Voice Telephone Services: Status as of June 30, 2021 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, 2018-2021 ........................................................ 2 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, and Customer Type as of June 30, 2021 ..................................................... 3 Retail Service Relationships ............................................................................................................................. 4 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of June 30, 2021 ..................................................... 5 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service by Regulatory Status as of June 30, 2021 ........................................... 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, 2021 .................................................................................................... 12 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of June 30, 2021 .................................................................................................... 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, 2021 Table 4 Mobile Voice Telephone Service Subscriptions and Population by State as of June 30, 2021 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, 2021 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. crosswalk A 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, 2021 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 2021, there were 32 million end-user switched access lines in service, 67 million interconnected VoIP subscriptions, and 357 million mobile subscriptions, for a total of 457 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 0.5%, mobile voice subscriptions increased at a compound annual growth rate of 1.4%, and retail switched access lines declined at a compound annual growth rate of 11.6% per year.5 Figure 1 Retail Voice Telephone Service Connections, 2018 - 2021 (In thousands) Note: Some previously published data have been revised. • Of the 99 million wireline retail voice telephone service connections (including both switched access lines and interconnected VoIP subscriptions) in June 2021, 46 million (or 46%) were residential connections and 54 million (or 54%) 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, 2021 Figure 2 Wireline Retail Voice Telephone Service Connections by Technology, Regulatory Status, And Customer Type as of June 30, 2021 (In thousands) Total Switched Access Interconnected Total Lines VoIP ILEC 25,335 11,100 36,434 Non-ILEC 7,113 55,779 62,892 Total 32,448 66,878 99,326 Residential ILEC 12,373 6,644 19,016 Non-ILEC 776 25,973 26,749 Residential Total 13,149 32,617 45,765 Business ILEC 12,962 4,456 17,418 Non-ILEC 6,337 29,806 36,143 Business Total 19,299 34,262 53,561 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, 2021 • Cross-classified by technology and the retailer’s regulatory status in Figure 2, the 46 million wireline residential connections in June 2021 were: 27.0% ILEC switched access lines, 56.8% non-ILEC interconnected VoIP subscriptions, 14.5% ILEC interconnected VoIP subscriptions, and 1.7% non-ILEC switched access lines. Similarly, the 54 million wireline business connections were: 24.2% ILEC switched access lines, 55.6% non-ILEC interconnected VoIP subscriptions, 8.3% ILEC interconnected VoIP subscriptions, and 11.8% 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, 2021 Figure 3 Interconnected VoIP Subscribership by Reported Service Features, Regulatory Status, and Customer Type as of June 30, 2021 (In thousands) Total Over-the-Top All Other Total (OTT) VoIP ILEC 69 11,030 11,100 Non-ILEC 15,495 40,284 55,779 Total 15,564 