2017. Data for 2010-2015 were revised because carriers can revise their filings. When carriers revise their line counts up, they receive more support and when carriers revise their line counts down, they receive less support. 23 Table 2.2 Low-Income Claims (in Thousands of Dollars) Total Year General Additional Tribal 2 TLS 3 PICC 4 Total Non-Tribal Tribal Total 1988 $31,952 $0 $0 $0 $31,952 $1,991 $0 $1,991 $33,943 1989 50,878 0 0 0 50,878 4,480 0 4,480 55,358 1990 62,464 0 0 0 62,464 11,351 0 11,351 73,815 1991 79,104 0 0 0 79,104 13,705 0 13,705 92,809 1992 93,766 0 0 0 93,766 15,342 0 15,342 109,108 1993 109,083 0 0 0 109,083 17,019 0 17,019 126,102 1994 123,284 0 0 0 123,284 18,573 0 18,573 141,857 1995 137,277 0 0 0 137,277 18,392 0 18,392 155,670 1996 148,186 0 0 0 148,186 18,247 0 18,247 166,433 1997 147,579 0 0 0 147,579 13,711 0 13,711 161,290 1998 1 416,504 0 2,700 2,802 422,006 42,461 0 42,461 464,467 1999 438,578 0 3,134 4,450 446,162 33,988 0 33,988 480,150 2000 482,052 522 2,846 3,168 488,588 30,411 30 30,441 519,029 2001 548,419 6,960 3,195 0 558,574 30,314 475 30,788 589,362 2002 623,350 17,955 3,779 0 645,083 30,323 700 31,022 676,106 2003 657,095 24,167 4,425 0 685,687 30,170 515 30,686 716,373 2004 695,188 30,502 5,111 0 730,800 30,898 1,230 32,129 762,929 2005 716,133 45,124 6,215 0 767,472 31,715 2,788 34,503 801,975 2006 703,958 61,524 8,885 0 774,367 29,832 2,869 32,701 807,068 2007 710,180 73,145 8,514 0 791,839 27,816 3,575 31,391 823,230 2008 695,015 80,914 8,634 0 784,563 30,682 6,578 37,260 821,823 2009 867,541 88,061 8,959 0 964,561 40,807 7,485 48,291 1,012,852 2010 1,125,599 92,877 22,197 0 1,240,674 67,268 9,798 77,066 1,317,740 2011 1,521,902 118,119 10,871 0 1,650,892 108,577 21,528 130,104 1,780,997 2012 1,919,834 210,390 6,646 0 2,136,870 34,770 11,940 46,710 2,183,580 2013 1,607,165 179,888 2,690 0 1,789,743 0 567 567 1,790,310 2014 1,492,205 137,358 0 0 1,629,563 0 640 640 1,630,203 2015 1,391,344 119,041 0 0 1,510,385 0 447 447 1,510,832 2016 1,417,308 103,575 0 0 1,520,883 0 486 486 1,521,369 2 Tribal Lifeline subscribers also receive General support which is currently $9.25 per subscriber. This amount is not included in Additional Tribal support. 3 TLS is an abbreviation for toll limitation service. 4 Carriers no longer charge a residential Presubscribed Interexchange Carrier Charge (PICC) as of July 1, 2000. Source : Universal Service Administrative Company. Lifeline Link Up Note : Data for 2010-2015 were updated to account for true-ups. 1 Effective in 1998, the federal Lifeline support mechanism was expanded so that a basic level of assistance would be provided in all states. Further, the basic level of federal support was increased in 1998. 24 Lifeline Link Up General Additional Tribal Non-Tribal Tribal Alabama $19,822 $196 $0 $0 $0 $20,018 Alaska 3,844 9,542 0 13 0 13,399 American Samoa 54 0 0 0 0 54 Arizona 29,559 16,182 0 249 0 45,990 Arkansas 11,090 2 0 0 0 11,092 California 232,292 23 0 0 0 232,316 Colorado 9,695 0 0 0 0 9,695 Connecticut 13,151 0 0 0 0 13,151 Delaware 4,163 0 0 0 0 4,163 District Of Columbia 5,114 0 0 0 0 5,114 Florida 93,402 0 0 0 0 93,402 Georgia 50,820 0 0 0 0 50,820 Guam 155 0 0 0 0 155 Hawaii 2,150 623 0 0 0 2,774 Idaho 1,468 57 0 0 0 1,525 Illinois 48,667 0 0 0 0 48,667 Indiana 23,845 0 0 0 0 23,845 Iowa 7,146 5 0 0 0 7,151 Kansas 6,661 9 0 0 0 6,670 Kentucky 28,718 0 0 0 0 28,718 Louisiana 26,747 0 0 0 0 26,747 Maine 4,233 11 0 0 0 4,244 Maryland 23,319 0 0 0 0 23,319 Massachusetts 23,643 0 0 0 0 23,643 Michigan 60,327 107 0 0 0 60,434 Minnesota 10,847 1,063 0 0 0 11,910 Mississippi 16,152 767 0 0 0 16,920 Missouri 15,441 2 0 0 0 15,443 Montana 604 858 0 12 0 1,475 Nebraska 854 60 0 0 0 914 Nevada 12,436 267 0 0 0 12,703 New Hampshire 1,902 0 0 0 0 1,902 New Jersey 28,037 0 0 0 0 28,037 New Mexico 10,590 9,709 0 153 0 20,452 New York 101,920 0 0 0 0 101,921 North Carolina 37,498 24 0 0 0 37,522 North Dakota 982 965 0 10 0 1,956 Northern Mariana Islands 264 0 0 0 0 264 Ohio 61,672 0 0 0 0 61,672 Oklahoma 27,067 59,801 0 31 0 86,900 Oregon 7,207 36 0 0 0 7,243 Pennsylvania 57,821 0 0 0 0 57,821 Puerto Rico 65,696 0 0 0 0 65,696 Rhode Island 5,806 0 0 0 0 5,806 South Carolina 23,306 9 0 0 0 23,315 South Dakota 866 472 0 7 0 1,344 Tennessee 34,364 0 0 0 0 34,364 Texas 93,776 0 0 0 0 93,776 Utah 3,133 459 0 9 0 3,601 Vermont 1,442 0 0 0 0 1,442 Virgin Islands 354 0 0 0 0 354 Virginia 19,796 0 0 0 0 19,796 Washington 17,549 1,258 0 0 0 18,807 West Virginia 10,399 0 0 0 0 10,399 Wisconsin 19,358 1,062 0 1 0 20,421 Wyoming 83 6 0 0 0 89 Total $1,417,308 $103,575 $0 $486 $0 $1,521,369 (in Thousands of Dollars) Table 2.3 Low-Income Claims by State: 2016 Source : Universal Service Administrative Company. Notes : These dollars represent submitted claims to USAC for the time period January 2016 through December 2016, including true-ups reported through August 2017. Tribal Lifeline subscribers also receive General support which is currently $9.25 per subscriber. This amount is not included in Tribal support. For Link Up, the payments and subscribers for the two categories of recipients are kept separate. TLS Total State or Jurisdiction 25 Table 2.4 ILECs CETCs Total 1998 $464,207 $260 $464,467 0.1 % 1999 479,353 796 480,150 0.2 2000 517,901 1,128 519,029 0.2 2001 585,790 3,572 589,362 0.6 2002 663,009 13,097 676,106 1.9 2003 693,378 22,994 716,373 3.2 2004 723,580 39,349 762,929 5.2 2005 734,344 67,631 801,975 8.4 2006 707,135 99,933 807,068 12.4 2007 701,990 121,240 823,230 14.7 2008 674,805 147,017 821,823 17.9 2009 642,644 370,208 1,012,852 36.6 2010 595,604 722,136 1,317,740 54.8 2011 532,226 1,248,771 1,780,997 70.1 2012 450,652 1,732,928 2,183,580 79.4 2013 296,038 1,494,273 1,790,310 83.5 2014 224,016 1,406,187 1,630,203 86.3 2015 165,731 1,345,101 1,510,832 89.0 2016 134,170 1,387,198 1,521,369 91.2 Low-Income Claims Received by ILECs and CETCs (in Thousands of Dollars) Percent CETCs Source : Universal Service Administrative Company. Notes : CETCs include both wireless and wireline carriers. Data for 2010-2015 were updated to account for true-ups. 26 Rank Affiliated Entity Name 1 Lifeline Support Link Up Support Total Low-Income Support Percent of Total Cumulative Percent of Total 1 América Móvil 2 $490,279 $0 $490,279 32.2% 32.2% 2 SoftBank Corp. 3 249,047 0 249,047 16.4 48.6 3 Telrite Corporation 95,446 0 95,446 6.3 54.9 4 I-Wireless, LLC 89,092 0 89,092 5.9 60.7 5 Quadrant Holdings Group LLC 84,623 0 84,623 5.6 66.3 6 Budget PrePay, Inc. 70,855 0 70,855 4.7 70.9 7 AT&T Inc. 61,157 0 61,157 4.0 75.0 8 American Broadband and Telecommunications Co. 34,170 0 34,170 2.2 77.2 9 Assist Wireless, LLC 29,320 0 29,320 1.9 79.1 10 Smith Bagley, Inc. 26,601 390 26,991 1.8 80.9 11 Blue Jay Wireless, LLC 23,859 0 23,859 1.6 82.5 12 Boomerang Wireless, LLC 23,233 0 23,233 1.5 84.0 13 TSC Acquisition Corporation 23,144 0 23,144 1.5 85.5 14 Frontier Communications Corporation 19,331 0 19,331 1.3 86.8 15 Telecom Service Bureau, Inc. 17,103 0 17,103 1.1 87.9 16 Verizon Communications Inc. 14,632 0 14,632 1.0 88.9 17 KDDI America, Inc. 14,577 0 14,577 1.0 89.8 18 TerraCom/YourTel America 13,964 0 13,964 0.9 90.8 19 CenturyLink, Inc. 12,968 0 12,968 0.9 91.6 20 True Wireless, LLC 11,896 0 11,896 0.8 92.4 21 General Communication, Inc. 11,884 3 11,887 0.8 93.2 22 Amerimex Communications Corporation 10,962 0 10,962 0.7 93.9 23 ATN International, Inc. 8,631 0 8,631 0.6 94.5 24 Amvensys Telecom Holdings 8,148 0 8,148 0.5 95.0 25 PR Wireless LLC 7,207 0 7,207 0.5 95.5 26 Cox Communications, Inc. 6,445 0 6,445 0.4 95.9 27 Nexus Communications, Inc. 4,353 0 4,353 0.3 96.2 28 Head Start Telecom, Inc. 3,929 0 3,929 0.3 96.4 29 Global Connection Inc. of America 3,794 0 3,794 0.2 96.7 30 Windstream Holdings, Inc. 3,605 0 3,605 0.2 96.9 Other Carriers 46,629 93 46,722 3.1 100.0 All Affiliated Entities $1,520,883 $486 $1,521,369 100.0% 100.0% Source : Universal Service Administrative Company. Table 2.5 Low-Income Claims by Program and by Affiliated Entities: 2016 (in Thousands of Dollars) 2 América Móvil owns TracFone Wireless. 3 SoftBank Corp. owns Sprint and Virgin Mobile USA. 1 Affiliated entities include all commonly-controlled or commonly-owned affiliates as of year-end 2016. 27 Month Tribal Lifeline Subscribers Non-Tribal Lifeline Subscribers Total Lifeline Subscribers January-13 687,479 13,303,577 13,991,056 February-13 717,843 12,944,936 13,662,779 March-13 740,931 13,107,781 13,848,712 April-13 717,844 13,230,164 13,948,008 May-13 708,079 13,602,484 14,310,563 June-13 695,675 14,016,409 14,712,084 July-13 628,270 14,220,074 14,848,344 August-13 611,174 14,445,144 15,056,318 September-13 576,349 14,522,804 15,099,153 October-13 578,015 14,497,346 15,075,361 November-13 577,565 14,290,330 14,867,895 December-13 555,205 13,824,438 14,379,643 January-14 534,278 13,438,191 13,972,469 February-14 534,495 13,498,435 14,032,930 March-14 521,032 13,449,619 13,970,651 April-14 518,174 13,351,505 13,869,679 May-14 496,103 13,193,997 13,690,100 June-14 497,044 12,959,268 13,456,312 July-14 501,147 12,767,197 13,268,344 August-14 499,482 12,759,930 13,259,412 September-14 491,773 12,849,360 13,341,133 October-14 490,847 12,737,761 13,228,608 November-14 481,791 12,376,070 12,857,861 December-14 463,668 11,936,299 12,399,967 January-15 435,030 11,183,971 11,619,001 February-15 428,878 11,231,148 11,660,026 March-15 426,301 11,364,309 11,790,610 April-15 421,292 11,526,779 11,948,071 May-15 412,394 11,804,892 12,217,286 June-15 417,345 12,021,290 12,438,635 July-15 421,841 12,321,392 12,743,233 August-15 415,063 12,573,385 12,988,448 September-15 416,886 12,781,917 13,198,803 October-15 411,379 12,890,747 13,302,126 November-15 405,288 12,864,058 13,269,346 December-15 407,188 12,836,095 13,243,283 January-16 390,973 12,395,760 12,786,733 February-16 391,762 12,363,107 12,754,869 March-16 397,601 12,435,458 12,833,059 April-16 402,272 12,566,944 12,969,216 May-16 405,493 12,637,285 13,042,778 June-16 349,277 12,723,139 13,072,416 July-16 338,467 12,787,396 13,125,863 August-16 332,773 12,433,730 12,766,503 September-16 333,456 12,447,817 12,781,273 October-16 334,714 12,330,333 12,665,047 November-16 331,315 12,151,180 12,482,495 December-16 318,624 11,623,988 11,942,612 January-17 272,898 10,986,541 11,259,439 February-17 273,754 10,834,858 11,108,612 March-17 273,329 10,671,017 10,944,346 April-17 264,467 10,457,574 10,722,041 May-17 266,564 10,403,921 10,670,485 June-17 265,292 10,365,781 10,631,073 Source : Univeral Service Administration Company. Table 2.6 Total Monthly Lifeline Subscribers Since January 2013 28 State As a result of ETC recertification attempt1 As a result of attempt by State Administrator, ETC Access to Eligibility Data, or USAC2 Total Alabama 20 1 20 Alaska 8 1 9 American Samoa 0 0 0 Arizona 25 5 29 Arkansas 10 2 11 California 0 744 744 Colorado 9 1 10 Connecticut 7 1 8 Delaware 1 1 2 District of Columbia 2 1 4 Florida 25 21 46 Georgia 13 8 21 Guam 0 0 0 Hawaii 3 0 3 Idaho 0 1 2 Illinois 12 8 20 Indiana 14 5 19 Iowa 3 2 5 Kansas 6 1 7 Kentucky 13 4 16 Louisiana 14 5 19 Maine 4 0 4 Maryland 4 6 11 Massachusetts 10 8 18 Michigan 26 8 34 Minnesota 10 1 11 Mississippi 4 10 13 Missouri 23 1 23 Montana 0 1 2 Nebraska 0 0 0 Nevada 12 4 16 New Hampshire 1 1 1 New Jersey 2 7 9 New Mexico 7 4 11 New York 16 23 38 North Carolina 12 12 25 North Dakota 2 0 2 Northern Mariana Isl 1 0 1 Ohio 34 13 47 Oklahoma 48 5 53 Oregon 0 2 3 Pennsylvania 20 4 24 Puerto Rico 71 1 72 Rhode Island 6 2 8 South Carolina 19 6 25 South Dakota 1 0 1 Tennessee 6 6 12 Texas 26 30 56 Utah 1 1 2 Vermont 0 0 0 Virgin Islands 1 0 1 Virginia 5 7 12 Washington 3 13 16 West Virginia 5 3 8 Wisconsin 6 2 8 Wyoming 0 0 0 Total 572 993 1,566 Source : Universal Service Administrative Company. Table 2.7 Lifeline De-Enrollments or Scheduled to be De-Enrolled by State in 2016 (in Thousands) 1 Column J of FCC Form 555. 