7 - 1 
7.  Rates and Price Indices       
     
 This section contains information on telephone price indices and rate levels.
1
  It describes 
and presents a series of price indices maintained by the Bureau of Labor Statistics (BLS).  It also 
discusses rate levels and changes in average rate levels. 
  
Telephone Service Price Indices 
 
 The BLS collects a variety of information on telephone service as part of three separate 
programs -- the Consumer Price Index (CPI), the Producer Price Index (PPI), and the Consumer 
Expenditure Survey.  They can be found on the Internet at www.bls.gov/data. The monthly price 
indices represent prices sampled in the middle of the month. 
 
 A Consumer Price Index for telephone services was first published in 1935.
2
  Since that 
time, telephone prices have tended to increase at a slower pace than most other prices.  Table 7.1 
shows long-run changes in the Consumer Price Indices for all items, all services, telephone 
services, each of the seven major categories that currently constitute the overall CPI, and several 
services that are often characterized as public utilities.  The price of telephone service has 
increased less rapidly than the prices of most of these categories when viewed over a long period 
of time.  Chart 7.1 shows the levels of the overall CPI and the CPI for telephone services over 
time. 
  
 The CPI index of telephone services is based on a "market basket" intended to represent 
the telephone-related expenditures of a typical urban household.  It includes both local and long 
distance services.   The annual rate of change during recent years is shown in Table 7.2 for the 
overall CPI (which measures the impact of inflation on consumers), and the CPI for telephone 
services.  In addition, Table 7.2 shows the Gross Domestic Product chain-type price index 
(which reflects inflation throughout the economy) prepared by the Bureau of Economic Analysis. 
 Chart 7.2 shows the changes in the overall CPI and the CPI for telephone services over time.   
 
 For 2006 the nation's overall level of prices (measured by the CPI for all items) rose by 
2.5%.  The CPI for telephone services rose by 1.7% during 2006.  The CPI for telephone services 
is composed of three subindices.  During 2006, the local service component (including 
subscriber line charges) rose by 2.2%; the price index for interstate toll calls rose by 5.1%, and 
the price index for intrastate toll calls increased by 3.3%.  The changes in these subindices over 
time are shown in Chart 7.3. 
 
                     
1 For more detailed information, see Industry Analysis and Technology Division, Wireline 
Competition Bureau, Federal Communications Commission, Reference Book of Rates, 
Price Indices, and Household Expenditures for Telephone Service (2007).  Much, but not 
all, of the material in this section is based on that report. 
2 BLS publishes two sets of Consumer Price Indices.  The CPI-U, used herein, is based on 
expenditures of all urban consumers.  The CPI-W series is based on expenditures of 
urban wage earners and clerical workers. 
 
 7 - 2 
 The Bureau of Labor Statistics publishes a number of price indices related to local 
telephone service, two of which are important to the monitoring program.  The CPI index of 
local telephone charges is based on a broadly defined "market basket" of local services that 
includes monthly service charges, message unit charges, leased equipment, installation, service 
enhancements (such as tone dialing and call waiting), taxes, subscriber line charges, and all other 
consumer expenditures associated with local telephone services except long distance charges.  In 
contrast, the PPI index of monthly residential rates is much more narrowly defined.  It is based 
only on monthly service charges for residential service, optional tone dialing service, and 
subscriber line charges.  It excludes taxes and all other telephone service charges.  The annual 
rates of change for these two indices are presented in Table 7.3. 
 
 CPI data are available for intrastate toll and interstate toll services since December 1977. 
 Table 7.3 also presents the annual changes in these series for recent years. 
 
 Price indices are less reliable when industries are changing rapidly.  For example, in 
1992, long distance carriers began to increase basic long distance rates while at the same time 
greatly expanding their range of discount offerings aimed at medium and heavy users of long 
distance service.  The fixed market basket of toll calls measured for the CPI did not fully reflect 
these discounts.  In 1998, the CPI for telephone services was altered to include cellular telephone 
services, making the new index not directly comparable to prior years.  In 1995, BLS made 
major changes to the PPI telephone series, and there are no data after July 1995 comparable with 
prior data.  At that time the BLS introduced revenue-weighted telephone price indices.  The new 
indices categorize the telephone industry into much finer detail, though the new series are not 
comparable to the old in many categories.  Because of these sorts of difficulties, measures of 
average revenues are sometimes used as alternatives to price indices.  Monthly data for the new 
CPI telephone indices are shown in Table 7.4.  
 
With the release of data for January 2004, the Producer Price Index program changed its 
basis for industry classification from the 1987 Standard Industrial Classification (SIC) system to the 
North American Industry Classification System (NAICS). Developed in cooperation with Canada 
and Mexico, NAICS represents a profound change for statistical programs focusing on emerging 
economic activities. The system was developed using a production-oriented conceptual framework, 
grouping establishments into industries based on the activity in which they are primarily engaged.  
While many NAICS industries directly compare with SIC industries, a number of SIC industries 
were split or combined to form a new NAICS industry. The PPI treats the SIC-to-NAIC comparison 
as continuous if 80 percent or more of the weight of the SIC-based index comprises at least 80 
percent of the weight of the NAICS-based index. All index series that have passed this test are 
published under the NAICS structure using the index base date and price index history established 
by the SIC-based index.  Documentation of the NAICS to SIC concordance for all subsectors, 
industry groups, and products may be found at http:// www.bls.gov/ppi/ppinaics.htm.
3
 The current 
                     
3  Several telecommunications PPIs published by the BLS under the SIC classification system 
are no long published after the conversion to NAICS.  These include Other Local Service 
(SIC pcu4813#114), Other Local Service except Directory Assistance (SIC 
pcu4813#11409), LEC Intrastate Private Line Service (SIC pcu4813#311), Directory 
Advertising (SIC pcu4813#91), and Other Telephone Services (SIC pcu4813#99).  In 
addition, Directory Assistance (SIC pcu4813#11401) is now classified as Other Local 
 
 7 - 3 
PPI indices are shown in Table 7.5. 
 
Information on Rate Levels 
 
Local rates are regulated by state regulatory agencies and vary greatly from area to area. 
Characterization of any rate as "typical" is therefore difficult. Table 7.6 presents average local 
residential rates in urban areas. The price indices published by the BLS indicate percentage 
changes in the price of the telephone services. The BLS does not publish the actual level of rates. 
The averages shown in Table 7.6 are based on an FCC survey using the same sampling areas and 
weights that were used by the BLS in constructing the 1986 Consumer Price Index.
4
   In October 
2006 the national average for the representative total residential service charge was $25.27 
monthly. The average charge for connecting new phone service was $42.92. 
 
Table 7.7 presents average monthly local rates for single-line business customers in urban 
areas. Like the residential rates presented above, they are based on an FCC survey using the 
same sampling areas and weights used by the BLS in constructing the 1986 Consumer Price 
Index.  In October 2006, the representative average monthly charge was $45.31, while the 
average charge for connecting phone service was $72.26.    
 
 Table 7.8 contains average revenue per minute for interstate calls.  These estimates show 
that billed revenue per minute has declined over time for both international and domestic 
services. 
 
 
Standard Deviation Analysis of Residential Rates 
 
 In October 2003, the Federal Communications Commission adopted a recommendation 
by the Federal-State Joint Board on Universal Service establishing an annual adjusted nationwide 
urban rate benchmark for purposes of determining universal service support for non-rural 
carriers.  This benchmark is used by the states and the Commission as a tool to assess the 
reasonable comparability of rates in rural and high-cost areas served by non-rural carriers to 
                                                                                    
Service (NAICS 517110114) and Telephone Communications except Radiotelephone is 
now referred to as Wired Telecommunications Carriers.   
 
4  The form used in conducting the 2003 urban rate survey has been revised from previous 
years. Specifically, a more detailed breakout of carriers surcharges and taxes now appear 
as separate line items on the survey instrument.  All carriers are now required to submit 
all line-item data in terms of dollar amounts (whereas before some line items were 
reported as percentages). In addition, local rates pertaining to multiline-business 
customers are no longer requested.  These changes to the survey form allow for more 
accurate estimates of the total monthly recurring costs for basic local residential and 
single-line business service.  Note that all estimates for 2002-2006 reflect usage of the 
revised survey form, while estimates for years 2001 and prior reflect those obtained from 
the previous survey instrument. 
 
 
 7 - 4 
nationwide urban rates.
5
  The urban rate benchmark adopted by the Commission is based upon 
the most recent average urban residential rate as shown in Table 7.9.  
 
 Because of the great variation in urban rates nationwide, the Commission adopted a 
standard deviation analysis which measures the dispersion of urban rates from the average.  As 
such, an urban rate benchmark level of two (weighted) standard deviations above the (weighted) 
average urban rate is used.  Table 7.10 presents the results of such a standard deviation analysis 
for the residential rates reported in the Urban Rate Survey as of October 15, 2006.  The average, 
plus the two standard deviation benchmark, is $34.83.  Table 7.10 shows the historical trend in 
the standard deviation analysis for the years 1993-2006.  Over this period the average, plus the 
two standard deviation benchmark, rose by 22.59%.   
 
Subscriber Line and Access Charges 
 
Long distance companies rely on the loops, switches, and transport facilities of local 
telephone companies for access to their customers.  As a result, local telephone companies 
recover a portion of their costs from long distance companies accessing their networks.  Both the 
manner in which these access charges have been assessed and the proportion of the costs they 
have recovered have varied considerably over time. 
 
In the early 1980s, AT&T provided about three-quarters of the nation's local telephone 
service and almost all interstate long distance service.  Because revenue sharing was largely an 
internal process for AT&T, it was able to charge prices above cost for long distance calls and 
share the revenues with local telephone companies.  These transfers, while reducing the 
pressures on the local companies to raise monthly local rates, contributed to inefficiently high 
long distance rates.  The high rates were responsible for suppressing demand for long distance 
calls and inducing large corporations to bypass the public switched network.  Moreover, while 
such revenue sharing arrangements were sustainable in an industry where one firm monopolized 
both long distance and local service, they were not compatible with a competitive long distance 
industry.  
 
In mid-1984, the FCC, in cooperation with a Federal-State Joint Board comprised of both 
federal and state regulators, introduced sweeping changes to the way that local companies 
charged for their services.  The historic method of sharing revenues was replaced with a new 
system of access charges that provided a uniform method for local telephone companies to 
charge for the origination and termination of interstate traffic on their local networks.  In 
particular, monthly subscriber line charges (SLCs) were introduced to recover a portion of the 
fixed costs of the local telephone companies loops directly from end users on a per-line basis.  
Since local telephone companies were required to reduce their charges to long distance carriers -- 
dollar for dollar -- the introduction of SLCs permitted reductions in implicit subsidies from long 
distance service to local service.  The rebalancing of prices between local service and interstate 
long distance calls during the 1980s had a fundamental impact on the telephone industry as the 
                     
5  See Federal-State Joint Board on Universal Service, CC. Docket No. 96-45, Order on 
Remand, Further Notice of Proposed Rulemaking, and Memorandum Opinion and Order, 
18 FCC Rcd 22559, 22607-22610,  paras. 80-82 (2003), remanded, Qwest Corp. v. FCC, 
398 F. 3d 1222 (10
th
 Cir. 2005).   
 
 7 - 5 
price of long distance service fell and the volume of long distance calling surged.   
 
