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 2021 (Data Received Through September 2021) 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, 45 L Street, NE, Washington, DC 20554. Copies may be purchased by contacting Best Copy and Printing, Inc., 45 L Street, NE, 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 ............................................................................................................................................. 5 2021 Monitoring Report Supplementary Material .................................................................................................... 7 Section 1 – Revenues and Contributions ....................................................................................................................... 8 Section 2 – Lifeline (Low Income) .............................................................................................................................. 28 Section 3 – Connect America Fund (High Cost) Program ........................................................................................... 38 Section 4 – E-Rate (Schools and Libraries) ................................................................................................................. 47 Section 5 – Rural Health Care ...................................................................................................................................... 51 Section 6 – Subscribership (Voice and Internet).......................................................................................................... 54 Section 7 – Price Indices .............................................................................................................................................. 73 Federal-State Joint Board on Universal Service 2 2021 Monitoring Report Report Tables Table 1.1 – Filer Revenues by Service Type: 2011 – 2020 ...................................................................................... 9 Table 1.2 – Filer Revenues, Wholesale vs. Retail: 2011 – 20201 ........................................................................... 11 Table 1.3 – 2020 Filer Revenues by Service Type: Top 10 Affiliated Entities vs. Other Companies ................... 13 Table 1.4 – Telecommunications Revenue Reported on FCC Form 499-Q: 2019 – 2021 ..................................... 15 Table 1.5 – USF Contribution Base by Year: 2011 – 20201 ................................................................................... 17 Table 1.6 – Universal Service Fund Contribution Factor1 ...................................................................................... 18 Table 1.7 – Billed Interstate and International Retail Communications Revenues by Top 10 Affiliated Entities vs. Other Companies: 2011 – First Half 20211 .............................................................................................. 19 Table 1.8 – End User Telecommunications Revenue by State: 2019 ..................................................................... 20 Table 1.9 – Universal Service Support Mechanisms by State: 2020 ...................................................................... 21 Table 1.10 – Universal Service Disbursements 2001 – 2020 ................................................................................. 23 Table 1.11 – Universal Service Program Requirements and Contribution Factors for 2021 ................................. 24 Table 1.12 - Number of Telecommunications Service Providers by Size of Business ........................................... 26 Table 2.1 - Lifeline Subscribers and Link Up Beneficiaries ................................................................................... 29 Table 2.2 – Low Income Claims ............................................................................................................................. 30 Table 2.3 – Low Income Claims by State: 2020 ..................................................................................................... 31 Table 2.4 - Low-Income Claims Received by ILECs and Competitive ETCs ....................................................... 32 Table 2.5 – Low-Income Claims by Program and by Affiliated Entities: 2020 ..................................................... 33 Table 2.6 – Total Monthly Lifeline Subscribers Since January 2016 ..................................................................... 34 Table 2.7 – Lifeline De-Enrollments or Scheduled De-Enrollments Recertification by State in 20201 ................. 35 Table 2.8 – Low-Income Subscribers by State in 2020 by Facilities Type of Carrier ............................................ 36 Table 2.9 – Lifeline Subscribers by Type of Service: 2020 .................................................................................... 37 Table 3.1 – High-Cost Support Fund Claim History .............................................................................................. 40 Table 3.2 – High-Cost Support Fund Claim History – Rate of Return ................................................................... 41 Table 3.3 – High-Cost Support Fund Claim History – Price Cap ........................................................................... 42 Table 3.4 – High-Cost Support Fund Claim History – Competitive Eligible Telecommunications Carriers ........ 43 Table 3.5 – High-Cost Support Fund Claims – States: 2020 .................................................................................. 44 Table 3.6 – Annual High-Cost Fund Support Claims – Affiliates: 2018 – 2020 .................................................... 45 Table 3.7 – High-Cost Support Fund Claims – Affiliates: 2020............................................................................. 46 Table 4.1 – Schools and Libraries Funding Commitments and Disbursements by Applicant Type and Year ....... 48 Table 4.2 – Schools and Libraries Funding Commitments and Disbursements from Program Inception through June 30, 2021 by State and Applicant Type ............................................................................................. 50 Table 5.1 – Rural Health Care Funding Commitments and Disbursements by Program and Year ........................ 52 Table 5.2 – Rural Health Care Funding Commitments and Disbursements from Program Inception ................... 53 Table 6.1 – Household Voice Subscribership in the United States, 1983 – 2021................................................... 56 Federal-State Joint Board on Universal Service 3 2021 Monitoring Report Table 6.2 – Household Voice Penetration by Income, 1997 – 2021....................................................................... 57 Table 6.3 – Nominal Dollar Equivalents by Year ................................................................................................... 58 Table 6.4 – Historical Voice Penetration Estimates................................................................................................ 59 Table 6.5 – Voice Penetration by Selected Demographic Characteristics .............................................................. 60 Table 6.6 – Voice Subscribership by State, 2014 – 2019 ....................................................................................... 61 Table 6.7 – Voice Penetration by State, Selected Years ......................................................................................... 62 Table 6.8 – Household Voice Penetration by State and Income, 2021 ................................................................... 63 Table 6.9 – Internet Use by Selected Characteristics, 2019 .................................................................................... 64 Table 6.10 – High-Speed Internet Penetration for Households by State, 2015 – 20191 ......................................... 65 Table 6.11 – Residential Fixed Connections per Household by Speed Tier as of December 31, 2020.................. 66 Table 6.12 – Telephone Service, Internet Access, Telephone Expenses, and Internet Expenses in Low-Income Households ............................................................................................................................................... 67 Table 6.13 – Switched Access Lines and Interconnected VoIP Subscribers for ILECs ......................................... 68 Table 6.14 – Fixed Connections for ILECs ............................................................................................................ 69 Table 6.15 – Fixed Deployments for ILECs ........................................................................................................... 70 Table 6.16 – Overview of Broadband Deployment by High-Cost Support Mechanism ........................................ 71 Table 6.17 – High Cost Supported Broadband Deployment by State..................................................................... 72 Table 7.1 – Long-Term Changes for Various Price Indices ................................................................................... 74 Table 7.2 – Annual Changes in CPI Telephone Services and all Items Indices ..................................................... 75 Table 7.3 – Monthly Consumer Price Indices ......................................................................................................... 76 Federal-State Joint Board on Universal Service 4 2021 Monitoring Report Universal Service Monitoring Report 2021 Introduction and Summary The purpose of the Monitoring Report is to observe the impacts of universal service support mechanisms and the method used to finance them.1 Initiated by the Federal Communications Commission in 1997, this is the twenty-fourth such report, prepared by federal and state staff members for the Federal-State Joint Board on Universal Service (Universal Service Joint Board).2 Unless otherwise noted, this report is based on information available as of September 2021. 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 to, and beneficiaries of, the Universal Service Fund, including incumbent local exchange carriers (ILECs), competitive eligible telecommunications carriers (competitive ETCs), schools, libraries, and health care providers. NECA, at the direction of the Commission, provides information to USAC used to administer certain aspects of the high-cost program. Section 1 of the report 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 subscribership by income by state. It also includes data on residential Internet subscribership and expenses. Section 7 includes updated Consumer Price Index data. This report is available on 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 in this report are also available separately as spreadsheets on the website. The Monitoring Report is published once a year, but data received 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 Industry Analysis Division’s Data and Statistical Reports Internet site, located at https://www.fcc.gov/economics-analytics/industry-analysis-division/iad-data-statistical-reports. Supplementary material is available in a single compressed (.zip) format file at http://www.fcc.gov/encyclopedia/federal-state-joint-board-monitoring-reports. The contents of this file are provided at the end of this introduction. 1 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 to replace a similar program in CC Docket No. 87-339 that previously resulted in a series of nineteen Monitoring Reports. 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). 2 The last report was released in January 2021. Universal Service Monitoring Report, 2020, CC Docket No. 96-45 et al. (Data Received Through September 2020) available at https://www.fcc.gov/general/federal-state-joint-board- monitoring-reports. Federal-State Joint Board on Universal Service 5 2021 Monitoring Report We continue to look for ways to present universal service data in a way that is useful for the public. Last year, we began providing additional information on the Lifeline program. Table 2.6 includes data on the share of Lifeline subscribers using wireless technology. We also added Table 2.8 which breaks out Lifeline subscribers by whether they are voice only, broadband only, or bundle subscribers and Supplemental Table 2.5 which further breaks this out between technology. In 2019, we added a new chart in Section 6 showing nationwide deployment information requested by the Joint Board. In 2020, we added a supplemental table presenting deployment data at the state level. This year we add a new table in Section 1 which breaks out the number of providers by type and size. We invite questions or comments on this report via email at OEA-IADreports@fcc.gov with subject: 2021 Monitoring Report. Federal-State Joint Board on Universal Service 6 2021 Monitoring Report 2021 Monitoring Report Supplementary Material This list shows the folders (underlined) and filenames contained in the 2021 Monitoring Report Supplementary Material zip file available at http://www.fcc.gov/encyclopedia/federal-state-joint-board- monitoring-reports. Revenues and Contributions S.1.1. Detailed Telecommunications Revenue - 2020 S.1.2, Revenue Details - Historical S.1.3. Estimating End-User Revenue by State - 2019 Tables S.1.4. Estimating End-User Revenue by State – 2019 Technical Appendix 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 - 2020 S.2.5. Lifeline Subscribers by Service Type, State and Technology 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 – 2020 S.3.5 HC Reductions due to Cap on Per-Line Support - by Study Area Disbursements S.3.6. HC Disbursements - by State S.3.7. HC Disbursements - by Study Area S.3.8. HC Performance Default Penalty 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 and Minutes of Use S.6.1. Broadband Subscribership by County, Congressional District & State 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. High-Cost Supported Broadband Deployment by SAC and Year S.6.6. High-Cost Supported Broadband Obligation & Deployment by SAC S.6.7. Fine Detail Obligation and Deployment for AK Plan Federal-State Joint Board on Universal Service 7 2021 Monitoring Report Section 1 – Revenues and Contributions In response to the Telecommunications Act of 1996, the Commission established 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 telecommunications services if the Commission finds contributions from such providers to be in the public interest. The tables in this section provide an 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 how contributions support universal service can be found at the Commission’s website http://www.fcc.gov/encyclopedia/contribution-methodology-administrative-filings and on USAC’s website at http://www.usac.org. Please note that that the information provided in this report is based upon Commission rules in effect in 2020. Federal-State Joint Board on Universal Service 8 2021 Monitoring Report Table 1.1 – Filer Revenues by Service Type: 2011 – 2020 (in Millions of Dollars) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Local Exchange 1 $38,987 $35,298 $32,922 $30,537 $28,410 $25,900 $23,208 $20,771 $18,806 $16,115 Pay Telephone 2 136 368 359 322 286 271 269 265 280 286 Local Private Line 3 28,243 29,072 29,632 31,222 32,191 30,472 30,272 26,906 25,560 21,608 4 Local Service VoIP Local 8,110 8,990 10,103 11,136 11,968 14,398 14,428 14,503 14,355 14,317 and Other Local 5 3,145 2,462 1,746 1,450 1,493 1,510 1,749 1,710 1,265 1,164 Payphone Revenues Federal and State USF Support 6 5,620 6,282 5,991 5,786 6,137 6,016 5,904 5,994 6,422 6,484 Subscriber Line Charges 7 6,703 6,195 5,968 5,511 5,175 4,787 4,431 4,049 3,700 3,345 Access 8 7,368 6,787 6,384 5,006 4,836 3,809 3,312 2,850 2,575 2,257 Total Local Service and Payphone Revenues 98,313 95,455 93,105 90,969 90,495 87,162 83,572 77,048 72,964 65,576 Mobile Revenues Total Mobile Service Revenues 9 107,392 105,147 98,160 86,996 75,262 65,636 56,952 52,890 39,631 33,379 Operator 10 3,162 3,373 3,064 2,699 2,351 1,876 1,844 1,810 1,711 1,464 VoIP Toll 11 4,250 4,693 4,999 5,139 5,238 3,447 3,768 3,925 3,518 2,491 Non-Operator Switched Toll 12 23,307 20,718 18,346 17,354 16,261 14,850 11,841 11,068 9,913 9,054 Toll Service Revenues Long Distance Private Line 13 11,443 12,221 12,542 12,293 12,778 13,353 13,316 12,850 11,991 10,698 Other Long Distance 14 4,186 5,155 3,886 3,965 3,050 2,816 3,306 2,233 2,273 2,268 Total Toll Service Revenues 46,347 46,159 42,837 41,450 39,678 36,342 34,075 31,885 29,405 25,975 Total Local, Mobile, and Toll Revenues 252,052 246,761 234,102 219,416 205,436 189,141 174,599 161,824 142,000 124,930 Universal Service Surcharges 15 8,986 9,964 8,986 9,083 9,041 9,135 8,319 8,438 8,447 8,059 Total Telecommunications Revenues 16 261,038 256,725 243,088 228,499 214,477 198,276 182,918 170,262 150,447 132,989 Total Non-Telecommunications Revenues 17 214,538 219,548 251,892 268,804 301,121 311,404 321,597 337,212 361,245 379,509 Total Reported Revenues $475,576 $476,272 $494,981 $497,303 $515,598 $509,679 $504,516 $507,474 $511,692 $512,497 1 The sum of Lines 303.1a, 303.2a, 404.1a, 404.2a, and 404.3a from Form 499-A. 2 The sum of Lines 306a and 407a from Form 499-A. 3 The sum of Lines 305.1a, 305.2a, and 406a from Form 499-A. 4 The sum of Lines 404.4a and 404.5a from Form 499-A. 5 The sum of Lines 307a and 408a from Form 499-A. 6 Line 308a from Form 499-A. 7 Line 405a from Form 499-A. As of 2012, includes Access Recovery Charge (ARC). 