Trends in Telephone Service 
 
 
 
 
 
 
 
 
 
 
 
 
Industry Analysis and Technology Division 
Wireline Competition Bureau 
 
 
February 2007 
 
 
 
This report is available for reference in the FCCs Information Center at 445 12th Street, S.W., Courtyard 
Level.  Copies may be purchased by calling Best Copy and Printing, Inc., Portals II, 445 12th Street S.W., 
Room CY-B402, Washington DC 20554 at 800-378-3160, facsimile 202-488-5563, or via e-mail 
fcc@bcpiweb.com.  The report can also be downloaded from the Wireline Competition Bureau Statistical 
Reports Internet site at: www.fcc.gov/wcb/iatd/trends.html.  
Table of Contents
1-1
1-1
Table 1.1 Interstate Per-Line Access Charges 1-3
Table 1.2 Interstate Per-Minute Access Charges 1-4
Table 1.3 Interstate Per-Line Access Charges by Carrier... 1-5
Table 1.4 Interstate Per-Minute Access Charges by Carrier  1-6
2-1
Table 2.1 High-Speed Lines 2-3
Chart 2.1 Total High-Speed Lines 2-3
Chart 2.2 High-Speed Lines by Technology 2-3
Table 2.2 Advance Services Lines 2-4
Chart 2.3 Advance Services Lines 2-4
Chart 2.4 Advance Services Lines by Technology 2-4
Table 2.3 Residential High-Speed Lines 2-5
Chart 2.5 Residential High-Speed Lines 2-5
Chart 2.6 Residential High-Speed Lines by Technology 2-5
Table 2.4 Residential Advanced Services Lines 2-6
Chart 2.7 Residential Advanced Services Lines 2-6
Chart 2.8 Residential Advanced Services Lines by Technology 2-6
Table 2.5 High-Speed Lines by Information Transfer Rates 2-7
Chart 2.9 High-Speed Lines by Information Transfer Rates in the Faster Direction 2-7
Table 2.6 High-Speed Lines by Technology 2-9
Table 2.7 High-Speed Lines by State 2-10
Table 2.8 Percentage of Residential End-User Premises with Access to High-Speed Services 2-11
Chart 2.10 Percentage of  U.S. Households with Computers, Internet Access, and
High-Speed Access.. 2-12
Table 2.9 Percent of U.S. Households with Internet: Rural vs Urban 2-13
Chart 2.11 Percent of U.S. Households with Internet Connections by Technology:
Rural vs Urban. 2-13
Consumer Expenditures 3-1
Table 3.1 Household Expenditures for Telephone Service 3-3
Table 3.2 Average Monthly Household Telecommunications Expenditures by
Type of Provider 3-4
Table 3.3 Personal Consumption Expenditures. 3-5
Chart 3.1 Personal Consumption Expenditures for Telephone Service 3-6
Chart 3.2 Monthly Personal Consumption Expenditures for Telephone Service 3-6
Introduction.
Access Charges
Advanced Telecommunications
i
Earnings . 4-1
Table 4.1 Interstate Rate-of-Return Summary: Years 1998 through 2005  4-3
Employment and Labor Productivity . 5-1
Table 5.1 Average Number of Employees in the Telecommunications Industry      5-3
Chart 5.1 Average Number of Employees in the Telecommunications Industry ... 5-3
Table 5.2 Labor Productivity Index for the Wired and Wireless
Telecommunications Industry  5-4
Chart 5.2 Wired and Wireless Telecommunications Carriers
 (NAICS 5171 and 5172) Labor Productivity Index . 5-4
Table 5.3 Number of Telecommunications Providers by Size of Business  5-5
International Telephone Service  6-1
Table 6.1 International Service from the United States  6-3
Chart 6.1 Billed Revenues per Minute and per Call   6-3
Table 6.2 International Telephone Service Settlements  6-4
Table 6.3 International Message Telephone Service for 2004   6-5
Chart 6.2 U.S. Billed Minutes by Country for 2004   6-5
Table 6.4 U.S. Billed Revenues of Facilities-Based and Facilities-Resale Carriers in 2004 6-6
Table 6.5 Top Providers of Pure Resale International MTS in 2004   6-7
Lines   7-1
Table 7.1 U.S. Wireline Telephone Lines   7-3
Table 7.2 Telephone Loops of Incumbent Local Exchange Carriers by State  7-4
Table 7.3 Telephone Loops of Incumbent Local Exchange Carriers by Holding Company   7-6
Chart 7.1 Five Largest Holding Companies' Share of Loops   7-6
Table 7.4 Additional Residential Lines for Households with Telephone Service  7-8
Table 7.5 Number of Payphones Owned by LECs and Independent Operators   7-9
Table 7.6 Number of Payphones Over Time  . 7-11
Local Telephone Competition   8-1
Table 8.1 End-User Switched Access Lines Reported  .... 8-5
Chart 8.1 End-User Switched Access Lines Reported  .... 8-5
Table 8.2 End-User Switched Access Lines by Customer Type  ..... 8-6
Chart 8.2 Percent of Lines that Serve Residential Customers  8-6
ii
Table 8.3 Reporting Competitive Local Exchange Carriers   8-7
Chart 8.3 Competitive Local Exchange Carriers' End-Users Lines   8-7
Table 8.4 Reporting Incumbent Local Exchange Carriers  8-8
Chart 8.4 ILEC Lines and the Percent Provided to Other Carriers   8-8
Table 8.5 End-User Switched Access Lines Served By Reporting Local Exchange Carriers  8-9
Table 8.6 Competitive Local Exchange Carriers Share of End-User Switched Access Lines  8-10
Table 8.7 Nationwide Local Service Revenues and New Competitors' Share   8-11
Chart 8.5 ILEC and New Local Competitor Share of Local Service Revenue .. 8-11
Table 8.8 Telephone Number Porting Activity Since Wireless Pooling Started  8-13
Table 8.9 Telephone Numbers Remaining in the Porting Database in Each Quarter   8-14
Table 8.10 Numbers in the Porting Database by Quarter Most Recently Ported  8-15
Long Distance Telephone Industry 9-1
Table 9.1 Total Toll Service Revenues by Provider   9-5
Table 9.2 Intrastate, Interstate, and International Toll Revenues   9-7
Chart 9.1 Toll Revenues by Market Segment   9-7
Table 9.3 End-User Toll Revenues   9-8
Table 9.4 Number of Toll Service Providers   9-9
Table 9.5 Residential Household Market Shares   9-10
Chart 9.2 Residential Household Market Shares   9-10
Table 9.6 Residential Household Market Shares by Region: 2005   9-12
Chart 9.3 Residential Household Market Shares by Region: 2005   9-12
Table 9.7 Regional Bell Operating Companies'Applications to 
Provide In-Region InterLATA Service   9-14
Minutes   10-1
Table 10.1 Interstate Switched Access Minutes    10-3
Chart 10.1 Interstate Switched Access Minutes   10-3
Table 10.2 Telephone Calls and Billed Access Minutes of Large Incumbent LECs
Reporting to the Commission   10-4
Mobile Wireless Service . 11-1
Table 11.1 Measures of Mobile Wireless Telephone Subscribers11-3
Chart 11.1 Mobile Wireless Telephone Subscribers   11-4
Table 11.2 Mobile Wireless Telephone Subscribers   11-5
Table 11.3 Mobile Wireless Telephone Service: Industry Survey Results   11-6
Table 11.4 Distribution of Residential Wireless Calls and Minutes   11-7
Table 11.5 Duration of Residential Wireless Calls: 2005   11-8
Table 11.6 Distribution of Residential Intrastate Wireless Minutes by Day and Time: 2005  11-9
Table 11.7 Distribution of Residential Interstate Wireless Minutes by Day and Time: 2005  11-10
iii
Price Indices for Telephone Services 12-1
Table 12.1 Long-Term Changes for Various Price Indices (Annual Rates of Change)     12-3
Chart 12.1 CPI All Items and CPI Telephone Services   12-3
Table 12.2 Annual Changes in Major Price Indices   12-4
Chart 12.2 Percent Change in CPI All Items and CPI Telephone Services   12-4
Table 12.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services  12-5
Chart 12.3 CPI Telephone Service Price Indices   12-5
Price Levels  13-1
Table 13.1 Average Residential Rates for Local Service in Urban Areas: 1986 - 2005   13-3
Table 13.2 Average Local Rates for Business with a Single Line In Urban Areas: 1989 - 2005  13-4
Table 13.3 Average Rate for a Residential Access Line   13-5
Table 13.4 Average Revenue Per Minute   13-6
Chart 13.1 Revenue Per Minute for Interstate Calls  .. 13-7
Residential Wireline Usage   14-1
Table 14.1 Distribution of Residential Wireline Toll Calls and Minutes  .. 14-3
Table 14.2 Average Residential Wireline Monthly Toll Minutes  14-3
Table 14.3 Distribution of Residential Wireline Long Distance Call Durations: 2005 . 14-4
Table 14.4 Duration and Distance of Interstate Toll Calls   14-5
Table 14.5 Duration and Distance of Intrastate Toll Calls  . 14-5
Table 14.6 Distribution of Residential Wireline Long Distance Minutes By Day and Time14-6
Revenues   15-1
Table 15.1 Telecommunications Industry Revenues  15-3
Chart 15.1 End-User Telecommunications Revenues  15-3
Table 15.2 Telecommunications Revenues Reported by Type of Service  ...15-4
Table 15.3 Number of Interstate Telecommunications Providers By Principal Type of Business   15-5
Table 15.4 Gross Revenues Reported by Type of Carrier  15-6
Table 15.5 Total Telecommunications Revenues by State   15-7
Table 15.6 Telecommunications Revenues by State: 2004  15-8
Table 15.7 Telecommunications Revenues by Type of Service: 2004  ... 15-9
Subscribership  . 16-1
Table 16.1 Household Telephone Subscribership in the United States  16-3
Table 16.2 Historical Telephone Penetration Estimates   16-4
Table 16.3 Telephone Penetration by State: Households with Telephone Service ...16-5
Table 16.4 Telephone Penetration by State: Houseing Units with Telephone Service ... 16-6
Table 16.5 Telephone Penetration by Selected Characteristics  16-7
iv
Technology Development   17-1
Table 17.1 Central Office Switches and Access Lines by Technology   17-5
Table 17.2 Switches by Metropolitan Statistical Area (MSA) and Non-MSA and Switches by
Line Counts  . 17-6
Table 17.3 Local Transmission Technology (Bell Operating Companies) and
Working Telecommunications Channels   17-7
Table 17.4 Central Offices Converted to Equal Access (As of May 1, 2006) . 17-8
Table 17.5 Broadband Capabilities of NECA's 2006 Rural Incumbent LEC Survey Respondents  17-9
Chart 17.1 Telecommunications Patents  ....17-10
Table 17.6 Capital Expenditures for Structures and Equipment  17-11
Chart 17.2 Capital Expenditures for Structures and Equipment  by Carriers  ..17-12
Telephone Numbers 18-1
Table 18.1 Area Codes by State  18-3
Table 18.2 Area Code Assignments  18-4
Table 18.3 Telephone Numbers Assigned for Toll-Free Service (800,888,877,866)   18-6
Chart 18.1 Working Toll-Free Numbers  .. 18-6
Table 18.4 Telephone Numbers Assigned for Toll-Free Service 800 Toll-Free Service  ... 18-7
Table 18.5 Telephone Numbers Assigned for 888 Toll-Free Service   18-8
Table 18.6 Telephone Numbers Assigned for 877 Toll-Free Service   18-9
Table 18.7 Telephone Numbers Assigned for 866 Toll-Free Service  18-10
Table 18.8 Number of Digits Necessary to Dial Local and Toll Calls in the U.S.  18-11
Universal Service  .. 19-1
Table 19.1 Universal Service Support Mechanisms: 2005   19-5
Chart 19.1 Distribution of Universal Service Payments: 2005  19-5
Table 19.2 Universal Service Support Received by Service Provider: 2005 19-6
Chart 19.2 Universal Service Support Received by Service Provider: 2005   19-6
Table 19.3 High-Cost Support Fund Payment History  19-7
Chart 19.3 Total High-Cost Support Fund Payments  ..19-7
Table 19.4 High-Cost Support Fund Payments by State: 2005 19-8
Table 19.5 High-Cost Support Received by Incumbent LECs and CETCs ... 19-9
Chart 19.4 Percent of High-Cost Support Received by CETCs   19-9
Table 19.6 High-Cost Support by Type of Carriers: 2005   19-10
Table 19.7 Lifeline Monthly Support by State or Jurisdiction  19-11
Table 19.8 Lifeline Subscribers and Link-Up Beneficiaries  . 19-12
Table 19.9 Lifeline Subscribers and Link-Up Beneficiaries by State: 2005  19-13
Table 19.10 Low-Income Support Payments  19-14
Chart 19.5 Lifeline and Link-Up Support Payments   19-14
Table 19.11 Low-Income Support Payments by State: 2005  .19-15
Table 19.12 Low-Income Support Received by Incumbent LECs and CETCs  ....19-16
Chart 19.6 Percent of Low-Income Support Received by CETCs .19-16
v
Table 19.13 Schools and Libraries Funding by Type of Service   19-17
Chart 19.7 Total Schools and Ldibraries Funds Committed and Disbursed  . 19-17
Table 19.14 Schools and Libraries Funding by State and Type of Service  . 19-18
Table 19.15 Rural Health Care Fund Disbursements by Service Speed  19-19
Chart 19.8 Rural Health Care Fund Disbursements by Service Speed  19-19
Table 19.16 Rural Health Care Fund Disbursements by Service Speed  and by State   19-20
Table 19.17 Universal Service Fund Contribution Factors  . 19-21
Table 19.18 Share of Universal Service Contributions by Principal Type of Contributor
Using Traditional Carrier Categories   19-22
Chart 19.9 Share of Universal Service Contributions by Principal Type of Contributor   19-22
Appendix A - List of Publications by the Industry Analysis and Technology Division  20-A
Appendix B - Sources of Telecommunications Information   21-A
Appendix C - Contacting the Report Authors   22-A
vi
 1 - 1
Introduction 
 
 Trends in Telephone Service is published by the Industry Analysis and Technology 
Division of the Federal Communication Commissions Wireline Competition Bureau.
1
  This 
report is designed to provide answers to some of the most frequently asked questions about the 
telephone industry -- questions asked by consumers, members of Congress, other government 
agencies, telecommunications carriers, and members of the business and academic communities. 
To this end, the report contains summary information about the size, growth, and development of 
the telephone industry, including data on market shares, minutes of calling, number of lines, and 
telephone subscribership.  The report also provides information about access charges, advanced 
telecommunications, consumer expenditures for service, infrastructure, international telephone 
traffic, local telephone competition, telephone rates and price changes, toll service providers, and 
universal service support. 
 
 Trends in Telephone Service summarizes a variety of information contained in other 
reports that are published periodically by the Industry Analysis and Technology Division.
2
  In 
most cases, these other reports provide more detailed information than that provided here.  These 
reports can be accessed from the Wireline Competition Bureau Statistical Reports Internet site, at 
www.fcc.gov/wcb/stats.  In addition, to facilitate further information gathering by consumers and 
others, we have listed additional sources of information in Appendix B, and we have provided 
information on contacting the authors of this report in Appendix C. 
 
1  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 true economic 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 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 
                                                 
1
 Trends in Telephone Service was last published in June 2005. 
 
2
 See Appendix A for a list of these publications. 
 1 - 2
long distance industry. 
 
 In mid-1984 the FCC, in cooperation with a Federal-State Joint Board composed of both 
federal and state regulators, introduced sweeping changes in the way that local telephone 
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 long distance carriers for the origination and termination of interstate traffic 
on their local networks.  In addition, 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 -- as SLCs were introduced, the pricing changes 
reduced the implicit subsidy from long distance use 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 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.  Prior to the 1997 reform, local carriers 
continued to recover part of their fixed costs in per-minute charges (from long distance carriers) 
and part from end users (in SLCs.)  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. 
 
 As part of access charge reform in May of 2000, the FCC started to eliminate PICCs and 
consolidate them with SLCs.  All price-cap local exchange carriers implemented lower access 
charges paid by long distance carriers.  In October of 2001, the FCC modified its interstate 
access charge rules for rate-of-return incumbent local exchange carriers.  These changes for the 
rate-of-return carriers were designed to align the interstate access rate structure more closely 
with the manner in which costs are incurred by driving per-minute access charges towards lower, 
more cost-based levels. 
 
 Average monthly SLCs and PICCs are shown in Table 1.1, and average per-minute rates 
charged to long distance carriers are shown in Table 1.2.  Both tables report historical averages 
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.  Current per-line charges 
and per-minute charges are reported for each of the carriers in Tables 1.3 and 1.4, respectively. 
  
Table 1.1
Residential and Non-Primary Multiline Non-Primary Multiline
   From     To Single-Line Residential Business Residential Business
Business and Centrex
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
4.28 5.99 6.88 0.00 0.00 2.30 0.37
07/01/01 12/31/01 4.78 6.66 0.00 0.00 1.35 0.22
01/01/02 06/30/02 4.92 6.79 0.00 0.00 1.35 0.22
07/01/02 06/30/03 5.62 6.45 0.00 0.00 0.48 0.08
07/01/03 06/30/04 5.96 6.37 0.00 0.00 0.20 0.04
07/01/04 06/30/05 5.92 6.24 0.00 0.00 0.19 0.05
07/01/05 06/30/06 5.92 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.
4
 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.  
2
 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 SLCs.  Non-primary SLCs 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 July 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.
3
 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 did not charge different rates for Centrex and multiline business SLCs, they did 
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 multiline business lines equal $4.31.  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 at $0.48 per 
line (1/9th the multiline business rate).
Interstate Per-Line Access Charges
(National Average per Month per Line) 
1
Rates in Effect
1
 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. 
Residential and
Single-Line
Business
Centrex
Charged to Long Distance Carriers 
3
(Presubscribed Interexchange Carrier Charges)(Subscriber Line Charges)
5.81
5.93
5.93
Charged to End Users 
2
5.88
5.94
5.85
5.83
 1 - 3
Table 1.2
Interstate Per-Minute Access Charges
(National Average in Cents per Minute) 
1
Total
Charge per
Conversation
Minute 
3
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 06/31/00
4
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.
4
 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.  
1
 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), both of which are 
reported in Table 1.1.  Effective 07/01/03, the carrier common line (CCL) rates for NECA carriers were eliminated.
2
 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.
3
 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.
 Minute 
1
Carrier
Common Line
per Terminating
Access
 Minute 
1
Carrier
Common Line
per Originating
Access Minute 
2
Traffic
Sensitive
per Switched
Minute
Non-Traffic
Rates in Effect
From        To
Sensitive
per Switched
Interstate Charges for Switched Access Service
 1 - 4
Table 1.3
Interstate Per-Line Access Charges by Carrier
(In Dollars per Month per Line) 
1
Rates Effective from 07/01/06 to 06/30/07
Subscriber Line Charges Presubscribed Interexchange Carrier Charges 2005 Average Monthly Access Lines 
2
(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 
3
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
SBC 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
NA - Not Available.
3
 Data reflect only those company study areas subject to price-cap regulation.
Source:  Access tariff filings.
2
 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.
1
 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.
  1 - 5
Table 1.4
Interstate Per-Minute Access Charges by Carrier
(In Cents per Minute) 
1
Rates Effective from 7/1/06-06/30/07 Year 2005 Minutes of Use
Carrier   (Millions)
Common
Line per
Company Originating
Access Local
Minute 
2
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 
5
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
SBC 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
* NECA no longer files information regarding originating and terminating Carrier Common Line (CCL) charges.
5
 Data reflect only those company study areas subject to price-cap regulation.
Source:  Access tariff filings.  
Carrier Common
Line
2
 Effective 07/01/03, the carrier common line (CCL) rates for NECA carriers were eliminated.
3
 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.
Access 
Minute 
3
Access
Minute 
2
1
 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), both of which are reported in Table 1.1.
Access
Minute
Conversation
Minute 
4
Non-Traffic
Sensitive
per
Total
Charge per
4
 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.
Switched
Traffic
Sensitive 
per
Carrier
Common
Line per
Terminating
Switched
   1 - 6
 
  2 - 1
2  Advanced Telecommunications 
 
Congress directed the Commission and the states, in section 706 of the Telecommunications 
Act of 1996, to encourage deployment of advanced telecommunications capability in the United 
States on a reasonable and timely basis.  To assist in its evaluation of such deployment, the 
Commission instituted a formal data collection program to gather standardized information about 
subscribership to high-speed services, including advanced services, from wireline telephone 
companies, cable system operators, terrestrial wireless service providers, satellite service 
providers, and any other facilities-based providers of advanced telecommunications capability.  
For reporting purposes, high-speed service lines are wired or wireless connections to end users 
(i.e., to Internet-access service subscribers) that are faster than 200 kilobits per second (kbps) in 
at least one direction.  Advanced services lines are faster than 200 kbps in both directions (and 
are therefore a subset of high-speed lines).   
    
All facilities-based providers of high-speed lines were required to report to the Commission 
basic information about their service offerings and types of customers as of June 30, 2005.
 
 
Previously collected data (i.e., as of December 31, 1999 and each succeeding June 30 and 
December 31 through the end of 2004) were reported by facilities-based providers with at least 
250 high-speed lines in service in a particular state, and by a few smaller entities that filed on a 
voluntary basis.
1
  Small providers, many of whom serve rural areas with relatively small 
populations, were therefore underrepresented in the earlier data.  More than twice as many 
holding companies and unaffiliated entities reported information about high-speed lines in June 
2005 as had reported six months earlier.   
 
Starting with the June 30, 2005 data, all facilities-based providers report added detail about 
line speeds.  And two groups of providers  incumbent local exchange carriers (LECs) and cable 
system operators  report the extent to which their high-speed lines are available to the 
households to whom they offer local telephone service or cable TV service (i.e., available 
whether or not the household actually subscribes to a high-speed Internet-access service).   
 
Table 2.1 shows high-speed lines for the following types of technology:  asymmetric digital 
subscriber line (ADSL), symmetric digital subscriber line (SDSL), traditional wireline, cable 
modem, fiber, satellite, fixed wireless, mobile wireless, and power line and other.  Chart 2.1 
shows the growth of high-speed lines from June 2000 through June 2006, and Chart 2.2 shows 
the proportion of high-speed lines by technology as of June 30, 2006.   
 
Table 2.2 shows advanced services lines by the above technologies.  Chart 2.3 shows the 
growth of advanced services lines from June 2000 through June 2006, and Chart 2.4 shows the 
proportion of advanced services lines by technology as of June 30, 2006.   
                                                 
1
  High-speed lines reported in earlier voluntary submissions represented less than 0.05% of total reported high-
speed lines.  As of June 30, 2005, filers with fewer than 250 lines in a state (including entities that previously filed 
on a voluntary basis) represented about 0.2% of total reported high-speed lines. 
    
 
  2 - 2
 
Comparable data for residential lines, only, are shown in Table 2.3 and Table 2.4, and in 
Charts 2.5 through 2.8.    
 
Table 2.5 and Chart 2.9 provide additional detail about speeds (i.e., information transfer 
rates) of reported high-speed lines, by technology.   
 
Table 2.6 shows high-speed lines, by state and by technology, as of June 30, 2006.  Table 
2.7 shows total reported high-speed lines by state over time.   
 
Table 2.8 provides nationwide and state-specific estimates of the extent to which digital 
subscriber line (DSL) high-speed lines provided by incumbent LECs, and cable modem high-
speed service provided by cable system operators, are available to the households to whom these 
companies offer local telephone service or cable TV service.   
 
The U.S. Department of Commerce periodically has asked the U.S. Census Bureau to 
include questions on whether households have telephones, computers, and Internet access as part 
of the Current Population Survey.  Chart 2.10 shows the percent of U.S. households with 
computers, Internet access, and high-speed access.  The chart presents summary statistics from 
the most recent (sixth) report based on these data, A Nation Online:  Entering the Broadband 
Age, which is available through the National Telecommunications and Information 
Administration (NTIA) web site at www.ntia.doc.gov.   
 
Table 2.9 and Chart 2.11 show the percent of U.S. households with Internet Connections 
for rural and urban areas. 
 
 
 
 
2003 2006
Jun
 ADSL 951,583 2,693,834 5,101,493 7,675,114 11,398,199 13,817,280 16,316,309 19,515,619 22,575,010
 SDSL and Traditional Wireline 758,594 1,088,066 1,186,680 1,215,713 1,407,121 1,468,566 898,468 904,539 948,160
    SDSL ------411,731 394,348 337,438
    Traditional Wireline 486,737 510,191 610,722
 Cable Modem 2,284,491 5,184,141 9,172,895 13,684,225 18,592,636 21,357,400 23,936,536 26,469,242 28,513,500
 Fiber 
3
46,635 81,248 105,991 111,386 130,928 159,653 315,651 448,257 700,083
 Satellite and Wireless 65,615 194,707 220,588 309,006 421,690 549,621 965,068 3,814,122 11,872,309
    Satellite ------376,837 426,928 495,365
    Fixed Wireless 208,695 257,431 360,976
    Mobile Wireless ------379,536 3,129,763 11,015,968
 Power Line and Other 4,872 4,571 5,208
 
   Total Lines 4,106,918 9,241,996 15,787,647 22,995,444 31,950,574 37,352,520 42,436,904 51,156,350 64,614,270
For data through December 2004, only those providers with at least 250 lines per state were required to file.   
Some data have been revised.  See additional notes following Chart 2.9.   
    
Technology
 2
2000
Table 2.1
(Over 200 kbps in at least one direction)
High-Speed Lines 
1
2001 2002
Jun
Chart 2.2
Total High-Speed Lines
Chart 2.1
High-Speed Lines by Technology as of June 30, 2006
Jun Jun Jun
2004
JunJun Dec
2005
Dec
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
70,000,000
Dec 1999 Dec 2000 Jun 2003 Jun 2004 Jun 2005 Jun 2006
Cable Modem
44.1%
SDSL and Traditional 
Wireline
1.5%
ADSL
34.9%
Fiber
1.1%
All Other
18.4%
 2 - 3
 
2003 2006
Jun Jun Jun Jun Jun Dec Jun Dec Jun
 ADSL 326,816 998,883 1,852,879 2,536,368 3,768,019  5,695,548  13,176,095  15,921,353  18,301,930  
 SDSL and Traditional Wireline 758,594 1,088,066 1,186,680 1,215,713 1,407,121  1,468,566  869,772  874,263  946,900  
    SDSL - - - - - - 387,451  368,736  336,612  
    Traditional Wireline - - - - - - 482,321  505,527  610,288  
 Cable Modem 1,469,130 3,329,976 6,819,395 11,935,866 17,567,468  20,891,624  22,664,106  26,200,400  28,220,563  
 Fiber 
3
40,627 81,204 104,015 110,829 129,636  157,127  314,229  447,244  698,990  
 Satellite and Wireless 3,649 73,476 66,073 64,393 93,805  106,616  223,274  340,110  2,274,465  
    Satellite - - - - - - 10,966  36,331  27,489  
    Fixed Wireless - - - - - - 191,229  220,276  333,072  
    Mobile Wireless - - - - - - 21,079  83,503  1,913,904  
 Power Line and Other - - - - - - 4,174  4,501  5,208  
 
   Total Lines 2,598,816 5,571,605 10,029,042 15,863,169 22,966,048  28,319,482  37,251,651  43,787,871 50,448,057
For data through December 2004, only those providers with at least 250 lines per state were required to file.  
Some data have been revised.  See additional notes following Chart 2.9.  
Advanced Services Lines by Technology as of June 30, 2006
Technology 
2
Total High-Speed Lines
Chart 2.4
2002 2005
Advanced Services Lines 
1
Table 2.2
Advanced Services Lines
Chart 2.3
2004
(Over 200 kbps in both directions)
2000 2001
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005
Cable Modem
55.9%
SDSL and Traditional Wireline
1.9%
ADSL
36.3%
Fiber
1.4%
All Other
4.5%
 2 - 4
 
2003 2006
Jun Jun Jun Jun Jun Dec Jun Dec Jun
 ADSL 772,272 2,490,740 4,395,033 6,429,938 10,759,495 13,119,326 14,442,823 17,370,536 20,143,255
 SDSL and Traditional Wireline 111,490 138,307 223,599 250,372 393,049 419,215 159,489 129,439 112,043
    SDSL - - - - - - 153,978 122,215 102,631
    Traditional Wireline - - - - - - 5,511 7,224 9,412
 Cable Modem 2,215,259 4,998,540 9,157,285 13,660,541 18,525,265 21,270,158 23,497,069 25,625,191 27,720,407
 Fiber 
3
325 2,623 6,120 16,132 22,719 34,959 83,293 213,484 442,027
 Satellite and Wireless 64,320 182,165 202,251 288,786 387,563 422,623 428,367 533,480 1,839,368
    Satellite - - - - - - 265,017 320,149 382,047
    Fixed Wireless - - - - - - 160,775 203,188 301,153
    Mobile Wireless - - - - - - 2,574 10,143 1,156,168
 Power Line and Other - - - - - - 4,447 4,550 5,093
  
   Total Lines 3,163,666 7,812,375 13,984,287 20,645,769 30,088,091 35,266,281 38,615,489 43,876,680 50,262,193
For data through December 2004, only those providers with at least 250 lines per state were required to file.  
Small business lines were included in totals through December 2004. 
Some data have been revised.  See additional notes following Chart 2.9.  
Residential High-Speed Lines by Technology as of June 30, 2006
Chart 2.5
Chart 2.6
Residential High-Speed Lines
20052004
Residential High-Speed Lines 
1
Table 2.3
(Over 200 kbps in at least one direction)
Technology
 2
2000 2001 2002
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005
SDSL and Traditional 
Wireline
0.2%
ADSL
40.1%
Fiber
0.9%
Cable Modem
55.2%
All Other
3.7%
 2 - 5
 
2003 2006
 ADSL 195,324 916,364 1,580,575 2,071,779 3,174,022 5,026,367 11,731,303 14,242,318 16,407,705
 SDSL and Traditional Wireline 111,490 138,307 223,599 250,372 393,049 419,215 151,979 125,110 111,961
    SDSL - - - - - - 149,862 122,215 102,606
    Traditional Wireline - - - - - - 2,118 2,895 9,355
 Cable Modem 1,401,434 3,146,953 6,809,170 11,920,207 17,505,907 20,811,704 22,243,481 25,444,150 27,479,801
 Fiber 
3
325 2,617 5,118 15,751 21,866 33,189 82,831 212,865 441,128
 Satellite and Wireless 2,916 60,988 47,787 46,407 72,485 84,465 150,893 205,470 1,448,607
    Satellite - - - - - - 2,244 25,118 15,055
    Fixed Wireless - - - - - - 146,074 170,522 277,384
    Mobile Wireless - - - - - - 2,574 9,830 1,156,168
 Power Line and Other - - - - - - 3,916 4,481 5,093
 
   Total Lines 1,711,488 4,265,229 8,666,249 14,304,515 21,167,329 26,374,940 34,364,403 40,234,394 45,894,295 
For data through December 2004, only those providers with at least 250 lines per state were required to file. 
Small business lines were included in totals through December 2004. 
Some data have been revised.  See additional notes following Chart 2.9.  
Chart 2.8
Jun
Residential Advanced Services Lines by Technology as of June 30, 2006
Jun
Chart 2.7
Residential Advanced Services Lines
Technology 
2
2004
Dec Dec
2005
Jun Jun
Table 2.4
Residential Advanced Services Lines 
1
(Over 200 kbps in both directions)
JunJunJun
20022000 2001
0 
10,000,000 
20,000,000 
30,000,000 
40,000,000 
50,000,000 
Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005
Fiber
1.0%
All 
Other
3.2%
SDSL and Traditional Wireline
0.2%
ADSL
35.8%
Cable Modem
59.9%
 2 - 6
 
 ADSL 4,273,080 12,176,742 6,111,807 11,255 * * 
 SDSL 826 327,370 9,223 11 * * 
 Traditional Wireline 434 583,221 10,363 891 12,270 3,543
 Cable Modem 292,937 3,053,382 23,039,748 2,099,654 27,779 0
 Fiber 
3
1,093 221,227 315,266 133,339 15,778 13,380
 Satellite 467,876 * * 0 0 0
 Fixed Wireless 27,904 313,011 17,220 2,580 207 54
 Mobile Wireless 9,102,064 * * 0 0 0
 Power Line and Other 0 * * 0 0 0
   Total Lines 14,166,213 18,618,973 29,506,209 2,247,730 57,101 18,044 
* Data withheld to maintain firm confidentiality.      
Table 2.5
High-Speed Lines by Information Transfer Rates 
1
As of June 30, 2006
Exceeding 200 kbps in both directions, and:
Technology 
2
Exceeding    
200 kbps in 
only one 
direction
See data have been revised.  See additional notes following Chart 2.9.
Greater than 
200 kbps and 
less than 2.5 
mbps in the 
faster 
direction
Greater than 
or equal to 
2.5 mbps and 
less than 10 
mbps in the 
faster 
direction
Chart 2.9
High-Speed Lines by Information Transfer Rates in the Faster Directions as of June 30, 2006
(Includes only lines exceeding 200 kbps in both directions)
Greater than 
or equal to    
100 mbps in 
the faster 
direction
Greater than 
or equal to   
10 mbps and 
less than 25 
mbps in the 
faster 
direction
Greater than 
or equal to   
25 mbps and 
less than    
100 mbps in 
the faster 
direction
36.9%
58.5%
4.6%
> than 200 kbps, < than 2.5 mbps
? than 2.5 mbps, < than 10 mbps
? than 10 mbps
 2 - 7
 
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed 
Services for Internet Access:  Status as of June 30, 2006 (January 2007).
Notes for Tables 2.1 - 2.5 and Charts 2.1 - 2.9.
Advanced services lines, residential high-speed lines, and residential advanced services lines are 
estimated based on data reported on FCC Form 477.  Therefore, figures may not add to totals due to 
rounding.
1
  High-speed lines are connections to end-user locations that deliver services at speeds exceeding 200 
kbps in at least one direction.  Advanced services lines, which are a subset of high-speed lines, are 
connections that deliver services at speeds exceeding 200 kbps in both directions.  In Tables 2.2 and 
2.4, we enumerate those reported high-speed lines that also qualify as advanced services lines.  More 
detailed information about connection speeds is presented in Table 2.5.  Line counts presented in this 
report are not adjusted for the number of persons at a single end-user location who have access to, or 
who use, the Internet-access services that are delivered over the high-speed connection to that location.
2 
 The mutually exclusive types of technology are, respectively:  Asymmetric digital subscriber line 
(ADSL) technologies, which provide speeds in one direction greater than speeds in the other direction; 
symmetric digital subscriber line (SDSL) technologies; traditional wireline technologies "other" than 
ADSL and SDSL, including traditional telephone company high-speed services that provide equivalent 
functionality, and also Ethernet service if delivered to the subscriber's location over copper (as opposed 
to optical fiber) plant; cable modem, including the typical hybrid fiber-coax (HFC) architecture of 
upgraded cable TV systems; optical fiber to the subscriber's premises (e.g., Fiber-to-the-Home, or 
FTTH); satellite and fixed and mobile terrestrial wireless systems, which use radio spectrum to 
communicate with a radio transmitter; and electric power line.  
3 
 Fiber line counts included electric power line through December 2004.  The June 2005 fiber counts 
reflect a downward correction by one or more filers.  Fiber line counts prior to June 2005 have been 
adjusted to take into account this downward correction.  
 2 - 8
 