2 Column L of FCC Form 555. 29 All No Yes No Yes No Yes Alabama 122 55 178 1 # 1 123 55 179 Alaska 0 0 0 0 35 35 0 35 35 American Samoa 0 # # 0 0 0 0 # # Arizona 177 34 211 3 53 56 179 87 266 Arkansas 77 23 100 0 # # 77 23 100 California 1,075 1,018 2,093 0 # # 1,075 1,018 2,093 Colorado 61 26 87 # 0 # 61 26 87 Connecticut 82 36 118 0 0 0 82 36 118 Delaware 25 12 38 0 0 0 25 12 38 District of Columbia 42 4 46 0 0 0 42 4 46 Florida 581 261 841 0 0 0 581 261 841 Georgia 402 56 458 0 0 0 402 56 458 Guam 0 1 1 0 0 0 0 1 1 Hawaii 15 2 17 2 # 2 17 2 19 Idaho 6 7 13 0 # # 6 8 13 Illinois 418 20 438 0 0 0 418 20 438 Indiana 174 41 215 0 0 0 174 41 215 Iowa 46 18 64 # 0 # 46 18 64 Kansas 47 13 60 # # # 47 13 60 Kentucky 224 35 259 0 0 0 224 35 259 Louisiana 202 39 241 0 0 0 202 39 241 Maine 26 12 38 0 # # 26 12 38 Maryland 154 56 210 0 0 0 154 56 210 Massachusetts 117 96 213 0 0 0 117 96 213 Michigan 437 106 543 # # # 437 107 543 Minnesota 58 37 94 3 # 4 61 37 98 Mississippi 113 29 143 3 # 3 116 29 146 Missouri 119 20 139 0 # # 119 20 139 Montana 0 2 2 0 3 3 0 5 5 Nebraska 1 7 7 0 # # 1 7 8 Nevada 79 32 111 # 1 1 79 33 112 New Hampshire 13 4 17 0 0 0 13 4 17 New Jersey 140 112 253 0 0 0 140 112 253 New Mexico 34 28 62 0 34 34 34 61 95 New York 544 374 918 0 # # 544 374 918 North Carolina 244 94 338 0 # # 244 94 338 North Dakota 1 4 5 2 2 4 3 6 9 Northern Mariana Islands 0 2 2 0 0 0 0 2 2 Ohio 429 126 556 0 0 0 429 126 556 Oklahoma 32 6 38 180 26 206 212 32 244 Oregon 25 40 65 # # # 25 40 65 Pennsylvania 421 100 521 0 0 0 421 100 521 Puerto Rico 450 142 592 0 0 0 450 142 592 Rhode Island 32 21 52 0 0 0 32 21 52 South Carolina 171 39 210 # # # 171 39 210 South Dakota 2 3 6 0 2 2 2 5 8 Tennessee 240 70 310 0 0 0 240 70 310 Texas 651 194 845 0 # # 651 194 845 Utah 19 8 27 # 2 2 19 9 28 Vermont 2 11 13 0 0 0 2 11 13 Virgin Islands 1 2 3 0 0 0 1 2 3 Virginia 128 51 178 0 0 0 128 51 178 Washington 96 58 154 3 1 4 99 59 158 West Virginia 86 8 94 0 0 0 86 8 94 Wisconsin 145 26 171 1 3 4 145 29 174 Wyoming # 1 1 # # # # 1 1 Total 8,785 3,623 12,408 197 164 361 8,982 3,787 12,769 Source : Universal Service Administrative Company. Table 2.8 Non-Tribal Tribal Facilities-Based Facilities-Based Facilities-Based Low-Income Subscribers by State in 2016 by Facilities Type of Carrier (in Thousands) Notes : # Indicates > 0 subscribers and less than 500 Total TotalTotal Non-facilities based carriers have either submitted a compliance plan with the FCC that they are not a facilities-based provider or have been approved to be a non- facilities-based provider by the FCC. Other carriers are assumed to be facilities-based. State 30 Section 3 – Connect America Fund (High Cost) Overview – Connect America Fund Program The federal universal service Connect America Fund program (formerly High-Cost Support) is designed to ensure that consumers in rural, insular, and high-cost areas have access to modern communications networks capable of providing voice and broadband service, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. The program fulfills this universal service goal by allowing eligible carriers who serve these areas to recover some of their costs from the federal USF. As in the 2016 Report, all support dollar values in these tables reflect claims1 as opposed to disbursements.2 These claim dollars are subject to true-ups. For example, claims for support in 2012 may be trued-up in 2014; such a true-up is reflected in the year supported (2012), not in the year the true- up was made (2014). Data on changes in local exchange carriers and High-Cost ILEC support data by study area are available at http://www.fcc.gov/encyclopedia/neca-usac-data-0. Please note that the information provided in this report is based upon the program rules through June 30, 2017. 1 A “claim” is the distribution of funds in support of a specified time period. These funds were distributed in that period and possibly a later time period. The disbursements in later time periods are the result of true-ups to resolve differences between initial payments and disbursements necessitated by revisions to supporting data made at that later date. Claims are positive values with the possible exceptions of CAF Intercarrier Compensation (CAF ICC) support and Connect America Cost Model (CACM) support. CAF ICC claims can be negative when a study area’s actual access recovery charge revenues in the prior two years substantially exceed the forecasted amount. Some CACM initial claims were negative as a result of true-ups when Frozen High Cost support exceeded CACM support. 2 A “disbursement” is the distribution of funds in a specified time period. These funds were distributed in support of high-cost mechanisms in that period and possibly in support of earlier time periods. The disbursements in support of earlier time periods are the result of true-ups to resolve differences between initial payments and disbursements necessitated by revisions to supporting data. It is possible for disbursements to be negative, thus requiring the recipient to return dollars to the high-cost fund. Some negative disbursements are penalties (see the file “HC Penalties” in the Supplementary Material). Penalties are not included in claims. 31 2009 1,850$ 1,278$ 3,128$ 1,203$ 4,332$ 2010 1,928 1,165 3,093 1,185 4,278 2011 1,957 1,030 2,987 1,154 4,142 2012 1,970 1,189 3,158 967 4,126 2013 2,020 1,356 3,376 782 4,158 2014 2,047 1,115 3,161 608 3,769 2015 2,043 1,845 3,889 615 4,504 2016 2,040 1,845 3,885 676 4,560 2017* 2,248 1,787 4,035 624 4,659 Source : Universal Service Administrative Company filings to the FCC with prior-period adjustments through June 2017. * Estimates for 2017 extrapolated from claims through June 2017. Total SupportYear Rate-of-Return Carriers Notes : Details may not appear to add up to totals due to rounding. Table 3.1 High-Cost Support Fund Claim History (in Millions of Dollars) Price Cap Carriers ILEC Total CETC Total 32 2009 $ 798 $ 29 $ 5 $ 240 $ 0 $ 777 $ 0 $ 0 $ 1,850 2010 817 50 6 228 0 827 0 0 1,928 2011 806 66 6 220 0 859 0 0 1,957 2012 791 48 6 110 169 845 0 0 1,970 2013 767 31 6 0 345 871 0 0 2,020 2014 745 28 5 0 359 909 0 0 2,047 2015 718 20 5 0 377 923 0 0 2,043 2016 691 12 5 0 395 937 0 0 2,040 2017* 525 4 5 0 396 710 556 54 2,250 * Estimates for 2017 extrapolated from claims through June 2017. 1 Interstate Common Line Support was expanded to include standalone broadband in January 2017 and became Connect America Fund Broadband Loop Support (CAF BLS). Source : Universal Service Administrative Company filings to the FCC with prior-period adjustments through June 2017. High-Cost Loop Support Safety Net Additive Support Safety Valve Support Local Switching Support Intercarrier Compensation Broadband Loop Support1 Alternative Connect America Model Alaska Plan Total Support (in Millions of Dollars) High-Cost Support Fund Claim History - Rate of Return Table 3.2 Year Note : Details may not appear to add up to totals due to rounding. 33 2009 $ 248 $ 11 $ 170 $ 461 $ 58 $ 0 $ 0 $ 0 $ 0 $ 329 $ 1,278 2010 168 12 157 457 66 0 0 0 0 306 1,165 2011 100 11 145 441 61 0 0 0 0 274 1,030 2012 0 0 0 0 0 1,037 44 0 107 0 1,189 2013 0 0 0 0 0 1,034 86 0 236 0 1,356 2014 0 0 0 0 0 1,035 69 0 11 0 1,115 2015 0 0 0 0 0 641 45 1,159 0 0 1,845 2016 0 0 0 0 0 162 35 1,648 0 0 1,845 2017* 0 0 0 0 0 147 32 1,609 0 0 1,787 Interstate Common Line Support Total Support * Estimates for 2017 extrapolated from claims through June 2017. Note : Details may not appear to add up to totals due to rounding. Source : Universal Service Administrative Company filings to the FCC with prior-period adjustments through June 2017. Table 3.3 High-Cost Support Fund Claim History - Price Cap (in Millions of Dollars) Year High Cost Loop Support Safety Net Additive Support High Cost Model Support Interstate Access Support Local Switching Support Frozen High Cost Support Intercarrier Compensation Support Connect America Cost Model Incremental Support 34 2009 $ 352 $ 11 $ 0 $ 158 $ 104 $ 90 $ 0 $ 0 $ 0 $ 0 $ 488 $ 0 $ 1,203 2010 336 15 1 154 92 89 0 0 0 0 498 0 1,185 2011 307 21 2 146 80 89 0 0 0 0 507 0 1,154 2012 7 0 0 0 0 1 889 62 0 0 8 0 967 2013 7 0 0 0 0 1 629 62 74 0 8 0 782 2014 7 0 0 0 0 1 525 63 4 0 8 0 608 2015 2 0 0 0 0 0 513 74 16 8 2 0 615 2016 0 0 0 0 0 0 508 78 85 4 0 0 676 2017* 0 0 0 0 0 0 500 0 47 3 0 74 624 (in Millions of Dollars) High-Cost Support Fund Claim History - Competitive Eligible Telecommunications Carriers Table 3.4 Notes : Details may not appear to add up to totals due to rounding. * Estimates for 2017 extrapolated from claims through June 2017. Mobility Fund Phase I Support Rural Broadband Experiments Interstate Common Line Support Alaska Plan Total Support Year High Cost Loop Support Safety Net Additive Support Safety Valve Support High Cost Model Interstate Access Support Local Switching Support Frozen High Cost Support Remote Alaska Support Source : Universal Service Administrative Company filings to the FCC with prior-period adjustments through June 2017. 