8 The sum of Lines 304.1a and 304.2a from Form 499-A. 9 The sum of Lines 309a, 409a, and 410a from Form 499-A. 10 The sum of Lines 310a, 411a, 412a, and 413a from Form 499-A. 11 Line 414.2a from Form 499-A. 12 sum of Lines 311a and 414.1a from Form 499-A. Federal-State Joint Board on Universal Service 9 2021 Monitoring Report 13 The sum of Lines 312a and 415a from Form 499-A. 14 The sum of Lines 313a, 314a, 416a, and 417a from Form 499-A. 15 Line 403a from Form 499-A. 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. 16 Subtotal includes surcharge. 17 Line 418a from Form 499-A. Note: Detail may not add to totals due to rounding. Source: FCC Form 499-A for 2020 based on filings as of August 23, 2021. Federal-State Joint Board on Universal Service 10 2021 Monitoring Report Table 1.2 – Filer Revenues, Wholesale vs. Retail: 2011 – 20201 (in Millions of Dollars) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Local Service 3,4 $39,807 $39,843 $39,101 $37,983 $38,976 $36,180 $35,501 $32,701 $31,224 $26,122 Mobile Service 5 5,512 5,570 5,384 5,339 5,025 4,601 3,463 3,403 3,564 4,588 Wholesale Toll Service 6 11,921 11,722 10,911 10,485 9,955 9,714 8,519 7,775 6,899 6,642 (Carrier's Carrier) Total Wholesale Revenues $57,239 $57,135 $55,396 $53,807 $53,955 $50,496 $47,484 $43,879 $41,687 $37,352 Telecommunications 7 Revenues 2 Intrastate 20,379 18,895 17,236 16,174 15,775 13,749 13,095 11,737 11,481 11,443 Interstate and International 8,9 36,861 38,240 38,160 37,633 38,180 36,747 34,389 32,142 30,206 25,909 Percentage Interstate/International 64 % 67 % 69 % 70 % 71 % 73 % 72 % 73 % 72 % 69 % Local Service 3,10 $58,506 $55,612 $54,004 $52,986 $51,519 $50,982 $48,071 $44,347 $41,740 $39,454 Mobile Service 11 101,881 99,577 92,776 81,657 70,238 61,035 53,489 49,487 36,067 28,790 12 34,426 34,438 31,927 30,966 29,723 26,628 25,556 24,110 22,506 19,333 Retail Toll Service (End User) Universal Service Surcharges 13 8,986 9,964 8,986 9,083 9,041 9,135 8,319 8,438 8,447 8,059 Telecommunications Total Retail Revenues $203,798 $199,590 $187,693 $174,692 $160,522 $147,780 $135,435 $126,383 $108,760 $95,637 Revenues Intrastate 14 133,475 129,468 119,294 107,847 96,592 87,598 79,702 73,284 61,296 52,400 Interstate and International 1,8, 15 70,323 70,122 68,399 66,846 63,930 60,181 55,733 53,098 47,464 43,236 Percentage Interstate/International 35 % 35 % 36 % 38 % 40 % 41 % 41 % 42 % 44 % 45 % Local Service 3 $98,313 $95,455 $93,105 $90,969 $90,495 $87,162 $83,572 $77,048 $72,964 $65,576 Mobile Service 107,392 105,147 98,160 86,996 75,262 65,636 56,952 52,890 39,631 33,379 Toll Service 46,347 46,159 42,837 41,450 39,678 36,342 34,075 31,885 29,405 25,975 Total Telecommunications Universal Service Surcharges 13 8,986 9,964 8,986 9,083 9,041 9,135 8,319 8,438 8,447 8,059 Revenues (Wholesale + Retail) Total Telecommunications Revenues $261,038 $256,725 $243,088 $228,499 $214,477 $198,276 $182,918 $170,262 $150,447 $132,989 Intrastate 153,854 148,363 136,530 124,021 112,367 101,347 92,797 85,022 72,777 63,843 Interstate and International 8 107,184 108,362 106,559 104,479 102,110 96,929 90,121 85,240 77,670 69,146 Percentage Interstate/International 41 % 42 % 44 % 46 % 48 % 49 % 49 % 50 % 52 % 52 % Total Non-Telecommunications Revenues $214,538 $219,548 $251,892 $268,804 $301,121 $311,404 $321,597 $337,212 $361,245 $379,509 Total Reported Revenues $475,576 $476,272 $494,981 $497,303 $515,598 $509,679 $504,516 $507,474 $511,692 $512,497 1 Data include revenues for de minimis filers, as well as for other carriers that are exempt from universal service contribution requirements. 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 (Universal Service Fund) contribution base. 3 Payphone revenues and interconnected Voice over Internet Protocol (VoIP) revenues are included with local service revenues in this table. 4 The sum of Lines 303a to 308a from Form 499-A. Federal-State Joint Board on Universal Service 11 2021 Monitoring Report 5 Line 309a from Form 499-A. 6 The sum of Lines 310a to 314a from Form 499-A. 7 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. 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 represents the USF contribution base, which is further described in Table 1.5. 9 The sum of Lines 303d to 314d, plus the sum of Lines 303e to 314e from Form 499-A. 10 The sum of Lines 404a to 408a from Form 499-A. 11 The sum of Lines 409a and 410a from Form 499-A. 12 The sum of Lines 411a to 417a from Form 499-A. 13 Line 403a from Form 499-A. Surcharges are contribution amounts passed through to end users. 14 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. 15 This line best represents the USF (Universal Service Fund) contribution base, which is further described in Table 1.5. Amounts are calculated using the sum of Lines 403d to 417d, plus the sum of Lines 403e to 417e from Form 499-A. This is different from billed interstate and international end user revenue, which does not include international-to-international revenues and uncollected revenues. Note: Detail may not add to totals due to rounding. Source: FCC Form 499-A for 2020 based on filings as of August 23, 2021. Federal-State Joint Board on Universal Service 12 2021 Monitoring Report Table 1.3 – 2020 Filer Revenues by Service Type: Top 10 Affiliated Entities vs. Other Companies (in Millions of Dollars) Top 10 Affiliated Other Total Entities1 Companies Local Exchange 2 $ 12,405 $ 3,710 $ 16,115 Pay Telephone 3 2 284 286 Local Private Line 4 16,584 5,024 21,608 5 Local Service VoIP 10,178 4,139 14,317 and Other Local 6 772 391 1,164 Payphone Revenues Federal and State USF Support 7 2,475 4,009 6,484 Subscriber Line Charges 8 2,442 903 3,345 Access 9 1,277 980 2,257 Total Local Service and Payphone Revenues 46,136 19,440 65,576 Mobile Revenues Total Mobile Service Revenues 10 29,388 3,991 33,379 Operator 11 100 1,363 1,464 VoIP 12 1,695 796 2,491 Non-Operator Switched Toll 13 5,555 3,499 9,054 Toll Service Revenues Long Distance Private Line 14 8,733 1,966 10,698 Other Long Distance 15 670 1,598 2,268 Total Toll Service Revenues 16,753 9,222 25,975 Total Local, Mobile, and Toll Revenues 92,277 32,653 124,930 Universal Service Surcharges 16 6,554 1,504 8,059 Total Telecommunications Revenues 17 98,831 34,157 132,989 Total Non-Telecommunications Revenues 18 267,806 111,703 379,509 Total Reported Revenues $ 366,637 $ 145,860 $ 512,497 1 The "Top 10 Affiliated Entities" are those with the greatest telecommunications revenues as defined by the sum of Lines 315a and 420a on Form 499-A. These companies are (in alphabetical order): América Móvil, AT&T Inc., Charter Communications, Comcast Corporation, Cox Communications, Frontier Communications Corporation, Lumen Technologies, Inc., T-Mobile USA, Verizon Communications, and Windstream Holdings, Inc.. The affiliated entity structure is current as of year-end 2020. 2 The sum of Lines 303.1a, 303.2a, 404.1a, 404.2a, and 404.3a from Form 499-A. Federal-State Joint Board on Universal Service 13 2021 Monitoring Report 3 The sum of Lines 306a and 407a from Form 499-A. 4 The sum of Lines 305.1a, 305.2a, and 406a from Form 499-A. 5 The sum of Lines 404.4a and 404.5a from Form 499-A. 6 The sum of Lines 307a and 408a from Form 499-A. 7 Line 308a from Form 499-A. 8 Line 405a from Form 499-A. As of 2012, includes Access Recovery Charge (ARC). 9 The sum of Lines 304.1a and 304.2a from Form 499-A. 10 The sum of Lines 309a, 409a, and 410a from Form 499-A. 11 The sum of Lines 310a, 411a, 412a, and 413a from Form 499-A. 12 Line 414.2a from Form 499-A. 13 The sum of Lines 311a and 414.1a from Form 499-A. 14 The sum of Lines 312a and 415a from Form 499-A. 15 The sum of Lines 313a, 314a, 416a, and 417a from Form 499-A. 16 Amounts are calculated using Line 403a from Form 499-A. The surcharge figure indicates only surcharges that have been explicitly reported as such in the Form 499-A and does not account for implicit surcharge revenues where carriers collect the surcharge through higher prices. 17 Subtotal includes surcharge. 18 Line 418a from Form 499-A. Note: Detail may not add to totals due to rounding. Source: FCC Form 499-A based on filings as of August 23, 2021. Federal-State Joint Board on Universal Service 14 2021 Monitoring Report Table 1.4 – Telecommunications Revenue Reported on FCC Form 499-Q: 2019 – 2021 (in Millions of Dollars) LIRE Total Data from FCC Form 499-Q All Filers Exemption1 Less LIRE Retail (End User) Billed 49,108 Projected Revenues for 2019 Interstate and International Retail Net of Uncollectibles 48,742 (1,694) 47,048 Implied Uncollectible Rate 0.7 % Wholesale (Carrier's Carrier) Billed 39,557 Intrastate, Interstate, Retail (End User) Billed 109,012 Historical Revenues and International Reported for 2019 Total Revenue 148,568 Interstate and International Retail (End User) Billed 47,256 Retail (End User) Billed 6 44,700 Projected Revenues for 2020 Interstate and International Retail Net of Uncollectibles 7,8 44,363 (1,581) 42,781 Implied Uncollectible Rate 0.8 % Wholesale (Carrier's Carrier) Billed 9 36,342 Intrastate, Interstate, Retail (End User) Billed 10 95,986 Historical Revenues and International Reported for 2020 Total Revenue 132,328 Interstate and International Retail (End User) Billed 11 42,987 Retail (End User) Billed 6 42,234 Projected Revenues for 2021 Interstate and International Retail Net of Uncollectibles 7,8 41,943 (1,460) 40,482 Implied Uncollectible Rate 0.7 % Wholesale (Carrier's Carrier) Billed 9 18,868 Intrastate, Interstate, Retail (End User) Billed 10 46,385 Historical Revenues and International Reported for First Half of 2021 Total Revenue 65,254 11 Interstate and International Retail (End User) Billed 21,598 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. 2 Projected intrastate revenues are not reported on FCC Form 499-Q. Federal-State Joint Board on Universal Service 15 2021 Monitoring Report 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." 6 Projected revenues billed to end users are calculated using the sum of Lines 119b and 119c from Form 499-Q. 7 Projected revenues collected from end users are calculated using the sum of Lines 120b and 120c from Form 499-Q. 8 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. 9 Historical revenues billed to wholesaler is calculated using Line 115a from Form 499-Q. 10 Historical revenues billed to retail is calculated using Line 116a from Form 499-Q. 11 Interstate and international historical revenues billed to end users is calculated using the sum of Lines 116b and 116c from Form 499- Q. Note: Detail may not add to totals due to rounding. Source: FCC Form 499-Q as of August 23, 2021. Federal-State Joint Board on Universal Service 16 2021 Monitoring Report Table 1.5 – USF Contribution Base by Year: 2011 – 20201 (in Millions of Dollars) Revenues Subject to USF Contribution 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Billed interstate and international retail (end-user) revenues (includes Universal Service Surcharge) 2 $70,323 $70,122 $68,399 $66,846 $63,930 $60,181 $55,733 $53,098 $47,464 $43,236 less revenues for international-to-international services 3 452 638 589 579 361 174 150 198 215 134 international revenues of international-only filers and international revenues that were excluded less because of the LIRE Exemption4 3,118 2,934 2,994 2,828 2,790 2,084 2,007 1,623 1,652 1,388 interstate and other international revenues for filers who are de minimis or otherwise exempt less from universal service support requirements 24 21 23 26 26 26 27 28 27 26 less uncollectible contribution base revenues5 785 711 611 530 470 427 355 330 314 267 equals $65,944 $65,816 $64,182 $62,884 $60,282 $57,471 $53,193 $50,919 $45,255 $41,421 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) The 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. 2 Amounts are calculated using the sum of Lines 403 to 417, parts d and e, on Form 499-A 3 Amounts are calculated using line 412e on Form 499-A 4 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. 5 Does not include uncollectible amounts associated with filers who are de minimis or LIRE exempt. Amounts are calculated using the sum of Lines 422, parts d and e of Form 499-A. Note: Detail may not add to totals due to rounding. Source: FCC Form 499-Q based on filings as of August 23, 2021. Federal-State Joint Board on Universal Service 17 2021 Monitoring Report Table 1.6 – Universal Service Fund Contribution Factor1 Year Quarter Contribution Factor 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 2018 First Quarter 19.5 Second Quarter 18.4 Third Quarter 17.9 Fourth Quarter 20.1 2019 First Quarter 20.0 Second Quarter 18.8 Third Quarter 24.4 Fourth Quarter 25.0 2020 First Quarter 21.2 Second Quarter 19.6 Third Quarter 26.5 Fourth Quarter 27.1 2021 First Quarter 31.8 Second Quarter 33.4 Third Quarter 31.8 Fourth Quarter 29.1 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 Federal-State Joint Board on Universal Service 18 2021 Monitoring Report Table 1.7 – Billed Interstate and International Retail Communications Revenues by Top 10 Affiliated Entities vs. Other Companies: 2011 – First Half 20211 (in Millions of Dollars) Top 10 Affiliated Entities2 Other Companies Total Top 10 Share 2011 $54,206 $15,665 $69,871 78 % 2012 53,671 15,813 69,483 77 2013 52,779 15,031 67,810 78 2014 52,739 13,528 66,267 80 2015 50,083 13,485 63,568 79 2016 47,638 12,369 60,008 79 2017 44,897 10,686 55,582 81 2018 42,405 10,495 52,900 80 2019 36,900 10,349 47,249 78 2020 33,382 9,721 43,102 77 First Half 20213 15,859 4,489 20,348 78 1 Revenues are calculated as the sum of Lines 403d to 417d (interstate end user revenue) and 403e to 417e (international end user revenue) minus Lines 412e from Form 499-A. 2 The "Top 10 Affiliated Entities" are those with the greatest telecommunications revenues as defined by the sum of Lines 315a and 420a on Form 499-A. These companies, for 2021, are (in alphabetical order): América Móvil, AT&T Inc., Charter Communications, Comcast Corporation, Cox Communications, Frontier Communications Corporation, Lumen Technologies, Inc., T-Mobile USA, Verizon Communications, and Windstream Holdings, Inc.. 3 Preliminary revenues are calculated using Line 116b plus Line 116c for each quarter in FCC Form 499-Q. Note: Detail may not add to totals due to rounding. Source: Data for 2020 are based on FCC Form 499-A filings as of August 23, 2021. Data for 2021 are based on FCC Form 499-Q filings as of August 23, 2021. Federal-State Joint Board on Universal Service 19 2021 Monitoring Report Table 1.8 – End User Telecommunications Revenue by State: 2019 (in Millions of Dollars) Interstate and % Interstate and Intrastate Total % Intrastate % Total International International Alabama $796 $568 $1,364 1.30 % 1.20 % 1.25 % Alaska 118 113 232 0.19 0.24 0.21 American Samoa 6 3 9 0.01 0.01 0.01 Arizona 1,143 949 2,092 1.87 2.00 1.92 Arkansas 503 382 885 0.82 0.80 0.81 California 7,567 5,648 13,215 12.35 11.90 12.15 Colorado 1,074 926 2,000 1.75 1.95 1.84 Connecticut 755 625 1,380 1.23 1.32 1.27 Delaware 201 181 382 0.33 0.38 0.35 District of Columbia 345 308 652 0.56 0.65 0.60 Florida 3,518 2,716 6,235 5.75 5.72 5.73 Georgia 1,877 1,334 3,212 3.06 2.81 2.95 Guam 32 23 55 0.05 0.05 0.05 Hawaii 266 212 478 0.43 0.45 0.44 Idaho 272 237 510 0.44 0.50 0.47 Illinois 2,397 1,931 4,328 3.91 4.07 3.98 Indiana 1,093 900 1,993 1.78 1.90 1.83 Iowa 620 465 1,086 1.01 0.98 1.00 Kansas 517 379 897 0.84 0.80 0.82 Kentucky 785 545 1,331 1.28 1.15 1.22 Louisiana 830 555 1,385 1.35 1.17 1.27 Maine 267 200 467 0.43 0.42 0.43 Maryland 1,258 1,122 2,380 2.05 2.36 2.19 Massachusetts 1,589 1,216 2,806 2.59 2.56 2.58 Michigan 1,664 1,264 2,928 2.72 2.66 2.69 Minnesota 1,163 922 2,085 1.90 1.94 1.92 Mississippi 430 294 725 0.70 0.62 0.67 Missouri 1,064 870 