Voice Telephone Services: Status as of December 31, 2020 Industry Analysis Division Office of Economics and Analytics August 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, 2017-2020 ........................................................ 2 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, and Customer Type as of December 31, 2020 ............................................ 3 Retail Service Relationships ............................................................................................................................. 4 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of December 31, 2020 ............................................ 5 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service by Regulatory Status as of December 31, 2020 .................................. 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, 2020 ........................................................................................... 12 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of December 31, 2020 ........................................................................................... 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, 2020 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of December 31, 2020 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, 2020 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, 2020 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 2020, there were 34 million end-user switched access lines in service, 67 million interconnected VoIP subscriptions, and 353 million mobile subscriptions, for a total of 454 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 0.4%, mobile voice subscriptions increased at a compound annual growth rate of 1.2%, and retail switched access lines declined at a compound annual growth rate of 11.5% per year.5 Figure 1 Retail Voice Telephone Service Connections, 2017 - 2020 (In thousands) Note: Some previously published data have been revised. • Of the 102 million wireline retail voice telephone service connections (including both switched access lines and interconnected VoIP subscriptions) in December 2020, 48 million (or 47%) were residential connections and 54 million (or 53%) were business connections.6 See Figure 2. • We believe mobile voice subscriptions decreased by 2% between December 2019 and June 2020 due to a change in accounting procedures by one or more providers. 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 one from the result of the second step. U.S. Federal Communications Commission 2 Voice Telephone Services: Status as of December 31, 2020 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, And Customer Type as of December 31, 2020 (In thousands) Total Switched Access Interconnected Total Lines VoIP ILEC 26,767 11,586 38,353 Non-ILEC 7,655 55,793 63,448 Total 34,422 67,379 101,801 Residential ILEC 13,027 7,044 20,071 Non-ILEC 809 26,794 27,603 Residential Total 13,837 33,837 47,674 Business ILEC 13,740 4,542 18,282 Non-ILEC 6,845 29,000 35,845 Business Total 20,585 33,542 54,127 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. U.S. Federal Communications Commission 3 Voice Telephone Services: Status as of December 31, 2020 • Cross-classified by technology and the retailer’s regulatory status in Figure 2, the 48 million wireline residential connections in December 2020 were: 27.3% ILEC switched access lines, 56.2% non-ILEC interconnected VoIP subscriptions, 14.8% ILEC interconnected VoIP subscriptions, and 1.7% non-ILEC switched access lines. Similarly, the 54 million wireline business connections were: 25.4% ILEC switched access lines, 53.6% non-ILEC interconnected VoIP subscriptions, 8.4% ILEC