Traditional Cable Fixed Mobile Power Line
Wireline Modem Wireless Wireless and Other
Alabama 268,970 9,409 5,691 310,548 995 * 704 * * 615,510
Alaska 53,687 8,108 358 * * * 4,292 * 0 125,005
American Samoa * * 0 0 0 * * 0 0 *
Arizona 276,261 1,741 8,114 761,419 2,272 * 16,964 * 0 1,392,711
Arkansas 180,883 920 2,974 148,940 2,148 * 581 * 0 363,933
California 4,001,529 38,728 161,115 2,956,932 132,473 * 39,329 * 0 9,395,285
Colorado 404,989 2,538 12,928 476,463 1,073 * 11,067 * 0 1,165,853
Connecticut * 4,118 6,588 441,092 2,776 * 0 * 0 1,024,053
Delaware * 307 1,528 * * * 0 * 0 157,648
District of Columbia * 2,898 2,185 * 423 * * * 0 200,221
Florida 1,722,888 8,784 33,858 1,939,409 48,814 * 23,422 * 0 4,408,427
Georgia 1,008,705 8,230 22,043 649,583 1,900 * 503 * 0 2,054,077
Guam * 0 * 0 0 * 0 0 0 *
Hawaii * * 2,224 **** * 294,612
Idaho 97,662 480 1,514 75,185 1,078 * 21,915 * 0 202,521
Illinois 1,094,088 14,523 40,916 987,640 * * 19,750 * * 2,611,672
Indiana 443,473 4,649 11,935 490,020 22,187 * 6,296 * * 1,191,752
Iowa 189,267 4,114 2,250 225,545 2,133 * 11,651 * 0 446,657
Kansas 179,430 3,976 4,282 316,866 2,652 * 11,232 * 0 595,979
Kentucky 250,715 4,592 4,014 306,487 1,683 * 1,715 * 0 629,538
Louisiana 235,750 4,762 3,551 378,613 9,843 * 1,143 * 0 730,203
Maine 89,964 3,198 3,484 145,831 * * * * 0 248,440
Maryland 450,019 7,202 11,003 637,405 * * * * 0 1,492,484
Massachusetts * 7,896 11,551 954,812 * * * * 0 1,811,845
Michigan 533,835 4,059 23,377 888,018 12,378 * 2,755 * * 1,786,572
Minnesota 330,736 20,216 4,954 518,063 4,897 * 20,203 * 0 1,057,576
Mississippi 128,585 * 1,824 114,140 448 * * * 0 262,671
Missouri 468,334 4,754 9,871 400,808 4,219 * 5,084 * * 1,016,732
Montana 70,471 2,411 880 54,056 202 * 6,460 * 0 139,946
Nebraska 95,404 2,640 688 218,335 350 * 6,804 * 0 355,013
Nevada 168,086 1,144 7,683 * 1,407 * 3,430 * 0 614,151
New Hampshire 85,247 2,477 2,892 201,873 * * * * 0 302,957
New Jersey 638,293 7,636 17,419 1,312,433 20,032 * * * 0 2,654,674
New Mexico 129,076 544 1,428 100,157 * * 2,160 * 0 250,439
New York 1,001,018 26,755 21,789 2,765,476 54,134 * 464 * 0 4,852,849
North Carolina 561,102 24,545 14,569 650,767 6,670 * 12,917 * 0 1,601,938
North Dakota 38,729 4,282 287 19,861 2,592 * 2,859 * 0 70,615
Northern Mariana Islands * 0 * 0 * * * 0 0 *
Ohio 752,633 5,392 18,693 1,115,618 19,046 * 11,669 * * 2,392,030
Oklahoma 246,899 1,937 4,545 284,184 3,816 * 1,947 * 0 569,398
Oregon 280,286 6,686 5,964 407,195 9,444 * 10,129 * 0 860,385
Pennsylvania 871,164 22,253 15,726 1,164,080 42,214 * 1,413 * 0 2,646,898
Puerto Rico * 0 3,406 **** 169,917
Rhode Island * 1,318 1,649 * 1,488 * 0 * 0 276,141
South Carolina 242,548 225 7,402 368,338 3,792 * * * 0 645,886
South Dakota 32,763 3,999 215 37,514 840 * 4,375 * 0 83,275
Tennessee 348,344 2,475 9,293 506,143 5,707 * 150 * 0 1,153,432
Texas 1,733,423 15,471 32,321 1,692,433 104,719 * 51,814 * 0 4,371,655
Utah 189,240 4,378 2,974 * 766 * 8,642 * 0 471,137
Vermont 51,382 1,129 1,864 * * * 409 * 0 108,622
Virgin Islands * * * 0 0 * * * 0 7,226
Virginia 440,990 6,752 17,121 892,955 43,338 * 6,219 * * 1,787,359
Washington 491,409 6,919 10,448 725,832 14,206 * 12,721 * * 1,575,375
West Virginia 86,507 2,832 1,833 145,450 * * * * 0 245,597
Wisconsin 359,530 7,725 15,252 542,881 * * 4,078 * 0 1,034,646
Wyoming 38,541 1,247 164 * 56 * 2,126 * 0 83,086
yg
  Nationwide 22,575,010 337,438 610,722 28,513,500 700,083 495,365 360,976 11,015,968 5,208 64,614,270
* Data withheld to maintain firm confidentiality.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  High-Speed Services for Internet Access:  Status as of June 30, 2006 
(January 2007).
Table 2.6
High-Speed Lines by Technology as of June 30, 2006
(Over 200 kbps in at least one direction)
SDSLADSL Fiber Satellite TotalState
 2 - 9
 
2006
Jun Jun Jun Jun Jun Dec Jun Dec Jun
Alabama 32,756 86,234 172,365 283,946 350,691 410,054 455,300 531,976 615,510
Alaska * 20,906 46,791 61,121 88,076 110,416 95,761 109,484 125,005
American Samoa 0 0 0 0 *  0 * * *
Arizona 109,867 154,883 305,304 441,227 618,677 745,957 809,819 1,039,553 1,392,711
Arkansas 15,539 40,803 84,061 128,100 188,185 220,051 258,270 302,881 363,933
California 862,835 1,639,921 2,527,275 3,378,373 4,608,822 5,294,566 5,954,876 7,337,831 9,395,285
Colorado 61,408 142,295 238,702 338,083 515,081 615,101 688,189 882,669 1,165,853
Connecticut 61,903 146,266 233,277 364,371 516,039 598,582 679,891 807,796 1,024,053
Delaware 3,242 12,158 35,941 54,272 74,732 91,975 108,554 132,399 157,648
District of Columbia 9,243 28,861 44,266 58,800 83,213 101,638 113,086 139,594 200,221
Florida 234,807 634,703 1,103,236 1,634,552 2,236,963 2,659,862 2,958,350 3,537,720 4,408,427
Georgia 118,630 285,637 494,263 748,016 1,039,440 1,205,282 1,328,956 1,610,750 2,054,077
Guam 0 0 0 0 * * * * *
Hawaii * * * * * * * * 294,612
Idaho 8,070 20,233 43,119 64,353 99,845 126,121 149,023 167,926 202,521
Illinois 148,600 325,085 525,817 840,632 1,270,907 1,497,803 1,817,481 2,159,932 2,611,672
Indiana 47,982 77,617 156,375 233,679 515,812 637,696 742,667 922,568 1,191,752
Iowa 49,159 72,583 102,932 162,257 229,811 266,794 325,701 394,359 446,657
Kansas 42,679 101,478 149,415 248,405 322,742 386,747 419,384 470,287 595,979
Kentucky 24,237 39,297 90,284 121,594 300,704 360,903 408,184 508,198 629,538
Louisiana 43,294 121,685 207,257 315,682 420,917 486,077 536,934 508,009 730,203
Maine 17,864 37,888 61,069 85,212 123,739 142,246 176,396 214,599 248,440
Maryland 64,130 171,423 306,504 458,128 655,588 782,757 899,640 1,120,826 1,492,484
Massachusetts 175,243 342,643 566,796 802,423 1,004,229 1,122,230 1,213,640 1,431,925 1,811,845
Michigan 131,692 389,441 531,524 729,113 946,819 1,088,090 1,336,312 1,558,034 1,786,572
Minnesota 62,983 143,819 269,433 394,982 561,411 645,505 716,826 855,753 1,057,576
Mississippi 6,271 21,185 57,168 95,628 139,429 168,393 191,675 219,552 262,671
Missouri 44,924 120,863 220,477 362,040 537,343 584,743 704,273 811,811 1,016,732
Montana * 10,446 17,969 28,023 57,650 72,880 90,583 112,662 139,946
Nebraska 44,188 55,188 92,849 141,172 199,282 216,780 253,968 305,120 355,013
Nevada 40,297 78,076 137,407 209,028 290,518 343,111 401,932 474,019 614,151
New Hampshire 32,774 55,241 85,697 118,304 168,000 215,168 236,817 268,128 302,957
New Jersey 120,549 394,198 654,235 924,835 1,194,557 1,423,698 1,605,301 1,989,803 2,654,674
New Mexico 2,671 20,099 44,462 71,355 115,147 145,125 174,534 204,054 250,439
New York 281,641 811,386 1,364,556 1,891,457 2,349,956 2,688,731 3,067,983 3,660,500 4,852,849
North Carolina 81,998 205,100 461,378 680,828 965,761 1,119,805 1,222,648 1,482,930 1,601,938
North Dakota 2,437 6,277 14,164 25,474 39,274 47,957 56,044 60,871 70,615
Northern Mariana Islands 0 0 0 0 0 0 0 * *
Ohio 154,597 354,258 575,756 817,020 1,152,300 1,340,976 1,601,981 1,932,269 2,392,030
Oklahoma 161,601 90,147 148,006 231,106 331,605 387,456 444,777 502,984 569,398
Oregon 43,217 91,457 197,778 316,300 437,040 508,068 558,489 688,487 860,385
Pennsylvania 71,413 249,119 501,950 755,947 1,123,876 1,386,259 1,578,981 1,999,118 2,646,898
Puerto Rico * * * 32,063 43,091 61,554 66,484 118,268 169,917
Rhode Island 19,899 48,258 71,463 104,444 141,981 164,034 185,415 221,901 276,141
South Carolina 32,824 96,839 175,088 262,868 354,877 415,844 464,315 549,019 645,886
South Dakota 3,516 5,448 12,555 22,016 34,026 40,286 61,830 70,721 83,275
Tennessee 87,012 151,706 293,516 413,476 534,597 628,846 682,369 847,025 1,153,432
Texas 252,721 614,704 1,015,245 1,571,250 2,203,490 2,551,963 2,943,487 3,467,705 4,371,655
Utah 18,997 54,005 92,623 133,467 196,590 236,287 259,150 313,854 471,137
Vermont 1,551 16,230 29,990 39,773 56,033 72,400 82,279 95,901 108,622
Virgin Islands * * * * * * 2,183 2,967 7,226
Virginia 64,740 202,663 348,716 553,635 817,881 981,832 1,117,591 1,367,465 1,787,359
Washington 118,723 227,066 422,348 577,378 775,027 889,368 1,000,412 1,220,058 1,575,375
West Virginia 1,835 16,697 58,209 90,173 127,283 155,397 178,323 205,984 245,597
Wisconsin 34,262 127,172 256,735 401,565 564,670 649,091 731,934 859,114 1,034,646
Wyoming * * 10,990 17,507 35,464 45,602 55,905 70,574 83,086
 Nationwide 4,106,918 9,241,996 15,787,647 22,995,444 31,950,574 37,352,520 42,436,904 51,156,350 64,614,270
2005
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  High-Speed Services for Internet Access:  Status as of June 30, 
2006 (January 2007).
Table 2.7
High-Speed Lines by State
(Over 200 kbps in at least one direction)
* Data withheld to maintain firm confidentiality.  Some data have been revised.
2003 20042000 2001 2002
State
 2 - 10
 
xDSL Availability Where Cable Modem Availability Where
State ILECs Offer Local Telephone Service Cable Systems Offer Cable TV Service
Alabama 78% 91%
Alaska 78% *
American Samoa *0%
Arizona 67% 91%
Arkansas 66% 77%
California 86% 97%
Colorado 82% 96%
Connecticut * 84%
Delaware **
District of Columbia
Florida 88% 96%
Georgia 87% 89%
Guam *0%
Hawaii * *
Idaho 76% 83%
Illinois 78% 97%
Indiana 74% 94%
Iowa 83% 89%
Kansas 80% 86%
Kentucky 85% 91%
Louisiana 87% 87%
Maine 67% 89%
Maryland 75% 98%
Massachusetts * 99%
Michigan 66% 92%
Minnesota 81% 91%
Mississippi 73% 79%
Missouri 72% 96%
Montana 76% 83%
Nebraska 86% 91%
Nevada 85% *
New Hampshire 59% 83%
New Jersey 88% 100%
New Mexico 75% 79%
New York 78% 99%
North Carolina 83% 95%
North Dakota 86% 79%
Northern Mariana Islands *0%
Ohio 81% 95%
Oklahoma 75% 88%
Oregon 81% 90%
Pennsylvania 82% 94%
Puerto Rico * *
Rhode Island **
South Carolina 78% 84%
South Dakota 76% 58%
Tennessee 81% 95%
Texas 75% 95%
Utah 82% *
Vermont 60% *
Virgin Islands *0%
Virginia 66% 96%
Washington 80% 94%
West Virginia 68% 88%
Wisconsin 76% 96%
Wyoming 77% *
  Nationwide 79% 93%
* Data withheld to maintain firm confidentiality.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, High-Speed Services for 
Internet Access:  Status as of June 30, 2006 (January 2007).
xDSL includes both asymmetric and symmetric DSL.  Each state-specific estimate is a weighted average of the availability percentages
that ILECs or cable system operators report for the areas they serve.  Reported xDSL availability is weighted by ILEC end-user 
switched access lines.  Reported cable modem availability is weighted by cable TV subscribers.  The weighted averages include ILECs 
or cable system operators that report no availability.
Table 2.8
Percentage of Residential End-User Premises with Access to High-Speed Services as of June 30, 2006
 2 - 11
      * Years 2001 and 2003 reflect 2000 Census-based weights and earlier years use 1990 Census-based weights.
       Source:  A Nation Online:  Entering the Broadband Age, September 2004, U.S. Department of Commerce,
                    Economics and Statistics Administration (ESA), National Telecommunications and Information
                    Administration (NTIA), and U.S. Census Bureau.
Chart 2.10
Percent of U.S. Households
With Computers, Internet Access, and High-Speed Access
Selected Years (1997 - 2003) *
38.6%
18.6%
42.1%
26.2%
51.0%
41.5%
4.4%
56.2%
50.5%
9.1%
61.8%
54.6%
19.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
P
ercent of U
.
S.
 H
ouseholds
Computer 38.6% 42.1% 51.0% 56.2% 61.8%
Internet Access 18.6% 26.2% 41.5% 50.5% 54.6%
High-Speed Access 4.4% 9.1% 19.9%
Oct 1997 Dec 1998 Aug 2000 Sept 2001 Oct 2003
2 - 12
Internet Service 54.1 % 54.8 % 54.6 %
  Dial-Up Service 40.4 32.3 34.3
  High-Speed Service 13.2 21.8 19.9
    Cable Modem 7.7 12.4 11.2
    DSL 5.0 9.4 8.3
    Satellite and Fixed Wireless (MMDS
1
) 0.6 0.3 0.4
  Other
0.4 0.5 0.4
Source:  A Nation Online:  Entering the Broadband Age, September 2004, U.S. Department
              of Commerce, Economics and Statistics Administration (ESA), National 
              Telecommunications and Information Administration (NTIA), and U.S. Census Bureau
1 
MMDS - Multi-Media Distribution Systems.
Table 2.9
Percent of U.S. Households with Internet Connections by Technology
Rural versus Urban
Rural Urban Total
(As of October 2003)
(As of October 2003)
Chart 2.11
Percent of U.S. Households with Internet Connections by Technology
Rural versus Urban
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Rural
54.1% 40.4% 13.2%
Urban
54.8% 32.3% 21.8%
Internet Service   Dial-Up Service   High-Speed Service
 2 - 13
 3-1
3 Consumer Expenditures 
 
 The Bureau of Labor Statistics conducts surveys of consumer expenditures, in 
part, to develop weights for CPI indices.  Table 3.1 shows total annual expenditures for 
telephone service for all consumer units. 
 
 About 2% of all consumer expenditures are devoted to telephone service.  This 
percentage has remained virtually unchanged over the past twenty years, despite major 
changes in the telephone industry and in telephone usage.  Average annual expenditures 
on telephone service increased from $360 per household in 1981 to $990 in 2004.   
 
 Bill Harvesting data collected by TNS Telecoms provide information on the 
telecommunications expenditures of households.  (Additional information on TNS 
Telecoms can be found in Section 14 and Appendix B.) 
 
 Expenditures can be classified by the type of service provider.  Table 3.2 presents 
average monthly household bills from local exchange, long distance and wireless 
providers for 1995 through 2005.  The upper portion of the table shows average monthly 
expenditures for the entire sample of households while the lower shows average monthly 
expenditures among those households billed by each type of service provider.  The 
average monthly household bill from local exchange service providers is the same in both 
portions of the table since every household in the sample was billed by a local exchange 
service provider.  For long distance and wireless providers, average monthly household 
expenditures are greater in the latter portion of the table since those households not billed 
by these providers are removed from the average. 
 
It's important to note that categorizing telecommunications providers by the type 
of service they provide has become increasingly difficult.  For some households taking 
bundled local and long distance service, it was impossible to separate the bill into its 
component parts.  In those cases, the entire bill was allocated to the local exchange 
service provider. 
 
Another measure of consumer expenditures for telephone service is provided by 
the Bureau of Economic Analysis.  The estimates of personal consumption expenditures 
by wireline and cellular services in Table 3.3 and Charts 3.1 and 3.2 illustrate the 
increasing importance of the wireless share of household telephone service expenditures. 
 
 
 
 
 
 
 
 
 
1981 $17,558 $360 2.1 %
1982 18,071 375 2.1
1983 19,692 415 2.1
1984 21,975 435 2.0
1985 23,490 455 1.9
1986 23,866 471 2.0
1987 24,414 499 2.0
1988 25,892 537 2.1
1989 27,810 567 2.0
1990 28,381 592 2.1
1991 29,614 618 2.1
1992 29,846 623 2.1
1993 30,692 658 2.1
1994 31,731 690 2.2
1995 32,264 708 2.2
1996 33,797 772 2.3
1997 34,819 809 2.3
1998 35,535 830 2.3
1999 36,995 849 2.3
2000 38,045 877 2.3
2001 39,518 914 2.3
2002 40,677 957 2.4
2003 40,817 956 2.3
2004 43,395 990 2.3
Source:  Bureau of Labor Statistics, Consumer Expenditure Survey.
Table 3.1
Annual Expenditures
for All Households
Telephone 
Expenditures as a 
Percent of All 
Expenditures
Year
All Expenditures
Telephone 
Expenditures
Household Expenditures for Telephone Service
3 - 3
Table 3.2
Average Monthly Household Telecommunications Expenditures
By Type of Provider
Year Local Exchange Long Distance Total
1995 $30    $21    $51    $7    $58    
1996 30    21    51    9    60    
1997 32    25    57    11    68    
1998 33    23    56    14    70    
1999 34    21    55    17    72    
2000 35    18    53    23    76    
2001 36    15    51    29    80    
2002 36    12    48    35    83    
2003 37    10    47    41    88    
2004 36    9    45    47    92    
2005 36    8    44    53    97    
Year Local Exchange Long Distance Total
1995 $30    $24    $54    $46    $100    
1996 30    26    56    45    101    
1997 32    28    60    40    100    
1998 33    28    61    41    102    
1999 34    25    59    42    101    
2000 35    24    59    46    105    
2001 36    21    57    51    108    
2002 36    19    55    56    111    
2003 37    16    53    62    115    
2004 36    13    49    67    116    
2005 36    12    48    74    122    
(Averages for all Households)
(Averages for only those Households Billed for Service)
Note:  Average monthly household expenditures are estimates based on sample data.  All households in the 
sample have wireline telephone service.  Households in Alaska and Hawaii are excluded from the analysis.  No effort 
was made to distinguish bundled prices from a la carte prices.  For households taking bundled local and long distance 
from the same provider, the entire bill is generally considered local.
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms 
ReQuest Market Monitor, Bill Harvesting.
Wireline Providers
Wireline Providers
Wireless 
Providers
Total
Wireless 
Providers
Total
 3 - 4
Table 3.3
Personal Consumption Expenditures
(Expenditure Amounts Shown in Millions)
All Goods  Wireline  Cellular Total Telephone Wireline Cellular
and  Telephone  Telephone Telephone  Service as a as a 
Services  Services  Services Services as a Percentage Percentage
1/  2/  3/  Percentage of All of All
of All Telephone Telephone
Goods & Service Service
Services
  
 
1980 $1,757,133 $27,560  $0 $27,560 1.6 % 100 % 0 %
1981 1,941,060 30,883  0 30,883 1.6 100 0
1982 2,077,268 35,140  0 35,140 1.7 100 0
1983 2,290,556 38,639  0 38,639 1.7 100 0
1984 2,503,287 41,786  0 41,786 1.7 100 0
1985 2,720,305 45,877  101 45,978 1.7 100 0
1986 2,899,724 49,088  173 49,261 1.7 100 0
1987 3,100,234 51,637  242 51,879 1.7 100 0
1988 3,353,615 53,771  591 54,362 1.6 99 1
1989 3,598,496 56,689  1,352 58,041 1.6 98 2
1990 3,839,937 58,276  2,246 60,522 1.6 96 4
1991 3,986,066 60,660  3,088 63,748 1.6 95 5
1992 4,235,265 65,803  4,866 70,669 1.7 93 7
1993 4,477,887 68,370  6,423 74,793 1.7 91 9
1994 4,743,287 72,634  8,522 81,156 1.7 89 11
1995 4,975,787 73,753  11,274 85,027 1.7 87 13
1996 5,256,832 79,052  13,735 92,787 1.8 85 15
1997 5,547,400 87,942  15,706 103,648 1.9 85 15
1998 5,879,482 91,410  18,902 110,312 1.9 83 17
1999 6,282,474 94,249  24,149 118,397 1.9 80 20
2000 6,739,378 94,880  30,187 125,068 1.9 76 24
2001 7,055,038 91,658  36,713 128,371 1.8 71 29
2002 7,350,722 87,002  41,750 128,752 1.8 68 32
2003 7,709,874 83,669  46,212 129,881 1.7 64 36
2004 8,214,298 79,550  52,559 132,109 1.6 60 40
2005 8,745,746 78,164  58,209 136,373 1.6 57 43
 1/ Represents the sum of three series: Durable Goods (Series E1TDG1 A); Non-durable goods (Series E1TND1 A)
and Services (Series E1TSS1 A).
 2/ Represents the sum of two series:  Local Telephone Service (Series E1OLC1 D) and Long Distance Telephone 
Services (Series E1LDT1 D).
 3/ Cellular Telephone Service (Series E1CEL1 D).
 Source:  Bureau Of Economic Analysis, National Economic Accounts, Table 2.4.5U. Personal Consumption Expenditures 
by Type of Product.  See http://www.bea.gov/bea/dn/nipaweb/nipa_underlying/TableView.asp?SelectedTable=22&
FirstYear=2005&LastYear=2006&Freq=Qtr, visited September 13, 2006.  
       
3 - 5
Chart 3.1
Personal Consumption Expenditures for Telephone Service
($ Billions)
Chart 3.2
Monthly Personal Consumption Expenditures for Telephone Service per Household
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$
B
illio
n
s
1980 1985 1990 1995 2000 2005
Wireline Cellular
$0
$10
$20
$30
$40
$50
$60
$70
$80
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Wireline Cellular
3 - 6
 4-1
4 Earnings 
 
 Beginning in the mid-1980s, local exchange carriers that file access tariffs with the 
Commission were required to file rate-of-return reports (FCC Form 492).  The first reports were 
filed for the monitoring period October 1, 1985 - December 31, 1986.  Carriers filed reports for 
each subsequent two-year monitoring period (1987-88 and 1989-90).  
 
 In 1991, carriers that became subject to price-cap incentive regulation began filing 
reports on a yearly basis.  Non-price-cap carriers filed annual reports for each monitoring period. 
 Table 4.1 is a summary of interstate rates of return for 1998-2005 filed by price-cap carriers.  
Rates of return for 1991-1997 can be found in the August 2001 Trends report which can be 
accessed at www.fcc.gov/wcb/stats. 
 
 The rates of return shown in Table 4.1 were those posted at the time of the carriers 
individual FCC Form 492 filings.  They do not reflect revisions filed by the carriers at a later 
date.  Thus, they are not necessarily the official versions for regulatory purposes, but they do 
illustrate general industry trends.  Summaries of the filings can be found on the Wireline 
Competition Bureau Statistical Reports web site at www.fcc.gov/wcb/stats.  Copies of the FCC 
Form 492A reports are on file in the FCC's Reference Information Center, Courtyard Level, 445 
12th Street S.W., Washington, D.C. 20554. 
 
Reporting Entity 2002 2001 2000 1999 1998
1  BellSouth Telecommunications, Inc. 24.71 22.68 21.93 % 19.35 % 21.25 % 22.83 % 20.99 % 20.80 %
2  Qwest Corporation, Including Malheur and El Paso 28.60 25.07 22.74 20.08 19.14 19.93 19.06 16.56
 SBC Communications, Inc.
3   Southwestern Bell Telephone Company L.P. 27.92 16.38
6
15.60 14.88 18.81 15.17 10.22 9.91
4   Ameritech Operating Companies 31.29 22.51 20.55 20.24 25.72 30.24 28.93 22.59
5   Nevada Bell Telephone Company 36.81 24.76 20.16 14.86 20.86 21.55 19.26 16.02
6   Pacific Bell Telephone Company 27.47 28.77 26.23 21.00 23.79 19.20 21.01 16.50
7   Southern New England Telephone Company, The 20.27 21.82
6
23.93 18.47 23.57 18.21 12.12 10.99
 Verizon Telephone Companies
8 Verizon Telephone Companies (Verizon FCC Tariff No. 1) 14.51 11.24 8.00 11.95 12.93 13.36 13.66
   (Former Bell Atlantic Companies)
    Bell Atlantic 13.88
    Bell Atlantic (NYNEX) 11.40
     New England Telephone and Telegraph Co.
     New York Telephone
9   Verizon California Inc. (California - GTCA) 28.91 34.99 29.17 28.50 28.48 25.87 22.01 17.19
10   Verizon California Inc. (California - COCA) 26.02 36.93 30.64 28.22 29.80 28.74 28.28 22.71
11   Verizon California Inc. (Arizona - COAZ) 32.00 6.17 2.05 6.99 13.25 10.9 15.57 13.80
12   Verizon California Inc. (Nevada - CONV) 28.08 28.79 28.51 24.08 26.66 28.82 20.57 24.01
13   Verizon Florida Inc. (Florida - GTFL) 32.57 28.96 24.46 22.03 29.23 21.90 18.93 14.58
14   Verizon North Inc. (COPA + COQS = COPT) 39.10 32.88
6
40.74 43.61 39.71 41.05 39.58 45.97
15   Verizon North Inc. (Illinois - COIL) 41.49 41.72 60.34 54.09 53.67 44.51 41.03 14.11
16   Verizon North Inc. (Indiana - COIN) 51.58 40.36 47.34 46.06 46.55 47.67 41.40 34.61
17   Verizon North Inc. (Ohio - GTOH) 21.17 18.58 19.39 19.53 20.45 21.88 21.7 21.83
18   Verizon North Inc. (Pennsylvania - GTPA) 54.03 20.50 13.76 22.50 23.17 21.95 21.41 14.67
19   Verizon North Inc. (Wisconsin - GTWI) 13.99 11.53
6
10.85 9.90 14.16 16.99 17.85 16.08
20   Verizon North/Verizon South (GTIN + GLIN = GAIN) 23.19 22.34 22.64 24.75 32.82 33.00 32.47 29.06
21   Verizon North/Contel South (GTMI + GLMI = GAMI) 18.01 14.83
6
15.10 16.64 17.49 16.45 15.75 13.17
22   Verizon North/Verizon South (GTIL + GLIL = GAIL) 23.20 23.29 21.99 21.54 23.67 23.90 22.35 23.07
23   Verizon Northwest Inc. (Oregon - GTOR) 32.91 25.44 26.28 26.10 31.69 30.95 31.56 27.03
24   Verizon Northwest Inc. (West Coast CA  - GNCA) (33.60) (9.44) (13.80) (5.17) 1.91 (8.35) (9.93) (6.85)
25   Verizon Northwest Inc. (Washington - COWA) 33.62 30.44 36.20 31.57 40.06 39.49 39.17 30.41
26   Verizon Northwest Inc. (Washington - GTWA) 33.60 33.91 29.82 28.97 34.03 33.26 32.91 27.33
27   Verizon Northwest Inc. (Idaho - GTID) 44.03 34.53 28.20 33.01 38.74 34.17 32.24 30.89
28   Verizon South Inc. (North Carolina  - GTNC) (22.63) 17.52 16.74 23.45 30.08 26.44 24.85 27.92
29   Verizon South Inc. (N. Carolina - CONC) 4.39 10.10 14.77 21.97 22.17 17.75 19.87 12.78
30   Verizon South Inc. (GTSC + COSC = GTST) 23.47 39.63 28.19 29.82 32.44 31.19 30.70
    Verizon South Inc. (Alabama - GTAL) 24.02 20.24 22.23 17.59
    Verizon South Inc. (Kentucky - COKY) 30.95 20.60 9.55 5.97
    Verizon South Inc. (Kentucky - GTKY) 27.21 25.07 24.03 22.34
    GTE South Inc. (South Carolina - GTSC) 30.62
    GTE South Inc. (South Carolina - COSC) 26.14
31   Verizon South Inc. (Virginia - COVA) 46.97 33.50 39.52 40.41 40.69 40.85 34.74 35.19
32   Verizon South Inc. (Virginia - GTVA) 22.83 24.17 (22.01) 1.76 9.53 6.62 9.94 20.56
33   GTE Southwest Inc. dba Verizon Southwest (Texas - COTX) 11.26 11.23 10.05 12.46 11.9 12.17 17.13 14.96
34   GTE Southwest Inc. dba Verizon Southwest (Texas - GTTX) 18.63 18.21 18.74 20.47 24.35 21.65 21.42 16.43
  GTE Midwest Inc. (Missouri - COMO + COCM + COEM = COMT) 20.33 17.06 15.29 12.56
  GTE Midwest Inc. (Missouri - GTMO) 23.92 19.15 11.82 16.08
  GTE Systems of The South (Alabama - COAL) 15.77 14.93 10.88 7.97
%
(Final Reports for 1998 Through 2004 and Initial Report for 2005) 
1
200320042005
%
Table 4.1
Interstate Rate of Return Summary *
Years 1998 through 2005
Price-Cap Companies Reporting FCC Form 492A
 4 - 3
Reporting Entity 2002 2001 2000 1999
Sprint
37   Central Telephone Company - Nevada Division 45.68 % 43.37 % 34.16 % 23.80 % 19.61 % 19.29 % 21.15 % 17.79 %
38   Sprint - Florida Incorporated 42.94 40.98
6
35.54 29.41 25.89 27.38 27.17 26.14
39   Sprint Local Telephone Cos. - Eastern (NJ & PA) 56.33 55.14
6
45.38 37.78 26.21 25.62 20.87 14.59
40   Sprint Local Telephone Cos. - Midwest (MO, KS, MN, NE, WY, TX) 32.3 29.17
6
25.24 18.89 16.63 18.88 17.69 19.66
41   Sprint Local Telephone Cos. - North Carolina 50.81 51.62
6
45.89 36.64 25.56 22.23 15.92 12.55
42   Sprint Local Telephone Cos. - Northwest (OR & WA) 33.81 23.90
6
33.51 34.62 31.55 32.77 31.86 32.54
43   Sprint Local Telephone Cos. - Southeast (TN, VA & SC) 38.73 36.14
6
34.34 33.76 25.33 23.32 17.50 15.87
44   United Telephone Co. of Indiana, Inc. 71.84 68.80
6
46.47 41.75 35.19 38.21 28.98 24.19
45   United Telephone Co. of Ohio 46.2 39.01
6
31.50 30.89 27.13 20.03 20.16 17.33
 All Other Companies
46   ALLTEL Nebraska, Inc. 28.40 14.25
6
13.43 12.20 12.57 12.99 19.27 15.02
47   Kentucky ALLTEL - Lexington, Inc. 38.10 33.40
6
26.75 27.78
48   Kentucky ALLTEL - London, Inc. 23.37 25.50
6
26.26 28.76
49   CenturyTel of Belle-Hermann/So Missouri/Sw Missouri (CNMO) 28.36 22.94 14.53 4.69
2
50   CenturyTel of Central Missouri (CNMC) 44.95 37.88
6
32.54 11.83
2
51   CenturyTel of Northern Alabama (CNAN) 21.54 11.97 8.23 7.49
3
52   CenturyTel of Southern Alabama (CNAS) 27.84 23.21 24.13 15.78
3
53   Cincinnati Bell Telephone Company 34.47 33.71
6
32.48 28.64
4
30.09 28.95 25.45 17.81
54   Citizens Comms Cos. dba Citizens Comms FCC Tariff 1 (CTC1) 32.31 34.99
6
24.40 19.27 15.73 19.68 16.71 17.87
55   Citizens Comms Cos. dba Citizens Comms FCC Tariff 2 (CTC2) 29.13 37.75
6
16.14 20.67 17.30 24.05 15.74 14.29
56   Citizens Comms Cos. dba Citizens Comms FCC Tariff 3 (CTC3) 16.24 12.19
6
10.40 8.94 4.52 16.12 15.56
57   Citizens Comms Cos. dba Citizens Comms FCC Tariff 4 (CTC4) 49.91 42.79
6
35.38 23.31 13.08 30.94
58   Frontier Telephone of Rochester 14.03 55.89
6
10.67 11.47 12.32 18.91 16.77 18.37
59   Frontier Tier 2 Concurring Companies 50.77 11.45
6
38.49 33.34 38.12 38.95 43.42 45.45
60   Frontier Comms of Minnesota & Frontier Comms of Iowa 25.12 33.67
6
32.16 31.15 25.24 33.16 35.40 29.28
61   Citizens Telecommunications Cos. (CTC5) 40.37 4.90 0.86 (11.23)
62   Hawaiian Telecom 21.88 9.44
7
16.96 15.30 16.72 17.87 17.62 15.64
63   Iowa Telecom Service Group 19.36 17.30
6
17.58
5
14.26
4
13.07
64   Iowa Telecom Systems Service Group 19.14 20.16 23.97
5
20.47
4
18.45
65   Micronesian Telecommunications Corp. 37.67 43.52
67
33.91 32.75 21.83 23.58 29.24 34.45
66   Valor New Mexico #1164 28.25 22.96
6
18.45 16.86 11.45 20.67
67   Valor New Mexico #1193 17.77 21.16
6
20.41 15.88 8.39 13.35
68   Valor Oklahoma 19.38 15.29
6
8.69 9.31 11.65 11.22
69   Valor Texas 18.08 13.47
6
15.21 10.66 5.70 5.24
Maximum Rate of Return 71.84 % 68.80 % 59.89 % 54.09 % 53.67 % 47.67 % 43.42 % 48.69 %
Minimum Rate of Return (33.60) (9.44) (17.50) (5.17) 0.86 (11.23) (9.93) (25.83)
Weighted Arithmetic Mean 23.48 20.44 18.06 17.69 19.62 18.04 18.50 15.60
Standard Deviation 9.13 9.00 8.63 5.69 5.80 5.17 5.96 3.96
* The interstate rates of return reported by carriers on the FCC Form 492A may not necessarily agree with the interstate rates of return reported by the carriers
   on other Commission forms.  For example, price-cap carriers also report interstate rates of return on the Commission's Automated Reporting Management
   Information System's (ARMIS) 43-01 report.  The interstate rates of return reported by carriers on the ARMIS 43-01 include revenues and costs for non-
   price-cap services.
1
 For years 1991 - 1997, see Industry Analysis Division, Common Carrier Bureau, Trends in Telephone Service  (August 2001).
2
 For the reporting period 9/1/02 - 12/31/02.
3
 For the reporting period 7/1/02 - 12/31/02.
4
 For final 2002, there were no changes to the preliminary.
5
 For final 2003, there were no changes to the preliminary.
6
 For final 2004, there were no changes to the preliminary.
7
 Verizon sold these companies in 2005.
Table 4.1
2003
Interstate Rate of Return Summary *
Years 1998 through 2005
(Final Reports for 1998 Through 2004 and Initial Report for 2005) 
1
Price-Cap Companies Reporting FCC Form 492A - Continued
199820042005
 4 - 4
5 Employment and Labor Productivity 
 
     The Bureau of Labor Statistics (BLS) publishes monthly data regarding the 
total number of employed workers in the communications industry.  Specifically, BLS 
compiles employment statistics for the entire telephone communications industry.
1
  
These are classified according to the North American Industry Classification System 
(NAICs). 
 