1,934 1.74 1.83 1.78 Montana 197 160 357 0.32 0.34 0.33 Nebraska 391 291 682 0.64 0.61 0.63 Nevada 518 412 931 0.85 0.87 0.86 New Hampshire 276 240 516 0.45 0.51 0.47 New Jersey 2,050 1,647 3,697 3.35 3.47 3.40 New Mexico 351 277 628 0.57 0.58 0.58 New York 4,413 3,224 7,637 7.20 6.79 7.02 North Carolina 1,778 1,331 3,109 2.90 2.80 2.86 North Dakota 161 128 289 0.26 0.27 0.27 N. Mariana Islands 10 6 16 0.02 0.01 0.01 Ohio 2,124 1,604 3,727 3.46 3.38 3.43 Oklahoma 621 458 1,079 1.01 0.96 0.99 Oregon 727 588 1,314 1.19 1.24 1.21 Pennsylvania 2,661 2,078 4,738 4.34 4.38 4.36 Puerto Rico 524 403 927 0.85 0.85 0.85 Rhode Island 208 147 354 0.34 0.31 0.33 South Carolina 865 632 1,497 1.41 1.33 1.38 South Dakota 192 129 321 0.31 0.27 0.29 Tennessee 1,192 852 2,044 1.94 1.80 1.88 Texas 4,682 3,600 8,282 7.64 7.58 7.62 Utah 485 413 897 0.79 0.87 0.83 Vermont 148 127 275 0.24 0.27 0.25 Virgin Islands 20 20 41 0.03 0.04 0.04 Virginia 1,701 1,427 3,128 2.77 3.01 2.88 Washington 1,349 1,099 2,448 2.20 2.31 2.25 West Virginia 350 314 663 0.57 0.66 0.61 Wisconsin 1,043 871 1,914 1.70 1.84 1.76 Wyoming 109 96 205 0.18 0.20 0.19 Total $61,296 $47,464 $108,760 100.00 % 100.00 % 100.00 % Note: Figures may not add to totals due to rounding. Source: FCC/OEA (Office of Economics and Analytics) staff estimates. For methodology end-user revenue per state, see Supplemental Table S.1.4 Estimating End User Revenues Technical Appendix at http://www.fcc.gov/encyclopedia/federal-state-joint-board-monitoring-reports Federal-State Joint Board on Universal Service 20 2021 Monitoring Report Table 1.9 – Universal Service Support Mechanisms by State: 2020 (Annual Payments and Contributions in Thousands of Dollars) Payments from USF to Providers Estimated Contributions 2 Estimated Net Dollar High-Cost Low-Income Total 3 1 Schools & Libraries Rural Health Care Flow Support Support Amount % of Total Amount % of Total Alabama $92,020 $8,562 $42,931 $3,056 $146,569 1.77 % $101,445 1.20 % $45,124 Alaska 167,797 7,258 72,886 36,707 284,648 3.44 20,189 0.24 264,459 American Samoa 3,287 97 457 0 3,842 0.05 623 0.01 3,219 Arizona 81,063 29,699 58,078 13,115 181,955 2.20 169,465 2.00 12,491 Arkansas 119,522 8,085 20,522 10,507 158,635 1.92 68,203 0.80 90,432 California 158,665 162,182 229,430 14,955 565,232 6.83 1,008,798 11.90 -443,566 Colorado 63,871 6,108 22,123 16,853 108,954 1.32 165,336 1.95 -56,381 Connecticut 435 7,479 15,030 511 23,455 0.28 111,609 1.32 -88,155 Delaware 287 1,402 3,384 0 5,073 0.06 32,352 0.38 -27,280 District of Columbia 0 1,829 8,968 0 10,797 0.13 54,949 0.65 -44,152 Florida 41,420 39,875 85,951 4,795 172,042 2.08 485,145 5.72 -313,102 Georgia 120,936 27,637 59,797 9,033 217,403 2.63 238,291 2.81 -20,888 Guam 12,872 51 397 124 13,444 0.16 4,189 0.05 9,255 Hawaii 6,240 730 6,586 27 13,583 0.16 37,822 0.45 -24,240 Idaho 56,161 1,037 15,293 4,978 77,468 0.94 42,374 0.50 35,094 Illinois 133,555 21,350 70,776 6,208 231,889 2.80 344,902 4.07 -113,013 Indiana 126,282 13,386 42,160 9,756 191,584 2.32 160,747 1.90 30,837 Iowa 226,177 4,965 19,680 3,940 254,762 3.08 83,135 0.98 171,627 Kansas 176,443 3,916 25,235 3,457 209,050 2.53 67,744 0.80 141,305 Kentucky 157,885 13,224 39,094 5,322 215,526 2.60 97,373 1.15 118,152 Louisiana 80,517 19,439 31,675 3,504 135,135 1.63 99,149 1.17 35,986 Maine 35,184 1,940 6,546 5,481 49,151 0.59 35,800 0.42 13,350 Maryland 3,693 14,458 23,649 2,666 44,465 0.54 200,396 2.36 -155,931 Massachusetts 2,852 11,188 25,601 1,585 41,225 0.50 217,266 2.56 -176,041 Michigan 120,603 25,230 38,555 9,862 194,251 2.35 225,843 2.66 -31,592 Minnesota 248,057 7,746 23,339 3,170 282,312 3.41 164,755 1.94 117,557 Mississippi 164,497 6,642 15,823 7,855 194,817 2.35 52,579 0.62 142,238 Missouri 211,986 9,158 42,394 10,270 273,808 3.31 155,337 1.83 118,471 Montana 138,789 612 4,448 863 144,712 1.75 28,542 0.34 116,170 Nebraska 122,807 494 10,225 2,519 136,046 1.64 52,019 0.61 84,026 Nevada 21,791 7,250 9,783 419 39,242 0.47 73,672 0.87 -34,430 New Hampshire 11,547 630 2,975 129 15,282 0.18 42,955 0.51 -27,673 New Jersey 1,151 14,155 45,036 0 60,342 0.73 294,138 3.47 -233,795 New Mexico 89,649 16,475 37,678 4,785 148,587 1.80 49,468 0.58 99,119 New York 56,989 52,296 135,672 5,607 250,563 3.03 575,828 6.79 -325,265 North Carolina 77,982 14,187 72,433 10,027 174,628 2.11 237,729 2.80 -63,100 North Dakota 180,858 1,003 2,050 1,054 184,965 2.24 22,818 0.27 162,147 N. Mariana Islands 3,209 183 252 0 3,643 0.04 1,005 0.01 2,638 Ohio 84,766 34,848 62,536 6,674 188,824 2.28 286,402 3.38 -97,578 Oklahoma 161,053 55,651 41,801 5,558 264,063 3.19 81,774 0.96 182,289 Oregon 87,181 5,086 15,752 2,927 110,946 1.34 104,948 1.24 5,998 Pennsylvania 58,591 32,579 53,541 3,174 147,884 1.79 371,062 4.38 -223,178 Puerto Rico 119,835 50,255 50,032 0 220,123 2.66 72,055 0.85 148,067 Rhode Island 69 2,152 5,069 0 7,290 0.09 26,241 0.31 -18,951 South Carolina 122,152 11,348 27,497 5,093 166,091 2.01 112,818 1.33 53,272 South Dakota 126,113 1,330 4,813 3,798 136,054 1.64 22,995 0.27 113,059 Tennessee 102,202 11,919 66,294 3,674 184,089 2.22 152,235 1.80 31,854 Texas 298,424 38,689 225,886 21,793 584,791 7.07 642,994 7.58 -58,203 Utah 43,798 2,349 16,479 1,636 64,263 0.78 73,708 0.87 -9,445 Vermont 22,873 914 2,779 283 26,849 0.32 22,654 0.27 4,195 Virgin Islands 17,338 108 214 24 17,684 0.21 3,640 0.04 14,044 Virginia 79,821 10,679 36,413 6,867 133,780 1.62 254,940 3.01 -121,161 Washington 90,817 14,123 32,872 9,650 147,461 1.78 196,248 2.31 -48,786 West Virginia 59,451 6,305 15,950 4,557 86,263 1.04 56,009 0.66 30,253 Wisconsin 225,539 13,296 31,909 8,807 279,551 3.38 155,623 1.84 123,928 Wyoming 45,461 72 3,025 275 48,832 0.59 17,142 0.20 31,691 Total $5,062,559 $853,660 $2,059,772 $297,929 $8,273,920 100.00 % $8,477,479 100.00 % -$203,558 Federal-State Joint Board on Universal Service 21 2021 Monitoring Report 1 High-cost support excludes penalties withheld from Mobility Fund and includes recovered forfeited funds for Connect America Fund (CAF)-Phase I Support. 2 Contributions include administrative cost of approximately $204 million, as shown in Universal Service Administration Company (USAC) 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. 3 Net dollar flow is positive when payments from USF (Universal Service Fund) to carriers exceed contributions to USF. Total is negative because of administrative expenses. Note: Figures may not add due to rounding. Federal-State Joint Board on Universal Service 22 2021 Monitoring Report Table 1.10 – Universal Service Disbursements 2001 – 2020 (in Millions of Dollars) High-Cost Low-Income Rural Health Schools and Year Total Support Support Care Libraries 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 4,491 1,537 298 2,387 8,712 2017 4,683 1,287 262 2,650 8,882 2018 4,836 1,162 299 2,185 8,482 2019 5,147 982 252 1,969 8,349 2020 5,063 854 298 2,060 8,274 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 Connect America Fund (CAF)-Phase I Support. Source: Universal Service Administration Company (USAC). Federal-State Joint Board on Universal Service 23 2021 Monitoring Report Table 1.11 – Universal Service Program Requirements and Contribution Factors for 2021 (in Millions of Dollars) First Quarter Second Quarter Third Quarter Fourth Quarter Full Year High Cost High Cost Loop Support $95.40 $95.68 $92.71 $91.09 $374.88 Broadband Loop Support $195.89 $195.86 $196.30 $241.41 $829.46 CAF - Phase I Frozen Support 1 $19.25 $11.65 $11.70 $10.95 $53.55 Frozen Competitive ETC Support 2 $96.59 $96.04 $94.87 $93.98 $381.48 CAF - Intercarrier Compensation Support $99.00 $98.99 $99.18 $99.01 $396.18 CAF - Phase II Auction $38.70 $38.70 $38.70 $38.70 $154.80 CAF - Phase II Cost Model $379.42 $379.42 $379.42 $379.42 $1,517.68 Alternative Connect America Cost Model I & II $234.99 $235.37 $235.37 $235.37 $941.10 Alaska Plan Support $32.08 $32.08 $32.08 $32.08 $128.32 Uniendo a Puerto Rico/Connect USVI $24.19 $26.86 $26.86 $26.86 $104.77 Rural Digital Opportunity Fund $0.00 $218.30 $100.60 $100.60 $419.50 Prior Period Adjustment $127.18 -$32.77 -$35.69 -$229.56 -$170.84 USAC Administrative Costs $16.50 $17.34 $17.22 $17.22 $68.28 Program Total $1,359.19 $1,413.52 $1,289.32 $1,137.13 $5,199.16 Low Income Lifeline Assistance $215.30 $231.98 $242.42 $237.19 $926.89 Link-Up $0.03 $0.04 $0.04 $0.03 $0.14 Prior Period Adjustment $30.62 $6.43 $27.37 -$22.65 $41.77 USAC Administrative Costs $16.37 $16.37 $16.43 $16.36 $65.53 Program Total $262.32 $254.82 $286.26 $230.93 $1,034.33 Rural Health Rural Health Care Support $144.94 $144.66 $147.00 $146.66 $583.26 Prior Period Adjustment $15.69 -$1.83 -$3.62 $0.11 $10.35 USAC Administrative Costs $6.25 $6.53 $6.01 $6.35 $25.14 Program Total $166.88 $149.36 $149.39 $153.12 $618.75 Connected Care Pilot Program Connected Care Pilot Program5 $8.33 $8.33 $8.33 $8.33 $33.32 Prior Period Adjustment $0.00 -$0.17 -$0.03 -$0.09 -$0.29 USAC Administratice Costs $0.00 $0.60 $0.29 $0.31 $1.20 Program Total $8.33 $8.76 $8.59 $8.55 $34.23 Schools & Libraries Schools and Libraries Support $534.10 $626.10 $573.39 $573.39 $2,306.98 Prior Period Adjustment $57.38 -$11.23 -$13.43 $0.45 $33.17 USAC Administrative Costs $19.79 $19.74 $19.88 $20.30 $79.71 Program Total $611.27 $634.61 $579.84 $594.14 $2,419.86 Grand Total $2,407.99 $2,461.07 $2,313.40 $2,123.87 $9,306.33 Applicable interstate and international end-user revenues Reported contribution base revenues $10,068.71 $9,905.67 $9,665.94 $9,517.30 Circulatory Adjustment Amount carriers will contribute to USF in this quarter -$2,407.99 -$2,461.07 -$2,313.40 -$2,123.87 Subtotal $7,660.72 $7,444.60 $7,352.54 $7,393.43 Adjustment factor for uncollectibles 1.0% 1.0% 1.0% 1.0% Adjusted contribution base $7,584.11 $7,370.15 $7,279.01 $7,319.50 Contribution factor 31.8% 33.4% 31.8% 29.1% Federal-State Joint Board on Universal Service 24 2021 Monitoring Report In the USF/ICC Transformation Order, the Commission converted support received by price cap carriers and 1 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. In the USF/ICC Transformation Order, the Commission froze support received by competitive ETCs, including 2 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. "To secure the funds for the Pilot Program, we direct USAC to separately collect funds for the Pilot Program 3 each quarter beginning with the demand filing for the fourth quarter of 2020," Promoting Telehealth for Low- Income Consumers, COVID-19 Telehealth Program, WC Docket Nos. 18-213 and 20-89, Report and Order, FCC 20-44, para. 42 (2020). Federal-State Joint Board on Universal Service 25 2021 Monitoring Report Table 1.12 - Number of Telecommunications Service Providers by Size of Business (As of December 31, 2020) Number of FCC Form Filers that in Combination with Affiliates Have Type of Provider 1 1,500 or Fewer 499-A Filers More than 1,500 Employees 2 Employees 2 Incumbent LEC (ILEC) 1,227 929 298 CAP / CLEC 743 653 90 Cable / Coax CLEC 110 104 6 Interconnected VoIP 2,336 2,300 36 Non-Interconnected VoIP 233 231 2 Shared-Tenant Service Provider 28 28 0 Audio Bridge Service Provider 98 97 1 Local Reseller 293 289 4 Other Local 115 106 9 Total Local Competitors 3,956 3,808 148 Total Fixed Local Service Providers 5,183 4,737 446 Payphone Service Provider 58 57 1 Private Service Provider 262 243 19 Cellular / PCS / SMR 288 214 74 Paging & Messaging 90 90 0 SMR (dispatch) 119 119 0 Wireless Data 269 264 5 Other Mobile 31 28 3 Total Wireless Service Providers 797 715 82 Interexchange Carrier 151 131 20 Operator Service Provider 32 32 0 Prepaid Card 79 78 1 Satellite 3 71 48 23 Toll Reseller 518 495 23 Other Toll 115 113 2 Total Toll Service Providers 966 897 69 All Filers 7,266 6,649 617 Holding Company Analysis Filers without Affiliates: Holding Company Level 5,065 5,043 22 Filer Level 5,065 5,043 22 Filers with Affiliates 4 Holding Company Level 589 554 35 Filer Level 2,201 1,606 595 Total, Holding Company level 5,654 5,597 57 Total, Filer Level 7,266 6,649 617 Federal-State Joint Board on Universal Service 26 2021 Monitoring Report Note: Estimates are based on gross revenue data filed on the 2020 FCC Form 499-A worksheets and public employment data from FCC Form 395 and Securities and Exchange Commission filings. Filers were considered affiliated based on information from their FCC Form 499-A filings. These estimates do not reflect affiliates that do not file the FCC Form 499-A, such as firms that are not in the telecommunications business or firms that operate solely outside the United States. 1 While FCC Form 499-A filings are not publicly available, filer registration information is searchable only at https://apps.fcc.gov/cgb/form499/499a.cfm. Employee counts are estimated at the holding company level, yet presented at the filer level. If our analysis indicates that, at the holding company level, a group of filers together employs more than 1,500 people, then 2 each of the individual filer that comprise the holding company are entered in the column labeled as such. Therefore, our estimates do not imply that each or any of the individual filers alone employs more than 1,500 persons. 3 Satellite holding companies are defined as large if they have total revenue more than $35 million, in accordance with the Small Business Association guidelines. 4. In some cases, affiliated companies may file a single FCC Form 499A for all operations. Such consolidated filings are included in this category. Source: FCC Form 499-A filings and IAD staff estimates. Federal-State Joint Board on Universal Service 27 2021 Monitoring Report 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 began providing Lifeline support for qualifying broadband 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. As of December 2020, the National Verifier has fully launched in all states and territories. 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 Lifeline or Link Up 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 and Link Up programs are 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 https://www.usac.org/lifeline/. Please note that the information provided in this report is based upon the program rules through November 2021. Federal-State Joint Board on Universal Service 28 2021 Monitoring Report Table 2.1 - Lifeline Subscribers and Link Up Beneficiaries (in Thousands) Lifeline Link Up 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 13,833 650 14,483 0 17 17 2014 12,943 502 13,445 0 29 29 2015 12,115 418 12,533 0 20 20 2016 12,424 360 12,783 0 21 21 2017 10,461 293 10,754 0 10 10 2018 9,342 258 9,600 0 12 12 2019 7,833 229 8,061 0 11 11 2020 7,148 243 7,391 0 7 7 1 Subscriber data were not collected in 1997. Lifeline subscribership data were estimated by Universal Service Administrative Company (USAC). Link Up data were not estimated. Notes: The Lifeline subscribers and Link Up beneficiaries represent USAC data for the time period January through December, including true-ups reported through August 2021. Data for 2014-2019 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. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 29 2021 Monitoring Report Table 2.2 – Low Income Claims (in Thousands of Dollars) Lifeline Link Up Total Additional Year General 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 1,521,279 118,119 10,814 0 1,650,212 108,449 21,528 129,977 1,780,189 2012 1,919,834 210,389 6,646 0 2,136,870 34,770 11,940 46,710 2,183,580 2013 1,607,106 179,885 2,690 0 1,789,681 0 567 567 1,790,248 2014 1,491,402 137,330 0 0 1,628,731 0 640 640 1,629,372 2015 1,390,540 118,933 0 0 1,509,472 0 447 447 1,509,919 2016 1,417,006 103,308 0 0 1,520,315 0 486 486 1,520,801 2017 1,192,537 84,192 0 0 1,276,729 0 238 238 1,276,967 2018 1,064,240 74,459 0 0 1,138,700 0 256 256 1,138,956 2019 892,712 66,625 0 0 959,337 0 224 224 959,562 2020 799,337 71,675 0 0 871,012 0 161 161 871,173 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. 2 Tribal Lifeline subscribers also receive General support which is currently $9.25 per subscriber for qualifying broadband service or $5.25 per subscriber for qualifying voice service. 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. Notes: Data for 2014-2019 were updated to account for true-ups. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 30 2021 Monitoring Report Table 2.3 – Low Income Claims by State: 2020 (in Thousands of Dollars) Low-Income Claims by State: 2020 (in Thousands of Dollars) Lifeline Link Up State or Jurisdiction Total General Additional Tribal Non-Tribal Tribal Alabama $8,591 $75 $0 $0 $8,667 Alaska 2,191 5,856 0 7 8,055 American Samoa 103 0 0 0 103 Arizona 18,112 12,079 0 71 30,262 Arkansas 8,258 1 0 0 8,259 California 165,947 81 0 0 166,028 Colorado 6,283 0 0 0 6,283 Connecticut 7,611 0 0 0 7,611 Delaware 1,418 0 0 0 1,418 District of Columbia 1,897 0 0 0 1,897 Florida 40,566 0 0 0 40,566 Georgia 28,222 0 0 0 28,222 Guam 48 0 0 0 48 Hawaii 741 25 0 0 766 Idaho 1,009 21 0 0 1,030 Illinois 21,643 0 0 0 21,643 Indiana 13,445 0 0 0 13,445 Iowa 5,043 0 0 0 5,043 Kansas 3,936 2 0 0 3,939 Kentucky 13,471 0 0 0 13,471 Louisiana 19,813 0 0 0 19,813 Maine 1,931 5 0 0 1,936 Maryland 14,659 0 0 0 14,659 Massachusetts 11,281 0 0 0 11,281 Michigan 25,665 66 0 0 25,731 Minnesota 7,126 763 0 0 7,889 Mississippi 6,697 168 0 0 6,865 Missouri 9,357 2 0 0 9,358 Montana 196 380 0 2 578 Nebraska 403 56 0 0 459 Nevada 7,214 146 0 0 7,360 New Hampshire 627 0 0 0 627 New Jersey 14,113 0 0 0 14,113 New Mexico 7,872 8,620 0 70 16,562 New York 52,860 0 0 0 52,860 North Carolina 14,381 9 0 0 14,389 North Dakota 449 580 0 0 1,029 Northern Mariana Islands 189 0 0 0 189 Ohio 35,626 0 0 0 35,626 Oklahoma 18,125 39,387 0 7 57,519 Oregon 5,232 40 0 0 5,272 Pennsylvania 32,793 0 0 0 32,793 Puerto Rico 50,977 0 0 0 50,977 Rhode Island 2,219 0 0 0 2,219 South Carolina 11,479 4 0 0 11,483 South Dakota 553 739 0 0 1,292 Tennessee 12,039 0 0 0 12,039 Texas 40,915 0 0 0 40,915 Utah 2,028 375 0 3 2,406 Vermont 912 0 0 0 912 Virgin Islands 70 0 0 0 70 Virginia 10,935 0 0 0 10,935 Washington 12,782 1,655 0 0 14,437 West Virginia 6,381 0 0 0 6,381 Wisconsin 12,871 520 0 0 13,391 Wyoming 31 19 0 0 50 Total $799,337 $71,675 $0 $161 $871,173 Notes: These dollars represent submitted claims to Universal Service Administrative Company (USAC) for the time period January 2020 through December 2020, including true-ups reported through August 2021. Lifeline subscribers residing on Tribal lands also receive the basic support amount, which is currently $9.25 per subscriber for qualifying broadband service or $5.25 per subscriber for qualifying voice service. This amount is not included in Tribal support. For Link Up, the payments and subscribers for the two categories of recipients are kept separate. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 31 2021 Monitoring Report Table 2.4 - Low-Income Claims Received by ILECs and Competitive ETCs (in Thousands of Dollars) ILECs Competitive ETCs Total Percent Competitive ETCs 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 1,247,963 1,780,189 70.1 2012 450,652 1,732,928 2,183,580 79.4 2013 295,981 1,494,267 1,790,248 83.5 2014 224,012 1,405,360 1,629,372 86.3 2015 165,714 1,344,205 1,509,919 89.0 2016 133,871 1,386,930 1,520,801 91.2 2017 104,438 1,172,529 1,276,967 91.8 2018 79,322 1,059,633 1,138,956 93.0 2019 58,553 901,009 959,562 93.9 2020 40,405 830,768 871,173 95.4 Notes: Competitive Eligible Telecommunications Carriers (ETC) include both wireless and wireline carriers. Data for 2014-2019 were updated to account for true-ups. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 32 2021 Monitoring Report Table 2.5 – Low-Income Claims by Program and by Affiliated Entities: 2020 (in Thousands of Dollars) Total Cumulative Lifeline Link Up Percent Rank Affiliated Entity Name 1 Low-Income Percent of Support Support of Total Support Total 1 T-Mobile USA, Inc. $243,756 $0 $243,756 28.0% 28.0% 2 América Móvil 193,976 0 193,976 22.3 50.2 3 Quadrant Holdings Group LLC 139,549 0 139,549 16.0 66.3 4 TSC Acquisition Corporation 60,131 0 60,131 6.9 73.2 5 Telrite Corporation 29,210 0 29,210 3.4 76.5 6 Smith Bagley, Inc. 24,647 121 24,768 2.8 79.4 7 Assist Wireless, LLC 23,291 0 23,291 2.7 82.0 8 Amerimex Communications Corporation 23,221 0 23,221 2.7 84.7 9 I-Wireless, LLC 15,849 0 15,849 1.8 86.5 10 Telecom Service Bureau, Inc. 13,974 0 13,974 1.6 88.1 11 AT&T Inc. 13,540 0 13,540 1.6 89.7 12 Global Connection Inc. of America 12,466 0 12,466 1.4 91.1 13 GCI Holdings LLC 7,307 0 7,307 0.8 91.9 14 Verizon Communications Inc. 6,358 0 6,358 0.7 92.7 15 Frontier Communications Corporation 5,083 0 5,083 0.6 93.3 16 TerraCom/YourTel America 4,980 0 4,980 0.6 93.8 17 NewPhone Wireless, LLC 4,779 0 4,779 0.5 94.4 18 American Broadband and Telecommunications Company 4,765 0 4,765 0.5 94.9 19 ATN International, Inc. 4,318 0 4,318 0.5 95.4 20 Cintex Wireless, LLC 3,514 0 3,514 0.4 95.8 21 Lumen Technologies, Inc. 3,458 0 3,458 0.4 96.2 22 Boomerang Wireless, LLC 3,356 0 3,356 0.4 96.6 23 True Wireless, LLC 2,920 0 2,920 0.3 96.9 24 IM Telecom, LLC 1,902 0 1,902 0.2 97.2 25 Windstream Holdings, Inc. 1,396 0 1,396 0.2 97.3 26 North American Local, LLC 1,389 0 1,389 0.2 97.5 27 Cox Communications, Inc. 1,363 0 1,363 0.2 97.6 28 Cell Span, Inc. 1,209 0 1,209 0.1 97.8 29 Telephone and Data Systems, Inc. 960 0 960 0.1 97.9 30 Sacred Wind Enterprises, Inc. 758 22 780 0.1 98.0 Other Carriers 17,589 17 17,607 2.0 100.0 All Affiliated Entities $871,012 $161 $871,173 100.0% 100.0% 1 Affiliated entities include all commonly-controlled or commonly owned affiliates as of year-end 2020. 2 In 2020, T-Mobile USA, Inc. owned Sprint and Virgin Mobile USA. 3 América Móvil owns TracFone Wireless. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 33 2021 Monitoring Report Table 2.6 – Total Monthly Lifeline Subscribers Since January 2016 Subscribers (in Thousands) Percent of Subscribers that are Wireless Non-Tribal Non-Tribal Month Tribal Lifeline Total Lifeline Tribal Lifeline Total Lifeline Lifeline Lifeline January-16 391 12,394 12,785 84 % 89 % 89 % February-16 391 12,362 12,753 84 89 89 March-16 397 12,434 12,831 84 89 89 April-16 402 12,566 12,967 85 90 90 May-16 405 12,636 13,041 85 90 90 June-16 349 12,726 13,075 86 90 90 July-16 338 12,790 13,128 86 90 90 August-16 332 12,428 12,761 86 90 90 September-16 332 12,493 12,825 88 91 91 October-16 334 12,397 12,731 88 91 91 November-16 327 12,187 12,514 89 91 91 December-16 317 11,672 11,989 89 91 91 January-17 300 11,041 11,341 89 91 91 February-17 301 10,883 11,184 89 91 91 March-17 301 10,721 11,022 88 91 91 April-17 297 10,513 10,810 88 90 90 May-17 298 10,461 10,759 88 91 90 June-17 298 10,481 10,778 89 91 91 July-17 292 10,385 10,677 89 91 91 August-17 290 10,287 10,577 89 91 91 September-17 287 10,210 10,498 89 91 91 October-17 285 10,276 10,561 90 91 91 November-17 283 10,182 10,465 90 91 91 December-17 282 10,087 10,370 90 92 91 January-18 279 10,024 10,303 90 92 92 February-18 277 9,912 10,189 90 92 92 March-18 271 9,822 10,094 90 92 92 April-18 268 9,602 9,870 90 92 92 May-18 261 9,456 9,717 90 92 92 June-18 259 9,336 9,594 90 92 92 July-18 257 9,184 9,441 90 92 92 August-18 250 9,079 9,329 90 92 92 September-18 250 9,030 9,281 90 92 92 October-18 243 9,010 9,254 90 93 93 November-18 243 8,857 9,100 90 93 93 December-18 233 8,793 9,026 89 93 93 January-19 233 8,762 8,994 89 93 93 February-19 235 8,649 8,884 90 93 93 March-19 226 8,579 8,805 89 93 93 April-19 225 8,500 8,725 89 93 93 May-19 225 8,444 8,669 90 93 93 June-19 227 8,368 8,596 90 93 93 July-19 227 8,200 8,426 90 94 93 August-19 229 7,268 7,497 90 93 93 September-19 232 6,756 6,987 90 92 92 October-19 230 6,943 7,173 90 93 93 November-19 228 6,825 7,053 90 93 93 December-19 228 6,698 6,926 90 93 93 January-20 220 6,495 6,715 92 93 93 February-20 222 6,492 6,714 91 93 93 March-20 226 6,564 6,789 91 93 93 April-20 230 6,777 7,007 91 93 93 May-20 233 6,983 7,216 91 93 93 June-20 238 7,065 7,303 92 93 93 July-20 246 7,177 7,422 92 94 94 August-20 252 7,319 7,570 92 94 94 September-20 257 7,454 7,710 92 94 94 October-20 261 7,644 7,905 92 94 94 November-20 265 7,830 8,095 92 94 94 December-20 267 7,978 8,245 92 94 94 January-21 269 8,156 8,425 92 95 94 February-21 269 8,327 8,596 93 95 95 March-21 271 8,481 8,752 93 95 95 Source: Universal Service Administration Company. Federal-State Joint Board on Universal Service 34 2021 Monitoring Report Table 2.7 – Lifeline De-Enrollments or Scheduled De-Enrollments Recertification by State in 20201 (in Thousands) As a result of ETC As a result of attempt by State Administrator, ETC State Total recertification attempt2 Access to Eligibility Data, or USAC3 Alabama 0 0 0 Alaska 0 0 0 American Samoa 0 0 0 Arizona 0 0 0 Arkansas 0 0 0 California 0 90 90 Colorado 0 0 0 Connecticut 0 0 0 Delaware 0 0 0 District of Columbia 0 0 0 Florida 1 0 1 Georgia 0 0 0 Guam 0 0 0 Hawaii 0 0 0 Idaho 0 0 0 Illinois 0 0 0 Indiana 0 0 0 Iowa 0 0 0 Kansas 0 0 0 Kentucky 0 0 0 Louisiana 0 0 0 Maine 0 0 0 Maryland 0 0 0 Massachusetts 0 0 0 Michigan 0 0 0 Minnesota 1 0 1 Mississippi 0 0 0 Missouri 0 0 0 Montana 0 0 0 Nebraska 0 0 0 Nevada 0 0 0 New Hampshire 0 0 0 New Jersey 0 0 0 New Mexico 0 0 0 New York 0 0 0 North Carolina 0 0 0 North Dakota 0 0 0 Northern Mariana Islands 0 0 0 Ohio 1 1 2 Oklahoma 0 0 0 Oregon 0 0 0 Pennsylvania 0 0 0 Puerto Rico 0 0 0 Rhode Island 0 0 0 South Carolina 0 0 0 South Dakota 0 0 0 Tennessee 0 0 0 Texas 0 16 16 Utah 0 0 0 Vermont 0 0 0 Virgin Islands 0 0 0 Virginia 0 0 0 Washington 0 0 0 West Virginia 0 0 0 Wisconsin 0 0 0 Wyoming 0 0 0 Total 4 109 113 1 Lifeline recertification and reverification requirements were temporarily waived beginning in March of 2020 due to the coronavirus COVID-19 pandemic. WC Docket No. 11-42, Order, FCC 20-285 (2020). 2 Section G of the 2020 FCC Form 555. 3 Section K of the 2020 FCC Form 555. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 35 2021 Monitoring Report Table 2.8 – Low-Income Subscribers by State in 2020 by Facilities Type of Carrier (in Thousands) Non-Tribal Tribal All State Facilities-Based Facilities-Based Facilities-Based Total Total Total No Yes No Yes No Yes Alabama 29 50 80 # # # 30 50 80 Alaska 0 # # 0 20 20 0 20 20 American Samoa 0 1 1 0 0 0 0 1 1 Arizona 84 39 124 # 41 41 85 80 165 Arkansas 55 21 75 0 # # 55 21 75 California 926 622 1,548 # # # 926 623 1,549 Colorado 36 22 58 0 0 0 36 22 58 Connecticut 24 46 70 0 0 0 24 46 70 Delaware 4 9 13 0 0 0 4 9 13 District of Columbia 7 11 17 0 0 0 7 11 17 Florida 140 234 374 0 0 0 140 234 374 Georgia 187 71 257 0 0 0 187 71 257 Guam 0 1 1 0 0 0 0 1 1 Hawaii 6 1 7 # 0 # 6 1 7 Idaho 7 2 9 # # # 7 2 9 Illinois 117 81 198 0 0 0 117 81 198 Indiana 84 38 123 0 0 0 84 38 123 Iowa 36 11 47 # # # 36 11 47 Kansas 31 6 36 # # # 31 6 36 Kentucky 95 29 124 0 0 0 95 29 124 Louisiana 146 34 180 0 0 0 146 34 180 Maine 13 5 19 0 # # 13 5 19 Maryland 87 46 133 0 0 0 87 46 133 Massachusetts 37 70 107 0 0 0 37 70 107 Michigan 134 101 235 # # # 134 101 235 Minnesota 47 17 64 1 2 3 48 19 67 Mississippi 23 38 61 1 0 1 23 38 61 Missouri 58 27 85 0 # # 58 27 85 Montana 0 1 1 0 1 1 0 2 2 Nebraska 1 3 4 0 # # 1 4 4 Nevada 46 19 65 # # # 46 20 66 New Hampshire 4 2 6 0 0 0 4 2 6 New Jersey 42 91 133 0 0 0 42 91 133 New Mexico 9 35 44 0 29 29 9 64 73 New York 180 322 502 0 # # 180 322 502 North Carolina 61 73 134 0 # # 61 73 134 North Dakota # 2 3 1 1 2 1 4 5 Northern Mariana Islands 0 2 2 0 0 0 0 2 2 Ohio 210 116 326 0 0 0 210 116 326 Oklahoma 33 2 35 123 10 133 156 11 168 Oregon 5 45 50 # # # 5 45 50 Pennsylvania 199 103 302 0 0 0 199 103 302 Puerto Rico 394 68 463 0 0 0 394 68 463 Rhode Island 8 13 20 0 0 0 8 13 20 South Carolina 70 36 106 0 # # 70 36 106 South Dakota # 3 3 0 3 3 # 6 6 Tennessee 63 49 112 0 0 0 63 49 112 Texas 207 169 376 # # # 207 169 376 Utah 13 4 17 # 1 1 13 6 19 Vermont 6 3 9 0 0 0 6 3 9 Virgin Islands # 1 1 0 0 0 # 1 1 Virginia 48 54 102 0 0 0 48 54 102 Washington 84 29 112 5 1 6 88 30 118 West Virginia 50 8 58 0 0 0 50 8 58 Wisconsin 99 18 117 # 1 2 99 19 119 Wyoming # # # # # # # # # Total 4,243 2,905 7,148 131 112 243 4,374 3,017 7,391 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. Notes: # indicates subscriber counts greater than 0 and less than 500. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 36 2021 Monitoring Report Table 2.9 – Lifeline Subscribers by Type of Service: 2020 Subscribers (in Thousands) Percentage Broadband Broadband State Voice Bundle Total Voice Bundle Only Only Alabama 10 47 23 80 13 % 59 % 29 % Alaska 3 # 18 20 13 1 87 American Samoa 1 0 # 1 58 0 42 Arizona 6 95 64 165 4 57 39 Arkansas 3 38 34 75 5 51 45 California 229 15 1,304 1,549 15 1 84 Colorado 5 48 5 58 8 83 9 Connecticut 7 43 20 70 10 62 28 Delaware 1 9 3 13 10 65 25 District of Columbia 1 10 6 17 8 59 32 Florida 38 218 118 374 10 58 32 Georgia 14 176 67 257 5 69 26 Guam 1 # # 1 99 1 0 Hawaii 1 5 1 7 16 69 14 Idaho 1 7 1 9 12 80 8 Illinois 13 93 93 198 6 47 47 Indiana 7 94 22 123 6 76 18 Iowa 5 28 14 47 11 60 29 Kansas 3 25 8 36 8 69 23 Kentucky 10 66 48 124 8 53 39 Louisiana 7 96 77 180 4 54 43 Maine 5 8 6 19 29 40 31 Maryland 6 83 45 133 5 62 34 Massachusetts 21 56 29 107 20 53 27 Michigan 18 165 52 235 8 70 22 Minnesota 11 45 10 67 17 67 15 Mississippi 4 38 19 61 7 62 31 Missouri 5 68 13 85 5 79 15 Montana 1 # 1 2 57 15 29 Nebraska 3 1 1 4 64 18 18 Nevada 3 49 13 66 5 75 20 New Hampshire 1 3 2 6 16 47 37 New Jersey 25 71 37 133 19 53 28 New Mexico 8 25 40 73 11 34 55 New York 111 237 154 502 22 47 31 North Carolina 20 64 51 134 15 47 38 North Dakota 2 1 1 5 49 30 21 Northern Mariana Islands # # 2 2 9 1 90 Ohio 21 239 66 326 6 73 20 Oklahoma 19 78 71 168 11 46 42 Oregon 11 33 6 50 23 65 12 Pennsylvania 27 193 82 302 9 64 27 Puerto Rico 14 107 342 463 3 23 74 Rhode Island 2 16 3 20 11 76 14 South Carolina 10 74 22 106 9 70 21 South Dakota 3 2 1 6 55 32 13 Tennessee 16 45 51 112 14 41 45 Texas 32 179 164 376 9 48 44 Utah 2 13 4 19 9 67 23 Vermont 2 6 # 9 28 68 4 Virgin Islands # # # 1 26 1 73 Virginia 13 52 36 102 13 51 36 Washington 12 81 25 118 10 68 22 West Virginia 3 35 20 58 6 60 34 Wisconsin 11 78 30 119 9 66 25 Wyoming # # # # 66 2 32 Total 812 3,255 3,324 7,391 11 % 44 % 45 % 1 # indicates subscriber counts greater than 0s and less than 500. 2 Voice: Subscriber is provided a service that meets only the voice minimum service standards (mobile voice service with at least 1,000 minutes per month, or fixed voice service with any number of minutes) 3 Broadband Only: Subscriber is provided a service that meets only the broadband minimum service standards (3G speed and 3GB usage allowance for wireless providers; 20/3 Mbps speed and 1,024 GB usage allowance for wireline providers.) 4 Bundle: Subscriber is provided a service that meets both the voice and broadband minimum service standards. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 37 2021 Monitoring Report Section 3 – Connect America Fund (High Cost) Program Federal universal service 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. In 2011, the Commission adopted the USF/ICC Transformation Order, which comprehensively reformed and modernized the high-cost program to support networks capable of providing both voice and broadband services.3 Among other actions taken in the USF/ICC Transformation Order, the Commission adopted a framework, known as the Connect America Fund (CAF).4 For price-cap areas (those areas of the United States and its territories historically served by larger incumbent local exchange carriers (ILECs)), there are several CAF programs: CAF Phase I (completed); CAF Phase II (model-based support), CAF Intercarrier Compensation (CAF ICC), the Rural Broadband Experiments, frozen support for Alaska price cap carriers, Bringing Puerto Rico Together (Uniendo a Puerto Rico) Fund and the Connect USVI Fund, and the CAF Phase II auction. In January 2020, the Commission established the new Rural Digital Opportunity Fund as a successor to the CAF Phase II program.5 The Rural Digital Opportunity Fund auction commenced on October 29, 2020, and closed on November 25, 2020. For rate-of-return areas (typically the more rural parts of the United States), the Commission established two paths for providers to receive high-cost support for building, supporting and maintaining voice and broadband networks — 1) model-based support as determined by the Alternative Connect America Cost Model (A-CAM or A-CAM 2) legacy cost-based mechanisms as reformed to allow support for standalone broadband connections.6 The Commission also created an Alaska Plan to fund voice and broadband services for rate-of-return carriers serving Alaska, due to their unique challenges.7 3 USF/ICC Transformation Order. 4 See Connect America Fund (CAF) https://www.fcc.gov/general/connect-america-fund-caf. 5 See generally Rural Digital Opportunity Fund; Connect America Fund, Order, 35 FCC Rcd 686 (2020) (Rural Digital Opportunity Fund Order). 6 See Connect America Fund; ETC Annual Reports and Certifications; Establishing Just and Reasonable Rates for Local Exchange Carriers; Developing a Unified Intercarrier Compensation Regime; WC Docket Nos. 10-90, 14-58, and 07-135, CC Docket No. 01-92; Report and Order, Further Notice of Proposed Rulemaking, and Order on Reconsideration, FCC 18-176 (rel. Dec. 12, 2018). 