Voice Telephone Services: Status as of June 30, 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 June 30, 2020 ..................................................... 3 Retail Service Relationships ............................................................................................................................. 4 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of June 30, 2020 ..................................................... 5 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service by Regulatory Status as of June 30, 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 June 30, 2020 .................................................................................................... 12 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of June 30, 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 June 30, 2020 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of June 30, 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 June 30, 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 June 30, 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 June 2020, there were 37 million end-user switched access lines in service, 68 million interconnected VoIP subscriptions, and 348 million mobile subscriptions, for a total of 453 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 1%, and retail switched access lines declined at a compound annual growth rate of 12% per year.5 Figure 1 Retail Voice Telephone Service Connections, 2017 - 2020 (In thousands) Note: Some previously published data have been revised. • Of the 105 million wireline retail voice telephone service connections (including both switched access lines and interconnected VoIP subscriptions) in June 2020, 50 million (or 48%) were residential connections and 55 million (or 52%) 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 June 30, 2020 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, And Customer Type as of June 30, 2020 (In thousands) Total Switched Access Interconnected Total Lines VoIP ILEC 28,414 11,988 40,401 Non-ILEC 8,382 55,851 64,233 Total 36,796 67,839 104,634 Residential ILEC 13,813 7,452 21,266 Non-ILEC 924 27,896 28,819 Residential Total 14,737 35,348 50,085 Business ILEC 14,600 4,535 19,136 Non-ILEC 7,459 27,955 35,414 Business Total 22,059 32,490 54,549 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 June 30, 2020 • Cross-classified by technology and the retailer’s regulatory status in Figure 2, the 50 million wireline residential connections in June 2020 were: 27.6% ILEC switched access lines, 55.7% non-ILEC interconnected VoIP subscriptions, 14.9% ILEC interconnected VoIP subscriptions, and 1.8% non-ILEC switched access lines. Similarly, the 55 million wireline business connections were: 26.8% ILEC switched access lines, 51.2% non-ILEC interconnected VoIP subscriptions, 8.3% ILEC interconnected VoIP subscriptions, and 13.7% 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 June 30, 2020 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of June 30, 2020 (In thousands) Total Over-the-Top All Other Total (OTT) VoIP ILEC 74 11,913 11,988 Non-ILEC 13,196 42,655 55,851 13,270 54,568 67,839 Total Residential ILEC 2 7,451 7,452 Non-ILEC 2,296 25,600 27,896 2,298 33,051 35,348 Residential Total Business ILEC 73 4,462 4,535 Non-ILEC 10,900 17,055 27,955 Business Total 10,973 21,518 32,490 Note: Figures may not sum to totals due to rounding. U.S. Federal Communications Commission 5 Voice Telephone Services: Status as of June 30, 2020 