Voice Telephone Services: Status as of December 31, 2019 Industry Analysis Division Office of Economics and Analytics March 2022 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 Voice Telephone Services Reports webpage at https://www.fcc.gov/voice-telephone-services-report. Table of Contents Introduction ................................................................................................................................... 1 Comparison to Local Telephone Competition Report ........................................................................ 1 Retail Voice Telephone Service Connections ..................................................................................... 2 Figure 1 Retail Voice Telephone Service Connections, 2016-2019................................................. 2 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, and Customer Type as of December 31, 2019 ...................................... 3 Retail Service Relationships............................................................................................................. 4 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of December 31, 2019 ...................................... 5 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service by Regulatory Status as of December 31, 2019.............................. 6 Detailed Voice Telephone Services Data .......................................................................................... 7 Table 1 Voice Subscriptions – Total for US............................................................................... 8 Table 2 Number of Providers Reporting Voice Subscriptions – Total for US ............................... 10 Table 3 Residential Wireline Voice Telephone Service Connections and Households by State as of December 31, 2019............................................................................... 12 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of December 31, 2019............................................................................... 13 Technical Notes ............................................................................................................................ 14 Glossary....................................................................................................................................... 15 Materials Available on the FCC Website (https://www.fcc.gov/voice-telephone-services-report) Table 1 Voice Subscriptions – Total for US Table 2 Number of Providers Reporting Voice Subscriptions – Total for US Table 3 Residential Wireline Voice Telephone Service Connections and Households by State as of December 31, 2019 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of December 31, 2019 Table S.1 Voice Subscriptions – State Table S.2 Number of Providers Reporting Voice Subscriptions – State Table S.3 Fixed Voice Subscriptions – County Table S.4 Voice Subscriptions – Back to 2008 Table S.5 Number of Providers Reporting Voice Subscriptions – Back to 2014 Table S.6 Crosswalk to Local Telephone Competition: Status as of December 31, 2013 report Voice Telephone Services: Status as of December 31, 2019 Introduction The Commission has used FCC Form 477 to collect subscribership information from providers of voice telephone services – incumbent local exchange carriers (ILECs), competitive local exchange carriers (CLECs), and mobile voice providers – since December 1999.1 The Commission has required interconnected Voice over Internet Protocol (“interconnected VoIP”) service providers to report subscribership information since December 2008.2 Also, starting with the data reported for 2014, Form 477 has been modified to distinguish “over-the-top” (colloquially, “bring your own broadband”) interconnected VoIP subscriptions from other interconnected VoIP subscriptions.3 Comparison to Local Telephone Competition Report This report was previously titled Local Telephone Competition. Reports under the earlier title summarized Form 477 data through December 31, 2013. Reports under the current title provide much of the summarized data as supplemental spreadsheet files, available at https://www.fcc.gov/voice-telephone-services-report. A crosswalk between data elements in this report and data elements in the Local Telephone Competition report is available at that page. 1 An Incumbent Local Exchange Carrier is an entity that was providing local exchange telephone service in a particular area on February 8, 1996, the date on which the Telecommunications Act of 1996 was enacted into law. See 47 C.F.R. § 51.5. 2 The FCC’s rules (at 47 C.F.R. § 9.3) state: An interconnected Voice over Internet Protocol (VoIP) service is a service that: (1) Enables real-time, two-way voice communications; (2) Requires a broadband connection from the user’s location; (3) Requires Internet protocol-compatible customer premises equipment; and (4) Permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. We note that the current interpretation of element (4) of the definition excludes certain VoIP services (e.g., those offered by Skype) and subscribers to those services are not reported on Form 477. 