7 Connect America Fund et al., Report and Order and Further Notice of Proposed Rulemaking, 31 FCC Rcd 10139, 10142, para. 6 (2016) (Alaska Plan Order). Federal-State Joint Board on Universal Service 38 2021 Monitoring Report As in the 2020 Report, all support dollar values in these tables reflect claims8 as opposed to disbursements.9 These claims are subject to true-ups. True-ups are reflected in the relevant support year, not in the year made. 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, 2021. 8 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. 9 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. Because carriers chose ACAM II in the middle of 2019 but then received ACAM II support for the whole calendar year, these carriers’ disbursement data for the first part of the year shows legacy support payments (i.e., HCLS, BLS and SVS), which were then offset against their ACAM payments for the same portion of the year in their August ACAM prior period adjustments. Federal-State Joint Board on Universal Service 39 2021 Monitoring Report Table 3.1 – High-Cost Support Fund Claim History (in Millions of Dollars) A-CAM / AK Legacy Rate-of-Return Price Cap Competitive Year ILEC Total Total Support Plan Carriers Carriers Carriers Carriers ETC Total 2009 $ 0 $ 1,850 $ 1,850 $ 1,183 $ 3,033 $ 1,299 $ 4,332 2010 0 1,928 1,928 1,108 3,036 1,242 4,278 2011 0 1,957 1,957 1,029 2,986 1,156 4,142 2012 0 1,966 1,966 1,197 3,163 967 4,130 2013 0 2,019 2,019 1,341 3,360 782 4,142 2014 0 2,047 2,047 1,115 3,162 608 3,769 2015 0 2,059 2,059 1,849 3,908 615 4,524 2016 0 2,071 2,071 1,848 3,919 674 4,593 2017 795 1,614 2,409 1,793 4,201 645 4,846 2018 784 1,678 2,462 1,736 4,198 601 4,800 2019 1,437 1,265 2,702 1,658 4,360 620 4,980 2020 1,419 1,312 2,731 1,615 4,346 703 5,049 2021* 1,400 1,392 2,792 1,590 4,382 689 5,071 Notes: Details may not appear to add up to totals due to rounding. Data for 2012 - 2020 were updated to account for true-ups. A-CAM is an abbreviation for Alternative Connect America Model. ILEC is an abbreviation for Incumbent Local Exchange Carrier. Competitive ETC is an abbreviation for Competitive Eligible Telecommunication Carrier. Source: Universal Service Administrative Company filings to the FCC with prior-period adjustments through July 2021. * FCC Staff Estimate. Federal-State Joint Board on Universal Service 40 2021 Monitoring Report Table 3.2 – High-Cost Support Fund Claim History – Rate of Return (in Millions of Dollars) Alternative Safety Net Local CAF-ICC from CAF-ICC from Alternative High-Cost Safety Valve Broadband Connect Alaska Total Year Additive Switching A-CAM / AK Legacy Connect Loop Support Support Loop Support1 America Model Plan Support Support Support Plan Carriers2 Carriers2 America Model II 2009 $ 798 $ 29 $ 5 $ 239 $ 0 $ 0 $ 780 $ 0 $ 0 $ 0 $ 1,850 2010 817 49 6 226 0 0 830 0 0 0 1,928 2011 806 65 6 218 0 0 862 0 0 0 1,957 2012 791 48 6 110 0 169 842 0 0 0 1,966 2013 767 31 6 0 0 344 870 0 0 0 2,019 2014 746 28 5 0 0 359 909 0 0 0 2,047 2015 716 20 5 0 0 377 941 0 0 0 2,059 2016 691 12 5 0 0 395 968 0 0 0 2,071 2017 556 4 5 0 149 244 806 591 0 54 2,409 2018 576 0 5 0 146 244 853 584 0 54 2,462 2019 411 0 2 0 218 171 682 643 521 54 2,702 2020 387 0 1 0 214 171 753 637 514 54 2,731 2021* 369 0 1 0 205 165 855 631 511 54 2,792 1 Interstate Common Line Support was expanded to include standalone broadband in January 2017 and became Connect America Fund Broadband Loop Support (CAF BLS). 2 Intercarrier Compensation was divided into A-CAM/AK and Legacy categories. Note: Details may not appear to add up to totals due to rounding. Data for 2012 - 2020 were updated to account for true-ups. Source: Universal Service Administrative Company filings to the FCC with prior-period adjustments through July 2021. * FCC Staff Estimate. Federal-State Joint Board on Universal Service 41 2021 Monitoring Report Table 3.3 – High-Cost Support Fund Claim History – Price Cap (in Millions of Dollars) Interstate High-Cost Safety Net High-Cost Interstate Local Frozen Intercarrier Connect Incremental Common CAF II PR / USVI Total Year Loop Additive Model Access Switching High-Cost Compensatio America Support Line Auction Fund2 Support Support Support Support Support Support Support1 n Support Cost Model Support 2009 $ 209 $ 9 $ 169 $ 456 $ 50 $ 0 $ 0 $ 0 $ 0 $ 290 $ 0 $ 0 $ 1,183 2010 145 11 156 455 61 0 0 0 0 280 0 0 1,108 2011 100 11 145 441 63 0 0 0 0 270 0 0 1,029 2012 0 0 0 0 0 1,037 44 0 112 3 0 0 1,197 2013 0 0 0 0 0 1,034 87 0 220 0 0 0 1,341 2014 0 0 0 0 0 1,035 69 0 11 0 0 0 1,115 2015 0 0 0 0 0 641 49 1,159 0 0 0 0 1,849 2016 0 0 0 0 0 162 38 1,648 0 0 0 0 1,848 2017 0 0 0 0 0 173 30 1,590 0 0 0 0 1,793 2018 0 0 0 0 0 170 22 1,544 0 0 0 0 1,736 2019 0 0 0 0 0 122 15 1,518 0 0 3 0 1,658 2020 0 0 0 0 0 81 12 1,518 0 0 5 0 1,615 2021* 0 0 0 0 0 56 12 1,514 0 0 5 3 1,590 1 2017 Hurricane support for Puerto Rico and Virgin Islands is included in Frozen High-Cost Support. 2 This column includes the Bringing Puerto Rico Together (Uniendo a Puerto Rico) Fund and the Connect USVI Fund. Note: Details may not appear to add up to totals due to rounding. Data for 2012-2020 were updated to account for true-ups. Source: Universal Service Administrative Company filings to the FCC with prior-period adjustments through July 2021. * FCC Staff Estimate. Federal-State Joint Board on Universal Service 42 2021 Monitoring Report Table 3.4 – High-Cost Support Fund Claim History – Competitive Eligible Telecommunications Carriers (in Millions of Dollars) Interstate High-Cost Safety Net Safety Interstate Local Frozen Remote Mobility Rural PR / High-Cost Common Alaska CAF II Year Loop Additive Valve Access Switching High-Cost Alaska Fund Phase I Broadband USVI Total Support Model Line Plan Auction Support Support Support Support Support Support1 Support Support Experiments Fund2 Support 2009 $ 391 $ 14 $ 0 $ 159 $ 110 $ 100 $ 0 $ 0 $ 0 $ 0 $ 524 $ 0 $ 0 $ 0 $ 1,299 2010 358 17 1 155 94 95 0 0 0 0 521 0 0 0 1,242 2011 307 21 2 146 81 90 0 0 0 0 508 0 0 0 1,156 2012 0 0 0 0 0 0 889 78 0 0 0 0 0 0 967 2013 0 0 0 0 0 0 629 79 74 0 0 0 0 0 782 2014 0 0 0 0 0 0 525 79 4 0 0 0 0 0 608 2015 0 0 0 0 0 0 513 78 16 8 0 0 0 0 615 2016 0 0 0 0 0 0 508 78 85 3 0 0 0 0 674 2017 0 0 0 0 0 0 537 0 31 3 0 74 0 0 645 2018 0 0 0 0 0 0 521 0 3 3 0 74 0 0 601 2019 0 0 0 0 0 0 471 0 7 3 0 74 65 0 620 2020 0 0 0 0 0 0 415 0 8 3 0 74 147 56 703 2021* 0 0 0 0 0 0 370 0 0 3 0 74 148 95 689 1 2017 Hurricane support for Puerto Rico and Virgin Islands is included in Frozen High-Cost Support. 2 This column includes the Bringing Puerto Rico Together (Uniendo a Puerto Rico) Fund and the Connect USVI Fund. Note: Details may not appear to add up to totals due to rounding. Data for 2012-2020 were updated to account for true-ups. Source: Universal Service Administrative Company filings to the FCC with prior-period adjustments through July 2021. * FCC Staff Estimate. Federal-State Joint Board on Universal Service 43 2021 Monitoring Report Table 3.5 – High-Cost Support Fund Claims – States: 2020 (in Thousands of Dollars) Rate-of-Return ILEC CETC Total CETC State Price-Cap Carriers Carriers Total Total Support Share Alabama $ 42,326 $ 43,961 $ 86,287 $ 5,477 $ 91,764 6 % Alaska 74,914 19,694 94,608 74,027 168,635 44 American Samoa 1,816 0 1,816 1,619 3,435 47 Arizona 49,544 23,370 72,914 8,095 81,009 10 Arkansas 57,139 54,276 111,415 8,153 119,567 7 California 46,468 98,335 144,803 14,915 159,718 9 Colorado 29,595 26,680 56,275 7,596 63,872 12 Connecticut 0 435 435 0 435 0 Delaware 0 164 164 119 282 42 Florida 8,078 29,853 37,931 3,619 41,550 9 Georgia 68,760 50,859 119,618 867 120,485 1 Guam 6,780 0 6,780 5,212 11,992 43 Hawaii 0 6,240 6,240 0 6,240 0 Idaho 39,779 11,505 51,284 4,641 55,924 8 Illinois 64,543 50,569 115,112 18,293 133,405 14 Indiana 71,686 51,128 122,815 2,823 125,638 2 Iowa 139,704 53,987 193,691 32,324 226,015 14 Kansas 112,870 35,638 148,508 25,061 173,569 14 Kentucky 85,057 54,677 139,734 17,194 156,928 11 Louisiana 20,823 37,379 58,202 24,637 82,838 30 Maine 14,750 13,564 28,314 7,132 35,446 20 Maryland 1,271 1,641 2,912 716 3,628 20 Massachusetts 769 901 1,671 1,115 2,786 40 Michigan 51,625 60,513 112,137 7,810 119,947 7 Minnesota 154,429 87,843 242,272 5,558 247,830 2 Mississippi 25,397 51,617 77,014 87,505 164,520 53 Missouri 85,245 91,570 176,814 35,368 212,182 17 Montana 120,187 16,310 136,497 5,180 141,678 4 Nebraska 84,680 23,216 107,896 14,944 122,840 12 Nevada 14,827 2,452 17,279 4,171 21,450 19 New Hampshire 7,269 4,377 11,646 131 11,777 1 New Jersey 577 613 1,190 0 1,190 0 New Mexico 66,842 15,940 82,783 5,081 87,864 6 New York 25,966 26,242 52,208 5,926 58,134 10 North Carolina 55,106 19,055 74,161 1,857 76,019 2 North Dakota 145,777 5,657 151,434 25,842 177,275 15 Northern Mariana Islands 0 2,627 2,627 581 3,209 18 Ohio 24,197 59,148 83,345 1,313 84,658 2 Oklahoma 117,832 8,141 125,973 37,228 163,201 23 Oregon 52,110 21,657 73,767 12,008 85,775 14 Pennsylvania 18,125 35,653 53,779 4,622 58,401 8 Puerto Rico 0 36,054 36,054 83,782 119,835 70 Rhode Island 0 67 67 0 67 0 South Carolina 99,804 16,287 116,090 1,602 117,692 1 South Dakota 115,075 9,117 124,192 2,091 126,284 2 Tennessee 69,875 29,927 99,802 1,439 101,241 1 Texas 186,303 93,132 279,435 17,314 296,749 6 Utah 38,866 4,442 43,308 721 44,029 2 Vermont 13,893 8,789 22,682 73 22,755 0 Virgin Islands 0 16,361 16,361 977 17,338 6 Virginia 35,207 32,883 68,090 11,949 80,039 15 Washington 31,372 35,971 67,343 22,627 89,970 25 West Virginia 12,470 38,068 50,538 8,805 59,344 15 Wisconsin 110,598 95,439 206,037 19,443 225,480 9 Wyoming 30,635 1,213 31,848 13,318 45,166 29 United States $2,730,960 $1,615,237 $4,346,197 $702,903 $5,049,100 14 % 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 July 2021. Federal-State Joint Board on Universal Service 44 2021 Monitoring Report Table 3.6 – Annual High-Cost Fund Support Claims – Affiliates: 2018 – 2020 (in Millions of Dollars) 1 This column refers to “affiliate name” rather than “holding company” 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. 2 In the USF/ICC Transformation Order, the Commission eliminated the rule providing identical support to competitive ETCs, 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 was not yet operational. See id. at 17832, para. 519. The Commission established the 5G Fund as the next phase of supporting mobile broadband in harder to serve areas. See Establishing a 5G Fund for Rural America, Report and Order, 35 FCC Rcd 12174 (2020). 3 Telapex, Inc. owns C Spire Wireless. Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 45 2021 Monitoring Report Table 3.7 – High-Cost Support Fund Claims – Affiliates: 2020 (in Millions of Dollars) Rate-of-Return Price-Cap Competive ETC Competitive Rank Affiliate's Name1 ILEC Support Total Support Carriers Carriers Support ETC's Share 2 1 AT&T Inc. $ 0 $ 428 $ 428 $ 148 $ 575 26 % 2 Lumen Technologies, Inc. 0 504 504 0 504 0 3 Frontier Communications Corporation 0 322 322 0 322 0 4 Telephone and Data Systems, Inc. 114 0 114 98 211 46 5 Windstream Holdings, Inc. 0 175 175 0 175 0 6 América Móvil 0 36 36 26 62 42 7 GCI Holdings LLC 6 0 6 55 61 91 8 Consolidated Communications, Inc. 0 59 59 0 59 0 9 Telapex, Inc. 9 0 9 46 55 84 10 Verizon Communications Inc. 0 29 29 22 51 43 11 Golden West Telecommunications Cooperative, Inc. 37 0 37 0 37 0 12 LICT Corporation 35 0 35 0 35 0 13 Pioneer Telephone Cooperative (OK) 26 0 26 9 35 25 14 T-Mobile USA, Inc. 0 0 0 33 33 100 15 Hargray Communications Group, Inc. 30 0 30 0 30 0 16 Rural Telephone Service/Golden Belt 18 0 18 11 30 38 17 Triangle Telephone Cooperative Assn., Inc. 29 0 29 0 29 0 18 AMG Technology Investment Group LLC 0 0 0 28 28 100 19 Arvig Enterprises, Inc. 28 0 28 0 28 0 20 3 Rivers Telephone Cooperative, Inc. 28 0 28 0 28 0 21 ATN International, Inc. 0 16 16 10 27 38 22 Great Plains Communications, Inc. 24 0 24 0 24 0 23 Range Telephone Cooperative, Inc. 23 0 23 0 23 0 24 ENMR Telephone Cooperative, Inc. 22 0 22 0 22 0 25 Wisper ISP Inc. 0 0 0 22 22 100 1 This column refers to “affiliate name” rather than “holding company” 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. 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 July 2021. Federal-State Joint Board on Universal Service 46 2021 Monitoring Report 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 that provide 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 federally approved alternative mechanism, and whether the school or library is located in an urban or rural area. The discounts range from 20% to 90% of the costs of eligible services. E-Rate program funding is based on demand up to an annual Commission-established cap, which is $4.277 billion for funding year 2021 and is adjusted annually for inflation. The E-Rate program is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (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 verifies that the applicants and service providers comply with the E-Rate rules and procedures established by the FCC. Additional information about the E-Rate program can be found on the Commission’s website at https://www.fcc.gov/general/e-rate-schools-libraries-usf-program and on USAC’s website at https://www.usac.org/e-rate//. Federal-State Joint Board on Universal Service 47 2021 Monitoring Report Table 4.1 – Schools and Libraries Funding Commitments and Disbursements by Applicant Type and Year (in Thousands of Dollars) Funding Commitments Funding Disbursements 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 $1,698,767 $65,987 $110,684 $1,288,196 $0 $233,900 $1,398,979 $49,883 $83,265 $1,069,738 $0 $196,092 1999 2,147,065 66,163 180,734 1,597,596 - 302,572 1,649,997 47,457 140,129 1,265,888 - 196,523 2000 2,078,426 65,879 110,783 1,691,954 - 209,810 1,646,940 43,544 88,488 1,384,086 - 130,821 2001 2,169,951 57,819 164,445 1,733,342 - 214,345 1,676,766 42,052 117,472 1,381,576 - 135,666 2002 2,107,116 62,925 164,100 1,630,156 - 249,935 1,594,197 42,697 106,179 1,283,148 - 162,174 2003 2,518,579 63,302 199,222 1,997,834 - 258,220 1,937,512 44,467 136,104 1,584,466 - 172,475 2004 2,029,610 54,291 158,604 1,566,959 - 249,756 1,535,242 39,775 107,117 1,208,830 - 179,520 2005 2,007,865 54,498 152,493 1,586,166 - 214,708 1,623,477 48,598 111,789 1,285,250 - 177,840 2006 1,948,787 59,711 129,351 1,499,379 - 260,346 1,566,737 46,138 96,167 1,220,845 - 203,587 2007 2,356,517 60,628 174,679 1,877,629 - 243,582 1,952,986 47,964 135,868 1,560,887 - 208,267 2008 2,373,269 75,771 150,094 1,888,388 - 259,017 1,926,495 58,090 114,132 1,532,837 - 221,436 2009 2,806,722 84,697 195,343 2,261,858 - 264,825 2,332,977 69,182 154,079 1,883,228 - 226,488 2010 2,997,610 91,214 211,042 2,411,399 - 283,955 2,449,739 71,872 157,065 1,980,685 - 240,117 2011 2,663,492 94,687 217,866 2,037,230 - 313,708 2,151,043 73,114 162,122 1,666,878 - 248,930 2012 2,964,093 96,085 287,705 2,279,865 12,130 288,308 2,372,005 77,657 206,242 1,841,530 8,790 237,787 2013 2,199,796 91,579 134,919 1,668,201 20,209 284,887 1,752,978 75,371 97,619 1,341,854 10,809 227,325 2014 2,344,859 93,490 157,871 1,773,418 38,370 281,709 1,872,754 78,934 115,037 1,428,536 27,445 222,802 2015 3,214,366 108,287 166,780 2,593,242 24,848 321,210 2,790,775 90,786 132,040 2,277,559 23,751 266,639 2016 2,769,363 98,528 119,901 2,183,594 - 367,340 2,346,784 83,580 95,837 1,884,836 - 282,530 2017 2,367,553 86,332 112,385 1,830,904 - 337,932 1,985,927 73,399 88,877 1,563,338 - 260,312 2018 2,292,263 81,565 104,558 1,658,215 - 447,925 1,971,532 64,855 82,507 1,454,593 - 369,577 2019 2,367,937 87,156 110,912 1,852,526 - 317,344 1,831,908 69,463 83,397 1,458,352 - 220,697 2020 2,358,325 91,139 120,938 1,849,648 - 296,600 1,064,788 41,041 63,661 887,418 - 72,668 Federal-State Joint Board on Universal Service 48 2021 Monitoring Report 1 Starting in funding year 2016, Libraries include both Library and Library System applicants. 