51,314 66,878 Residential ILEC 0 6,643 6,644 Non-ILEC 1,873 24,099 25,973 Residential Total 1,874 30,743 32,617 Business ILEC 69 4,387 4,456 Non-ILEC 13,621 16,184 29,806 Business Total 13,690 20,571 34,262 Note: Figures may not sum to totals due to rounding. U.S. Federal Communications Commission 5 Voice Telephone Services: Status as of June 30, 2021 Figure 4 Retail Relationships of Wireline Voice Telephone Service with Internet Access Service By Regulatory Status as of June 30, 2021 (In thousands) Total ILEC Non-ILEC Total Switched Access Lines 25,335 7,113 32,448 Over-the-Top VoIP 69 15,495 15,564 All Other VoIP 11,030 40,284 51,314 Total 36,434 62,892 99,326 Sold with Internet Switched Access Lines 9,877 2,402 12,278 Over-the-Top VoIP 0 0 0 All Other VoIP 10,077 35,442 45,519 Total 19,954 37,844 57,797 Sold Without Internet Switched Access Lines 15,458 4,711 20,170 Over-the-Top VoIP 69 15,495 15,564 All Other VoIP 953 4,842 5,795 Total 16,480 25,048 41,529 Note: Figures may not sum totals due to rounding. U.S. Federal Communications Commission 6 Voice Telephone Services: Status as of June 30, 2021 Detailed Voice Telephone Services Data • Table 1 summarizes national-level voice telephone service subscription data for June and December 2020, and June 2021 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 2021. • Table 4 shows mobile voice telephone service subscriptions by state for June 2021. 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 2020) • State-level Number of Providers table in Excel format (data back to June 2020) • 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, 2021 Table 1. Voice Subscriptions (in Thousands) - Total for US June Dec June Reference Data element 2020 2020 2021 1 Mobile telephony 348,234 352,522 357,225 2 Directly-billed or prepaid 308,767 303,547 307,095 3 Not directly-billed or prepaid 39,467 48,974 50,130 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 104,634 101,801 99,326 5 Incumbent LECs 40,401 38,353 36,434 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 64,233 63,448 62,892 7 Consumer-grade service 50,085 47,674 45,765 8 Incumbent LECs 21,266 20,071 19,016 9 Other (Non-ILECs) 28,819 27,603 26,749 10 Business & Government-grade service 54,549 54,127 53,561 11 Incumbent LECs 19,136 18,282 17,418 12 Other (Non-ILECs) 35,414 35,845 36,143 13 Local exchange telephone service (Switched Access Lines) 36,796 34,422 32,448 14 Incumbent LECs 28,414 26,767 25,335 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 8,382 7,655 7,113 16 Consumer-grade service 14,737 13,837 13,149 17 Incumbent LECs 13,813 13,027 12,373 18 Other (Non-ILECs) 924 809 776 19 Business & Government-grade service 22,059 20,585 19,299 20 Incumbent LECs 14,600 13,740 12,962 21 Other (Non-ILECs) 7,459 6,845 6,337 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 67,839 67,379 66,878 23 Incumbent LECs 11,988 11,586 11,100 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 55,851 55,793 55,779 25 Consumer-grade service 35,348 33,837 32,617 26 Incumbent LECs 7,452 7,044 6,644 27 Other (Non-ILECs) 27,896 26,794 25,973 28 Business & Government-grade service 32,490 33,542 34,262 29 Incumbent LECs 4,535 4,542 4,456 30 Other (Non-ILECs) 27,955 29,000 29,806 31 Over-the-top interconnected VoIP 13,270 14,442 15,564 32 Incumbent LECs 74 68 69 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 13,196 14,374 15,495 34 Consumer-grade service 2,298 1,960 1,874 35 Incumbent LECs 2 1 0 36 Other (Non-ILECs) 2,296 1,958 1,873 37 Business & Government-grade service 10,973 12,482 13,690 38 Incumbent LECs 73 67 69 39 Other (Non-ILECs) 10,900 12,416 13,621 40 All Other interconnected VoIP 54,568 52,937 51,314 41 Incumbent LECs 