3 The Technical Notes and the Glossary that appear at the end of this report provide more-detailed information about the current Form 477 and the meaning of terms used in this report. To be consistent with modifications to Form 477 adopted in 2013 (to be effective for reporting June 2014 and later data), this report no longer uses the terms “standalone VoIP” and “broadband bundle.” Standalone VoIP in the earlier, Local Telephone Competition, reports has a different meaning from “over-the-top” VoIP in this report. In particular, subscriptions reported as standalone VoIP for December 2013 and earlier dates included over-the-top subscriptions as defined in this report and also video-plus-VoIP service subscriptions sold by cable TV system operators and other entities that own last-mile facilities to end-user premises. We note that, accordingly, 13% of total interconnected VoIP subscriptions were categorized as standalone VoIP in December 2013 and, by contrast, 10% of total interconnected VoIP subscriptions were categorized as over-the-top VoIP in December 2014. U.S. Federal Communications Commission 1 Voice Telephone Services: Status as of December 31, 2019 Retail Voice Telephone Service Connections Retail voice telephone service customers are served by two wireline technologies – end-user switched access lines and interconnected VoIP subscriptions – and by mobile wireless subscriptions.4 • In December 2019, there were 38 million end-user switched access lines in service, 68 million interconnected VoIP subscriptions, and 356 million mobile subscriptions, for a total of 462 million retail voice telephone service connections in the United States. See Figure 1. • Over the three-year period presented in Figure 1, interconnected VoIP subscriptions increased at a compound annual growth rate of 2%, mobile voice subscriptions increased at a compound annual growth rate of 2%, and retail switched access lines declined at a compound annual growth rate of 13% per year.5 Figure 1 Retail Voice Telephone Service Connections, 2016-2019 (In thousands) 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Dec 2016 Jun 2017 Dec 2017 Jun 2018 Dec 2018 Jun 2019 Dec 2019 Mobile Voice Subscriptions 338,238 335,718 340,113 342,564 348,242 351,474 355,763 Interconnected VoIP Subscriptions 63,137 64,427 66,496 65,958 66,818 66,495 67,981 Retail Switched Access Lines 58,169 54,776 49,712 46,989 43,515 40,958 38,450 Note: Some previously published data have been revised. • Of the 106 million wireline retail voice telephone service connections (including both switched access lines and interconnected VoIP subscriptions) in December 2019, 52 million (or 49%) were residential connections and 55 million (or 51%) were business connections.6 See Figure 2. 4 The presentation of mobile wireless telephone subscriber counts in this report does not constitute, or imply, Commission analysis of the extent to which wireline and mobile wireless telephone services are demand substitutes or complements in general or in any particular situation. 5 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 (in this case, 3 years, so the power is 1/3). Third, subtract the number one from the result of the second step. U.S. Federal Communications Commission 2 Voice Telephone Services: Status as of December 31, 2019 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, and Customer Type as of December 31, 2019 (In thousands) Total Switched Access Interconnected Total Lines VoIP ILEC 29,897 12,310 42,207 Non-ILEC 8,553 55,671 64,224 Total 38,450 67,981 106,431 Residential ILEC 14,603 7,966 22,569 Non-ILEC 893 28,331 29,224 Residential Total 15,496 36,297 51,794 Business ILEC 15,294 4,344 19,638 Non-ILEC 7,660 27,340 35,000 Business Total 22,953 31,684 54,638 Note: Figures may not sum to totals due to rounding. A voice service affiliate of an ILEC that is operating outside of the ILEC’s traditional service area (“study area”) is a Non-ILEC. Residential ILEC, Switched, ILEC, VoIP, 28.2 % 15.4 % Non-ILEC, Switched, 1.7 % Non-ILEC, VoIP, 54.7 % Business ILEC, Switched, ILEC, VoIP, 28.0% 8.0% Non-ILEC, Switched, 14.0% Non-ILEC, VoIP, 50.0% U.S. Federal Communications Commission 3 Voice Telephone Services: Status as of December 31, 2019 • Cross-classified by technology and the retailer’s regulatory status in Figure 2, the 52 million wireline residential connections in December 2019 were: 28.2% ILEC switched access lines, 54.7% non-ILEC interconnected VoIP subscriptions, 15.4% ILEC interconnected VoIP subscriptions, and 1.7% non-ILEC switched access lines. Similarly, the 55 million wireline business connections were: 28.0% ILEC switched access lines, 50.0% non-ILEC interconnected VoIP subscriptions, 8.0% ILEC interconnected VoIP subscriptions, and 14.0% non-ILEC switched access lines. Retail Service Relationships Respondents submit two types of information about retail service relationships on the current Form 477. • Interconnected VoIP service retailers distinguish over-the-top (“OTT”) interconnected VoIP subscriptions— where the end user accesses the service using a broadband connection from an entity that is not affiliated with the VoIP service retailer—from all other interconnected VoIP subscriptions.7 See Figure 3. • Retailers of switched access lines and retailers of interconnected VoIP service distinguish between sales to end users who also purchase Internet access from them (including affiliates) and those who do not. See Figure 4. 