35 State Alabama $ 35,327 $ 46,258 $ 81,585 $ 11,294 $ 92,880 12 % Alaska 55,424 19,694 75,118 106,817 181,936 59 American Samoa 1,574 0 1,574 1,619 3,193 51 Arizona 43,291 23,534 66,825 6,245 73,070 9 Arkansas 43,924 65,533 109,457 2,951 112,408 3 California 47,404 121,834 169,238 38 169,276 0 Colorado 21,926 34,538 56,465 6,449 62,914 10 Connecticut 0 454 454 0 454 0 Delaware 0 228 228 0 228 0 Florida 9,713 48,494 58,207 3,143 61,350 5 Georgia 57,909 55,757 113,666 242 113,908 0 Guam 6,101 0 6,101 5,405 11,506 47 Hawaii 0 4,424 4,424 3,873 8,297 47 Idaho 23,903 15,982 39,886 3,250 43,136 8 Illinois 48,133 51,089 99,222 11,277 110,499 10 Indiana 61,555 51,128 112,683 61 112,745 0 Iowa 90,301 55,527 145,827 31,972 177,799 18 Kansas 111,559 35,949 147,508 20,509 168,016 12 Kentucky 71,568 59,069 130,637 18,519 149,156 12 Louisiana 20,300 44,596 64,896 26,737 91,633 29 Maine 9,979 13,315 23,294 7,605 30,898 25 Maryland 1,314 2,303 3,617 0 3,617 0 Massachusetts 913 1,467 2,380 0 2,380 0 Michigan 20,335 60,513 80,847 4,486 85,334 5 Minnesota 81,882 90,611 172,494 2,783 175,277 2 Mississippi 17,350 74,349 91,699 88,526 180,225 49 Missouri 62,242 92,701 154,943 10,065 165,008 6 Montana 76,478 16,310 92,788 8,043 100,831 8 Nebraska 54,830 23,934 78,764 11,162 89,926 12 Nevada 11,489 5,008 16,497 12,430 28,927 43 New Hamsphire 8,783 4,377 13,159 131 13,291 1 New Jersey 633 450 1,083 0 1,083 0 New Mexico 54,658 20,283 74,941 7,203 82,144 9 New York 18,394 30,394 48,788 1,464 50,253 3 North Carolina 40,270 32,372 72,642 12,102 84,744 14 North Dakota 81,444 5,657 87,101 27,198 114,299 24 Northern Mariana Islands 0 2,627 2,627 776 3,403 23 Ohio 22,352 61,566 83,918 0 83,918 0 Oklahoma 88,596 10,844 99,440 31,641 131,081 24 Oregon 41,869 23,794 65,663 11,524 77,187 15 Pennsylvania 13,876 59,016 72,891 23 72,915 0 Puerto Rico 0 36,054 36,054 79,183 115,237 69 Rhode Island 0 30 30 0 30 0 South Carolina 89,189 18,113 107,303 1,579 108,881 1 South Dakota 83,409 9,117 92,526 2,015 94,541 2 Tennessee 54,568 33,633 88,201 2,126 90,327 2 Texas 156,711 116,876 273,587 20,872 294,459 7 Utah 25,630 4,442 30,072 99 30,171 0 Vemont 11,397 8,789 20,187 110 20,297 1 Virgin Islands 0 16,361 16,361 67 16,428 0 Virginia 28,466 51,035 79,501 8,637 88,138 10 Washington 21,106 38,113 59,219 21,783 81,002 27 West Virginia 7,175 38,068 45,243 14,861 60,105 25 Wisconsin 79,695 95,439 175,133 20,840 195,973 11 Wyoming 24,656 12,901 37,556 5,818 43,375 13 United States 2,039,601 1,844,950 3,884,551 675,557 4,560,108 15 CETC's Share Notes : Details may not appear to add up to totals due to rounding. Source : Universal Service Administrative Company filings to the FCC with prior-period adjustments through June 2017. Table 3.5 High-Cost Support Fund Claims - States: 2016 (in Thousands of Dollars) Rate-of-Return Carriers Price-Cap Carriers ILEC Total CETC Total Total Support 36 Rank Affiliate's Name1 1 AT&T Inc. $ 342 $ 615 $ 606 $ 1,563 31 % 2 CenturyLink, Inc. 348 573 559 1,481 0 3 Frontier Communications Corporation 216 355 398 970 0 4 Windstream Holdings, Inc. 163 232 217 612 0 5 Telephone and Data Systems, Inc. 178 179 199 555 56 6 Verizon Communications Inc.3 80 80 80 239 27 7 General Communication, Inc. 54 83 74 212 90 8 América Móvil 63 63 63 189 43 9 Telapex, Inc.4 52 52 52 155 89 10 FairPoint Communications, Inc. 44 53 51 147 0 11 Deutsche Telekom AG 21 21 36 78 100 12 Consolidated Communications, Inc. 38 37 31 106 0 13 ATN International, Inc. 18 18 31 67 27 14 Golden West Telecommunications Cooperative 25 25 30 80 0 15 Rural Telephone Service/Golden Belt 32 28 26 85 40 Table 3.6 Annual High-Cost Fund Support Claims - Affiliates: 2014 - 2016 (in Millions of Dollars) 2014 2015 2016 Total CETC's Share 2 1 This column refers to “affiliate name” rather than “holding company” so as to include all entities under common ownership or control, to the extent this information is readily available to the Commission. In most cases, the “affiliate name” is reported by the entity or entities in FCC Form 477. Affiliate groups appear on this list if they are in the top 10 for any of the presented years. 4 Telapex, Inc. owns C Spire Wireless. Source : Universal Service Administrative Company. 2 In the USF/ICC Transformation Order , the Commission eliminated the rule providing identical support to CETCs, determining the rule did not provide an "appropriate level of support for the efficient deployment of mobile services in areas that do not support a private business case for mobile voice and broadband." Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, 26 FCC Rcd 17666, 17851-59, para. 502 (2011), aff’d In re: FCC 11-161, 753 F.3d 1015 (10th Cir. 2014). The Commission, however, transitioned the elimination of that support over five years, beginning on July 1, 2012. See USF/ICC Transformation Order , 26 FCC Rcd at 17853, para. 513. This phase down of support for competitive ETCs was halted at 40 percent on June 30, 2014 under the terms adopted in the USF/ICC Transformation Order because the Mobility Fund Phase II is not yet operational. See id . at 17832, para. 519. 3 Verizon Wireless and Sprint Nextel, in separate transactions in 2008, each committed to phase down their CETC high-cost universal service support in 20 percent increments over five years, beginning in 2009. These commitments were not implemented until the Commission released an Order on August 31, 2010 providing guidance to the Universal Service Administrative Company regarding the methodology to achieve those commitments. See High-Cost Universal Service Support, Federal-State Joint Board on Universal Service, Request for Review of Decision of Universal Service Administrator by Corr Wireless Communications, LLC, WC Docket No. 05-337, CC Docket No. 96-45, Order and Notice of Proposed Rulemaking, 25 FCC Rcd 12854 (2010). To the extent that Verizon Wireless received support prior to the August 31, 2010 Order that should have been surrendered under its commitment, USAC reclaimed that support in 2010 and 2011. 37 Rank Affiliate's Name1 1 AT&T Inc. $ 0 $ 445 $ 445 $ 161 $ 606 26 % 2 CenturyLink, Inc. 0 559 559 0 559 0 3 Frontier Communications Corporation 0 398 398 0 398 0 4 Windstream Holdings, Inc. 0 217 217 0 217 0 5 Telephone and Data Systems, Inc. 82 0 82 117 199 59 6 Verizon Communications Inc. 0 58 58 22 80 27 7 General Communication, Inc. 7 0 7 67 74 91 8 América Móvil 0 36 36 27 63 43 9 Telapex, Inc. 6 0 6 46 52 89 10 FairPoint Communications, Inc. 0 51 51 0 51 0 11 Deutsche Telekom AG 0 0 0 36 36 100 12 Consolidated Communications, Inc. 0 31 31 0 31 0 13 ATN International, Inc. 0 16 16 14 31 47 14 Golden West Telecommunications Cooperative, Inc. 30 0 30 0 30 0 15 Rural Telephone Service/Golden Belt 15 0 15 11 26 43 16 Triangle Telephone Cooperative Assn., Inc. 25 0 25 0 26 1 17 Nemont Telephone Cooperative, Inc. 17 0 17 6 23 26 18 Alaska Communications Systems Holdings, Inc. 0 20 20 0 20 0 19 Smithville Holding Company, Inc. 19 0 19 0 19 0 20 Pioneer Telephone Cooperative (OK) 10 0 10 9 19 46 21 Hargray Communications Group, Inc. 19 0 19 0 19 0 22 Copper Valley Telephone Cooperative 10 0 10 9 19 49 23 Farmers Telephone Cooperative, Inc. (SC) 17 0 17 2 19 8 24 Comporium, Inc. 19 0 19 0 19 0 25 Lumos Networks Corp. 17 0 17 1 17 4 2 See Table 3.6 n.2. Notes : Details may not add up due to rounding. Source : Universal Service Administrative Company filings to the FCC with prior-period adjustments through June 2017. 1 This column refers to “affiliate name” rather than “holding company” so as to include all entities under common ownership or control, to the extent this information is readily available to the Commission. In most cases, the “affiliate name” is reported by the entity or entities in FCC Form 477. CETC's Share 2 Table 3.7 High-Cost Support Fund Claims - Affiliates: 2016 (in Millions of Dollars) Rate-of- Return Carriers Price-Cap Carriers ILEC Support CETC Support Total Support 38 Section 4 – E-rate (Schools and Libraries) Overview – Schools and Libraries Program The Schools and Libraries universal service support program, commonly known as the E-rate program, helps schools and libraries obtain affordable broadband Internet access, internal network connections, and telecommunications services. Eligible schools, school districts and libraries may apply individually or as part of a consortium. Funding may be requested under two categories of eligible services: category one services to a school or library (e.g., data transmission services and Internet access), and category two services that deliver Internet access within schools and libraries (e.g., internal connections, basic maintenance of internal connections, and managed internal broadband services). Discounts for support depend on the level of poverty, as calculated by eligibility for a free or reduced price lunch or other a federally-approved alternative mechanism, and whether the school or library is located in an urban or rural area. The discounts range from 20 percent to 90 percent of the costs of eligible services. E-rate program funding is based on demand up to an annual Commission-established cap, which is $4.16 billion for 2018 and is adjusted annually for inflation. The E-rate program is administered by the Universal Service Administrative Company (USAC) under the direction of the FCC. Specifically, USAC is responsible for processing the applications for support, confirming eligibility, and reimbursing service providers and eligible schools and libraries for the discounted services. USAC also ensures that the applicants and service providers comply with the E-rate rules and procedures established by the FCC. Additional information about the Schools and Library program can be found on the Commission’s website at http://www.fcc.gov/encyclopedia/e-rate-schools-libraries-usf-program and on 86$C’s ZeEsLWe aW http://www.usac.org/sl/. 