interconnected VoIP subscriptions, and 12.6% 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, 2020 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of December 31, 2020 (In thousands) Total Over-the-Top All Other Total (OTT) VoIP ILEC 68 11,518 11,586 Non-ILEC 14,374 41,419 55,793 14,442 52,937 67,379 Total Residential ILEC 1 7,042 7,044 Non-ILEC 1,958 24,835 26,794 1,960 31,877 33,837 Residential Total Business ILEC 67 4,475 4,542 Non-ILEC 12,416 16,584 29,000 Business Total 12,482 21,059 33,542 Note: Figures may not sum to totals due to rounding. U.S. Federal Communications Commission 5 Voice Telephone Services: Status as of December 31, 2020 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service By Regulatory Status as of December 31, 2020 (In thousands) Total ILEC Non-ILEC Total Switched Access Lines 26,767 7,655 34,422 Over-the-Top VoIP 68 14,374 14,442 All Other VoIP 11,518 41,419 52,937 Total 38,353 63,448 101,801 Sold with Internet Switched Access Lines 10,021 2,579 12,600 Over-the-Top VoIP 0 0 0 All Other VoIP 11,160 36,448 47,608 Total 21,181 39,027 60,208 Sold Without Internet Switched Access Lines 16,746 5,076 21,822 Over-the-Top VoIP 68 14,374 14,442 All Other VoIP 358 4,971 5,329 Total 17,172 24,421 41,593 Note: Figures may not sum totals due to rounding. U.S. Federal Communications Commission 6 Voice Telephone Services: Status as of December 31, 2020 Detailed Voice Telephone Services Data • Table 1 summarizes national-level voice telephone service subscription data for December 2019, and for June and December 2020, 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 2020. • Table 4 shows mobile voice telephone service subscriptions by state for December 2020. 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 2019) • State-level Number of Providers table in Excel format (data back to December 2019) • 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, 2020 Table 1. Voice Subscriptions (in Thousands) - Total for US Dec June Dec Reference Data element 2019 2020 2020 1 Mobile telephony 355,763 348,234 352,522 2 Directly-billed or prepaid 314,122 308,767 303,547 3 Not directly-billed or prepaid 41,641 39,467 48,974 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 106,774 104,634 101,801 5 Incumbent LECs 42,208 40,401 38,353 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 64,566 64,233 63,448 7 Consumer-grade service 51,794 50,085 47,674 8 Incumbent LECs 22,570 21,266 20,071 9 Other (Non-ILECs) 29,224 28,819 27,603 10 Business & Government-grade service 54,981 54,549 54,127 11 Incumbent LECs 19,638 19,136 18,282 12 Other (Non-ILECs) 35,343 35,414 35,845 13 Local exchange telephone service (Switched Access Lines) 38,742 36,796 34,422 14 Incumbent LECs 29,897 28,414 26,767 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 8,844 8,382 7,655 16 Consumer-grade service 15,496 14,737 13,837 17 Incumbent LECs 14,603 13,813 13,027 18 Other (Non-ILECs) 893 924 809 19 Business & Government-grade service 23,245 22,059 20,585 20 Incumbent LECs 15,294 14,600 13,740 21 Other (Non-ILECs) 7,951 7,459 6,845 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 68,032 67,839 67,379 23 Incumbent LECs 12,310 11,988 11,586 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 55,722 55,851 55,793 25 Consumer-grade service 36,297 35,348 33,837 26 Incumbent LECs 7,966 7,452 7,044 27 Other (Non-ILECs) 28,331 27,896 26,794 28 Business & Government-grade service 31,735 32,490 33,542 29 Incumbent LECs 4,344 4,535 4,542 30 Other (Non-ILECs) 27,391 27,955 29,000 31 Over-the-top interconnected VoIP 11,788 13,270 14,442 32 Incumbent LECs 71 74 68 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 11,717 13,196 14,374 34 