7 A broadband connection may or may not provide the end user with internet access. U.S. Federal Communications Commission 4 Voice Telephone Services: Status as of December 31, 2019 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of December 31, 2019 (In thousands) Total Over-the-Top All Other Total (OTT) VoIP ILEC 71 12,240 12,310 Non-ILEC 11,715 43,956 55,671 Total 11,786 56,195 67,981 Residential ILEC 2 7,964 7,966 Non-ILEC 2,249 26,082 28,331 Residential Total 2,251 34,046 36,297 Business ILEC 69 4,275 4,344 Non-ILEC 9,467 17,874 27,340 Business Total 9,535 22,149 31,684 Note: Figures may not sum to totals due to rounding. Residential ILEC, All Other, 21.9% Non-ILEC, All Other, 71.9% Non-ILEC, OTT, 6.2% ILEC, OTT, 0.0% Business ILEC, All Other, 13.5% Non-ILEC, All Other, 56.4% Non-ILEC, OTT, 29.9% ILEC, OTT, 0.2% U.S. Federal Communications Commission 5 Voice Telephone Services: Status as of December 31, 2019 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service By Regulatory Status as of December 31, 2019 (In thousands) Total ILEC Non-ILEC Total Switched Access Lines 29,897 8,553 38,450 Over-the-Top VoIP 71 11,715 11,786 All Other VoIP 12,240 43,956 56,195 Total 42,207 64,224 106,431 Sold with Internet Switched Access Lines 11,172 2,705 13,878 Over-the-Top VoIP 0 0 0 All Other VoIP 11,860 38,381 50,241 Total 23,032 41,086 64,119 Sold Without Internet Switched Access Lines 18,725 5,848 24,572 Over-the-Top VoIP 71 11,715 11,786 All Other VoIP 380 5,575 5,954 Total 19,175 23,138 42,312 Note: Figures may not sum totals due to rounding. ILEC Only Voice Sold 45.4% VoIP & Internet Switched Access Lines & Internet 28.1% 26.5% Non-ILEC Only Voice Sold 36.0% Switched Access Lines & Internet 4.2% VoIP & Internet 59.8% U.S. Federal Communications Commission 6 Voice Telephone Services: Status as of December 31, 2019 Detailed Voice Telephone Services Data • Table 1 summarizes national-level voice telephone service subscription data for December 2018, and for June and December 2019, for individual data elements collected by FCC Form 477. • Table 2 shows the number of entities that reported subscription data for the same time periods. • Table 3 shows residential wireline voice telephone service connections by state for December 2019. • Table 4 shows mobile voice telephone service subscriptions by state for December 2019. Tables 1, 2, 3, and 4 are available in Excel format at https://www.fcc.gov/voice-telephone-services-report. Also available at that page are: • State-level Subscriptions table in Excel format (data back to December 2018) • State-level Number of Providers table in Excel format (data back to December 2018) • County-level Subscription information in Excel format (data back to June 2014) • CSV-format file of the consistent data series that are available back to December 2008, when interconnected VoIP retailers were first required to report subscription information on Form 477. Earlier data, back to December 1999, are available in the Local Telephone Competition reports at https://www.fcc.gov/general/local-telephone-competition-reports. However, researchers using the complete data series for trend analysis should be aware of the following discontinuities in the data. • Between December 1999 and December 2004, Form 477 collected state-by-state data only from local exchange carriers with at least 10,000 end-user switched access lines in service in the state, and from facilities-based mobile voice carriers with at least 10,000 mobile voice subscriptions in service in the state. • Prior to December 2008, interconnected VoIP service retailers were not required to submit Form 477, but an unknown amount of interconnected VoIP service was included along with the switched access lines reported by some Form 477 filers. • As discussed earlier in this report, the category standalone interconnected VoIP that was reported from December 2008 to December 2013 is different (that is, includes more subscriptions) than the category over- the-top interconnected VoIP that is reported starting with the June 2014 data. 8 8 See footnote 3, above. U.S. Federal Communications Commission 7 Voice Telephone Services: Status as of December 31, 2019 Table 1. Voice Subscriptions (in Thousands) - Total for US Dec June Dec Reference Data element 2018 2019 2019 1 Mobile telephony 348,242 351,474 355,763 2 Directly-billed or prepaid 308,726 310,668 314,122 3 Not directly-billed or prepaid 39,516 40,807 41,641 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 110,333 107,452 106,431 5 Incumbent LECs 47,256 44,639 42,207 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 63,077 62,813 64,224 7 Consumer-grade service 56,209 53,862 51,794 8 