11,913 11,518 11,030 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 42,655 41,419 40,284 43 Consumer-grade service 33,051 31,877 30,743 44 Incumbent LECs 7,451 7,042 6,643 45 Other (Non-ILECs) 25,600 24,835 24,099 46 Business & Government-grade service 21,518 21,059 20,571 47 Incumbent LECs 4,462 4,475 4,387 48 Other (Non-ILECs) 17,055 16,584 16,184 49 Local exchange telephone service by last-mile delivery medium 36,796 34,422 32,448 50 Fiber-to-the-premises 4,651 4,575 4,654 51 Incumbent LECs 2,728 2,691 2,793 52 Other (Non-ILECs) 1,923 1,884 1,861 53 Coaxial cable 441 442 486 54 Incumbent LECs 46 52 114 55 Other (Non-ILECs) 394 391 372 U.S. Federal Communications Commission 8 Voice Telephone Services: Status as of June 30, 2021 Table 1. Voice Subscriptions (in Thousands) - Total for US June Dec June Reference Data element 2020 2020 2021 56 Terrestrial fixed wireless 30 33 46 57 Incumbent LECs 14 13 13 58 Other (Non-ILECs) 16 20 33 59 Copper local loop 31,674 29,366 27,261 60 Incumbent LECs 25,625 24,009 22,414 61 Other (Non-ILECs) 6,049 5,357 4,847 62 All Other interconnected VoIP by last-mile delivery medium 54,568 52,937 51,314 63 Fiber-to-the-premises 8,479 8,364 10,236 64 Incumbent LECs 5,850 5,729 5,592 65 Other (Non-ILECs) 2,629 2,635 4,644 66 Coaxial cable 32,883 32,204 29,430 67 Incumbent LECs 11 12 16 68 Other (Non-ILECs) 32,872 32,192 29,413 69 Terrestrial fixed wireless or satellite 219 221 226 70 Incumbent LECs 0 0 1 71 Other (Non-ILECs) 219 221 225 72 Copper local loop 12,987 12,148 11,423 73 Incumbent LECs 6,052 5,777 5,421 74 Other (Non-ILECs) 6,935 6,371 6,001 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 8,382 7,655 7,113 76 Provided over owned last-mile facilities 3,119 2,956 2,823 77 Provided over UNE-L obtained from unaffiliated entity 1,381 1,164 1,014 78 Provided over other services obtained from unaffiliated entity 3,883 3,531 3,277 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 3,950 3,650 3,367 80 Wholesale lines 2,660 2,466 2,337 81 UNE-L 1,291 1,184 1,030 82 Local exchange telephone service and long-distance service 36,796 34,422 32,448 83 Consumer-grade service 14,737 13,837 13,149 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 9,346 9,057 8,404 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 4,467 3,970 3,969 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 722 663 647 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 202 147 129 88 Business & Government-grade service 22,059 20,585 19,299 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 8,120 8,232 7,379 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 6,481 5,506 5,583 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 5,443 5,008 4,761 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 2,016 1,834 1,576 93 End user buys local exchange telephone service and Internet access service from same entity 13,013 12,600 12,278 94 End user buys both services from incumbent LEC or affiliates 10,691 10,021 9,877 95 End user buys both services from Non-ILEC or affiliates 2,322 2,579 2,402 96 End user buys interconnected VoIP and Internet access service from same entity 49,187 47,608 45,519 97 End user buys both services from incumbent LEC or affiliates 11,555 11,160 10,077 98 End user buys both services from Non-ILEC or affiliates 37,633 36,448 35,442 U.S. Federal Communications Commission 9 Voice Telephone Services: Status as of June 30, 2021 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US June Dec June Reference Data element 2020 2020 2021 1 Mobile telephony 66 65 61 2 Directly-billed or prepaid 65 63 57 3 Not directly-billed or prepaid 7 9 11 4 Wireline End-User Switched Access Lines and Interconnected VoIP