 In mid-1997, as part of its implementation of the 1996 Telecommunications Act, the FCC 
introduced further interstate access charge reform.  Presubscribed interexchange carrier charges 
(PICCs) were created in order to allow local carriers to recover the remaining portion of their 
fixed loop costs from long distance carriers on a per-line, instead of a per-minute, basis.  A 
further access charge reform was adopted on May 31, 2000, which eliminated the PICC and 
consolidated it with the SLC.  This took effect on July 1, 2000.
6
 
 
 Average monthly SLCs and PICCs are shown in Table 7.11 and average per-minute rates 
charged to long distance carriers are shown in Table 7.12.  Both tables report historical averages 
for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and 
LECs in the National Exchange Carrier Association (NECA) pool.  These LECs control over 
98% of the telecommunications industry's access lines regulated under Title II of the 
Telecommunications Act of 1996.
7
  Current per-line charges and per-minute charges are reported 
for each of the carriers in Tables 7.13 and 7.14, respectively. 
 
 The averages in Table 7.12 clearly illustrate the effectiveness of access reform in 
reducing the prices long distance carriers pay per minute for access to the local telephone 
companies' networks.  The reductions in per-minute access prices over time have been a major 
contributing factor to reductions in long distance prices. 
 
                     
6 Access Charge Reform, CC Docket No. 96-262, Sixth Report and Order, 15 Rcd. 12962 
(CALLS Order). 
 
7  Telecommunications Act of 1996, Pub. L. No. 104-104, 110 Stat. 56 (1996) (1996 Act).  
The 1996 Act amended the Communications Act of 1934.  47 U.S.C.  151 et seq. 
1956 - 2006 1996 - 2006
CPI All Items 4.1 % 2.5 %
CPI All Services 5.0 3.2
CPI Telephone Services  ** 1.7 -0.3
CPI Major Categories:
  -  Food & Beverages * 2.4 
  -  Housing * 2.9 
  -  Apparel 2.2 -1.0 
  -  Transportation 3.5 2.4 
  -  Medical Care 5.1 4.0 
  -  Recreation  * 1.3 
  -  Other Goods & Services * 4.1 
CPI Public Transportation 4.6 2.2 
CPI Utility Natural Gas Service 4.0 7.5 
CPI Electricity 3.1 2.5 
CPI Sewer & Water Maintenance 4.8 3.8 
CPI Postage 4.3 2.3 
*
**
Source:  Bureau of Labor Statistics.
Chart 7.1
The CPI telephone service index was revised in December of 1997.
Table 7.1
Long-Term Changes for Various Price Indices
(Annual Rates of Change) 
Series not established until after 1954.
CPI All Items and CPI Telephone Services
1982 - 1984  = 100
0.0
50.0
100.0
150.0
200.0
250.0
1924 1928 1932 1936 1940 1944 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004
CPI  All Items CPI  Telephone Services
 7 - 6
1978 7.3 % 9.0 % 0.9 %
1979 8.7 13.3 0.7
1980 9.7 12.5 4.6
1981 8.3 8.9 11.7
1982 5.2 3.8 7.2
1983 3.4 3.8 3.6
1984 3.6 3.9 9.2
1985 2.8 3.8 4.7
1986 2.3 1.1 2.7
1987 2.9 4.4 -1.3
1988 3.7 4.4 1.3
1989 3.5 4.6 -0.3
1990 4.1 6.1 -0.4
1991 3.1 3.1 3.5
1992 2.1 2.9 -0.3
1993 2.3 2.7 1.8
1994 2.2 2.7 0.7
1995 2.0 2.5 1.2
1996 1.9 3.3 2.1
1997 1.5 1.7 0.2
1998 1.1 1.6 0.3 *
1999 1.5 2.7 0.4
2000 2.3 3.4 -2.3
2001 2.5 1.6 1.3
2002 1.5 2.4 0.2
2003 1.7 1.9 -2.7
2004 2.4 3.3 -2.5
2005 3.6 3.4 0.4
2006 3.2 2.5 1.7
* The CPI telephone service index was revised in December of 1997.
Sources:  Bureau of Labor Statistics and Bureau of Economic Analysis.
Chart 7.2
Table 7.2
Annual Changes in Major Price Indices
GDP Chain-type 
Price Index
CPI - All Items
CPI - Telephone 
Services
Note: All values calculated as the percent change from December of the 
previous year through December of the year shown, except the GDP price 
index, which is based on changes from 4th quarter to 4th quarter.
CPI All Items and Telephone Services
-20
-10
0
10
20
1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
P
e
rcen
t Ch
an
g
e
 fro
m
 P
r
i
o
r Y
ear
CPI - All Items CPI - Telephone Service
 7 - 7
1978 1.4 % 3.1 % -0.7 % 0.0 % 1.3 % 0.1 %
1979 1.7 1.6 -0.8 -0.9 0.1 -0.7
1980 7.0 7.1 3.4 5.5 -0.6 2.3
1981 12.6 15.6 14.6 15.9 6.2 8.0
1982 10.8 9.0 2.7 3.9 4.2 1.7
1983 3.1 0.2 1.4 0.0 7.4 3.9
1984 17.2 10.4 -4.3 -5.1 3.6 3.8
1985 8.9 12.4 -3.7 -3.0 0.6 2.1
1986 7.1 8.9 -9.4 -10.0 0.3 -3.5
1987 3.3 2.6 -12.4 -11.8 -3.0 -3.0
1988 4.5 4.6 -4.2 -2.1 -4.2 -3.8
1989 0.6 1.9 -1.3 -1.7 -2.6 0.5
1990 1.0 1.5 -3.7 -0.1 -2.2 -2.2
1991 5.1 2.1 1.3 -1.3 -1.5 -2.6
1992 0.5 -0.2 -1.3 1.0 -2.4 1.3
1993 1.0 0.8 6.5 3.8 0.2 -1.1
1994 -0.3 0.7 5.4 6.1 -1.0 -1.4
1995 2.6 ** 0.1 ** -3.8 **
1996 0.9 0.2 3.7 0.8 6.1 0.9
1997 1.0 0.1 -4.3 7.8 2.8 -4.3
1998 1.3 0.0 -0.8 -0.4 1.5 -3.7
1999 2.8 0.2 -0.7 2.4 -1.6 -2.8
2000 5.5 1.5 -11.2 -4.3 -6.0 0.2
2001 4.5 2.7 2.0 -9.4 -1.7 1.7
2002 5.3 1.6 -5.9 -18.5 -6.1 -0.3
2003 2.6 1.9 -10.9 -2.4 -9.4 -12.6
2004 1.1 0.7 -8.7 0.7 -6.6 -2.9
2005 3.3 0.9 -3.0 7.4 0.4 0.2
2006 2.2 2.7 5.1 20.6 3.3 1.2
Chart 7.3
CPI PPI
Source:  Bureau of Labor Statistics.
 *    CPI toll indices represent rates for households.   Through 1994, PPI toll indices represent rate changes for both 
business and residential consumers.  Since 1995, PPI indices reflect rates for residential customers.
CPI PPI CPI PPI
Note: All values calculated as the percent change from December of the previous year through December of the year 
shown.
 **  The PPI telephone indices were revised in June of 1995.  The series are not comparable. 
Table 7.3
Annual Changes in Price Indices for 
Local and Long Distance Telephone Services
Local Residential Service
Toll Service *
Interstate Intrastate
CPI Telephone Service Price Indices
-20
-10
0
10
20
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006
Per
cen
t
 C
h
an
g
e
 f
r
o
m
 Pr
io
r
 Year
CPI Local Services CPI Interstate Toll CPI Intrastate Toll
7 - 8
All Goods 
and Services
Telephone 
Services
Land-line telephone 
services, local 
charges
Land-line telephone 
services, long 
distance charges
Land-line 
interstate toll 
calls
Land-line intrastate 
toll calls
Wireless 
Telephone 
Services
CUUR0000SA0 CUUR0000SEED CUUR0000SEED01 CUUR0000SEED02 CUUR0000SS27051 CUUR0000SS27061 CUUR0000SEED03
2000 January 104.6 100.9 104.8 98.5 98.3 100.1 80.6
February 105.3 99.4 104.9 95.5 94.0 99.2 79.7
March 106.1 98.9 105.1 94.4 93.1 98.5 79.2
April 106.2 98.6 105.2 93.7 92.4 97.8 78.9
May 106.3 98.5 105.3 93.4 92.0 97.6 78.2
June 106.9 97.2 105.8 90.6 89.0 95.0 76.8
July 107.1 98.2 107.3 91.3 89.8 95.7 74.9
August 107.1 98.9 109.5 90.7 89.2 95.1 73.7
September 107.7 97.0 108.5 87.9 86.2 92.0 72.8
October 107.9 98.3 109.8 89.4 87.9 92.9 73.0
November 107.9 97.5 110.3 87.2 85.0 91.9 72.9
December 107.9 98.4 110.0 89.5 87.5 93.9 71.1
2001 January 108.6 98.8 110.5 89.9 88.0 94.2 68.9
February 109.0 98.7 110.7 89.5 87.6 93.7 68.9
March 109.2 99.4 110.9 90.7 89.0 94.5 68.7
April 109.7 99.0 111.9 89.1 87.2 93.1 68.8
May 110.2 98.7 112.1 88.2 86.2 92.6 68.5
June 110.4 99.0 112.3 88.7 86.7 93.0 68.1
July 110.0 99.6 113.2 88.9 86.8 93.0 68.6
August 110.0 99.6 113.9 88.5 86.4 92.7 68.1
September 110.5 99.2 114.1 87.6 85.5 92.0 67.2
October 110.2 99.9 114.6 88.5 86.4 92.9 67.1
November 110.0 99.6 114.8 87.6 85.5 92.2 67.5
December 109.5 99.7 114.9 87.9 85.8 92.3 67.2
2002 January 109.8 100.3 115.7 88.2 86.2 92.6 67.5
February 110.2 100.3 116.1 87.9 85.8 92.6 67.5
March 110.8 99.1 114.1 87.0 85.0 91.5 67.5
April 111.5 98.2 114.0 85.1 82.7 90.1 67.6
May 111.5 99.3 116.8 85.2 82.6 90.4 66.7
June 111.5 99.2 116.9 85.0 82.4 90.1 66.6
July 111.7 99.5 118.7 84.0 81.3 89.1 67.0
August 112.0 100.6 120.2 84.7 82.6 89.1 67.8
September 112.2 100.1 120.4 83.7 81.4 88.2 67.5
October 112.4 99.9 120.6 83.0 80.7 87.5 67.9
November 112.4 99.8 120.8 82.7 80.7 87.0 67.5
December 112.2 99.9 121.0 82.6 80.7 86.7 67.4
2003 January 112.6 100.4 121.3 83.4 81.9 87.0 67.6
February 113.5 100.5 121.2 83.5 82.2 86.9 67.7
March 114.2 99.7 121.7 81.5 79.8 85.1 67.6
April 113.9 98.7 121.9 79.2 77.4 83.1 67.5
May 113.7 98.1 122.0 77.9 76.0 81.8 67.5
June 113.8 97.5 122.2 76.7 74.6 80.8 66.3
July 114.0 98.1 123.1 77.2 75.6 80.8 66.2
August 114.4 97.8 123.7 76.0 74.0 79.7 66.1
September 114.8 97.4 123.8 75.2 73.3 78.9 66.1
October 114.6 97.1 124.0 74.3 72.1 78.7 66.1
November 114.3 97.2 124.2 74.1 71.8 78.3 66.7
December 114.2 97.2 124.1 74.3 72.0 78.6 66.5
Table 7.4
Consumer Price Indices
(December 1997 = 100)
BLS Series ID
 7 - 9
All Goods 
and Services
Telephone 
Services
Land-line telephone 
services, local 
charges
Land-line telephone 
services, long 
distance charges
Land-line 
interstate toll 
calls
Land-line intrastate 
toll calls
Wireless 
Telephone 
Services
CUUR0000SA0 CUUR0000SEED CUUR0000SEED01 CUUR0000SEED02 CUUR0000SS27051 CUUR0000SS27061 CUUR0000SEED03
Table 7.4
Consumer Price Indices
(December 1997 = 100)
BLS Series ID
2004 January 114.8 97.0 124.4 73.9 71.6 78.0 66.3
February 115.4 97.1 124.2 73.9 71.6 77.8 66.6
March 116.1 96.7 124.2 73.1 70.6 77.2 66.5
April 116.5 96.5 123.9 72.8 70.1 77.2 66.4
May 117.2 95.9 124.2 71.3 68.8 75.5 66.5
June 117.6 95.8 124.2 71.2 68.4 75.4 66.4
July 117.4 95.6 124.7 70.1 67.6 74.2 66.5
August 117.5 95.0 124.7 68.7 66.0 72.9 66.5
September 117.7 95.3 124.9 69.6 67.0 73.9 66.3
October 118.4 94.6 125.2 68.3 65.7 72.6 65.5
November 118.4 94.9 125.1 69.3 66.4 74.0 65.5
December 118.0 94.8 125.5 68.6 65.7 73.4 65.6
2005 January 118.2 94.8 125.9 68.5 65.7 72.9 65.3
February 118.9 95.1 126.9 68.5 65.3 73.8 65.4
March 119.8 95.0 127.4 67.9 64.9 72.5 65.2
April 120.6 95.3 127.8 68.4 64.9 73.4 65.2
May 120.5 94.8 127.3 67.5 64.0 72.6 65.2
June 120.6 94.6 127.5 67.1 63.7 72.1 65.2