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 disbursements are included within their primary applicant type column and are not included in the Statewide Contract column. Notes: Activity through June 30, 2021. Funding year 2021 commitment and disbursement information have not been displayed because only a small fraction of commitments (and no disbursements) have been issued for this funding year. A substantial amount of commitments and disbursements for funding year 2021 will be made. Also, because of the appeals process, certain funding commitments and disbursements may be issued 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 as part of other post- commitment reviews and audits. Funds by service type can be found in the Supplementary Material file "SL Funds - by Service Type, State, and Funding Year" available at http://www.fcc.gov/encyclopedia/federal-state-joint-board- monitoring-reports. Source: Universal Service Administrative Company Federal-State Joint Board on Universal Service 49 2021 Monitoring Report Table 4.2 – Schools and Libraries Funding Commitments and Disbursements from Program Inception through June 30, 2021 by State and Applicant Type (in Thousands of Dollars) 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 $16,577 $13,018 $21,930 $16,100 $740,173 $625,723 $86 $1 $165,638 $115,933 $944,404 $770,775 Alaska 14,179 10,955 6,335 4,987 1,059,909 831,377 - - 36,830 27,715 1,117,253 875,035 American Samoa - - - - 7,985 5,073 - - 38,344 31,121 46,330 36,194 Arizona 32,113 31,591 185,826 125,802 1,208,225 898,839 - - 149,225 59,205 1,575,389 1,115,437 Arkansas 11,731 9,559 9,548 7,876 353,472 268,526 25,836 17,082 225,256 129,125 625,843 432,167 California 149,514 103,547 359,309 249,010 7,144,141 5,395,593 106 51 421,493 280,395 8,074,563 6,028,597 Colorado 20,256 14,976 26,296 19,126 492,021 389,613 - - 37,085 25,599 575,659 449,314 Connecticut 9,125 6,321 56,497 39,922 367,697 289,771 - - 119,373 100,176 552,692 436,190 Delaware 1,387 1,185 4,307 3,107 28,444 24,839 2,246 2,246 36,496 24,833 72,880 56,210 District of Columbia 13,424 9,618 34,238 21,847 203,902 138,782 - - 18,847 8,599 270,410 178,846 Florida 76,674 59,069 204,493 147,267 1,599,838 1,309,791 - - 133,531 106,004 2,014,536 1,622,131 Georgia 113,377 94,919 42,860 34,262 1,436,910 1,195,626 4,411 4,190 202,671 178,943 1,800,229 1,507,940 Guam 188 77 304 140 31,048 22,513 - - - - 31,541 22,730 Hawaii 6,046 1,594 62,329 32,065 78,052 48,547 3,128 2,381 1,223 834 150,778 85,421 Idaho 7,406 5,915 11,414 7,535 170,158 133,293 - - 1,510 13,956 190,488 160,699 Illinois 51,384 38,325 160,119 119,075 2,103,916 1,614,936 - - 84,513 59,252 2,399,932 1,831,588 Indiana 92,061 69,144 48,726 35,395 723,341 570,910 - - 97,995 45,592 962,124 721,042 Iowa 5,337 3,609 18,330 13,462 235,714 179,581 - - 90,536 77,770 349,917 274,422 Kansas 15,758 12,943 12,249 8,997 388,366 307,288 - - 24,673 19,876 441,047 349,103 Kentucky 27,787 21,645 9,281 6,428 691,295 528,772 - - 163,614 122,777 891,976 679,622 Louisiana 86,892 71,518 71,212 51,418 959,072 786,031 - - 35,193 26,259 1,152,369 935,225 Maine 1,686 1,246 16,667 12,250 75,701 54,907 - - 80,347 72,238 174,401 140,641 Maryland 20,426 15,317 35,125 23,845 477,533 356,905 - - 36,165 26,432 569,250 422,499 Massachusetts 43,458 30,575 81,825 60,098 604,123 483,153 11 - 60,190 33,625 789,606 607,452 Michigan 52,802 40,807 79,222 53,450 994,622 755,248 - - 204,993 160,745 1,331,639 1,010,250 Minnesota 35,687 29,415 58,371 39,426 397,958 308,744 - - 164,196 143,292 656,212 520,878 Mississippi 64,393 34,562 21,502 15,585 572,211 441,750 144 105 120,974 88,223 779,225 580,225 Missouri 27,959 23,570 53,443 39,557 654,546 516,048 - - 231,879 171,822 967,827 750,997 Montana 1,820 1,275 5,933 4,252 106,249 86,592 - - 1,161 925 115,163 93,043 Nebraska 5,492 4,225 10,184 8,020 166,885 144,463 - - 40,422 35,323 222,983 192,031 Nevada 9,423 5,597 11,599 7,758 159,726 114,145 - - 349 343 181,097 127,843 New Hampshire 395 220 9,159 6,426 58,811 42,716 - - 2,259 1,752 70,624 51,114 New Jersey 38,732 27,771 160,597 113,132 1,191,071 884,660 - - 22,323 15,660 1,412,723 1,041,223 New Mexico 9,188 5,359 91,727 63,945 647,204 510,419 - - 189,602 100,438 937,721 680,162 New York 232,033 167,222 663,127 487,282 2,913,291 2,305,267 - - 703,065 525,910 4,511,516 3,485,681 North Carolina 41,135 33,810 57,081 43,906 1,288,610 1,081,202 23,594 22,755 126,171 92,138 1,536,591 1,273,811 North Dakota 206 157 10,325 7,824 35,204 26,786 - - 51,231 42,226 96,965 76,992 Northern Mariana Isl. 282 205 258 201 20,956 17,392 - - - - 21,496 17,798 Ohio 73,550 59,099 181,955 133,082 1,428,773 1,139,539 - - 102,814 85,482 1,787,092 1,417,202 Oklahoma 53,207 43,890 52,968 38,006 1,081,306 863,258 - - 14,715 5,876 1,202,196 951,030 Oregon 7,988 5,624 14,124 10,247 324,851 266,251 - - 54,925 35,345 401,888 317,467 Pennsylvania 57,454 47,325 203,805 140,142 1,239,216 1,032,817 - - 219,438 185,484 1,719,913 1,405,768 Puerto Rico 97,838 57,432 122,579 85,585 322,047 256,083 - - 120,210 61,646 662,675 460,746 Rhode Island 2,363 1,988 11,324 8,363 89,520 69,931 19 19 53,742 50,471 156,968 130,771 South Carolina 10,499 7,871 29,932 19,663 592,938 465,326 - - 359,678 309,555 993,047 802,415 South Dakota 674 355 24,347 18,141 56,742 43,041 2,745 2,553 47,822 33,932 132,331 98,022 Tennessee 25,388 18,425 22,979 17,861 1,183,460 860,784 - - 244,002 201,519 1,475,829 1,098,589 Texas 69,893 48,010 204,026 155,237 4,965,532 3,949,367 - - 376,272 304,120 5,615,722 4,456,733 Utah 2,744 1,510 5,554 3,654 119,547 97,153 - - 338,084 204,630 465,928 306,947 Vermont 1,121 689 16,409 10,861 48,949 36,022 - - 2,824 2,205 69,303 49,778 Virgin Islands 553 298 15,319 11,675 10,665 9,412 3,429 3,044 66,300 59,266 96,266 83,695 Virginia 43,165 34,677 30,765 24,520 753,589 622,383 - - 16,277 14,616 843,796 696,196 Washington 45,714 34,752 22,918 17,324 572,296 434,650 78 78 113,561 86,182 754,567 572,987 West Virginia 4,971 3,864 4,075 2,383 250,314 187,062 19,735 9,892 78,179 60,173 357,273 263,375 Wisconsin 17,217 12,791 62,846 43,931 496,546 391,918 - - 207,063 161,484 783,672 610,123 Wyoming 666 458 5,086 3,741 34,293 25,543 9,990 6,395 43,718 33,231 93,753 69,368 Totals $1,851,338 $1,379,920 $3,742,758 $2,675,194 $43,958,968 $34,446,358 $95,557 $70,794 $6,578,997 $4,860,275 $56,227,618 $43,432,540 Notes: Unlike in Table 4.1, all commitments and disbursements have been shown in this table, including those in issued funding year 2021. Because of the appeals process, funding commitments and disbursements may be issued 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 occur. Source: Universal Service Administrative Company Federal-State Joint Board on Universal Service 50 2021 Monitoring Report Section 5 – Rural Health Care The Rural Health Care (RHC) 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. RHC Program support is provided on a funding year basis. Funding years run from July 1 through June 30 of the subsequent year. Prior to FY 2017, the RHC Program cap was $400 million. Beginning in funding year (FY) 2017, funding for the RHC Program was capped at $571 million and annually adjusted for inflation. The cap for FY 2021 is $612 million. The RHC Program is administered by the Universal Service Fund (USF) administrator, the Universal Service Administrative Company (USAC), under the direction of the Commission. The RHC Program provides funding through two programs: The Telecommunications (Telecom) Program and the Healthcare Connect Fund Program. The Telecom Program, established in 1997, ensures that rural health care providers pay no more than their urban counterparts for telecommunications services. Specifically, an applicant’s program support is based on the difference between rural rates charged for telecommunications services in the rural areas in a state and the urban rates charged for similar telecommunications services in the same state. Eligible rural health care providers can obtain rates on telecommunications services for their rural health care facilities that are reasonably comparable to rates charged for similar services in corresponding urban areas, and the USF pays the difference between the urban rate and rural rate calculated under the Commission’s rules to the service provider– in effect, providing a discount to the rural health care provider in the amount of the “rural-urban differential.” The Healthcare Connect Fund Program, established in 2012, provides a flat 65% discount on an array of communications services to both individual rural health care provider and consortia, which can include non-rural health care providers (if the consortium has a majority of rural sites). These services include Internet access, dark fiber, business data, traditional DSL, and private carriage services. With the Healthcare Connect Fund Program, the Commission intended to promote the use of broadband services and facilitate the formation of healthcare provider consortia recognizing the increasing need for rural health care providers to have access to specialists who are often located in urban areas, as well as the advent of certain communications-based trends in healthcare delivery, such as the move towards electronic health records. Additional information about the RHC Program can be found on the Commission’s website at http://www.fcc.gov/encyclopedia/rural-health-care and on USAC’s website at http://www.usac.org/rhc/ Federal-State Joint Board on Universal Service 51 2021 Monitoring Report Table 5.1 – Rural Health Care Funding Commitments and Disbursements by Program and Year (in Thousands of Dollars) Telecommunications and Internet Access Program Pilot Healthcare Connect Totals Funding Funds Funds Funds Funds Funds Funds Funds Funds year Committed Disbursed Committed Disbursed Committed Disbursed Committed 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 71,439 350,702 281,372 0 0 423,531 352,810 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 117,236 116,947 0 0 0 0 117,236 116,947 2013 133,412 128,697 0 0 45,658 45,664 179,070 174,361 2014 137,167 135,346 0 0 88,170 88,930 225,337 224,276 2015 184,569 168,719 0 0 100,638 100,602 285,207 269,321 2016 197,463 184,400 0 0 137,325 124,864 334,788 309,264 2017 178,395 166,795 0 0 176,032 171,964 354,427 338,758 2018 142,566 134,973 0 0 166,071 161,590 308,637 296,563 2019 167,482 161,080 0 0 313,412 216,361 480,894 377,441 2020 138,631 32,048 0 0 265,097 16,980 403,728 49,028 Note: Activity through June 30, 2021. Funding Year 2021 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 2021 were made during that time. However, we anticipate that a substantial amount of commitments and disbursements for funding year 2021 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: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 52 2021 Monitoring Report Table 5.2 – Rural Health Care Funding Commitments and Disbursements from Program Inception Through June 30, 2021 by State Program (in Thousands of Dollars) Telecommunications and Internet Access Program Pilot Healthcare Connect Totals State Funds Funds Funds Funds Committed Funds Disbursed Committed Funds Disbursed Committed Funds Disbursed Committed Funds Disbursed Alabama $ 15,594 $ 12,299 $ 2,749 $ 2,746 $ 12,318 $ 8,364 $ 30,662 $ 23,410 Alaska 1,165,691 1,041,638 1,882 209 5,682 3,281 1,173,255 1,045,128 American Samoa 1,512 1,419 0 0 0 0 1,512 1,419 Arizona 50,567 47,800 7,506 5,637 18,168 12,404 76,242 65,841 Arkansas 24,591 22,528 4,218 4,132 59,025 38,501 87,834 65,160 California 54,521 51,751 22,903 11,136 114,954 87,396 192,378 150,282 Colorado 4,645 4,267 10,870 10,702 57,502 45,775 73,017 60,745 Connecticut 12 12 0 0 7,687 3,849 7,699 3,861 Delaware 1 1 0 0 2,100 1,225 2,101 1,225 District of Columbia 18 8 0 0 0 0 18 8 Florida 6,773 6,309 63 63 27,903 19,883 34,739 26,255 Georgia 46,673 43,791 2,233 2,166 31,417 23,426 80,322 69,383 Guam 767 762 89 83 583 457 1,439 1,302 Hawaii 2,435 2,376 4,653 2,100 3,877 1,917 10,965 6,393 Idaho 11,888 11,065 0 0 11,815 8,542 23,702 19,608 Illinois 21,088 20,304 21,071 21,070 39,647 26,205 81,805 67,579 Indiana 9,898 7,587 15,458 12,800 52,898 42,892 78,254 63,280 Iowa 7,475 7,143 17,368 17,291 25,108 19,524 49,951 43,959 Kansas 10,722 10,255 0 0 33,905 25,000 44,627 35,255 Kentucky 19,115 17,365 2,945 913 38,303 26,665 60,363 44,943 Louisiana 13,212 12,790 15,570 375 16,418 11,148 45,201 24,312 Maine 596 491 12,957 12,639 21,857 11,438 35,410 24,568 Maryland 334 217 0 0 2,817 1,963 3,152 2,180 Massachusetts 1,054 1,006 0 0 8,621 6,062 9,674 7,068 Michigan 23,461 22,185 19,449 19,230 38,672 28,455 81,582 69,870 Minnesota 35,143 33,372 5,714 5,297 21,000 16,445 61,857 55,114 Mississippi 44,100 41,027 0 0 18,606 12,563 62,705 53,590 Missouri 21,661 20,346 2,538 2,193 35,479 24,801 59,677 47,339 Montana 12,874 12,053 15,413 14,756 7,203 5,161 35,490 31,970 Nebraska 22,980 22,219 18,010 18,010 23,276 18,823 64,267 59,052 Nevada 3,103 3,069 0 0 3,804 2,353 6,907 5,423 New Hampshire 234 224 6,400 6,335 10,047 4,426 16,681 10,985 New Jersey 0 0 0 0 451 308 451 308 New Mexico 13,194 11,808 11,770 11,029 22,681 13,389 47,645 36,226 New York 2,683 2,405 15,492 14,681 39,634 30,340 57,809 47,426 North Carolina 9,039 8,498 12,169 12,115 57,767 36,706 78,975 57,318 North Dakota 15,182 14,610 912 835 11,727 8,630 27,822 24,075 Northern Mariana Islands 43 21 46 44 9 0 98 65 Ohio 10,500 9,838 27,209 26,478 34,685 25,499 72,394 61,816 Oklahoma 30,688 29,316 0 0 35,044 26,868 65,732 56,183 Oregon 3,978 3,792 18,130 17,129 31,839 25,223 53,946 46,143 Pennsylvania 1,759 1,584 6,793 6,035 31,584 23,303 40,135 30,922 Puerto Rico 0 0 0 0 115 114 115 114 Rhode Island 0 0 0 0 336 151 336 151 South Carolina 5,590 2,435 8,763 8,282 39,496 24,141 53,850 34,859 South Dakota 10,731 10,510 4,585 4,482 12,742 9,492 28,058 24,485 Tennessee 16,707 15,173 6,834 0 19,571 12,693 43,112 27,866 Texas 96,733 81,585 15,250 0 59,976 46,647 171,960 128,233 Utah 10,011 9,298 8,815 8,176 7,950 4,803 26,776 22,276 Vermont 950 904 6,078 6,047 6,661 4,206 13,689 11,156 Virgin Islands 852 846 0 0 109 24 962 869 Virginia 36,885 34,448 2,698 1,965 23,397 16,027 62,981 52,441 Washington 3,227 3,031 118 117 34,688 24,429 38,033 27,577 West Virginia 14,474 12,140 7,070 5,751 7,721 6,182 29,265 24,073 Wisconsin 79,203 76,836 2,312 2,303 59,339 45,643 140,855 124,782 Wyoming 3,417 3,262 797 784 4,188 3,196 8,401 7,242 Totals $ 1,998,582 $ 1,810,018 $ 365,903 $ 296,139 $ 1,292,403 $ 926,955 $ 3,656,889 $ 3,033,111 Source: Universal Service Administrative Company. Federal-State Joint Board on Universal Service 53 2021 Monitoring Report Section 6 – Subscribership (Voice and Internet) Overview – Subscribership: Voice & Internet Continuing analysis of telephone subscribership 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 subscribership statistics, recent surveys by the Census Bureau now also provide information about subscribership to high-speed Internet services. Starting in 2016, this section includes telephone and Internet expense statistics for lower-income households. Starting in 2017, this section includes fixed broadband deployment and subscription information for ILECs. This chapter presents comprehensive data on telephone subscribership 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 FCC Form 477. The section also provides national and state-level estimates of high-speed Internet adoption based on the ACS. Along with telephone and high-speed Internet subscribership statistics for the nation and each of the states, data are provided on subscribership for various demographics. For telephone service, particular attention is given to subscribership 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 subscribership, 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 selected 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 subscribership. The ACS 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 subscribership, the ACS follows the design of past decennial censuses and reports telephone subscribership for occupied housing units. In this chapter, subscribership measures from the CPS, the ACS, and decennial censuses (prior to the ACS) are reported as complements to each other.10 Historically, the ACS provided telephone subscribership data, and since 2013 now also asks 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 2019 data from 10 Subscribership statistics derived from the CPS cannot be directly compared with the subscribership 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 subscribership 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. Federal-State Joint Board on Universal Service 54 2021 Monitoring Report the ACS on high-speed Internet subscribership have been incorporated into this report. Since the ACS is conducted throughout the year, a 1-year average is calculated using the data. 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 in 2019 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” subscribership rather than “available.” 