Consumer-grade service 2,251 2,298 1,960 35 Incumbent LECs 2 2 1 36 Other (Non-ILECs) 2,249 2,296 1,958 37 Business & Government-grade service 9,537 10,973 12,482 38 Incumbent LECs 69 73 67 39 Other (Non-ILECs) 9,468 10,900 12,416 40 All Other interconnected VoIP 56,244 54,568 52,937 41 Incumbent LECs 12,240 11,913 11,518 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 44,005 42,655 41,419 43 Consumer-grade service 34,046 33,051 31,877 44 Incumbent LECs 7,964 7,451 7,042 45 Other (Non-ILECs) 26,082 25,600 24,835 46 Business & Government-grade service 22,198 21,518 21,059 47 Incumbent LECs 4,275 4,462 4,475 48 Other (Non-ILECs) 17,923 17,055 16,584 49 Local exchange telephone service by last-mile delivery medium 38,742 36,796 34,422 50 Fiber-to-the-premises 4,687 4,651 4,575 51 Incumbent LECs 2,712 2,728 2,691 52 Other (Non-ILECs) 1,975 1,923 1,884 53 Coaxial cable 466 441 442 54 Incumbent LECs 47 46 52 55 Other (Non-ILECs) 419 394 391 U.S. Federal Communications Commission 8 Voice Telephone Services: Status as of December 31, 2020 Table 1. Voice Subscriptions (in Thousands) - Total for US Dec June Dec Reference Data element 2019 2020 2020 56 Terrestrial fixed wireless 34 30 33 57 Incumbent LECs 15 14 13 58 Other (Non-ILECs) 18 16 20 59 Copper local loop 33,555 31,674 29,366 60 Incumbent LECs 27,123 25,625 24,009 61 Other (Non-ILECs) 6,432 6,049 5,357 62 All Other interconnected VoIP by last-mile delivery medium 56,244 54,568 52,937 63 Fiber-to-the-premises 8,963 8,479 8,364 64 Incumbent LECs 6,080 5,850 5,729 65 Other (Non-ILECs) 2,883 2,629 2,635 66 Coaxial cable 33,409 32,883 32,204 67 Incumbent LECs 11 11 12 68 Other (Non-ILECs) 33,398 32,872 32,192 69 Terrestrial fixed wireless or satellite 206 219 221 70 Incumbent LECs 0 0 0 71 Other (Non-ILECs) 206 219 221 72 Copper local loop 13,666 12,987 12,148 73 Incumbent LECs 6,148 6,052 5,777 74 Other (Non-ILECs) 7,518 6,935 6,371 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 8,844 8,382 7,655 76 Provided over owned last-mile facilities 3,220 3,119 2,956 77 Provided over UNE-L obtained from unaffiliated entity 1,473 1,381 1,164 78 Provided over other services obtained from unaffiliated entity 4,151 3,883 3,531 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 4,130 3,950 3,650 80 Wholesale lines 2,723 2,660 2,466 81 UNE-L 1,407 1,291 1,184 82 Local exchange telephone service and long-distance service 38,742 36,796 34,422 83 Consumer-grade service 15,496 14,737 13,837 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 9,779 9,346 9,057 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 4,824 4,467 3,970 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 736 722 663 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 157 202 147 88 Business & Government-grade service 23,245 22,059 20,585 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 8,621 8,120 8,232 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 6,673 6,481 5,506 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 6,102 5,443 5,008 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 1,849 2,016 1,834 93 End user buys local exchange telephone service and Internet access service from same entity 14,033 13,013 12,600 94 End user buys both services from incumbent LEC or affiliates 11,173 10,691 10,021 95 End user buys both services from Non-ILEC or affiliates 2,860 2,322 2,579 96 End user buys interconnected VoIP and Internet access service from same entity 50,274 49,187 47,608 97 End user buys both services from incumbent LEC or affiliates 11,860 11,555 11,160 98 End user buys both services from Non-ILEC or affiliates 38,414 37,633 36,448 U.S. Federal Communications Commission 9 Voice Telephone Services: Status as of December 31, 2020 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US Dec June Dec Reference Data element 2019 2020 2020 1 Mobile telephony 69 66 65 2 Directly-billed or prepaid 69 65 63 3 Not directly-billed or prepaid 8 7 9 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 2,028 2,103 2,191 5 Incumbent LECs 715 716 713 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,625 1,716 1,815 7 Consumer-grade service 1,315 1,334 1,318 8 Incumbent LECs 715 715 712 9 Other (Non-ILECs) 904 938 932 10 Business & Government-grade service 1,923 1,995 2,088 11 Incumbent LECs 711 711 710 12 Other (Non-ILECs) 1,520 1,608 1,710 13 Local exchange telephone service (Switched Access Lines) 966 965 952 14 Incumbent LECs 709 710 707 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 506 514 507 16 Consumer-grade service 871 870 856 17 Incumbent LECs 709 710 707 18 Other (Non-ILECs) 402 409 401 19 Business & Government-grade service 952 947 939 20 Incumbent LECs 707 707 705 21 Other (Non-ILECs) 489 494 492 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 1,464 1,562 1,671 23 Incumbent LECs 144 161 167 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,403 1,497 1,607 25 Consumer-grade service 671 708 713 26 Incumbent LECs 80 84 92 27 Other (Non-ILECs) 625 662 664 28 Business & Government-grade service 1,364 1,457 1,566 29 Incumbent LECs 139 154 161 30 Other (Non-ILECs) 1,307 1,394 1,504 31 Over-the-top interconnected VoIP 907 977 1,073 32 Incumbent LECs 31 36 33 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 893 962 1,058 34 Consumer-grade service 177 197 178 35 Incumbent LECs 12 12 9 36 Other (Non-ILECs) 170 189 172 37 Business & Government-grade service 863 934 1,029 38 Incumbent LECs 28 34 33 39 Other (Non-ILECs) 852 921 1,014 40 All Other interconnected VoIP 805 842 865 41 Incumbent LECs 137 150 159 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 745 777 804 43 Consumer-grade service 554 573 595 44 Incumbent LECs 75 79 87 45 Other (Non-ILECs) 512 530 548 46 Business & Government-grade service 733 768 789 47 Incumbent LECs 133 144 153 48 Other (Non-ILECs) 676 705 729 49 Local exchange telephone service by last-mile delivery medium 966 965 952 50 Fiber-to-the-premises 758 765 768 51 Incumbent LECs 613 622 632 52 Other (Non-ILECs) 368 374 375 53 Coaxial cable 79 82 87 54 Incumbent LECs 17 20 23 55 Other (Non-ILECs) 71 73 75 U.S. Federal Communications Commission 10 Voice Telephone Services: Status as of December 31, 2020 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US Dec June Dec Reference Data element 2019 2020 2020 56 Terrestrial fixed wireless 74 83 80 57 Incumbent LECs 40 49 49 58 Other (Non-ILECs) 48 51 47 59 Copper local loop 749 744 706 60 Incumbent LECs 552 547 525 61 Other (Non-ILECs) 319 320 306 62 All Other interconnected VoIP by last-mile delivery medium 805 842 865 63 Fiber-to-the-premises 543 571 600 64 Incumbent LECs 125 140 149 65 Other (Non-ILECs) 491 511 543 66 Coaxial cable 216 214 212 67 Incumbent LECs 10 10 12 68 Other (Non-ILECs) 209 207 205 69 Terrestrial fixed wireless or satellite 283 301 314 70 Incumbent LECs 10 11 12 71 Other (Non-ILECs) 276 294 307 72 Copper local loop 226 225 213 73 Incumbent LECs 57 56 61 74 Other (Non-ILECs) 194 194 181 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 506 514 507 76 Provided over owned last-mile facilities 379 399 392 77 Provided over UNE-L obtained from unaffiliated entity 105 103 97 78 Provided over other services obtained from unaffiliated entity 192 177 178 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 20 25 23 80 Wholesale lines 18 23 21 81 UNE-L 10 11 11 82 Local exchange telephone service and long-distance service 966 