July 121.1 94.4 128.0 66.7 63.3 72.3 64.7
August 121.8 94.1 128.6 65.5 62.0 71.2 64.7
September 123.2 95.1 128.6 67.7 64.5 73.4 64.8
October 123.5 94.6 128.8 66.5 63.2 72.1 64.8
November 122.5 95.2 129.1 67.8 64.1 74.0 64.6
December 122.0 95.2 129.5 67.4 63.7 73.7 64.6
2006 January 122.9 95.2 129.1 67.7 64.1 73.8 64.6
February 123.2 95.2 129.2 67.7 64.2 73.8 64.6
March 123.9 95.0 129.4 67.2 63.8 72.9 64.6
April 124.9 95.4 129.5 68.4 64.9 74.4 64.3
May 125.5 95.2 129.8 67.7 64.1 73.8 64.3
June 125.8 95.4 130.0 67.9 64.5 73.9 64.4
July 126.2 95.6 130.7 67.6 64.1 73.5 64.7
August 126.4 95.9 131.2 68.2 64.8 73.9 64.6
September 125.8 96.1 131.8 68.3 65.0 74.0 64.7
October 125.1 96.8 131.9 69.8 67.0 75.5 64.6
November 124.9 96.5 132.0 69.3 66.8 75.3 64.6
December 125.1 96.8 132.4 69.6 66.9 76.1 64.6
2007 January 125.5 96.9 132.5 69.8 67.2 75.9 64.6
February 126.2 97.1 133.3 69.9 67.2 75.9 64.6
March 127.3 97.5 133.9 70.5 67.2 76.7 64.6
April 128.1 97.6 134.6 70.3 67.5 76.6 64.6
May 128.9 98.5 135.0 72.2 68.6 80.6 64.5
Note: Figures for All Goods and Services, Local Telephone Service, Interstate Toll Service, and Intrastate Toll Service after May, 2000 are converted from 1982-
1984 base index series reported by the Bureau of Labor Statistics. Historical data on these series based upon the 1982-1984 index for January, 1972 through 
May, 2000 can be found in the Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring Report  (October 2002).
 7 - 10
Wired 
Telecommunications 
Carrier
Local Service, 
except 
Private Lines
Residence 
Local Service
Business 
Local Service
Coin Local 
Service
Other Local Service
NAICS Series ID
2000 January 112.6 95.6 92.7 99.0 97.9 86.4
February 111.8 95.6 92.7 99.1 97.9 86.4
March 112.7 95.7 92.7 99.3 97.9 86.4
April 111.8 95.7 92.9 99.1 97.7 86.4
May 111.0 95.7 93.0 99.0 98.1 86.4
June 111.8 95.8 93.1 98.9 98.5 86.4
July 111.8 96.3 94.0 99.0 98.9 86.4
August 111.7 96.3 94.0 99.0 99.3 86.4
September 111.5 96.5 94.1 99.0 99.7 86.6
October 111.0 96.4 94.1 98.9 99.7 86.6
November 110.5 96.4 94.1 99.0 99.7 86.6
December 110.4 96.4 94.1 99.0 99.7 86.9
2001 January 109.6 96.4 94.1 98.9 99.7 86.9
February 109.3 96.5 94.2 98.9 99.7 86.9
March 109.4 96.5 94.2 98.9 99.7 86.9
April 109.2 96.8 94.7 99.2 99.6 86.9
May 109.1 96.8 94.8 99.1 99.5 86.9
June 108.7 97.0 95.1 99.1 99.7 86.9
July 108.7 97.7 96.4 99.1 99.8 87.2
August 109.1 97.7 96.5 99.1 99.9 87.2
September 109.3 97.8 96.5 99.2 100.1 87.2
October 107.1 97.9 96.6 99.2 100.3 87.2
November 107.1 97.9 96.6 99.2 100.3 87.2
December 106.0 97.8 96.6 99.2 100.3 87.2
2002 January 105.1 98.2 97.2 99.4 100.3 87.2
February 104.6 98.2 97.2 99.4 100.3 87.2
March 104.4 98.3 97.2 99.4 100.4 87.2
April 103.9 98.3 97.3 99.4 100.4 87.2
May 104.4 98.3 97.3 99.4 100.4 87.2
June 104.2 98.4 97.4 99.5 100.4 87.2
July 103.8 98.8 98.0 99.6 100.4 99.3
August 104.3 98.8 98.0 99.6 100.4 99.3
September 104.2 98.8 98.1 99.5 100.0 99.7
October 101.6 98.8 98.1 99.5 100.0 99.7
November 102.7 98.8 98.1 99.5 100.0 99.7
December 102.2 98.8 98.1 99.5 100.0 99.7
2003 January 101.8 98.8 98.1 99.5 100.0 99.7
February 102.0 98.8 98.1 99.5 100.0 99.7
March 101.9 98.8 98.1 99.5 100.0 99.7
April 101.6 99.3 98.7 99.9 100.0 99.7
May 102.1 99.6 99.2 100.0 100.0 99.7
June 102.1 99.8 99.7 100.0 100.0 99.7
July 102.2 100.0 100.0 100.0 100.0 100.0
August 102.3 100.0 100.0 100.0 100.0 100.0
September 101.9 100.0 100.0 100.0 100.0 100.0
October 101.3 100.0 100.0 100.0 100.0 100.0
November 100.7 100.0 100.0 100.0 100.0 100.0
December 100.0 100.0 100.0 100.0 100.0 100.0
517110 5171101 517110111 517110112 517110113 517110114
(December 2003 = 100)
Producer Price Indices
Table 7.5
 7-11
Wired 
Telecommunications 
Carrier
Local Service, 
except 
Private Lines
Residence 
Local Service
Business 
Local Service
Coin Local 
Service
Other Local Service
NAICS Series ID 517110 5171101 517110111 517110112 517110113 517110114
(December 2003 = 100)
Producer Price Indices
Table 7.5
2004 January 100.4 100.2 100.3 100.0 100.0 100.0
February 99.8 100.2 100.3 100.0 100.0 100.0
March 100.0 100.2 100.3 100.0 100.0 100.0
April 99.8 100.2 100.3 100.0 100.0 100.0
May 99.5 100.2 100.3 100.0 100.0 100.0
June 99.6 100.2 100.3 100.0 100.0 100.0
July 99.4 100.2 100.3 100.0 100.0 100.0
August 99.5 100.2 100.3 100.0 100.0 100.0
September 99.2 100.2 100.4 100.1 100.0 100.2
October 99.0 100.3 100.5 100.1 100.0 100.6
November 98.9 100.4 100.6 100.1 100.0 100.6
December 98.6 100.4 100.7 100.1 100.0 100.6
2005 January 98.9 100.8 101.3 100.2 100.0 100.6
February 98.3 100.8 101.3 100.3 99.8 100.6
March 98.5 100.8 101.3 100.3 99.6 100.6
April 98.8 100.8 101.3 100.4 99.4 100.6
May 98.9 100.8 101.3 100.4 99.4 100.6
June 99.1 100.8 101.3 100.4 99.4 100.6
July 99.4 100.9 101.5 100.4 99.4 100.6
August 99.4 100.9 101.5 100.4 99.4 100.6
September 99.1 100.9 101.5 100.4 99.4 100.6
October 99.2 100.9 101.5 100.4 99.4 100.6
November 98.9 100.9 101.5 100.4 99.4 100.6
December 98.9 100.9 101.6 100.4 99.4 100.6
2006 January 98.6 101.1 101.9 100.5 99.4 100.6
February 98.5 101.3 102.3 100.5 99.4 100.6
March 99.0 101.4 102.4 100.5 99.4 100.6
April 98.8 101.4 102.4 100.6 99.4 102.1
May 99.1 101.9 103.3 100.6 99.4 102.1
June 99.5 102.0 103.3 100.8 99.4 102.1
July 99.9 102.0 103.4 100.8 99.4 102.1
August 100.3 102.2 103.7 100.8 99.4 102.1
September 100.7 102.2 103.7 100.8 99.4 102.1
October 101.4 102.2 103.7 100.8 99.4 102.1
November 100.8 102.6 104.2 101.1 99.4 102.1
December 101.6 102.7 104.3 101.3 99.4 102.1
2007 January 101.1 102.8 104.3 101.3 99.4 103.5
February 101.3 102.8 104.4 101.3 99.4 103.5
March 101.9 102.9 104.3 101.8 99.4 103.5
April* 102.1 102.9 104.3 101.8 99.4 102.1
May* 102.1 102.9 104.3 101.8 99.4 103.5
June* 103.1 102.9 104.3 101.8 99.4 103.5
* Subject to revision.
 7-12
Public 
Switched Toll 
Service
Residence 
Switched Toll 
Service
Intrastate 
Residence 
Switched Toll 
Service
Interstate 
Residence 
Switched Toll 
Service
International 
Residence 
Switched Toll 
Service
Business 
Switched Toll 
Service
Business 
Switched 
Access Toll 
Service
NAICS Series ID
2000 January 135.3 129.4 113.2 146.0 216.0 144.8 147.6
February 133.4 126.2 115.0 136.2 210.7 144.8 143.8
March 135.4 128.9 113.5 144.1 218.1 145.6 147.4
April 133.3 126.9 112.8 139.8 214.3 143.5 144.5
May 131.3 124.5 111.9 135.1 210.1 142.1 144.3
June 133.3 127.5 112.8 141.6 214.4 142.5 145.5
July 132.4 126.4 112.1 138.8 217.6 142.0 146.4
August 132.4 126.3 112.1 139.0 214.8 142.1 146.3
September 131.7 127.1 112.2 142.4 206.3 139.1 143.3
October 130.7 124.9 111.7 138.4 197.0 140.0 144.1
November 129.1 124.3 112.5 137.7 185.9 136.9 139.7
December 129.0 125.1 112.8 138.8 191.4 135.2 138.7
2001 January 127.0 123.5 111.5 135.3 194.8 132.6 135.5
February 126.4 123.4 112.5 133.5 197.8 131.2 136.0
March 126.6 123.8 113.2 134.0 195.9 131.0 135.4
April 125.8 123.4 112.7 133.5 196.2 129.5 135.0
May 125.4 123.6 112.6 134.5 193.0 128.2 132.8
June 124.3 122.5 113.7 131.8 183.6 127.1 131.0
July 123.6 122.3 114.2 130.6 185.1 125.6 130.4
August 124.5 124.4 114.4 137.7 175.1 124.7 128.7
September 124.8 122.9 114.6 134.4 169.2 127.9 130.5
October 119.5 118.5 113.3 125.4 158.8 121.0 124.5
November 119.4 119.3 114.1 128.8 146.0 119.7 120.1
December 116.8 118.2 114.7 125.7 142.2 114.7 115.4
2002 January 114.3 116.2 114.0 121.2 140.6 111.3 112.4
February 113.1 114.2 114.5 116.1 135.6 111.6 113.5
March 112.6 113.3 114.2 115.3 128.6 111.5 113.8
April 111.4 112.5 113.8 112.7 131.9 109.8 113.6
May 112.4 112.0 113.9 111.7 129.7 113.0 114.1
June 112.0 111.7 113.6 110.5 133.1 112.4 115.0
July 110.5 111.4 113.2 110.1 134.5 109.2 111.5
August 111.7 112.8 115.8 110.8 135.2 110.1 112.0
September 111.4 111.3 115.8 107.2 132.3 111.4 112.6
October 105.1 103.4 115.6 86.5 125.9 107.7 110.0
November 107.8 108.4 115.2 101.8 122.4 106.8 108.1
December 106.7 108.4 114.4 102.5 123.3 104.0 106.9
2003 January 105.7 107.1 114.2 99.2 122.3 103.5 105.9
February 106.1 106.9 104.5 110.4 118.9 105.0 106.7
March 105.9 107.0 104.4 111.0 118.2 104.2 105.1
April 104.7 104.8 103.8 106.3 113.8 104.6 106.3
May 105.4 106.6 104.1 111.7 109.9 103.5 103.9
June 105.1 105.7 104.1 109.7 108.1 104.2 105.7
July 105.3 106.5 103.8 110.6 116.2 103.6 103.7
August 105.5 106.6 103.6 111.8 113.1 103.9 103.9
September 104.5 104.7 102.7 108.5 108.4 104.2 104.7
October 103.1 104.0 102.0 108.1 104.0 101.8 103.0
November 101.7 102.0 101.2 104.0 101.6 101.2 100.5
December 100.0 100.0 100.0 100.0 100.0 100.0 100.0
517110212 517110213 51711022 5171102215171102 51711021 517110211
(December 2003 = 100)
Producer Price Indices - Continued
Table 7.5
 7-13
Public 
Switched Toll 
Service
Residence 
Switched Toll 
Service
Intrastate 
Residence 
Switched Toll 
Service
Interstate 
Residence 
Switched Toll 
Service
International 
Residence 
Switched Toll 
Service
Business 
Switched Toll 
Service
Business 
Switched 
Access Toll 
Service
NAICS Series ID 517110212 517110213 51711022 5171102215171102 51711021 517110211
(December 2003 = 100)
Producer Price Indices - Continued
Table 7.5
2004 January 100.7 101.1 99.3 104.1 98.4 100.1 100.1
February 99.5 99.3 98.7 99.4 100.3 99.7 99.5
March 99.7 100.2 98.3 103.9 93.2 99.0 98.8
April 99.2 99.8 98.1 102.3 95.7 98.5 98.1
May 98.7 99.5 98.0 102.4 93.0 97.4 96.7
June 98.8 99.6 98.1 102.9 91.1 97.7 97.4
July 98.3 99.7 98.4 102.2 94.2 96.3 96.5
August 98.6 100.6 98.5 104.4 94.7 95.6 96.0
September 97.9 99.6 97.8 102.9 91.7 95.5 95.7
October 97.3 99.8 98.2 103.2 91.6 93.7 93.5
November 96.9 98.8 97.9 102.1 85.5 93.9 94.6
December 96.2 98.1 97.1 100.7 86.5 93.3 93.2