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service By Regulatory Status as of June 30, 2020 (In thousands) Total ILEC Non-ILEC Total Switched Access Lines 28,414 8,382 36,796 Over-the-Top VoIP 74 13,196 13,270 All Other VoIP 11,913 42,655 54,568 Total 40,401 64,233 104,634 Sold with Internet Switched Access Lines 10,691 2,322 13,013 Over-the-Top VoIP 0 0 0 All Other VoIP 11,555 37,633 49,187 Total 22,246 39,955 62,200 Sold Without Internet Switched Access Lines 17,723 6,060 23,783 Over-the-Top VoIP 74 13,196 13,270 All Other VoIP 358 5,022 5,381 Total 18,155 24,278 42,434 Note: Figures may not sum totals due to rounding. U.S. Federal Communications Commission 6 Voice Telephone Services: Status as of June 30, 2020 Detailed Voice Telephone Services Data • Table 1 summarizes national-level voice telephone service subscription data for June and December 2019, and for June 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 June 2020. • Table 4 shows mobile voice telephone service subscriptions by state for June 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 June 2019) • State-level Number of Providers table in Excel format (data back to June 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 June 30, 2020 Table 1. Voice Subscriptions (in Thousands) - Total for US June Dec June Reference Data element 2019 2019 2020 1 Mobile telephony 351,474 355,763 348,234 2 Directly-billed or prepaid 310,668 314,122 308,767 3 Not directly-billed or prepaid 40,807 41,641 39,467 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 107,757 106,774 104,634 5 Incumbent LECs 44,640 42,208 40,401 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 63,117 64,566 64,233 7 Consumer-grade service 53,862 51,794 50,085 8 Incumbent LECs 24,027 22,570 21,266 9 Other (Non-ILECs) 29,835 29,224 28,819 10 Business & Government-grade service 53,894 54,981 54,549 11 Incumbent LECs 20,612 19,638 19,136 12 Other (Non-ILECs) 33,282 35,343 35,414 13 Local exchange telephone service (Switched Access Lines) 41,224 38,742 36,796 14 Incumbent LECs 31,976 29,897 28,414 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 9,248 8,844 8,382 16 Consumer-grade service 16,470 15,496 14,737 17 Incumbent LECs 15,511 14,603 13,813 18 Other (Non-ILECs) 958 893 924 19 Business & Government-grade service 24,755 23,245 22,059 20 Incumbent LECs 16,465 15,294 14,600 21 Other (Non-ILECs) 8,290 7,951 7,459 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 66,532 68,032 67,839 23 Incumbent LECs 12,663 12,310 11,988 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 53,869 55,722 55,851 25 Consumer-grade service 37,393 36,297 35,348 26 Incumbent LECs 8,516 7,966 7,452 27 Other (Non-ILECs) 28,877 28,331 27,896 28 Business & Government-grade service 29,140 31,735 32,490 29 Incumbent LECs 4,147 4,344 4,535 30 Other (Non-ILECs) 24,992 27,391 27,955 31 Over-the-top interconnected VoIP 10,926 11,788 13,270 32 Incumbent LECs 70 71 74 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 10,856 11,717 13,196 34 Consumer-grade service 2,268 2,251 2,298 35 Incumbent LECs 2 2 2 36 Other (Non-ILECs) 2,266 2,249 2,296 37 Business & Government-grade service 8,657 9,537 10,973 38 Incumbent LECs 68 69 73 39 Other (Non-ILECs) 8,589 9,468 10,900 40 All Other interconnected VoIP 55,607 56,244 54,568 41 Incumbent LECs 12,594 12,240 11,913 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 43,014 44,005 42,655 43 Consumer-grade service 35,124 34,046 33,051 44 Incumbent LECs 8,514 7,964 7,451 45 Other (Non-ILECs) 26,610 26,082 25,600 46 