Incumbent LECs 25,604 24,027 22,569 9 Other (Non-ILECs) 30,605 29,835 29,224 10 Business & Government-grade service 54,124 53,590 54,638 11 Incumbent LECs 21,652 20,612 19,638 12 Other (Non-ILECs) 32,472 32,978 35,000 13 Local exchange telephone service (Switched Access Lines) 43,515 40,958 38,450 14 Incumbent LECs 34,054 31,975 29,897 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 9,460 8,982 8,553 16 Consumer-grade service 17,609 16,470 15,496 17 Incumbent LECs 16,568 15,511 14,603 18 Other (Non-ILECs) 1,041 959 893 19 Business & Government-grade service 25,906 24,488 22,953 20 Incumbent LECs 17,486 16,465 15,294 21 Other (Non-ILECs) 8,419 8,023 7,660 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 66,818 66,495 67,981 23 Incumbent LECs 13,201 12,663 12,310 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 53,617 53,831 55,671 25 Consumer-grade service 38,600 37,393 36,297 26 Incumbent LECs 9,036 8,516 7,966 27 Other (Non-ILECs) 29,564 28,877 28,331 28 Business & Government-grade service 28,218 29,102 31,684 29 Incumbent LECs 4,165 4,147 4,344 30 Other (Non-ILECs) 24,053 24,955 27,340 31 Over-the-top interconnected VoIP 10,039 10,928 11,786 32 Incumbent LECs 69 70 71 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 9,969 10,858 11,715 34 Consumer-grade service 2,318 2,268 2,251 35 Incumbent LECs 2 2 2 36 Other (Non-ILECs) 2,316 2,266 2,249 37 Business & Government-grade service 7,720 8,659 9,535 38 Incumbent LECs 67 68 69 39 Other (Non-ILECs) 7,653 8,591 9,467 40 All Other interconnected VoIP 56,780 55,568 56,195 41 Incumbent LECs 13,132 12,594 12,240 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 43,648 42,974 43,956 43 Consumer-grade service 36,282 35,124 34,046 44 Incumbent LECs 9,034 8,514 7,964 45 Other (Non-ILECs) 27,249 26,610 26,082 46 Business & Government-grade service 20,498 20,443 22,149 47 Incumbent LECs 4,098 4,080 4,275 48 Other (Non-ILECs) 16,400 16,364 17,874 49 Local exchange telephone service by last-mile delivery medium 43,515 40,958 38,450 50 Fiber-to-the-premises 5,714 4,604 4,469 51 Incumbent LECs 3,851 2,784 2,711 52 Other (Non-ILECs) 1,863 1,820 1,757 53 Coaxial cable 480 542 466 54 Incumbent LECs 56 56 47 55 Other (Non-ILECs) 424 486 419 U.S. Federal Communications Commission 8 Voice Telephone Services: Status as of December 31, 2019 Table 1. Voice Subscriptions (in Thousands) - Total for US Dec June Dec Reference Data element 2018 2019 2019 56 Terrestrial fixed wireless 29 30 34 57 Incumbent LECs 14 13 15 58 Other (Non-ILECs) 15 17 18 59 Copper local loop 37,292 35,782 33,481 60 Incumbent LECs 30,134 29,123 27,123 61 Other (Non-ILECs) 7,158 6,658 6,358 62 All Other interconnected VoIP by last-mile delivery medium 56,780 55,568 56,195 63 Fiber-to-the-premises 8,843 8,633 8,920 64 Incumbent LECs 6,230 6,239 6,080 65 Other (Non-ILECs) 2,613 2,395 2,840 66 Coaxial cable 34,385 33,950 33,409 67 Incumbent LECs 7 8 11 68 Other (Non-ILECs) 34,378 33,942 33,398 69 Terrestrial fixed wireless or satellite 189 201 206 70 Incumbent LECs 0 0 0 71 Other (Non-ILECs) 189 200 206 72 Copper local loop 13,363 12,784 13,660 73 Incumbent LECs 6,895 6,347 6,148 74 Other (Non-ILECs) 6,468 6,437 7,512 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 9,460 8,982 8,553 76 Provided over owned last-mile facilities 3,162 3,082 2,936 77 Provided over UNE-L obtained from unaffiliated entity 1,440 1,352 1,473 78 Provided over other services obtained from unaffiliated entity 4,859 4,548 4,144 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 4,686 4,526 4,130 80 Wholesale lines 3,015 2,870 2,723 81 UNE-L 1,671 1,657 1,407 82 Local exchange telephone service and long-distance service 43,515 40,958 38,450 83 Consumer-grade service 17,609 16,470 15,496 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 11,189 10,515 9,779 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 5,379 4,996 4,824 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 861 799 736 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 180 160 157 88 Business & Government-grade service 25,906 24,488 22,953 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 9,613 9,371 8,621 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 7,873 7,094 6,673 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 6,001 6,075 5,808 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 2,418 1,948 1,851 93 End user buys local exchange telephone service and Internet access service from same entity 15,520 15,546 13,878 94 End user buys both services from incumbent LEC or affiliates 12,292 12,332 11,172 95 End user buys both services from Non-ILEC or affiliates 3,229 3,213 2,705 96 End user buys interconnected VoIP and Internet access service from same entity 51,930 50,354 50,241 97 End user buys both services from incumbent LEC or affiliates 12,828 12,288 11,860 98 End user buys both services from Non-ILEC or affiliates 39,103 38,067 38,381 U.S. Federal Communications Commission 9 Voice Telephone Services: Status as of December 31, 2019 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US Dec June Dec Reference Data element 2018 