Subscriptions 2,103 2,191 2,256 5 Incumbent LECs 716 713 711 6 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,716 1,815 1,890 7 Consumer-grade service 1,334 1,318 1,312 8 Incumbent LECs 715 712 711 9 Other (Non-ILECs) 938 932 934 10 Business & Government-grade service 1,995 2,088 2,175 11 Incumbent LECs 711 710 708 12 Other (Non-ILECs) 1,608 1,710 1,801 13 Local exchange telephone service (Switched Access Lines) 965 952 947 14 Incumbent LECs 710 707 706 15 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 514 507 508 16 Consumer-grade service 870 856 858 17 Incumbent LECs 710 707 706 18 Other (Non-ILECs) 409 401 407 19 Business & Government-grade service 947 939 935 20 Incumbent LECs 707 705 703 21 Other (Non-ILECs) 494 492 493 22 Interconnected VoIP Subscriptions - Note: Includes both Over-the-top (OTT) and All Other sub-categories. 1,562 1,671 1,750 23 Incumbent LECs 161 167 180 24 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 1,497 1,607 1,679 25 Consumer-grade service 708 713 720 26 Incumbent LECs 84 92 103 27 Other (Non-ILECs) 662 664 664 28 Business & Government-grade service 1,457 1,566 1,663 29 Incumbent LECs 154 161 175 30 Other (Non-ILECs) 1,394 1,504 1,592 31 Over-the-top interconnected VoIP 977 1,073 1,189 32 Incumbent LECs 36 33 39 33 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 962 1,058 1,173 34 Consumer-grade service 197 178 214 35 Incumbent LECs 12 9 12 36 Other (Non-ILECs) 189 172 207 37 Business & Government-grade service 934 1,029 1,143 38 Incumbent LECs 34 33 38 39 Other (Non-ILECs) 921 1,014 1,128 40 All Other interconnected VoIP 842 865 829 41 Incumbent LECs 150 159 168 42 Other (Non-ILECs) - Note: ILEC voice-service affiliate operating outside ILEC's study area is included here. 777 804 763 43 Consumer-grade service 573 595 577 44 Incumbent LECs 79 87 97 45 Other (Non-ILECs) 530 548 524 46 Business & Government-grade service 768 789 771 47 Incumbent LECs 144 153 163 48 Other (Non-ILECs) 705 729 705 49 Local exchange telephone service by last-mile delivery medium 965 952 947 50 Fiber-to-the-premises 765 768 775 51 Incumbent LECs 622 632 633 52 Other (Non-ILECs) 374 375 382 53 Coaxial cable 82 87 87 54 Incumbent LECs 20 23 25 55 Other (Non-ILECs) 73 75 73 U.S. Federal Communications Commission 10 Voice Telephone Services: Status as of June 30, 2021 Table 2. Number of Providers Reporting Voice Subscriptions - Total for US June Dec June Reference Data element 2020 2020 2021 56 Terrestrial fixed wireless 83 80 90 57 Incumbent LECs 49 49 51 58 Other (Non-ILECs) 51 47 52 59 Copper local loop 744 706 696 60 Incumbent LECs 547 525 519 61 Other (Non-ILECs) 320 306 299 62 All Other interconnected VoIP by last-mile delivery medium 842 865 829 63 Fiber-to-the-premises 571 600 604 64 Incumbent LECs 140 149 158 65 Other (Non-ILECs) 511 543 543 66 Coaxial cable 214 212 204 67 Incumbent LECs 10 12 14 68 Other (Non-ILECs) 207 205 197 69 Terrestrial fixed wireless or satellite 301 314 285 70 Incumbent LECs 11 12 11 71 Other (Non-ILECs) 294 307 277 72 Copper local loop 225 213 205 73 Incumbent LECs 56 61 65 74 Other (Non-ILECs) 194 181 169 75 Non-Incumbent LEC local exchange telephone service by means of provisioning 514 507 508 76 Provided over owned last-mile facilities 399 392 392 77 Provided over UNE-L obtained from unaffiliated entity 103 97 94 78 Provided over other services obtained from unaffiliated entity 177 178 174 79 Incumbent LEC local exchange telephone service provided to unaffiliated carriers for resale 25 23 22 80 Wholesale lines 23 21 19 81 UNE-L 11 11 12 82 Local exchange telephone service and long-distance service 965 952 947 83 Consumer-grade service 870 856 858 84 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 