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 subscribership 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.11 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. The questions and answer categories used to collect ACS data on computer and Internet use were revised in 2016. The changes in high-speed Internet subscribership may be due to the revised wording and improved measurement, rather than a result of changes in the Internet use. Due to the pandemic, the standard ACS 2020 1-year data were not released. Census instead released a series of experimental estimates from the 1-year data. This is because certain groups were unable to be interviewed to establish weights created in the same way as other years. We maintain 2019 data in these cases. Section 6 also presents broadband subscription and deployment information from ILEC’s Form 477 and study area boundary submissions. Additionally, carriers participating in modernized Connect America Fund programs must file broadband deployment data with USAC’s HUBB (High Cost Universal Broadband) portal showing where they are building out mass-market, high-speed Internet service. These deployment data have been rolled up by funding mechanism and compared against their deployment obligations. 11 Annual data for Puerto Rico has 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. Federal-State Joint Board on Universal Service 55 2021 Monitoring Report Table 6.1 – Household Voice Subscribership in the United States, 1983 – 2021 Households Households with Percentage Households Percentage with without a Month Year a Telephone in without Telephone (millions) Telephone in Unit Telephone in Unit (millions) in Unit Unit (millions) 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 November 2009 119.2 114.0 95.7 5.1 4.3 November 2010 119.4 114.0 95.5 5.4 4.5 November 2011 119.7 114.4 95.6 5.3 4.4 November 2012 122.0 116.9 95.8 5.1 4.2 November 2013 123.7 118.4 95.7 5.3 4.3 November 2014 124.8 119.9 96.1 4.9 3.9 November 2015 126.1 122.2 96.3 3.9 3.1 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 November 2017 127.5 122.1 95.8 5.4 4.2 March 2018 128.8 124.2 96.4 4.6 3.6 July 2018 129.1 123.9 96.0 5.2 4.0 November 2018 129.4 124.2 96.0 5.2 4.0 March 2019 129.9 124.9 96.2 4.9 3.8 July 2019 129.9 124.9 96.2 4.9 3.8 November 2019 130.6 125.2 95.8 5.4 4.2 March 2020 129.3 125.4 97.0 3.9 3.0 July 2020 128.5 126.1 98.1 2.4 1.9 November 2020 130.9 127.2 97.2 3.7 2.8 March 2021 130.9 127.1 97.1 3.8 2.9 July 2021 131.3 127.8 97.3 3.5 2.7 Source: United States Census Bureau, Current Population Survey Federal-State Joint Board on Universal Service 56 2021 Monitoring Report Table 6.2 – Household Voice Penetration by Income, 1997 – 2021 (in 1984 Dollars) $9,999 or $10,000 - $20,000 - $30,000 - $40,000 or All Less $19,999 $29,999 $39,999 Greater 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 2018 92.9 96.3 97.1 97.5 97.6 96.3 2019 93.1 96.1 96.3 97.1 97.8 96.2 2020 94.2 96.5 97.5 97.7 98.2 97.0 2021 94.9 97.0 97.3 97.7 98.2 97.1 Notes: 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. Source: U.S. Census Bureau, Current Population Survey (March CPS Supplement). Federal-State Joint Board on Universal Service 57 2021 Monitoring Report Table 6.3 – Nominal Dollar Equivalents by Year 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 23,762 47,525 71,287 95,049 2018 24,323 48,646 72,969 97,292 2019 24,776 49,552 74,328 99,104 2020 25,157 50,315 75,472 100,630 2021 25,816 51,633 77,449 103,266 Note: All numbers based on CPI non-adjusted series, March 1984 base of 102.6. This table shows the nominal dollar equivalents for each 1984-dollar amount used in classifying income categories in Tables 6.2 and 6.8. Federal-State Joint Board on Universal Service 58 2021 Monitoring Report Table 6.4 – Historical Voice Penetration Estimates Percentage of Occupied Housing Percentage of Households with Units with Telephone Service1 Telephone Service2 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 98.5 96.1 2018 98.5 96.1 2019 99.0 96.1 2020 NA4 97.4 5 2021 NA 97.3 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 - 2019). 2 Household penetration data (1990 - 2019) are annual averages from the U.S. Census based on the Current Population Survey. For 2021, July CPS data are used. 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 2020 are experimental due to COVID-19 impacting the ACS. 5 ACS statistics for 2021 are not available. Federal-State Joint Board on Universal Service 59 2021 Monitoring Report Table 6.5 – Voice Penetration by Selected Demographic Characteristics (Percentage of Households with Voice Service) Characteristic 2017 2018 2019 2020 2021 Persons in Household 1 94.1 94.3 94.3 96.2 96.2 2 - 3 96.9 96.7 96.7 97.9 97.7 4 - 5 97.2 97.3 97.1 97.9 97.9 6 + 96.0 96.5 96.3 97.3 96.7 Age of Householder 15 - 24 Yrs Old 95.9 95.9 95.5 97.5 96.2 25 - 54 Yrs Old 96.0 96.1 96.2 97.4 97.6 55 - 59 Yrs Old 95.9 96.4 95.6 97.3 97.1 60 - 64 Yrs Old 96.6 96.3 95.9 97.5 97.2 65 - 69 Yrs Old 96.9 96.5 96.5 97.4 97.1 70 - 99 Yrs Old 95.9 95.9 95.8 97.3 96.8 Race of Householder White 96.5 96.5 96.4 97.6 97.5 Black 94.0 94.2 94.7 96.5 96.3 Hispanic Origin 94.4 94.4 94.2 96.3 95.8 Total United States 96.1 96.1 96.1 97.4 97.3 Note: that 2017 to 2020 values are annual averages. For 2021, values are July 2021 figures since complete 2021 figures were unavailable at the time of publication. Source: U.S. Census Bureau, Current Population Survey. Federal-State Joint Board on Universal Service 60 2021 Monitoring Report Table 6.6 – Voice Subscribership by State, 2014 – 2019 (Percentage of Occupied Housing Units with Voice Service) 2014 2015 2016 2017 2018 2019 Alabama 97.4 97.2 96.9 98.4 98.0 98.6 Alaska 98.1 97.3 97.5 98.9 98.7 98.6 Arizona 97.5 97.4 96.4 98.1 98.4 98.8 Arkansas 97.3 96.4 96.3 97.8 98.0 98.6 California 97.9 97.8 97.4 98.8 98.8 99.1 Colorado 97.9 97.9 96.9 98.7 98.6 99.2 Connecticut 98.5 98.5 97.9 98.9 98.9 99.2 Delaware 97.9 98.3 97.4 98.2 99.2 99.5 District of Columbia 97.6 97.2 96.4 97.0 98.8 99.0 Florida 97.1 97.1 96.4 98.3 98.4 98.8 Georgia 97.3 97.3 97.0 98.5 98.5 99.0 Hawaii 97.7 97.7 97.0 98.4 98.2 98.8 Idaho 97.3 97.3 96.4 98.2 98.4 99.3 Illinois 97.4 97.6 96.9 98.5 98.5 99.0 Indiana 97.5 97.4 97.1 98.2 98.3 98.6 Iowa 97.6 97.5 96.9 98.4 98.7 99.0 Kansas 97.4 97.1 96.4 98.0 98.5 99.1 Kentucky 97.1 97.3 97.0 98.2 98.5 98.8 Louisiana 97.0 97.2 97.0 98.0 98.2 98.8 Maine 98.1 97.6 97.6 98.5 98.7 99.0 Maryland 97.6 97.7 97.4 98.8 98.7 99.1 Massachusetts 98.2 98.1 98.1 98.9 98.8 99.2 Michigan 97.6 97.4 97.0 98.5 98.4 99.2 Minnesota 97.9 97.3 97.5 98.8 98.7 99.3 Mississippi 97.2 97.0 96.7 98.2 98.2 98.6 Missouri 97.1 97.2 96.9 98.3 98.5 99.0 Montana 97.0 97.0 96.3 97.9 97.5 98.7 Nebraska 97.7 97.3 97.2 98.6 98.5 99.1 Nevada 96.5 97.2 96.5 98.3 98.1 98.7 New Hampshire 98.3 98.3 98.2 98.9 98.9 99.1 New Jersey 98.5 97.8 97.4 99.0 98.9 99.1 New Mexico 97.2 96.6 96.2 97.6 97.8 98.5 New York 97.8 97.9 97.3 98.6 98.4 98.8 North Carolina 97.7 97.6 96.6 98.5 98.6 99.0 North Dakota 98.1 96.9 97.6 98.6 98.5 99.2 Ohio 97.3 97.3 96.7 98.6 98.6 99.0 Oklahoma 97.1 97.0 96.6 98.2 98.2 98.9 Oregon 97.6 97.3 96.7 98.7 98.9 99.2 Pennsylvania 98.2 98.0 97.7 98.5 98.6 99.0 Rhode Island 97.8 98.1 97.5 99.0 98.8 99.2 South Carolina 97.6 97.0 96.1 98.3 98.5 98.9 South Dakota 97.2 96.7 96.4 97.6 97.9 98.4 Tennessee 97.5 97.6 97.1 98.4 98.4 98.6 Texas 97.7 97.4 96.3 98.2 98.4 99.0 Utah 98.0 97.7 97.2 98.4 99.0 99.3 Vermont 98.1 97.9 97.2 98.6 98.0 98.7 Virginia 98.1 97.6 97.5 98.9 98.9 99.2 Washington 97.6 97.5 97.0 99.0 98.7 99.1 West Virginia 96.9 97.3 96.9 97.1 98.4 98.5 Wisconsin 97.7 97.3 97.0 98.4 98.4 98.9 Wyoming 97.9 97.4 97.1 98.9 98.9 99.1 Total United States 97.6 97.4 97.0 98.5 98.5 99.0 Puerto Rico 94.3 95.5 96.0 96.0 95.8 96.5 Note: 'Total United States' does not include Puerto Rico. Note: 2020 Data unavailable due to Covid-19 impacts to ACS data. Source: Census Bureau, American Community Survey, Table DP04. Federal-State Joint Board on Universal Service 61 2021 Monitoring Report Table 6.7 – Voice Penetration by State, Selected Years (Percentage of Households with a Telephone in Unit) 1984 1996 2000 2010 2020 Alabama 88.4 92.2 91.9 95.2 97.9 Alaska 86.5 94.4 94.3 97.1 99.5 Arizona 86.9 93.1 93.9 95.2 98.9 Arkansas 86.6 86.9 88.6 93.4 94.3 California 92.5 95.0 95.8 96.4 96.7 Colorado 93.2 95.5 96.3 97.7 99.2 Connecticut 95.5 97.5 96.4 97.9 97.5 Delaware 94.3 96.1 96.3 97.4 99.2 District of Columbia 94.9 93.0 93.2 91.1 97.9 Florida 88.7 93.1 92.1 93.7 92.4 Georgia 86.2 89.7 91.1 93.0 96.4 Hawaii 93.5 94.8 94.7 95.7 98.5 Idaho 90.7 92.9 93.9 97.9 98.4 Illinois 94.2 93.0 91.5 95.2 98.5 Indiana 91.6 93.7 94.5 92.5 98.6 Iowa 96.2 96.6 96.2 97.7 98.4 Kansas 94.3 93.9 94.8 97.5 98.7 Kentucky 88.1 92.3 93.3 95.0 95.2 Louisiana 89.7 91.1 92.6 96.5 97.5 Maine 93.4 96.5 97.9 98.2 99.2 Maryland 95.7 96.7 95.0 96.2 97.9 Massachusetts 95.9 95.7 94.6 97.6 98.6 Michigan 92.8 95.0 95.0 96.8 98.0 Minnesota 95.8 97.1 97.4 98.5 98.9 Mississippi 82.4 87.5 89.2 96.0 97.5 Missouri 91.5 95.3 95.8 96.1 98.8 Montana 91.0 94.3 94.6 94.9 98.2 Nebraska 95.7 96.0 97.3 95.6 99.1 Nevada 90.4 93.5 94.0 96.6 96.7 New Hampshire 94.3 96.1 97.7 98.2 99.3 New Jersey 94.8 93.6 94.6 95.9 88.2 New Mexico 82.0 86.2 91.2 92.4 95.3 New York 91.8 93.4 95.1 94.8 95.4 North Carolina 88.3 93.5 93.9 95.5 97.6 North Dakota 94.6 96.3 95.8 98.5 98.8 Ohio 92.4 94.5 94.8 96.7 98.0 Oklahoma 90.3 91.3 91.2 95.7 98.5 Oregon 90.6 96.0 94.8 97.6 99.1 Pennsylvania 94.9 96.9 96.6 98.2 98.7 Rhode Island 93.6 95.7 94.9 97.2 98.2 South Carolina 83.7 91.3 93.2 94.3 98.5 South Dakota 93.2 93.3 94.3 97.8 97.9 Tennessee 88.5 94.0 95.5 92.2 97.8 Texas 88.4 91.0 93.5 95.2 98.7 Utah 92.5 96.7 95.9 96.7 97.3 Vermont 92.3 95.9 95.6 98.1 98.6 Virginia 93.1 94.9 95.4 95.3 98.0 Washington 93.0 94.5 94.9 98.1 99.2 West Virginia 87.7 92.9 94.0 96.2 99.2 Wisconsin 95.2 97.0 94.8 98.3 98.7 Wyoming 89.9 95.0 94.7 97.3 98.0 Total United States 91.6 93.9 94.4 95.8 97.2 Source: U.S. Census Bureau, Current Population Survey. Federal-State Joint Board on Universal Service 62 2021 Monitoring Report Table 6.8 – Household Voice Penetration by State and Income, 2021 (in 1984 Dollars) $10,000 to $19,999 to $30,000 to $40,000 or $9,999 or Less All Households $19,999 $29,999 $39,999 More Alabama 97.5 97.1 98.0 97.4 98.9 97.8 Alaska 99.3 99.2 100.0 96.8 100.0 99.3 Arizona 97.6 99.0 100.0 100.0 99.5 99.2 Arkansas 94.0 95.8 95.3 96.7 95.2 95.2 California 95.1 96.6 96.2 96.7 98.4 97.0 Colorado 97.6 97.3 100.0 100.0 99.8 99.1 Connecticut 97.5 99.2 97.3 98.9 98.6 98.3 Delaware 100.0 98.4 99.2 100.0 99.7 99.4 District of Columbia 95.9 98.7 98.0 98.8 99.3 98.3 Florida 87.9 90.9 93.1 93.5 93.3 91.5 Georgia 94.5 96.9 95.4 96.1 97.0 96.1 Hawaii 95.9 99.4 98.5 99.2 99.8 98.8 Idaho 95.0 96.2 99.5 100.0 99.7 98.2 Illinois 96.3 99.1 99.6 99.7 99.4 98.9 Indiana 94.6 97.2 98.9 98.9 98.9 97.8 Iowa 94.1 100.0 97.4 97.3 100.0 98.1 Kansas 98.3 97.5 99.6 98.8 98.5 98.5 Kentucky 91.4 92.3 96.1 99.1 96.3 94.6 Louisiana 95.4 96.6 98.1 96.6 99.3 97.1 Maine 96.2 100.0 99.5 100.0 100.0 99.3 Maryland 94.3 98.9 97.2 98.8 98.4 97.8 Massachusetts 96.4 98.2 99.6 98.1 98.9 98.4 Michigan 95.6 99.3 98.2 98.5 99.5 98.3 Minnesota 98.4 99.5 100.0 97.6 99.8 99.3 Mississippi 96.3 97.9 99.5 100.0 97.7 97.9 Missouri 97.4 99.5 98.2 100.0 98.7 98.7 Montana 95.3 99.6 99.1 98.9 99.4 98.4 Nebraska 96.5 98.8 100.0 100.0 98.3 98.7 Nevada 95.6 96.6 98.4 99.2 98.1 97.4 New Hampshire 97.5 99.4 100.0 99.4 99.7 99.3 New Jersey 80.6 89.4 87.3 91.5 92.1 89.2 New Mexico 91.7 95.1 98.0 94.7 96.3 95.0 New York 92.9 94.7 94.5 95.8 96.0 94.9 North Carolina 95.4 98.4 97.6 97.4 98.0 97.3 North Dakota 97.5 98.2 100.0 97.0 100.0 98.8 Ohio 96.2 97.8 98.8 98.3 99.4 98.1 Oklahoma 97.0 97.7 98.9 99.3 100.0 98.4 Oregon 98.3 100.0 98.6 99.5 99.4 99.3 Pennsylvania 96.7 99.2 98.2 100.0 99.2 98.7 Rhode Island 94.6 95.6 95.7 99.3 98.5 97.1 South Carolina 97.8 98.2 99.2 98.5 99.8 98.7 South Dakota 96.9 99.5 98.3 98.8 98.4 98.4 Tennessee 96.2 96.9 98.7 100.0 97.3 97.5 Texas 97.2 98.6 99.3 98.6 99.7 98.8 Utah 94.5 98.1 97.3 95.7 98.7 97.5 Vermont 97.4 99.4 99.2 97.7 99.6 98.8 Virginia 93.7 98.3 95.6 98.1 98.6 97.3 Washington 98.7 99.2 99.1 98.9 99.6 99.2 West Virginia 98.4 99.7 100.0 100.0 99.7 99.5 Wisconsin 98.5 98.4 98.6 98.1 99.6 98.8 Wyoming 95.6 98.8 99.4 97.8 99.3 98.3 Total United States 94.9 97.0 97.3 97.7 98.2 97.1 Note: Income categories use 1984 dollars. For a conversion to current-year dollars, consult Table 6.3. Source: U.S. Census Bureau, Current Population Survey (March CPS Supplement). Federal-State Joint Board on Universal Service 63 2021 Monitoring Report Table 6.9 – Internet Use by Selected Characteristics, 2019 Percent with high-speed Internet subscription1 All Households 86.4 Household Income2 Less than $20,000 64.2 $20,000 - $74,999 84.1 $75,000 or more 95.6 Metropolitan Status3 Metropolitan Area 87.6 Nonmetropolitan Area 79.4 Urban / Rural Area3 Rural Area 82.3 Urban Area 87.4 All Individuals 89.4 Age4 Under 18 92.6 18 - 64 91.3 65 + 78.0 Race and Hispanic Origin5 White alone, non-Hispanic 90.1 Black alone, non-Hispanic 83.9 Asian alone, non-Hispanic 94.9 Hispanic (of any race) 87.6 American Indian 77.9 1 High-speed service includes all Internet service other than dial-up. 2 Source: Census Bureau, American Community Survey, Table B28004 3 Source: Census Bureau, American Community Survey, Table B28002 4 Source: Census Bureau, American Community Survey, Table B28005 5 Source: Census Bureau, American Community Survey, Tables B28009 (A, B, C, D, and I) Note: 2020 Data unable to be presented due to Covid-19 impacts on ACS 1 year data. Federal-State Joint Board on Universal Service 64 2021 Monitoring Report Table 6.10 – High-Speed Internet Penetration for Households by State, 2015 – 20191 2015 2016 2017 2018 2019 Alabama 68.3 74.7 78.1 79.3 81.6 Alaska 81.7 85.7 86.1 87.5 87.8 Arizona 78.1 83.1 85.7 86.2 87.2 Arkansas 64.2 70.9 73.0 76.9 79.8 California 81.3 85.4 87.7 88.7 89.8 Colorado 83.0 86.9 88.2 89.4 91.0 Connecticut 82.0 84.1 85.5 87.0 88.5 Delaware 77.4 83.3 86.2 88.4 88.8 District of Columbia 76.8 79.8 82.7 86.1 87.3 Florida 77.5 81.2 83.2 85.2 86.8 Georgia 74.8 80.7 82.7 83.7 85.0 Hawaii 82.2 83.2 84.5 85.7 88.0 Idaho 76.7 79.4 82.5 86.2 88.4 Illinois 76.9 82.0 83.6 85.1 86.0 Indiana 73.3 79.2 81.2 82.8 83.9 Iowa 75.0 79.6 81.8 83.6 83.9 Kansas 76.2 80.3 83.0 84.3 85.2 Kentucky 70.9 77.3 78.9 81.7 83.1 Louisiana 68.7 74.4 75.6 78.1 80.6 Maine 77.1 80.7 82.0 84.0 84.9 Maryland 81.4 85.8 87.7 88.2 89.1 Massachusetts 82.6 85.5 86.8 87.9 88.9 Michigan 74.4 80.5 82.8 84.1 85.9 Minnesota 79.5 83.5 85.9 86.8 87.9 Mississippi 61.0 70.7 73.4 76.3 76.8 Missouri 73.3 79.3 81.3 82.9 84.8 Montana 75.0 78.9 81.3 83.6 85.0 Nebraska 78.1 81.6 84.4 85.7 87.0 Nevada 79.0 80.9 83.4 85.9 85.6 New Hampshire 84.5 86.4 88.4 89.1 89.2 New Jersey 81.6 84.2 86.8 88.0 89.4 New Mexico 67.2 73.7 76.4 76.9 78.5 New York 77.8 81.7 83.4 85.3 86.2 North Carolina 74.1 79.0 81.6 83.5 85.3 North Dakota 76.3 81.4 81.3 80.3 84.1 Ohio 76.1 80.9 83.2 84.5 85.4 Oklahoma 70.8 77.2 79.7 81.9 83.6 Oregon 80.8 84.9 86.8 87.9 89.0 Pennsylvania 75.7 80.5 81.5 84.1 85.6 Rhode Island 78.2 82.8 85.5 85.3 87.7 South Carolina 69.9 77.0 79.2 81.5 82.7 South Dakota 75.3 79.5 80.6 82.1 85.0 Tennessee 70.2 76.7 79.4 82.1 83.0 Texas 74.3 80.5 83.3 84.5 86.3 Utah 83.1 85.4 87.8 90.0 90.8 Vermont 78.7 81.1 81.4 82.5 83.4 Virginia 78.6 83.4 84.8 85.6 86.7 Washington 83.9 87.4 89.1 90.0 91.2 West Virginia 69.8 74.2 76.0 79.0 81.0 Wisconsin 76.9 81.3 83.3 84.4 86.0 Wyoming 77.8 83.2 83.7 85.7 87.8 Total United States 76.7 81.4 83.5 85.1 86.4 Puerto Rico 51.8 59.3 60.9 62.2 68.2 1 High-speed Internet service includes all Internet service other than dial-up. Source: Census Bureau, American Community Survey, Table B28002 Note: 2020 Data unable to be presented due to Covid-19 impacts on ACS 1 year data. Federal-State Joint Board on Universal Service 65 2021 Monitoring Report Table 6.11 – Residential Fixed Connections per Household by Speed Tier as of December 31, 2020 (Households and Subscribers in thousands) At least 200 Kbps in any 10 Mbps Download 25 Mbps Download 100 Mbps Download Households direction 1 Mbps upload 3 Mbps Upload 10 Mbps Upload Subscribers Ratio Subscribers Ratio Subscribers Ratio Subscribers Ratio Alabama 1,867 1,551 0.83 1,382 0.74 1,180 0.63 888 0.48 Alaska 253 221 0.87 201 0.80 151 0.60 * * American Samoa 10 * * * * * * 0 0.00 Arizona 2,571 2,442 0.95 2,203 0.86 2,012 0.78 1,408 0.55 Arkansas 1,158 905 0.78 776 0.67 629 0.54 370 0.32 California 3,044 2,328 0.95 1,764 0.90 871 0.83 7,605 0.58 Colorado 2,148 2,106 0.98 1,917 0.89 1,811 0.84 915 0.43 Connecticut 1,370 1,304 0.95 1,246 0.91 1,094 0.80 735 0.54 Delaware 363 380 1.05 371 1.02 366 1.01 221 0.61 District of Columbia 