2005 January 96.5 98.8 97.4 101.7 89.6 93.1 92.8
February 94.9 96.8 96.1 97.7 89.2 92.0 91.7
March 95.5 98.7 96.8 101.8 90.5 90.8 91.3
April 96.1 98.9 97.0 101.6 93.4 91.9 91.8
May 96.3 100.1 97.0 105.6 90.9 90.5 89.8
June 96.8 100.6 97.8 105.8 92.3 91.1 90.7
July 97.4 102.2 98.2 108.5 98.1 90.2 89.9
August 97.3 102.3 98.0 109.1 98.0 89.9 89.7
September 96.8 100.9 97.9 105.3 97.9 90.6 89.7
October 96.8 101.5 98.1 107.4 94.9 89.9 89.3
November 96.2 101.0 97.5 107.2 93.1 88.9 90.3
December 96.1 101.5 97.3 108.2 95.4 87.9 88.8
2006 January 95.2 100.4 97.5 104.5 96.8 87.4 88.3
February 94.5 99.9 96.4 105.4 91.8 86.6 87.6
March 95.6 101.8 96.6 110.6 91.8 86.4 87.2
April 95.2 100.7 97.4 106.2 93.4 86.9 88.0
May 95.2 102.9 94.7 115.8 91.8 83.8 84.0
June 96.1 103.4 97.5 113.3 95.6 85.1 85.8
July 97 105 97.8 116.2 101.8 84.9 85.7
August 97.7 106 98.1 119.3 98.5 85.2 86.7
September 98.8 107.3 98.3 123.0 97.3 86 87
October 100.4 109.9 98.3 129 97.8 86.2 86.2
November 98.6 108.1 98.4 125.2 95.7 84.4 86.2
December 100.4 110.9 98.5 130.5 100.9 84.5 85.9
2007 January 98.3 106.1 97.7 118 113.9 85.4 86.6
February 99 108.6 100.2 119.6 120.5 84.1 85.4
March 100.7 111.3 100.6 124.3 120.6 85 84.7
April* 101.6 113.5 99.9 127.3 125.1 84.4 84.4
May* 101.4 113.9 100.8 128.3 122.9 83.7 83.4
June* 104.7 120 103.6 137.2 126.4 84 84.3
 7-14
Outbound 
Business 
Switched 
Access Toll 
Service
Intrastate 
Business 
Switched Access 
Toll Service, 
Outbound
Interstate 
Business 
Switched Access 
Toll Service, 
Outbound
International 
Business Switched 
Access Toll 
Service, Outbound
Inbound 
Business 
Switched Access 
Toll Service
Intrastate 
Business 
Switched Access 
Toll Service, 
Inbound
Interstate 
Business 
Switched Access 
Toll Service, 
Inbound
International 
Business 
Switched 
Access Toll 
Service, 
Inbound
NAICS Series ID
2000 January 171.5 116.0 344.3 252.6 114.1 117.8 124.0 165.1
February 165.6 115.0 328.1 228.2 113.4 116.9 122.6 162.4
March 170.4 116.7 355.8 205.7 115.2 126.8 121.3 173.5
April 168.0 115.5 346.1 209.0 111.5 115.8 120.9 127.7
May 168.8 115.5 346.0 219.6 109.9 114.0 117.8 122.4
June 169.0 115.8 347.8 215.5 112.5 114.6 125.4 112.7
July 170.6 115.7 346.1 239.9 112.3 114.4 125.2 110.4
August 170.7 115.7 346.9 238.1 112.0 113.8 124.1 117.3
September 168.2 115.5 344.4 216.5 108.3 103.2 120.2 112.6
October 166.2 115.3 338.9 206.4 113.2 115.7 126.6 114.7
November 160.3 114.3 321.1 186.9 110.8 112.8 122.5 105.0
December 159.1 113.5 314.5 195.1 110.0 111.2 120.1 116.7
2001 January 154.7 112.6 299.3 186.2 108.5 109.6 117.5 110.7
February 153.2 112.1 299.1 172.0 112.0 114.0 125.2 101.4
March 152.9 112.7 290.4 184.5 111.0 112.6 122.6 111.3
April 152.9 111.4 301.0 169.3 109.8 110.4 120.6 109.8
May 150.1 110.7 291.9 163.6 108.5 110.6 117.1 107.4
June 146.2 111.0 271.3 163.9 109.8 111.2 120.3 106.9
July 146.3 111.5 270.3 164.1 108.1 112.4 115.0 106.9
August 144.9 111.3 268.0 154.1 106.0 108.2 111.9 102.8
September 148.2 110.5 285.1 158.2 105.7 105.8 111.6 112.5
October 137.0 108.0 243.0 145.1 107.1 111.2 113.5 99.5
November 134.7 109.5 221.6 158.6 99.7 103.3 97.6 98.4
December 125.4 105.8 190.1 152.1 101.5 94.1 108.4 87.4
2002 January 122.0 105.7 176.0 145.0 99.0 101.2 98.5 81.0
February 121.5 105.6 172.5 146.2 102.3 104.3 104.9 82.2
March 123.1 105.4 179.6 151.0 100.9 105.2 100.3 86.2
April 122.1 105.1 170.7 160.0 101.7 101.0 105.5 78.8
May 121.6 103.9 155.6 190.4 103.7 105.4 107.2 88.8
June 122.5 104.4 165.5 178.1 104.4 104.2 109.7 88.8
July 118.4 104.1 154.8 158.4 101.9 105.3 102.9 85.3
August 116.5 104.0 152.4 143.4 105.6 107.7 110.5 91.2
September 117.2 104.0 153.3 148.8 106.3 108.1 109.4 119.5
October 114.7 103.5 153.2 127.5 103.4 104.2 103.7 126.5
November 113.8 103.0 150.8 125.2 100.2 101.6 99.6 98.9
December 110.9 102.5 139.1 121.4 101.4 100.2 103.5 98.1
2003 January 109.7 102.1 133.0 123.4 100.6 104.7 97.7 113.0
February 108.2 101.9 128.6 118.1 104.5 105.3 106.7 117.6
March 108.2 102.0 127.0 120.0 100.8 105.5 97.5 114.0
April 108.2 101.3 129.8 119.9 103.6 105.6 104.0 120.0
May 104.7 100.9 117.6 109.2 102.8 105.8 101.4 124.6
June 105.8 101.1 118.2 118.2 105.4 107.6 107.6 118.7
July 103.9 100.7 108.2 119.9 103.4 107.5 100.3 142.0
August 104.1 100.6 107.3 124.2 103.6 107.7 102.0 130.7
September 103.0 100.5 107.8 112.9 107.1 111.9 106.6 149.1
October 102.7 100.5 111.1 104.0 103.3 107.1 101.6 129.5
November 100.9 100.2 103.0 102.0 99.8 103.9 96.9 103.3
December 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
5.1711E+1051711022113 5171102212 51711022121 517110221225171102211 51711022111 51711022112
(December 2003 = 100)
Table 7.5
Producer Price Indices - Continued
 7-15
Outbound 
Business 
Switched 
Access Toll 
Service
Intrastate 
Business 
Switched Access 
Toll Service, 
Outbound
Interstate 
Business 
Switched Access 
Toll Service, 
Outbound
International 
Business Switched 
Access Toll 
Service, Outbound
Inbound 
Business 
Switched Access 
Toll Service
Intrastate 
Business 
Switched Access 
Toll Service, 
Inbound
Interstate 
Business 
Switched Access 
Toll Service, 
Inbound
International 
Business 
Switched 
Access Toll 
Service, 
Inbound
NAICS Series ID 5.1711E+1051711022113 5171102212 51711022121 517110221225171102211 51711022111 51711022112
(December 2003 = 100)
Table 7.5
Producer Price Indices - Continued
2004 January 99.6 99.9 100.5 94.8 100.8 101.9 101.4 93.4
February 98.0 98.8 95.1 97.1 101.5 100.0 104.7 90.4
March 98.1 99.8 95.4 90.2 99.9 100.8 101.2 77.6
April 97.2 99.1 92.1 91.9 99.3 101.4 98.6 85.8
May 96.0 98.5 89.2 89.7 97.6 100.7 94.6 85.7
June 96.4 98.6 89.8 91.6 98.8 100.3 98.1 84.0
July 95.8 98.5 86.3 93.0 97.5 99.7 94.8 87.5
August 95.9 98.3 87.5 93.3 96.1 101.7 90.1 87.6
September 95.1 98.0 85.1 90.7 96.4 102.1 90.8 86.2
October 91.9 96.3 78.0 82.9 95.7 101.4 89.6 83.3
November 92.7 97.5 79.2 80.6 97.2 101.6 94.0 76.1
December 91.9 96.7 75.8 84.1 95.1 100.2 88.6 84.5
2005 January 90.9 96.5 73.8 79.8 95.3 99.2 90.4 78.7
February 90.9 96.5 74.1 79.2 92.8 97.8 84.9 77.3
March 90.6 96.4 73.8 76.6 92.2 99.1 82.5 79.6
April 90.7 96.5 74.6 76.1 93.2 101.4 83.8 78.3
May 89.1 95.9 69.7 72.3 90.8 101.5 77.8 75.1
June 89.1 96.3 68.6 72.7 92.9 99.8 84.0 75.8
July 88.2 96.0 66.2 69.6 92.3 99.9 82.4 77.1
August 88.3 95.8 67.4 69.1 91.7 99.6 81.6 72.0
September 87.5 95.5 65.6 66.7 92.7 97.5 85.2 73.1
October 87.4 95.4 65.7 65.7 92.0 97.0 84.1 70.1
November 87.7 95.9 65.9 65.4 93.8 98.7 88.0 65.0
December 86.9 95.4 64.2 63.7 91.5 97.4 81.9 77.5
2006 January 86.7 95.0 63.1 67.2 90.5 96.4 80.7 68.8
February 85.1 94.4 58.4 63.0 91.1 96.6 82.5 63.5
March 85.5 94.5 59.0 65.0 89.7 95.8 78.6 72.8
April 85.4 94.6 59.7 63.2 91.6 94.7 85.1 60.3
May 84.5 94.3 57.8 59.1 83.3 93.0 64.9 61.4
June 82.8 94.1 50.7 56.2 89.9 94.0 81.2 63.6
July 84.2 94.4 56.7 57.7 87.8 94.6 75.5 61.5
August 84.8 94.6 54.7 65.8 89.3 94.9 79.0 62.7
September 85.5 95.6 57.0 61.8 89.2 94.8 79.1 59.0
October 84.3 95.1 54.8 58.3 88.7 95.5 78.1 57.1
November 84.8 95.2 57.7 56.5 88.2 95.0 77.5 57.6
December 83.7 94.9 56.7 49.9 89.0 94.6 78.9 59.9
2007 January 84.8 94.9 58.1 51.0 89.0 94.6 79.4 57.5
February 83.4 94.6 57.2 47.2 88.1 94.2 78.0 58.2
March 83.0 94.8 56.1 48.3 86.9 94.5 74.2 64.6
April* 82.9 94.9 57.1 44.7 86.4 94.6 74.5 59.5
May* 82.1 94.9 56.2 42.9 85.0 94.5 73.5 54.2
June* 82.9 95.1 56.9 44.3 86.0 94.5 74.0 59.1
 7-16
Business 
Special 
Access 
Switched Toll 
Service, 
except Private 
Lines
Outbound 
Business 
Special Access 
Switched Toll 
Service
Intrastate 
Business Special 
Access Switched 
Toll Service, 
Outbound
Interstate 
Business Special 
Access Switched 
Toll Service, 
Outbound
International 
Business Special 
Access Switched 
Toll Service, 
Outbound
Inbound 
Business Special 
Access Switched 
Toll Service
Intrastate 
Business Special 
Access Switched 
Toll Service, 
Inbound
NAICS Series ID
2000 January 137.8 137.1 100.3 157.7 169.6 139.3 127.7
February 147.6 150.3 118.0 182.2 178.0 145.0 135.1
March 141.3 142.6 111.7 173.5 162.5 140.5 129.3
April 141.2 144.1 112.3 176.4 164.4 138.2 126.2
May 136.6 140.2 106.8 169.7 160.9 132.9 119.3
June 135.0 136.8 109.4 170.1 145.0 133.4 120.0
July 131.1 132.9 105.5 168.5 133.3 129.5 115.0
August 131.5 132.1 107.4 169.5 127.4 131.6 117.7
September 128.5 126.0 98.8 159.2 122.3 132.5 118.6
October 129.5 132.4 105.0 164.3 137.7 126.5 111.1
November 129.9 131.0 104.6 163.4 133.5 129.3 114.7
December 126.4 119.9 92.5 147.5 117.9 135.4 122.5
2001 January 125.4 118.6 86.9 138.3 129.1 134.8 121.8
February 118.9 116.1 91.9 139.5 114.0 123.1 106.7
March 119.9 113.5 87.8 138.8 106.7 128.9 113.4
April 115.7 111.9 100.2 122.4 117.2 121.1 108.3
May 116.6 112.2 105.6 124.7 111.8 122.9 119.8
June 117.4 110.4 94.7 122.5 113.7 127.0 116.3
July 113.4 111.4 88.6 136.0 101.9 116.5 102.1
August 114.5 106.9 80.0 121.6 109.3 124.9 118.1
September 121.3 118.0 104.7 130.8 127.3 126.2 119.9
October 112.3 110.2 106.1 118.2 112.9 115.6 109.1
November 118.7 113.5 63.0 114.6 156.6 126.1 124.5
December 113.0 108.8 102.1 105.3 128.3 118.9 109.3
2002 January 108.9 99.9 100.7 90.1 115.4 121.7 128.6
February 107.2 106.1 103.0 103.2 119.4 108.9 93.6
March 106.2 105.4 111.3 99.6 117.5 107.3 98.5
April 101.3 99.6 114.7 87.7 109.7 103.7 92.9
May 110.6 106.7 106.6 106.3 115.0 116.1 116.7
June 106.6 105.0 104.5 103.6 113.1 108.9 106.2
July 103.9 103.1 106.0 97.4 114.1 105.1 99.3
August 106.0 103.9 93.2 103.3 115.8 108.9 104.9
September 108.7 108.4 111.3 106.8 118.5 109.2 103.4
October 102.5 99.8 97.7 94.9 109.1 106.2 96.7