668 665 660 85 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 659 658 652 86 Non-ILEC is preferred long-distance carrier for its local exchange service customer 387 380 379 87 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 274 265 276 88 Business & Government-grade service 947 939 935 89 Incumbent LEC is preferred long-distance carrier for its local exchange service customer 665 664 658 90 Incumbent LEC is not preferred long-distance carrier for its local exchange service customer 641 637 637 91 Non-ILEC is preferred long-distance carrier for its local exchange service customer 457 456 451 92 Non-ILEC is not preferred long-distance carrier for its local exchange service customer 311 311 321 93 End user buys local exchange telephone service and Internet access service from same entity 882 880 874 94 End user buys both services from incumbent LEC or affiliates 695 696 696 95 End user buys both services from Non-ILEC or affiliates 440 440 439 96 End user buys interconnected VoIP and Internet access service from same entity 768 790 766 97 End user buys both services from incumbent LEC or affiliates 137 147 157 98 End user buys both services from Non-ILEC or affiliates 710 733 704 U.S. Federal Communications Commission 11 Voice Telephone Services: Status as of June 30, 2021 Table 3: Residential Wireline Voice Telephone Service Connections and Households by State as of June 30, 2021 (Connections and households, in thousands) Switched Access Interconnected VoIP Total State Households Connections Ratio Connections Ratio Connections Ratio Alabama 1,889 205 0.11 392 0.21 596 0.32 Alaska 255 * * * * 78 0.31 American Samoa 10 5 0.52 - * 5 0.52 Arizona 2,643 206 0.08 445 0.17 650 0.25 Arkansas 1,171 156 0.13 132 0.11 287 0.25 California 13,103 1,214 0.09 3,766 0.29 4,980 0.38 Colorado 2,137 251 0.12 462 0.22 713 0.33 Connecticut 1,385 132 0.10 623 0.45 755 0.54 Delaware 371 27 0.07 193 0.52 220 0.59 District of Columbia 288 24 0.08 81 0.28 105 0.36 Florida 7,931 494 0.06 2,338 0.29 2,832 0.36 Georgia 3,830 543 0.14 863 0.23 1,407 0.37 Guam 42 22 0.52 * * * * Hawaii 468 80 0.17 128 0.27 209 0.45 Idaho 649 94 0.14 41 0.06 135 0.21 Illinois 4,884 384 0.08 1,164 0.24 1,548 0.32 Indiana 2,603 269 0.10 480 0.18 749 0.29 Iowa 1,274 280 0.22 184 0.14 464 0.36 Kansas 1,142 117 0.10 170 0.15 287 0.25 Kentucky 1,748 362 0.21 315 0.18 677 0.39 Louisiana 1,752 159 0.09 347 0.20 506 0.29 Maine 570 108 0.19 163 0.29 271 0.48 Maryland 2,231 187 0.08 931 0.42 1,118 0.50 Massachusetts 2,647 188 0.07 1,257 0.47 1,445 0.55 Michigan 3,980 280 0.07 1,041 0.26 1,321 0.33 Minnesota 2,208 402 0.18 372 0.17 774 0.35 Mississippi 1,117 111 0.10 148 0.13 259 0.23 Missouri 2,440 257 0.11 469 0.19 725 0.30 Montana 436 91 0.21 73 0.17 164 0.38 Nebraska 767 142 0.19 118 0.15 260 0.34 Nevada 1,130 82 0.07 251 0.22 333 0.29 New Hampshire 539 80 0.15 223 0.41 303 0.56 New Jersey 3,272 208 0.06 1,753 0.54 1,961 0.60 New Mexico 793 138 0.17 102 0.13 240 0.30 New York 7,417 594 0.08 3,274 0.44 3,868 0.52 North Carolina 4,032 506 0.13 1,030 0.26 1,536 0.38 North Dakota 321 68 0.21 23 0.07 92 0.29 Northern Mariana Islands 16 8 0.50 * * * * Ohio 4,717 527 0.11 1,115 0.24 1,642 0.35 Oklahoma 1,494 147 0.10 205 0.14 352 0.24 Oregon 1,643 194 0.12 334 0.20 528 0.32 Pennsylvania 5,107 671 0.13 1,820 0.36 2,490 0.49 Puerto Rico 1,206 * * * * * * Rhode Island 415 29 0.07 153 0.37 182 0.44 South Carolina 1,961 272 0.14 413 0.21 686 0.35 South Dakota 348 75 0.22 32 0.09 107 0.31 Tennessee 2,639 333 0.13 509 0.19 842 0.32 Texas 9,906 701 0.07 1,855 0.19 2,556 0.26 Utah 1,003 98 0.10 154 0.15 252 0.25 Vermont 263 85 0.32 78 0.30 163 0.62 Virgin Islands 30 * * * * 9 0.30 