39 Schools and Libraries Funding Commitments and Disbursements by Applicant Type and Year (in Thousands of Dollars) Total School Statewide Other Total School Statewide Other Year Commitments Libraries 1 Schools Districts Contract 2 Consortia Disbursements Libraries 1 Schools Districts Contract 2 Consortia 1998 $1,699,124 $65,988 $110,701 $1,288,420 $0 $234,015 $1,399,098 $49,883 $83,343 $1,069,783 $0 $196,090 1999 2,147,998 66,172 180,741 1,598,383 0 302,701 1,650,004 47,457 140,130 1,265,896 0 196,521 2000 2,078,759 65,879 110,839 1,692,230 0 209,810 1,647,014 43,566 88,514 1,384,108 0 130,821 2001 2,176,364 57,824 164,576 1,739,474 0 214,490 1,695,758 41,940 117,486 1,400,520 0 135,668 2002 2,114,538 62,941 165,760 1,635,902 0 249,935 1,598,198 42,697 106,197 1,287,085 0 162,599 2003 2,522,102 63,302 199,599 1,998,150 0 261,051 1,940,112 44,325 136,108 1,587,207 0 172,475 2004 2,033,456 54,296 158,672 1,566,377 0 254,111 1,536,420 39,723 107,113 1,210,105 0 179,532 2005 2,006,549 54,498 152,505 1,584,615 0 214,932 1,625,555 48,598 111,854 1,287,977 0 177,840 2006 1,947,903 59,711 129,477 1,498,051 0 260,664 1,568,995 46,138 96,193 1,223,096 0 203,587 2007 2,355,442 60,628 174,811 1,876,010 0 243,993 1,955,781 47,964 135,925 1,563,676 0 208,268 2008 2,374,198 75,771 150,719 1,888,317 0 259,391 1,915,581 58,108 113,552 1,527,084 0 221,436 2009 2,812,847 84,709 195,225 2,262,903 0 270,010 2,305,057 69,208 154,012 1,862,136 0 226,490 2010 3,005,816 91,253 211,174 2,414,155 0 289,235 2,419,868 71,887 156,930 1,964,771 0 240,118 2011 2,677,002 95,122 218,156 2,043,507 0 320,217 2,119,954 73,130 162,136 1,647,735 0 248,974 2012 2,961,499 96,432 288,412 2,270,028 12,130 294,498 2,244,959 77,685 205,501 1,765,604 8,835 237,828 2013 2,199,568 91,576 134,824 1,667,833 20,209 285,126 1,716,412 75,164 97,581 1,332,770 10,809 227,574 2014 2,311,203 93,715 157,812 1,740,525 38,370 280,780 1,788,693 78,644 114,215 1,388,257 26,466 222,916 2015 3,266,239 109,730 184,676 2,623,176 24,848 323,809 1,350,063 90,040 131,573 2,159,200 23,767 252,429 2016 2,770,153 102,822 125,276 2,221,740 0 320,315 1,037,406 41,167 55,556 870,094 0 70,589 2 Starting January 2011, applicants could designate their consortium as a statewide entity if the application encompassed all public schools, private schools and/or all public libraries in the state. See http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-10-2218A1.pdf. In 2016, applicants filing as a consortium, school district, and library system could designate their sub-type as a statewide entity. These applicant's commitments and disbursments are included within their primary applicant type column and are not included in the Statewide Contract column. Table 4.1 Funding Commitments Funding Disbursements Note : Activity through June 30, 2017. Funding Year 2017 commitment and disbursement information have not been displayed because only a small fraction of commitments (and no disbursements) hav been made for that funding year. A substantial amount of commitments and disbursements for funding year 2017 will be made. Also, because of the appeals process, funding commitments and disbursements can be made after the end of the program year. Disbursements may also continue beyond the end of the program year in the event of delayed internal connections installation. Other adjustments and corrections may also be made. 1 Starting in fund year 2016, Libraries includes both Library and Library System applicants. Source : Universal Service Administrative Company 40 Table 4.2 Schools and Libraries Funding Commitments and Disbursements from Program Inception through June 30, 2017 by State and Applicant Type Library/Library Consortium Schools School Districts Statewide Contracts Other Consortium Totals Funds Funds Funds Funds Funds Funds Funds Funds Funds Funds Funds Funds State/Territory Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed Alabama $14,494 $11,631 $20,711 $15,328 $640,551 $540,818 $86 $1 $109,055 $81,590 $784,898 $649,369 Alaska 10,777 8,474 4,970 3,912 597,861 498,208 0 0 21,077 16,395 634,685 526,988 American Samoa 0 0 0 0 1,487 166 0 0 38,344 31,121 39,832 31,287 Arizona 23,281 24,227 154,216 105,991 962,158 714,821 0 0 28,660 17,860 1,168,315 862,899 Arkansas 6,684 5,619 9,012 7,455 279,901 213,395 25,836 16,027 152,994 97,823 474,428 340,319 California 116,390 78,111 295,239 209,398 6,029,094 4,485,583 106 51 268,777 177,037 6,709,606 4,950,180 Colorado 15,130 10,874 22,460 16,372 383,982 293,757 0 0 24,527 17,449 446,100 338,451 Connecticut 6,747 4,016 50,389 36,126 289,991 235,604 0 0 114,392 96,024 461,519 371,770 Delaware 1,386 1,185 3,602 2,530 19,313 15,571 2,246 2,246 20,016 16,455 46,563 37,986 District of Columbia 9,549 5,713 28,272 18,236 175,465 115,914 0 0 17,947 8,599 231,233 148,461 Florida 61,709 47,564 166,366 124,295 1,269,576 1,015,615 0 0 105,633 83,371 1,603,284 1,270,844 Georgia 91,296 77,886 39,201 31,639 1,218,289 976,025 4,411 4,328 188,114 161,877 1,541,311 1,251,754 Guam 153 41 263 138 27,846 20,411 0 0 0 0 28,262 20,591 Hawaii 2,760 1,594 59,980 30,118 42,937 26,095 3,128 2,503 1,223 731 110,028 61,041 Idaho 4,911 3,946 8,014 5,216 110,552 85,106 0 0 23,479 13,850 146,955 108,118 Illinois 42,523 32,146 147,630 109,878 1,727,087 1,306,760 0 0 75,350 54,561 1,992,590 1,503,346 Indiana 60,636 47,554 39,639 28,964 530,647 414,697 0 0 95,533 43,583 726,455 534,798 Iowa 4,737 3,215 15,357 11,154 168,533 122,578 0 0 77,563 65,941 266,190 202,887 Kansas 12,385 10,036 10,583 7,712 281,294 226,691 0 0 24,114 19,495 328,376 263,935 Kentucky 18,555 14,142 7,219 4,869 585,256 434,711 0 0 129,099 100,026 740,128 553,748 Louisiana 67,746 56,600 57,091 42,810 796,335 665,767 0 0 34,315 25,625 955,487 790,802 Maine 1,614 1,207 16,009 11,797 65,232 46,279 0 0 61,912 53,665 144,767 112,949 Maryland 19,033 13,987 29,636 20,066 349,593 273,007 0 0 32,850 24,668 431,111 331,728 Massachusetts 43,338 30,533 64,881 48,670 484,052 383,001 11 0 52,640 27,106 644,923 489,310 Michigan 37,391 29,388 61,531 41,705 861,758 653,080 0 0 153,473 115,602 1,114,152 839,775 Minnesota 29,726 23,445 44,441 30,255 321,716 244,167 0 0 134,045 115,510 529,928 413,376 Mississippi 35,878 25,632 20,459 14,811 491,498 380,167 144 105 106,116 77,109 654,095 497,824 Missouri 22,728 19,118 47,478 35,525 535,710 424,414 0 0 213,009 142,109 818,925 621,166 Montana 1,668 1,185 4,953 3,727 82,479 67,707 0 0 609 448 89,709 73,067 Nebraska 4,495 3,557 8,362 6,629 130,561 114,058 0 0 33,261 30,068 176,679 154,311 Nevada 4,391 2,994 7,272 5,279 126,925 88,929 0 0 0 0 138,587 97,202 New Hampshire 394 219 8,702 5,841 41,082 30,575 0 0 1,721 1,310 51,899 37,944 New Jersey 30,665 21,776 143,989 101,355 969,264 714,223 0 0 17,947 12,002 1,161,865 849,355 New Mexico 6,352 3,902 81,542 57,295 530,301 404,580 0 0 124,633 51,839 742,827 517,615 New York 206,350 145,337 604,681 441,908 2,395,178 2,048,586 0 0 590,093 437,448 3,796,302 3,073,278 North Carolina 32,076 26,589 45,855 35,778 1,024,480 863,908 23,594 22,755 67,192 43,263 1,193,197 992,295 North Dakota 205 155 10,019 7,512 27,643 21,111 0 0 42,322 35,439 80,189 64,217 Northern Mariana Isl. 232 167 172 146 19,314 15,709 0 0 0 0 19,718 16,021 Ohio 56,657 46,146 141,951 104,373 1,170,170 925,476 0 0 90,167 73,198 1,458,944 1,149,192 Oklahoma 40,072 32,627 48,851 34,912 899,054 713,136 0 0 13,925 5,140 1,001,902 785,814 Oregon 6,398 4,202 12,233 8,786 256,481 194,479 0 0 42,884 25,165 317,996 232,632 Pennsylvania 47,103 38,957 174,223 118,838 1,062,428 886,000 0 0 157,431 132,441 1,441,186 1,176,236 Puerto Rico 73,870 40,909 94,045 66,590 252,638 163,660 0 0 115,877 58,416 536,430 329,574 Rhode Island 2,147 1,793 8,808 6,653 77,174 59,278 19 19 44,786 40,171 132,934 107,914 South Carolina 7,519 5,227 26,628 17,918 531,319 408,117 0 0 290,561 243,502 856,028 674,764 South Dakota 555 197 21,977 16,349 45,673 33,031 2,745 2,553 38,740 25,419 109,690 77,550 Tennessee 20,142 14,826 18,653 15,212 831,201 618,326 0 0 230,839 189,401 1,100,835 837,765 Texas 59,569 39,960 189,214 143,830 4,133,819 3,229,524 0 0 200,583 132,752 4,583,184 3,546,067 Utah 2,372 1,125 4,959 3,058 100,259 80,815 0 0 255,457 145,822 363,047 230,819 Vermont 1,090 665 14,391 9,286 32,743 24,124 0 0 2,158 1,562 50,382 35,637 Virgin Islands 401 184 14,121 10,821 10,665 9,412 3,429 2,922 60,023 54,682 88,639 78,020 Virginia 33,191 26,632 26,981 21,563 586,594 481,769 0 0 14,416 12,603 661,181 542,567 Washington 31,588 24,522 19,989 15,449 439,142 339,750 78 78 88,680 68,158 579,477 447,958 West Virginia 4,381 3,393 3,848 2,234 192,714 140,721 19,735 9,892 58,086 44,845 278,763 201,086 Wisconsin 16,262 11,741 48,108 34,120 364,942 287,390 0 0 169,539 137,672 598,851 470,923 Wyoming 666 458 4,784 3,488 27,840 20,301 9,990 6,395 32,895 23,809 76,175 54,452 Totals $1,452,368 $1,087,326 $3,213,956 $2,313,918 $35,609,796 $27,797,102 $95,557 $69,877 $5,089,084 $3,711,755 $45,460,761 $34,979,977 Source : Universal Service Administrative Company (in Thousands of Dollars) Note : Activity through June 30, 2017. Unlike in Table 4.1, all commitments and disbursements have been included, including those in funding year 2017. Because of the appeals process, funding commitments and disbursements can be made after the end of the program year. Also, disbursements may continue beyond the end of the program year in the event of delayed internal connections installation. Other adjustments and corrections may also be made. 41 Section 5 – Rural Health Care Overview – Rural Health Care Program The Rural Health Care Program provides funding to eligible health care providers for broadband and telecommunications services necessary for the provision of health care. The goal of the program is to improve the quality of health care available to patients in rural communities by ensuring that eligible health care providers have access to broadband and telecommunications services. Funding for the Rural Health Care Program is capped at $400 million annually and is administered by USAC under the direction of the FCC. During the time period reported upon in this report, the Rural Health Care Program provided funding through three programs: the Healthcare Connect Fund, the Rural Health Care Pilot Program, and the Telecommunications Program. In 2012, the Commission created the new Healthcare Connect Fund to reform, expand, and modernize the Rural Health Care Program. The Healthcare Connect Fund provides support for high-capacity broadband connectivity to eligible health care providers, and encourages the formation of state and regional broadband health care provider networks. The Commission established the Rural Health Care Pilot Program in September 2006 to provide funding for state or regional broadband networks designed to bring the benefits of telehealth and telemedicine services to areas of the country where the need for those benefits was most acute. Many of the lessons learned during the Pilot Program were used in establishing the Healthcare Connect Fund. While new participants are no longer accepted into the Pilot Program, there is some remaining funding already committed that existing participants are using. Additional information about the Rural Health Care Program can be found on the Commission’s website at http://www.fcc.gov/encyclopedia/rural-health-careand on USAC’s website at http://www.usac.org/rhc/. 