NAICS is a collaborative effort between the United States, Canada, and Mexico to 
provide new comparability in statistics about business activity across North America.  
The telecommunications industry subsector (517) can be found in the NAICS 
Information Sector  51.  The industry groups under telecommunications are as follows:  
wired telecommunications carriers (5171); wireless telecommunications carriers  
wireless (excluding satellite), paging, cellular and other wireless (5172); 
telecommunications resellers (5173); telecommunications distribution (5175); and other 
telecommunications (5179).  Further information on NAICS can be found on the Census 
Bureau web site at http://www.census/gov/epcd/www/naics.html. 
 
Table 5.1 and the associated graph show the information compiled by BLS for the 
annual average employment figures for the telecommunications industry  NAICS 517, 
as well as the industry distributions for wired telecommunications carriers  NAICS 
5171, wireless telecommunications carriers  NAICS 5172, telecommunications resellers 
 NAICS 5173, and cable and other program distribution  NAICS 5175.  Wireless 
telecommunications carriers employees are further shown for cellular and other wireless 
carriers  NAICS 517212.  Monthly employment data for these categories from 1990 to 
the present can be found on the BLS web site at www.bls.gov. 
 
 Table 5.2 and the associated graph show the information compiled by BLS for the 
labor productivity index for wired telecommunications carriers  NAICS 5171 and 
wireless telecommunications carriers  NAICS 5172.  The BLS index of labor 
productivity relates output to the employee hours expended in producing that output. 
 
 Table 5.3 presents estimates of the number of telecommunications service 
providers that the Small Business Administrations Office of Size Standards defines as 
small businesses (i.e., 1,500 or fewer employees, including all affiliates). 
                                                 
1
 BLS used to compile data based on the Standard Industrial Classification (SIC) system.  With 
the May 2003 data, the employment series underwent a complete industry reclassification, 
changing from the 1987 SIC system to the 2002 NAICS.  Employment statistics from 1951 to 
2002 based on the SIC system can be found in Table 5.1 of the Industry Analysis and Technology 
Division, Wireline Competition Bureau,  Trends in Telephone Service (August 2003).  The Labor 
Productivity Index for the telephone communications industry for the years 1951 to 2002 based 
on the SIC system can also be found in the August 2003 edition of Trends in Table 5.2. 
 
 
 
5 - 1 
Year Telecom Wired Wireless Cellular and Telecom Cable and
Carriers Telecom Telecom Other Wireless Resellers Other Program
Carriers Carriers Carriers Distribution
517 5171 5172 517212 5173 5175
1990 980.3  672.2  35.8  30.4  179.5  70.1  
1991 973.1  662.7  41.8  35.4  178.1  71.3  
1992 946.0  637.2  47.8  40.3  172.6  72.7  
1993 942.2  624.5  56.3  47.4  170.5  75.8  
1994 961.1  621.9  71.7  60.3  171.8  80.4  
1995 975.7  611.1  90.3  75.9  171.2  86.6  
1996 997.0  603.2  110.1  92.5  171.6  94.6  
1997 1,059.5  629.9  132.1  111.0  181.3  96.9  
1998 1,107.8  652.1  144.2  121.1  188.7  102.4  
1999 1,179.7  688.1  160.0  134.3  200.2  110.9  
2000 1,262.6  719.2  185.6  155.7  213.6  123.0  
2001 1,302.1  732.2  201.4  171.0  214.1  129.2  
2002 1,186.5  650.7  197.3  170.4  179.5  130.3  
2003 1,082.3  579.2  189.8  166.9  154.9  132.5  
2004 1,034.6  548.3  189.0  168.3  149.8  129.6  
2005 998.7  514.3  192.3  172.5  135.1  133.8  
Source:  Bureau of Labor Statistics.
(In Thousands)
Table 5.1
Annual Average Number of Employees in the Telecommunications Industry
(In Thousands)
Annual Average Number of Employees in the Telecommunications Industry
Chart 5.1
0
200
400
600
800
1,000
1,200
1,400
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Telecom Carriers Wired Carriers Wireless Carriers
Cellular & Other Wireless Telecom Resellers Cable & Other
 5 - 3
 
Year
1988 62.02 77.86
1989 65.26 76.97
1990 66.04 70.38
1991 68.07 66.17
1992 72.13 74.42
1993 76.85 83.81
1994 82.41 89.59
1995 87.59 90.05
1996 96.50 101.66
1997 100.00 100.00
1998 107.73 110.48
1999 116.65 145.21
2000 122.68 152.76
2001 116.74 191.88
2002 124.13 217.94
2003 130.24 242.49
2004 131.32 288.74
Source:  Bureau of Labor Statistics
Wired Wireless
Table 5.2
Labor Productivity Index for the Wired and Wireless
Telecommunications Industry Measured in Output per Hour (OPH)
(Base Year 1997 = 100)
Carriers Carriers
Wired and Wireless Telecommunications Carriers
(NAICS 5171 and 5172) Labor Productivity Index
(NAICS 5171) (NAICS 5172)
Chart 5.2
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Wired (5171) Wireless (5172)
 5 - 4
Table 5.3
Number of Telecommunications Service Providers by Size of Business
(As of October 20, 2005)
1,500 or Fewer 
Employees 
2
More than 1,500 
Employees 
2
Incumbent Local Exchange Carriers (ILECs) 1,307 1,019 288
Competitive Access Providers (CAPs) and Competitive Local 
Exchange Carriers (CLECs)
859 741 118
Local Resellers 184 181 3
Shared-Tenant Service Providers 16 16 0
Other Local Service Providers 44 43 1
Total Local Competitors 1,103 981 122
  Total Fixed Local Service Providers 2,410 2,000 410
Payphone Service Providers 657 653 4
Private Service Providers 59 54 5
Wireless Telephony Including Cellular, Personal Communications 
Service (PCS) and SMR Telephony Carriers
432 221 211
Paging and Messaging Service Providers 365 360 5
Specialized Mobile Radio (SMR) Dispatch 187 187 0
Wireless Data and Other Mobile Service Providers 47 46 1
Total Wireless Service Providers 1,031 814 217
Interexchange Carriers (IXCs) 330 309 21
Operator Service Providers (OSPs) 23 22 1
Prepaid Calling Card Providers 104 102 2
Satellite Service Providers 44 41 3
Toll Resellers 881 853 28
Other Toll Carriers 93 91 2
Total Toll Service Providers 1,475 1,418 57
All Filers 5,632 4,939 693
Holding Company Analysis
Filers without Affiliates:
Holding Company Level 3,592 3,575 17
Filer Level 3,592 3,575 17
Filers with Affiliates 
3
:
Holding Company Level 513 468 45
Filer Level 2,040 1,364 676
Total, Holding Company Level 4,105 4,043 62
Total, Filer Level 5,632 4,939 693
2
 Employee counts are estimated at the holding company level, yet presented at the filer level.  If our analysis indicates that, at the holding company level, 
a group of filers together employs more than 1,500 people, then each of the individual filers that comprise the holding company are entered in the column 
labeled as such.  Therefore, our estimates do not imply that each or any of the individual filers alone employs more than 1,500 persons.
Source:  FCC Form 499-A filings and IATD staff estimates.
Filers that in Combination with          
Affiliates Have
Number of FCC 
Form 499-A 
Filers 
1
Type of Provider
1
 While FCC Form 499-A filings are not publicly available, filer registration information is published by the Industry Analysis and Technology Division 
(IATD) in the Telecommunications Provider Locator (March 2006), which can be accessed at www.fcc.gov/wcb/stats.  This same information is 
searchable online at www.fcc.gov/wcb/iatd/locator.html.
Note:  Estimates are based on gross revenue data filed on the 2005 FCC Form 499-A worksheets, and public employment data from ARMIS and Securities 
and Exchange Commission filings.  Filers were considered affiliated based on information from their FCC Form 499-A filings.  These estimates do not 
reflect affiliates that do not provide telecommunications service or that operate solely outside the United States.
3 
In some cases, affiliated companies may file a single FCC Form 499A for all operations.  Such consolidated filings are included in this category.
 5 - 5
 
 6 -1
6 International Telephone Service 
 
 International telecommunications has become an increasingly important segment 
of the telecommunications market.  International telephone calling -- propelled by 
technological innovation, and increased international trade and travel -- has skyrocketed.  
In 1980, customers in the United States were billed for almost 2 billion minutes of calls 
to international points.  This figure increased to 8 billion in 1990, 30 billion in 2000, and 
64 billion in 2004.  Americans spent $9.2 billion on international calls in 2004.  On 
average, carriers billed 14 cents per minute for international calls in 2004, a decline of 
90% since 1980, and 72% since 2000.  International private line revenues increased 
through 2000 but have declined significantly since then.  These trends are shown in Table 
6.1.  Chart 6.1 shows the trends in billed revenues per minute and per call since 1980. 
 
 U.S. and foreign carriers compensate each other when one carries traffic that the 
other bills.  Because Americans place more calls than they receive, U.S. carriers make 
substantial net payments to foreign carriers -- $3.6 billion in 2004.  Falling compensation 
rates have more than offset the growth in traffic in recent years.  Trends in settlement 
payments are shown in Table 6.2. 
 
 International traffic data are available on a country-by-country basis.  Table 6.3 
summarizes traffic by region of the world.  Five markets -- Canada, Mexico, the United 
Kingdom, Germany, and India -- currently account for about 38% of the international 
billed minutes in the United States.  Chart 6.2 shows the percentage breakout for the five 
markets. 
 
 Since 1985, when MCI began to compete with AT&T for international calls, 
numerous carriers have begun to provide international service.  Seventy-two carriers 
provided international telecommunications service in 2004 by using their own facilities 
or lines leased from other carriers.  These carriers provided $8.7 billion of international 
telephone service between the U.S. and foreign points, $458 million of international 
private line service, and $136 million other miscellaneous international services.  Table 
6.4 shows the U.S.-billed revenues for the 54 carriers that did not request confidential 
treatment.  Together, AT&T, MCI, and Sprint, accounted for 78% of the international 
service billed in the United States.   
 
 Seven hundred and eighteen carriers reported revenues for international message 
telephone service that they provided on a pure resale basis.  These carriers reported $5.2 
billion of pure resale revenues in 2004.  Table 6.5 shows pure resale revenues for the 
carriers with the highest pure resale messages, minutes and revenues.   
 
 The data compiled in Tables 6.1 - 6.5 are filed pursuant to section 43.61 of the 
Commission's rules.  Preliminary data are filed July 31st of each year and final data are 
filed October 31st.  Additional information can be found in a number of international 
reports on the Internet on the Wireline Competition Bureau Statistical Reports web page 
at www.fcc.gov/wcb/stats. 
Table 6.1
International Service from the United States
(Minute, Message, and Revenue Amounts Shown in Millions)
Telephone Service Other Services
Billed Revenues Billed Revenues
 Minutes Total Per Per Call Telex Misc.
End-User 
1
Minute 
2
Services
1980 1,569 199 $2,097 $1.34 $10.53 $325 $63 $115
1981 1,857 233 2,239 1.21 9.61 350 62 126
1982 2,187 274 2,382 1.09 8.70 363 56 138
1983 2,650 322 2,876 1.09 8.92 379 54 154
1984 3,037 367 3,197 1.05 8.71 394 46 158
1985 3,446 411 3,487 1.01 8.49 415 45 172
1986 4,126 482 4,004 0.97 8.30 390 42 175
1987 4,819 570 4,751 0.99 8.33 360 35 191
1988 5,679 687 5,806 1.02 8.45 310 30 194
1989 6,751 835 6,912 1.02 8.28 243 27 208
1990 8,030 984 8,059 1.00 8.19 196 24 201
1991 9,072 1,384 9,263 1.02 6.69 201 15 309 $23
1992 10,294 1,663 10,382 1.01 6.25 156 16 323 24
1993 11,513 1,945 11,564 1.00 5.95 136 12 366 23
1994 13,616 2,347 12,543 0.92 5.35 123 12 441 25
1995 15,889 2,830 14,335 0.90 5.07 120 6 514 48
1996 19,325 3,520 14,598 0.76 4.15 119 5 661 26
1997 22,753 4,259 15,661 0.69 3.68 110 4 851 28
1998 24,250 4,477 14,726 0.61 3.29 64 2 921 36
1999 28,515 5,305 14,980 0.53 2.82 57 2 1,216 31
2000 30,135 5,742 14,909 0.49 2.60 33 1 1,480 251
2001 33,287 6,265 11,380 0.34 1.82 10              *  1,419 199
2002 35,064 5,926 9,956 0.28 1.64            **             **  988 113
2003 42,664 7,350 8,944 0.21 1.22            **             **  620 156
2004 63,553 10,895 9,178 0.14 0.84            **             **  458 137
*   Denotes revenues less than $500,000.
** Data not filed.
 
1
 Billed revenues in Table 6.1 differ from billed revenues in Table 6.3.  The amounts shown here represent charges to end-user
  customers and equal the amounts billed by underlying carriers plus estimated reseller markups.  The amounts shown in Table 6.3
  are the amounts reported by the underlying carriers that carried the traffic to foreign destinations.
 
2
 Billed revenue per minute for international service differs in Table 6.1 and Table 13.3.  Data in Table 6.1 are calculated using all
  U.S. billed minutes and revenues.  Data for Table 13.3 represent charges for most U.S. billed calls that originate or terminate in the
  United States.  International-to-international revenues and reorigination, country-beyond and country-direct minutes are not included
  in that table.
International Bureau, Trends in the International Telecommunications Industry  (September 2005).
 Data for 2004 from International Bureau, International Telecommunications Data  (March 2006).
       
Billed Revenues per Minute and per Call
Note:  Data represent traffic and circuits from all U.S. points. 
Chart 6.1
Telegraph Private LineMessages
 Source:  
 $0.00
 $0.20
 $0.40
 $0.60
 $0.80
 $1.00
 $1.20
 $1.40
 $1.60
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
Per Minute Per Call
 6 - 3
Table 6.2
International Telephone Service Settlements
(Revenue Amounts Shown in Millions)
Average per Minute
Settlement Settlement U.S.
Owed to Due from Carrier Net
  End-User Retained Due from Net  Foreign Foreign End-User
 Billed Owed to End-User Foreign Net End-User Carriers Carriers Revenues
 Revenues Foreign Revenues Carriers Settlements Revenues for U.S. for Foreign All
1/ Carriers 1/ 2/ 1/ Billed Calls Billed Calls Traffic 3/
1980 $2,097 $1,063 $1,034 $716 ($347) $1,750 $0.68 0.62 $0.64
1981 2,239 1,330 910 799 (531) 1,708 0.72 0.56 0.52
1982 2,382 1,674 708 961 (712) 1,670 0.77 0.60 0.44
1983 2,876 2,036 841 1,086 (950) 1,926 0.77 0.60 0.43
1984 3,197 2,269 928 1,066 (1,203) 1,994 0.75 0.54 0.40
1985 3,487 2,398 1,089 1,243 (1,155) 2,332 0.70 0.55 0.41
1986 4,004 2,865 1,140 1,396 (1,469) 2,536 0.69 0.56 0.38
1987 4,751 3,423 1,328 1,671 (1,752) 2,999 0.71 0.59 0.39
1988 5,806 4,039 1,767 1,906 (2,133) 3,674 0.71 0.59 0.41
1989 6,912 4,735 2,177 2,213 (2,523) 4,390 0.70 0.58 0.42
1990 8,059 5,297 2,762 2,426 (2,871) 5,188 0.66 0.56 0.42
1991 9,263 5,852 3,411 2,536 (3,317) 5,946 0.65 0.51 0.42
1992 10,382 6,008 4,375 2,650 (3,357) 7,025 0.58 0.46 0.44
1993 11,564 6,372 5,192 2,667 (3,705) 7,859 0.55 0.43 0.44
1994 12,543 7,010 5,533 2,719 (4,291) 8,252 0.51 0.39 0.40
1995 14,335 7,569 6,766 2,631 (4,938) 9,397 0.48 0.35 0.40
1996 14,598 8,252 6,345 2,594 (5,658) 8,939 0.43 0.30 0.32
1997 15,661 8,031 7,630 2,602 (5,429) 10,232 0.35 0.27 0.31
1998 14,726 7,022 7,704 2,538 (4,484) 10,242 0.29 0.21 0.28
1999 14,980 6,383 8,597 1,782 (4,601) 10,379 0.22 0.15 0.26
2000 14,909 5,536 9,373 1,609 (3,927) 10,982 0.18 0.11 0.25
2001 11,380 4,526 6,854 1,181 (3,346) 8,034 0.14 0.08 0.17
2002 9,956 3,733 6,223 892 (2,842) 7,114 0.11 0.05 0.14
2003 8,944 3,649 5,295 873 (2,777) 6,167 0.09 0.04 0.10
2004 9,188 4,623 4,530 1,016 (3,642) 5,546 0.07 0.04 0.07
 1/   Billed revenues in Table 6.2 differ from billed revenues in Table 6.3.  The amounts shown here represent charges to 
  end-user customers and equal the amounts billed by underlying carriers plus estimated markups, where service was provided 
  through resellers.  The amounts shown in Table 6.3 are the amounts reported by the underlying carriers.  Similar differences
  exist for retained end-user and net revenues.  
 2/   Beginning in 1991, includes net settlement receipts for transiting traffic.
 3/   Beginning in 1991, includes transiting traffic.
 Note:  Data represent traffic to and from all U.S. points. 
 Data for 2004 from International Bureau, International Telecommunications Data (March 2006). 
 Source:  International Bureau, Trends in the International Telecommunications Industry (September 2005). 
6 - 4
Table 6.3
International Message Telephone Service for 2004
(Figures Rounded to the Nearest Million)
Traffic Billed in the United States Traffic Billed in Foreign Countries Total
Originating or Terminating Transiting U.S.
in the United States Carrier
Number Number U.S. Owed to Retained Number Number Due from Retained Retained
of of Carrier Foreign Revenues of of Foreign Revenues Revenues
Region of the World 
1
Messages Minutes Revenues Carriers Messages Minutes Carriers  
Africa                              589 2,652 $457 $319 $138 52 288 $21 $2 $161
Asia                                2,054 12,022 1,831 1,136 695 435 2,688 184 6 886
Caribbean                           702 4,611 681 387 294 146 533 27 1 322
Eastern Europe                      540 3,268 383 232 150 38 283 14 5 170
Middle East                         456 2,270 362 229 132 90 496 17 4 154
North and Central America       2,323 20,587 2,520 1,126 1,393 1,819 9,444 224 41 1,658
Oceania                             260 1,365 179 78 101 65 467 15 5 122
Other Regions                       3 3 4 3 1 5 2 * 1
South America                       662 6,052 657 330 328 172 1,003 68 11 407
Western Europe                      3,297 10,809 1,577 780 797 1,112 4,365 142 225 1,164
Total for Foreign Points         10,834 63,400 8,639 4,612 4,027 3,911 19,425 707 301 5,035
Total for U.S. Points            56 253 14 10 4 24 153 8 * 11
Total for All International 10,890 63,653 $8,653 $4,623 $4,031 3,936 19,578 $715 $301 $5,047
    Points
 *   Denotes values that are less than half a million.
 
1
 The region totals include all international traffic reported by carriers serving domestic U.S. points including Guam and the U.S. Virgin 
    Islands.  Most traffic between Guam, the U.S. Virgin Islands, American Samoa and Northern Mariana Islands and other U.S. points are 
    shown separately as the total for U.S. points, and also are included in the total for all international points.  The total for all international 
    points also includes all traffic originating in American Samoa and the Northern Mariana Islands, which is excluded from the region
    totals.
 Source:  International Bureau, International Telecommunications Data (March 2006).
Chart 6.2
U.S. Billed Minutes by Country
All Other
62.3%
Canada
8.5%
Germany
3.2%
Mexico
15.1%
India
5.4%
United Kingdom
5.5%
6 - 5
Table 6.4
U.S. Billed Revenues of Facilities-Based and Facilities-Resale Carriers in 2004 1/
(Revenue Amounts Shown in Millions)
International Service Total
Telephone Private Miscellaneous International
Line  Billed
 Revenues
A.M.S. Voicecom, Inc.                                         *                   *
ABS-CBN Telecom North America, Inc.         3 3
American Samoa Telecomm. Authority          1 1
Americatel, Inc.                            32 32
AT&T Corp. 3,310 164 3,474
Bestel USA Inc.                             41 41
Cable & Wireless Americas Operations, Inc.  4 4
Centennial Puerto Rico Operations Corp.     3 3
Cinergy Telecommunications, Inc.            8 8
Colt Telecommunications                     6 6
Comsat International                        5 5
Comunitel Global, S.A.                      
DataAccess Ltd.                             55 55
Embratel Americas, Inc.                                                *                   *
France Telecom Long Distance USA, LLC       10 2 12
Geocomm Corporation                                           *                   *
GNG Networks America, Inc.                                    *                   *
Harris Corporation/MCS                      1 1
IDT Corporation                             727 727
IMPSAT USA, Inc.                            17 17
Intelsat USA License Corp.                  8 8
International Access d/b/a Access Int'l.    24 24
IT&E Overseas, Inc.                         7 2 8
Japan Telecom America, Inc.                 5 5
KDDI America, Inc.                          10 10 20
KGM Circuit Solutions, LLC                  1 1
KPN-INS, Inc.                               23 23
Level 3 Communications, LLC                 6 6
Lockheed Martin Corporation                 21 21
MCI, Inc.                                   1,760 137 1,896
NDNT, Inc.                                  1 1
Norlight Telecommunications, Inc.                             *                   *
NTT America, Inc.                           9 9
Orbitel S.A. E.S.P.                         20 4 24
Philippine Long Distance Telephone Co., Ltd. 19 19
Primus Telecommunications, Inc.             235 235
Qwest Services Corporation                  11 11
Reliance Communications, Inc.               165 1 166
Satellite Communication Systems, Inc.                         * 1 1
Sierra USA Communications, Inc.             1 1
Sprint Nextel Corporation                   1,718 37 120 1,875
Startec Global Communications Corporation   9 9
Swisscom North America                      2 2
Telecom Argentina USA, Inc.                 7 7
Telecom Italia Sparkle of North America, Inc 117 117
Telecomunicaciones Ultramarinas-Puerto Rico                   *                   *
Telefonica Larga Distancia, Inc. (TLD)      4                   * 5
Telekom Malaysia (USA), Inc.                                  *                   *
Telenor Global Services AS                                    *                   *
Telmex                                      3 3
UniPlex Telecom Technologies, Inc.          4                   * 4
Universal Telecom Services, Inc.            1 1
Viatel Holding (Bermuda) Limited                              *                   *
WilTel Communications, LLC                  45 6 51
     Total All Carriers  2/   3/ $8,653 $458 $136 $9,341
 * Represents revenues greater than $0 but less than $500,000.
 1/ Totals exclude pure resale services.  Data do not show settlement receipts for terminating foreign billed traffic.
 2/ Includes revenues reported for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands.  
Also includes $14 million of revenues for calls between the domestic United States and these points.
 3/ Totals include revenues for 18 carriers that requested confidential treatment.  These carriers reported $303 million of 
telephone service and $94 million of private line service revenues.
 Source:  International Bureau, International Telecommunications Data (March 2006).
6 - 6
Table 6.5
Top Providers of Pure Resale International MTS in 2004
  
Percent
Number of   Number of    U.S. Carrier of Total
Messages   Minutes    Revenues IMTS
(Millions) (Millions)      ($ Millions) Resale
Revenues
Acceris Communications Corp. 39 386 $53 1.01 %
ACN Communication Services, Inc. 2 19 10 0.19
ALLTEL Corporation 5 37 9 0.18
Americatel, Inc. 28 386 86 1.65
AT&T Corp. 113 550 180 3.44
Bak Communications, LLC 8 118 6 0.11
Broadwing, Inc. 12 60 31 0.58
CenturyTel Long Distance, LLC 1 10 8 0.16
Cingular Wireless LLC 125 563 280 5.33
Citizens Communications Company 6 21 6 0.12
Comcast 7 69 20 0.37
Covista Communications 5 28 4 0.08
Cox Communications, Inc. 9 71 23 0.44
Deutsche TeleKom AG 118 647 191 3.63
Dialaround Enterprises, Inc. 8 57 4 0.08
Embratel Americas, Inc. 36 73 15 0.29
Global Crossing, Ltd 121 512 378 7.20
Gold Line Telemanagement, Inc. 17 62 9 0.16
Grande Communications 23 238 9 0.17
IDT Corporation 612 7,138 568 10.82
Intellicall Operator Services, Inc. 2 20 8 0.15
Long Distance of Michigan, Inc.  d/b/a LDMI Tele- 4 34 7 0.13
MCI, Inc. 156 932 117 2.23
McLeodUSA Incorporated 11 28 4 0.08
MetroPCS, Inc. 4 21 4 0.08
NECC Telecom, Inc. 12 117 15 0.29
Net One International, Inc. 0 40 5 0.09
Network Communications International Corporation 0 1 8 0.15
NobelTel, LCC 30 197 22 0.42
NOS Communications, Inc. 9 78 14 0.27
PaeTec Communications, Inc. 15 59 15 0.28
PT-1 Long Distance, Inc. 41 311 42 0.79
Qwest Communications International, Inc. 1,087 6,508 452 8.61
Reliance Communications International, Inc. 22 266 33 0.62
Sage telecom, Inc. 1 12 5 0.09
SBC Communications, Inc. 248 1,785 490 9.34
Sprint Nextel Corporation 163 842 219 4.17
Startec Global Communications Corporation 50 254 39 0.73
Supra Telecommunications & Information Services, Inc 7 48 10 0.18
Talk America Inc. 11 88 16 0.31
Telecom Italia of North America, Inc. 70 364 23 0.44
TeleDirect Telecommunications Group, LLC 78 286 27 0.51
Total Call International, Inc. 2 24 5 0.09
Trinsic Communications, Inc 8 56 4 0.08
United States Cellular Corporation 4 20 9 0.16
VarTec Telecom Holding 46 223 50 0.96
Verizon Communications, Inc. 118 645 69 1.31
Western Wireless International Enterprises, Inc. 31 164 25 0.49
WilTel Communications, LLC 896 4,268 265 5.04
Working Assets Funding Services, Inc. 3 27 12 0.23
Total for 24 Companies Requesting Confidential Treatment 1,702 8,687 1,217 23.19
Total for 644 Companies Not Shown Above  1/ 240 1,039 129 2.47
    Total for all Reporting Carriers 6,366 38,492 $5,248 100.00 %
 1/  Data are consolidated for affiliated carriers.  A total of 718 companies made a total of 794 filings. 
Source:  International Bureau, International Telecommunications Data (March 2006).
6 - 7
 7 - 1
7   Lines 
 
 Within the telephone industry there are several alternative, but closely related, 
definitions of telephone lines or loops.  While these differences often make it difficult to 
reconcile data from different statistical series, they are not usually large enough to affect 
comparisons among companies or trends over time.  Since 1970, over 90% of households 
and virtually all businesses have subscribed to telephone service.  Until 2000, line growth 
over time, averaging about 3% per year, has historically reflected growth in the 
population and the economy.  Since then, the number of lines provided by wireline 
carriers has declined, likely due to some consumers substituting wireless service for 
wireline service, and some households eliminating second lines when they move from 
dial-up Internet service to broadband service. 
 
 Table 7.1 shows the nation's total number of telephone lines using three 
alternative measures.  The first measure is the number of end-user switched access lines 
for both incumbent local exchange carriers (LECs) and competitive local exchange 
carriers (CLECs) as reported to the Commission on the FCC Form 477.  These data 
undercount lines by a small amount because carriers with less than 10,000 lines in a state 
were not required to file the FCC Form 477 prior to September 2005.  The second 
measure is the number of local loops, which is a way of counting lines that is used to 
determine the amount of high-cost universal service support provided to eligible 
telecommunications carriers.  The number of local loops includes end-user access lines, 
lines resold to other carriers and UNE loops with switching (UNE-P).  This measure 
excludes CLEC lines provided over their own facilities.  The third measure, access lines, 
represents estimates for the whole incumbent LEC industry based on data filed with the 
Commission by large incumbent LECs through the Automated Reporting Management 
Information System (ARMIS).  This measure excludes a substantial number of incumbent 
LEC lines provided to CLECs as UNE-P lines between 2001 and 2005. 
 
Table 7.2 shows the number of local exchange operating areas (study areas  
companys operations in one state) and loops in each state, and shows breakdowns by 
loops for price-cap and average-schedule companies.
1
  Table 7.3 shows the number of 
loops by holding companies, and Chart 7.1 shows the five largest holding companies 
share of loops. 
 
 Table 7.4 compares residential local loops with the number of households with 
telephone service.  Before 2001, the difference between these series was an approximate 
measure of the number of non-primary residential lines.  However, beginning in 2001, a 
significant number of households started replacing wireline service with wireless service, 
requiring an adjustment be made to account for wireless only households.  Table 7.4 
                                                 
1
 Average schedule companies have been permitted by the Commission to estimate their access 
settlements and universal service support through the use of average schedules to avoid the 
difficulties and expenses involved with conducting company-specific cost studies. 
 
 7 - 2
shows that the number of non-primary residential lines grew dramatically from 2.3 
million in 1988 to 26.3 million in 2001 and then decreased back to 12.1 million in 2005. 
 
 Tables 7.5 and 7.6 display payphone line information.  Long distance carriers are 
required to pay payphone owners 49 cents for every completed dial-around call (calls 
where the consumer chooses the long distance carrier over the payphones presubscribed 
long distance carrier).
2
  Because of this requirement, several long distance carriers 
employ the National Payphone Clearinghouse to administer payments on their behalf.  
On an annual basis, the National Payphone Clearinghouse
3
 supplies the FCC with data 
that allow the number of payphones in each state to be calculated. 
 
Table 7.5 shows the number of payphones owned by LECs and by independent 
payphone operators in each state.  The number of payphones is broken down by whether 
the payphones are served by an RBOC or by another LEC.  Payphones located in RBOC 
territories but served by a CLEC are accounted for in the RBOC territories columns.  
Similarly, payphones located in non-RBOC territories (i.e., other incumbent LEC 
territories) but served by a CLEC are accounted for in the all other LEC territories 
columns.  Data for earlier years can be found in earlier editions of Trends. 
 
Table 7.6 shows the number of payphones over time.  The National Payphone 
Clearinghouse began providing detailed data to the Commission starting with data as of 
March 31, 1999.  Where possible, data from the payphone proceedings were used to fill 
values for 1997 and 1998 (see the footnotes to Table 7.6 for citations). 
 