Virginia 3,184 345 0.11 995 0.31 1,340 0.42 Washington 2,906 328 0.11 657 0.23 984 0.34 West Virginia 734 183 0.25 169 0.23 352 0.48 Wisconsin 2,378 302 0.13 511 0.21 813 0.34 Wyoming 233 35 0.15 36 0.15 71 0.30 United States 123,657 13,149 0.11 32,617 0.26 45,765 0.37 - = 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, 2021 Table 4: Mobile Voice Telephone Service Subscriptions and Population by State as of June 30, 2021 (Connections and population, in thousands) Directly-Billed Not Directly-Billed Total State Population Subscriptions Ratio Subscriptions Ratio Subscriptions Ratio Alabama 4,893 4,370 0.89 862 0.18 5,232 1.07 Alaska 737 705 0.96 35 0.05 740 1.00 American Samoa 56 * * * * * * Arizona 7,174 6,575 0.92 717 0.10 7,292 1.02 Arkansas 3,012 2,480 0.82 796 0.26 3,276 1.09 California 39,346 39,900 1.01 5,202 0.13 45,102 1.15 Colorado 5,685 5,272 0.93 735 0.13 6,007 1.06 Connecticut 3,571 3,541 0.99 510 0.14 4,051 1.13 Delaware 968 904 0.93 164 0.17 1,068 1.10 District of Columbia 702 1,304 1.86 269 0.38 1,574 2.24 Florida 21,217 20,001 0.94 2,816 0.13 22,817 1.08 Georgia 10,517 9,790 0.93 1,853 0.18 11,643 1.11 Guam 159 202 1.27 3 0.02 205 1.29 Hawaii 1,420 1,403 0.99 183 0.13 1,586 1.12 Idaho 1,754 1,590 0.91 202 0.12 1,792 1.02 Illinois 12,716 12,005 0.94 2,190 0.17 14,195 1.12 Indiana 6,697 5,474 0.82 1,367 0.20 6,841 1.02 Iowa 3,150 2,811 0.89 397 0.13 3,208 1.02 Kansas 2,913 2,503 0.86 455 0.16 2,958 1.02 Kentucky 4,462 3,504 0.79 751 0.17 4,256 0.95 Louisiana 4,665 4,205 0.90 802 0.17 5,007 1.07 Maine 1,341 1,047 0.78 316 0.24 1,363 1.02 Maryland 6,038 5,824 0.96 765 0.13 6,589 1.09 Massachusetts 6,873 6,650 0.97 935 0.14 7,586 1.10 Michigan 9,974 8,905 0.89 1,698 0.17 10,602 1.06 Minnesota 5,600 5,065 0.90 824 0.15 5,890 1.05 Mississippi 2,982 2,594 0.87 406 0.14 2,999 1.01 Missouri 6,124 5,352 0.87 803 0.13 6,155 1.01 Montana 1,062 900 0.85 198 0.19 1,098 1.03 Nebraska 1,924 1,736 0.90 294 0.15 2,030 1.06 Nevada 3,030 2,834 0.94 338 0.11 3,172 1.05 New Hampshire 1,355 1,172 0.86 240 0.18 1,412 1.04 New Jersey 8,885 9,188 1.03 1,368 0.15 10,556 1.19 New Mexico 2,097 1,943 0.93 262 0.12 2,204 1.05 New York 19,515 19,154 0.98 4,192 0.21 23,346 1.20 North Carolina 10,386 8,728 0.84 2,023 0.19 10,751 1.04 North Dakota 760 693 0.91 110 0.14 803 1.06 Northern Mariana Islands 54 * * * * * * Ohio 11,675 10,342 0.89 2,155 0.18 12,498 1.07 Oklahoma 3,949 3,402 0.86 494 0.13 3,896 0.99 Oregon 4,176 3,825 0.92 644 0.15 4,469 1.07 Pennsylvania 12,795 11,360 0.89 2,195 0.17 13,554 1.06 Puerto Rico 3,256 3,152 0.97 362 0.11 3,514 1.08 Rhode Island 1,058 1,002 0.95 139 0.13 1,141 1.08 South Carolina 5,092 4,187 0.82 905 0.18 5,092 1.00 South Dakota 879 736 0.84 138 0.16 874 0.99 Tennessee 6,772 6,082 0.90 1,131 0.17 7,213 1.07 Texas 28,635 27,548 0.96 2,962 0.10 30,510 1.07 Utah 3,151 2,773 0.88 362 0.11 3,135 0.99 Vermont 624 471 0.75 138 0.22 609 0.98 Virgin Islands 106 * * * * * * Virginia 8,509 7,968 0.94 1,169 0.14 9,137 1.07 Washington 7,512 7,041 0.94 972 0.13 8,012 1.07 West Virginia 1,807 1,396 0.77 244 0.13 1,641 0.91 Wisconsin 5,807 4,846 0.83 939 0.16 5,785 1.00 Wyoming 581 528 0.91 96 0.17 624 1.07 United States 330,200 307,095 0.93 50,130 0.15 357,225 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 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, 2021 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, 2021 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, 2021 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, 2021 Customer Response Publication: Voice Telephone Services: Status as of June 30, 2021 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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