Business & Government-grade service 20,483 22,198 21,518 47 Incumbent LECs 4,080 4,275 4,462 48 Other (Non-ILECs) 16,403 17,923 17,055 49 Local exchange telephone service by last-mile delivery medium 41,224 38,742 36,796 50 Fiber-to-the-premises 4,797 4,687 4,651 51 Incumbent LECs 2,784 2,712 2,728 52 Other (Non-ILECs) 2,013 1,975 1,923 53 Coaxial cable 542 466 441 54 Incumbent LECs 56 47 46 55 Other (Non-ILECs) 486 419 394 U.S. Federal Communications Commission 8 Voice Telephone Services: Status as of June 30, 2020 Table 1. Voice Subscriptions (in Thousands) - Total for US June Dec June Reference Data element 2019 2019 2020 56 Terrestrial fixed wireless 30 34 30 57 Incumbent LECs 13 15 14 58 Other (Non-ILECs) 17 18 16 59 Copper local loop 35,856 33,555 31,674 60 Incumbent LECs 29,123 27,123 25,625 61 Other (Non-ILECs) 6,732 6,432 6,049 62 All Other interconnected VoIP by last-mile delivery medium 55,607 56,244 54,568 63 Fiber-to-the-premises 8,669 8,963 8,479 64 Incumbent LECs 6,239 6,080 5,850 65 Other (Non-ILECs) 2,430 2,883 2,629 66 Coaxial cable 33,950 33,409 32,883 67 Incumbent LECs 8 11 11 68 Other (Non-ILECs) 33,942 33,398 32,872 69 Terrestrial fixed wireless or satellite 201 206 219 70 Incumbent LECs 0 0 0 71 Other (Non-ILECs) 200 206 219 72 Copper local loop 12,787 13,666 12,987 73 Incumbent LECs 6,347 6,148 6,052 74 Other (Non-ILECs) 6,441 7,518 6,935 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 9,248 8,844 8,382 76 Provided over owned last-mile facilities 3,347 3,220 3,119 77 Provided over UNE-L obtained from unaffiliated entity 1,352 1,473 1,381 78 Provided over other services obtained from unaffiliated entity 4,549 4,151 3,883 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 4,526 4,130 3,950 80 Wholesale lines 2,870 2,723 2,660 81 UNE-L 1,657 1,407 1,291 82 Local exchange telephone service and long-distance service 41,224 38,742 36,796 83 Consumer-grade service 16,470 15,496 14,737 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 10,515 9,779 9,346 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 4,996 4,824 4,467 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 798 736 722 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 160 157 202 88 Business & Government-grade service 24,755 23,245 22,059 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 9,371 8,621 8,120 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 7,094 6,673 6,481 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 6,371 6,102 5,443 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 1,919 1,849 2,016 93 End user buys local exchange telephone service and Internet access service from same entity 15,635 14,033 13,013 94 End user buys both services from incumbent LEC or affiliates 12,333 11,173 10,691 95 End user buys both services from Non-ILEC or affiliates 3,302 2,860 2,322 96 End user buys interconnected VoIP and Internet access service from same entity 50,380 50,274 49,187 97 End user buys both services from incumbent LEC or affiliates 12,288 11,860 11,555 98 End user buys both services from Non-ILEC or affiliates 38,092 38,414 37,633 U.S. Federal Communications Commission 9 Voice Telephone Services: Status as of June 30, 2020 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US June Dec June Reference Data element 2019 2019 2020 1 Mobile telephony 71 69 66 2 Directly-billed or prepaid 71 69 65 3 Not directly-billed or prepaid 7 8 7 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 1,971 2,028 2,103 5 Incumbent LECs 723 715 716 