                                                 
2
 See Report and Order, CC Docket 03-225, adopted Jul. 27, 2004. 
 
3 
 Further information on the National Payphone Clearinghouse can be found at 
https://www.npc.cc/home.aspx. 
Table 7.1
U.S. Wireline Telephone Lines
Year Annual ILEC Local Annual ILEC Access Annual
End Growth
Loops 
2
Growth
Lines 
3
Growth
(%) (%) (%)
1980 102,216,367
1981 105,559,222 3.3 %
1982 107,519,214 1.9
1983 110,612,689 2.9
1984 112,550,739 1.8 113,832,113
1985 115,985,813 3.1 117,384,865 3.1 %
1986 118,289,121 2.0 120,730,205 2.8
1987 122,789,249 3.8 124,625,693 3.2
1988   127,086,765 3.5 126,899,632 1.8
1989  131,504,568 3.5 130,860,026 3.1
1990  136,114,201 3.5 134,685,732 2.9
1991  139,412,884 2.4 139,613,309 3.7
1992  143,341,581 2.8 142,367,463 2.0
1993  148,106,159 3.3 147,033,132 3.3
1994  153,447,946 3.6 151,543,061 3.1
1995  159,658,662 4.0 158,152,644 4.4
1996  166,445,580 4.3 165,350,308 4.6
1997  173,866,799 4.5 173,857,193 5.1
1998  179,849,045 3.4 180,516,161 3.8
1999 189,397,096  185,002,911 2.9 186,594,497 3.4
2000 192,432,431 1.6 % 188,499,586 1.9 187,581,092 0.5
2001 191,570,800 -0.5 185,587,160 -1.5 179,811,283 -4.1
2002 189,250,143 -1.2 180,095,333 -3.0 172,265,210 -4.2
2003 182,933,281 -3.3 173,140,710 -3.9 161,376,638 -6.3
2004 177,690,711 -2.8 165,978,892 -4.1 154,590,517 -4.2
2005 175,160,940 -1.4 157,041,487 -5.4 147,661,287 -4.5
NA indicates not available.
1
 Include end-user switched access lines for competitive local exchange carriers (CLECs) and incumbent
   
local exchange carriers (ILECs) as reported in the FCC Form 477.  Carriers with greater than 10,000
  
 lines in a state were required to report.  Beginning with June 2005 data, all LECs are required to report.
2
 Include end-user switched access lines, resold lines, and UNE-P lines.
3
 Beginning in 2001, a substantial number of ILEC lines provided to CLECs as UNE-P lines are not
   
included in this total.
Source: CLEC and ILEC access lines:  Industry Analysis and Technology Division, Wireline 
Competition Bureau, Local Telephone Competition:  Status as of December 31, 2005  (July 2006). 
Local loops:  National Exchange Carrier Association, Universal Service Fund filings.
Access Lines:  Industry Analysis and Technology Division, Wireline Competition Bureau,
Statistics of Communications Common Carriers, 2004/2005 Edition (November 2005), Table 4.10,
after inflating access lines of reporting carriers to represent the total industry.  The 1996
adjustment factor was used for the years prior to 1996.
CLEC and ILEC 
Lines 
1
7 - 3
 
Table 7.2
Telephone Loops of Incumbent Local Exchange Carriers by State
(As of December 31, 2004)
Price Cap Non-Price Cap
 Study Areas
Bell Company 
Loops 
1
 Other 
Company 
Loops
Average 
Schedule 
Company 
Loops 
2
Other 
Company 
Loops Total Loops
Alabama 28 1,774,375      303,390       30,407        168,438        2,276,610     
Alaska 25 0      0       257        414,298        414,555     
American Samoa 1 0      0       0        10,872        10,872     
Arizona 17 2,373,565      163,593       0        40,099        2,577,257     
Arkansas 28 919,866      0       13,072        438,922        1,371,860     
California 22 20,913,376      155,267       0        216,393        21,285,036     
Colorado 28 2,473,740      0       1,100        131,977        2,606,817     
Connecticut 2 2,110,570      0       24,451        0        2,135,021     
Delaware 1 546,439      0       0        0        546,439     
District of Columbia 1 791,292      0       0        0        791,292     
Florida 12 8,203,048      1,963,806       0        190,012        10,356,866     
Georgia 36 3,727,530      27,079       62,014        795,313        4,611,936     
Guam 1 0      0       0        67,059        67,059     
Hawaii 2 0      664,194       0        1,292        665,486     
Idaho 20 646,446      21,764       1,675        45,113        714,998     
Illinois 57 6,957,443      121,350       37,143        207,504        7,323,440     
Indiana 42 3,075,076      264,152       39,019        118,420        3,496,667     
Iowa 154 985,834      317,015       186,037        51,742        1,540,628     
Kansas 39 1,133,026      125,841       0        121,299        1,380,166     
Kentucky 19 1,091,285      712,797       69,839        129,304        2,003,225     
Louisiana 20 2,080,847      0       1,313        186,560        2,268,720     
Maine 20 662,838      0       36,205        109,851        808,894     
Maryland 2 3,598,762      0       0        7,504        3,606,266     
Massachusetts 3 3,775,033      0       0        4,166        3,779,199     
Michigan 39 5,469,022      23,055       26,342        169,672        5,688,091     
Minnesota 88 1,887,050      412,486       218,642        183,846        2,702,024     
Mississippi 19 1,232,062      6,344       10,502        78,965        1,327,873     
Missouri 44 2,362,597      561,445       10,676        312,472        3,247,190     
Montana 18 332,734      8,227       4,090        161,319        506,370     
Nebraska 40 367,505      342,132       16,158        89,203        814,998     
Nevada 14 406,963      827,523       0        33,198        1,267,684     
New Hampshire 10 697,781      0       2,119        54,405        754,305     
New Jersey 3 5,764,974      208,762       0        9,346        5,983,082     
New Mexico 16 794,410      100,439       0        45,203        940,052     
New York 44 10,176,986      832,018       20,706        254,708        11,284,418     
North Carolina 26 2,577,077      1,303,738       231,355        484,377        4,596,547     
North Dakota 23 179,077      0       58,158        110,496        347,731     
Northern Mariana Islands 1 0      24,480       0        0        24,480     
Ohio 42 4,605,609      1,340,446       53,923        372,099        6,372,077     
Oklahoma 39 1,384,536      109,657       4,062        234,183        1,732,438     
Oregon 33 1,697,012      70,446       10,367        155,849        1,933,674     
Pennsylvania 36 6,092,636      412,664       590,334        249,516        7,345,150     
Puerto Rico 2 0      0       0        1,180,127        1,180,127     
Rhode Island 1 491,107      0       0        0        491,107     
South Carolina 26 1,558,593      91,250       58,568        466,487        2,174,898     
South Dakota 30 201,450      0       68,118        78,617        348,185     
Tennessee 25 2,395,844      327,503       107,812        254,517        3,085,676     
Texas 58 10,323,315      693,235       10,301        563,646        11,590,497     
Utah 13 964,276      23,422       7,506        61,339        1,056,543     
Vermont 10 342,946      0       4,636        59,620        407,202     
Virgin Islands 1 0      0       0        69,425        69,425     
Virginia 21 3,792,376      381,625       89,815        26,503        4,290,319     
Washington 24 3,071,554      80,047       4,438        263,298        3,419,337     
West Virginia 10 808,623      154,896       1,530        15,095        980,144     
Wisconsin 90 2,227,852      68,246       201,347        591,442        3,088,887     
Wyoming 10 238,015      6,621       0        44,416        289,052     
  Total 1,436 140,284,373      13,250,955       2,314,037        10,129,527        165,978,892     
 
1
 Includes loops owned by Verizon/GTE and SBC/Southern New England Telephone.  Excludes Woodbury Telephone of Connecticut, 
affiliated with SBC,  24,451 average schedule company loops.  Also excludes Puerto Rico Telephone Company, affiliated with Verizon, 
1,180,127 rate of return lines.
Source:  NECA, Universal Service Fund 2006 Submission of 2005 Study Results  (October 1, 2006).
2 
Average schedule companies have been permitted by the Commission to estimate their access settlements and universal service support 
through the use of average schedules to avoid the difficulties and expenses involved with conducting company-specific cost studies.
 7 - 4
 
Table 7.2
Telephone Loops of Incumbent Local Exchange Carriers by State - Continued
(As of December 31, 2005)
Price Cap Non-Price Cap
 Study Areas
Bell Company 
Loops 
1
 Other 
Company 
Loops
Average 
Schedule 
Company 
Loops 
2
Other 
Company 
Loops Total Loops
Alabama 28 1,709,853      288,069       29,708        168,672        2,196,302     
Alaska 25 0      0       211        388,790        389,001     
American Samoa 1 0      0       0        10,956        10,956     
Arizona 17 2,216,212      163,210       0        40,134        2,419,556     
Arkansas 28 883,340      0       12,853        417,045        1,313,238     
California 22 20,245,343      151,856       0        213,694        20,610,893     
Colorado 28 2,344,958      0       1,110        128,440        2,474,508     
Connecticut 2 1,974,198      0       23,746        0        1,997,944     
Delaware 1 530,802      0       0        0        530,802     
District of Columbia 1 766,942      0       0        0        766,942     
Florida 12 7,731,525      1,959,052       0        185,084        9,875,661     
Georgia 36 3,564,080      25,108       58,708        768,802        4,416,698     
Guam 1 0      0       0        65,044        65,044     
Hawaii 2 0      631,169       0        1,469        632,638     
Idaho 20 626,900      21,575       1,624        44,531        694,630     
Illinois 57 6,594,221      115,886       35,831        198,525        6,944,463     
Indiana 42 2,906,678      258,552       37,247        115,484        3,317,961     
Iowa 154 933,367      302,364       182,088        50,407        1,468,226     
Kansas 39 1,047,966      118,053       0        118,647        1,284,666     
Kentucky 19 1,031,123      678,386       68,069        126,567        1,904,145     
Louisiana 20 1,825,451      0       1,515        175,716        2,002,682     
Maine 20 627,371      0       34,760        105,531        767,662     
Maryland 2 3,476,006      0       0        7,382        3,483,388     
Massachusetts 3 3,525,161      0       0        3,990        3,529,151     
Michigan 39 4,894,189      23,708       25,439        161,964        5,105,300     
Minnesota 88 1,770,985      402,267       212,522        180,155        2,565,929     
Mississippi 19 1,156,946      5,965       9,981        77,861        1,250,753     
Missouri 44 2,232,380      538,520       10,289        299,967        3,081,156     
Montana 18 312,838      7,833       3,672        156,517        480,860     
Nebraska 40 337,747      325,176       15,654        85,940        764,517     
Nevada 14 399,371      815,986       0        33,276        1,248,633     
New Hampshire 10 663,827      0       2,249        53,299        719,375     
New Jersey 3 5,369,173      199,427       0        8,759        5,577,359     
New Mexico 16 766,185      98,307       0        44,549        909,041     
New York 44 9,183,646      784,606       20,071        241,968        10,230,291     
North Carolina 26 2,392,828      1,267,826       225,040        477,225        4,362,919     
North Dakota 22 168,655      0       55,838        108,174        332,667     
Northern Mariana Islands 1 0      22,770       0        0        22,770     
Ohio 42 4,240,488      1,237,113       52,711        356,846        5,887,158     
Oklahoma 39 1,307,868      94,084       3,961        229,490        1,635,403     
Oregon 33 1,624,737      68,536       10,356        151,512        1,855,141     
Pennsylvania 36 5,817,302      403,209       572,331        241,198        7,034,040     
Puerto Rico 2 0      0       0        1,158,243        1,158,243     
Rhode Island 1 431,042      0       0        0        431,042     
South Carolina 26 1,469,189      88,552       57,084        458,936        2,073,761     
South Dakota 31 189,615      0       67,611        76,544        333,770     
Tennessee 25 2,290,408      340,821       105,474        251,002        2,987,705     
Texas 58 9,721,374      667,358       10,202        546,564        10,945,498     
Utah 13 931,202      22,810       7,460        61,241        1,022,713     
Vermont 10 333,854      0       4,583        59,166        397,603     
Virgin Islands 1 0      0       0        68,956        68,956     
Virginia 21 3,603,429      380,110       88,737        25,512        4,097,788     
Washington 24 2,923,522      77,477       4,431        253,950        3,259,380     
West Virginia 10 784,109      152,517       1,479        15,170        953,275     
Wisconsin 90 2,051,195      66,428       193,894        566,338        2,877,855     
Wyoming 10 223,079      6,531       0        43,819        273,429     
  Total 1,436 132,152,680      12,811,217       2,248,539        9,829,051        157,041,487     
 
1
 Includes loops owned by Verizon/GTE and SBC/Southern New England Telephone.  Excludes Woodbury Telephone of Connecticut, 
affiliated with SBC,  23,746 average schedule company loops.  Also excludes Puerto Rico Telephone Company, affiliated with Verizon, 
1,158,243 rate of return lines.
Source:  NECA, Universal Service Fund 2006 Submission of 2005 Study Results  (October 1, 2006).
2 
Average schedule companies have been permitted by the Commission to estimate their access settlements and universal service support 
through the use of average schedules to avoid the difficulties and expenses involved with conducting company-specific cos
 7 - 5
 
Holding Companies Loops Percent of Loops
Verizon Communications, Inc. 52,494,623         31.63  %         
SBC Communications, Inc. 52,218,326         31.46              
BellSouth Telecommunications, Inc. 21,979,758         13.24              
Qwest Communications International, Inc. 14,820,724         8.93              
Sprint Corporation 7,225,725         4.35              
ALLTEL Corporation 2,780,622         1.68              
CenturyTel, Inc. 2,302,107         1.39              
Citizens Communications Company 2,179,804         1.31              
Cincinnati Bell 901,415         0.54              
Hawaiian Telecom Communications, Inc. 664,194         0.40              
TDS Telecommunications Corporation 654,023         0.39              
Valor Communications Group, Inc. 533,266         0.32              
Commonwealth Telephone Enterprises, Inc. 320,200         0.19              
Alaska Communications Systems 282,302         0.17              
Iowa Network Services, Inc. 262,591         0.16              
FairPoint Communications, Inc. 245,421         0.15              
Consolidated Communications, Inc. 237,659         0.14              
Madison River Telephone Company 170,985         0.10              
Rock Hill Telephone Company 143,605         0.09              
D&E Communications, Inc. 139,226         0.08              
Surewest Communications 128,563         0.08              
North State Communications Corporation 120,706         0.07              
CT Communications, Inc. 114,414         0.07              
Horry Telephone Cooperative, Inc. 92,845         0.06              
North Pittsburgh Telephone Company 74,007         0.04              
Hargray Communications Group, Inc. 73,536         0.04              
Virgin Islands Telephone Corporation 69,425         0.04              
Guam Telephone Authority 67,059         0.04              
Matanuska Telephone Association, Inc. 60,832         0.04              
Hickory Tech Corporation 58,757         0.04              
Farmers Telephone Cooperative, Inc. (SC) 58,690         0.04              
Pioneer Telephone Cooperative (OK) 53,484         0.03              
Lynch Interactive Corporation 51,655         0.03              
Ntelos, Inc. 46,380         0.03              
Golden West Telecommunications Cooperative, Inc. 45,002         0.03              
Atlantic Telephone Membership Corporation 41,578         0.03              
Guadalupe Valley Telephone Cooperative, Inc. 40,817         0.02              
SRT Services Corporation 40,561         0.02              
East Ascension Telephone Company, LLC 38,742         0.02              
Twin Lakes Telephone Cooperative Corporation 38,097         0.02              
Otelco Holding, LLC 36,995         0.02              
Skyline Telephone Membership Corporation 36,567         0.02              
Ben Lomand 36,139         0.02              
Horizon Telecom 35,415         0.02              
All Other Companies 3,971,050         2.39              
  Total 165,987,892         100.00  %         
Source:  NECA, Universal Service Fund 2006 Submission of 2005 Study Results  (October 1, 2006).
 
 
Table 7.3
Telephone Loops of Incumbent Local Exchange Carriers by Holding Company 
1
1
 Includes incumbent local exchange carriers' loops for holding companies with more than 35,000 loops.
Five Largest Holding Companies' Share of Loops
Chart 7.1
(As of December 31, 2004)
SBC
31.5%
BellSouth
13.2%
Sprint
4.4%
Verizon
31.6%
Qwest
8.9%
All Others
10.4%
 7 - 6
 
Table 7.3
(As of December 31, 2005)
Holding Companies Loops Percent of Loops
Verizon Communications Inc. 49,317,413         31.40  %         
AT&T, Inc. 49,265,385         31.37              
BellSouth Telecommunications, Inc. 20,703,775         13.18              
Qwest Communications International, Inc. 14,048,096         8.95              
Embarq Corporation 7,079,141         4.51              
Windstream Corporation 3,168,810         2.02              
CenturyTel, Inc. 2,194,202         1.40              
Citizens Communications Company 2,097,812         1.34              
Cincinnati Bell 833,013         0.53              
TDS Telecommunications Corporation 637,989         0.41              
Hawaiian Telecom Communications, Inc. 631,169         0.40              
Commonwealth Telephone Enterprises, Inc. 311,204         0.20              
Alaska Communications Systems 258,860         0.16              
Iowa Network Services, Inc. 250,067         0.16              
FairPoint Communications, Inc. 241,039         0.15              
Consolidated Communications, Inc. 228,842         0.15              
Madison River Telephone Company 171,711         0.11              
Rock Hill Telephone Company 142,014         0.09              
D&E Communications, Inc. 133,995         0.09              
Surewest Communications 125,742         0.08              
North State Communications Corporation 116,484         0.07              
CT Communications, Inc. 111,637         0.07              
Horry Telephone Cooperative, Inc. 91,435         0.06              
Hargray Communications Group, Inc. 74,319         0.05              
North Pittsburgh Telephone Company 71,992         0.05              
Virgin Island Telephone Company 68,956         0.04              
Guam Telephone Authority 65,044         0.04              
Matanuska Telephone Association, Inc. 61,130         0.04              
Famers Telephone Cooperative, Inc. (SC) 57,061         0.04              
Hickory Tech Corporation 55,213         0.04              
Lynch Interactive Corporation 53,146         0.03              
Pioneer Telephone Cooperative (OK) 53,036         0.03              
Ntelos, Inc. 44,419         0.03              
Golden West Telecommunications Cooperative, Inc. 42,907         0.03              
Atlantic Telephone Membership Corporation 42,429         0.03              
Guadalupe Valley Telephone Cooperative, Inc. 41,023         0.03              
SRT Services Corporation 38,847         0.02              
East Ascension Telephone Company, LLC 37,871         0.02              
Twin Lake Telephone Cooperative Corporation 37,425         0.02              
Skyline Telephone Membership Corporation 36,207         0.02              
Otelco Holding, LLC 36,050         0.02              
Ben Lomand 35,410         0.02              
All Other Companies 3,929,167         2.50              
  Total 157,041,487         100.00  %         
Source:  NECA, Universal Service Fund 2006 Submission of 2006 Study Results  (October 1, 2006).
 
 
Telephone Loops of Incumbent Local Exchange Carriers by Holding Company Continued - Continued 
1
1
 Includes incumbent local exchange carriers' loops for holding companies with more than 35,000 loops.
Five Largest Holding Companies' Share of Loops
Chart 7.1:  Continued
AT&T Inc.
31.4%
BellSouth
13.2%
Embarq
4.5%
Verizon
31.4%
Qwest
8.9%
All Others
10.6%
 7 - 7
Table 7.4
Additional Residential Lines
For Households with Telephone Service
(End-of-Year Data in Millions)
Wireline Loops 
1
Households Households Primary Non-Primary
with with Residential Residential
Residential Non- Total Telephone Wireless Lines Lines
Residential Loops  Service 
2
Only
3
87.7 38.5 126.2 85.4 85.4 2.3
90.0 40.6 130.6 87.4 87.4 2.6
92.2 42.9 135.1 88.4 88.4 3.9
95.9 42.5 138.4 89.4 89.4 6.5
99.3 43.0 142.3 91.0 91.0 8.3
101.8 45.2 147.0 93.0 93.0 8.8
105.1 47.2 152.3 93.7 93.7 11.4
108.1 50.4 158.5 94.2 94.2 13.9
111.1 54.3 165.4 95.1 95.1 16.0
114.7 58.2 172.9 96.5 96.5 18.2
117.1 62.6 179.8 98.0 98.0 19.1
122.7 63.5 186.2 99.1 99.1 23.6
126.4 65.8 192.2 100.2 100.2 26.2
127.3 62.8 190.1 102.2 1.2 101.0 26.3
120.5 64.6 185.1 104.0 1.8 102.2 18.4
2003 118.1 60.6 178.8 107.1 5.0 102.1 16.0
2004 113.9 59.2 173.1 106.4 6.3 100.1 13.8
2005 107.8 58.0 165.8 107.0 11.3 95.6 12.1
1
Loop counts provided by the National Exchange Carrier Association.  American Samoa, Guam, the Northern
Mariana Islands, Puerto Rico, and the U.S. Virgin Islands totals have been removed.  Total loops were divided
between residential and non-residential using the ratio of residential to non-residential access lines reported in
Industry Analysis and Technology Division, Wireline Competition Bureau, Statistics of Communications
Common Carriers .  Those totals also exclude Puerto Rico, but cover only the carriers that file ARMIS reports
(of which there are none for American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin
Islands).  Loop counts beginning in 1996 have been increased by estimated competitive local exchange carrier
lines from the Association for Local Telecommunications Services (now known as Comptel/ALTS) and the
report by the Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone
Competition:  Status as of June 30, 2006 (January 2007).  Beginning in 2001 a significant number of
households began to have wireless service.  The estimate of this amount for 2001 is from the November 2001
Currently Population Survey.  Beginning in 2002, the numbers of primary and non-primary residential lines
for households with telephones was estimated using the ratio of primary (Lifeline and Non-Lifeline) to non-
primary residential access lines reported in Table 2.4 of Statistics of Communications Common Carriers,
and the estimate of wireless-only is based on the difference between households with phone service and
estimated primary residential lines.
2
Current Population Survey  (U.S. Department of Commerce, U.S. Census Bureau).
3
Because the number of households with wireless only is calculated as a difference between households with
telephone service and primary residential lines, this estimate may include some VoIP customers not included
in the Local Telephone Competition report.
       Source:  FCC staff estimates.
Year
1988
1989
1990
1991
1992
1993
1994
1995
2000
2001
2002
1996
1997
1998
1999
 7 - 8
Table 7.5
Number of Payphones Owned by LECs and Independent Operators 
(As of March 31, 2005)
 RBOC Territories All Other LEC Territories Grand
State LEC-Owned Independent LEC-Owned Independent LEC-Owned Independent Total
Alabama 0  7,435  1,264     767     1,264    8,202    9,466     
Alaska 0  0  2,416     1,275     2,416    1,275    3,691     
Arizona 1,861  20,154  735     1,206     2,596    21,360    23,956     
Arkansas 7,040  1,002  1,834     889     8,874    1,891    10,765     
California 88,125  82,380  1,336     656     89,461    83,036    172,497     
Colorado 3,280  14,051  218     520     3,498    14,571    18,069     
Connecticut 13,402  2,488  130     3     13,532    2,491    16,023     
Delaware 2,848  739  0     0     2,848    739    3,587     
District of Columbia 4,543  856  0     0     4,543    856    5,399     
Florida 9,682  32,007  6,616     5,767     16,298    37,774    54,072     
Georgia 0  17,111  2,895     2,507     2,895    19,618    22,513     
Hawaii 5,454  551  0     0     5,454    551    6,005     
Idaho 999  2,750  244     131     1,243    2,881    4,124     
Illinois 39,532  18,080  662     821     40,194    18,901    59,095     
Indiana 17,270  5,840  1,558     888     18,828    6,728    25,556     
Iowa 814  5,730  680     854     1,494    6,584    8,078     
Kansas 6,175  1,725  632     566     6,807    2,291    9,098     
Kentucky 0  5,819  2,911     3,295     2,911    9,114    12,025     
Louisiana 0  9,622  282     814     282    10,436    10,718     
Maine 3,792  439  32     372     3,824    811    4,635     
Maryland 21,073  6,455  0     8     21,073    6,463    27,536     
Massachusetts 22,493  8,262  5     2     22,498    8,264    30,762     
Michigan 29,070  11,490  670     475     29,740    11,965    41,705     
Minnesota 1,601  10,186  1,759     937     3,360    11,123    14,483     
Mississippi 110  5,674  133     178     243    5,852    6,095     
Missouri 12,904  3,939  2,924     2,695     15,828    6,634    22,462     
Montana 707  2,342  447     482     1,154    2,824    3,978     
Nebraska 568  2,926  2,966     689     3,534    3,615    7,149     
Nevada 2,109  1,285  2,642     6,842     4,751    8,127    12,878     
New Hampshire 3,524  1,308  140     34     3,664    1,342    5,006     
New Jersey 39,126  14,422  1,185     146     40,311    14,568    54,879     
New Mexico 1,004  5,608  204     670     1,208    6,278    7,486     
New York 78,851  38,765  7,757     1,760     86,608    40,525    127,133     
North Carolina 1,072  10,250  5,779     7,356     6,851    17,606    24,457     
North Dakota 229  721  96     153     325    874    1,199     
Ohio 27,555  8,068  7,555     3,284     35,110    11,352    46,462     
Oklahoma 9,785  3,306  1,281     654     11,066    3,960    15,026     
Oregon 2,834  9,860  595     918     3,429    10,778    14,207     
Pennsylvania 29,690  14,940  5,915     2,273     35,605    17,213    52,818     
Rhode Island 3,001  2,118  0     0     3,001    2,118    5,119     
South Carolina 828  9,167  1,251     1,851     2,079    11,018    13,097     
South Dakota 559  1,636  299     184     858    1,820    2,678     
Tennessee 0  10,695  1,962     1,572     1,962    12,267    14,229     
Texas 46,671  34,897  1,905     4,112     48,576    39,009    87,585     
Utah 1,092  5,979  182     461     1,274    6,440    7,714     
Vermont 1,878  263  44     147     1,922    410    2,332     
Virginia 21,139  9,564  1,862     1,182     23,001    10,746    33,747     
Washington 4,851  17,134  448     1,287     5,299    18,421    23,720     
West Virginia 5,478  898  622     435     6,100    1,333    7,433     
Wisconsin 11,996  3,747  3,604     1,401     15,600    5,148    20,748     
Wyoming 758  1,700  138     84     896    1,784    2,680     
    Totals 587,373  486,384  78,815     63,603     666,188    549,987    1,216,175     
Source:  Raw data provided by National Payphone Clearinghouse.  Rollups performed by the Industry Analysis and Technology Division 
staff, Wireline Competition Bureau.
Statewide
 7 - 9
Table 7.5
Number of Payphones Owned by LECs and Independent Operators - Continued
(As of March 31, 2006)
 RBOC Territories All Other LEC Territories Grand
State LEC-Owned Independent LEC-Owned Independent LEC-Owned Independent Total
Alabama 0  7,250  120     755     120    8,005    8,125     
Alaska 0  0  2,333     1,158     2,333    1,158    3,491     
Arizona 804  18,266  734     1,179     1,538    19,445    20,983     
Arkansas 4,656  957  406     279     5,062    1,236    6,298     
California 64,191  76,984  980     1,113     65,171    78,097    143,268     
Colorado 1,383  11,993  29     87     1,412    12,080    13,492     
Connecticut 8,797  2,134  0     4     8,797    2,138    10,935     
Delaware 1,977  1,390  0     0     1,977    1,390    3,367     
District of Columbia 4,265  777  0     0     4,265    777    5,042     
Florida 5,938  30,908  5,518     5,119     11,456    36,027    47,483     
Georgia 0  15,500  380     1,099     380    16,599    16,979     
Hawaii 0  0  5,315     475     5,315    475    5,790     
Idaho 639  2,296  227     100     866    2,396    3,262     
Illinois 25,359  16,046  633     1,301     25,992    17,347    43,339     
Indiana 12,150  5,641  1,413     836     13,563    6,477    20,040     
Iowa 138  4,919  587     814     725    5,733    6,458     
Kansas 3,976  1,627  531     508     4,507    2,135    6,642     
Kentucky 0  5,790  1,036     1,359     1,036    7,149    8,185     
Louisiana 0  7,855  0     124     0    7,979    7,979     
Maine 3,430  613  80     409     3,510    1,022    4,532     
Maryland 17,153  7,623  0     8     17,153    7,631    24,784     
Massachusetts 20,168  8,679  0     0     20,168    8,679    28,847     
Michigan 18,498  10,631  230     186     18,728    10,817    29,545     
Minnesota 354  8,443  1,408     848     1,762    9,291    11,053     
Mississippi 111  5,124  39     115     150    5,239    5,389     
Missouri 7,768  3,786  1,030     1,427     8,798    5,213    14,011     
Montana 254  1,968  321     300     575    2,268    2,843     
Nebraska 102  2,064  388     375     490    2,439    2,929     
Nevada 1,091  1,244  2,375     5,873     3,466    7,117    10,583     
New Hampshire 3,252  1,255  132     55     3,384    1,310    4,694     
New Jersey 34,272  15,324  1,038     96     35,310    15,420    50,730     
New Mexico 263  5,065  204     697     467    5,762    6,229     
New York 78,568  34,449  7,063     1,368     85,631    35,817    121,448     
North Carolina 972  9,575  4,972     6,609     5,944    16,184    22,128     
North Dakota 23  637  96     157     119    794    913     
Ohio 17,938  7,613  5,128     2,206     23,066    9,819    32,885     
Oklahoma 6,264  2,918  977     609     7,241    3,527    10,768     
Oregon 1,173  9,528  387     631     1,560    10,159    11,719     
Pennsylvania 27,092  14,188  5,345     1,633     32,437    15,821    48,258     
Rhode Island 2,548  1,857  0     0     2,548    1,857    4,405     
South Carolina 763  8,443  966     1,337     1,729    9,780    11,509     
South Dakota 124  1,459  294     188     418    1,647    2,065     
Tennessee 0  10,437  1,637     1,626     1,637    12,063    13,700     
Texas 31,752  33,762  1,121     3,321     32,873    37,083    69,956     
Utah 465  4,903  182     351     647    5,254    5,901     
Vermont 1,783  270  45     137     1,828    407    2,235     
Virginia 18,573  9,578  1,763     1,155     20,336    10,733    31,069     
Washington 3,062  15,272  261     399     3,323    15,671    18,994     
West Virginia 4,987  1,003  580     390     5,567    1,393    6,960     
Wisconsin 7,491  3,497  741     766     8,232    4,263    12,495     
Wyoming 82  1,742  152     91     234    1,833    2,067     
    Totals 444,649  453,283  59,197     49,673     503,846    502,956    1,006,802     
Source:  Raw data provided by National Payphone Clearinghouse.  Rollups performed by the Industry Analysis and Technology Division 
staff, Wireline Competition Bureau.
Statewide
 7 - 10
  All Other LECs' Territories  Grand
Year LEC-Owned Independent Total LEC Owned Independent Total LEC Owned Independent Total
1997   1,399,600 
1
NA NA NA NA NA NA NA   2,086,540 
2
1998   1,381,800 
1
NA NA NA NA NA NA NA   2,100,558 
2
1999 1,305,463 572,503 1,877,966  80,491 163,069 243,560 1,385,954 735,572 2,121,526
2000 1,244,535 633,022 1,877,557 63,808 122,353 186,161 1,308,343 755,375 2,063,718
2001 1,131,377 571,778 1,703,155 88,399 128,086 216,485 1,219,776 699,864 1,919,640
2002   964,999 531,801 1,496,800 95,639 118,622 214,261 1,060,638 650,423 1,711,061
2003   854,295 464,479 1,318,774 75,885 101,127 177,012 930,180 565,606 1,495,786
2004   737,146 455,506 1,192,652 78,642 73,705 152,347 815,788 529,211 1,344,999
2005   587,373 486,384 1,073,757 78,815 63,603 142,418 666,188 549,987 1,216,175
2006   444,649 453,283 897,932 59,197 49,673 108,870 503,846 502,956 1,006,802
NA - Not Available.
Table 7.6
Number of Payphones Over Time
(As of March 31 of Each Year)
Source:  Unless otherwise noted, raw data provided by National Payphone Clearinghouse.  Rollups performed by the Industry Analysis and Technology Division 
staff, Wireline Competition Bureau.
1
 See  RBOC/GTE/SNET Payphone Coalition Comments on Remand Issues in CC Docket No. 96-128, Report of Arthur Andersen on Per-Call Compensation, Carl R. 
Geppert at 10 (July 13, 1998).
2
 See  Letter from Denny Reuss, NPC Product Manager, to Craig Stroup, Federal Communications Commission, CC Docket 96-128 at 1 (Filed October 22, 1998.  The 
1997 data point is as of June 30, 1997.)  
RBOCs' Territories Total
 7 - 11
 8 - 1 
8 Local Telephone Competition 
 
 For most of the past century, households and businesses had no choice in 
selecting their local telephone company.  In the 1980s, competitive access providers 
(CAPs) began to market to business customers access services provided over CAPs 
wired networks.  To some extent they also carried local telephone calls among their 
customers.  In the 1990s, some CAPs and other companies, including affiliates of cable 
television companies and local service divisions of long distance companies, began to 
offer local telephone services to a broader range of customers.  Companies with 
operations in larger cities added operations in smaller cities, where the typical customer is 
more likely to be a small or medium-sized business than a large business, and some new 
companies focused on smaller cities from the beginning.  The newer competitors are 
often called competitive local exchange carriers (CLECs), although the terms CAPs and 
CLECs are sometimes used interchangeably. 
 
 The Telecommunications Act of 1996 (1996 Act) contemplated three vehicles for 
competitors to enter local telephone service markets.  First, CLECs may resell the 
services of incumbent local exchange carriers (LECs).  Second, CLECs may make use of 
incumbent LEC facilities, for example, by leasing incumbent LEC unbundled network 
elements (UNEs) loops and transport.  Third, CLECs may build the complete set of 
facilities they need to compete.  Individual competitors have used various combinations 
of these methods at different times. 
 
1. CLEC Share of Switched Access Lines 
 
All incumbent LECs and CLECs were required to report to the Commission basic 
information about their local telephone service, as of June 30, 2005.  The FCC previously 
(i.e., as of December 31, 1999 and each succeeding June 30 and December 31 through 
the end of 2004) collected data from carriers with at least 10,000 switched access lines in 
service in a particular state.  Small carriers, many of whom serve rural areas with 
relatively small populations, were therefore underrepresented in the earlier data.
1
       
 
Table 8.1 and the associated chart show the number of incumbent LEC and CLEC 
end-user switched access lines from December 1999 through June 2006.  Table 8.2 and 
the associated chart show the relative shares of the residential end-user switched access 
lines provisioned by incumbent LECs and CLECs from December 1999 through June 
2006.    
 
 
 
 
                                                 
1
 As of December, 2005, filers with fewer than 10,000 switched access lines in a state (including entities 
that previously filed on a voluntary basis) reported about 4.5 million lines (about 2.0 million incumbent 
LEC lines and about 2.5 million CLEC lines).    
    
 8 - 2 
Table 8.3 shows the percentages of CLEC end-user lines that were provisioned 
over their own facilities and those lines acquired from unaffiliated carriers from 
December 1999 through June 2006.  Chart 8.3 displays that information graphically  
for June 2006.  Data reported by incumbent LECs, presented in Table 8.4, show the lines 
that incumbent LECs provided to other carriers as UNE loops provided with incumbent 
LEC switching (including the UNE-platform), UNE loops provided without switching, 
and resale.  Chart 8.4 shows the trend, from December 1997 through June 2006, of 
incumbent LEC total switched access lines and the percentages provided to other carriers. 
 
 Table 8.5 shows incumbent LEC and CLEC end-user switched access lines by 
state, and the CLEC share by state, at the end of June 2006.  Table 8.6 presents historical 
data on CLEC share by state. 
 
 
2.  CLEC Share of Local Telephone Service Revenues 
 
 As discussed in Section 15, the Commission has been collecting revenue data 
from local exchange carriers since 1993.  Table 8.7 shows CLEC and incumbent LEC 
local telephone service revenues from 1993 through 2004.  Chart 8.5 shows the 
incumbent LEC and CLEC shares of local service revenues from 1998 through 2004. 
 
 
3.  Ported Telephone Numbers 
 
When telecommunications customers switch service providers, they have the 
option of taking their local telephone number with them.  This is called porting.  All 
ported numbers reside in one of seven regional databases.  These databases contain 
several elements of information about ported numbers, including identifiers for the old 
and new carriers, and the date the number was ported.  The porting databases are 
overseen by the local number portability administrator, currently NeuStar, Inc.  NeuStar 
provides the FCC with two sets of information on ported numbers. 
 
The first set of information is a rollup of the quantity of telephone numbers that 
were ported each month.  This information forms the basis for Table 8.8.  Unlike Tables 
8.9 and 8.10 (see footnote 2 in Table 8.10), these figures include instances where the 
customer ports the number back to the original carrier.   
 