2019 2019 1 Mobile telephony 72 71 69 2 Directly-billed or prepaid 72 71 69 3 Not directly-billed or prepaid 7 7 8 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 1,917 1,971 2,028 5 Incumbent LECs 727 723 715 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,498 1,560 1,626 7 Consumer-grade service 1,278 1,294 1,315 8 Incumbent LECs 727 722 715 9 Other (Non-ILECs) 846 876 905 10 Business & Government-grade service 1,820 1,871 1,923 11 Incumbent LECs 723 719 711 12 Other (Non-ILECs) 1,400 1,459 1,521 13 Local exchange telephone service (Switched Access Lines) 993 977 966 14 Incumbent LECs 724 720 709 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 514 505 507 16 Consumer-grade service 897 881 871 17 Incumbent LECs 724 719 709 18 Other (Non-ILECs) 408 401 403 19 Business & Government-grade service 975 963 952 20 Incumbent LECs 721 717 707 21 Other (Non-ILECs) 494 489 490 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 1,325 1,398 1,464 23 Incumbent LECs 135 143 144 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,269 1,342 1,403 25 Consumer-grade service 610 641 671 26 Incumbent LECs 77 81 80 27 Other (Non-ILECs) 566 595 625 28 Business & Government-grade service 1,231 1,299 1,364 29 Incumbent LECs 128 138 139 30 Other (Non-ILECs) 1,182 1,247 1,307 31 Over-the-top interconnected VoIP 813 859 907 32 Incumbent LECs 29 30 31 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 802 848 893 34 Consumer-grade service 181 181 177 35 Incumbent LECs 13 13 12 36 Other (Non-ILECs) 174 172 170 37 Business & Government-grade service 770 814 863 38 Incumbent LECs 26 27 28 39 Other (Non-ILECs) 762 805 852 40 All Other interconnected VoIP 739 782 805 41 Incumbent LECs 125 136 137 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 684 727 745 43 Consumer-grade service 492 520 554 44 Incumbent LECs 70 75 75 45 Other (Non-ILECs) 451 477 512 46 Business & Government-grade service 671 711 733 47 Incumbent LECs 119 131 133 48 Other (Non-ILECs) 622 660 676 49 Local exchange telephone service by last-mile delivery medium 993 977 966 50 Fiber-to-the-premises 758 757 758 51 Incumbent LECs 601 611 613 52 Other (Non-ILECs) 368 362 369 53 Coaxial cable 83 83 79 54 Incumbent LECs 23 21 17 55 Other (Non-ILECs) 69 72 71 U.S. Federal Communications Commission 10 Voice Telephone Services: Status as of December 31, 2019 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US Dec June Dec Reference Data element 2018 2019 2019 56 Terrestrial fixed wireless 79 76 74 57 Incumbent LECs 50 41 40 58 Other (Non-ILECs) 42 45 48 59 Copper local loop 784 774 748 60 Incumbent LECs 581 574 552 61 Other (Non-ILECs) 330 324 318 62 All Other interconnected VoIP by last-mile delivery medium 739 782 805 63 Fiber-to-the-premises 481 512 543 64 Incumbent LECs 113 123 125 65 Other (Non-ILECs) 432 459 491 66 Coaxial cable 215 221 216 67 Incumbent LECs 9 12 10 68 Other (Non-ILECs) 211 214 209 69 Terrestrial fixed wireless or satellite 252 282 283 70 Incumbent LECs 12 11 10 71 Other (Non-ILECs) 243 274 276 72 Copper local loop 220 229 225 73 Incumbent LECs 52 56 57 74 Other (Non-ILECs) 193 199 193 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 514 505 507 76 Provided over owned last-mile facilities 380 382 380 77 Provided over UNE-L obtained from unaffiliated entity 110 101 105 78 Provided over other services obtained from unaffiliated entity 199 188 191 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 21 21 20 80 Wholesale lines 19 19 18 81 UNE-L 10 10 10 82 Local exchange telephone service and long-distance service 993 977 966 83 Consumer-grade service 897 881 871 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 677 674 668 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 670 671 662 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 384 378 380 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 272 275 271 88 Business & Government-grade service 975 963 952 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 676 671 667 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 645 652 638 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 450 445 444 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 323 309 315 93 End user buys local exchange telephone service and Internet access service from same entity 906 885 877 94 End user buys both services from incumbent LEC or affiliates 707 704 693 95 End user buys both services from Non-ILEC or affiliates 437 421 426 96 End user buys interconnected VoIP and Internet access service from same entity 671 711 741 97 End user buys both services from incumbent LEC or affiliates 117 124 128 98 End user buys both services from Non-ILEC or affiliates 620 662 686 U.S. Federal Communications Commission 11 Voice Telephone Services: Status as of December 31, 2019 Table 3: Residential Wireline Voice Telephone Service Connections and Households by State as of December 31, 2019 (Connections and households, in thousands) Switched Access Interconnected VoIP Total State Households Connections Ratio Connections Ratio Connections Ratio Alaska 253 * * * * 87 0.34 Alabama 1,868 246 0.13 437 