November 103.9 102.7 101.9 100.4 110.1 105.6 94.8
December 97.6 96.0 92.0 85.5 111.0 100.0 95.4
2003 January 98.2 94.7 100.9 88.1 95.9 103.2 110.5
February 101.3 97.8 90.6 96.0 102.7 106.2 95.5
March 102.1 101.3 99.9 104.2 98.8 103.1 105.5
April 100.8 98.2 100.5 89.0 110.2 104.6 97.9
May 102.7 101.7 89.1 98.7 116.1 104.1 104.1
June 100.9 97.4 94.2 92.1 105.0 106.0 96.1
July 103.5 106.7 109.1 108.9 109.0 98.9 104.5
August 103.8 105.2 105.8 105.5 109.9 101.8 90.8
September 102.9 104.7 107.7 101.7 112.9 100.3 107.2
October 99.2 99.4 98.5 99.8 98.7 98.9 98.6
November 102.9 104.9 105.1 107.1 106.7 100.0 102.7
December 100.0 100.0 100.0 100.0 100.0 100.0 100.0
51711022213 5171102222 51711022221517110222 5171102221 51711022211 51711022212
Producer Price Indices - Continued
(December 2003 = 100)
Table 7.5
 7-17
Business 
Special 
Access 
Switched Toll 
Service, 
except Private 
Lines
Outbound 
Business 
Special Access 
Switched Toll 
Service
Intrastate 
Business Special 
Access Switched 
Toll Service, 
Outbound
Interstate 
Business Special 
Access Switched 
Toll Service, 
Outbound
International 
Business Special 
Access Switched 
Toll Service, 
Outbound
Inbound 
Business Special 
Access Switched 
Toll Service
Intrastate 
Business Special 
Access Switched 
Toll Service, 
Inbound
NAICS Series ID 51711022213 5171102222 51711022221517110222 5171102221 51711022211 51711022212
Producer Price Indices - Continued
(December 2003 = 100)
Table 7.5
2004 January 100.3 99.2 101.1 98.7 98.1 101.8 101.1
February 100.1 100.5 91.0 111.5 88.8 99.5 96.0
March 99.5 96.6 90.6 104.1 84.0 103.7 102.5
April 99.3 97.7 98.1 104.4 83.9 101.6 95.7
May 99.0 97.5 93.1 104.3 86.2 101.2 99.0
June 98.4 96.7 93.5 103.0 84.4 100.8 103.3
July 95.7 95.0 91.8 97.3 87.7 96.7 97.8
August 94.7 93.4 94.1 92.7 86.7 96.7 99.1
September 95.2 93.3 96.0 94.1 83.1 97.9 106.0
October 94.1 93.8 93.8 93.2 87.8 94.6 98.3
November 92.5 91.7 87.9 91.8 84.7 93.6 92.3
December 93.6 91.9 90.1 91.8 84.0 96.0 96.6
2005 January 94.0 92.1 87.6 91.7 86.7 96.8 98.9
February 92.6 92.5 81.1 92.9 90.5 92.6 94.2
March 89.7 88.0 91.0 83.2 80.7 92.2 95.3
April 92.2 91.7 91.7 86.8 90.6 92.9 100.8
May 92.1 93.4 99.3 87.7 92.0 90.1 102.9
June 91.9 93.6 99.1 90.3 88.8 89.4 95.1
July 90.7 92.4 96.1 88.0 89.0 88.2 96.1
August 90.2 91.0 93.8 84.5 89.9 89.0 96.2
September 92.8 96.2 92.0 97.5 92.3 87.9 86.3
October 91.1 91.4 87.1 87.8 90.4 90.7 90.2
November 85.9 83.3 69.7 71.6 92.3 89.6 92.0
December 86.0 84.4 69.7 75.9 90.0 88.2 88.2
2006 January 85.3 84.1 74.1 76.5 84.7 87.1 87.7
February 84.2 83.4 68.0 73.3 90.9 85.4 83.2
March 84.5 84.7 73.6 78.3 85.0 84.2 82.4
April 84.5 85.5 68.1 84.1 82.0 83.0 75.6
May 83.4 80.8 69.3 70.9 82.6 87.2 90.3
June 83.6 83.4 64.7 76.9 87.1 83.8 75.8
July 83.1 82.7 68.1 74.1 86.3 83.8 80.8
August 81.9 81.2 66.0 72.6 83.5 82.9 82.1
September 83.6 83.5 67.2 72.5 93.2 83.6 82.6
October 86.3 82.6 68.9 72.0 90.2 91.4 85.6
November 80.3 79.3 69.3 70.3 82.6 81.9 82.8
December 81.4 80.6 65.0 71.7 87.1 82.5 80.9
2007 January 82.5 80.8 65.6 71.7 81.4 86.5 84.1
February 81.1 80.7 62.6 72.6 90.9 81.1 81.2
March 85.5 85.2 71.6 74.6 90.2 85.1 82.7
April* 84.2 83.4 69.0 73.4 89.6 85.2 82.7
May* 84.0 84.6 70.8 74.2 87.4 81.4 79.7
June* 83.4 82.4 68.7 72.4 89.0 85.2 83.6
 7-18
Interstate 
Business Special 
Access Switched 
Toll Service, 
Inbound
International 
Business Special 
Access Switched 
Toll Service, 
Inbound
Other Toll 
Service
Private Line 
Service
Intrastate 
Private Line 
Service
Other 
Telephone 
Services
NAICS Series ID
2000 January 182.8 173.3 121.6 99.2 97.7 98.8
February 193.4 172.2 122.2 99.2 97.7 99.0
March 185.0 173.8 122.9 99.2 97.7 98.6
April 180.6 169.3 123.3 99.2 97.7 98.7
May 170.6 170.5 122.9 99.2 97.7 98.1
June 171.6 170.4 123.6 99.2 97.7 98.2
July 164.3 163.1 123.3 99.2 97.7 98.8
August 168.2 178.1 123.0 99.2 97.7 98.7
September 169.8 182.7 123.1 99.2 97.7 99.4
October 158.7 178.0 121.7 99.2 97.6 98.1
November 163.9 165.9 122.3 99.2 97.6 99.8
December 175.3 169.9 122.3 99.2 97.6 99.2
2001 January 174.2 161.1 124.8 99.1 97.5 99.6
February 152.4 155.7 126.2 99.1 97.5 99.6
March 163.4 161.8 123.8 99.1 97.5 99.6
April 147.0 173.0 124.5 99.1 97.5 99.6
May 147.3 172.5 124.3 99.0 97.2 99.6
June 158.0 178.3 124.1 99.1 97.4 99.6
July 138.5 177.2 123.0 99.1 97.4 99.5
August 152.6 169.3 122.8 99.1 97.4 99.5
September 154.9 167.8 123.9 99.3 98.0 99.6
October 134.0 164.0 123.3 99.3 98.1 99.6
November 153.2 154.4 123.0 99.3 98.1 99.8
December 141.9 134.7 124.6 99.3 98.1 99.8
2002 January 141.9 150.3 125.5 99.3 98.1 99.8
February 123.2 145.4 123.2 99.4 98.3 99.8
March 117.7 147.7 121.6 99.4 98.3 99.8
April 111.0 144.7 121.7 99.5 98.6 99.7
May 132.6 142.4 122.5 99.6 98.8 99.7
June 118.9 142.7 122.8 99.6 98.9 99.7
July 112.1 142.0 122.0 99.7 99.1 99.7
August 119.3 144.8 122.1 99.7 99.1 99.7
September 120.5 144.0 122.1 99.7 99.1 99.7
October 115.8 140.6 117.5 100.0 100.1 100.0
November 115.0 142.5 118.2 100.0 100.1 99.9
December 101.3 141.5 115.1 100.0 100.1 100.0
2004 January 103.8 141.4 112.3 100.0 100.1 100.1
February 116.1 142.3 113.3 100.0 100.1 100.0
March 105.6 116.6 111.0 100.0 100.1 100.0
April 111.5 117.4 110.8 100.0 100.1 100.0
May 108.3 113.3 106.9 100.0 100.1 100.0
June 115.6 106.1 106.6 100.0 100.1 100.0
July 95.8 108.0 105.0 100.0 100.0 100.0
August 107.4 104.5 106.3 100.0 100.0 99.8
September 98.2 107.6 104.2 100.0 100.0 99.8
October 97.8 112.2 103.1 100.0 100.0 100.0
November 99.1 100.3 101.4 100.0 100.0 99.9
December 100.0 100.0 100.0 100.0 100.0 100.0
51711022223 51711029 517110351711022222
Producer Price Indices - Continued
51711031
(December 2003 = 100)
5171109
Table 7.5
 7-19
Interstate 
Business Special 
Access Switched 
Toll Service, 
Inbound
International 
Business Special 
Access Switched 
Toll Service, 
Inbound
Other Toll 
Service
Private Line 
Service
Intrastate 
Private Line 
Service
Other 
Telephone 
Services
NAICS Series ID 51711022223 51711029 517110351711022222
Producer Price Indices - Continued
51711031
(December 2003 = 100)
5171109
Table 7.5
2004 January 103.9 106.5 101.7 100.0 100.0 100.0
February 100.0 104.0 99.0 100.0 100.0 99.9
March 107.9 119.8 96.5 100.0 100.0 99.9
April 105.4 92.8 95.0 100.0 100.0 99.9
May 103.2 89.8 94.3 100.0 100.0 99.9
June 100.8 94.2 92.2 100.0 100.0 99.9
July 92.8 89.2 91.5 100.0 100.0 99.9
August 92.4 86.4 89.9 100.0 100.0 99.9
September 92.9 84.9 90.8 100.0 100.1 99.9
October 87.7 84.5 88.2 100.1 100.3 100.1
November 87.6 71.0 87.3 100.2 100.5 100.1
December 91.7 72.9 88.0 100.2 100.6 100.7
2005 January 92.8 70.4 85.5 100.3 100.9 100.6
February 84.7 44.9 86.3 100.3 101.0 100.7
March 83.2 72.1 83.5 100.4 101.2 100.6
April 83.0 67.7 83.5 100.5 101.3 100.6
May 75.6 67.8 81.2 100.5 101.3 100.6
June 76.4 68.6 82.5 100.5 101.3 100.6
July 73.4 64.3 81.5 100.5 101.3 100.6
August 75.2 66.1 80.3 100.5 101.3 100.6
September 75.9 73.7 80.9 100.5 101.3 101.0
October 81.4 67.1 78.9 100.5 101.3 101.2
November 78.0 76.2 78.5 100.5 101.3 101.8
December 76.1 65.2 78.3 100.5 101.3 101.2
2006 January 73.5 64.6 78.5 100.6 101.9 101.2
February 71.1 66.0 78.2 101.0 102.9 101.1
March 68.3 64.8 76.0 101.3 103.6 101.1
April 68.0 50.7 76.2 101.5 104.3 101.2
May 72.8 63.0 75.3 101.8 105.1 101.1
June 69.7 47.6 75.6 101.9 105.5 101.1
July 68.1 59.0 74.6 101.9 105.5 101.1
August 65.5 55.9 74.0 101.9 105.5 101.1
September 67.1 59.7 75.0 101.9 105.5 101.1
October 74.9 58.2 73.5 101.9 105.5 101.1
November 65.0 56.5 70.9 102.0 105.7 101.1
December 66.4 58.3 71.4 102.1 106.0 101.1
2007 January 69.9 58.8 71.7 102.2 106.3 101.1
February 64.5 60.9 71.5 102.2 106.6 101.5
March 68.8 58.4 70.8 102.2 106.9 103.5
April* 68.9 58.4 70.8 102.2 107.0 101.1
May* 65.4 58.7 70.6 102.2 107.0 101.1
June* 68.4 60.0 70.2 102.2 107.0 101.5
 7-20
Year 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005* 2006**
Representative Monthly Charge *** $12.58 $12.44 $12.32 $12.30 $12.36 $13.03 $13.05 $13.16 $13.19 $13.62 $13.71 $13.67 $13.75 $13.77 $13.64 $14.49 $14.38 $14.54 $14.57 $14.60 $15.03
Subscriber Line Charges 2.04 2.66 2.67 3.53 3.55 3.56 3.55 3.55 3.55 3.54 3.54 3.53 3.52 3.58 4.50 5.05 5.74 5.86 5.81 5.82 5.98
Additional Monthly Charge for 
Touch-Tone Service 
1.57 1.52 1.54 1.52 1.33 1.06 0.97 0.94 0.77 0.44 0.30 0.25 0.10 0.09 0.06 0.04       ****       ****       ****       **** ****
Taxes, 911, and Other Charges 1.51 1.56 1.58 1.70 2.00 2.12 2.15 2.29 2.31 2.41 2.40 2.42 2.39 2.48 2.57 3.03 3.94 4.12 4.41 4.15 4.26
Total Monthly Charge 17.70 18.18 18.11 19.05 19.24 19.77 19.72 19.95 19.81 20.01 19.95 19.88 19.76 19.93 20.78 22.62 24.07 24.52 24.52 24.57 25.27
Basic Connection Charge 45.63 44.04 42.94 43.06 43.06 42.00 41.50 41.38 41.28 40.91 41.11 41.04 41.24 41.26 41.45 40.02 39.83 39.22 39.26 39.62 39.44
Additional Connection Charge for 
Touch-Tone Service
1.34 1.31 1.55 1.76 1.77 1.27 1.22 1.23 0.85 0.23 0.23 0.17 0.12 0.12 0.12 0.12       ****       ****       **** **** ****
Taxes, 911, and Other Charges 2.28 2.20 2.11 2.44 2.32 2.30 2.29 2.30 2.33 2.44 2.36 2.46 2.38 2.57 2.53 2.81 1.33 3.32 3.44 3.17 3.48
Total Connection Charge 49.25 47.55 46.60 47.26 47.15 45.57 45.01 44.92 44.46 43.58 43.70 43.67 43.74 43.95 44.10 42.95 41.16 42.54 42.71 42.80 42.92
Additional Charge If Drop Line and 
Connection Block Needed
n.a. n.a. 6.04 6.07 6.89 6.89 6.50 7.29 6.74 5.90 5.74 5.65 5.64 5.86 5.84 5.84 5.85 12.13 12.45 12.65 13.91
Lowest-Cost Inside Wiring 
Maintenance Plan
0.58 0.85 0.89 1.07 1.07 1.20 1.25 1.31 1.45 1.52 1.78 1.68 2.22 2.66 3.03 3.62 3.62 3.64 4.08 4.42 4.86
 