The second set of information that the FCC receives from NeuStar on a monthly 
basis is a current list of all ported numbers where the customer changed carriers.  For 
each number, the list includes identifiers for the old and new carriers for that number, and 
the date the number was ported.  In order to protect consumer privacy, the Commission 
receives the information in a manner that prevents it from determining if any particular 
telephone number has been ported.  This information forms the basis for Tables 8.9 and 
8.10. 
 
 
 8 - 3 
Table 8.9 shows the quantities of ports in the porting databases at the end of each 
quarter. The ports are broken out by service type: from landline to landline, landline to 
mobile, mobile to mobile, or mobile to landline.  Table 8.10 examines the ports in the 
databases as of June 30, 2006.  It shows, by service type, when each number in the 
database was ported. 
 
Date ILEC Lines CLEC Lines Total
Dec 1999 181,202,853 8,194,243 189,397,096 4.3 %
Jun 2000 179,648,725 11,557,381 191,206,106 6.0
Dec 2000 177,561,022 14,871,409 192,432,431 7.7
Jun 2001 174,752,275 17,274,727 192,027,002 9.0
Dec 2001 171,917,359 19,653,441 191,570,800  10.3
Jun 2002 167,330,006 21,644,928 188,974,934 11.5
Dec 2002 164,386,452 24,863,691 189,250,143 13.1
Jun 2003 158,274,538 26,985,345 185,259,883 14.6
Dec 2003 153,157,843 29,775,438 182,933,281 16.3
Jun 2004 147,993,218 32,033,915 180,027,133 17.8
Dec 2004 144,809,899 32,880,812 177,690,711 18.5
Jun 2005 143,757,708 33,975,336 177,733,044 19.1
Dec 2005 143,773,101 31,387,839 175,160,940 17.9
Jun 2006 142,249,668 29,782,241 172,031,909 17.3
 
  
   
     
(Lines in Millions)
CLEC Share
Table 8.1
End-User Switched Access Lines Reported
Only LECs with at least 10,000 lines in a state were required to report through December 2004.   
Beginning with the June 2005 data all LECs are required to report.  Some data have been revised for 
June and December 2005.
End-User Switched Access Lines Reported
Chart 8.1
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone 
Competition:  Status as of June 30, 2006  (January 2007).
0
20
40
60
80
100
120
140
160
180
200
ILEC Lines CLEC lines
CLEC lines
8.2  11.6  14.9  17.3  19.7  21.6  24.9  27.0  29.8  32.0  32.9  34.0  31.4  29.8
ILEC Lines
181.2 179.6 177.6 174.8 171.9 167.3 164.4 158.3 153.2 148.0 144.8 143.8 143.8 142.2 
Dec  
1999
Jun 
2000
Dec 
2000
Jun 
2001
Dec 
2001
Jun 
2002
Dec 
2002
Jun 
2003
Dec 
2003
Jun 
2004
Dec 
2004
Jun 
2005
Dec 
2005
Jun 
2006
 8 - 5  
Dec 1999 139,694,481 41,508,372 77.1 % 3,368,702   4,825,541 41.1 %
Jun 2000 140,566,144 39,082,581 78.2 4,579,501   6,977,880 39.6
Dec 2000 138,824,111 38,736,911 78.2 6,620,471   8,250,938 44.5
Jun 2001 134,530,884 40,221,391 77.0 7,793,071   9,481,656 45.1
Dec 2001 133,320,119 38,597,240  77.5 9,489,049   10,164,392 48.3
Jun 2002 130,937,328 36,392,678 78.3 11,080,676   10,564,252 51.2
Dec 2002 127,494,698 36,891,754 77.6 14,608,495   10,255,196 58.8
Jun 2003 122,573,530 35,701,008 77.4 16,770,561   10,214,784 62.1
Dec 2003 118,658,867 34,498,976 77.5 18,702,229   11,073,209 62.8
Jun 2004 114,533,368 33,459,850 77.4 20,871,756   11,162,159 65.2
Dec 2004 112,054,420 32,755,479 77.4 19,811,711   13,069,101 60.3
Jun 2005 95,315,689 48,442,019 66.3 16,338,117   17,637,219 48.1
Dec 2005 94,392,526 49,380,575 65.7 13,873,331   17,514,508 44.2
Jun 2006 92,414,935 49,834,733
65.0
12,372,950   17,409,291 41.5
1 
Included small business lines through December 2004.  
2 
Excluded small business lines through December 2004.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition:  Status as 
of June 30, 2006  (January 2007).
Table 8.2
End-User Switched Access Lines by Customer Type
Reporting CLECsReporting ILECs
Date
Percent of Lines That Serve Residential Customers 
1
Chart 8.2
Only LECs with at least 10,000 lines in a state were required to report through December 2004.  Beginning with the June 
2005 data all LECs are required to report.  Some data have been revised for June and December 2005.
% Residential
Business 
2
Business 
2
Residential 
1
% Residential
Residential 
1
0%
10%
20%
30%
40%
50%
60%
70%
80%
ILECs CLECs
ILECs 77.1% 78.2% 78.2% 77.0% 77.5% 78.3% 77.6% 77.4% 77.5% 77.4% 77.4% 66.3% 65.7% 65.0%
CLECs 41.1% 39.6% 44.5% 45.1% 48.3% 51.2% 58.8% 62.1% 62.8% 65.2% 60.3% 48.1% 44.2% 41.5%
Dec 
1999
Jun 
2000
Dec 
2000
Jun 
2001
Dec 
2001
Jun 
2002
Dec 
2002
Jun 
2003
Dec 
2003
Jun 
2004
Dec 
2004
Jun 
2005
Dec 
2005
Jun 
2006
 8 - 6  
CLEC-
Owned
81    8,194 3,513 1,959 2,723 42.9% 23.9% 33.2%
78    11,557 4,315 3,201 4,042 37.3   27.7   35.0   
89    14,871 4,114 5,540 5,217 27.7   37.3   35.1   
91    17,275 3,919 7,580 5,776 22.7   43.9   33.4   
94    19,653 4,250 9,332 6,072 21.6   47.5   30.9   
96    21,645 4,478 10,930 6,236 20.7   50.5   28.8   
112    24,864 4,677 13,709 6,479 18.8   55.1   26.1   
125    26,985 4,887 15,728 6,370 18.1   58.3   23.6   
136    29,775 4,842 17,888 7,045 16.3   60.1   23.7   
137    32,034 4,927 19,624 7,483 15.4   61.3   23.4   
149    32,881 5,417 18,961 8,503 16.5   57.7   25.9   
326    33,975 5,826 19,025 9,124 17.1   56.0   26.9   
382    31,388 6,704 14,521 10,163 21.4   46.3   32.4   
399    29,782 6,549 12,546 10,687 22.0   42.1   35.9   
2
  Lines provided over CLEC-owned "last-mile" facilities.
UNEs
 1
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition:  
Status as of June 30, 2006  (January 2007).
Lines 
2
Resold UNEs
CLEC-
Owned
Dec 2000
Jun 2001
Dec 2001
Dec 2003
Date
CLECs 
Reporting
Total End-
User Lines Resold 
Lines
Chart 8.3
Competitive Local Exchange Carriers' End-User Lines
Dec 2004
Jun 2004
Jun 2006
Only LECs with at least 10,000 lines in a state were required to report through December 2004.  Beginning with the June 
2005 data all LECs are required to report.  Figures may not add to totals due to rounding.  Some data have been revised 
for June and December 2005.
1 
 Includes unbundled network element (UNE) loops leased from an unaffiliated carrier on a stand-alone basis and also 
UNE loops leased in combination with UNE switching or any other unbundled network element.
Jun 2005
Dec 2005
Table 8.3
Reporting Competitive Local Exchange Carriers 
(End-User Switched Access Lines in Thousands)
Jun 2003
Dec 1999
Percent
Jun 2000
Dec 2002
Jun 2002
Acquired from Other 
Carriers
Resold
22.0%
UNEs
42.1%
CLEC-Owned
35.9%
 8 - 7  
 
Dec 1997     9 159,008 157,132 133     1,876 1.2 %
Jun 1998     8 161,810 159,118 244    2,692 1.7
Dec 1998     7 164,614 161,191   361   3,423 2.1
Jun 1999     7 167,177 162,909 685  
  4,268
2.6
Dec 1999 168    187,190 181,203 1,493    5,987 3.2
Jun 2000 159 188,058 179,649 3,312    8,409 4.5
Dec 2000 166 188,223 177,561 5,274    10,662 5.7
Jun  2001 156 187,092 174,752 7,922    12,340 6.6
Dec 2001 164 185,391 171,917 9,460    13,474 7.3
Jun 2002 166 182,345 167,330 11,540    15,015 8.2
Dec 2002 174 181,616 164,386 14,487    17,229 9.5
Jun 2003 181 177,770 158,275 17,263    19,495 11.0
Dec 2003 185 174,453 153,158 19,463    21,296 12.2
Jun 2004 185 171,050 147,993 21,458    23,057 13.5
Dec 2004 190 167,063 144,810 20,763  
  22,253
13.3
Jun 2005 757 164,449 143,758 18,895    20,691 12.6
Dec 2005 807 160,881 143,773 15,315    17,108 10.6
Jun 2006 804 156,828 142,250 12,856    14,579 9.3
 
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Local Telephone Competition:  Status as of June 
30, 2006  (January 2007).
Total UNEs
4,217 16,546   
15,176   
2,743    
Without 
Switching
With 
Switching
1,723    4,413 8,443   
4,227 13,036   
4,300 14,596   
1,793    
1
 Data prior to December 1999 are from Common Carrier Bureau voluntary surveys.  Only LECs with at least 10,000 lines in a state 
were required to report data for December 1999 through December 2004, after which all LECs are required to report.
Figures may not add to totals due to rounding.  Some data for December 2005 have been revised.
1,833    4,287
4,322 17,136   1,600    
1,490    
4,469 10,846   
Chart 8.4
ILEC Lines and the Percent Provided to Other Carriers
Dec 1997 - Jun 1999 Dec 1999 - Jun 2006
Voluntary Reporting Mandatory Reporting
3,679 5,781   
4,259 10,227   
7,478   3,475    4,061
4,417    
4,494    1,004 489   
3,161 4,761   
1,696 1,616   
2,436 2,838   
3,583    
1,743    
2,448    
End-User 
Lines
Resold 
Lines
3,062    
5,098    
1,796    
2,232    
4,014    
5,388    
Table 8.4
 Reporting Incumbent Local Exchange Carriers
(Switched Access Lines in Thousands)
UNEs
Provided to Other Carriers
Percent of 
Total Lines
Total UNEs 
& Resold 
Lines
Date 
1
ILECs 
Reporting
Total 
Lines
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Dec
1997
Jun
1998
Dec
1998
Jun
1999
Dec
1999
Jun
2000
Dec
2000
Jun 
2001
Dec
2001
Jun
2002
Dec
2002
Jun
2003
Dec
2003
Jun
2004
Dec
2004
Jun
2005
Dec
2005
Jun
2006
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Total ILEC Lines Percent of Total Lines Provided to Other Carriers
 8 - 8  
State ILECs CLECs Total
Alabama 1,978,871      365,944 2,344,815     16 %
Alaska 324,892      116,432 441,324     26
American Samoa 11,008      0 11,008     0
Arizona 2,226,531      970,453 3,196,984     30
Arkansas 1,192,839      162,525 1,355,364     12
California 19,479,382      2,900,279 22,379,661     13
Colorado 2,276,358      528,727 2,805,085     19
Connecticut 1,928,048      261,681 2,189,729     12
Delaware 467,676      101,513 569,189     18
District of Columbia 891,832      144,600 1,036,432     14
Florida 9,013,194      1,617,538 10,630,732     15
Georgia 3,843,615      909,236 4,752,851     19
Guam 67,721      0 67,721     0
Hawaii 608,403      60,696 669,099     9
Idaho 666,382      80,698 747,080     11
Illinois 6,354,337      1,139,239 7,493,576     15
Indiana 3,079,875      338,113 3,417,988     10
Iowa 1,302,210      229,603 1,531,813     15
Kansas 1,100,313      346,533 1,446,846     24
Kentucky 1,732,044      337,265 2,069,309     16
Louisiana 1,800,472      394,199 2,194,671     18
Maine 692,360      134,610 826,970     16
Maryland 3,166,012      590,557 3,756,569     16
Massachusetts 3,075,544      978,953 4,054,497     24
Michigan 4,490,783      992,598 5,483,381     18
Minnesota 2,273,378      675,623 2,949,001     23
Mississippi 1,089,448      161,058 1,250,506     13
Missouri 2,841,990      425,768 3,267,758     13
Montana 460,058      61,726 521,784     12
Nebraska 661,351      244,058 905,409     27
Nevada 1,233,166      245,553 1,478,719     17
New Hampshire 624,466      195,539 820,005     24
New Jersey 4,784,134      993,630 5,777,764     17
New Mexico 865,466      76,512 941,978     8
New York 8,285,874      3,043,468 11,329,342     27
North Carolina 4,059,971      695,429 4,755,400     15
North Dakota 271,969      68,351 340,320     20
Northern Mariana Islands 21,313      0 21,313     0
Ohio 5,367,588      951,812 6,319,400     15
Oklahoma 1,472,856      361,715 1,834,571     20
Oregon 1,627,341      305,519 1,932,860     16
Pennsylvania 6,385,263      1,572,224 7,957,487     20
Puerto Rico 1,035,002      * *     *
Rhode Island 362,993      275,526 638,519     43
South Carolina 1,907,925      329,943 2,237,868     15
South Dakota 279,589      135,275 414,864     33
Tennessee 2,675,649      575,957 3,251,606     18
Texas 9,958,460      1,905,521 11,863,981     16
Utah 915,178      281,796 1,196,974     24
Vermont 369,731      49,094 418,825     12
Virgin Islands 69,272      * * *
Virginia 3,818,918      1,046,894 4,865,812     22
Washington 2,993,977      506,360 3,500,337     14
West Virginia 852,152      117,009 969,161     12
Wisconsin 2,669,652      611,912 3,281,564     19
Wyoming 244,836      39,443 284,279     14
  Nationwide 142,249,668      29,782,241 172,031,909     17 %
* Data withheld to maintain firm confidentiality.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  Local Telephone Competition:  
Status as of June 30, 2006  (January 2007).
CLEC Share
Table 8.5
End-User Switched Access Lines Served by Reporting Local Exchange Carriers
(As of June 30, 2006)
 8 - 9
 
2005
Alabama 3 % 4 % 5 % 5 % 5 % 9 % 11 % 13 % 15 % 16 % 16 15 % 16 %
Alaska ***** *******2
American Samoa NA NA NA NA NA NA NA NA NA NA 0 0 0
Arizona 55791 1216225252733
Arkansas ***** 10*11113112
California 56789 1113567833
Colorado 7 9 10 13 14  15 16 17 17 16 17 20 19
Connecticut 56779 9101011314112
Delaware * * 0 0 * * 9 12 16 16 20 20 18
District of Columbia 7 9 12 13 16 14 16 17 19 19 20 17 14
Florida 667791313141616161715
Georgia 6 8 10 11 13 15 17 18 19 20 21 18 19
Guam NA NA NA NA NA NA NA NA NA NA NA 0 0
Hawaii * 0 ********679
Idaho 0 *****567710101
Illinois 7 9 13 15 17 19 19 20 21 22 20 15 15
Indiana 4555789131413141010
Iowa 9 11 11 12 12 13 13 13 14 14 14 14 15
Kansas 5789 7222225224
Kentucky * 3 * * * 4 5 8 11 11 14 15 16
Louisiana 2344579101214191718
Maine ******8 4820206
Maryland 346467101416118181
Massachusetts 8 11 12 15 16 16 18 21 23 25 25 25 24
Michigan 5 6 9 13 18 21 22 25 26 26 25 19 18
Minnesota 7 9 11 13 14 17 17 19 20 21 21 24 23
Mississippi * 44326791010141213
Missouri 5667810101 33
Montana ******344481012
Nebraska * * * 12 16 18 20 21 22 25 25 26 27
Nevada * * 10 * * 11 9 10 11 11 13 13 17
New Hampshire * 6 8 10 13 14 16 17 20 23 25 25 24
New Jersey 45456059 117
New Mexico ********88878
New York 16 20 23 25 25 24 27 28 30 30 30 31 27
North Carolina 44666899113131515
North Dakota *******88720920
Northern Mariana Isl. NA NA NA NA NA NA NA NA NA NA NA 0 0
Ohio 4445791141515151515
Oklahoma * 5 6 8 10 11 11 14 13 16 18 18 20
Oregon 3457798121316131916
Pennsylvania 8 10 13 14 15 16 17 19 20 22 23 23 20
Puerto Rico *************
Rhode Island * * 10 16 18 21 25 28 32 35 40 42 43
South Carolina * 4435799101131315
South Dakota ******1418**0 3
Tennessee 6688790 1415161718
Texas 7 13 14 16 16 17 18 18 19 19 19 16 16
Utah 6 10 11 13 13 15 19 20 23 24 23 22 24
Vermont **********1411
Virgin Islands 0000000000***
Virginia 5 7 9 11 12 12 14 17 20 21 21 22 22
Washington 56689101011314141414
West Virginia ********* 222
Wisconsin 7 8 9 11 12 13 15 18 19 18 19 18 19
Wyoming **********11214
  Nationwide 6 % 8 % 9 % 10 % 11 % 13 % 15 % 16 % 18 % 18 % 19 % 18 % 17 %
  
 
* Data withheld to maintain firm confidentiality.  NA is an abbreviation for not applicable.  Some data have been revised for June and December 2005.
Jun DecJunJun Dec
State
Jun Dec
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  Local Telephone Competition:  Status as of June 30, 2006  (January 2007).
Jun
Dec Jun Jun DecDec
Only LECs with at least 10,000 lines in a state were required to report through December 2004.  Beginning with the June 2005 data all LECs are required to report.
Table 8.6
Competitive Local Exchange Carrier Share of End-User Switched Access Lines
2003200220012000 20062004
 8 - 10  
TRS Data TRS & USF Data FCC Form 499 Data
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Number of Local Competitors 
1
RBOCs & Other Incumbent LECs 1,281 1,347 1,347 1,376 1,410 1,348 1,318 1,335 1,335 1,309 1,301 1,270
CAPs & CLECs 20 30 57 94 129 212 298 479 511 542 601 690
Local Resellers, Shared Tenant,
    Private Carriers, & Other Local NA NA NA 25 18 64 96 128 158 186 172 228
All Other Carriers Reporting 
    Local Exchange Service Revenues NA NA NA 74 109 133 143 229 168 176 179 186
    Total 
2
1,301 1,377 1,404 1,569 1,666 1,757 1,855 2,171 2,172 2,213 2,253 2,374
Local Service Revenues 
3
Incumbent LECs
Bell Operating Companies 
4
$58,838 $61,415 $65,485 $70,290 $68,028 $69,801 $76,586 $93,135 $93,388 $91,158 $85,558 $82,555
Other Incumbent LECs 
4
20,894 22,507 24,269 24,899 24,960 26,989 26,084 15,166 17,490 17,590 18,141 18,326
    Total 
5
79,732 83,922 89,754 95,189 92,988 96,790 102,670 108,301 110,879 108,749 103,699 100,881
Local Service Competitors
CAPs & CLECs 174 269 595 949 1,556 2,393 4,505 7,552 10,629 10,001 12,373 12,363
Local Resellers, Shared Tenant,
    Private Carriers, & Other Local NA NA NA NA 224 329 522 914 1,395 1,644 943 1,405
All Other Filers (Local Exchange
    Service Revenues Only) 
5
46 32 56 59 381 809 1,319 2,028 2,796 3,337 4,979 5,136
    Total 220 301 651 1,008 2,161 3,530 6,347 10,494 14,820 14,982 18,295 18,904
         Total $79,952 $84,224 $90,405 $96,197 $95,149 $100,320 $109,016 $118,795 $125,698 $123,730 $121,994 $119,785
Share of Local Service Revenues
Incumbent LECs
Bell Operating Companies 73.6% 72.9% 72.4% 73.1% 71.5% 69.6% 70.3% 78.4% 74.3% 73.7% 70.1% 68.9%
Other Incumbent LECs 26.1% 26.7% 26.8% 25.9% 26.2% 26.9% 23.9% 12.8% 13.9% 14.2% 14.9% 15.3%
    Total 99.7% 99.6% 99.3% 99.0% 97.7% 96.5% 94.2% 91.2% 88.2% 87.9% 85.0% 84.2%
Local Service Competitors
CAPs & CLECs 0.2% 0.3% 0.7% 1.0% 1.6% 2.4% 4.1% 6.4% 8.5% 8.1% 10.1% 10.3%
Local Resellers, Shared Tenant,
    Private Carriers, & Other Local NA NA NA NA 0.2% 0.3% 0.5% 0.8% 1.1% 1.3% 0.8% 1.2%
    Providers
All Other Filers 0.1% 0.0% 0.1% 0.1% 0.4% 0.8% 1.2% 1.7% 2.2% 2.7% 4.1% 4.3%
    Total 0.3% 0.4% 0.7% 1.0% 2.3% 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8%
Total Telecommunications Revenues 
(Including Payphone, Mobile, & Toll Service)
Incumbent LECs 
4
$95,228 $98,431 $102,820 $107,905 $105,154 $108,234 $112,216 $116,158 $117,885 $114,999 $109,480 $105,496
Local Competitors 191 274 637 1,012 2,481 4,034 6,508 10,945 14,781 15,309 16,857 18,215
Ratio of ILEC Total Telecommunications 498 : 1  351 : 1  165 : 1  107 : 1  42 : 1  27 : 1  17 : 1  11 : 1  8 : 1  8 : 1  6 : 1  6 : 1  
  Revenues to Local Competitor 
  Total Telecommunications Revenues
See notes on following page.
Table 8.7
Chart 8.5
ILEC and New Local Competitor Share of Local Service Revenue
Nationwide Local Service Revenues and New Competitors' Share  
1
(Dollar Amounts Shown in Millions)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
ILEC Share 96.5% 94.2% 91.2% 88.2% 87.9% 85.0% 84.2%
New Competitor Share 3.5% 5.8% 8.8% 11.8% 12.1% 15.0% 15.8%
1998 1999 2000 2001 2002 2003 2004
8 - 11
Notes to Table 8.7.
 NA - Not available.
 
1 
Counts for incumbent LECs, CLECs, CAPs, local resellers, shared tenant service providers, private carriers and other local 
   service providers are based on the numbers of filers actually reporting revenues.  The category All Other Filers includes 
   payphone, mobile service, and toll providers that reported local exchange service revenues.  Non-incumbent LEC affiliates 
   of incumbent LECs are classified as local service competitors, not as incumbent LECs.
 
2  
The total number of local service providers shown in Table 8.7 differs from the total fixed local service providers shown in 
   Table 15.3 because the number shown in Table 8.7 includes filers that self identify as mobile or toll providers, but that report 
   some local exchange service revenues.
 
3 
For 1993 through 1996, for most categories of carriers, local service revenues include revenues from the following TRS
   reporting categories:  local exchange, local private line, other local services, interstate access services, and intrastate access 
   services.  The amounts shown do not include pay telephone, mobile, or toll service revenues.  See also footnote four.  1998
   revenues for carriers that filed TRS worksheets but not universal service worksheets were estimated using 1998 TRS
   worksheets.  These worksheets contain carrier revenue data for calendar year 1997.
 
4 
Incumbent LEC local service revenues for 1996 and prior years include significant amounts of yellow pages, billing and 
   collection, and other revenues that were reported as other local service revenues.  If these revenues were included in 1997,
   incumbent LECs would show significant revenue growth from 1996 to 1997.  Inside wire maintenance was included in local
   service revenues in 1997 but not thereafter.  
 
5 
Toll carriers typically provide resold special access and private line services as part of toll service operations.  Accordingly, 
   the table shows local exchange revenues rather than all local revenues for these carriers.
Sources:  Data filed on FCC Forms 431, 457, 499-Q and 499-A worksheets.  See also:  Industry Analysis and Technology 
               Division, Wireline Competition Bureau, Telecommunications Industry Revenues  (March 2006).
 8 - 12
Table 8.8
Telephone Number Porting Activity Since Wireless Porting Started
1
Landline to Landline to Mobile Cellular/PCS
Month Landline Mobile Mobile
2
to Landline Total
(thousands) (thousands) (thousands)
2003 November
3
561         2            61            1             625       
December 638         12            756            1             1,407       
2004 January 809         24            713            1             1,547       
February 711         65            591            2             1,369       
March 776         79            632            1             1,488       
April 718         49            613            1             1,381       
May 756         73            689            1             1,519       
June 789         165            873            2             1,829       
July 656         143            806            3             1,608       
August
4
786         95            824            * 1,705       
September 701         43            787            1             1,532       
October 899         97            738            1             1,735       
November 736         131            736            2             1,605       
December 692         86            910            1             1,689       
2005 January 698         53            808            2             1,561       
February 936         81            735            1             1,753       
March 1,257         74            815            2             2,148       
April 959         55            797            1             1,812       
May 892         56            862            1             1,811       
June 1,064         38            1,153            2             2,257       
July 1,006         62            982            2             2,052       
August 1,203         42            933            2             2,179       
September 1,114         31            835            2             1,982       
October 991         37            866            2             1,896       
November 1,023         29            826            2             1,880       
December 1,079         22            1,031            2             2,135       
2006 January 1,242         37            879            4             2,162       
February 1,347         22            807            3             2,178       
March 1,422         19            876            2             2,319       
April 1,095         19            747            2             1,863       
May 1,213         46            813            2             2,073       
June 1,010         30            862            2             1,904       
Cumulative Total 29,779         1,817            25,356            54             57,004       
 * Indicates a number between 1 and 499.
Source:  Raw data from Local Number Portability Administrator (NeuStar, Inc.).  Rollups performed by the Industry Analysis and 
Technology Division staff, Wireline Competition Bureau.
1
 Monthly figures include numbers that were ported back to the original carrier, or where the subscriber with the ported number 
terminated service.
3
 Wireless porting started November 24, 2003.  These figures include all ports during the month of November, which for ports from or 
to a wireless carrier, include a small number of test ports that happened prior to November 24.  
4
 Due to a data problem, does not include numbers that were ported back to the original carrier, or where the subscriber with the 
ported number terminated service.
2 
Excludes significant porting activity between Cingular and AT&T Wireless following the closing of their merger in October 2004.
8 - 13
Table 8.9
Telephone Numbers Remaining in the Porting Database at the End of Each Quarter 
1
Landline to Landline to Mobile to Mobile to Total
Year Quarter Landline Mobile Mobile
2
Landline
(thousands) (thousands) (thousands)
1999 Second 1,840      * * * 1,840      
Third 2,658      * * * 2,658      
Fourth 3,854      * * * 3,854      
2000 First 5,029      * * * 5,029      
Second 5,781      * * * 5,781      
Third 7,595      * * * 7,595      
Fourth 9,146      * * * 9,146      
2001 First 10,567      * * * 10,567      
Second 12,310      * * * 12,310      
Third 14,610      * * * 14,610      
Fourth 15,519      * * * 15,519      
2002 First 16,810      * * * 16,810      
Second 18,210      * * * 18,210      
Third 19,862      * * * 19,862      
Fourth 21,449      * * * 21,449      
2003 First 22,781      * * * 22,781      
Second 23,723      * * * 23,723      
Third 24,796      * * * 24,796      
Fourth 25,869      16        795         2           26,682      
2004 First 28,462      173        2,686         3           31,324      
Second 28,371      406        4,635         4           33,417      
Third 29,396      667        6,874         9           36,945      
Fourth 30,607      832        9,041         11           41,491      
2005 First 32,399      1,001        10,860         16           44,276      
Second 34,136      1,092        12,926         19           48,173      
Third 35,959      1,201        14,327         23           51,510      
Fourth 37,607      1,226        16,101         29           54,963      
2006 First 40,193      1,273        17,577         34           59,077      
Second 42,130      1,333        19,032         42           62,538      
2 
Excludes significant porting activity between Cingular and AT&T Wireless following the closing of their merger.
Source:  Raw data from Local Number Portability Administrator (NeuStar, Inc.).  Rollups performed by the 
Industry Analysis and Technology Division staff, Wireline Competition Bureau.
* Wireless portability started November 24, 2003.  A small number of test ports were conducted before then.
1
 Numbers ported because customer changed carriers.  The database contains the date when the telephone number 
record was last updated.  For most telephone numbers, this was the most recent port.  For those telephone numbers 
affected by area code changes, however, the date refers to when the record was updated to reflect the new area 
code.  See the text for a fuller discussion.
8 - 14
Table 8.10
Numbers in the Porting Database by Quarter in Which They Were Most Recently Ported
1
June 30, 2006 
2
Ported During Landline to Landline to Mobile to Mobile to
Year Quarter Landline Mobile Mobile Landline
(thousands) (thousands)
1998 First                        0
3                 
** *
Second 3          * * *
Third 41          * * *
Fourth 138          * * *
1999 First 232          * * *
Second 355          * * *
Third 399          * * *
Fourth 516          * * *
2000 First 549          * * *
Second 597          * * *
Third 743          * * *
Fourth 860          * * *
2001 First 851          * * *
Second 1,042          * * *
Third 1,086          * * *
Fourth 1,258          * * *
2002 First 1,122          * * *
Second 1,256          * * *
Third 1,667          * * *
Fourth 1,665          * * *
2003 First 1,240          * * *
Second 1,346          * * *
Third 1,343          * * *
Fourth 1,287          10             530                1                 
2004 First 1,773          125             1,265                1                 
Second 1,736          129             1,542                2                 
Third 1,826          206             1,830                6                 
Fourth 1,761          229             1,918                3                 
2005 First 2,214          171             1,793                2                 
Second 2,403          118             1,949                2                 
Third 2,745          122             2,212                3                 
Fourth 2,594          82             2,279                3                 
2006 First 3,564          71             2,258                4                 
Second 2,985          94             2,230                3                 
1
 Numbers ported because customer changed carriers.
3
 Number is between 0 and 499.
Source:  Raw data from Local Number Portability Administrator (NeuStar, Inc.).  Rollups performed by the Industry Analysis
and Technology Division staff, Wireline Competition Bureau.
2
 The local number portability database was designed solely for the purpose of routing calls.  As such, it retains only the most 
recent porting activity for any given number.  So if a consumer ports a number from Carrier A to Carrier B, and later the 
consumer then ports the number from Carrier B to Carrier C, the database will not reflect the original port from Carrier A to 
Carrier B.  Also, numbers that revert back to the original carrier (either because the customer ports the number back to the 
original carrier or because the customer discontinues service with that number) are dropped from the database.  Lastly, area 
code splits can make a number appear to be ported later than it actually was.  
* Wireless portability started November 24, 2003.  A small number of test ports were conducted before then.  NeuStar 
supplies information indicating which carrier are wireless and which are wireline.  Occasionally, a carrier that had been 
identified as a wireline carrier is later identified as a wireless carrier, and vice-versa.   
8 - 15
 9 - 1
9 Long Distance Telephone Industry 
 
Until the 1970s, AT&T had a virtual monopoly on long distance service in the 
United States.  In the 1970s, competitors such as MCI and Sprint began also to offer long 
distance service.  With the gradual emergence of competition, basic rates dropped, calling 
surged, and AT&Ts dominance declined.   
 
More than 1,200 companies now offer wireline long distance service.  These 
carriers remain subject to the Commissions jurisdiction.  The Commission, however, has 
chosen to rely on competition, rather than regulation, as much as possible.  Thus, the 
Commission forbears from regulating most aspects of long distance service. 
 
1.  Toll Revenues 
 
 In 2004, carriers providing toll service generated $70.1 billion in toll revenues.  
These include toll revenues from long distance carriers, wireless toll from wireless carriers, 
and toll revenues from local exchange carriers.  These revenues are shown in Table 9.1. 
 
Toll calls can be divided into three jurisdictional categories - intrastate calls, 
domestic interstate calls, and international calls.  The revenues, from 1980 through 2004, 
for each of the three jurisdictional categories are shown in Table 9.2. 
 
Toll revenues also can be divided between residential and nonresidential services, as 
in Table 9.3.  In 2004, residential customers generated over one third of all end-user toll 
revenues. 
 
2.  Number of Companies 
 
The number and types of carriers reporting long distance revenues are shown in 
Table 9.4. The Telecommunications Reporting Worksheet (FCC Form 499-A) requires each 
filer to select up to five of 20 categories as best describing its primary line of business.  Six 
of these categories consist of carriers that are primarily engaged in providing long distance 
service and are collectively described as being toll carriers:  interexchange carriers (IXCs), 
operator service providers (OSPs), other toll service providers, prepaid calling card 
providers, satellite service providers, and toll resellers. 
 
 In 2004, 1,204 filers selected at least one of the above toll service provider 
categories as their primary line of business and are therefore categorized as being a toll 
carrier.  (They were also asked to rank their choices with one being the most important. 
 
 Prior to 1986, carrier identification codes (CICs) provided information on the 
number of firms seeking to acquire certain types of interconnecting arrangements with 
local telephone companies.  Beginning in 1986, a number of corporations, government 
agencies and other organizations began to acquire carrier identification codes for their 
own use, rather than for the purpose of providing telecommunications services to others.  
 9 - 2
After that time, the use of such codes to estimate the number of long distance carriers 
became less reliable.  The number of codes assigned over time can be found in the long 
distance section of the May 2004 Trends report which can be accessed at 
www.fcc.gov/wcb/stats.html. 
 
CICs are currently assigned by the North American Numbering Plan 
Administration (NANPA), which is part of Neustar, Inc.  Further information on such 
codes can be found on the Internet at www.nanpa.com. 
 
 
3.  Long Distance Market Shares 
 
 A generation ago, before the breakup of the Bell System, AT&Ts local telephone 
companies provided local service to most of the United States.  At the beginning of 1984, 
however, AT&Ts local operating companies were divested in the settlement of an 
antitrust case.  
 
After the AT&T divestiture, AT&Ts former operating companies were restricted 
to providing service within their own local access and transport areas (LATAs), i.e., they 
were precluded from offering toll service that crossed LATA boundaries.  As a result, 
two separate and distinct toll markets emerged. 
 
In the first, AT&T competed with small but rapidly growing competitors for calls 
that crossed LATA boundaries.  This market included almost all interstate and 
international calls and a large number of intrastate toll calls as well.  A second and much 
smaller market consisted of short distance toll calls that did not cross LATA boundaries.  
This second market was dominated, at least initially, by the local exchange carriers 
operating within their own service territories. 
 
Over time, the distinctions between the two markets have become blurred as 
customers acquired the ability to select among competing carriers for their intraLATA 
calls as well as their interLATA calls.  As discussed in greater detail in the following 
section, the 1996 Telecommunications Act established a procedure for Bell companies to 
offer in-region, interLATA long distance service after complying with certain 
preconditions to open their own markets. 
 