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,559 1,625 1,716 7 Consumer-grade service 1,294 1,315 1,334 8 Incumbent LECs 722 715 715 9 Other (Non-ILECs) 875 904 938 10 Business & Government-grade service 1,871 1,923 1,995 11 Incumbent LECs 719 711 711 12 Other (Non-ILECs) 1,458 1,520 1,608 13 Local exchange telephone service (Switched Access Lines) 977 966 965 14 Incumbent LECs 720 709 710 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 504 506 514 16 Consumer-grade service 881 871 870 17 Incumbent LECs 719 709 710 18 Other (Non-ILECs) 400 402 409 19 Business & Government-grade service 963 952 947 20 Incumbent LECs 717 707 707 21 Other (Non-ILECs) 488 489 494 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 1,398 1,464 1,562 23 Incumbent LECs 143 144 161 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,342 1,403 1,497 25 Consumer-grade service 641 671 708 26 Incumbent LECs 81 80 84 27 Other (Non-ILECs) 595 625 662 28 Business & Government-grade service 1,299 1,364 1,457 29 Incumbent LECs 138 139 154 30 Other (Non-ILECs) 1,247 1,307 1,394 31 Over-the-top interconnected VoIP 859 907 977 32 Incumbent LECs 30 31 36 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 848 893 962 34 Consumer-grade service 181 177 197 35 Incumbent LECs 13 12 12 36 Other (Non-ILECs) 172 170 189 37 Business & Government-grade service 814 863 934 38 Incumbent LECs 27 28 34 39 Other (Non-ILECs) 805 852 921 40 All Other interconnected VoIP 783 805 842 41 Incumbent LECs 136 137 150 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 728 745 777 43 Consumer-grade service 520 554 573 44 Incumbent LECs 75 75 79 45 Other (Non-ILECs) 477 512 530 46 Business & Government-grade service 712 733 768 47 Incumbent LECs 131 133 144 48 Other (Non-ILECs) 661 676 705 49 Local exchange telephone service by last-mile delivery medium 977 966 965 50 Fiber-to-the-premises 757 758 765 51 Incumbent LECs 611 613 622 52 Other (Non-ILECs) 361 368 374 53 Coaxial cable 83 79 82 54 Incumbent LECs 21 17 20 55 Other (Non-ILECs) 72 71 73 U.S. Federal Communications Commission 10 Voice Telephone Services: Status as of June 30, 2020 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US June Dec June Reference Data element 2019 2019 2020 56 Terrestrial fixed wireless 76 74 83 57 Incumbent LECs 41 40 49 58 Other (Non-ILECs) 45 48 51 59 Copper local loop 775 749 744 60 Incumbent LECs 574 552 547 61 Other (Non-ILECs) 325 319 320 62 All Other interconnected VoIP by last-mile delivery medium 783 805 842 63 Fiber-to-the-premises 513 543 571 64 Incumbent LECs 123 125 140 65 Other (Non-ILECs) 460 491 511 66 Coaxial cable 221 216 214 67 Incumbent LECs 12 10 10 68 Other (Non-ILECs) 214 209 207 69 Terrestrial fixed wireless or satellite 282 283 301 70 Incumbent LECs 11 10 11 71 Other (Non-ILECs) 274 276 294 72 Copper local loop 230 226 225 73 Incumbent LECs 56 57 56 74 Other (Non-ILECs) 200 194 194 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 504 506 514 76 Provided over owned last-mile facilities 381 379 399 77 Provided over UNE-L obtained from unaffiliated entity 101 105 103 78 Provided over other services obtained from unaffiliated entity 189 192 177 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 21 20 25 80 Wholesale lines 19 18 23 81 UNE-L 10 10 11 82 Local exchange telephone service and long-distance service 977 966 965 83 Consumer-grade service 881 871 870 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 674 668 668 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 671 662 659 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 