Note: Details may not add to totals due to rounding.
n.a.:  not available
* Revised estimates.
** Subject to revision. 
*** Rate is based upon flat-rate service where available, and measured/message service with 100 five-minute, same-zone business-day calls elsewhere.  Beginning in 2001, all rates reflect flat-rate service.
**** Beginning in 2002, additional monthly charges for touch-tone service are included in the monthly recurring rate. 
Table 7.6
Average Residential Rates for Local Service in Urban Areas
(As of October 15)
7 - 21
Year 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005* 2006**
 
Monthly Representative Service Charge*** $31.06 $30.97 $32.29 $32.45 $32.70 $32.25 $32.48 $32.58 $32.76 $32.44 $32.41 $32.18 $31.88 $30.86 $30.65 $32.11 $32.21 $33.54
Subscriber Line Charges 3.55 3.57 3.57 3.56 3.57 3.57 3.57 3.54 3.54 3.54 3.52 4.39 4.91 5.63 5.76 5.71 5.71 5.89
Extra for Touch-Tone**** 2.43 2.35 1.84 1.71 1.67 1.21 0.97 0.82 0.38 0.32 0.25 0.19 0.18        ****        ****        ****          a4          a4
Taxes,  911 and Other Charges     4.21 4.32 4.42 4.57 4.63 4.61 4.79 4.87 4.99 4.97 5.03 5.04 5.45 5.47 5.55 5.67 5.83 5.87
Total Monthly Charge 41.25 41.21 42.12 42.29 42.57 41.64 41.80 41.81 41.67 41.27 41.21 41.80 42.43 41.95 41.96 43.49 43.75 45.31
Monthly Charge for Flat-Rate Service $33.04 $33.29 $34.12 $34.06 $34.85 $34.39 $34.45 $34.42 $34.68 $34.39 $33.73 $33.45 $32.02 $32.92 $33.17 $34.20 $34.19 $34.56
Subscriber Line Charges 3.65 3.69 3.70 3.70 3.70 3.70 3.69 3.61 3.61 3.56 3.50 4.35 4.77 5.77 6.03 6.01 6.03 6.14
Extra for Touch-Tone**** 2.12 2.11 1.87 1.84 1.76 1.12 1.00 0.89 0.53 0.49 0.47 0.43 0.39        ****        ****        ****          a4          a4
Taxes, 911 and Other Charges     4.90 4.98 5.22 5.34 5.50 5.36 5.58 5.55 5.58 5.63 5.49 5.68 5.98 8.16 7.91 7.53 7.77 7.67
Total Monthly Charge for Flat-Rate Service 43.71 44.07 44.91 44.94 45.81 44.57 44.71 44.47 44.39 44.07 43.20 43.90 43.15 46.85 47.12 47.74 47.99 48.37
Number of Sample Cities with Flat-Rate Service 59 56 54 54 54 53 53 53 53 54 54 54 54 52 52 56 56 56
Monthly Charge for Measured/Message Service $16.18 $16.17 $16.76 $16.55 $16.60 $16.74 $17.06 $17.26 $17.28 $17.16 $17.06 $16.92 $17.16 $17.56 $17.21 $18.49 $18.30 $17.30
200 Five-Minute Business-Day Same-Zone Calls 16.11 16.19 16.70 17.23 17.57 17.38 17.15 17.10 17.18 17.15 17.24 17.63 17.56 16.78 17.17 17.86 18.16 16.02
Subscriber Line Charges 3.54 3.55 3.55 3.54 3.55 3.55 3.54 3.51 3.51 3.53 3.52 4.39 4.90 5.56 5.65 5.86 5.80 5.79
Extra for Touch-Tone**** 2.48 2.39 1.87 1.73 1.68 1.22 0.98 0.83 0.39 0.33 0.25 0.20 0.19        ****        ****        ****          a4          a4
Taxes, 911 and Other Charges     4.41 4.53 4.56 4.77 4.86 4.83 5.01 5.13 5.22 5.19 5.28 5.32 5.76 4.71 4.78 5.07 5.14 4.99
Total Monthly Charge for Measured/Message Service 42.72 42.83 43.44 43.82 44.26 43.72 43.75 43.84 43.57 43.35 43.35 44.45 45.57 44.61 44.82 47.29 47.40 44.10
Number of Sample Cities with Measured/Message Service 83 83 84 84 84 87 87 86 85 85 85 85 85 86 85 86 85 78
Cost of a Five-Minute Business-Day Same-Zone Call $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.09 $0.10 $0.09 $0.09 $0.09 $0.10 $0.10 $0.09
Basic Connection Charge $71.05 $71.36 $72.75 $72.55 $71.41 $69.88 $67.87 $68.47 $68.67 $65.83 $67.87 $67.77 $67.04 $67.29 $67.23 $67.24 $67.35 $65.84
Additional Connection Charge for Touch-Tone Service**** 1.70 1.89 1.13 1.19 1.17 0.92 0.27 0.17 0.17 0.12 0.12 0.12 0.12        ****        ****        ****          a4          a4
Taxes 4.06 4.15 4.32 4.33 4.25 4.13 4.17 4.20 4.45 4.13 4.53 4.40 4.69 5.09 6.95 6.42 6.15 6.41
Total Connection Charge 76.81 77.40 78.20 78.07 76.83 74.93 72.31 72.85 73.29 70.09 72.55 72.29 71.86 72.39 74.18 74.18 74.18 72.26
Additional Charge If Drop Line and Connection Block Needed $5.92 $7.87 $6.90 $6.83 $6.64 $6.49 $7.28 $6.98 $6.54 $6.54 $6.65 $6.62 $6.62 $6.52 $13.43 $13.76 $13.96 $13.70
Lowest-Cost Inside Wiring Maintenance Plan $1.78 $1.91 $2.05 $2.03 $2.08 $2.26 $2.39 $2.63 $2.84 $3.04 $3.53 $3.92 $4.86 $4.73 $4.65 $4.94 $6.27 $5.12
Note:  Details may not add to totals due to rounding. 
* Revised figures.
** Subject to revision.
*** Rate is based upon flat-rate service where available, and measured/message service with 200 five-minute same-zone business-day calls elsewhere.
**** Starting in 2002, additional monthly charges for touch-tone service are included in the monthly charge. 
Table 7.7
Average Local Rates for Businesses with a Single Line in Urban Areas
(As of October 15)
7 - 22
Table 7.8
Average Revenue per Minute
 