Bill Harvesting data collected by TNS Telecoms (TNS) are used to calculate 
residential market shares.  Further information on TNS and its Bill Harvesting data can 
be found in Section 14 and in Appendix B.  Table 9.5, which is based on this information, 
presents nationwide market shares of households, and directly dialed intraLATA and 
interLATA minutes from 1995 to 2005.  Chart 9.2 shows the residential household 
market shares for the largest carriers for 2005.  Table 9.6 presents market shares by 
region for 2005.  Chart 9.3 shows residential market shares for the largest carriers for the 
northeast and southwest regions for 2005. 
 
 
 
 
 9 - 3
4.  Section 271 Applications 
 
Section 271 of the Communications Act required the regional Bell operating 
companies (RBOCs) to apply to the Commission, on a state-by-state basis, for 
authorization to provide in-region interLATA services.  To obtain such authorization 
pursuant to section 271, the RBOC had to demonstrate that it satisfied the 14-point 
competitive checklist, that it complied with the separate affiliate and nondiscrimination 
requirements of section 272, and that the requested authorization was consistent with the 
public interest, convenience, and necessity.  After a section 271 application was filed 
with the Commission, the Commission had 90 days to determine whether the RBOC had 
taken the statutorily required steps to open its local telecommunications markets to 
competition. 
 
A RBOC applicant had to demonstrate either that:  A) one or more unaffiliated 
competing providers of local telephone service to residential and business subscribers 
was connected to the RBOCs network, and that such local telephone service was being 
offered by such competing providers either exclusively over their own telephone 
exchange service facilities or predominately over their own telephone exchange service 
facilities in combination with the resale of the telecommunications services of another 
carrier (commonly referred to as Track A); or B) if no potential competing provider 
had requested to connect to a RBOCs network, the RBOC had a statement of generally 
available terms and conditions in place demonstrating that it is ready to allow potential 
competitors to connect to its facilities (commonly referred to as Track B). 
 
On December 22, 1999, the first regional Bell operating companys application 
(Bell Atlantic, now known as Verizon) was approved by the Commission to provide in-
region interLATA service in the state of New York.  On December 3, 2003, the final Bell 
operating companys application (Qwest) was approved to provide in-region interLATA 
service in the state of Arizona.  Table 9.7 shows the states in which the BOCs filed 
section 271 applications, the Bell operating companys name, and the applications 
resolution date. 
 
The companies approved must continue to comply with the section 271 
requirements.  The Commission has a number of enforcement tools at its disposal, 
including imposing penalties or suspension of approval. 
Company 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
AT&T Companies 
1
  AT&T Communications, Inc. $37,166 $38,069 $39,264 $39,470 $40,551 $39,680 $37,646 $33,310 $27,094 $22,418 $22,243
    Alascom, Inc. 329 325
  Teleport Communications Group, Inc. 284 464 632 437 396 1,376
    ACC Long Distance Corp. 118 122 123
MCI Companies 
2 
  MCI - L.D. Operations 22,192 23,431 22,554 21,259 17,659 16,062 11,602
    MCI Telecomunications Corp. 11,715 14,617 16,372 17,150
  WorldCom, Inc. 2,221 3,640 4,485 5,897
    Wiltel, Inc. 917
    MFS Intelenet, Inc. 118 122
    Intermedia Communications, Inc. 380 516 444
Sprint Corporation - Long Distance Division 6,805 7,277 7,944 8,595 7,994 9,708 9,038 8,424 7,077 6,326 5,900
SBC Companies
   SBC Communications, Inc. [ILEC] 
3
2,748 2,420 2,182 2,083 1,692
   SBC Long Distance, Inc.* 449 729 1,572 2,892
   SNET America, Inc.* 142 162 186 189 177 158 154 143
Verizon Companies
  Bell Atlantic Comm, Inc. d/b/a Verizon Long Dist.* 130 864 1,433 1,802 2,041
  Verizon Communications, Inc. [ILEC] 
3
2,278 1,988 1,668 1,629 1,555
  Verizon Select Services, Inc. 340 607 834 1,004 509 223 441
  NYNEX LD Co. d/b/a Verizon Enter. Solutions * 316 316
Qwest Companies 
4
  Qwest Communications Corp.* 320 517 1,773 2,309 3,202 2,824 3,307
  Qwest Communications, Inc. [ILEC] 
3
374 264 175 124 78
  Qwest LD Corp. 366
  Qwest Interprise America, Inc. 339
  LCI Int'l Telecom Corp. d/b/a Qwest Comm. Svcs. * 453 671 1,103 1,001 1,664 1,394 1,271 871
  USLD Communications, Inc.* 136 155 188 241 279 216
IDT Corporation 376 850 945 1,303 1,532 1,835 2,217
Global Crossing Companies
  Global Crossing Bandwidth, Inc. 144 127 324 539 692 1,555 1,225 1,312 1,565 1,317
  Global Crossing Telecommunications, Inc. 568 827 1,119 775 874 874 801 817 786 615 625
  Global Crossing North American Networks, Inc. 306 309 323 223 196
  International Exchange Ntwks, Ltd. (IXnet, Inc.) 131
BellSouth Companies
  BellSouth Long Distance, Inc. * 294 486 928 1,483
  BellSouth Telecommunications, Inc. [ILEC] 
3
466 412 341 341 268
WilTel Communications, LLC 
5
227 126 184 413 593 737 1,112 1,302
VarTec Companies
 VarTec Telecom, Inc. 107 125 470 820 836 819 923 947 793 404
              c
  Excel Telecommunications, Inc. 156 363 1,091 1,179 1,219 942 703 611 427 665
              c
   eMeritus Communications, Inc. 215 429 379 264 260 169
   Long Distance Wholesale Club 176 121 131
Broadwing Communications, LLC 310 658
Teleglobe America Inc. 275 557 282 208 269 409 508
ITC^DeltaCom Cos. 
6
  ITC^DeltaCom Communications, Inc 122 172 270 259 311 308 324
  Business Telecom, Inc. 115 149 195 212 260 271 286 251 228 177
Citizens Communications Cos. 
7
  Frontier Communications of America, Inc. 133 121 193
  Electric Lightwave, Inc. 145 227 180 176 169
General Communication, Inc. 
8
106 120 143 158 175 184 211 238 227 263 283
McLeodUSA Telecommunications Services, Inc. 232 448 463 358 274 225
Evercom Systems, Inc. 205 206 245 239 184 206
Level 3 Communications, LLC 160 131 134 190
ALLTEL Communications, Inc. (ACI) 120 175 174 160 175 188
Primus Telecommunications, Inc. 219 183
Talk America Inc. 180 232 305 426 398 428 249 160 158 176
Americatel Corporation 129 188 269 246 193 139
Norlight Telecommunications, Inc. 119 142 140 141 136
Sum of Above Companies 
#
65,258
Toll Service Revenues of Above Companies 58,537
Incumbent Local Exchange Carriers 
8
13,375 11,332 11,248 10,215 9,429 8,046
Other Toll Service Providers 
9
9,626 10,709 14,765 13,029 15,783 16,647 20,827 16,702 12,797 12,034 12,677
  Total Toll Service Revenues 
10
$84,478 $89,629 $99,691 $100,793 $105,055 $108,246 $109,616 $99,300 $83,697 $77,188 $71,214
Note:  Total toll service revenues include intrastate, interstate and international toll revenues.  Also, some numbers for previous years have been revised for consistency with other reports.
# Some of the companies included non toll-related revenues in their annual submissions filed pursuant to Section 43.21(c) of the Commission's rules.
* Regional Bell Operating Company's long distance subsidiaries.
9 - 5
Table 9.1
Total Toll Service Revenues by Provider 
(Dollar Amounts Shown in Millions)
2004
Notes for Table 9.1
  1  ACC Long Distance Corp. and Teleport Communications Group merged in April of 1998, and the combined company, Teleport Communications Group, merged
      with AT&T Communications, Inc. in July of that year.  AT&T Communications acquired Alascom, Inc. on August 7, 1995 and began filing a consolidated revenue
      statement in 1996.
  2  On July 21, 2002, WorldCom and substantially all of its U.S. subsidiaries filed voluntary petitions for relief in the U.S. Bankruptcy Court for the Southern District of
      New York under Chapter 11 of Title 11 of the U.S. Bankruptcy Code. On April 20, 2004, WorldCom emerged from bankruptcy and merged with and into MCI
      whereby the separate existence of WorldCom ceased and MCI became the surviving company.
  3  Includes revenue for long distance and data services.
  4  Qwest Interprise America, Inc. is a subsidiary for out-of-region DSL (Digital Subscriber Line); and Qwest LD Corp. is a subsidiary for in-region long distance.
  5  In November 2003, WilTel Communications, LLC became a wholly-owned, indirect subsidiary of Leucadia National Corporation. Thus, it no longer files with the SEC
      (Securities & Exchange Commission) on a stand-alone basis.
  6 Excludes operating revenues derived from non-communications (i.e., non-regulatory) operations.
  7 Citizens Communications Company offers its ILEC services under the "Frontier" name, and its CLEC services through Electric Lightwave, Inc. Both companies are
     wholly-owned subsidiaries of Citizens and were acquired, respectively, in June of 2001 and June of 2002.  
  8 Operating revenue of Cincinnati Bell Any Distance Inc, a wholly-owned subsidiary of Cincinnati Bell Inc, is below the indexed revenue threshold for the calendar-
     year 2004.
  9  BCSI, Inc. sold all of its customers and all of its operating assets to C III Communications, LLC in June of 2003. As a result, it ceased doing business and did file
      a revenue report pursuant to  43.21(c) of the Commission's Rules for the calendar-year 2004.
10 Operating revenue is below the indexed revenue threshold for the calendar-year 2004.
11 ILECs' totals are shown separately through 1999 because they primarily carried intraLATA calls due, in part, to the restrictions imposed on the RBOCs by the 1984
     Divestiture Agreement.  By 2000, most local exchange customers could presubscribe to any carrier for intraLATA toll service and some RBOCs began to receive
     Section 271 approval to provide interLATA toll services.
12 Includes wireless toll service revenues reported by wireless carriers, toll service revenues reported by CLECs, and toll service revenues reported by non-RBOC ILECs.
9 - 6
Intrastate, Interstate, and International Toll Revenues
(Dollar Amounts Shown in Millions)
Toll Revenues End-User Revenues
Total Toll
Year Intrastate Interstate International Revenues Intrastate Interstate International Revenues
1980 $12,700 $19,049 $1,586 $33,335 $1,475
1981 14,632 21,948 2,599 39,180 2,485
1982 16,457 24,685 2,777 43,919 2,651
1983 17,612 26,418 2,940 46,970 2,802
1984 19,077 28,616 3,463 51,156 3,309
1985 20,408 30,613 3,794 54,815 3,636
1986 21,340 32,010 4,119 57,468 3,947
1987 21,563 32,345 4,611 58,519 4,436
1988 22,900 34,350 5,350 62,600 5,146
1989 23,850 35,775 6,399 66,024 6,340
1990 25,622 33,678 7,492 66,792 7,390
1991 24,090 35,837 8,631 68,558 8,480
1992 27,667 37,871 10,207 75,744 9,810
1993 30,950 40,212 11,364 82,525 10,901
1994 29,815 42,028 12,635 84,478 12,100
1995 31,519 43,955 14,155 89,629 13,144
1996 34,181 48,903 16,607 99,691 15,023
1997 32,859 49,247 18,688 100,793 $30,144 $43,640 15,409 $89,193
1998 34,699 50,000 20,356 105,055 30,800 44,153 16,654 91,607
1999 33,600 54,590 20,056 108,246 29,976 47,598 15,737 93,311
2000 33,030 56,225 20,361 109,615 28,501 42,980 16,286 87,767
2001 29,530 46,389 23,381 99,301 25,891 36,660 16,751 79,302
2002 25,772 39,725 18,200 83,697 22,122 31,707 13,392 67,222
2003 23,160 38,550 15,479 77,188 18,889 28,088 12,006 58,983
2004 21,748 34,664 14,802 71,214 17,762 27,487 10,262 55,511
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues
               (March 2006); International Bureau, Trends in the U.S. International Telecommunications Industry
(September 2005);  47 CFR  43.21(c) data through 1991.  Through 1996, some breakouts based on staff estimates.
Table 9.2
Toll Revenues by Market Segment
(Dollar Amounts Shown in Billions)
Chart 9.1
Total Toll
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
Interstate Intrastate International
 9 - 7
Table 9.3
End-User Toll Revenues
(Dollar Amounts Shown in Millions)
Residential End-User End-User Toll Revenues
Toll as a Toll By Customer Type
Percentage Revenues 2/  
of all End-    
Year User Toll  Residential Other  
Revenues 1/   
1995 46 % $75,638 $35,103 $40,535
1996 45 82,616 37,543 45,074
1997 46 89,193 40,978 48,215
1998 44 91,607 40,284 51,323
1999 42 93,311 39,466 53,845
2000 38 87,767 33,327 54,440
2001 33 79,302 26,075 53,227
2002 34 67,222 23,018 44,204
2003 35 58,983 20,903 38,080
2004 33 55,511 18,535 36,976
Note: Data for some prior years have been revised.
  1/ Staff estimates are based on market segment data in carrier annual reports to 
shareholders;  average household payments to long distance carriers shown in       
Table 3.2; and residential toll revenues published by the U.S. Census Bureau in the 
Service Annual Survey: 2002, Table 3.3.11, and previous reports.
 2/ Toll services are telecommunications services that enable customers to communicate 
outside of local exchange calling areas.  Toll service revenues include revenues from 
ordinary long distance, subscriber toll-free, operator service, prepaid calling card, 
long distance private line, satellite services, and other long distance services.  End-user 
toll revenues consist of toll service revenues from end-user customers, 
governments, non-profits, de minimis resellers, and any other customer that does not 
contribute directly to universal service.  
 Source:  End-user toll revenues for 1997 through 2004 are taken from Industry 
Analysis and Technology Division, Wireline Competition Bureau,
Telecommunications Industry Revenues (March 2006), and previous editions.
Figures for 1995 and 1996 are staff estimates.
9 - 8
Table 9.4
Number of Toll Service Providers
 
TRS Data TRS & FCC Form 499-A Data
USF Data  
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Carriers That Provide Toll Service  1/
   Toll Carriers
Interexchange Carriers (IXCs) 83 97 130 149 151 171 178 212 233 229 232 257
Other Toll Carriers
Operator Service Providers (OSPs) 352925273224152019181719
Pre-paid Calling Card Providers  NA  NA 8 16 18 20 18 23 27 27 50 67
Satellite Service Providers  NA  NA  NA 22 13 13 17 25 34 33 40 40
Toll Resellers 171 206 260 345 340 388 406 493 558 574 642 751
Other Toll Service Providers 32 34 30 28 15 31 17 35 69 51 45 70
Total Toll Service Providers 321 366 453 587 569 647 651 808 940 932 1,026 1,204
    Fixed Local Service, Payphone, and 
    Mobile Service Filers with Toll Service
    Revenues  NA  NA NA NA 1,537 1,740 1,870 1,678 1,884 1,602 1,678 1,680
       All Toll Service Providers  NA  NA NA NA 2,106 2,387 2,521 2,486 2,824 2,534 2,704 2,884
NA - Not available.
1/  Counts of toll carriers represent the numbers of filers that reported telecommunications revenues and that identified themselves 
using a toll carrier category.  Filers that identified themselves as Fixed Local Service, Payphone, and Mobile Service providers 
were counted as toll providers only if they reported toll service revenues.  
Sources:  Data filed on FCC Forms 431, 457, and 499-A worksheets.  See also:  Industry Analysis and Technology Division, Wireline
Competition Bureau, Telecommunications Industry Revenues (March 2006) and Telecommunications Provider Locator 
(March 2006), available at http://www.fcc.gov/wcb/stats.
9 - 9
AT&T 
1
MCI 
2
Sprint
BellSouth 
3
Qwest 
4
SBC 
5
Verizon 
6
Other 
7
  1995 74.6 % 13.0 % 4.2 %
(7)   
%
(7)   
%
(7)   
%
(7)   
% 8.2 %
  1996 69.9  14.1 5.0
(7)   (7)   (7)   (7)   
11.0
  1997 67.2 13.2 5.7
(7)   (7)   (7)   (7)   
13.8
  1998 62.6 15.1 5.7
(7)   (7)   (7)   (7)   
16.6
  1999 62.5 16.0 6.2
(7)   (7)   (7)   (7)   
15.4
  2000 51.1 18.0 6.6 0.1 1.6 1.0 4.6 17.0
  2001 42.3 18.5 6.8 0.1 2.9 2.6 6.7 20.0
  2002 36.7 15.8 7.6 0.2 2.5 3.8 9.3 24.1
  2003 31.7 13.0 7.1 2.2 3.2 7.5 10.8 24.4
  2004 23.5 9.9 6.9 4.4 5.7 13.2 12.9 23.5
  2005 18.1 7.7 6.2 5.9 5.9 15.9 16.2 24.1
  1995 8.9 % 2.4 % 4.6 %
(7)   
%
(7)   
%
(7)   
%
(7)   
% 84.1 %
  1996 9.5 5.4 4.4
(7)   (7)   (7)   (7)   
80.6
  1997 13.9 6.7 3.7
(7)   (7)   (7)   (7)   
75.7
  1998 15.6 8.7 3.8
(7)   (7)   (7)   (7)   
71.8
  1999 16.9 12.0 3.6
(7)   (7)   (7)   (7)   
67.5
  2000 17.3 12.8 5.0 1.6 5.0 18.6 18.0 21.7
  2001 15.4 13.2 4.8 1.4 4.3 17.9 17.6 25.3
  2002 14.0 11.8 4.8 1.1 2.9 18.5 16.3 30.7
  2003 10.7 11.4 8.1 0.9 2.7 17.7 13.2 35.4
  2004 7.5 9.4 5.0 1.0 4.6 30.5 12.2 29.9
  2005 5.5 9.2 5.3 1.3 5.3 34.3 12.2 26.7
  1995 69.5 % 16.1 % 5.8 %
(7)   
%
(7)   
%
(7)   
%
(7)   
% 8.6 %
  1996 62.5 15.9 7.1
(7)   (7)   (7)   (7)   
14.5
  1997 62.4 14.9 6.5
(7)   (7)   (7)   (7)   
16.2
  1998 58.4 17.0 6.5
(7)   (7)   (7)   (7)   
18.1
  1999 53.2 20.9 6.6
(7)   (7)   (7)   (7)   
19.3
  2000 44.7 22.0 7.3 0.1 1.6 0.5 2.5 21.3
  2001 36.3 20.5 7.6 0.1 1.9 1.8 3.6 28.1
  2002 31.2 18.1 9.0 0.3 1.6 3.1 5.6 31.0
  2003 26.0 16.6 7.9 1.4 1.8 6.6 6.6 32.9
  2004 17.0 12.5 8.1 1.9 6.4 20.3 6.7 27.0
  2005 10.8 11.3 8.6 2.6 8.5 23.7 8.2 26.3
Residential Household Market Shares
Table 9.5
Residential Household Market Shares
(1995 - 2005)
Chart 9.2
Households 
8
Direct Dial IntraLATA Minutes
Direct Dial InterLATA Minutes
2005
Other
24.1%
AT&T
18.1%
Qwest
5.9%
MCI
7.7%
Sprint
6.2%
BellSouth
5.9%
SBC
15.9%
Verizon
16.2%
 9 - 10
Notes for Table 9.5
1
 AT&T Long Distance, Lucky Dog Phone Co. and ACC Long Distance
2
 MCI Long Distance, Telecom USA, Touch 1, TTI National, LDDS WorldCom and WorldCom Network Service
3
 BellSouth Long Distance and BellSouth Public Communications
4
 Qwest and U S WEST Long Distance
6
 Bell Atlantic Long Distance, NYNEX/Bell Atlantic North, Verizon Select Services and GTE
7
 Until 2000, the regional Bell operating companies are not broken out of the "Other" category.
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms 
ReQuest Market Monitor , Bill Harvesting .
8 
Each household is assumed to have a single access line (less than 8% of households in the 2003 sample had 
more than one access line).  These lines are allocated across carriers based on the household's primary long 
distance carrier which is imputed by the provider of the data, TNS Telecoms.  In 1995, 1996 and 1999-2003, TNS 
defined the household's primary long distance carrier.  In 1997, a household's primary long distance carrier was 
determined based on calls made through long distance carriers, and in 1998, a household's primary long distance 
carrier was determined based on interLATA calls.
Note:  Market shares are estimates based on sample data.  Shares for past years have been revised to take into 
account mergers and acquisitions and changes in methodology.  Columns may not sum to 100% due to rounding.
5
 Ameritech Communications, Ameritech 800, Pacific Bell, Southwest Long Distance, SBC Long Distance and 
SNET All Distance 
9 - 11
Region 
1
AT&T 
2
MCI 
3
Sprint Sample Size
Southeast 19.8 % 7.6 % 10.6 % 29.7 % 1.2 % 0.0 % 7.5 % 23.6 % 5,407
West 14.0 9.5 4.8 0.0 34.6 0.2 5.0 31.9 3,760
West Coast 18.8 6.3 5.9 0.0 1.8 37.8 12.1 17.3 3,169
Mid-Atlantic 23.4 9.8 5.5 0.1 1.0 0.1 38.5 21.6 3,841
Mid-West 17.6 7.2 5.6 0.0 1.4 32.2 8.7 27.3 4,300
Northeast 18.7 7.8 2.3 0.0 0.7 7.0 38.6 24.8 3,494
Southwest 12.7 5.2 6.2 0.1 1.3 46.6 7.3 20.6 3,213
Total 18.1 % 7.7 % 6.2 % 5.9 % 5.9 % 15.9 % 16.2 % 24.1 % 27,184
Southeast 5.2 % 8.4 % 16.3 % 16.5 % 0.2 % 0.0 % 5.7 % 47.8 % 44,482
West 5.4 14.3 1.4 0.0 45.0 0.0 3.7 30.3 62,836
West Coast 5.5 5.8 3.2 0.0 0.2 59.5 11.6 14.1 106,554
Mid-Atlantic 13.5 11.5 10.7 0.0 0.3 0.0 37.3 26.6 68,723
Mid-West 2.0 6.4 3.1 0.0 0.2 51.4 7.7 29.2 123,028
Northeast 9.9 15.7 2.0 0.0 0.3 16.8 18.8 36.5 55,844
Southwest 1.4 8.5 5.9 0.0 0.0 60.0 5.1 19.1 86,736
Total 5.5 % 9.2 % 5.3 % 1.3 % 5.3 % 34.3 % 12.2 % 26.7 % 548,202
Southeast 16.5 11.7 18.0 16.9 1.1 0.0 5.5 30.2 169,228
West 6.1 7.9 9.4 0.0 48.3 0.0 2.3 26.0 171,838
West Coast 8.2 8.4 6.9 0.0 0.7 50.3 6.5 18.9 155,323
Mid-Atlantic 17.6 17.5 12.8 0.0 1.7 0.0 15.7 34.7 143,165
Mid-West 7.0 16.7 4.2 0.0 0.6 38.1 5.2 28.2 197,721
Northeast 18.6 12.0 3.4 0.0 1.0 9.4 25.9 29.6 106,301
Southwest 5.3 4.4 4.3 0.0 1.5 63.6 3.9 17.0 151,535
Total 10.8 11.3 8.6 2.6 8.5 23.7 8.2 26.3 1,095,111
Table 9.6
Residential Household Market Shares
By Region:  2005
BellSouth 
4
Qwest 
5
SBC 
6
Verizon 
7
Other 
8
Direct Dial IntraLATA Minutes
Direct Dial InterLATA Minutes
Households
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor, Bill Harvesting .
Chart 9.3
Residential Household Market Shares by Region:  2005
Note:  Market shares are estimates based on sample data.  Columns may not sum to 100% due to rounding.  For footnotes, please see the next page.
Northeast
Qwest
0.7%
SBC
7.0%
Other
24.8%
Sprint
2.3%
BellSouth
0.0%
Verizon
38.6%
AT&T
18.7%
MCI
7.8%
Southwest
SBC
46.6%
AT&T
12.7%
Verizon
7.3%
Other
20.6%
MCI
5.2%
Sprint
6.2%
BellSouth
0.1%
Qwest
1.3%
9 - 12
Notes for Table 9.6
2
 AT&T Long Distance, Lucky Dog Phone Co. and ACC Long Distance
3
 MCI Long Distance, Telecom USA, Touch 1, TTI National, LDDS WorldCom and WorldCom Network Service
4
 BellSouth Long Distance and BellSouth Public Communications
5
 Qwest and U S WEST Long Distance
7
 Bell Atlantic Long Distance, NYNEX/Bell Atlantic North, Verizon Select Services and GTE
1
 Southeast:  Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and 
Tennessee
  West:  Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, 
South Dakota, Utah, Washington and Wyoming
  Mid-Atlantic:  Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia
8 
Households with any other presubscribed carrier.  Note that households for which the presubscribed carrier is 
unknown or could not be determined have been excluded from the sample.
6
 Ameritech Communications, Ameritech 800, Pacific Bell, Southwest Long Distance, SBC Long Distance and 
SNET All Distance 
  West Coast:  California and Nevada
  Mid-West:  Illinois, Indiana, Michigan, Ohio and Wisconsin
  Northeast:  Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont
  Southwest:  Arkansas, Kansas, Missouri, Oklahoma and Texas
9 - 13
Table 9.7
Regional Bell Operating Companies' Applications
To Provide In-Region InterLATA Service
(Section 271 Applications)
State
Bell Operating 
Company
Date Application 
Resolved
Alabama BellSouth 09/18/02
Arkansas SBC 11/16/01
Arizona Qwest 12/03/03
California SBC 12/19/02
Colorado Qwest 12/23/02
Connecticut Verizon 07/20/01
Delaware Verizon 09/25/02
District of Columbia Verizon 03/19/03
Florida BellSouth 12/19/02
Georgia BellSouth 05/15/02
Idaho Qwest 12/23/02
Illinois SBC 10/15/03
Indiana SBC 10/15/03
Iowa Qwest 12/23/02
Kansas SBC 01/22/01
Kentucky BellSouth 09/18/02
Louisiana BellSouth 05/15/02
Maine Verizon 06/19/02
Maryland Verizon 03/19/03
Massachusetts Verizon 04/16/01
Michigan SBC 09/17/03
Minnesota Qwest 06/26/03
Mississippi BellSouth 09/18/02
Missouri SBC 11/16/01
Montana Qwest 12/23/02
Nebraska Qwest 12/23/02
Nevada SBC 04/14/03
New Hampshire Verizon 09/25/02
New Jersey Verizon 06/24/02
New Mexico Qwest 04/15/03
New York Verizon 12/22/99
North Carolina BellSouth 09/18/02
North Dakota Qwest 12/23/02
Ohio SBC 10/15/03
Oklahoma SBC 01/22/01
Oregon Qwest 04/15/03
Pennsylvania Verizon 09/19/01
Rhode Island Verizon 02/22/02
South Carolina BellSouth 09/18/02
South Dakota Qwest 04/15/03
Tennessee BellSouth 12/19/02
Texas SBC 06/30/00
Utah Qwest 12/23/02
Vermont Verizon 04/17/02
Virginia Verizon 10/30/02
Washington Qwest 12/23/02
West Virginia Verizon 03/19/03
Wisconsin SBC 10/15/03
Wyoming Qwest 12/23/02
 9 - 14
         10 - 1
10   Minutes 
 
 As in the case of telephone lines, there are several alternative measures of calling 
volumes.  Most subscribers purchase service with unlimited local calling.  As a result, most local 
calls are not metered.  Periodic studies have been used within the telephone industry to estimate 
the number of calls and calling minutes for a variety of purposes.  For example, periodic studies 
of dial equipment minutes (DEMs) historically were used to estimate the proportion of calling 
that is interstate and to allocate costs between interstate and intrastate services.  However, DEMs 
are no longer being used for separations purposes because the separations factors are now frozen. 
Historical data for DEMs can be found in the August 2003 issue of Trends in Telephone Service. 
 
1.  Interstate Switched Access Minutes 
 
 Switched access minutes are those minutes transmitted by long distance carriers that also 
use the distribution networks of local telephone companies, i.e., calls made on private 
telecommunications networks and on leased lines are excluded.  On ordinary long distance calls, 
minutes are counted both where the call originates and where the call terminates.  Access 
minutes include only the domestic portion of international calls.  WATS and toll-free 
(800/888/877/866) calls are counted only on one end of the call.  WATS calls generate access 
minutes only at the terminating end of the call and toll-free (800/888/877/866) calls generate 
access minutes only at the originating end of the call; both types of minutes are counted in the 
terminating minutes because they are billed at the terminating rate.  Originating WATS and 
terminating toll-free minutes are covered under special access arrangements, and hence are not 
subject to switched access charges.  Finally, switched access minutes include time for 
incomplete calls and setup time. 
 
 Table 10.1 and Chart 10.1 show the total number of interstate switched access minutes 
handled by all long distance carriers starting with mid-1984, when the data first became 
available.  The number of minutes grew steadily from mid-1984 to 2000 stemming from a 
combination of overall economic growth and price reductions.  Since 2001, interstate switched 
access minutes have declined, due to a number of reasons including substitution of other 
services. 
 
2.  Billed Access Minutes and Calls 
 
Another measure of usage is the number of interLATA billed access minutes and the 
number of local calls and toll calls.  The large incumbent local exchange companies (ILECs) file 
data on this as part of their Automated Reporting Management Information System (ARMIS) 
reports.  The individual carrier's data can be obtained from the ARMIS Report 43-08 on the 
ARMIS web page at www.fcc.gov/wcb/armis. 
 
The number of interLATA access minutes is based on bills sent to interexchange carriers. 
They include total originating and terminating access minutes of use.  Where these data are 
unavailable, a statistically valid calculation is sometimes used.  The number of local calls refers 
         10 - 2
to the number of originating calls completed or unanswered between points both of which are 
within the local service area of the calling telephone, or total originating calls minus total 
originating toll calls.  The number of toll calls completed refers to the number of completed calls 
directed to a point outside the local service area of the calling telephone.  IntraLATA toll calls 
completed (originating) consist of the number of completed toll calls carried by the reporting 
local operating company within a given local access and transport area (LATA)  and interLATA 
toll calls completed (originating) consist of completed calls directed to and carried by interexchange 
carriers.  IntraLata toll calls carried by interexchange carriers are not included.  More detailed 
definitions can be found on the ARMIS web site.  Intralata toll calls carried by Interexchange 
carriers are not included. 
 