0.23 683 0.37 Arkansas 1,158 173 0.15 167 0.14 340 0.29 American Samoa 10 4 0.41 - - 4 0.41 Arizona 2,571 247 0.10 569 0.22 817 0.32 California 13,044 1,439 0.11 4,231 0.32 5,670 0.43 Colorado 2,149 302 0.14 502 0.23 804 0.37 Connecticut 1,371 154 0.11 681 0.50 835 0.61 District of Columbia 284 41 0.14 92 0.32 132 0.46 Delaware 363 35 0.10 205 0.56 240 0.66 Florida 7,736 614 0.08 2,631 0.34 3,244 0.42 Georgia 3,759 567 0.15 960 0.26 1,527 0.41 Guam 42 21 0.50 * * * * Hawaii 459 95 0.21 129 0.28 224 0.49 Iowa 1,265 310 0.24 211 0.17 520 0.41 Idaho 630 104 0.17 44 0.07 149 0.24 Illinois 4,846 470 0.10 1,322 0.27 1,793 0.37 Indiana 2,570 326 0.13 532 0.21 858 0.33 Kansas 1,129 139 0.12 199 0.18 338 0.30 Kentucky 1,735 385 0.22 339 0.20 724 0.42 Louisiana 1,739 198 0.11 439 0.25 637 0.37 Massachusetts 2,617 241 0.09 1,375 0.53 1,616 0.62 Maryland 2,205 241 0.11 1,038 0.47 1,279 0.58 Maine 560 123 0.22 169 0.30 291 0.52 Michigan 3,935 328 0.08 1,114 0.28 1,442 0.37 Minnesota 2,186 462 0.21 415 0.19 877 0.40 Missouri 2,415 304 0.13 527 0.22 831 0.34 Northern Mariana Isl 16 7 0.44 * * * * Mississippi 1,104 129 0.12 165 0.15 294 0.27 Montana 428 103 0.24 77 0.18 180 0.42 North Carolina 3,965 586 0.15 1,095 0.28 1,681 0.42 North Dakota 318 79 0.25 27 0.08 105 0.33 Nebraska 759 156 0.21 134 0.18 289 0.38 New Hampshire 532 92 0.17 237 0.45 329 0.62 New Jersey 3,232 273 0.08 1,948 0.60 2,221 0.69 New Mexico 780 152 0.19 104 0.13 257 0.33 Nevada 1,099 103 0.09 302 0.27 405 0.37 New York 7,343 732 0.10 3,570 0.49 4,302 0.59 Ohio 4,676 615 0.13 1,225 0.26 1,840 0.39 Oklahoma 1,480 171 0.12 257 0.17 428 0.29 Oregon 1,612 226 0.14 344 0.21 570 0.35 Pennsylvania 5,053 889 0.18 1,978 0.39 2,867 0.57 Puerto Rico 1,193 * * * * * * Rhode Island 410 37 0.09 182 0.44 219 0.53 South Carolina 1,922 321 0.17 440 0.23 761 0.40 South Dakota 344 86 0.25 36 0.10 122 0.35 Tennessee 2,597 389 0.15 553 0.21 942 0.36 Texas 9,692 821 0.08 2,171 0.22 2,992 0.31 Utah 977 115 0.12 173 0.18 288 0.29 Virginia 3,151 434 0.14 1,137 0.36 1,571 0.50 Virgin Islands 30 * * * * 11 0.37 Vermont 260 94 0.36 81 0.31 175 0.67 Washington 2,848 377 0.13 709 0.25 1,086 0.38 Wisconsin 2,358 354 0.15 571 0.24 924 0.39 West Virginia 733 198 0.27 206 0.28 404 0.55 Wyoming 230 40 0.17 39 0.17 79 0.34 United States 122,046 15,496 0.13 36,297 0.30 51,794 0.42 - = Rounds to Zero; * = Data withheld to maintain firm confidentiality. Notes: Numbers may not sum to totals due to rounding. Total fixed voice connections equal the sum of switched access lines and interconnected VoIP subscriptions. We calculate residential fixed voice connections per household using, in the denominator, U.S. household estimates from the 2015-2019 ACS 5-year estimates and, for Puerto Rico and the other inhabited island areas, Census 2010 households. U.S. Federal Communications Commission 12 Voice Telephone Services: Status as of December 31, 2019 Table 4: Mobile Voice Telephone Service Subscriptions and Population by State as of December 31, 2019 (Connections and population, in thousands) Directly-Billed Not Directly-Billed Total State Population Subscriptions Ratio Subscriptions Ratio Subscriptions Ratio Alaska 737 680 0.92 30 0.04 710 0.96 Alabama 4,876 4,310 0.88 745 0.15 5,055 1.04 Arkansas 2,999 2,379 0.79 788 0.26 3,167 1.06 American Samoa 56 * * * * * * Arizona 7,050 6,480 0.92 717 0.10 7,197 1.02 California 39,283 40,998 1.04 3,453 0.09 44,451 1.13 Colorado 5,610 5,403 0.96 723 0.13 6,126 1.09 Connecticut 3,575 3,446 0.96 367 0.10 3,812 1.07 District of Columbia 693 1,382 2.00 212 0.31 1,593 2.30 Delaware 957 854 0.89 134 0.14 988 1.03 Florida 20,902 20,304 0.97 1,975 0.09 22,279 1.07 Georgia 10,404 9,782 0.94 1,512 0.15 11,295 1.09 Guam 159 188 1.18 - - 188 1.18 Hawaii 1,422 1,487 1.05 133 0.09 1,620 1.14 Iowa 3,140 2,829 0.90 364 0.12 3,193 1.02 Idaho 1,718 1,557 0.91 184 0.11 1,741 1.01 Illinois 12,771 12,776 1.00 1,450 0.11 14,226 1.11 Indiana 6,666 5,646 0.85 1,093 0.16 6,739 1.01 Kansas 2,911 2,549 0.88 684 0.23 3,233 1.11 Kentucky 4,449 3,697 0.83 650 0.15 4,347 0.98 Louisiana 4,664 4,314 0.92 1,151 0.25 5,465 1.17 Massachusetts 6,851 7,165 1.05 847 0.12 8,012 1.17 Maryland 6,019 6,084 1.01 760 0.13 6,844 1.14 Maine 1,335 1,035 0.77 297 0.22 1,332 1.00 Michigan 9,965 9,406 0.94 1,317 0.13 10,723 1.08 Minnesota 5,563 5,152 0.93 804 0.14 5,956 1.07 Missouri 6,105 5,545 0.91 864 0.14 6,409 1.05 Northern Mariana Isl 54 * * * * * * Mississippi 2,984 2,441 0.82 373 0.12 2,814 0.94 Montana 1,051 871 0.83 177 0.17 1,048 1.00 North Carolina 10,265 9,014 0.88 1,386 0.14 10,400 1.01 North Dakota 757 690 0.91 102 0.13 792 1.05 Nebraska 1,915 1,784 0.93 233 0.12 2,016 1.05 New Hampshire 1,348 1,155 0.86 206 0.15 1,361 1.01 New Jersey 8,879 8,972 1.01 1,211 0.14 10,183 1.15 New Mexico 2,092 1,881 0.90 204 0.10 2,085 1.00 Nevada 2,972 2,827 0.95 327 0.11 3,155 1.06 New York 19,572 20,955 1.07 3,280 0.17 24,235 1.24 Ohio 11,655 11,031 0.95 1,676 0.14 12,706 1.09 Oklahoma 3,933 3,405 0.87 459 0.12 3,865 0.98 Oregon 4,130 3,885 0.94 496 0.12 4,381 1.06 Pennsylvania 12,792 11,771 0.92 2,094 0.16 13,864 1.08 