NEWS News media Information 202 / 418-0500 TTY 202 / 418-2555Fax-On-Demand   202 / 418-2830Internet: http://www.fcc.govftp.fcc.gov
Federal Communications Commission
445 12th Street, S.W.
Washington, D. C.  20554
This is an unofficial announcement of Commission action.  Release of the full text of a Commission order
constitutes official action.  See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
FOR IMMEDIATE RELEASE: NEWS MEDIA CONTACT:
December 28, 2007 Mark Wigfield 202-418-0253
Email: mark.wigfield@fcc.gov
FEDERAL-STATE UNIVERSAL SERVICE JOINT BOARD STAFF RELEASES 
MONITORING REPORT
Comprehensive Report Tracks Trends Related to Universal Service  
Washington, D.C.  The staff of the Federal-State Joint Board on Universal Service has 
released its most recent Monitoring Report on Universal Service.  This report reflects 
information on the telephone industry filed with the Federal Communications Commission 
(FCC) through June 2007.  This report, with a few exceptions, reflects data filed with the Federal 
Communications Commission (FCC) by the telephone industry for the year 2006 and prior years.
The report released today addresses the various universal service support mechanisms, 
which amounted to about $6.6 billion in 2006.  In 2006, disbursements among the four categories 
of universal service mechanisms were: 61.8% for high-cost support; 25.2% for schools and 
libraries support; 12.4% for low-income support; and 0.6% for rural health care support.  The 
report presents data in eleven categories:  
1) Industry Revenues and Contributions  Total industry revenues for 
telecommunications services provided to end users in 2006 were about $236 billion, 
compared to about $235 billion in 2005. Revenues for fixed local service providers 
decreased to about $81 billion, from about $82 billion, while wireless service providers 
revenues increased to about $110 billion, from about $101 billion, and toll service 
providers revenues decreased to about $45 billion, from about $52 billion.
2) Low-Income Support  Total low-income support increased to about $808 million in 
2006, from about $803 million in 2005.
3) High-Cost Support  In 2006, total high-cost support amounted to about $4.1 billion, an 
increase from about $3.8 billion in 2005. This increase is due to support to competitive 
carriers (CETCs) increasing from $0.6 billion in 2005 to $1.0 billion in 2006.
4) Schools and Libraries Support  Schools and libraries support disbursements in 2006 
decreased to $1.7 billion from $1.9 billion in 2005.
5) Rural Health Care Support  The demand for rural health care support  disbursements 
increased to $41 million in 2006 from $26 million in 2005.
6) Subscribership and Penetration  According to the Current Population Survey, the 
percentage of households subscribing to telephone service increased to an average of 
93.6% in 2006, from 93.1% in 2005.
7) Rates and Price Indices  The price index of overall telephone rates increased 1.7% in 
2006, compared to the general rate of inflation of 2.5% for all goods and services.
8) Network Usage  Interstate toll usage for customers of incumbent local exchange 
carriers declined to 379 billion minutes in 2006, from 401 billion minutes in 2005.  
9) Quality of Service  The data show noticeable differences in the quality of service 
among carriers.  For example, complaints per million residential access lines in 2006
ranged from 0 to 961 for different carriers.
10) Infrastructure  The total number of access lines in service for the mandatory price-cap 
carriers (the regional Bell operating companies) declined to about 118 million in 2006,
from about 127 million in 2005.  On the other hand, measures of their fiber transmission
generally grew in 2006.
11) Revenues, Expenses and Investment  For the larger local exchange carriers in 2006, 
56% percent of net income was interstate, 35% of revenues was interstate, and 32% of 
expenses was interstate.
A monitoring program was established in the mid-1980's, at the recommendation of the 
Separations Joint Board, to track trends related to universal service and related matters.  Since 
then, Joint Board staffs have prepared Monitoring Reports at least once a year -- a compendium 
of hundreds of pages of statistical data on subscribership and penetration, loop costs, separations 
factors, universal service fund payments, etc.  The report is unique in that it is the only document 
that includes information on every incumbent local telephone company in the nation.  In 1998  
the publication of this report was moved from the Separations Joint Board staff to the Universal 
Service Joint Board staff.  This is the ninth Monitoring Report from the Universal Service Joint 
Board staff.
The full text of this document is available for public inspection and copying during 
regular business hours at the FCC Reference Information Center, Portals II, 445 12th Street, SW, 
Room CY-A257, Washington, DC 20554.  This document may also be purchased from the 
Commission's duplicating contractor, Best Copy and Printing, Inc., Portals II, 445 12th Street, 
SW, Room CY-B402, Washington, DC 20554, telephone 202-488-5300 or 1-800-378-3160, 
facsimile 202-488-5563, TTY 202-488-5562, or via e-mail at < fcc@bcpiweb.com>. The report 
may also be downloaded from the Wireline Competition Bureau Statistical Reports Internet site, 
which can be reached at <http://www.fcc.gov/wcb/stats>.  It is available in both page image 
(.pdf) format and in a compressed (.zip) format, which, when unzipped yields text and 
spreadsheet files.
-FCC-
Wireline Competition Bureau contact:  Alexander Belinfante at (202) 418-0944; TTY (202) 418-
0484.
CC Docket No. 98-202