42 Funds Committed Funds Disbursed Funds Committed Funds Disbursed Funds Committed Funds Disbursed Funds Committed Funds Disbursed 1998 $ 3,388 $ 3,369 $ 0 $ 0 $ 0 $ 0 $ 3,388 $ 3,369 1999 4,653 4,291 0 0 0 0 4,653 4,291 2000 10,711 10,196 0 0 0 0 10,711 10,196 2001 19,582 18,477 0 0 0 0 19,582 18,477 2002 23,344 21,366 0 0 0 0 23,344 21,366 2003 27,908 25,726 0 0 0 0 27,908 25,726 2004 32,128 30,962 0 0 0 0 32,128 30,962 2005 40,742 39,999 0 0 0 0 40,742 39,999 2006 45,989 45,092 0 0 0 0 45,989 45,092 2007 56,210 54,818 467 467 0 0 56,677 55,285 2008 67,765 66,661 14,734 14,300 0 0 82,499 80,961 2009 72,828 71,439 350,702 280,126 0 0 423,531 351,564 2010 92,053 87,326 0 0 0 0 92,053 87,326 2011 104,360 101,291 0 0 0 0 104,360 101,291 2012 117,236 116,940 0 0 0 0 117,236 116,940 2013 133,412 128,591 0 0 49,908 45,664 183,320 174,255 2014 137,167 135,221 0 0 101,169 81,459 238,336 216,680 2015 184,547 167,906 0 0 117,494 77,390 302,042 245,296 2016 197,133 101,213 0 0 152,032 21,621 349,165 122,834 Table 5.1 Note: Activity through June 30, 2017. Funding Year 2017 commitment and disbursement information has not been displayed because by June 30, the data cutoff date for this report, no commitments or disbursements for funding year 2017 were made during that time. However, we anticipate that a substantial amount of commitments and disbursements for funding year 2017 will be made. Also, because of the appeals process, funding commitments and disbursements can be made after the end of the program year. Disbursements may also continue beyond the end of the program year in the event of delayed internal connections installation. Other adjustments and corrections may also be made. Source : USAC data. Telecommunications Pilot Healthcare Connect Totals Funding year Rural Health Care Funding Committments and Disbursements by Program and Year (in Thousands of Dollars) 43 Funds Committed Funds Disbursed Funds Committed Funds Disbursed Funds Committed Funds Disbursed Funds Committed Funds Disbursed Alabama $ 9,881 $ 8,487 $ 2,749 $ 2,746 $ 3,854 $ 2,251 $ 16,484 $ 13,484 Alaska 728,725 649,695 1,882 209 879 518 731,486 650,422 American Samoa 1,512 1,422 0 0 0 0 1,512 1,422 Arizona 27,563 24,944 7,506 5,625 4,921 2,884 39,990 33,453 Arkansas 18,070 16,604 4,218 4,132 27,290 13,964 49,577 34,700 California 47,518 45,085 22,903 11,136 44,336 25,408 114,758 81,629 Colorado 3,829 3,517 10,870 10,702 26,890 13,658 41,589 27,877 Connecticut 12 12 0 0 960 424 972 436 Delaware 1 5 0 0 0 0 1 5 District of Columbia 18 8 0 0 0 0 18 8 Florida 5,722 5,202 63 58 8,590 5,338 14,376 10,598 Georgia 37,219 34,269 2,233 2,166 11,580 7,497 51,032 43,931 Guam 767 762 89 83 140 87 996 932 Hawaii 2,435 2,378 4,653 2,100 123 40 7,211 4,517 Idaho 6,708 6,079 0 0 2,852 1,665 9,560 7,744 Illinois 18,747 17,383 21,071 21,070 10,715 5,704 50,532 44,158 Indiana 9,573 7,321 15,458 12,800 23,194 8,307 48,225 28,428 Iowa 6,985 6,470 17,368 17,291 11,155 5,583 35,509 29,344 Kansas 9,528 8,937 0 0 7,967 4,404 17,495 13,341 Kentucky 14,915 13,302 2,945 913 11,608 6,135 29,467 20,349 Louisiana 7,481 6,595 15,570 375 3,168 2,089 26,220 9,059 Maine 592 493 12,957 12,639 3,553 1,084 17,103 14,217 Maryland 195 134 0 0 792 512 987 646 Massachusetts 941 949 0 0 1,729 1,355 2,670 2,305 Michigan 20,709 19,095 19,449 19,230 10,168 5,173 50,326 43,498 Minnesota 33,640 31,647 5,714 5,297 6,442 3,606 45,796 40,549 Mississippi 27,486 24,445 0 0 5,962 3,065 33,448 27,510 Missouri 14,933 13,069 2,538 2,193 8,458 5,720 25,929 20,982 Montana 10,979 10,694 15,413 14,756 2,623 1,385 29,015 26,835 Nebraska 21,497 20,127 18,010 18,010 7,852 4,628 47,359 42,765 Nevada 2,755 2,674 0 0 609 438 3,364 3,111 New Hampshire 234 224 6,400 6,335 2,724 875 9,358 7,434 New Jersey 0 0 0 0 0 0 0 0 New Mexico 10,759 9,707 11,770 10,567 4,675 3,225 27,204 23,500 New York 2,108 1,730 15,492 14,681 12,273 6,949 29,874 23,360 North Carolina 7,750 6,866 12,169 12,115 18,508 9,955 38,427 28,936 North Dakota 14,901 14,114 912 835 3,363 1,821 19,176 16,771 Northern Mariana Islands 43 21 46 44 6 0 94 65 Ohio 7,611 6,550 27,209 26,478 7,880 4,388 42,701 37,417 Oklahoma 30,890 26,564 0 0 14,931 9,954 45,822 36,518 Oregon 3,556 3,371 18,130 17,129 13,813 9,647 35,499 30,146 Pennsylvania 1,509 1,392 6,793 6,035 9,690 7,109 17,992 14,537 Puerto Rico 0 0 0 0 45 43 45 43 Rhode Island 0 4 0 0 0 0 0 4 South Carolina 1,024 935 8,763 8,282 12,431 5,911 22,218 15,128 South Dakota 10,710 10,417 4,585 4,482 4,846 3,171 20,142 18,070 Tennessee 13,091 11,847 6,834 0 3,956 2,037 23,881 13,884 Texas 60,212 50,749 15,250 0 28,664 7,131 104,126 57,881 Utah 9,041 8,315 8,815 8,176 2,797 934 20,653 17,425 Vermont 811 771 6,078 6,047 1,540 450 8,430 7,268 Virgin Islands 852 846 0 0 0 0 852 846 Virginia 23,169 20,116 2,698 1,198 5,999 4,508 31,867 25,821 Washington 2,790 2,450 118 117 3,440 2,233 6,349 4,800 West Virginia 4,104 3,416 7,070 5,751 2,833 1,546 14,007 10,714 Wisconsin 71,872 65,601 2,312 2,303 16,849 10,630 91,033 78,533 Wyoming 3,180 3,075 797 784 931 696 4,908 4,556 Totals $ 1,371,156 $ 1,230,884 $ 365,903 $ 294,893 $ 420,603 $ 226,134 $ 2,157,663 $ 1,751,911 Source : USAC data. Note : Disbursements through June 30, 2017. Unlike in Table 5.1, all commitments and disbursements (if any) have been included, including those in funding year 2017. Because of the appeals process, funding commitments and disbursements may be made after the program year ended. State Table 5.2 Healthcare Connect Totals Telecommunications and Pilot Rural Health Care Funding Committments and Disbursements from Program Inception through June 30, 2017 by State and Program (in Thousands of Dollars) 44 Section 6 – Subscribership & Penetration Overview – Subscribership & Penetration: Voice & Internet Continuing analysis of telephone penetration statistics allows one to examine the aggregate effects of Commission actions and industry evolution on households’ decisions to maintain, acquire or drop telephone service. In addition to telephone penetration statistics, recent surveys by the Census Bureau now also provide information about the penetration of high-speed Internet services. Starting in 2016, this section also includes telephone and internet expense statistics for lower income households. Starting in 2017, this section also includes fixed broadband deployment and subscription information for ILECs. This chapter presents comprehensive data on telephone penetration and expense statistics and information collected by the Bureau of the Census, the Bureau of Labor Statistics, and the FCC primarily through the American Community Survey (ACS), the Current Population Survey (CPS), the Consumer Expenditures Survey (CE), and the FCC Form 477. The chapter also provides national and state-level estimates of high-speed Internet adoption based on the ACS. Along with telephone and high-speed Internet penetration statistics for the nation and each of the states, data are provided on penetration for various demographic characteristics. For telephone service, particular attention is given to penetration rates and expenses for lower income households given the Commission’s various low-income programs such as Lifeline. To provide regular, high-quality data on telephone penetration, the Commission requested that the Census Bureau include questions on telephone availability as part of its CPS, which monitors demographic trends between decennial censuses. The CPS is a staggered panel survey in which the people residing at particular addresses are included in the survey for four consecutive months in one year and the same four months in the following year. Use of the CPS has several advantages: it is conducted every month by an independent and expert agency, the sample is large, and the questions are consistent. Thus, changes in the results can be compared over time with a reasonable degree of confidence. In addition to the CPS, the ACS also provides data for calculating a measure of telephone penetration. The ACS has replaced the decennial census long form and thus also provides a wealth of data and large sample sizes, though on a less frequent basis than the CPS. Whereas the CPS reports household penetration, the ACS follows the design of past decennial censuses and reports telephone penetration for occupied housing units. In this chapter, penetration measures from the CPS, the ACS, and decennial censuses (prior to the ACS) are reported as complements to each other.1 While the ACS provides telephone penetration data, the ACS now also provides data for calculating high-speed Internet penetration rates. Specifically, the ACS for the first time in 2013 asked whether households have access to the Internet. The ACS asks, “At this house, apartment, or mobile home – do you or any member of this household access the Internet?” Statistics based on 2016 data from the ACS on high-speed Internet penetration has been incorporated into this report. Since the ACS is conducted throughout the year, a 1-year average is calculated using the data. 1 Penetration statistics derived from the CPS cannot be directly compared with the penetration estimates based on the responses to the long forms of the 1990 and 2000 decennial censuses or the ACS. This is due to differences in sampling techniques and survey methodologies as well as differences in the context in which the questions are asked. For example, the 2013 ACS reported 97.7% of all occupied housing units in the United States had telephone service available, whereas the March 2013 CPS data showed a household penetration rate of 96.0%. This difference is statistically significant and may indicate that the CPS value is on the low side and the ACS value is on the high side, with the most probable value lying somewhere in between. 45 The specific questions regarding telephone availability asked in the CPS are: “Does this house, apartment, or mobile home have telephone service from which you can both make and receive calls? Please include cell phones, regular phones, and any other type of telephone.” And, if the answer to the first question is “no,” this is followed up with: “Is there a telephone elsewhere on which people in this household can be called?” If the answer to the first question is “yes,” the household is counted as having a telephone “in unit.” If the answer to either the first or second question is “yes,” the household is counted as having a telephone “available.” In contrast to the CPS, the ACS simply asks: “Does this house, apartment, or mobile home have telephone service from which you can both make and receive calls? Include cell phones.” Thus, the ACS question is most similar to the CPS’s “in unit” rather than “available” penetration rate. Although the CPS is conducted every month, not all questions are asked every month. The telephone questions are asked once every four months. The changes in the CPS estimates reflect changes over the preceding four months. Aggregated summaries of the responses are reported to the Commission, based on the surveys conducted through March, July, and November of each year. The ACS provides annual telephone penetration statistics based on data collected monthly throughout the year. The CPS data are based on a nationwide sample of about 50 to 60 thousand households in the 50 states and the District of Columbia. The CPS does not cover outlying areas that are not states, such as Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Northern Mariana Islands.2 The ACS form is sent to approximately 250 thousand addresses per month, for a total of about 3 million addresses per year. The ACS covers the states, the District of Columbia, and Puerto Rico. 2 Annual data for Puerto Rico have been available from the ACS starting with 2005. The percentage of occupied housing units with voice service for the last five years of available data are reported in Table 6.6. 