Puerto Rico 3,318 2,763 0.83 281 0.08 3,045 0.92 Rhode Island 1,057 931 0.88 116 0.11 1,047 0.99 South Carolina 5,021 4,171 0.83 784 0.16 4,956 0.99 South Dakota 871 721 0.83 132 0.15 853 0.98 Tennessee 6,709 6,316 0.94 920 0.14 7,236 1.08 Texas 28,261 27,878 0.99 2,491 0.09 30,369 1.07 Utah 3,097 2,771 0.89 282 0.09 3,053 0.99 Virginia 8,454 7,870 0.93 972 0.11 8,842 1.05 Virgin Islands 106 * * * * * * Vermont 624 472 0.76 129 0.21 601 0.96 Washington 7,404 7,001 0.95 866 0.12 7,867 1.06 Wisconsin 5,791 5,001 0.86 819 0.14 5,820 1.01 West Virginia 1,817 1,359 0.75 280 0.15 1,639 0.90 Wyoming 581 526 0.91 87 0.15 613 1.06 United States 328,391 314,122 0.96 41,641 0.13 355,763 1.08 - = Rounds to Zero; * = Data withheld to maintain firm confidentiality. Notes: Numbers may not sum to totals due to rounding. Directly-billed subscriptions are those where the customer is directly billed by the facilities-based provider. Total mobile voice subscriptions equal the sum of subscriptions that are directly-billed and those that are not. We calculate mobile voice subscriptions per person using, in the denominator, U.S. population estimates from the 2015-2019 ACS 5-year estimates and, for Puerto Rico and the other inhabited island areas, Census 2010 populations. U.S. Federal Communications Commission 13 Voice Telephone Services: Status as of December 31, 2019 Technical Notes Detailed information about the current Form 477 reporting requirements is available at https://www.fcc.gov/general/form-477-resources-filers. Counting lines and subscribers • Form 477 counts both switched access lines and interconnected VoIP subscriptions as the maximum number of calls that may be active, simultaneously, from the end user’s location under the purchased service plan. All VoIP subscriptions discussed in this report are interconnected VoIP subscriptions. • Form 477 data may not count all VoIP phone connections to Internet Protocol Private Branch Exchange (IP PBX) equipment that is owned by business end users because of the variety of ways the IP PBX may connect to the public switched telephone network. Holding company-subsidiary relationships • When counting service providers that report voice telephone service in a particular geography, we count a holding company or common-control entity no more than once in any specified sub-category of total providers. • Nationwide counts of providers are unique counts for any specified sub-category of total providers (for example, all non-ILECs or all interconnected VoIP providers); an entity operating in multiple states is counted only once. ILEC-CLEC affiliations • If a CLEC is affiliated with an ILEC and reports some end-user switched access lines or interconnected VoIP subscriptions in the ILEC’s service area in the state, then the switched access lines or interconnected VoIP subscriptions reported by the CLEC are allocated between the ILEC and non-ILEC categories based on staff estimates. Mobile voice subscriptions • Commercial mobile radio service carriers that own or operate wireless networks report both their retail voice service subscriptions and the retail subscriptions of the mobile voice service resellers that use their network. Mobile voice service resellers do not file Form 477. • Providers may assign subscriptions to a particular state based on the area code of the device’s telephone number, or by using some other method that best reflects the subscriber’s location, such as a billing address of the device’s place of primary use address. UNE-Platform lines replaced by commercial agreements • UNE-Platform (UNE-P) was the combination of ILEC loop UNE, switching UNE, and transport UNE. The Commission directed CLECs to migrate their retail customers served by UNE-P to an alternative arrangement within 12 months of the effective date of the Triennial Review Remand Order, that is, by March 11, 2006. See C.F.R. § 51.319(d)(2)(ii). Such lines are reported on Form 477 as ILEC wholesale lines provided to unaffiliated providers for resale. U.S. Federal Communications Commission 14 Voice Telephone Services: Status as of December 31, 2019 Glossary Term Definition All Other interconnected Interconnected VoIP service other than OTT interconnected VoIP. (See VoIP the definition of OTT VoIP, below.) Broadband connection A wired line or wireless channel that terminates at an end-user location and enables the end user to receive information from and/or send information to the Internet at information transfer rates exceeding 200 kilobits per second in at least one direction. Circuit switching A method of completing electronic communications in which a transmission path is established for dedicated use by a communication; the basis of the public switched telephone network. Coaxial cable The technology widely used by cable system operators to terminate their services at the end user’s premises. Copper local loop The technology widely used by telephone companies to terminate their service at the end user’s premises. CLEC Competitive Local Exchange Carrier: A local exchange carrier (LEC) that operates within the traditional