965 952 83 Consumer-grade service 871 870 856 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 668 668 665 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 662 659 658 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 379 387 380 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 270 274 265 88 Business & Government-grade service 952 947 939 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 667 665 664 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 638 641 637 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 444 457 456 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 313 311 311 93 End user buys local exchange telephone service and Internet access service from same entity 877 882 880 94 End user buys both services from incumbent LEC or affiliates 693 695 696 95 End user buys both services from Non-ILEC or affiliates 425 440 440 96 End user buys interconnected VoIP and Internet access service from same entity 741 768 790 97 End user buys both services from incumbent LEC or affiliates 128 137 147 98 End user buys both services from Non-ILEC or affiliates 686 710 733 U.S. Federal Communications Commission 11 Voice Telephone Services: Status as of December 31, 2020 Table 3: Residential Wireline Voice Telephone Service Connections and Households by State as of December 31, 2020 (Connections and households, in thousands) Switched Access Interconnected VoIP Total State Households Connections Ratio Connections Ratio Connections Ratio Alabama 1,889 218 0.12 405 0.21 623 0.33 Alaska 255 * * * * 83 0.33 American Samoa 10 5 0.52 - * 5 0.52 Arizona 2,643 219 0.08 490 0.19 710 0.27 Arkansas 1,171 162 0.14 136 0.12 298 0.25 California 13,103 1,284 0.10 3,938 0.30 5,222 0.40 Colorado 2,137 267 0.12 482 0.23 749 0.35 Connecticut 1,385 136 0.10 642 0.46 779 0.56 Delaware 371 29 0.08 197 0.53 227 0.61 District of Columbia 288 26 0.09 85 0.29 110 0.38 Florida 7,931 531 0.07 2,438 0.31 2,969 0.37 Georgia 3,830 548 0.14 899 0.23 1,447 0.38 Guam 42 22 0.52 * * * * Hawaii 468 85 0.18 129 0.28 215 0.46 Idaho 649 97 0.15 42 0.06 139 0.21 Illinois 4,884 415 0.08 1,212 0.25 1,627 0.33 Indiana 2,603 286 0.11 495 0.19 781 0.30 Iowa 1,274 278 0.22 194 0.15 472 0.37 Kansas 1,142 125 0.11 179 0.16 304 0.27 Kentucky 1,748 372 0.21 323 0.18 695 0.40 Louisiana 1,752 171 0.10 367 0.21 538 0.31 Maine 570 113 0.20 164 0.29 277 0.49 Maryland 2,231 209 0.09 967 0.43 1,176 0.53 Massachusetts 2,647 203 0.08 1,293 0.49 1,496 0.57 Michigan 3,980 293 0.07 1,052 0.26 1,345 0.34 Minnesota 2,208 416 0.19 392 0.18 807 0.37 Mississippi 1,117 118 0.11 151 0.14 268 0.24 Missouri 2,440 273 0.11 483 0.20 756 0.31 Montana 436 95 0.22 74 0.17 169 0.39 Nebraska 767 140 0.18 123 0.16 263 0.34 Nevada 1,130 88 0.08 269 0.24 357 0.32 New Hampshire 539 84 0.16 227 0.42 311 0.58 New Jersey 3,272 228 0.07 1,818 0.56 2,045 0.62 New Mexico 793 142 0.18 104 0.13 246 0.31 New York 7,417 627 0.08 3,372 0.45 3,999 0.54 North Carolina 4,032 529 0.13 1,057 0.26 1,586 0.39 North Dakota 321 71 0.22 24 0.07 95 0.30 Northern Mariana Islands 16 6 0.37 * * * * Ohio 4,717 554 0.12 1,146 0.24 1,700 0.36 Oklahoma 1,494 155 0.10 218 0.15 373 0.25 Oregon 1,643 201 0.12 339 0.21 540 0.33 Pennsylvania 5,107 718 0.14 1,877 0.37 2,595 0.51 Puerto Rico 1,206 * * * * * * Rhode Island 415 32 0.08 163 0.39 194 0.47 South Carolina 1,961 290 0.15 424 0.22 714 0.36 South Dakota 348 78 0.22 33 0.09 111 0.32 Tennessee 2,639 354 0.13 528 0.20 882 0.33 Texas 9,906 737 0.07 1,949 0.20 2,687 0.27 Utah 1,003 105 0.10 164 0.16 269 0.27 Vermont 263 87 0.33 79 0.30 166 0.63 Virgin Islands 30 * * * * 10 0.34 Virginia 3,184 378 0.12 1,039 0.33 1,417 0.45 Washington 2,906 342 0.12 679 0.23 1,021 0.35 West