46 Month Year Households (millions) Households with a Telephone in Unit (millions) Percentage with Telephone in Unit Households without a Telephone in Unit (millions) Percentage without Telephone in Unit November 1983 85.8 78.4 91.4 7.4 8.6 November 1984 87.4 79.9 91.4 7.5 8.6 November 1985 88.8 81.6 91.9 7.2 8.1 November 1986 89.9 83.1 92.4 6.8 7.6 November 1987 91.3 84.3 92.3 7.0 7.7 November 1988 92.6 85.7 92.5 6.9 7.5 November 1989 93.9 87.3 93.0 6.6 7.0 November 1990 94.7 88.4 93.3 6.3 6.7 November 1991 95.7 89.4 93.4 6.3 6.6 November 1992 97.0 91.0 93.8 6.0 6.2 November 1993 98.8 93.0 94.2 5.8 5.8 November 1994 99.8 93.7 93.8 6.2 6.2 November 1995 100.4 94.2 93.9 6.2 6.1 November 1996 101.3 95.1 93.9 6.2 6.1 November 1997 102.8 96.5 93.8 6.3 6.2 November 1998 104.1 98.0 94.2 6.1 5.8 November 1999 105.4 99.1 94.1 6.3 5.9 November 2000 106.5 100.2 94.1 6.3 5.9 November 2001 107.7 102.2 94.9 5.5 5.1 November 2002 109.0 104.0 95.3 5.1 4.7 November 2003 113.1 107.1 94.7 6.0 5.3 November 2004 113.8 106.4 93.5 7.4 6.5 November 2005 115.2 107.0 92.9 8.2 7.1 November 2006 116.4 108.8 93.4 7.6 6.6 November 2007 118.2 112.2 94.9 6.0 5.1 November 2008 118.6 112.7 95.0 5.9 5.0 March 2009 118.4 113.2 95.6 5.2 4.4 July 2009 118.4 113.3 95.7 5.1 4.3 November 2009 119.2 114.0 95.7 5.1 4.3 March 2010 118.3 113.6 96.0 4.7 4.0 July 2010 118.3 113.5 96.0 4.8 4.0 November 2010 119.4 114.0 95.5 5.4 4.5 March 2011 119.8 114.9 95.9 4.9 4.1 July 2011 119.3 114.1 95.6 5.2 4.4 November 2011 119.7 114.4 95.6 5.3 4.4 March 2012 121.9 117.0 96.0 4.9 4.0 July 2012 121.7 117.0 96.1 4.7 3.9 November 2012 122.0 116.9 95.8 5.1 4.2 March 2013 123.3 118.3 96.0 5.0 4.0 July 2013 123.1 118.3 96.1 4.8 3.9 November 2013 123.7 118.4 95.7 5.3 4.3 March 2014 124.2 119.5 96.3 4.7 3.7 July 2014 123.9 119.0 96.0 4.9 4.0 November 2014 124.8 119.9 96.1 4.9 3.9 March 2015 125.5 121.1 96.5 4.4 3.5 July 2015 125.8 121.7 96.3 4.1 3.5 November 2015 126.1 122.2 96.3 3.9 3.1 March 2016 127.2 122.7 96.5 4.5 3.5 July 2016 127.0 122.4 96.4 4.6 3.6 November 2016 127.3 122.6 96.3 4.7 3.7 March 2017 127.4 122.6 96.2 4.8 3.8 July 2017 127.5 122.9 96.4 4.6 3.6 Table 6.1 Household Voice Subscribership in the United States, 1983 - 2017 Source : United States Census Bureau, Current Population Survey Corrections: The reported March and July 2016 households with a telephone in unit, percentage with telephone in unit, household without a telephone in unit, and percentage without telephone in unit are corrections from the 2016 Monitoring Report. 47 $9,999 or Less $10,000 - $19,000 $20,000 - $29,999 $30,000 - $39,999 $40,000 or Greater All Households 1997 86.0 93.0 96.5 97.6 98.2 94.0 1998 85.7 93.7 96.1 97.4 98.2 94.1 1999 85.5 92.9 96.0 97.2 98.2 94.0 2000 87.5 93.3 96.1 97.3 98.0 94.5 2001 87.6 93.4 95.9 97.1 97.8 94.4 2002 89.1 94.3 96.9 98.1 98.8 95.5 2003 89.2 94.6 97.0 98.1 98.8 95.5 2004 88.0 93.2 95.3 96.7 97.7 94.2 2005 86.4 91.2 94.1 95.2 96.0 92.5 2006 86.3 91.8 94.4 95.4 96.5 92.9 2007 88.4 94.1 95.9 96.8 97.9 94.6 2008 89.7 94.3 96.2 97.4 98.3 95.2 2009 90.4 95.2 96.6 97.3 98.3 95.6 2010 91.9 95.8 96.9 97.7 98.6 96.1 2011 91.5 95.9 96.8 97.8 98.3 95.9 2012 92.0 95.3 96.9 97.8 98.3 95.9 2013 92.6 95.6 97.0 97.2 98.3 96.0 2014 93.1 95.9 96.7 97.9 98.2 96.3 2015 93.2 96.0 97.1 97.7 98.1 96.4 2016 93.2 96.4 97.0 97.6 98.0 96.4 2017 93.1 96.0 96.9 97.5 97.8 96.3 Table 6.2 Household Voice Penetration by Income, 1997-2017 Source : U.S. Census Bureau, Current Population Survey (March CPS Supplement). (in 1984 Dollars) Note : Income groups classified by 1984 dollars. For a conversion to current-year dollars, consult Table 6.3. Total penetration rates may differ slightly from those in Table 6.1 due to sampling differences between the March CPS and the March CPS Supplement. 48 1984 $10,000 $20,000 $30,000 $40,000 1997 15,595 31,190 46,785 62,380 1998 15,809 31,618 47,427 63,236 1999 16,082 32,164 48,246 64,328 2000 16,686 33,372 50,058 66,744 2001 17,173 34,346 51,519 68,692 2002 17,427 34,854 52,281 69,708 2003 17,953 35,906 53,859 71,812 2004 18,265 36,530 54,795 73,060 2005 18,840 37,680 56,520 75,360 2006 19,474 38,948 58,422 77,896 2007 20,015 40,030 60,045 80,060 2008 20,812 41,624 62,436 83,248 2009 20,732 41,464 62,196 82,928 2010 21,212 42,423 63,635 84,846 2011 21,780 43,561 65,341 87,122 2012 22,358 44,716 67,074 89,432 2013 22,687 45,375 68,062 90,750 2014 23,031 46,061 69,092 92,122 2015 23,014 46,027 69,041 92,054 2016 23,210 46,419 69,629 92,839 2017 23,475 46,949 70,424 93,898 Table 6.3 Nominal Dollar Equivalents by Year Note : All numbers based on CPI non-adjusted series, March 1984 base of 102.6 49 1920 35.0 1930 40.9 1940 36.9 1950 61.8 1960 78.3 1970 90.5 1980 92.9 1990 94.8 93.3 2000 97.6 94.4 2001 96.9 94.9 2002 96.6 95.3 2003 96.2 95.1 2004 95.7 93.8 2005 94.8 93.1 2006 94.1 93.6 2007 94.6 94.8 20083 98.2 95.2 2009 97.7 95.7 2010 97.5 95.8 2011 97.4 95.7 2012 97.4 95.9 2013 97.7 95.9 2014 97.6 96.1 2015 97.4 96.3 2016 97.0 96.4 2017 NA4 96.4 3 Errata #53: released April 12, 2010, regarding 2008 ACS 1-year and 2006-2008 ACS 3-year estimates for household kitchen facilities and telephone service. Two errors were found affecting the 2008 ACS 1-year data and the 2006-2008 ACS 3-year data for telephone service. The errors involve the last two items in Question 8 on the housing section of the 2008 ACS questionnaire which asks whether the housing unit has telephone service (including cell phones). The error involved the incorrect capture of the responses to those items. It affected the estimates of householders who reported no telephone service, resulting in an underestimate of "no" responses and an increased imputation rate for both items. At the national level, the percent of households reporting no telephone service in 2008 was 1.8 percent; however, after correcting the data capture error, the percent reporting no telephone service is approximately 2.8 percent. 4 ACS statistics for 2017 are not available. Table 6.4 Historical Voice Penetration Estimates Percentage of Occupied Housing Units with Telephone Service1 Percentage of Households with Telephone Service2 1 Housing Unit penetration statistics are from the U.S. Census Bureau's Historical Statistics of the United States, Colonial Times to 1970 , Part 2, page 783 (1920 - 1970); the decennial censuses (1980 - 2000); and the Census Bureau's American Community Survey (ACS) 1-year estimates (2001 - 2017). 2 Household penetration data (1990 - 2016) are annual averages from the U.S. Census based on the Current Population Survey. For 2017, July CPS data are used. 50 Characteristic 2013 2014 2015 2016 2017 Persons in Household 1 94.0 94.2 94.6 94.6 94.6 2 - 3 96.7 96.8 96.9 97.0 97.0 4 - 5 96.8 97.1 97.4 97.3 97.4 6 + 95.8 96.4 96.9 96.2 96.7 Age of Householder 15 - 24 Yrs Old 93.8 94.6 95.5 95.0 95.8 25 - 54 Yrs Old 95.6 95.9 96.2 96.3 96.2 55 - 59 Yrs Old 96.6 96.5 96.9 96.8 96.2 60 - 64 Yrs Old 96.4 96.4 96.7 96.7 96.9 65 - 69 Yrs Old 97.1 97.1 97.1 96.9 97.4 70 - 99 Yrs Old 96.6 96.6 96.2 96.4 96.4 Race of Householder White 96.4 96.6 96.8 96.7 96.7 Black 93.0 93.7 94.1 94.7 94.4 Hispanic Origin 93.1 93.5 94.7 94.7 94.6 Total United States 95.9 96.1 96.3 96.4 96.4 Source : U.S. Census Bureau, Current Population Survey. Table 6.5 Voice Penetration by Selected Demographic Characteristics (Percentage of Households with Voice Service) Note : 2013 to 2016 values are annual averages. For 2017, values are July 2017 figures since complete 2017 figures were unavailable at the time of publication. 51 2011 2012 2013 2014 2015 2016 Alabama 97.2 97.3 97.4 97.4 97.2 96.9 Alaska 98.1 97.7 98.0 98.1 97.3 97.5 Arizona 97.0 97.2 97.3 97.5 97.4 96.4 Arkansas 96.6 96.2 97.2 97.3 96.4 96.3 California 97.9 97.9 98.0 97.9 97.8 97.4 Colorado 97.5 97.7 97.7 97.9 97.9 96.9 Connecticut 98.5 98.5 98.6 98.5 98.5 97.9 Delaware 98.2 97.8 98.1 97.9 98.3 97.4 District of Columbia 96.7 97.0 97.2 97.6 97.2 96.4 Florida 96.6 96.5 97.0 97.1 97.1 96.4 Georgia 96.4 96.0 97.6 97.3 97.3 97.0 Hawaii 97.4 97.4 97.7 97.7 97.7 97.0 Idaho 96.5 97.1 97.1 97.3 97.3 96.4 Illinois 97.7 97.7 97.7 97.4 97.6 96.9 Indiana 96.6 96.7 97.4 97.5 97.4 97.1 Iowa 96.9 97.4 97.9 97.6 97.5 96.9 Kansas 97.6 97.3 97.4 97.4 97.1 96.4 Kentucky 96.9 96.8 97.2 97.1 97.3 97.0 Louisiana 97.2 97.4 97.3 97.0 97.2 97.0 Maine 98.2 98.2 97.6 98.1 97.6 97.6 Maryland 97.5 97.8 98.1 97.6 97.7 97.4 Massachusetts 98.3 98.4 98.4 98.2 98.1 98.1 Michigan 97.0 97.2 97.4 97.6 97.4 97.0 Minnesota 98.0 98.0 98.1 97.9 97.3 97.5 Mississippi 96.9 97.2 96.8 97.2 97.0 96.7 Missouri 97.3 97.1 97.6 97.1 97.2 96.9 Montana 97.1 97.4 96.9 97.0 97.0 96.3 Nebraska 97.8 97.6 97.5 97.7 97.3 97.2 Nevada 97.8 97.5 97.9 96.5 97.2 96.5 New Hampshire 98.2 98.0 97.9 98.3 98.3 98.2 New Jersey 97.6 98.2 98.5 98.5 97.8 97.4 New Mexico 94.9 96.5 96.8 97.2 96.6 96.2 New York 97.2 97.5 98.0 97.8 97.9 97.3 North Carolina 97.5 97.6 97.8 97.7 97.6 96.6 North Dakota 98.1 97.3 97.8 98.1 96.9 97.6 Ohio 97.1 96.8 97.2 97.3 97.3 96.7 Oklahoma 97.5 97.7 97.5 97.1 97.0 96.6 Oregon 97.2 97.5 97.6 97.6 97.3 96.7 Pennsylvania 97.8 98.0 98.0 98.2 98.0 97.7 Rhode Island 97.5 97.9 98.3 97.8 98.1 97.5 South Carolina 97.2 97.3 97.7 97.6 97.0 96.1 South Dakota 97.3 97.2 97.5 97.2 96.7 96.4 Tennessee 97.1 97.3 97.6 97.5 97.6 97.1 Texas 97.2 97.4 97.7 97.7 97.4 96.3 Utah 97.6 97.6 97.9 98.0 97.7 97.2 Vermont 98.2 98.6 98.1 98.1 97.9 97.2 Virginia 97.5 97.6 98.2 98.1 97.6 97.5 Washington 97.9 97.4 97.9 97.6 97.5 97.0 West Virginia 96.0 96.5 97.0 96.9 97.3 96.9 Wisconsin 97.7 97.7 97.9 97.7 97.3 97.0 Wyoming 97.8 97.7 98.1 97.9 97.4 97.1 Total United States 97.4 97.4 97.7 97.6 97.4 97.0 Puerto Rico 93.8 94.2 93.8 94.3 95.5 96.0 Note : 'Total United States' does not include Puerto Rico. Table 6.6 Voice Penetration by State, 2011 - 2016 (Percentage of Occupied Housing Units with Voice Service) Source : American Factfinder, Table S0201. 