service area of an unaffiliated incumbent LEC. End users Residential, business, institutional, or government entities that use services for their own purposes and who do not resell such services to other entities. Fixed wireless service A radio communication service between specified fixed points. FTTP or FTTH Fiber to the Premises (Home): A network access architecture in which optical fiber is deployed all the way to the customer’s premises (home). Internet access service Service that provides end users access to the Internet. ILEC Incumbent Local Exchange Carrier: A company or cooperative that was providing telephone service in a localized area, typically on a monopoly basis, prior to enactment of the Telecommunications Act of 1996. Internet protocol or IP A language and set of formal rules that govern how packets transit the Internet. Interconnected VoIP A service that enables real-time, two-way voice communications; requires a broadband connection from the user’s location; requires Internet- protocol compatible customer premises equipment; and permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. LEC Local Exchange Carrier: A company that provides telephone service within a localized area and access services that connect its customers to long-distance (Interexchange Carrier) networks. Local loop The physical connection between the customer’s premises and the telephone company’s local switching office, typically provided using copper, fiber, or a combination of copper and fiber facilities. Mobile wireless service A radio communication service between mobile and fixed stations, or between mobile stations. U.S. Federal Communications Commission 15 Voice Telephone Services: Status as of December 31, 2019 Non-ILEC Any provider of communications services who does not have ILEC regulatory status. A voice-service affiliate of an ILEC that is operating outside the ILEC’s traditional service area (“study area”) is a Non-ILEC. OTT interconnected VoIP Over-the-top interconnected VoIP: Service delivered to the end-user customer’s premises over a high-capacity connection that the customer obtains (that is, buys), or has the use of, from an entity not affiliated with the interconnected VoIP service provider. (Colloquially, “bring-your- own-broadband.”) PBX Private Branch Exchange: A communications switch that is owned or leased by the service provider’s end-user customer and generally located on the customer’s premises. Packet switching A method of completing electronic communications in which the information is disassembled into discrete packets that are transmitted independently and later reassembled; IP is an example. Retail wireline voice Switched access lines and interconnected VoIP subscriptions for which an telephone service end user is the customer. Switched access line A service connection between an end user and the local telephone company’s switch; the basis of plain old telephone service (POTS). UNE Unbundled Network Element: A physical or functional element of an ILEC network that must be provided to a CLEC at a cost-based price, as provide for in the Telecommunications Act of 1996. UNE-L UNE-Loop: An ILEC unbundled local loop provided to a CLEC at a cost-based price. Wholesale switched access Local telephone service provided to an unaffiliated telephone company, lines which resells the service to end users; typically provided by an ILEC to a CLEC. U.S. Federal Communications Commission 16 Voice Telephone Services: Status as of December 31, 2019 Customer Response Publication: Voice Telephone Services: Status as of December 31, 2019 You can help us provide the best possible information to the public by completing this form and returning it to the Industry Analysis Division of the FCC's Office of Economics and Analytics. 1. Please check the category that best describes you: ____ press ____ current telecommunications carrier ____ potential telecommunications carrier ____ business customer evaluating vendors/service options ____ consultant, law firm, lobbyist ____ other business customer ____ academic/student ____ residential customer ____ FCC employee ____ other federal government employee ____ state or local government employee ____ Other (please specify) 2. Please rate the report: Excellent Good Satisfactory Poor No opinion Data accuracy (_) (_) (_) (_) (_) Data presentation (_) (_) (_) (_) (_) Timeliness of data (_) (_) (_) (_) (_) Completeness of data (_) (_) (_) (_) (_) Text clarity (_) (_) (_) (_) (_) Completeness of text (_) (_) (_) (_) (_) 3. Overall, how do you Excellent Good Satisfactory Poor No opinion rate this report? (_) (_) (_) (_) (_) 4. How can this report be improved? 5. May we contact you to discuss possible improvements? Name: Telephone #: To discuss the information in this report, contact: 202-418-0940 or for users of TTY equipment, call 202-418-0484 Fax this response to 202-418-0520 or Mail this response to Scan and email to FCC/OEA/IAD, Mail Stop 1600 F OEA-IADReports@fcc.gov Washington, DC 20554 U.S. Federal Communications Commission 17 Voice Telephone Services: Status as of December 31, 2019