377 379 387 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 274 270 274 88 Business & Government-grade service 963 952 947 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 671 667 665 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 652 638 641 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 445 444 457 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 307 313 311 93 End user buys local exchange telephone service and Internet access service from same entity 885 877 882 94 End user buys both services from incumbent LEC or affiliates 704 693 695 95 End user buys both services from Non-ILEC or affiliates 420 425 440 96 End user buys interconnected VoIP and Internet access service from same entity 712 741 768 97 End user buys both services from incumbent LEC or affiliates 124 128 137 98 End user buys both services from Non-ILEC or affiliates 663 686 710 U.S. Federal Communications Commission 11 Voice Telephone Services: Status as of June 30, 2020 Table 3: Residential Wireline Voice Telephone Service Connections and Households by State as of June 30, 2020 (Connections and households, in thousands) Switched Access Interconnected VoIP Total State Households Connections Ratio Connections Ratio Connections Ratio Alabama 1,889 236 0.12 430 0.23 666 0.35 Alaska 255 * * * * 85 0.33 American Samoa 10 5 0.52 - * 5 0.52 Arizona 2,643 235 0.09 522 0.20 757 0.29 Arkansas 1,171 169 0.14 153 0.13 322 0.28 California 13,103 1,363 0.10 4,110 0.31 5,473 0.42 Colorado 2,137 288 0.13 492 0.23 780 0.36 Connecticut 1,385 144 0.10 664 0.48 808 0.58 Delaware 371 33 0.09 203 0.55 236 0.64 District of Columbia 288 28 0.10 89 0.31 116 0.40 Florida 7,931 582 0.07 2,534 0.32 3,116 0.39 Georgia 3,830 567 0.15 942 0.25 1,509 0.39 Guam 42 21 0.50 * * * * Hawaii 468 90 0.19 129 0.28 219 0.47 Idaho 649 101 0.16 44 0.07 145 0.22 Illinois 4,884 445 0.09 1,292 0.26 1,737 0.36 Indiana 2,603 307 0.12 524 0.20 830 0.32 Iowa 1,274 304 0.24 205 0.16 509 0.40 Kansas 1,142 133 0.12 190 0.17 323 0.28 Kentucky 1,748 380 0.22 335 0.19 716 0.41 Louisiana 1,752 187 0.11 409 0.23 596 0.34 Maine 570 119 0.21 168 0.29 287 0.50 Maryland 2,231 226 0.10 1,014 0.45 1,240 0.56 Massachusetts 2,647 225 0.09 1,344 0.51 1,569 0.59 Michigan 3,980 313 0.08 1,097 0.28 1,410 0.35 Minnesota 2,208 444 0.20 406 0.18 850 0.38 Mississippi 1,117 123 0.11 159 0.14 282 0.25 Missouri 2,440 291 0.12 511 0.21 802 0.33 Montana 436 101 0.23 76 0.17 177 0.41 Nebraska 767 152 0.20 128 0.17 280 0.37 Nevada 1,130 96 0.08 286 0.25 383 0.34 New Hampshire 539 89 0.17 233 0.43 322 0.60 New Jersey 3,272 263 0.08 1,904 0.58 2,166 0.66 New Mexico 793 149 0.19 105 0.13 254 0.32 New York 7,417 692 0.09 3,499 0.47 4,191 0.57 North Carolina 4,032 562 0.14 1,091 0.27 1,654 0.41 North Dakota 321 76 0.24 26 0.08 103 0.32 Northern Mariana Islands 16 8 0.50 * * * * Ohio 4,717 584 0.12 1,196 0.25 1,780 0.38 Oklahoma 1,494 163 0.11 236 0.16 399 0.27 Oregon 1,643 213 0.13 335 0.20 549 0.33 Pennsylvania 5,107 757 0.15 1,938 0.38 2,695 0.53 Puerto Rico 1,206 * * * * * * Rhode Island 415 35 0.08 172 0.41 207 0.50 South Carolina 1,961 308 0.16 439 0.22 747 0.38 South Dakota 348 83 0.24 36 0.10 119 0.34 Tennessee 2,639 374 0.14 544 0.21 918 0.35 Texas 9,906 785 0.08 2,090 0.21 2,875 0.29 Utah 1,003 112 0.11 168 0.17 280 0.28 Vermont 263 91 0.35 80 0.30 171 0.65 Virgin Islands 30 * * * * 10 0.34 Virginia 3,184 408 0.13 1,097 0.34 1,505 0.47 Washington 2,906 358 0.12 690 0.24 1,048 0.36 West Virginia 734 190 0.26 192 0.26 382 0.52 Wisconsin 