52 1984 1996 2000 2007 2016 Alabama 88.4 92.2 91.9 91.8 95.6 Alaska 86.5 94.4 94.3 96.5 98.3 Arizona 86.9 93.1 93.9 92.9 95.8 Arkansas 86.6 86.9 88.6 92.0 94.1 California 92.5 95.0 95.8 96.5 95.6 Colorado 93.2 95.5 96.3 96.8 97.9 Connecticut 95.5 97.5 96.4 96.6 98.8 Delaware 94.3 96.1 96.3 94.9 94.1 District of Columbia 94.9 93.0 93.2 91.6 96.4 Florida 88.7 93.1 92.1 93.6 95.3 Georgia 86.2 89.7 91.1 92.6 96.2 Hawaii 93.5 94.8 94.7 96.0 93.7 Idaho 90.7 92.9 93.9 96.4 97.2 Illinois 94.2 93.0 91.5 94.1 96.0 Indiana 91.6 93.7 94.5 90.4 95.6 Iowa 96.2 96.6 96.2 97.0 98.9 Kansas 94.3 93.9 94.8 96.2 96.7 Kentucky 88.1 92.3 93.3 94.4 97.4 Louisiana 89.7 91.1 92.6 94.9 96.7 Maine 93.4 96.5 97.9 96.6 98.7 Maryland 95.7 96.7 95.0 95.5 96.3 Massachusetts 95.9 95.7 94.6 96.3 98.0 Michigan 92.8 95.0 95.0 95.0 97.2 Minnesota 95.8 97.1 97.4 97.9 98.4 Mississippi 82.4 87.5 89.2 90.5 96.0 Missouri 91.5 95.3 95.8 96.1 97.0 Montana 91.0 94.3 94.6 95.4 97.3 Nebraska 95.7 96.0 97.3 93.7 97.9 Nevada 90.4 93.5 94.0 95.2 96.4 New Hampshire 94.3 96.1 97.7 96.8 98.3 New Jersey 94.8 93.6 94.6 95.7 93.9 New Mexico 82.0 86.2 91.2 91.6 90.1 New York 91.8 93.4 95.1 93.4 95.8 North Carolina 88.3 93.5 93.9 94.5 95.9 North Dakota 94.6 96.3 95.8 98.0 97.8 Ohio 92.4 94.5 94.8 95.9 96.6 Oklahoma 90.3 91.3 91.2 94.9 97.0 Oregon 90.6 96.0 94.8 96.7 97.6 Pennsylvania 94.9 96.9 96.6 97.0 98.3 Rhode Island 93.6 95.7 94.9 95.3 95.4 South Carolina 83.7 91.3 93.2 90.6 95.5 South Dakota 93.2 93.3 94.3 97.2 97.2 Tennessee 88.5 94.0 95.5 93.2 93.9 Texas 88.4 91.0 93.5 93.5 96.4 Utah 92.5 96.7 95.9 96.8 96.3 Vermont 92.3 95.9 95.6 97.4 98.2 Virginia 93.1 94.9 95.4 95.3 98.3 Washington 93.0 94.5 94.9 96.8 97.9 West Virginia 87.7 92.9 94.0 94.5 97.2 Wisconsin 95.2 97.0 94.8 96.8 98.6 Wyoming 89.9 95.0 94.7 96.1 95.1 Total United States 91.6 93.9 94.4 94.8 96.4 Table 6.7 Voice Penetration by State, Selected Years (Percentage of Households with a Telephone in Unit) Source : U.S. Census Bureau, Current Population Survey. 53 $9,999 or Less $10,000 to $19,999 $19,999 to $29,999 $30,000 to $39,999 $40,000 or More All Households Alabama 91.2 93.8 98.8 98.1 98.3 95.4 Alaska 95.7 96.9 96.6 99.6 97.0 97.2 Arizona 95.8 97.9 98.1 97.8 98.2 97.6 Arkansas 86.8 91.4 95.1 94.3 94.2 91.7 California 90.4 94.2 94.3 95.8 97.5 94.9 Colorado 92.8 98.2 96.7 99.0 99.1 97.6 Connecticut 95.4 97.7 98.3 100.0 98.3 97.9 Delaware 84.5 91.9 93.6 97.7 97.0 93.0 District of Columbia 96.5 96.2 98.4 98.0 97.9 97.4 Florida 94.0 95.5 96.0 97.8 97.7 96.1 Georgia 94.6 95.4 98.3 99.3 95.4 96.2 Hawaii 89.4 91.7 94.8 93.3 96.2 93.6 Idaho 96.9 96.9 96.4 98.2 100.0 97.8 Illinois 93.7 96.2 96.8 97.2 97.8 96.5 Indiana 90.4 92.8 98.3 96.3 97.7 95.0 Iowa 94.5 97.9 96.6 98.5 98.6 97.4 Kansas 85.6 95.1 98.4 98.9 97.9 95.0 Kentucky 95.8 96.7 97.1 100.0 99.1 97.4 Louisiana 93.3 97.3 95.8 95.7 98.7 96.1 Maine 95.9 99.0 100.0 99.0 99.4 98.6 Maryland 88.5 96.7 96.2 96.2 98.2 96.0 Massachusetts 97.4 97.4 97.3 99.2 99.6 98.5 Michigan 94.8 99.2 99.1 98.6 98.9 98.2 Minnesota 95.6 99.3 97.9 98.4 99.8 98.5 Mississippi 94.3 96.8 98.3 99.3 97.8 96.7 Missouri 93.3 98.0 97.6 97.8 98.0 96.9 Montana 95.6 97.4 96.8 98.5 97.7 97.2 Nebraska 95.1 99.6 100.0 98.7 99.4 98.7 Nevada 91.7 96.8 98.0 99.5 97.5 96.7 New Hampshire 93.2 98.8 100.0 99.1 97.3 97.7 New Jersey 88.8 93.0 95.7 93.3 96.8 94.1 New Mexico 87.6 93.2 93.2 93.6 96.2 92.4 New York 93.9 95.4 95.7 95.3 96.1 95.4 North Carolina 92.9 95.5 96.3 95.9 96.2 95.3 North Dakota 98.5 98.8 99.0 99.2 99.5 99.0 Ohio 96.4 98.3 98.6 98.9 98.3 98.0 Oklahoma 93.4 96.2 95.9 99.6 99.8 96.8 Oregon 94.9 97.8 99.2 98.8 98.3 97.8 Pennsylvania 97.2 97.7 98.1 99.1 99.3 98.3 Rhode Island 89.8 92.9 98.5 98.6 97.5 95.4 South Carolina 87.6 95.4 94.8 99.0 97.9 94.8 South Dakota 93.8 96.2 98.7 98.6 99.0 97.1 Tennessee 90.9 93.2 94.3 96.5 93.7 93.4 Texas 94.0 95.4 97.0 97.7 98.3 96.5 Utah 89.4 96.5 92.6 93.9 97.7 94.8 Vermont 96.0 99.2 98.5 99.1 99.7 98.6 Virginia 94.9 96.4 99.0 96.8 99.0 97.5 Washington 89.4 97.8 97.6 98.5 98.3 96.8 West Virginia 94.3 98.4 98.1 97.7 98.8 97.2 Wisconsin 94.6 95.7 99.1 100.0 99.0 97.6 Wyoming 92.4 94.8 95.2 94.5 95.9 94.7 Total United States 93.1 96.0 96.9 97.5 97.8 96.3 Source : U.S. Census Bureau, Current Population Survey (March CPS Supplement). Table 6.8 Household Voice Penetration by State and Income, 2017 Note : Income categories use 1984 dollars. For a conversion to current-year dollars, consult Table 6.3. 54 All Households 81.9 81.4 Household Income2 Less than $20,000 56.5 56.1 $20,000 - $74,999 81.2 79.6 $75,000 or more 94.5 94.3 Metropolitan Status3 Metropolitan Area NA 82.1 Nonmetropolitan Area NA 70.1 Urban / Rural Area3 Rural Area NA 76.4 Urban Area NA 82.6 All Individuals 85.5 85.2 Age4 Under 18 88.7 88.6 18 - 64 87.7 87.4 65 + 72.0 71.1 Race and Hispanic Origin5 White alone, non-Hispanic 86.6 86.3 Black alone, non-Hispanic 77.6 77.4 Asian alone, non-Hispanic 92.7 92.6 Hispanic (of any race) 81.3 81.1 American Indian 71.9 71.4 Note : Income categories are in nominal 2016 dollars. Corrections : The 2015 percent with high-speed internet subscription in rural area and in urban area was reversed in the 2016 Monitoring Report. The corrected numbers are 70.1 in rural area and 78.1 in urban area. 5 Source : American Factfinder, Table B28009 Table 6.9 Internet Use by Selected Characteristics, 2016 1 High-speed service includes all internet service other than dial-up. 2 Source : American Factfinder, Table S2801 4 Source : American Factfinder, Table B28005 3 Source : American Factfinder, Table GCT2801 Percent with some Internet subscription Percent with high-speed Internet subscription1 55 Percent Margin of Error Percent Margin of Error Alabama 68.3 +/-0.5 74.7 +/- 0.5 Alaska 81.7 +/-1.3 85.7 +/- 1.1 Arizona 78.1 +/-0.4 83.1 +/- 0.4 Arkansas 64.2 +/-0.5 70.9 +/- 0.7 California 81.3 +/-0.2 85.4 +/- 0.1 Colorado 83.0 +/-0.4 86.9 +/- 0.3 Connecticut 82.0 +/-0.6 84.1 +/- 0.6 Delaware 77.4 +/-1.1 83.3 +/- 0.9 District of Columbia 76.8 +/-1.4 79.8 +/- 1.3 Florida 77.5 +/-0.2 81.2 +/- 0.2 Georgia 74.8 +/-0.4 80.7 +/- 0.4 Hawaii 82.2 +/-0.9 83.2 +/- 0.8 Idaho 76.7 +/-0.9 79.4 +/- 0.9 Illinois 76.9 +/-0.3 82.0 +/- 0.3 Indiana 73.3 +/-0.4 79.2 +/- 0.4 Iowa 75.0 +/-0.5 79.6 +/- 0.5 Kansas 76.2 +/-0.5 80.3 +/- 0.6 Kentucky 70.9 +/-0.6 77.3 +/- 0.5 Louisiana 68.7 +/-0.6 74.4 +/- 0.5 Maine 77.1 +/-0.7 80.7 +/- 0.8 Maryland 81.4 +/-0.4 85.8 +/- 0.4 Massachusetts 82.6 +/-0.4 85.5 +/- 0.3 Michigan 74.4 +/-0.3 80.5 +/- 0.3 Minnesota 79.5 +/-0.4 83.5 +/- 0.3 Mississippi 61.0 +/-0.8 70.7 +/- 0.7 Missouri 73.3 +/-0.4 79.3 +/- 0.4 Montana 75.0 +/-1.0 78.9 +/- 1.0 Nebraska 78.1 +/-0.5 81.6 +/- 0.7 Nevada 79.0 +/-0.6 80.9 +/- 0.7 New Hampshire 84.5 +/-0.7 86.4 +/- 0.8 New Jersey 81.6 +/-0.3 84.2 +/- 0.3 New Mexico 67.2 +/-0.9 73.7 +/- 0.8 New York 77.8 +/-0.2 81.7 +/- 0.2 North Carolina 74.1 +/-0.4 79.0 +/- 0.3 North Dakota 76.3 +/-1.0 81.4 +/- 1.0 Ohio 76.1 +/-0.2 80.9 +/- 0.3 Oklahoma 70.8 +/-0.5 77.2 +/- 0.4 Oregon 80.8 +/-0.4 84.9 +/- 0.5 Pennsylvania 75.7 +/-0.3 80.5 +/- 0.2 Rhode Island 78.2 +/-1.1 82.8 +/- 0.9 South Carolina 69.9 +/-0.5 77.0 +/- 0.5 South Dakota 75.3 +/-1.2 79.5 +/- 0.9 Tennessee 70.2 +/-0.4 76.7 +/- 0.4 Texas 74.3 +/-0.2 80.5 +/- 0.2 Utah 83.1 +/-0.7 85.4 +/- 0.5 Vermont 78.7 +/-1.1 81.1 +/- 0.9 Virginia 78.6 +/-0.4 83.4 +/- 0.4 Washington 83.9 +/-0.4 87.4 +/- 0.3 West Virginia 69.8 +/-0.8 74.2 +/- 0.8 Wisconsin 76.9 +/-0.4 81.3 +/- 0.3 Wyoming 77.8 +/-1.3 83.2 +/- 1.3 Total United States 76.7 +/-0.1 81.4 +/- 0.1 Puerto Rico 51.8 +/-0.7 59.3 +/- 0.7 Source : American Factfinder, Table GCT2801 Table 6.10 High-Speed Internet Penetration for Households by State 1 1 High-speed internet service includes all internet service other than dial-up. 2015 2016 56 Subscribers Ratio Subscribers Ratio Subscribers Ratio Subscribers Ratio Alabama 1,848 1,290 0.70 955 0.52 653 0.35 68 0.04 Alaska 251 204 0.81 146 0.58 * * * * American Samoa 10 * * 0 0.00 0 0.00 0 0.00 Arizona 2,412 2,044 0.85 1,520 0.63 1,237 0.51 383 0.16 Arkansas 1,138 742 0.65 501 0.44 270 0.24 48 0.04 California 12,718 10,986 0.86 9,326 0.73 7,081 0.56 2,827 0.22 Colorado 2,024 1,802 0.89 1,333 0.66 1,223 0.60 * * Connecticut 1,353 1,185 0.88 1,035 0.77 837 0.62 252 0.19 Delaware 344 318 0.93 296 0.86 284 0.83 94 0.27 District of Columbia 273 234 0.86 211 0.77 200 0.73 * * Florida 7,300 6,864 0.94 5,902 0.81 4,564 0.63 1,192 0.16 Georgia 3,574 2,882 0.81 2,260 0.63 1,630 0.46 296 0.08 Guam 42 * * * * * * 0 0.00 Hawaii 451 408 0.91 401 0.89 * * * * Idaho 589 473 0.80 255 0.43 191 0.32 14 0.02 Illinois 4,786 3,759 0.79 3,108 0.65 2,321 0.48 438 0.09 Indiana 2,502 1,893 0.76 1,443 0.58 992 0.40 228 0.09 Iowa 1,236 917 0.74 587 0.47 469 0.38 92 0.07 Kansas 1,113 881 0.79 658 0.59 404 0.36 174 0.16 Kentucky 1,708 1,297 0.76 892 0.52 465 0.27 230 0.13 Louisiana 1,728 1,212 0.70 949 0.55 620 0.36 136 0.08 Maine 553 486 0.88 343 0.62 154 0.28 10 0.02 Maryland 2,166 1,853 0.86 1,712 0.79 1,594 0.74 509 0.24 Massachusetts 2,550 2,288 0.90 2,111 0.83 2,015 0.79 709 0.28 Michigan 3,841 2,935 0.76 2,442 0.64 1,849 0.48 206 0.05 Minnesota 2,125 1,703 0.80 1,231 0.58 1,081 0.51 257 0.12 Mississippi 1,097 646 0.59 447 0.41 240 0.22 30 0.03 Missouri 2,365 1,781 0.75 1,295 0.55 870 0.37 228 0.10 Montana 409 325 0.79 211 0.51 181 0.44 7 0.02 Nebraska 737 575 0.78 406 0.55 283 0.38 49 0.07 Nevada 1,017 875 0.86 708 0.70 542 0.53 * * New Hampshire 520 479 0.92 403 0.77 359 0.69 139 0.27 New Jersey 3,189 2,903 0.91 2,735 0.86 2,639 0.83 810 0.25 New Mexico 764 538 0.70 306 0.40 269 0.35 71 0.09 New York 7,262 6,249 0.86 5,707 0.79 4,760 0.66 1,373 0.19 North Carolina 3,776 3,192 0.85 2,393 0.63 1,835 0.49 942 0.25 North Dakota 300 228 0.76 193 0.64 144 0.48 24 0.08 Northern Mariana Isl. 16 * * * * * * 0 0.00 Ohio 4,585 3,791 0.83 2,959 0.65 1,388 0.30 76 0.02 Oklahoma 1,455 1,002 0.69 711 0.49 430 0.30 115 0.08 Oregon 1,533 1,289 0.84 1,011 0.66 886 0.58 262 0.17 Pennsylvania 4,959 3,998 0.81 3,226 0.65 2,868 0.58 944 0.19 Puerto Rico 1,244 * * * * * * * * Rhode Island 411 345 0.84 331 0.81 296 0.72 * * South Carolina 1,815 1,445 0.80 1,151 0.63 615 0.34 45 0.02 South Dakota 331 252 0.76 210 0.64 156 0.47 13 0.04 Tennessee 2,505 1,816 0.72 1,485 0.59 1,110 0.44 233 0.09 Texas 9,149 7,122 0.78 5,763 0.63 3,724 0.41 1,555 0.17 Utah 906 783 0.86 569 0.63 496 0.55 193 0.21 Vermont 257 239 0.93 165 0.64 131 0.51 52 0.20 Virgin Islands 43 22 0.51 * * * * * * Virginia 3,063 2,497 0.82 2,149 0.70 1,889 0.62 576 0.19 Washington 