284 273 0.96 265 0.94 261 0.92 161 0.57 Florida 7,736 8,076 1.04 7,717 1.00 6,946 0.90 5,327 0.69 Georgia 3,758 3,469 0.92 3,230 0.86 2,803 0.75 2,057 0.55 Guam 42 * * * * * * * * Hawaii 459 486 1.06 472 1.03 * * * * Idaho 630 571 0.91 470 0.75 381 0.60 262 0.42 Illinois 4,846 4,214 0.87 3,955 0.82 3,347 0.69 2,347 0.48 Indiana 2,570 2,203 0.86 2,003 0.78 1,680 0.65 1,153 0.45 Iowa 1,265 1,049 0.83 898 0.71 793 0.63 563 0.45 Kansas 1,129 978 0.87 893 0.79 766 0.68 533 0.47 Kentucky 1,734 1,478 0.85 1,335 0.77 1,170 0.67 881 0.51 Louisiana 1,739 1,426 0.82 1,303 0.75 1,116 0.64 792 0.46 Maine 559 564 1.01 506 0.91 423 0.76 339 0.61 Maryland 2,205 2,134 0.97 2,078 0.94 2,024 0.92 1,216 0.55 Massachusetts 2,617 2,522 0.96 2,450 0.94 2,416 0.92 1,475 0.56 Michigan 3,935 3,434 0.87 3,200 0.81 2,760 0.70 1,891 0.48 Minnesota 2,185 1,949 0.89 1,739 0.80 1,594 0.73 934 0.43 Mississippi 1,104 824 0.75 711 0.64 533 0.48 307 0.28 Missouri 2,414 2,038 0.84 1,798 0.74 1,558 0.65 1,219 0.51 Montana 427 385 0.90 331 0.77 284 0.66 213 0.50 Nebraska 759 655 0.86 600 0.79 529 0.70 400 0.53 Nevada 1,098 1,070 0.97 1,015 0.92 924 0.84 715 0.65 New Hampshire 532 550 1.03 522 0.98 488 0.92 293 0.55 New Jersey 3,231 3,143 0.97 3,074 0.95 3,020 0.93 2,216 0.69 New Mexico 780 677 0.87 547 0.70 487 0.63 197 0.25 New York 7,343 6,630 0.90 6,499 0.89 6,199 0.84 5,529 0.75 North Carolina 3,965 3,783 0.95 3,445 0.87 3,214 0.81 2,705 0.68 North Dakota 318 276 0.87 265 0.83 249 0.78 195 0.62 Northern Mariana Isl. 16 * * * * * * 0 0.00 Ohio 4,676 4,122 0.88 3,823 0.82 3,385 0.72 2,481 0.53 Oklahoma 1,480 1,187 0.80 1,063 0.72 902 0.61 632 0.43 Oregon 1,611 1,487 0.92 1,353 0.84 1,263 0.78 692 0.43 Pennsylvania 5,053 4,535 0.90 4,235 0.84 4,078 0.81 2,391 0.47 Puerto Rico 1,192 670 0.56 585 0.49 355 0.30 * * Rhode Island 410 393 0.96 390 0.95 380 0.93 323 0.79 South Carolina 1,921 1,790 0.93 1,677 0.87 1,489 0.77 1,200 0.62 South Dakota 344 297 0.86 285 0.83 270 0.79 192 0.56 Tennessee 2,597 2,273 0.88 2,128 0.82 1,866 0.72 1,406 0.54 Texas 9,691 8,994 0.93 8,544 0.88 7,722 0.80 5,580 0.58 Utah 977 946 0.97 867 0.89 801 0.82 426 0.44 Vermont 260 261 1.01 225 0.87 187 0.72 91 0.35 Virgin Islands 43 * * 17 0.40 * * * * Virginia 3,151 2,864 0.91 2,689 0.85 2,572 0.82 1,747 0.55 Washington 2,848 2,714 0.95 2,487 0.87 2,344 0.82 1,230 0.43 West Virginia 732 571 0.78 468 0.64 400 0.55 241 0.33 Wisconsin 2,358 2,083 0.88 1,896 0.80 1,651 0.70 1,303 0.55 Wyoming 230 206 0.90 183 0.80 163 0.71 111 0.48 Total 122,046 111,599 0.92 104,175 0.85 94,429 0.77 66,778 0.55 Note: Mbps = megabits per second and kbps = kilobits per second. * = Data withheld to maintain firm confidentiality. Note: Column Ratio = The ratio of the reported number of fixed residential connections (from FCC Form 477) to the estimated number of households (from the 5-year ACS). This is a loose estimate of the share of households with fixed- location connections and is not bounded by 1—the numerator and denominator of this ratio are both themselves estimates and come from different sources. Note: Figures may not sum to totals due to rounding. Sources: FCC Form 477 (Connections); 2014-2018 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). Federal-State Joint Board on Universal Service 66 2021 Monitoring Report Table 6.12 – Telephone Service, Internet Access, Telephone Expenses, and Internet Expenses in Low- Income Households Percent of Low-Income Households with Telephone / Internet Services: 2019 Low-Income Group 1 Low-Income Group 2 Telephone Service 97.2 98.4 Internet Access 73.9 80.5 Low-Income Household Expenses for Telephone/Cellular Phone/Internet Services as a Percent of Income After Taxes: 2020 Low-Income Group 1 Low-Income Group 2 Telephone Expenses1 All 3.0 3.3 With Expenses Only 3.5 3.6 Cellular Phone Expenses All 2.6 2.7 With Expenses Only 3.3 3.5 Internet Expenses All 1.3 1.4 With Expenses Only 1.7 1.9 All statistics between group 1 and group 2 are statistically significantly different at a confidence level of 99.9%. 1 The telephone expenses include residential phone service, VOIP, phone cards, and cellular phone service. Note: Group 1 contains occupied housing units where the household income is less than or equal to 135% of the 2020 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 to 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). Note: The 2016 Lifeline Modernization Order included affordability of voice and broadband service as a component of the program’s goals and directed WCB (Wireline Competition Bureau) 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). Note: 2020 Household data unable to be presented due to Covid-19 impacts on ACS PUMS data. Source: American Community Survey 2019 Public Use Microdata Sample (PUMS) data for telephone service and internet access and Consumer Expenditure Survey 2020 public-use microdata (PUMD) for telephone and internet expenses and after-tax income. Federal-State Joint Board on Universal Service 67 2021 Monitoring Report Table 6.13 – Switched Access Lines and Interconnected VoIP Subscribers for ILECs (in Thousands) Rate-of-Return Carriers Price Cap Carriers Total A-CAM/Alaska Plan Legacy Percentage Total Percentage Estimate1 Estimate1 December 2010 4,635 92,862 97,497 December 2011 4,495 84,932 89,427 December 2012 4,268 77,846 82,114 December 2013 4,123 70,959 75,082 December 2014 3,858 65,566 69,424 December 2015 3,749 59,930 63,680 December 2016 3,697 35 65 54,564 58,262 December 2017 3,553 34 66 49,468 53,022 December 2018 3,377 31 69 43,878 47,256 December 2019 3,185 41 59 39,022 42,207 December 2020 3,017 41 59 34,161 37,178 1 A-CAM and Legacy Carrier lines are estimated based on data from NECA's Annual USF filing. A-CAM II carriers are included in legacy carriers prior to 2019 and in A-CAM/Alaska Plan carriers beginning in 2019. Notes: ILEC stands for Incumbent Local Exchange Carrier. A-CAM stands for Alternative Connect America Cost Model. Data from 2014-2019 may be revised from earlier Monitoring Reports due to respondents' refiling FCC Form 477. Source: FCC Form 477 Submissions. Federal-State Joint Board on Universal Service 68 2021 Monitoring Report Table 6.14 – Fixed Connections for ILECs (in Thousands) Rate-of-Return Carriers Residential Business Total At Least 4 Mbps December 2015 1,355 146 1,500 December 2016 1,599 164 1,764 December 2017 1,815 191 2,005 December 2018 2,083 211 2,294 December 2019 2,277 222 2,498 December 2020 2,585 240 2,825 At Least 10 Mbps December 2015 853 90 943 December 2016 1,120 114 1,234 December 2017 1,421 150 1,571 December 2018 1,753 177 1,930 December 2019 2,023 196 2,219 December 2020 2,381 219 2,601 At Least 25 Mbps December 2015 264 22 286 December 2016 417 35 452 December 2017 715 61 776 December 2018 1,016 90 1,106 December 2019 1,343 121 1,464 December 2020 1,769 154 1,924 Price Cap Carriers Residential Business Total At Least 4 Mbps December 2015 19,169 1,426 20,595 December 2016 20,692 1,550 22,242 December 2017 22,277 1,694 23,972 December 2018 23,454 1,762 25,216 December 2019 23,879 1,772 25,650 December 2020 25,014 1,813 26,827 At Least 10 Mbps December 2015 16,430 1,211 17,641 December 2016 17,946 1,338 19,284 December 2017 19,972 1,505 21,477 December 2018 21,522 1,596 23,119 December 2019 22,309 1,635 23,945 December 2020 23,812 1,698 25,510 At Least 25 Mbps December 2015 7,282 511 7,794 December 2016 8,904 576 9,480 December 2017 12,350 754 13,104 December 2018 14,976 913 15,888 December 2019 16,702 999 17,701 December 2020 18,938 1,091 20,029 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. Data from 2015 - 2019 may be revised from the 2020 Monitoring Report due to respondents' refiling of Form 477. Figures may not sum to totals due to rounding. Source: FCC Form 477. Federal-State Joint Board on Universal Service 69 2021 Monitoring Report Table 6.15 – Fixed Deployments for ILECs (in Thousands) # of Deployed Census Population in Deployed Housing Units in Rate-of-Return Carriers Blocks Census Blocks Deployed Census Blocks At Least 4 Mbps December 2015 854 9,549 4,463 December 2016 894 9,996 4,685 December 2017 926 10,300 4,833 December 2018 940 10,358 4,853 December 2019 987 10,810 5,071 December 2020 988 10,854 5,115 At Least 10 Mbps December 2015 733 8,730 4,057 December 2016 788 9,349 4,363 December 2017 839 9,767 4,573 December 2018 859 9,848 4,620 December 2019 936 10,566 4,953 December 2020 936 10,575 4,977 At Least 25 Mbps December 2015 435 5,593 2,594 December 2016 499 6,512 3,035 December 2017 571 7,227 3,379 December 2018 606 7,617 3,557 December 2019 724 8,798 4,111 December 2020 784 9,418 4,417 # of Deployed Census Population in Deployed Housing Units in Price Cap Carriers Blocks Census Blocks Deployed Census Blocks At Least 4 Mbps December 2015 2,990 189,794 79,810 December 2016 3,615 209,928 88,054 December 2017 3,954 228,951 96,385 December 2018 3,931 229,421 96,704 December 2019 4,162 235,443 99,180 December 2020 5,089 270,067 114,500 At Least 10 Mbps December 2015 2,904 187,939 78,990 December 2016 3,361 200,943 84,327 December 2017 3,791 224,541 94,470 December 2018 3,783 225,864 95,137 December 2019 4,083 233,514 98,327 December 2020 4,627 251,684 106,475 At Least 25 Mbps December 2015 942 69,608 28,865 December 2016 1,842 144,462 59,386 December 2017 2,167 165,184 68,091 December 2018 2,284 172,972 71,625 December 2019 2,548 183,494 76,099 December 2020 3,105 201,807 84,305 Note: ILEC stands for Incumbent Local Exchange Carrier. All connections below 25 Mbps have a minimum upstream speed of 1 Mbps. All connections of at least 25 Mbps have a minimum upstream of 3 Mbps. Note: December 2019 data based upon updated Study Area Boundaries. Source: FCC Form 477 Submissions. Federal-State Joint Board on Universal Service 70 2021 Monitoring Report Table 6.16 – Overview of Broadband Deployment by High-Cost Support Mechanism 1 Obligations and deployment are in megabits per second (Mbps). For both obligations and deployments, 4/1 and 6/1 have been combined. Actual obligation and deployment speeds for each study area are listed in Supplemental Table S.6.6. Data from Uniendo a Puerto Rico, Connect USVI Fund Stage 2 Competition, and Rural Digital Opportunity Fund are not included because the carriers have not yet reached an interim deployment obligation. 2 Rural Digital Opportunity Fund obligations have not been included here because a number of applications are still under review, so their final deployment obligations and reporting deadlines remain pending. Authorized carriers’ entry of initial deployment information into the HUBB is not required until March 1, 2022. 3 Carriers may satisfy slower speed class obligations with higher speed deployments. Where carriers have deployed more than their required obligations for a given speed class, only the required deployments are included in the Total Deployed Satisfying Obligations. 4 Some carriers receiving RBE support had their obligations and deployments reduced. For details, see note in Supplementary Table 6.6. Source: USAC HUBB Data as of March 31, 2021. A carrier’s deployment data must be reported into the HUBB by March 1 of the year following the deployment. Federal-State Joint Board on Universal Service 71 2021 Monitoring Report Table 6.17 – High Cost Supported Broadband Deployment by State 1 Obligation and deployment speeds for each study area are listed in Supplemental Table S.6.8. This table includes information for ACAM, ACAMII, AK Plan, CAF BLS, CAF II Model, CAF II Auction and RBE. Data from Uniendo a Puerto Rico, Connect USVI Fund Stage 2 Competition, and Rural Digital Opportunity Fund are not included because the carriers have not yet reached an interim deployment obligation. 2 Carriers may satisfy slower speed class obligations with higher speed deployments. Where carriers have deployed more than their required obligations for a given speed class, only the required deployments are included in the Total Deployed Satisfying Obligations. Source: USAC HUBB Data as of March 31, 2021. A carrier’s deployment data must be reported into the HUBB by March 1 of the year following the deployment. Federal-State Joint Board on Universal Service 72 2021 Monitoring Report 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.12 The monthly price indices represent prices sampled in the middle of the month. The CPI for telephone services is based on a “market 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.13 12 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. Monthly CPI data can be found on the Internet at www.bls.gov/cpi/. 13 PPI data are available on the BLS website at www.bls.gov/ppi/. Federal-State Joint Board on Universal Service 73 2021 Monitoring Report Table 7.1 – Long-Term Changes for Various Price Indices (Compounded Average Percentage Growth Rate) 1971 - 2020 2010 - 2020 CPI All Items (SA0) 3.8 1.7 CPI All Services (SAS) 4.5 2.3 CPI Telephone Services (SEED) 1.4 - 0.8 CPI Major Categories: - Food & Beverages (SAF) 3.9 1.9 - Housing (SAH) 4.1 2.2 - Apparel (SAA) 1.3 - 0.4 - Transportation (SAT) 3.4 0.7 - Medical Care (SAM) 5.5 2.9 - Recreation (SAR) * 0.7 - Other Goods & Services (SAG) 4.9 1.9 CPI Public Transportation (SETG) 3.7 - 1.0 CPI Utility (Piped) Gas Service (SEHF02) 4.5 - 0.5 CPI Electricity (SEHF01) 3.8 1.2 CPI Water & Sewerage Maint. (SEHG01) 5.7 4.5 CPI Postage (SEEC01) 4.5 3.2 * Series not established until 1993. 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 proceeded 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 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. Federal-State Joint Board on Universal Service 74 2021 Monitoring Report Table 7.2 – Annual Changes in CPI Telephone Services and all Items Indices All Goods and Land-line Telephone Wireless Telephone Telephone Services Services Services Services BLS Series ID CURR0000SA0 CUUR0000SEED CUUR0000SEED04 CUUR0000SEED03 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 2017 2.1 -6.5 2.2 -10.2 2018 1.9 -2.4 0.0 -3.2 2019 2.3 1.6 6.9 -0.3 2020 1.4 4.2 4.6 4.1 * Series not established until December 2009. Note: Values report the percent change from December of the previous year through December of the year shown. Source: Bureau of Labor Statistics. Federal-State Joint Board on Universal Service 75 2021 Monitoring Report Table 7.3 – Monthly Consumer Price Indices (December 2009 = 100) Land-line Telephone Wireless Telephone All Goods and Services Telephone Services Services Services BLS Series ID CUUR0000SA0 CUUR0000SEED CUUR0000SEED04 CUUR0000SEED03 2017 January 112.45 94.81 115.01 83.98 February 112.81 94.21 116.45 82.79 March 112.90 89.55 116.16 77.01 April 113.23 88.54 116.37 75.68 May 113.33 88.33 115.70 75.62 June 113.43 87.84 115.64 75.02 July 113.35 87.74 116.04 74.78 August 113.69 87.74 116.17 74.73 September 114.30 87.89 115.89 75.01 October 114.22 88.17 115.94 75.35 November 114.23 88.50 116.53 75.58 December 114.16 88.67 117.34 75.54 2018 January 114.78 88.56 117.47 75.39 February 115.30 88.24 117.67 74.98 March 115.56 88.21 116.73 75.16 April 116.02 88.19 116.52 75.18 May 116.50 88.32 116.81 75.26 June 116.50 88.36 117.12 75.24 July 116.70 88.48 117.79 75.24 August 116.76 88.13 117.50 74.90 September 116.90 88.21 117.94 74.90 October 117.10 88.03 116.67 74.97 November 116.71 86.63 117.06 73.29 December 116.34 86.54 117.32 73.13 2019 January 116.56 86.55 117.87 73.02 February 117.05 86.52 118.19 72.92 March 117.71 86.52 118.59 72.83 April 118.34 86.66 118.71 72.97 May 118.59 86.72 119.25 72.92 June 118.61 86.89 119.69 73.01 July 118.81 86.99 120.45 72.97 August 118.80 86.95 120.67 72.87 September 118.90 87.16 122.14 72.80 October 119.17 87.38 123.47 72.76 November 119.11 87.80 125.03 72.90 December 119.00 87.91 125.44 72.94 2020 January 119.46 88.14 127.49 72.93 February 119.79 88.03 127.92 72.77 March 119.53 88.03 128.00 72.76 April 118.73 88.23 129.07 72.83 May 118.73 88.22 128.52 72.88 June 119.38 88.10 128.17 72.80 July 119.38 88.10 128.17 72.80 August 120.36 91.28 127.90 76.03 September 120.53 91.48 128.53 76.14 October 120.58 91.73 130.92 76.11 November 120.50 91.64 131.13 75.99 December 120.62 91.58 131.24 75.92 2021 January 121.13 91.68 132.04 75.93 February 121.79 91.84 133.30 75.93 March 122.66 91.66 133.94 75.67 April 123.67 91.57 133.69 75.61 May 124.66 91.77 135.19 75.63 June 125.81 91.95 136.35 75.67 July 126.42 91.88 136.90 75.54 Note: Series values for “All Goods and Services” are converted from the 1982-1984 base index series reported by the Bureau of Labor '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. Federal-State Joint Board on Universal Service 76 2021 Monitoring Report