Virginia 734 186 0.25 171 0.23 357 0.49 Wisconsin 2,378 319 0.13 542 0.23 861 0.36 Wyoming 233 36 0.15 37 0.16 74 0.32 United States 123,657 13,837 0.11 33,837 0.27 47,674 0.39 - = 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 2016-2020 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, 2020 Table 4: Mobile Voice Telephone Service Subscriptions and Population by State as of December 31, 2020 (Connections and population, in thousands) Directly-Billed Not Directly-Billed Total State Population Subscriptions Ratio Subscriptions Ratio Subscriptions Ratio Alabama 4,893 4,328 0.88 857 0.18 5,185 1.06 Alaska 737 687 0.93 35 0.05 721 0.98 American Samoa 56 * * * * * * Arizona 7,174 6,465 0.90 706 0.10 7,171 1.00 Arkansas 3,012 2,445 0.81 777 0.26 3,222 1.07 California 39,346 39,513 1.00 5,564 0.14 45,076 1.15 Colorado 5,685 5,244 0.92 701 0.12 5,945 1.05 Connecticut 3,571 3,486 0.98 487 0.14 3,972 1.11 Delaware 968 893 0.92 161 0.17 1,053 1.09 District of Columbia 702 1,284 1.83 253 0.36 1,537 2.19 Florida 21,217 19,609 0.92 2,729 0.13 22,338 1.05 Georgia 10,517 9,635 0.92 1,725 0.16 11,360 1.08 Guam 159 178 1.12 - * 178 1.12 Hawaii 1,420 1,405 0.99 169 0.12 1,574 1.11 Idaho 1,754 1,566 0.89 201 0.11 1,767 1.01 Illinois 12,716 11,884 0.93 2,152 0.17 14,036 1.10 Indiana 6,697 5,391 0.81 1,337 0.20 6,728 1.00 Iowa 3,150 2,783 0.88 398 0.13 3,180 1.01 Kansas 2,913 2,488 0.85 448 0.15 2,936 1.01 Kentucky 4,462 3,615 0.81 750 0.17 4,365 0.98 Louisiana 4,665 4,131 0.89 794 0.17 4,925 1.06 Maine 1,341 1,040 0.78 308 0.23 1,348 1.01 Maryland 6,038 5,770 0.96 761 0.13 6,530 1.08 Massachusetts 6,873 6,615 0.96 899 0.13 7,514 1.09 Michigan 9,974 8,839 0.89 1,658 0.17 10,497 1.05 Minnesota 5,600 5,032 0.90 806 0.14 5,837 1.04 Mississippi 2,982 2,546 0.85 410 0.14 2,956 0.99 Missouri 6,124 5,271 0.86 818 0.13 6,089 0.99 Montana 1,062 890 0.84 191 0.18 1,081 1.02 Nebraska 1,924 1,727 0.90 288 0.15 2,015 1.05 Nevada 3,030 2,777 0.92 327 0.11 3,104 1.02 New Hampshire 1,355 1,162 0.86 233 0.17 1,395 1.03 New Jersey 8,885 9,147 1.03 1,359 0.15 10,506 1.18 New Mexico 2,097 1,922 0.92 253 0.12 2,175 1.04 New York 19,515 19,068 0.98 3,593 0.18 22,661 1.16 North Carolina 10,386 8,633 0.83 1,910 0.18 10,543 1.02 North Dakota 760 688 0.90 108 0.14 796 1.05 Northern Mariana Islands 54 * * * * * * Ohio 11,675 10,272 0.88 2,134 0.18 12,406 1.06 Oklahoma 3,949 3,348 0.85 513 0.13 3,861 0.98 Oregon 4,176 3,799 0.91 620 0.15 4,419 1.06 Pennsylvania 12,795 11,257 0.88 2,155 0.17 13,412 1.05 Puerto Rico 3,256 2,902 0.89 372 0.11 3,274 1.01 Rhode Island 1,058 988 0.93 139 0.13 1,127 1.07 South Carolina 5,092 4,126 0.81 883 0.17 5,009 0.98 South Dakota 879 733 0.83 135 0.15 868 0.99 Tennessee 6,772 6,023 0.89 1,111 0.16 7,135 1.05 Texas 28,635 27,124 0.95 2,897 0.10 30,021 1.05 Utah 3,151 2,725 0.86 353 0.11 3,078 0.98 Vermont 624 469 0.75 133 0.21 602 0.96 Virgin Islands 106 * * * * * * Virginia 8,509 7,835 0.92 1,157 0.14 8,992 1.06 Washington 7,512 6,963 0.93 938 0.12 7,901 1.05 West Virginia 1,807 1,375 0.76 239 0.13 1,614 0.89 Wisconsin 5,807 4,807 0.83 934 0.16 5,741 0.99 Wyoming 581 526 0.90 93 0.16 619 1.06 United States 330,200 303,547 0.92 48,974 0.15 352,522 1.07 - = 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 2016-2020 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, 2020 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, 2020 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, 2020 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, 2020 Customer Response Publication: Voice Telephone Services: Status as of December 31, 2020 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. 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