AT&T All Carriers
All Interstate All Interstate
and International and International International All Interstate
Switched Services Switched Services Switched Services Switched Services
1984 $0.32  NA  NA  NA 
1985 0.31  NA  NA  NA 
1986 0.28  NA  NA  NA 
1987 0.25  NA  NA  NA 
1988 0.23  NA  NA  NA 
1989 0.22  NA  NA  NA 
1990 0.20  NA  NA  NA 
1991 0.20  NA  NA  NA 
1992 0.19 $0.19 $1.01 $0.15
1993 0.19 0.19 1.02 0.15
1994 0.18 0.18 0.93 0.14
1995  NA 0.17 0.91 0.12
1996  NA 0.16 0.76 0.12
1997  NA 0.15 0.69 0.11
1998  NA 0.14 0.58 0.11
1999  NA 0.14 0.54 0.11
2000  NA 0.12 0.52 0.09
2001  NA 0.10 0.35 0.08
2002  NA 0.09 0.28 0.07
2003  NA 0.08 0.20 0.07
2004  NA 0.08 0.14 0.06
2005 NA 0.07 0.13 0.06
NA -  Not available.
Note:  Data for some prior years have been revised.
Sources: AT&T information provided by AT&T.  Other estimates from Industry Analysis and 
               Technology Division, Wireline Competition Bureau, Telecommunications Industry
               Revenues  (June 2007).
7 - 23
a. Maximum Charge 37.01$  
b. Minimum Charge 17.10$  
c. Representative Monthly Charge 25.27$  
(Weighted Average)
d. Weighted Standard Deviation
(Std Dev) 4.78$    
e. Average + 2*(Std Dev)
( = c + 2d) 34.83$  
f. Percent to Average
( = [e/c] * 100) 138%
Table 7.9
Standard Deviation Analysis of Residential Rates in the Sample Cities
(As of October 15, 2006)
 7 - 24
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005* 2006**
Maximum Rate $32.68 $31.63 $30.62 $28.65 $28.78 $28.27 $28.75 $29.72 $34.75 $34.95 $35.56 $35.35 $35.16 $37.01
Minimum Rate $12.18 $12.18 $13.04 $13.04 $13.05 $13.05 $13.05 $13.21 $15.31 $15.93 $16.30 $16.03 $16.39 $17.10
Representative Monthly Rate 
(Average) $19.95 $19.81 $20.01 $19.95 $19.88 $19.76 $19.93 $20.78 $22.62 $24.07 $24.52 $24.52 $24.57 $25.27
Weighted Standard 
Deviation (Std Dev) $4.23 $4.28 $3.41 $3.28 $3.35 $3.24 $3.46 $3.57 $4.20 $4.32 $4.90 $4.93 $4.49 $4.78
Average + 2*(Std Dev) $28.41 $28.38 $26.84 $26.51 $26.58 $26.24 $26.85 $27.92 $31.01 $32.71 $34.32 $34.38 $33.55 $34.83
Percentage to Average 142% 143% 134% 133% 134% 133% 135% 134% 137% 136% 140% 140% 137% 138%
Average + 3*(Std Dev) $32.65 $32.66 $30.25 $29.78 $29.93 $29.47 $30.31 $31.49 $35.21 $37.03 $39.22 $39.31 $38.04 $39.61
Percentage to Average 164% 165% 151% 149% 151% 149% 152% 152% 156% 154% 160% 160% 155% 157%
*  Revised estimates.
** Subject to revision.
Table 7.10
Historical Standard Deviation Analysis of Residential Rates in the Sample Cities
(As of October 15, 2006)
 7 - 25
Charged to End Users  Charged to Long Distance Carriers 
(Subscriber Line Charges) (Presubscribed Interexchange Carrier Charges)
Residential Multiline
Business Non-Primary Multiline Centrex
   From To and Single-Line Residential Business
Business Centrex Business
05/26/84 05/31/85 $0.00 $4.99   
06/01/85 09/30/85 1.00 4.99
10/01/85 05/31/86 1.00 4.97
06/01/86 12/31/86 2.00 4.97
01/01/87 06/30/87 2.00 5.12
07/01/87 12/31/87 2.60 5.12
01/01/88 11/30/88 2.60 5.01
12/01/88 03/31/89 3.20 5.01
04/01/89 12/31/89 3.50 4.94
01/01/90 06/30/90 3.48 4.84
07/01/90 12/31/90 3.48 4.83
01/01/91 06/30/91 3.48 4.77
07/01/91 11/27/91 3.49 4.74
11/28/91 06/30/92 3.49 4.76
07/01/92 06/30/93 3.49 4.68
07/01/93 06/30/94 3.50 5.37
07/01/94 06/30/95 3.50 5.45
07/01/95 06/30/96 3.50 5.50
07/01/96 06/30/97 3.50 5.53
07/01/97 12/31/97 3.50 5.68
01/01/98 06/30/98 3.50 $4.98  6.92 $0.49 $1.50 $2.52 $0.35   
07/01/98 12/31/98 3.50 4.99 7.11 0.49 1.38 2.38 0.38
01/01/99 06/30/99 3.50 5.88 7.05 0.49 1.38 2.22 0.32
07/01/99 12/31/99 3.50 5.84 6.94 0.95 1.77 2.78 0.42
01/01/00 06/30/00 3.50 5.81 6.94 0.92 1.70 2.44 0.35
08/11/00 06/30/01 4.28 5.99 6.88 0.00 0.00 2.30 0.37
07/01/01 12/31/01 4.78 5.93 6.66 0.00 0.00 1.35 0.22
01/01/02 06/30/02 4.92 5.93 6.79 0.00 0.00 1.35 0.22
07/01/02 06/30/03 5.62 5.88 6.45 0.00 0.00 0.48 0.08
07/01/03 06/30/04 5.96 5.94 6.37 0.00 0.00 0.20 0.04
07/01/04 06/30/05 5.92 5.85 6.24 0.00 0.00 0.19 0.05
07/01/05 06/30/06 5.92 5.83 6.26 0.00 0.00 0.21 0.04
07/01/06 06/30/07 5.91 6.27 0.00 0.00 0.23 0.04
*