Table 10.2 shows historical data on the number of local and toll calls and the number of 
interLATA billed access minutes for the large ILECs reporting to the Commission.  Toll calls are 
further categorized by intraLATA, interLATA interstate and interLATA intrastate.  Interstate 
and intrastate billed access minutes are also shown. 
Access Access Access Access
Year Period Minutes Year Period Minutes Year Period Minutes Year Period Minutes
1984 Third Quarter 37.5    
Fourth Quarter 39.6    
1985 First Quarter 39.6    1992 First Quarter 85.6    1999 First Quarter 135.6    2006 First Quarter 98.1    
Second Quarter 41.5    Second Quarter 86.5    Second Quarter 138.1    Second Quarter 95.3    
Third Quarter 42.8    Third Quarter 87.9    Third Quarter 138.3    Third Quarter 94.0    
Fourth Quarter 43.3    Fourth Quarter 89.8    Fourth Quarter 140.3    Fourth Quarter
Total 1985 167.1    Total 1992 349.7    Total 1999 552.3    Total 2006
1986 First Quarter 43.0    1993 First Quarter 90.6    2000 First Quarter 142.8    
Second Quarter 44.8    Second Quarter 91.2    Second Quarter 142.9    
Third Quarter 46.7    Third Quarter 93.6    Third Quarter 141.3    
Fourth Quarter 48.5    Fourth Quarter 95.9    Fourth Quarter 139.9    
Total 1986 183.1    Total 1993 371.2    Total 2000 566.9    
1987 First Quarter 51.2    1994 First Quarter 98.7    2001 First Quarter 138.1    
Second Quarter 52.5    Second Quarter 97.9    Second Quarter 137.1    
Third Quarter 55.0    Third Quarter 101.9    Third Quarter 133.3    
Fourth Quarter 57.0    Fourth Quarter 102.9    Fourth Quarter 131.3    
Total 1987 215.7    Total 1994 401.4    Total 2001 539.8    
1988 First Quarter 59.0    1995 First Quarter 105.6    2002 First Quarter 124.8    
Second Quarter 59.6    Second Quarter 106.8    Second Quarter 124.4    
Third Quarter 62.1    Third Quarter 109.0    Third Quarter 119.6    
Fourth Quarter 64.0    Fourth Quarter 110.6    Fourth Quarter 118.0    
Total 1988 244.6    Total 1995 431.9    Total 2002 486.8    
1989 First Quarter 66.2    1996 First Quarter 115.7    2003 First Quarter 114.2    
Second Quarter 68.5    Second Quarter 114.7    Second Quarter 112.1    
Third Quarter 69.7    Third Quarter 117.5    Third Quarter 109.9    
Fourth Quarter 72.6    Fourth Quarter 120.2    Fourth Quarter 107.8    
Total 1989 277.1    Total 1996 468.1    Total 2003 444.0    
1990 First Quarter 74.7    1997 First Quarter 122.1    2004 First Quarter 109.3    
Second Quarter 75.8    Second Quarter 124.4    Second Quarter 106.1    
Third Quarter 77.9    Third Quarter 124.9    Third Quarter 105.1    
Fourth Quarter 79.1    Fourth Quarter 125.8    Fourth Quarter 102.0    
Total 1990 307.4    Total 1997 497.3    Total 2004 422.5    
1991 First Quarter 79.2    1998 First Quarter 124.0    2005 First Quarter 101.2    
Second Quarter 81.9    Second Quarter 131.3    Second Quarter 100.4    
Third Quarter 82.6    Third Quarter 130.7    Third Quarter 100.5    
Fourth Quarter 84.4    Fourth Quarter 132.8    Fourth Quarter 98.8    
Total 1991 328.0    Total 1998 518.8    Total 2005 400.9    
             
(In Billions)
Table 10.1
Interstate Switched Access Minutes for Incumbent Local Exchange Carriers
(In Billions)
Source:  National Exchange Carrier Association (NECA), MOU/Data/Summary of NECA's Total Pool Results, September 30, 2006.
              Industry Analysis and Technology Division, Wireline Competition Bureau, Universal Service Monitoring Report (December 2006).
Chart 10.1
Interstate Switched Access Minutes for Incumbent Local Exchange Carriers
0.0
100.0
200.0
300.0
400.0
500.0
600.0
1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
 10 - 3
Table 10.2
Telephone Calls and Billed Access Minutes of Large ILECs Reporting to the Commission
Number of Telephone Calls InterLATA Billed Access Minutes
(Thousands) Carried by IXCs
(Originating and Terminating)
(Thousands)
Toll Calls Completed 
1
(Originating)
Number
of Local Calls Total InterLATA InterLATA
Year Carriers Carried by InterLATA Interstate Intrastate Total Interstate Intrastate
the ILECs Carried by Carried by Carried by
IXCs IXCs IXCs
1984 75 350,391,981 NA NA NA NA NA NA NA NA 
1985 55 365,304,830 NA NA NA NA NA NA NA NA 
1986 57 372,296,473 NA NA NA NA NA NA NA NA 
1987 52 379,864,264 NA NA NA NA NA NA NA NA 
1988 52 379,035,883 67,547,342 18,983,768 48,563,574 36,752,925 11,810,649 NA NA NA 
1989 51 389,383,322 68,547,451 19,406,222 49,141,229 37,593,867 11,547,362 NA NA NA 
1990 51 402,492,293 63,359,346 20,263,554 43,095,792 31,888,748 11,207,044 NA NA NA 
1991 52 416,213,954 67,333,207 23,337,553 43,995,654 32,126,555 11,869,099 405,456,048 305,745,611 99,710,437
1992 54 434,175,743 71,502,090 22,612,572 48,889,518 36,036,032 12,853,486 432,356,515 327,821,281 104,535,234
1993 53 447,473,714 78,077,246 23,757,662 54,319,584 38,746,788 15,572,796 465,270,369 351,022,599 114,247,770
1994 52 465,207,539 83,441,709 23,796,633 59,645,076 43,244,593 16,400,483 500,297,267 374,996,101 125,301,166
1995 53 484,195,345 94,051,667 23,327,801 70,723,866 50,618,771 20,105,095 549,982,263 405,579,546 144,402,717
1996 51 504,131,507 94,905,927 21,376,847 73,529,080 52,677,037 20,852,043 598,563,946 438,772,880 159,791,066
1997 51 522,025,261 98,424,977 21,844,925 76,580,052 54,563,338 22,016,714 647,813,708 469,638,292 178,175,416
1998 52 544,288,934 96,934,938 18,469,316 78,465,622 55,974,210 22,491,412 690,523,467 497,138,901 193,384,566
1999 52 553,853,237 102,245,666 18,116,240 84,129,426 57,806,961 26,322,465 739,042,459 519,272,905 219,769,554
2000 52 536,523,081 105,978,596 16,157,912 89,820,684 59,212,055 30,608,629 792,263,836 535,011,649 257,252,187
2001 52 515,335,676 97,849,444 14,970,794 82,878,650 53,319,645 29,559,005 745,754,124 504,026,109 241,728,015
2002 52 459,302,668 89,997,279 13,339,232 76,658,047 47,968,133 28,689,914 668,089,004 451,602,651 216,486,353
2003 54 424,617,408 81,217,462 11,880,332 69,337,130 43,385,840 25,951,290 612,805,855 414,701,831 198,104,024
2004 56 381,069,716 82,396,083 10,199,173 72,196,910 47,627,234 24,569,676 601,798,650 407,004,711 194,793,939
2005 56 336,641,880 76,920,931 9,325,876 67,595,055 45,293,132 22,301,207 565,822,068 384,323,165 181,498,903
1
 Excludes IntraLata toll carried by interexhange carriers.
NA - Not available.
Notes:  Between 1987 and 1988, there were significant changes in the definitions of many of the items in this table due to the
          implementation of a new Uniform System of Accounts (USOA) in 1988.  In 1992, some of these definitions were further
          refined when the reporting mechanism of the carriers was changed for the filing of 1991 data.  For these reasons, there
          may be inconsistencies in the data reported for 1984-1987 compared to what was reported for 1988, and also between 1988
          and subsequent years, as the carriers were adapting to the new USOA and automated reporting requirements.
ILEC is an abbreviation for incumbent local exhange carrier.  IXC is an abbreviation for interexchange carrier.
Source:  Industry Analysis and Technology Division, Wireline Competition Division, Statistics of Communications Common Carriers 
             2004/2005 Edition (November 2005), and ARMIS 43-08 reports.  Totals may be understated because certain data pertaining
             to the carriers included in this table are not available.  Data for the year 2005 are preliminary.
IntraLATA 
carried by 
ILECs
Total 
1
 10 - 4
 11 - 1
11    Mobile Wireless Service 
  
1.  Industry Statistics 
  
            There are several measures of mobile wireless subscribers.  While there are some 
differences in these data series, they all show significant growth in mobile wireless 
subscribers.  The Commission collects data on the number of wireless subscribers by 
state as part of the local competition and broadband data gathering program (FCC Form 
477).  This program requires providers of wireless service to file information twice each 
year.  Prior to June 2005, only wireless carriers with at least 10,000 subscribers in a state 
were required to report. 
1
   The Commission also collects data on wireless numbers as 
part of the data collection on Numbering Resources and Utilization/Forecasting (FCC 
Form 502).  Wireless numbers are a good proxy for wireless subscribers since wireless 
carriers generally assign only one subscriber per number.  The CTIA-The Wireless 
Association
TM
 periodically publishes summary information on the industry.  CTIA can be 
found on the Internet at www.ctia.org. 
  
            Table 11.1 and Chart 11.1 show three measures of mobile wireless subscribers 
over time. In 1984 there were 92,000 subscribers, as compared with over 217 million 
subscribers as of June 30, 2006.  Table 11.2 shows the number of wireless subscribers per 
state as of June 30, 2006 using data from FCC Form 477.  Table 11.3 provides 
information on the industry published by CTIA.  These trends include revenues, cell sites, 
employees, and average monthly bills.  The table shows that the industry had more than 
233 thousand employees as of December 31, 2005, as compared to about 3,500 
employees in 1986; and there was a significant drop in the average monthly bill from 
$96.83 at the end of 1987 to $49.98 as of December 2005. 
  
2.  Residential Wireless Toll Calling Patterns 
 
 The summary of residential wireless usage presented in Tables 11.4 through 11.7 
is based on calling data captured from a sample of consumer bills by TNS Telecoms.  
(For additional information on TNS Telecoms, see Appendix B.)  While these tables were 
constructed similar to those describing wireline toll calling patterns in Section 14, the two 
sets of tables should be compared with caution.  In most cases, wireless bills contain an 
itemization of all calls, rather than just toll calls.
2
  As a result, these tables characterize 
wireless local and long-distance calling where the tables in Section 14 only cover 
wireline long distance.  To provide some frame of reference, wireline distinctions have 
                                                 
1
 Mobile telephony service providers with fewer than 10,000 subscribers in a state 
reported about 389,000 subscribers as of June 30, 2005.  Such filers reported (on a 
voluntary basis) about 69,000 subscribers six months earlier.     
    
2
 In fact, since this analysis generally includes all outgoing wireless calls, many of the 
calls in the data are not traditional voice calls.  The data include calls made to access 
voicemail, move data, access the Internet, send faxes or text messages, etc. 
 11 - 2
been imposed on the wireless calling data.  That is, we distinguished wireless interstate 
from intrastate calls. 
 
Table 11.4 shows the estimated distribution of residential wireless calls and 
minutes over time.  The vast majority of both calls and minutes were intrastate.  Over 
time, however, this pattern is weakening.  The number of interstate calls rose from 9% to 
16% of the total from 2000 to 2005, and interstate minutes rose from 16% to 28% of the 
total over the same period.  We note that these figures are estimates, based on sample 
data, and the distribution of calls and minutes may vary across carriers. 
 
A snapshot of the duration of wireless calls is presented in Table 11.5.  In the 
2005 data shown, wireless calls were brief.  Almost 73% of intrastate wireless calls 
(which, again, represent the vast majority of calls) were 2 minutes or less.  Like wireline 
traffic, the data are right-skewed such that a handful of long calls pull the average call 
duration far above the median duration.  As a measure of central tendency, the median is 
more representative of the duration of a typical call than is the average in this context.   
 
Tables 11.6 and 11.7 show when wireless intrastate and interstate calls, 
respectively, were made.  Over the years shown, patterns in intrastate calls have changed 
only slightly.  Daytime minutes gained share from nighttime minutes (from about 70% in 
2003 to about 72% in 2005), and weekend use fell as a share of total use.  Traffic was 
typically heaviest on Friday and lightest on Sunday. 
 
 Patterns in interstate calling were different.  Unlike intrastate calls, interstate calls 
were generally most likely on the weekend, particularly on Sunday.  Further, though both 
types of calls were more likely during the day than at night, relative to intrastate calls, 
interstate calls were allocated more to the nighttime hours.  Nonetheless, the same forces 
acting to change intrastate calling patterns over the years shown seem to be having 
similar, yet more dramatic effects on interstate calling.  For example, like intrastate calls, 
the share of interstate minutes made during the day increased, from about 59% of the 
total in 2003 to 63% in 2005.  While weekend use remained flat from 2003 to 2004 at 
about 41%, the share fell to 38% in 2005. 
    
1984 December 92
1985 June 204
December 340
1986 June 500
December 682
1987 June 884
December 1,231
1988 June 1,609
December 2,069
1989 June 2,692
December 3,509
1990 June 4,369
December 5,283
1991 June 6,390
December 7,557
1992 June 8,893
December 11,033
1993 June 13,067
December 16,009
1994 June 19,284
December 24,134
1995 June 28,154
December 33,786
1996 June 38,195
December 44,043
1997 June 48,706
December 55,312
1998 June 60,831
December 69,209
1999 June 76,285
December 86,047 79,696
2000 June 97,036 90,643
December 109,478 101,043 99,019
2001 June 118,398 114,029 111,734
December 128,375 123,991 128,493
2002 June 134,561 130,751 136,927
December 140,767 138,878 141,776
2003 June 148,066 147,624 151,861
December 158,722 157,042 160,637
2004 June 169,467 167,313 170,406
December 182,140 181,105 184,819
2005 June 194,479 192,053 198,381
December 207,896 203,667 213,212
 
2006 June 219,420 217,418  NA
NA indicates not available
1 
See Industry Analysis and Technology Division, Wireline Competition Bureau,   Local Telephone Competition:
   
Status as of June 30, 2006  (January 2007).  Carriers with under 10,000 lines in a state were not required to report
   
until June 2005.
2 
 Numbers are adjusted for porting.  See current and previous editions of Industry Analysis and Technology Division,  
   Wireline Competition Bureau,  Numbering Resource Utilization in the United States .
Source:  CTIA-The Wireless Association
TM
 and FCC Forms 477 and 502.  FCC Form 502 contains assigned
               wireless numbers.
11 - 3
(In Thousands)
Table 11.1
Measures of Mobile Wireless Telephone Subscribers
FCC Form 502 
2
Reported by CTIA
Subscribers
FCC Form 477 
1
(Subscribers in Thousands)
Mobile Wireless Telephone Subscribers
As of December
Chart 11.1
0
50,000
100,000
150,000
200,000
250,000
CTIA
5,283 7,557 11,033 16,009 24,134 33,786 44,043 55,312 69,209 86,047 109,478 128,375 140,767 158,722 182,140 207,896
FCC Form 477
79,696 101,043 123,991 138,878 157,042 181,105 203,667
FCC Form 502
99,019 128,493 141,776 160,673 184,819 213,212
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
 11 - 4
 
2002 2006
Jun Jun Jun Jun Jun Dec Jun Dec Jun
Alabama 12 5 % 1,253,084 1,930,631 2,027,845 2,100,557 2,301,847 2,580,810 2,843,385 3,071,359 3,240,669
Alaska 10 1 169,892 218,424 242,133 * 307,323 321,152 340,507 376,695 397,429
American Samoa * * 0 0 0 0 * * * * *
Arizona 10 9 1,624,668 2,018,410 2,412,998 2,643,952 3,079,657 3,299,222 3,547,280 3,849,152 4,158,483
Arkansas 6 7 715,467 891,275 1,130,302 1,351,291 1,376,564 1,458,673 1,681,404 1,781,266 1,925,696
California 11 4 12,283,369 14,184,625 16,007,376 18,892,619 21,575,797 23,457,761 24,598,429 25,564,483 27,524,044
Colorado 9 10 1,654,989 1,983,405 2,247,166 2,426,929 2,727,910 2,808,195 3,053,186 3,260,286 3,442,153
Connecticut 5 6 1,136,618 1,418,367 1,577,873 1,791,944 2,064,204 2,181,133 2,332,045 2,466,372 2,585,425
Delaware 4 6 275,219 389,284 433,059 503,353 593,452 646,064 710,853 751,042 790,189
Dist. of Columbia 4 5 333,815 382,457 415,399 520,182 555,958 657,774 746,529 819,061 872,184
Florida 8 5 4,983,478 7,536,670 8,607,715 10,252,348 11,916,615 13,169,278 12,577,898 12,521,686 14,125,590
Georgia 10 6 2,687,238 4,076,119 4,300,831 4,709,288 5,332,517 5,730,223 6,023,302 6,103,234 6,891,999
Guam * 0 ****** *61,670 66,767
Hawaii 4 3 454,364 543,283 640,247 732,262 819,262 880,965 935,189 983,998 1,011,076
Idaho 15 6 296,066 398,781 500,693 572,406 653,779 705,948 777,445 838,095 905,581
Illinois 9 6 4,309,660 5,621,044 5,409,370 6,834,217 7,529,966 8,075,938 8,575,211 9,026,588 9,540,120
Indiana 8 11 1,717,378 1,781,247 2,032,290 2,456,509 2,844,568 3,158,002 3,276,910 3,536,228 3,781,322
Iowa 46 10 975,629 861,382 1,157,580 1,250,305 1,445,711 1,557,542 1,593,673 1,767,830 1,820,681
Kansas 13 10 724,024 901,225 1,061,171 1,195,230 1,345,160 1,454,087 1,538,945 1,666,340 1,771,588
Kentucky 10 10 999,544 1,176,756 1,505,982 1,595,290 2,000,459 2,189,345 2,495,494 2,649,143 2,807,061
Louisiana 8 6 1,294,693 1,677,292 2,187,811 2,365,224 2,547,153 2,834,716 2,997,513 3,258,336 3,425,482
Maine 6 12 283,640 399,616 457,835 524,246 610,533 662,623 785,814 823,242 870,197
Maryland 6 6 2,013,058 2,446,818 2,684,441 3,108,086 3,575,747 3,900,172 4,177,782 4,470,611 4,719,558
Massachusetts 5 6 2,228,169 2,753,685 3,289,934 3,506,039 3,919,139 4,042,592 4,316,120 4,544,572 4,724,175
Michigan 11 7 3,423,535 4,071,091 4,758,538 4,889,269 5,430,637 5,766,616 6,238,846 6,613,341 6,872,249
Minnesota 9 10 1,595,560 2,014,317 2,254,895 2,564,783 2,823,079 2,973,126 3,124,214 3,370,196 3,532,420
Mississippi 9 7 509,038 993,781 1,106,700 1,232,750 1,411,277 1,517,702 1,627,762 1,817,099 1,919,199
Missouri 11 8 1,848,775 1,937,684 2,246,430 2,515,325 2,859,953 3,109,167 3,482,839 3,732,549 3,942,213
Montana 7 4 * * 291,429 343,160 * * 467,795 526,954 577,149
Nebraska 8 4 600,885 712,685 838,568 900,744 984,355 1,045,810 1,078,955 1,169,068 1,208,393
Nevada 8 7 825,163 766,581 895,586 1,077,380 1,319,684 1,463,370 1,605,708 1,778,411 1,884,304
New Hampshire 6 8 309,263 445,181 529,795 598,504 686,746 727,985 916,833 989,443 1,049,150
New Jersey 4 4 2,750,024 3,896,778 4,531,457 5,392,240 6,326,459 7,388,722 7,269,330 7,723,622 8,120,504
New Mexico 10 8 395,111 619,582 735,107 828,869 939,091 987,813 1,025,143 1,170,436 1,252,943
New York 10 7 5,016,524 6,749,096 7,915,526 8,829,070 9,939,759 10,834,741 11,901,311 12,634,420 13,338,040
North Carolina 14 6 2,730,178 3,377,331 4,610,120 4,305,521 4,875,916 5,363,630 5,496,422 5,784,334 6,200,866
North Dakota 6 3 * * * * * * 388,609 454,456 481,655
Northern Mariana Isl. * * * * * * * * * * *
Ohio 12 8 3,278,960 4,255,934 4,887,376 5,659,459 6,188,081 6,627,910 7,056,675 7,571,540 8,010,972
Oklahoma 15 8 979,513 1,200,234 1,366,475 1,574,588 1,724,505 1,760,122 2,000,787 2,187,424 2,315,999
Oregon 10 8 1,082,425 1,268,909 1,473,883 1,682,036 1,894,285 2,029,224 2,128,710 2,417,992 2,567,147
Pennsylvania 10 8 3,850,372 4,378,216 4,987,067 5,681,653 6,420,037 7,037,296 7,340,862 7,881,534 8,283,918
Puerto Rico 6 1 1,090,005 1,374,747 1,136,619 1,401,599 1,698,702 2,076,698 2,002,851 2,110,798 2,170,540
Rhode Island 4 8 313,550 401,805 463,636 527,366 615,398 607,489 653,900 709,525 726,483
South Carolina 12 6 1,236,338 1,502,345 1,830,516 2,041,541 2,337,367 2,369,252 2,593,000 2,768,481 2,984,417
South Dakota 6 3 * * 292,210 344,825 382,906 428,513 435,063 482,623 515,139
Tennessee 12 7 1,876,444 2,251,208 2,660,068 2,800,735 3,171,487 3,531,286 3,791,154 4,114,401 4,401,813
Texas 30 7 6,705,423 8,294,338 9,650,715 10,776,234 12,091,134 13,092,007 14,402,814 15,620,248 16,902,077
Utah 9 6 692,006 833,492 970,854 1,094,563 1,229,029 1,345,205 1,415,896 1,531,763 1,651,606
Vermont 4 15 ****** 295,971 315,382 334,655
Virgin Islands * * 0 ****  ***
Virginia 8 6 2,447,687 3,059,420 3,429,450 3,879,582 4,392,319 4,240,462 4,900,018 5,126,216 5,382,292
Washington 10 9 2,144,767 2,493,214 2,849,043 3,102,750 3,567,896 3,770,602 3,995,325 4,177,196 4,418,314
West Virginia 10 14 347,916 452,036 549,722 579,983 713,657 761,658 821,103 858,599 964,977
Wisconsin 12 7 1,342,908 2,008,679 2,523,956 2,533,215 2,831,645 2,997,029 3,191,190 3,355,951 3,505,936
Wyoming 7 6 * 173,939 168,232 276,344 277,658 302,203 330,567 358,593 376,753
 Nationwide 160 7 % 90,643,058 114,028,928 130,751,459 147,623,734 167,313,001 181,105,135 192,053,067 203,667,472 217,418,404
2 
 Percentage of mobile wireless subscribers receiving their service from a mobile wireless reseller.
 
* Data withheld to maintain firm confidentiality.   Some data for December 2005 have been revised.
Subscribers
2004State 2003 2005
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau.  Local Telephone Competition:  Status as of June 30, 2006  (January 2007).
Table 11.2
Mobile Wireless Telephone Subscribers
1                                                                                 
1
  For data through December 2004, only facilities-based wireless carriers with at least 10,000 mobile telephony subscribers per state were required to report data, and they were 
instructed to use billing addresses to determine subscriber counts by state.  Starting with the June 2005 data, all facilities-based wireless carriers are required to report, and to use the 
area codes of telephone numbers provided to subscribers to determine subscriber counts by state.      
Jun 2006
Carriers
 1
Percent 
Resold 
2
2000 2001
 11 - 5  
Table 11.3
Mobile Wireless Telephone Service:  Industry Survey Results
(As Reported by CTIA-The Wireless Association
TM
)
Employees
1986 June 500,000 $360,585 1,194 3,556
December 681,825 462,467 1,531 4,334
1987 June 883,778 479,514 1,732 5,656
December 1,230,855 672,005 2,305 7,147 $96.83
1988 June 1,608,697 886,075 2,789 9,154 95.00
December 2,069,441 1,073,473 $89,331 3,209 11,400 98.02
1989 June 2,691,793 1,406,463 121,368 3,577 13,719 85.52
December 3,508,944 1,934,132 173,199 4,169 15,927 89.30
1990 June 4,368,686 2,126,362 192,350 4,768 18,973 83.94
December 5,283,055 2,422,458 263,660 5,616 21,382 80.90
1991 June 6,380,053 2,653,505 302,329 6,685 25,545 74.56
December 7,557,148 3,055,017 401,325 7,847 26,327 72.74
1992 June 8,892,535 3,633,285 436,725 8,901 30,595 68.51
December 11,032,753 4,189,441 537,146 10,307 34,348 68.68
1993 June 13,067,318 4,819,259 587,347 11,551 36,501 67.31
December 16,009,461 6,072,906 774,266 12,824 39,775 61.48 140
1994 June 19,283,306 6,519,030 778,116 14,740 45,606 58.65
December 24,134,421 7,710,890 1,052,666 17,920 53,902 56.21 119
1995 June 28,154,414 8,740,352 1,120,337 19,833 60,624 52.42
December 33,785,661 10,331,614 1,422,233 22,663 68,165 51.00 119
1996 June 38,195,466 11,194,247 1,314,943 24,802 73,365 48.84
December 44,042,992 12,440,724 1,465,992 30,045 84,161 47.70 125
1997 June 48,705,553 13,134,551 1,392,440 38,650 97,039 43.86
December 55,312,293 14,351,082 1,581,765 51,600 109,387 42.78 117
1998 June 60,831,431 15,286,660 1,584,891 57,674 113,111 39.88
December 69,209,321 17,846,515 1,915,578 65,887 134,754 39.43 136
1999 June 76,284,753 19,368,304 1,922,416 74,157 141,929 40.24
December 86,047,003 20,650,185 2,163,001 81,698 155,817 41.24 185
2000 June 97,035,925 24,645,365 1,971,625 95,733 159,645 45.15
December 109,478,031 27,820,655 1,911,356 104,288 184,449 45.27 255
2001 June 118,397,734 30,905,721 1,727,058 114,059 186,317 45.56
December 128,374,512 34,410,513 2,209,387 127,540 203,580 47.37 380
2002 June 134,561,370 36,707,086 1,846,267 131,350 186,956 47.42
December 140,766,842 39,801,101 2,049,245 139,338 192,410 48.40 427
2003 June 148,065,824 41,384,171 1,825,243 147,719 187,169 49.46
December 158,721,981 46,239,922 1,941,024 162,986 205,629 49.91 507
2004 June 169,467,393 49,275,671 2,015,780 174,368 212,368 49.49
December 182,140,362 52,845,539 2,194,532 175,725 226,016 50.64 584
2005 June 194,479,364 55,689,208 1,941,960 178,025 225,162 49.52
December 207,896,198 57,849,013 1,844,371 183.689 233,067 49.98 740
Source:  CTIA-The Wireless Association
TM
:  Estimates for Total Industry.
Subscribers
(Thousands)
Six-Month
Revenues
(Thousands)
Cell SitesRoamer
Service
Revenues
Month
Bill
Average
Minutes
of Use per
Average
Monthly
 11 - 6
Table 11.4
Distribution of Residential Wireless Calls and Minutes 
1
Type 2000 2001 2002 2003 2004 2005
Calls
Intrastate 87 % 84 % 82 % 82 % 82 % 81 %
Interstate 9 1 13131415
Others 
2
4 55544
Total Calls in Sample 295,892 330,444 502,946 547,767 508,799 506,072
Minutes
Intrastate 82 % 76 % 71 % 71 % 70 % 70 %
Interstate 16 22 26 27 28 28
Others 
2
2 22322
Total Minutes in Sample 760,380 952,993 1,614,341 1,797,559 1,690,428 1,717,643
1
 Outgoing, itemized calls only.
2 
Inter-, intrastate status could not be determined.
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms  ReQuest Market Monitor, 
Bill Harvesting.
Note:  Individual figures may not add to totals due to rounding.  Some previously published figures have been revised.
 11 - 7
Table 11.5
Duration of Residential Wireless Calls:  2005 
1
Duration of Call 
(Minutes)
Intrastate Interstate All Calls
1 50.0 % 40.5 % 48.5 %
2 22.8 20.4 22.5
3 8.3 7.0 8.1
4 4.5 4.4 4.5
5 2.9 3.3 3.0
6 2.1 2.6 2.1
7 1.5 2.2 1.6
8 1.2 1.9 1.3
9 0.9 1.5 1.0
10 0.8 1.4 0.9
11-15 2.3 4.9 2.7
16-20 1.1 2.9 1.4
21-25 0.6 1.9 0.8
26-30 0.3 1.3 0.5
31-45 0.5 2.2 0.7
46-60 0.2 0.8 0.3
> 60 0.1 0.8 0.2
Average Duration 3.1 5.9 3.5
Median Duration 1.1 2.0 2.0
Sample Size 384,751 73,762 458,513
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS 
Telecoms ReQuest Market Monitor, Bill Harvesting .
1
 Outgoing, itemized calls only.  All seven-digit dialed calls are considered intrastate.  800-type calls and 
calls for which a cross-state distinction could not be made were excluded from this analysis.
Note:  Individual figures may not add to totals due to rounding.
11 - 8
Table 11.6
Distribution of Residential Intrastate Wireless Minutes
By Day and Time 
1
2005
Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 10.2 % 4.0 % 14.2 %
Tuesday 10.7 4.1 14.8
Wednesday 10.9 4.1 15.0
Thursday 11.0 4.4 15.4
Friday 11.6 3.9 15.4
Saturday 9.8 3.7 13.4
Sunday 8.0 3.7 11.7
Total 72.1 % 27.9 % 100.0 %
Calls in sample = 384,751.
2004
Source:  Calculate 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 10.0 % 4.0 % 14.0 %
Tuesday 10.5 4.4 14.9
Wednesday 10.4 4.4 14.9
Thursday 10.6 4.2 14.8
Friday 11.2 4.2 15.4
Saturday 10.3 3.9 14.2
Sunday 8.0 3.8 11.8
Total 71.1 % 28.9 % 100.0 %
Calls in sample =397,124.
2003
Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 9.8 % 4.2 % 14.0 %
Tuesday 9.9 4.2 14.2
Wednesday 9.8 4.4 14.2
Thursday 10.5 4.4 14.9
Friday 11.1 4.3 15.3
Saturday 10.9 3.9 14.8
Sunday 8.4 4.3 12.6
Total 70.3 % 29.7 % 100.0 %
Calls in sample = 426,727.
Note:  Individual figures may not add to totals due to rounding.
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS 
Telecoms ReQuest Market Monitor, Bill Harvesting.
1
 Outgoing, itemized calls only.  All seven-digit dialed calls are considered intrastate.  800-type calls and 
calls for which a cross-state distinction could not be made were excluded from this analysis.
11 - 9
Table 11.7
Distribution of Residential Interstate Wireless Minutes
By Day and Time 
1
2005
Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 7.4 % 5.2 % 12.6 %
Tuesday 6.9 5.1 12.0
Wednesday 7.0 5.3 12.3
Thursday 7.2 5.1 12.3
Friday 7.9 4.8 12.7
Saturday 13.2 4.7 17.9
Sunday 13.4 6.9 20.3
Total 62.9 % 37.1 % 100.0 %
Calls in sample = 73,762.
2004
Source:  Calculate 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 6.4 % 4.8 % 11.2 %
Tuesday 6.3 5.2 11.5
Wednesday 6.9 5.4 12.2
Thursday 7.0 5.1 12.1
Friday 7.1 4.6 11.7
Saturday 14.0 5.2 19.2
Sunday 14.4 7.6 22.0
Total 62.0 % 38.0 % 100.0 %
Calls in sample = 66,332.
2003
Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 6.4 % 5.5 % 11.9 %
Tuesday 6.3 5.6 11.9
Wednesday 6.5 5.8 12.3
Thursday 6.3 5.9 12.2
Friday 6.3 4.7 11.0
Saturday 13.6 5.7 19.3
Sunday 13.6 7.9 21.5
Total 59.0 % 41.0 % 100.0 %
Calls in sample = 71,245.
Note:  Individual figures may not add to totals due to rounding.
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS 
Telecoms ReQuest Market Monitor, Bill Harvesting.
1
 Outgoing, itemized calls only.  All seven-digit dialed calls are considered intrastate.  800-type calls and 
calls for which a cross-state distinction could not be made were excluded from this analysis.
11 - 10
 12 - 1  
12 Price Indices for Telephone Services 
 
 The Bureau of Labor Statistics (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.  The following material illustrates the range of information available from price 
indices. 
 
1.  Long-Term Trends in Price Indices 
 
 A price index for telephone service was first published in 1935.  Since that time, 
telephone prices have tended to increase at a slower pace than most other prices.  Table 12.1 
shows long-term 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 being public utilities.  Chart 12.1 shows the CPI 
telephone services trend as compared to the CPI all items trend from 1955 through 2005.   
 
2.  Comprehensive Price Indices 
 
 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 local, long distance, and 
cellular services.  Beginning in 1987, the CPI for all items has consistently been higher than the 
CPI for telephone services as shown in Chart 12.1. The annual rates of change are shown in 
Table 12.2 and the associated chart for the overall CPI (which measures the impact of inflation 
on consumers) and the CPI for telephone services.  In addition, Table 12.2 shows the gross 
domestic product chain-type price index (which measures inflation throughout the economy) 
prepared by the Department of Commerces Bureau of Economic Analysis.  Chart 12.2 shows 
the annual percentage changes for the overall CPI and CPI for telephone services. 
 
3.  Price Indices for Local Service 
 
 The CPI index of local telephone charges is based on a broadly defined market basket 
that includes:  monthly service charges, message unit charges, leased equipment, installation, 
service enhancements (such as tone dialing and call waiting), taxes, and subscriber line 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 touch-tone service, and 
subscriber line charges.  It excludes taxes, charges for special services such as call waiting, and 
all other expenditures.  The annual rates of change for these indices of local costs are presented 
in Table 12.3 and Chart 12.3. 
 
4.  Price Indices for Long Distance Service 
 
 Price indices are available for intrastate toll and interstate toll services.  These series are 
also presented in Table 12.3 and Chart 12.3.
 12 - 2  
5.  Price-Index Limitations 
 
 Price indices are less reliable when industries are changing rapidly.  For example, 
in 1992, long distance carriers began to increase basic rates while greatly expanding their 
range of discount offerings.  The fixed market basket of toll calls measured for the CPI 
did not fully reflect these discounts.  In 1995, BLS made major changes to the PPI 
telephone series, and there are no data after July 1995 comparable with prior data.  
Because of these sorts of difficulties, measures of average revenues are sometimes used 
as alternatives to price indices. 
 
1955 - 2005 1995 - 2005
CPI All Items 4.1 % 2.5 %
CPI All Services 5.0 3.2 
CPI Telephone Services 
1
1.7 -0.2 
CPI Major Categories:
  -  Food & Beverages * 2.5 
  -  Housing * 2.8 
  -  Apparel 2.1 -1.0 
  -  Transportation 3.9 2.3 
  -  Medical Care 5.9 3.9 
  -  Recreation  * 1.5 
  -  Other Goods & Services * 4.2 
CPI Public Transportation 5.1 2.1 
CPI Utility (Piped) Gas Service 5.5 7.7 
CPI Electricity 3.4 1.5 
CPI Water & Sewerage Maintenance 5.6 3.7 
CPI Postage 4.7 1.8 
Source:  Bureau of Labor Statistics.
Long-Term Changes for Various Price Indices
Chart 12.1
CPI All Items and CPI Telephone Services
Base Periods:  1982-84 = 100
Table 12.1
(Annual Rates of Change) 
* Series not established until after 1955.
1
  The CPI telephone service index was revised in December of 1997.
0
50
100
150
200
250
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
CPI All Items CPI Telephone Services
 12 - 3
 
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 1.7 2.4 0.2
2003 2.0 1.9 -2.7
2004 2.9 3.3 -2.5
2005 3.1 3.4 0.4
* The CPI telephone service index was revised in December of 1997.
Sources:  Bureau of Labor Statistics and Bureau of Economic Analysis.
Table 12.2
Annual Changes in Major Price Indices
GDP Chain-Type Price 
Index
CPI - All Items CPI - Telephone Services
Percent Change in CPI All Items and CPI Telephone Services
Chart 12.2
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 the 4th quarter to 4th quarter.
-15%
-10%
-5%
0%
5%
10%
15%
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Percent Cha
n
g
e
 fro
m
 Pri
o
r Yea
r
CPI - All Items CPI - Telephone Services
 12 - 4
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
2
0.1
2
-3.8
2
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 0.8
3
-3.0 8.5
3
0.4 -0.2
3
Note: Data reflect the percent change from December of the previous year through December of the year shown.
Source:  Bureau of Labor Statistics.
CPI PPICPI PPI CPI PPI
Table 12.3
Annual Changes in Price Indices for Local and Long Distance Telephone Services
Local Residential Service
Toll Service 
1
Interstate Intrastate
3
 Preliminary and subject to revision.
1
 The 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.
2
 The PPI telephone indices were revised in June of 1995.  The series are not comparable. 
CPI Telephone Service Price Indices
Chart 12.3
Base Periods:  1982-1984 = 100
0
20
40
60
80
100
120
140
160
180
200
220
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
CPI Local Services CPI Interstate Toll CPI Intrastate Toll
 12 - 5
13-1 
13 Price Levels 
 
1.  Local Rates 
 
 The price indices maintained by the Bureau of Labor Statistics indicate 
percentage changes in the price of telephone services.  BLS does not publish actual rate 
levels.  Calculations of average rates are based on surveys by FCC staff.  These surveys 
use the same sampling areas and weights used by BLS in constructing the Consumer 
Price Index.   
 
 Table 13.1 presents average local rates for residential customers in urban areas.  
In October 2005, the average monthly charge was $24.74 while the average charge for 
connecting phone service was $42.71. 
 
 Table 13.2 presents average local rates for a business with a single phone line in 
an urban area.  In October 2005, the average monthly charge was $43.94 while the 
average charge for connecting phone service was $73.70. 
 
 Table 13.3 presents the average local rate for a residential phone line from 1940 
to 2005.  The table shows, after adjusting for inflation, the price of a local exchange line 
declined from 1940 through the early 1980s.   
 
2.  Long Distance Rates 
 
 Table 13.4 contains measures of average revenue per minute (ARPM) for long 
distance calls.  Estimates of ARPM are often used interchangeably with estimates of the 
average price.  From 1984 to 2004 the cost of long distance calling dropped from 32 
cents per minute to 8 cents per minute.  The average price of 8 cents per minute 
represents a mix of international calling (14 cents per minute) and domestic interstate 
calling (6 cents per minute).  The decline in prices since 1984 is more than 85% after 
adjusting for the impact of inflation. 
 
 Chart 13.1 shows that on a per minute basis, the cost of access and of contributing 
to universal service support has declined over time.  These declines account for much of 
the decrease in interstate toll rates. 
 