2,669 2,340 0.88 1,865 0.70 1,703 0.64 633 0.24 West Virginia 741 529 0.71 360 0.49 287 0.39 61 0.08 Wisconsin 2,299 1,856 0.81 1,426 0.62 816 0.35 20 0.01 Wyoming 227 175 0.77 123 0.54 102 0.45 1 0.00 Total 118,281 96,616 0.82 78,219 0.66 59,540 0.50 17,444 0.15 Mbps = megabits per second and kbps = kilobits per second. * = Data withheld to maintain firm confidentiality. Note : Figures may not sum to totals due to rounding. Sources : FCC Form 477 (Connections); 2011-2015 ACS 5 -Year Estimates (Households for the fifty states, District of Columbia and Puerto Rico) Census 2010 (Housing Units for Puerto Rico, American Samoa, Guam, Northern Mariana Islands and U.S. Virgin Islands). Table 6.11 Residential Fixed Connections per Household by Speed Tier as of December 31, 2016 (Households and Subscribers in thousands) Households At least 200 Kbps in any direction 10 Mbps Download 25 Mbps Download 100 Mbps Download 1 Mbps upload 3 Mbps Upload 10 Mbps Upload 57 Low-Income Group 1 Low-Income Group 2 Telephone Service 95.4 97.0 Internet Access 61.3 70.4 Low-Income Group 1 Low-Income Group 2 Telephone Expenses1 All 3.0 3.6 With Expenses Only 3.4 3.8 Cellular Phone Expenses All 2.3 2.6 With Expenses Only 2.6 2.8 Internet Expenses All 0.9 1.1 With Expenses Only 1.5 1.7 Note : The 2016 Lifeline Modernization Order included affordability of voice and broadband service as a component of the program’s goals and directed WCB to measure the extent to which voice and broadband service expenditures exceed two percent of low income consumers’ disposable household income as compared to the next highest income group. Lifeline and Link Up Reform and Modernization, et al. , WC Docket No. 11-42 et al., Third Report and Order, Further Report and Order, and Order on Reconsideration, 31 FCC Rcd 3962, 4112, para. 408 (2016). Table 6.12 Comparison of Telephone Service, Internet Access, Telephone Expenses, and Internet Expenses Source : American Community Survey 2016 Public Use Microdata Sample (PUMS) data for telephone service and internet access and Consumer Expenditure Survey 2016 public-use microdata (PUMD) for telephone and internet expenses and after tax income. in Low-Income Households, 2016 All statistics between group 1 and group 2 are statistically significantly different at a confidence level of 99.9%. Note : Group 1 contains occupied housing units where the household income is less than or equal to 135% of the 2016 Federal Poverty Guideline for the household. Group 2 contains occupied housing units where household income is greater than 135% of the Federal Poverty Guideline, but less than or equal t 200% of the Federal Poverty Guideline for that Household. Note : Expenses are calculated for everyone in the income groups (All) and for only those who have telephone or internet expenses in the income groups (With Expenses Only). 1 The telephone expenses include residential phone service, VOIP, phone cards, and cellular phone service. Percent of Low-Income Households with Telephone/Internet Services Low-Income Household Expenses for Telephone/Cellular Phone/Internet Services as a Percent of Total Expenses 58 Rate-of-Return Carriers Residential Business Total At Least 4 Mbps December 2014 1,168 136 1,304 December 2015 1,354 146 1,500 December 2016 1,592 164 1,756 At Least 10 Mbps December 2014 644 71 715 December 2015 853 90 943 December 2016 1,115 114 1,229 At Least 25 Mbps December 2014 159 15 174 December 2015 264 22 286 December 2016 416 35 451 Price Cap Carriers Residential Business Total At Least 4 Mbps December 2014 17,315 2,566 19,881 December 2015 20,595 1,426 22,021 December 2016 20,692 1,602 22,293 At Least 10 Mbps December 2014 14,337 1,001 15,338 December 2015 16,430 1,211 17,641 December 2016 17,946 1,388 19,334 At Least 25 Mbps December 2014 5,162 414 5,576 December 2015 7,282 511 7,794 December 2016 8,904 596 9,500 Source : FCC Form 477 Submissions. Notes : ILEC stands for Incumbent Local Exchange Carrier. All connections below 25 Mbps have a minimum upstream speed of 1 Mbps. All connections with at least 25 Mbps have a minimum upstream of 3 Mbps. Table 6.13 Fixed Connections for ILECs (in Thousands) 59 Rate-of-Return Carriers Price Cap Carriers December 2010 4,635 92,862 December 2011 4,495 84,932 December 2012 4,268 77,846 December 2013 4,123 70,959 December 2014 3,882 65,500 December 2015 3,747 59,930 December 2016 3,688 54,657 Table 6.14 Switched Access Lines and Interconnected VoIP Subscribers for ILECs (in Thousands) Note : ILEC stands for Incumbent Local Exchange Carrier. Source : FCC Form 477 Submissions. 60 Section 7 – Price Indices Overview – Price Indices This section contains information on telephone price indices using data from the Consumer Price Index (CPI) maintained by the Bureau of Labor Statistics (BLS). The BLS collects information on telephone service as part of the CPI.1 Monthly CPI data can be found on the Internet at www.bls.gov/cpi/. The monthly price indices represent prices sampled in the middle of the month. The CPI for telephone services is based on a ³market basket ´intended to represent the telephone- related expenditures of a typical urban household. It includes both land-line telephone service and wireless telephone service. In January 2010, BLS discontinued collecting four land-line telephone indices, including local charges, long distance charges, interstate toll calls, and intrastate toll calls. These four indices were combined into a single land-line telephone service index, which began in December 2009. The Producer Price Index (PPI), also published by BLS, continues to release sub-indices for telephone services. We no longer include them in this report because they have become less meaningful as the bundling of telephone services has become more common in the land-line telephone industry.2 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. 2 PPI data are available on the BLS website at www.bls.gov/ppi/. 61 CPI All Items (SA0) 4.2 2.1 CPI All Services (SAS) 5.0 2.7 CPI Telephone Services (SEED) 1.6 0.2 CPI Major Categories: - Food & Beverages (SAF) 4.1 2.5 - Housing (SAH) 4.4 2.2 - Apparel (SAA) 1.7 0.4 - Transportation (SAT) 3.8 1.3 - Medical Care (SAM) 6.0 3.6 - Recreation (SAR) * 0.6 - Other Goods & Services (SAG) 5.3 3.0 CPI Public Transportation (SETG) 4.7 1.7 CPI Utility (Piped) Gas Service (SEHF02) 4.8 -4.2 CPI Electricity (SEHF01) 4.1 2.9 CPI Water & Sewerage Maint. (SEHG01) 6.2 6.1 CPI Postage (SEEC01) 4.5 3.7 one divided by the number of years in the period. Finally, subtract 1 from the result of the second step. Source : Bureau of Labor Statistics. Note : The CPI Telephone Services index was revised in December of 1997. To calculate values in this table, Series MUUR0000SE270A is used for periods prior to this revision and CUUR0000SEED is used for periods after the revision. After each row, the series ID is provided and should be preceeded by CUUR0000 when referencing the series. Note : The Compound Annual Growth Rate is a smoothed rate of growth calculated in three steps. First, divide the ending value by the beginning value. Second, raise the result of that division to a power equal to * Series not established until after 1969. Table 7.1 Long-Term Changes for Various Price Indices (Compound Average Growth Rate) 1969 - 2016 2006 - 2016 62 BLS Series ID 2000 3.4 -2.3 * -12.3 2001 1.6 1.3 * -5.5 2002 2.4 0.2 * 0.3 2003 1.9 -2.7 * -1.3 2004 3.3 -2.5 * -1.4 2005 3.4 0.4 * -1.5 2006 2.5 1.7 * 0.0 2007 4.1 2.1 * -0.9 2008 0.1 2.9 * 0.5 2009 2.7 1.0 * -1.1 2010 1.5 -0.9 2.2 -3.6 2011 3.0 -0.3 1.9 -2.3 2012 1.7 0.3 1.9 -0.8 2013 1.5 0.0 3.0 -2.0 2014 0.8 -2.1 1.8 -4.0 2015 0.7 0.7 2.2 0.0 2016 2.1 -2.8 0.9 -4.2 Sources : Bureau of Labor Statistics. CUUR0000SA0 CUUR0000SEED CUUR0000SEED04 CUUR0000SEED03 * Series not established until December 2009. Note : Values report the percent change from December of the previous year through December of the year shown. Table 7.2 Annual Changes in CPI Telephone Services and All Items Indices All Goods and Services Telephone Services Land-line Telephone Services Wireless Telephone Services 63 All Goods and Services Telephone Services Land-line Telephone Services Wireless Telephone Services CUUR0000SA0 CUUR0000SEED CUUR0000SEED04 CUUR0000SEED03 2013 January 106.64 99.26 107.15 59.36 February 107.51 99.26 107.58 59.20 March 107.79 99.19 107.56 59.14 April 107.68 98.58 107.42 58.58 May 107.87 98.64 107.60 58.58 June 108.13 98.58 107.47 58.57 July 108.17 98.70 108.16 58.43 August 108.30 98.63 108.14 58.36 September 108.43 98.83 108.78 58.33 October 108.15 99.04 109.34 58.33 November 107.93 98.93 109.20 58.28 December 107.92 98.96 109.35 58.25 2014 January 108.32 99.35 111.11 58.14 February 108.72 98.94 110.81 57.85 March 109.42 98.85 110.82 57.78 April 109.78 98.95 110.78 57.87 May 110.16 98.87 111.14 57.71 June 110.37 98.79 111.00 57.68 July 110.33 98.82 111.09 57.68 August 110.14 98.79 111.09 57.65 September 110.23 98.78 111.25 57.60 October 109.95 97.51 111.20 56.51 November 109.35 97.09 111.04 56.18 December 108.73 96.86 111.37 55.89 2015 January 108.22 96.82 112.32 55.61 February 108.69 96.70 112.70 55.41 March 109.34 96.32 114.90 54.98 April 109.56 96.22 113.03 54.90 May 110.12 95.87 113.28 54.54 June 110.51 95.96 113.48 54.56 July 110.51 96.18 113.63 54.71 August 110.36 96.79 113.83 55.19 September 110.19 97.04 113.94 55.39 October 110.14 97.20 114.00 55.51 November 109.90 97.63 113.90 55.91 December 109.53 97.59 113.86 55.88 2016 January 109.71 97.73 114.60 55.85 February 109.80 97.13 115.14 55.27 March 110.27 97.08 114.90 55.28 April 110.80 97.10 114.88 55.29 May 111.25 96.69 114.88 54.97 June 111.62 96.56 114.23 54.99 July 111.43 96.33 114.02 54.85 August 111.53 96.42 114.71 54.79 September 111.80 95.25 113.78 54.03 October 111.94 94.89 113.78 53.74 November 111.76 94.84 114.42 53.58 December 111.80 94.87 114.84 53.52 2017 January 112.45 94.81 115.01 53.44 February 112.81 94.21 116.45 52.68 March 112.90 89.55 116.16 49.00 April 113.23 88.54 116.37 48.15 May 113.33 88.33 115.70 48.12 June 113.43 87.84 115.64 47.74 July 113.35 87.74 116.04 47.58 Statistics (BLS). Series values for Telephone Services and Wireless Telephone Services are converted from the December 1997 base index series reported by BLS. Series are not seasonally adjusted. Series may be referenced via the BLS website with the Series ID listed at the top of each column. Source : Bureau of Labor Statistics. Table 7.3 Monthly Consumer Price Indices (December 2009 = 100) BLS Series ID Note : Series values for All Goods and Services are converted from the 1982-1984 base index series reported by the Bureau of Labor 64