2,378 337 0.14 559 0.24 896 0.38 Wyoming 233 39 0.17 39 0.17 77 0.33 United States 123,657 14,737 0.12 35,348 0.29 50,085 0.41 - = 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 June 30, 2020 Table 4: Mobile Voice Telephone Service Subscriptions and Population by State as of June 30, 2020 (Connections and population, in thousands) Directly-Billed Not Directly-Billed Total State Population Subscriptions Ratio Subscriptions Ratio Subscriptions Ratio Alabama 4,893 4,304 0.88 769 0.16 5,073 1.04 Alaska 737 690 0.94 32 0.04 722 0.98 American Samoa 56 * * * * * * Arizona 7,174 6,501 0.91 562 0.08 7,063 0.98 Arkansas 3,012 2,439 0.81 740 0.25 3,179 1.06 California 39,346 39,906 1.01 5,169 0.13 45,075 1.15 Colorado 5,685 5,302 0.93 576 0.10 5,878 1.03 Connecticut 3,571 3,570 1.00 378 0.11 3,947 1.11 Delaware 968 906 0.94 137 0.14 1,043 1.08 District of Columbia 702 1,300 1.85 206 0.29 1,506 2.15 Florida 21,217 19,924 0.94 1,951 0.09 21,875 1.03 Georgia 10,517 9,731 0.93 1,451 0.14 11,182 1.06 Guam 159 185 1.16 - * 185 1.16 Hawaii 1,420 1,420 1.00 135 0.10 1,555 1.10 Idaho 1,754 1,557 0.89 178 0.10 1,735 0.99 Illinois 12,716 12,388 0.97 1,457 0.11 13,845 1.09 Indiana 6,697 5,619 0.84 1,032 0.15 6,651 0.99 Iowa 3,150 2,801 0.89 350 0.11 3,151 1.00 Kansas 2,913 2,544 0.87 391 0.13 2,935 1.01 Kentucky 4,462 3,678 0.82 644 0.14 4,322 0.97 Louisiana 4,665 4,288 0.92 565 0.12 4,854 1.04 Maine 1,341 1,038 0.77 296 0.22 1,334 0.99 Maryland 6,038 5,915 0.98 553 0.09 6,467 1.07 Massachusetts 6,873 6,696 0.97 736 0.11 7,432 1.08 Michigan 9,974 9,219 0.92 1,167 0.12 10,387 1.04 Minnesota 5,600 5,076 0.91 709 0.13 5,785 1.03 Mississippi 2,982 2,518 0.84 375 0.13 2,894 0.97 Missouri 6,124 5,392 0.88 628 0.10 6,021 0.98 Montana 1,062 880 0.83 185 0.17 1,064 1.00 Nebraska 1,924 1,772 0.92 251 0.13 2,022 1.05 Nevada 3,030 2,831 0.93 250 0.08 3,081 1.02 New Hampshire 1,355 1,168 0.86 211 0.16 1,379 1.02 New Jersey 8,885 9,313 1.05 1,084 0.12 10,397 1.17 New Mexico 2,097 1,927 0.92 214 0.10 2,140 1.02 New York 19,515 19,510 1.00 2,779 0.14 22,289 1.14 North Carolina 10,386 8,937 0.86 1,459 0.14 10,396 1.00 North Dakota 760 687 0.90 105 0.14 792 1.04 Northern Mariana Islands 54 * * * * * * Ohio 11,675 10,754 0.92 1,551 0.13 12,305 1.05 Oklahoma 3,949 3,385 0.86 441 0.11 3,825 0.97 Oregon 4,176 3,831 0.92 513 0.12 4,343 1.04 Pennsylvania 12,795 11,369 0.89 1,891 0.15 13,260 1.04 Puerto Rico 3,256 2,701 0.83 225 0.07 2,926 0.90 Rhode Island 1,058 1,002 0.95 108 0.10 1,110 1.05 South Carolina 5,092 4,195 0.82 754 0.15 4,950 0.97 South Dakota 879 726 0.83 135 0.15 861 0.98 Tennessee 6,772 6,158 0.91 915 0.14 7,073 1.04 Texas 28,635 27,545 0.96 1,966 0.07 29,511 1.03 Utah 3,151 2,739 0.87 283 0.09 3,022 0.96 Vermont 624 469 0.75 126 0.20 596 0.95 Virgin Islands 106 * * * * * * Virginia 8,509 7,904 0.93 960 0.11 8,864 1.04 Washington 7,512 7,023 0.93 793 0.11 7,816 1.04 West Virginia 1,807 1,368 0.76 242 0.13 1,609 0.89 Wisconsin 5,807 4,951 0.85 742 0.13 5,693 0.98 Wyoming 581 523 0.90 90 0.15 613 1.05 United States 330,200 308,767 0.94 39,467 0.12 348,234 1.05 - = 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 June 30, 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 June 30, 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 June 30, 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 June 30, 2020 Customer Response Publication: Voice Telephone Services: Status as of June 30, 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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