Source:  Access tariff filings.
Table 7.11
Interstate Per-Line Access Charges
(National Average per Month per Line) *
Residential
Non-Primary
Residential
Prior to 1/01/98 carriers did not charge separate subscriber line charge (SLC) rates for primary and non-primary residential lines.  
Therefore, the residential and single-line business average SLCs reported prior to 1/01/98 include all residential SLC  charges.  The 
average residential and single-line business SLC rate as of 1/01/98 excludes non-primary residential SLC charges.  Non-primary SLC 
charges are now reported separately, except for the LECs in the NECA pool, which continue to charge a single residential SLC.  
Under price-cap regulation, as of January 1, 2003, the caps on SLCs for primary residential and single-line business, non-primary 
residential, and multiline business and Centrex lines equal $6.50, $7.00, and $9.20, respectively. For NECA pool companies, the 
residential SLC cap is $6.50, while the multiline business and Centrex SLC cap equals $9.20.
On 1/01/98 price-cap carriers began to charge presubscribed interexchange carrier charges (PICCs).  The reported PICCs are 
averages per line including both price-cap and NECA pool lines.  While carriers do not charge different rates for Centrex and multiline 
business SLCs, they do charge different PICC rates for these lines.  Therefore, the average multiline business and Centrex PICC 
rates are reported separately.  However, multiline business line counts, used to compute average PICC rates, include Centrex lines 
for LECs in the NECA pool, which do not charge PICCs or distinguish in access filings between the two line types.  On 7/01/00 price-
cap carriers stopped charging residential and single line business PICCs.  Therefore, under price-cap regulation, as of July 1, 2000, 
the caps on PICCs for primary residential and  single-line business, non-primary residential, and multiline business lines equal $0.00, 
$0.00, and $4.31, respectively.  Centrex groups of 9 or fewer lines are capped at the multiline business PICC rate of $4.31 per group.  
Centrex groups with more than 9 lines are capped $0.48 per line (1/9th the multiline business rate).
Rates in Effect
This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-
cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. 
and and
Single-Line
5.81
 7 - 26
Table 7.12
Interstate Per-Minute Access Charges
(National Average in Cents per Minute) *
To
05/26/84 01/14/85 5.24  5.24  3.10  17.26 
01/15/85 05/31/85 5.43 5.43 3.10 17.66
06/01/85 09/30/85 4.71 4.71 3.10 16.17
10/01/85 05/31/86 4.33 4.33 3.10 15.38
06/01/86 12/31/86 3.04 4.33 3.10 14.00
01/01/87 06/30/87 1.55 4.33 3.10 12.41
07/01/87 12/31/87 0.69 4.33 3.10 11.49
01/01/88 11/30/88 0.00 4.14 3.10 10.56
12/01/88 02/14/89 0.00 3.39 3.00 9.60
02/15/89 03/31/89 0.00 3.25 3.00 9.46
04/01/89 12/31/89 1.00 1.83 3.00 9.11
01/01/90 06/30/90 1.00 1.53 2.50 7.78
07/01/90 12/31/90 1.00 1.23 2.50 7.48
01/01/91 06/30/91 1.00 1.14 2.40 7.18
07/01/91 06/30/92 0.88 1.06 2.40 6.97
07/01/92 06/30/93 0.79 0.95 2.40 6.76
07/01/93 06/30/94 0.88 1.16 2.20 6.66
07/01/94 06/30/95 0.84 1.08 2.10 0.28  6.89
07/01/95 06/30/96 0.74 0.89 1.96 0.21 6.16
07/01/96 06/30/97 0.72 0.89 1.95 0.17 6.04
07/01/97 12/31/97 0.64 0.84 1.63 0.14 5.18
01/01/98 06/30/98 0.68 0.23 1.29 0.21 4.04
07/01/98 12/31/98 0.91 0.20 0.99 0.30 3.82
01/01/99 06/30/99 0.82 0.16 0.98 0.32 3.71
07/01/99 12/31/99 0.37 0.10 0.86 0.28 2.82
01/01/00 06/30/00 0.32 0.10 0.86 0.31 2.85
08/11/00 # 06/30/01 0.23 0.07 0.52 0.26 1.91
07/01/01 12/31/01 0.15 0.07 0.48 0.24 1.71
01/01/02 06/30/02 0.15 0.07 0.47 0.24 1.69
07/01/02 06/30/03 0.02 0.01 0.48 0.22 1.46
07/01/03 06/30/04 0.00 0.00 0.48 0.22 1.44
07/01/04 06/30/05 0.00 0.00 0.50 0.25 1.53
07/01/05 06/30/06 0.00 0.00 0.52 0.25 1.59
07/01/06 06/30/07 0.01 0.00 0.54 0.25  1.63
  
*


#
Source:  Access tariff filings.
Although the charges took effect on July 1, 2000, some companies made adjustments to the tariffs which did not take 
effect until August 11, 2000.
From
This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs 
subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool.  The average 
rates reported here do not include the average revenue per minute from subscriber line charges (SLCs) or primary 
interexchange carrier charges (PICCs), which are reported in Table 7.9.
Non-traffic sensitive charges include charges assessed on a per-month per-unit basis.  Prior to 07/01/94 these charges 
were included in the average traffic-sensitive rates.
The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for 
dialing and call setup time, plus charges on the terminating end.  Originating charges per conversation minute equal the 
carrier common line charge per originating access minute plus the traffic-sensitive charge per switched minute, both 
multiplied by 1.07 to account for dialing and call setup time, plus the non-traffic-sensitive charge per switched minute.  
Terminating charges per conversation minute equal carrier common line charges per  terminating access minute plus 
both traffic-sensitive and non-traffic-sensitive charges per switched minute.
per Switched
Minute 
Conversation
Minute 
per Originating
Common Line
Rates in Effect Interstate Charges for Switched Access Service
Non-Traffic
Sensitive
Total
Charge per
Carrier Traffic
Sensitive
per Switched
Carrier
Common Line
per Terminating
Minute*
Minute
Minute*
Access Access
 7 - 27
Rates Effective From 07/01/06 To 06/30/07
(In Dollars per Month per Line)*
(Thousands)
Company Residential Non-Primary Multiline Residential Non-Primary Multiline Centrex Residential Non-Primary Multiline
and Residential Business and Residential Business and Residential Business
Single-Line and Single-Line  Single-Line and
Business Centrex Business  Business Centrex
ALLTEL (KY & NE) 6.05 6.42 7.85 0.00 0.00 1.72 0.82 513     19     225     
BellSouth 6.50 6.76 6.76 0.00 0.00 0.00 0.00 12,105     1,321     4,846     
CenturyTel  6.37 6.56 7.51 0.00 0.00 0.83 1.18 448     27     115     
Cincinnati Bell 5.24 5.24 5.24 0.00 0.00 0.00 0.00 609     49     258     
Citizens 6.13 6.44 9.20 0.00 0.00 4.31 0.75 1,570     105     422     
Hawaiian Telecom 6.50 7.00 8.15 0.00 0.00 0.00 0.00 374     53     205     
Iowa Telecom 6.14 6.14 8.79 0.00 0.00 0.00 0.00 186     9     42     
Qwest 6.01 6.23 6.50 0.00 0.00 0.00 0.00 8,327     1,041     3,030     
AT&T 4.96 4.83 4.89 0.00 0.00 0.00 0.00 24,610     3,952     14,236     
Sprint 5.74 5.67 7.15 0.00 0.00 0.00 0.00 5,032     520     1,563     
Valor 6.50 7.00 9.20 0.00 0.00 2.08 1.51 350     47     82     
Verizon 6.30 6.32 6.79 0.00 0.00 0.52 0.07 26,396     3,948     13,077     
Price Caps 5.84 5.81 6.11 0.00 0.00 0.24 0.04 80,520     11,092     38,101     
NECA 6.50 NA 9.20 0.00 NA 0.00 NA 9,604            NA 2,071     
Price Caps
and NECA 5.91 5.81 6.27 0.00 0.00 0.23 0.04 90,124     11,092     40,172     
*

 Data reflect only those company study areas subject to price-cap regulation.
NA:  Not Available
Source:   Access tariff filings.
Table 7.13
Interstate Per-Line Access Charges by Carrier
Access line counts measure lines that companies report as qualified to receive subscriber line charges (SLCs).  ISDN-BRI lines, which are charged non-primary SLC and PICC rates are 
included in the non-primary residential line counts.  ISDN-PRI lines, which are charged rates equal to five times the multiline business SLC and PICC rates, are multiplied by five and 
added to multiline business counts.
Subscriber Line Charges Presubscribed Interexchange Carrier Charges 2005 Average Monthly Access Lines 
This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in the National 
Exchange Carrier Association (NECA) pool.  Rates are composites of all regions and subsidiaries of each local exchange carrier.  No information is available for those carriers that are 
not in the NECA pool, but are subject to rate-of-return regulation.
 7 - 28
2005 Minutes of Use
Carrier  
 (Millions)
Common
Line per
Company Originating
Access CCL CCL Local
Minute** Originating Terminating Switching
ALLTEL (KY & NE) 0.00  0.00  0.55  0.31  1.75  596   938   2,083   
BellSouth 0.00 0.00 0.43 0.33 1.54 20,492   66,617   57,115   
CenturyTel # 0.16 0.00 0.51 0.31 1.86 409   1,488   1,897   
Cincinnati Bell 0.00 0.00 0.58 0.37 1.94 651   2,097   2,750   
Citizens 0.15 0.00 0.50 0.45 2.10 1,304   4,744   6,049   
Hawaiian Telecom 0.00 0.00 0.82 0.15 1.99 365   1,071   1,525   
Iowa Telecom 0.00 0.00 1.55 0.66 4.53 297   349   647   
Qwest 0.00 0.00 0.68 0.16 1.72 14,059   26,119   40,322   
AT&T 0.00 0.00 0.45 0.21 1.34 50,453   51,797   109,030   
Sprint 0.00 0.00 0.73 0.15 1.81 5,197   20,146   22,856   
Valor 0.00 0.00 0.78 0.35 2.33 278   902   1,180   
Verizon 0.02 0.00 0.49 0.22 1.46 32,581   88,440   121,861   
Price Caps 0.01 0.00 0.51 0.23 1.51 126,682   264,709   367,313   
NECA 0.00 0.00 1.13 0.72 3.78                *                * 19,340   
All Price Caps
and NECA 0.01 0.00 0.54 0.25 1.63                *                * 386,654   
NA:  Not Available. 
*
**
*** NECA no longer files information regarding originating and terminating Carrier Common Line (CCL) charges.


# Data reflect only those company study areas subject to price-cap regulation.
Source:  Access tariff filings.  
Switched
Non-Traffic
Sensitive
Table 7.14
Interstate Per-Minute Access Charges by Carrier
Rates Effective From 7/1/06 To 06/30/07
(In Cents per Minute) *
per
Carrier
Common
Line per
Terminating
Switched
Traffic
Sensitive
per
Total
Charge per
ConversationAccess Access
Minute**
Access
Minute
Effective 07/01/03, the carrier common line (CCL) rates for NECA carriers were eliminated. 
Minute 
Non-traffic sensitive charges include charges assessed on a per-month per-unit basis.  Prior to 07/01/94 these charges were included in the average traffic-
sensitive rates.
The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call setup time, plus charges on 
the terminating end.  Originating charges per conversation  minute equal the carrier common line charge per originating access minute plus the traffic-sensitive 
charge  per switched minute, both multiplied by 1.07 to account for dialing and call setup time, plus the non-traffic-sensitive charge per switched minute.  
Terminating charges per conversation minute equal carrier common line charges per  terminating access minute plus both traffic-sensitive and non-traffic-
sensitive charges per switched minute.
This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all 
LECs in the National Exchange Carrier Association (NECA) pool.  Rates are composites of all regions and subsidiaries of each local exchange carrier.  No 
information is available for those carriers that are not in the NECA pool, but are subject to rate-of-return regulation.  The average rates reported here do not 
include the average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), which are reported in Table 7.11.
Minute 
   7 - 29