 
 
 
 
 
 
 
                                                                                  
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002  2003  2004 
1
 2005 
2
Representative Monthly Charge 
3   4
$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 $14.75
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 5.81
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
                 4                  4                  4                  4
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 4.14 4.19
    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 $24.75 $24.52 $24.74
Basic Connection Charge 
4
$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 $39.30
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
                 4                  4                  4                  4
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 3.41
    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 $42.71
Additional Charge if Drop Line and 
Connection Block Needed
        NA        NA $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 $12.45
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 $4.31
NA - Not Available.
3
 Rates are based on flat-rate service where available, and measured/message service with one hundred five-minute, same-zone, business-day calls elsewhere.  As of 2001, all 95 cities in the Urban Rates Survey offered flat-rate
  residential service, which made measuring the cost of such calls unnecessary.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (2006) .
1
 Revised.
4
 Beginning in 2002, additional monthly charges for touch-tone service are included in the monthly charge.
2
 Subject to revision.
Table 13.1
Average Residential Rates for Local Service in Urban Areas, 1986 - 2005
(As of October 15)
 13 - 3
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002  2003   2004 
1
 2005 
2
Monthly Representative Service Charge 
3
$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 $32.49
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 5.72
Extra for Touch-Tone Service 
4
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
                     4                      4                     4                     4
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 5.74
    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 $41.97 $43.49 $43.94
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 $34.15
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 6.04
Extra for Touch-Tone Service 
4
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
                     4                      4                     4                     4
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 7.71
    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 $47.90
Number of Sample Cities with Flat-Rate Service 59 56 54 54 54 53 53 53 53 54 54 54 56 52 52 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 18.02
200 Five-Minute Same-Zone Business-Day 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 17.87
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 5.66
Extra for Touch-Tone Service 
4
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
                     4                      4                     4                     4
Taxes, Including 911 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 4.72
    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 $46.27
Number of Sample Cities with Measured/Message Service 83 83 84 84 84 87 87 86 85 85 85 85 85 86 85 86 86
Cost of a Five-Minute Same-Zone Business-Day 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
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
Additional Connection Charge for Touch-Tone Service 
4
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
                     4                      4                     4                     4
Taxes, Including 911 Charges     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 6.35
    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 $73.70
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 $13.76
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 $5.73
Note:  Details may not add to totals due to rounding.
1
 Revised.
2
 Subject to revision.
3
 Rates are based on flat-rate service where available, and measured/message service with 200 five-minute, same-zone, business-day calls elsewhere.
4
 Beginning in 2002, additional monthly charges for touch-tone service are included in the monthly charge.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  Reference Book of Rates, Price Indices, and Household Expenditures for Telephone Service (2006) .
Table 13.2
Average Local Rates for Businesses with a Single Line in Urban Areas, 1989 - 2005
(As of October 15)
 13 - 4
Table 13.3
Average Rate for a Residential Access Line
 
Consumer Average Rate Consumer Average Rate 
Price for a Price for a
Index Residential Access Line Index Residential Access Line
All Urban All Urban
All Goods Survey Rate Restated All Goods Survey Rate Restated
and Services in 2005 and Services in 2005
(1982-1984 Dollars (1982-1984 Dollars
=  100) =  100)
1940 14.0 $3.67 $51.20 1978 65.2 $8.31 $24.89
1941 14.7 3.67 48.76 1979 72.6 8.40 22.60
1942 16.3 3.64 43.61 1980 82.4 8.61 20.41
1943 17.3 3.64 41.09 1981 90.9 9.16 19.68
1944 17.6 3.66 40.61 1982 96.5 10.18 20.60
1945 18.0 3.67 39.82 1983 99.6 13.58 26.63
1946 19.5 3.67 36.76 1984 103.9 15.18 28.53
1947 22.3 3.70 32.40 1985 107.6 16.26 29.51
1948 24.1 3.91 31.69 1986 109.6 17.70 31.54
1949 23.8 4.02 32.99 1987 113.6 18.18 31.25
1950 24.1 4.29 34.77 1988 118.3 18.11 29.90
1951 26.0 4.48 33.65 1989 124.0 19.05 30.00
1952 26.5 4.62 34.05 1990 130.7 19.24 28.75
1953 26.7 4.93 36.06 1991 136.2 19.77 28.35
1954 26.9 5.10 37.03 1992 140.3 19.72 27.45
1955 26.8 5.19 37.82 1993 144.5 19.95 26.96
1956 27.2 5.24 37.62 1994 148.2 19.81 26.11
1957 28.1 5.28 36.70 1995 152.4 20.01 25.64
1958 28.9 5.36 36.22 1996 156.9 19.95 24.83
1959 29.1 5.51 36.98 1997 160.5 19.88 24.19
1960 29.6 5.55 36.62 1998 163.0 19.76 23.68
1961 29.9 5.61 36.64 1999 166.6 19.93 23.36
1962 30.2 5.62 36.34 2000 172.2 20.78 23.57
1963 30.6 5.65 36.06 2001 177.1 22.62 24.94
1964 31.0 5.66 35.66 2002 179.9 24.07 26.13
1965 31.5 5.67 35.15 2003 184.0 24.75 26.27
1966 32.4 5.64 34.00 2004 188.9 24.52 25.35
1967 33.4 5.60 32.74 2005 195.3 24.74 24.74
1968 34.8 5.61 31.48
1969 36.7 5.68 30.23
1970 38.8 5.76 28.99
1971 40.5 6.04 29.13
1972 41.8 6.38 29.81
1973 44.4 6.69 29.43
1974 49.3 7.08 28.05
1975 53.8 7.32 26.57
1976 56.9 7.81 26.81
1977 60.6 8.07 26.01
 Sources:  Averages for 1940 through 1982 are from an AT&T local rate survey and represent January 1 rates.  These 
averages exclude taxes and are for rotary service including the cost of a telephone.  See Reference Book of  
Rates, Price Indices and Expenditures for Telephone Service, Wireline Competition Bureau, October 1995 and
March 2005.  Starting in 1983, averages are from the Urban Rates Survey and represent October 15 rates.  
These averages include taxes and are for touch tone service but do not include telephone rental charges or 
any unbundled inside wiring maintenance plan charges.   2005 rates are preliminary.
13 - 5
Table 13.4
Average Revenue per Minute
 
Consumer Average Revenue Per Consumer Average Revenue Per Minute for Interstate and International Calls
Price Minute for Interstate and Price Interstate and International Interstate Calls
Index International Calls Index International Calls Calls 1/  
 
All Goods Restated All Goods Restated  Net of
and Services in 2004 and Services in 2004 Access and
(1982-1984 Dollars (1982-1984 Dollars Universal
=  100) =  100) Service Cost
1930 16.7 $0.27 $3.11 1970 38.8 $0.23 $1.12 $2.43 $0.20
1931 15.2 0.27 3.35 1971 40.5 0.25 1.14 2.35 0.22
1932 13.7 0.26 3.62 1972 41.8 0.24 1.10 2.31 0.21
1933 13.0 0.28 4.00 1973 44.4 0.25 1.08 2.29 0.22
1934 13.4 0.27 3.84 1974 49.3 0.26 0.98 2.25 0.22
1935 13.7 0.27 3.66 1975 53.8 0.27 0.96 2.23 0.24
1936 13.9 0.25 3.41 1976 56.9 0.29 0.95 2.20 0.25
1937 14.4 0.22 2.84 1977 60.6 0.28 0.89 2.18 0.25
1938 14.1 0.21 2.87 1978 65.2 0.29 0.83 2.09 0.25
1939 13.9 0.22 2.93 1979 72.6 0.29 0.76 1.76 0.26
1940 14.0 0.21 2.84 1980 82.4 0.30 0.69 1.34 0.27
1941 14.7 0.21 2.67 1981 90.9 0.33 0.68 1.21 0.31
1942 16.3 0.22 2.50 1982 96.5 0.34 0.67 1.09 0.32
1943 17.3 0.21 2.30 1983 99.6 0.35 0.66 1.09 0.33
1944 17.6 0.22 2.31 1984 103.9 0.32 0.59 1.05 0.30
1945 18.0 0.21 2.23 1985 107.6 0.31 0.54 1.01 0.29
1946 19.5 0.20 1.91 1986 109.6 0.28 0.48 0.97 0.26
1947 22.3 0.19 1.62 1987 113.6 0.25 0.41 0.99 0.22
1948 24.1 0.19 1.46 1988 118.3 0.23 0.37 1.02 0.21
1949 23.8 0.19 1.50 1989 124.0 0.22 0.33 1.02 0.19
1950 24.1 0.19 1.51 1990 130.7 0.20 0.29 1.00 0.17
1951 26.0 0.20 1.46 1991 136.2 0.20 0.27 1.02 0.15
1952 26.5 0.20 1.44 1992 140.3 0.19 0.26 1.01 0.15 $0.09
1953 26.7 0.21 1.47 1993 144.5 0.19 0.25 1.02 0.15 0.09
1954 26.9 0.22 1.56 1994 148.2 0.18 0.23 0.93 0.14 0.08
1955 26.8 0.23 1.62 1995 152.4 0.17 0.21 0.91 0.12 0.07
1956 27.2 0.23 1.62 1996 156.9 0.16 0.20 0.76 0.12 0.08
1957 28.1 0.24 1.60 1997 160.5 0.15 0.17 0.69 0.11 0.06
1958 28.9 0.24 1.56 1998 163.0 0.14 0.17 0.58 0.11 0.08
1959 29.1 0.24 1.57 1999 166.6 0.14 0.16 0.54 0.11 0.08
1960 29.6 0.24 1.54 2000 172.2 0.12 0.13 0.52 0.09 0.06
1961 29.9 0.25 1.57 2001 177.1 0.10 0.11 0.35 0.08 0.06
1962 30.2 0.25 1.58 2002 179.9 0.09 0.09 0.28 0.07 0.05
1963 30.6 0.25 1.53 2003 184.0 0.08 0.08 0.20 0.07 0.05
1964 31.0 0.25 1.52 2004 188.9 0.08 0.08 0.14 0.06 0.05
1965 31.5 0.24 1.44
1966 32.4 0.24 1.42
1967 33.4 0.24 1.37
1968 34.8 0.24 1.28
1969 36.7 0.24 1.24
 Note:  Data for some prior years have been revised.
 1/ Starting in 1992, billed revenue per minute for international service differs in Table 6.1 and Table 13.4.  Data in Table 6.1 are 
calculated using all U.S. billed minutes and revenues.  Data for Table 13.4 represent charges for most U.S. billed calls that originate 
or terminate in the United States.  International-to-international revenues and reorigination, country-beyond and country-direct 
minutes are not included in this table.
 Sources:  Estimates for 1930 through 1981 are based on information in AT&T's Long Lines Statistics, 1930-1963, 1946-1970, and 1960-1981, 
and appear to represent data for the conterminous U.S. only.  Data prior to 1946 may not be comparable.  Data for 1982 and 1983 
were estimated using BLS price index changes.  Data for 1984 through 1991 were supplied by AT&T.  Starting with 1992, data are 
from the Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues 
(March 2006), available at www.fcc.gov/wcb/stats.  For 1970 through 1991, interstate revenue per minute was estimated using the 
combined interstate and international revenue per minute estimates shown in the table, and international revenue and revenue per
minute data in Table 1 and Table 2 of Trends in the International Telecommunications Industry, September 2005. 
13 - 6
Item 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Revenue per minute $0.087 $0.089 $0.078 $0.071 $0.075 $0.064 $0.077 $0.078 $0.064 $0.064 $0.052 $0.048 $0.048
  retained by carrier
Cost to carrier per minute for $0.062 $0.059 $0.058 $0.054 $0.049 $0.044 $0.037 $0.034 $0.026 $0.019 $0.018 $0.017 $0.015
  access and universal service
Chart 13.1
Revenue per Minute for Interstate Calls
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
$0.14
$0.16
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Revenue per minute retained by carrier
Cost to carrier per minute for access and universal service
 13 - 7
 
 14 - 1 
14 Residential Wireline Usage 
 
 Bill Harvesting data collected by TNS Telecoms provides information on actual 
usage in the residential telecom market as collected from the actual telecommunications 
bills of households.  TNS Telecoms (TNS), a telecommunications market information 
firm, conducts nationwide surveys and Bill Harvesting on a quarterly basis from over 
120,000 households each year.  These surveys, in which households are asked to mail 
copies of their phone bills for one month to TNS, are called Bill Harvesting studies.  The 
company has donated databases containing information on residential phone usage to the 
Commission. 
 
 The Bill Harvesting data reflect calls itemized on residential telephone bills for 
wireline service.  Thus, 800 and 800-like calls made from the residence are not included, 
nor are collect calls made from the residence.  In contrast, 800 and 800-like calls 
received, and shown on the household monthly bill, are included, as are collect calls 
received. 
 
 Table 14.1 shows the percentage of residential wireline long distance telephone 
usage that is intrastate, interstate and international.  In 2005, 36% of residential toll phone 
calls were interstate as opposed to 47% of minutes.  Table 14.2 shows the average 
number of toll minutes on residential phone bills that are intrastate, interstate and 
international from 1995-2005. 
 
 Table 14.3 shows the distribution of residential wireline long distance calls by call 
duration.  The average interstate residential call lasts about nine minutes, although about 
41% of interstate toll calls last one minute or less.  Tables 14.4 and 14.5 show the 
duration and the average distance (sometimes called length of haul) of residential 
wireline intrastate and interstate long distance calls, respectively.  The average distance 
of an interstate toll call in 2005 was 759 miles, as opposed to 55 miles for an intrastate 
toll call. 
 
Table 14.6 shows the percentage of residential wireline long distance minutes by 
day of week and time of day.  Over the past three years, these data indicate that interlata 
wireline traffic has been slowly moving away from nights and weekends. 
 
Type 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Calls
  IntraLATA-Intrastate 41 % 40 % 38 % 38 % 39 % 39 % 42 % 44 % 45 44 44 %
 InterLATA-Intrastate 19 18 19 19  18  17  18  17  17 17 16  
  IntraLATA-Interstate 11111111111
  InterLATA-Interstate 37 35 37 36 37 36 36 34 33 34 35
  International 11111111222
  Others
1
25544522222
Total Calls in Sample 197,787 165,465 483,685 578,850 474,408 538,337 456,328 427,781 340,763 312,918 265,194
Minutes       
  IntraLATA-Intrastate 28 % 29 % 27 % 27 % 28 % 29 % 30 % 32 % 35 32 32 %
  InterLATA-Intrastate 18 18 18 18 17 17 18 18 16 17 16
  IntraLATA-Interstate 11111111111
  InterLATA-Interstate 50 47 49 49 49 47 48 46 44 46 46
  International 21112222233
  Others
1
144335 11111 
Total Minutes in Sample 1,493,674 1,210,675 3,673,315 4,330,888 3,544,905 4,030,643 3,319,982 2,992,644 2,308,266 2,088,773 1,766,565
Note:  Figures may not add to totals due to rounding.
1
 Toll-free (800, 888, 877, 866) calls billed to residential customers, 900 calls and calls that cannot be classified.
Type 1998 1999 2000 2001 2002 2003 2004 2005
  IntraLATA-Intrastate 40   41    41   40   36   33   32   28   25   18   17   
  InterLATA-Intrastate 26   26    27   26   23   19   19   16   12   10   8   
  IntraLATA-Interstate 1   1    1   1   1   1   1   1   1   1   0   
  InterLATA-Interstate 71   67    73   71   65   55   51   41   31   26   24   
  International 3   1    2   2   2   2   2   2   2   2   2   
  Others
1
1   6   6   5   4   5   1   1   1   1   0   
  All Types 143   143    149   144   131   116   105   90   71   56   51   
Note:  Figures may not add to totals due to rounding.
1
 Toll-free (800, 888, 877, 866) minutes billed to residential customers, 900 minutes and minutes for calls that cannot be classified.
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor, Bill Harvesting.
Table 14.1
Distribution of Residential Wireline Toll Calls and Minutes
Table 14.2
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms ReQuest Market Monitor, Bill Harvesting.
Average Residential Wireline Monthly Toll Minutes
1995 1996 1997
 14 - 3
Duration of Call 
(Minutes)
Intrastate Interstate All Calls
  1 48.0 % 40.7 % 45.2 %
  2 14.4 11.1 13.2
  3 7.6 5.9 6.9
  4 4.8 4.1 4.5
  5 3.4 3.4 3.4
  6 2.6 2.8 2.7
  7 2.1 2.4 2.2
  8 1.7 2.1 1.9
  9 1.4 1.8 1.6
10 1.4 2.1 1.7
11-15 4.2 6.6 5.2
16-20 2.5 4.4 3.2
21-25 1.6 3.1 2.2
26-30 1.1 2.3 1.5
31-45 1.7 3.9 2.5
46-60 0.7 1.7 1.1
> 60 0.7 1.7 1.1
Average Duration 5.4 8.8 6.7
Median Duration
2.0 2.0 2.0
Sample Size
151,343 93,495 244,838
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms 
ReQuest Market Monitor, Bill Harvesting.
Table 14.3
Distribution of Residential Wireline Long Distance Call Durations:
1
 The sample includes domestic, directly-dialed calls.
2005 
1
14 - 4
 Duration Distance
(In Minutes) (In Miles)
 Average Median Average Median
1995 6.0             2.0              53              26              
1996 6.0             2.0              55              28              
1997 6.2             2.0              56              28              
1998 6.0             2.0              55              29              
1999 6.0             2.0              54              29              
2000 6.1             2.0              54              28              
2001 5.9             2.0              53              29              
2002 5.6             2.0              52              28              
2003 5.6             2.0              51              28              
2004 5.3             2.0              56              30              
2005 5.4             2.0              55              29              
 Duration Distance
(In Minutes) (In Miles)
 Average Median Average Median
1995 10.6             4.0              689              507              
1996 10.0             4.0              670              473              
1997 10.3             4.0              695              480              
1998 10.3             4.0              691              493              
1999 10.0             3.9              693              501              
2000 10.0             4.0              706              524              
2001 9.7             3.0              686              501              
2002 9.4             3.0              692              489              
2003 8.9             3.0              684              481              
2004 8.9             2.0              721              525              
2005 8.8             2.0              759              568              
Table 14.5
Duration and Distance of Interstate Toll Calls 
1
Source:  Calculated by Industry Analysis and Technology Division staff using survey data 
from TNS Telecoms ReQuest Market Monitor, Bill Harvesting.
1
 Direct-dial calls carried by long distance carriers and local exchange carriers.  Includes only 
domestic calls.
Duration and Distance of Intrastate Toll Calls 
1
Table 14.4
Source:  Calculated by Industry Analysis and Technology Division staff using survey data 
from TNS Telecoms ReQuest Market Monitor, Bill Harvesting.
1
 Direct-dial calls carried by long distance carriers and local exchange carriers.  Includes only 
domestic calls.
 14 - 5
2005
Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 8.9 % 5.6 % 14.6 %
Tuesday 8.5 5.2 13.6
Wednesday 8.4 5.4 13.8
Thursday 8.7 5.4 14.1
Friday 8.6 4.3 13.0
Saturday 9.6 4.1 13.7
Sunday 11.3 6.0 17.2
Total 64.0 % 36.0 % 100.0 %
Based on a sample of 133,257 directly-dialed, interLATA calls.
2004
Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 8.6 % 5.8 % 14.4 %
Tuesday 8.2 5.7 13.8
Wednesday 8.1 5.5 13.5
Thursday 8.9 5.7 14.6
Friday 8.1 4.5 12.6
Saturday 9.5 4.0 13.5
Sunday 11.4 6.1 17.4
Total 62.8 % 37.2 % 100.0 %
Based on a sample of 158,529 directly-dialed, interLATA calls.
2003
Day 7:00 AM - 6:59 PM 7:00 PM - 6:59 AM Total
Monday 8.3 % 5.7 % 14.1 %
Tuesday 8.0 5.6 13.6
Wednesday 8.6 5.8 14.4
Thursday 8.1 5.6 13.7
Friday 7.8 4.2 12.0
Saturday 9.7 4.0 13.7
Sunday 11.9 6.6 18.5
Total 62.4 % 37.6 % 100.0 %
Based on a sample of 167,836 directly-dialed, interLATA calls.
Note:  Individual figures may not add to totals due to rounding.
Source:  Calculated by Industry Analysis and Technology Division staff using survey data from TNS Telecoms 
ReQuest Market Monitor, Bill Harvesting.
Table 14.6
Distribution of Residential Wireline Long Distance Minutes
By Day and Time
14 - 6
15 - 1 
15 Revenues 
 
In 1993, the Commission required all carriers with interstate revenues to begin 
filing an annual Telecommunications Relay Service (TRS) Fund Worksheet.  Because 
revenues derived from providing access to the interstate network are considered to be 
interstate, virtually all carriers were required to file information.  Starting in 1997, larger 
carriers were required to file Universal Service Fund (USF) worksheets, which contain 
similar information but with breakouts for revenues from service provided for resale and 
for service provided to end users.  End-user revenues include revenues associated with 
services to end users and do not include resale (carriers carrier) revenues. Carrier's 
carrier revenues are sales of telecommunications to universal service contributors for 
resale in the form of telecommunications.  Filers report all other revenues as end-user 
revenues.
1
  On April 1, 2000, carriers first filed an FCC Form 499-A 
Telecommunications Reporting Worksheet to report prior year revenue data for TRS, 
USF, North American Numbering Planning Administration, and local number portability 
contribution purposes.  The FCC Form 499-A superseded the older reporting 
requirements and is now filed to satisfy carrier registration requirements at the 
Commission as well.  
 
Table 15.1 shows the major components of telecommunications revenues from 
1997 to the present:  carriers carrier revenues and end-user revenues for local, wireless, 
and toll service.  Chart 15.1 shows the trend of the end-user revenue percentages for 
local, wireless and toll services.  Table 15.2 shows how revenues by type of service have 
changed over time.  Table 15.3 shows the number of telecommunications service 
providers by principal type of business.  The publication Telecommunications Provider 
Locator (March 2006 edition) lists carriers that filed a FCC Form 499-A worksheet in 
2005.  It also contains an address and contact telephone number for each carrier. Table 
15.4 contains revenues for eleven years through 2004 by type of carrier.  Additional 
revenue detail can be found in the latest Telecommunications Industry Revenues report 
(March 2006 edition). 
 
State-level telephone revenues are estimated using data from various editions of 
Telecommunications Industry Revenues, Statistics of Communications Common Carriers, 
Local Telephone Competition, and access filings to the FCC. 
2
  The carriers also file 
                                                 
1
 Carrier's carrier revenues and end-user revenues are defined in the FCC Form 499 instructions.  
Carrier's carrier revenues includes, for example, most access services that local exchange carriers 
provide to toll carriers.  Sales to de minimis carriers and to others that are exempt from universal 
service contribution requirements, however, must be classified as end-user revenues.  Filers 
contribute to the universal service funding mechanism based on types of end-user revenues. 
 
2
 See Industry Analysis and Technology Division, Wireline Competition Bureau, Monitoring 
Report (various issues),  Industry Analysis Division, Common Carrier Bureau, State-by-State 
Telephone Revenues and Universal Service Data (various issues).  Estimates for 2004 use a 
similar methodology as those used in 2003. 
 
15 - 2 
quarterly data reported on form 499Q.  
 
Table 15.5 provides estimates of telecommunications revenues by state for 1995 
to 2004. Table 15.6 provides estimates of end-user and carriers carrier revenues by state 
for 2004.  Tables 15.7 and 15.8 provide estimates of telecommunications revenues for 
incumbent local exchange carriers, competitive local exchange carriers, and mobile 
wireless carriers by state; as well as estimates for subscriber line charges, access, and toll 
services. 
Table 15.1
Telecommunications Industry Revenues 
1
(Dollar Amounts Shown in Millions)
Preliminary 5/   
           1997            1998            1999           2000           2001           2002 2003 2004 2005
 Carrier's Carrier Revenues 
2
Local Service 
3
$28,289 $29,374 $33,156 $36,621 $40,108 $38,412 $37,742 $38,546 $38,734
Wireless Service 2,752 3,060 4,652 5,144 6,180 5,020 4,465 4,164 6,604
Toll Service 11,598 13,448 14,934 21,849 19,999 16,476 18,205 15,703 15,961
Intrastate 16,201 18,892 22,293 25,553 27,848 25,770 24,825 25,852 26,971
Interstate and International 
4
26,562 27,114 30,449 38,060 38,439 34,138 35,587 32,561 34,327
    Total 42,639 45,882 52,742 63,613 66,287 59,907 60,412 58,413 61,298
 End User Revenues 
2
Local Service 
3
69,137 75,189 78,608 84,526 87,704 88,712 86,474 83,407 82,771
Wireless Service 30,199 33,714 43,843 56,857 68,507 76,501 85,254 94,404 100,869
Toll Service 89,193 91,607 93,311 87,767 79,302 67,222 58,983 55,511 47,801
Intrastate 117,454 123,216 134,919 147,465 155,347 154,815 150,889 153,265 154,306
Interstate and International 
4
70,952 77,170 80,844 81,685 80,165 77,619 79,822 80,057 77,135
    Total 188,406 200,386 215,763 229,149 235,513 232,434 230,711 233,322 231,441
 Total Revenues
Local Service 
3
97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953 121,504
Wireless Service 32,951 36,775 48,495 62,000 74,687 81,521 89,718 98,568 107,473
Toll Service 100,791 105,055 108,246 109,615 99,301 83,697 77,188 71,214 63,762
Intrastate 133,655 142,108 157,212 173,018 183,195 180,585 175,714 179,117 181,277
Interstate and International 
4
97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,617 111,462
    Total $231,168 $246,392 $268,505 $292,762 $301,800 $292,341 $291,123 $291,734 $292,739
 Note:  Detail may not add to totals due to rounding.
 1  
Data include revenues for de minimis  filers as well as for other carriers that are exempt from universal service contribution requirements.
 2
 Carrier's carrier revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale.  This includes, for example, access services 
   that local exchange carriers provide to toll carriers.  Sales to  de minimis resellers, end-user customers, governments, non-profits, and any other non-contributors are 
   treated as end-user revenues.  Filers contribute to the universal service funding mechanisms based on their end-user revenues.
 4
 Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table, but are not included in the 
 5
 Preliminary 2005 data are based on FCC Form 499-Q quarterly filings.  Companies that do not contribute to universal service are not required to make these filings.  
   The quarterly filings include preliminary data for the just closed quarter and projections for the coming quarter, and therefore are not as accurate as the subsequent 
   annual filings.  Also, FCC Form 499-Q filers do not separate revenue by type of service.  Therefore, revenue totals by service type for 2005 are based on type of
   filer rather than on data filed by service.
 Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  Telecommunications Industry Revenues  (March 2006), except as noted.
End-User Telecommunications Revenues
   universal service contribution base. 
 3
 Payphone revenues are included with local service revenues in this table.
Chart 15.1
1997
Toll 
Service
47.3%
Wireless 
Service
16.0%
Local 
Service
36.7%
2005
Toll Service
20.7%
Local Service
35.8%
Wireless Service
43.6%
 15 - 3
Table 15.2
Telecommunications Revenues Reported by Type of Service
(Dollar Amounts Shown in Millions)
TRS Data Universal Service & FCC Form 499-A
TRS Data Data
Telecommunications Revenues 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Local Exchange $42,245 $45,194 $48,717 $53,771 $59,245 $64,940 $69,947 $72,346 $71,320 $70,606 $68,238
Pay Telephone  1/ 2,182 2,536 2,218 1,932 1,585 1,192 1,063 1,002
Local Private Line  2/ 1,138 1,226 1,616 8,282 10,403 12,914 16,864 21,966 23,070 22,415 23,840
Other Local  3/ 1,407 3,233 2,674 2,847 2,179 2,501 3,249 3,391 3,418 3,242 2,944
Subscriber Line Charges  2/ 7,310 7,597 7,829 8,327 11,052 10,826 11,563 12,127 12,758 12,136 11,715
Access  2/ 25,449 26,314 27,812 21,423 18,449 18,105 17,017 15,096 13,955 12,972 12,352
Universal Service Surcharges on 
     Local Service Bills  4/ 103 260 575 1,301 1,410 1,783 1,862
Additional Revenues from
    TRS Worksheets 595 595
    Total Local Service Revenues 77,548 83,564 88,647 97,426 104,563 111,764 121,147 127,812 127,123 124,216 121,953
Wireless Service 12,863 16,883 23,444 32,760 36,240 48,117 61,505 74,006 80,678 88,023 96,450
Universal Service Surcharges on 
     Local Service Bills  4/ 345 379 495 681 842 1,696 2,118
Additional Revenues from
    TRS Worksheets 189 189
      Total Wireless Service Revenues 12,863 16,883 23,444 32,950 36,775 48,495 62,000 74,687 81,521 89,718 98,568
Operator  1/ 10,539 11,170 10,975 12,002 12,205 10,049 11,406 10,389 7,902 6,567 6,542
Non-Operator Switched Toll 61,468 65,217 73,751 72,059 74,168 78,389 75,183 65,325 54,475 50,178 46,387
Long Distance Private Line 9,043 9,719 10,665 10,504 11,952 13,169 16,189 16,402 15,108 15,316 13,906
Other Long Distance 3,428 3,523 4,299 4,695 3,386 3,656 3,372 3,259 2,445 2,222 1,801
Universal Service Surcharges on 
     Local Service Bills  4/ 1,810 2,983 3,467 3,927 3,767 2,905 2,577
Additional Revenues from
    TRS Worksheets 1,532 1,532
      Total Toll Service Revenues 84,478 89,629 99,691 100,793 105,055 108,246 109,615 99,301 83,697 77,188 71,214
  Total Telecommunications Revenues  3/ 174,890 190,076 211,782 231,168 246,392 268,505 292,762 301,799 292,341 291,122 291,735
Non-Telecommunications Revenues  3/ 8,324 9,071 10,474 25,633 27,944 33,144 42,261 48,036 60,406 65,186 71,493
  Total Reported Revenues 183,214 199,147 222,256 256,801 272,019 301,648 335,023 349,835 352,747 356,308 363,227
Service Reported as:
Intrastate  3/ 102,603 112,923 127,849 133,654 142,108 157,212 173,018 183,195 180,585 175,714 179,129
Interstate and International 80,611 86,224 94,407 97,514 104,284 111,293 119,745 118,605 111,756 115,409 112,605
  Total Telecommunications Revenues  3/ $183,214 $199,147 $222,256 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734
 Note:  Detail may not add to totals due to rounding. 
 1/ TRS filers generally reported pay telephone revenues as local service revenues, access revenues or operator toll revenues.  The Universal Service
and FCC Form 499-A Worksheets contain a separate category for payphone coin revenues.  Starting in 1997, payphone revenues include payphone 
compensation received from toll carriers.
 2/ TRS Worksheet filers generally reported special access revenues as access revenues.  Reporting changes implemented with the Universal Service 
Worksheet explain the increase in local private line revenues and the fall in access revenues shown for 1997.  TRS Worksheet filers included 
subscriber line charges  with other access charges.  For the years 1994 - 1996, these revenues have been disaggregated by assuming that the 
end-user access revenues in Table 4.2 of Statistics of Communications Common Carriers represents 93% of industry total subscriber line charge 
revenues.  Universal Service Worksheet filers report subscriber line charges in a separate category.  The increase from 1997 to 1998 represents 
PICC charges levied by ILECs as well as $1.2 billion of PICC pass-through charges levied by toll carriers.
  3/ Significant amounts of enhanced services, billing and collection, CPE and other non-telecommunications revenues were reported in the TRS mobile 
and other local service categories through 1996.  Universal Service Worksheet filers report these revenues in the non-telecommunications category.  
For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were estimated as 70% of the amounts that 
Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and account 5280, respectively) and 10% of 
amounts reported as mobile service revenues.  These amounts have been removed from Other Local and moved to the Non-Telecommunications category.
  4/ Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless 
and toll revenues.  Reported amounts are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll 
intrastate and interstate revenues by type of carrier.
  Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues  (March 2006). 
15 - 4
Table 15.3
Number of Interstate Telecommunications Providers
By Principal Type of Business
Service Provider Category  1/  2/ 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Incumbent Local Exchange Carriers (ILECs)  3/ 1,347 1,347 1,376 1,410 1,348 1,318 1,335 1,335 1,310 1,303 1,304
Competitive Access Providers (CAPs)
    and Competitive Local Exchange
    Carriers (CLECs) 30 57 94 129 212 298 479 511 451 601 690
Local Reselers 8115473105132100 100 136
Other Local Exchange Carriers 17 7 10 23 23 26 64 72 92
    Total:  Competitors of ILECs 30 57 119 147 276 394 607 669 615 773 918
      Total:  Fixed Local Service Providers 4/ 1,377 1,404 1,495 1,557 1,624 1,712 1,942 2,004 1,925 2,076 2,222
Payphone Providers 197 271 533 509 615 704 699 751 606 605 642
Wireless Telephony Including Cellular, 
    Personal Communications Service 
    (PCS) and SMR Telephony Carriers 790 792 853 732 808 784 783 670 422 413 396
Paging & Messaging Service 117 138 200 137 303 391 425 425 346 347 360
Specialized Mobile Radio (SMR) 
    Dispatch 163 99 119 199 191 182 138 155 172
Wirels Dat Service Providers and 1 128453129212435
    Other Mobile Service Providers
    Total:  Wireless Service Providers 907 930 1,217 969 1,258 1,419 1,430 1,306 927 939 963
Interexchange Carriers (IXCs) 97 130 149 151 171 178 212 233 229 232 257
Operator Service Providers (OSPs) 292527322415201918 17 19
Prepaid Calling Card Providers 8 16 18 20 18 23 27 27 50 67
Satellite Service Carriers 22 13 13 17 25 34 33 40 40
Toll Resellers 206 260 345 340 388 406 493 558 574 642 751
Other Tol Cariers 343028153117356951 45 70
    Total:  Toll Service Providers 366 453 587 569 647 651 808 940 932 1,026 1,204
        All Filers 2,847 3,058 3,832 3,604 4,144 4,486 4,879 5,001 4,390 4,646 5,031
1/ Filers are asked to select for themselves a service provider category that best describes their operations.  The choices have
changed over the years; for example, most satellite service providers identified themselves as other toll carriers in their 1997 
TRS worksheets because that worksheet did not contain a separate category for satellite satellite service providers.  Starting 
with the filings that included 2003 revenues, filers were able to identify up to five service provider types.  Counts starting 2003 
are based on the category selected as best describing the provider's operations.  
2/ Counts are based on the numbers of filers actually reporting revenues.  Counts dropped in 2002 because many affiliated filers
were permitted to make consolidated filings.
3/ Fewer incumbent local exchange carriers filed in 1998 than in 1997 because of consolidation of study areas.    
4/ The total number of local service providers shown in Table 8.7 differs from the total fixed local service providers shown in 
Table 15.3 because the number shown in Table 8.7 includes filers that self identify as mobile or toll providers, but that report 
some local exchange service revenues.  The number of telecommunications providers shown in Table 15.3 also differs from 
the numbers shown in Table 5.3 because Table 5.3 includes all filers, including new filers that reported no revenues for the 
year shown.
Source:  Data filed on FCC Forms 431, 457, and 499-A worksheets.  See also:  Industry Analysis and Technology Division, Wireline
Competition Bureau, Telecommunications Industry Revenues (March 2006) and Telecommunications Provider Locator 
       (March 2006), available at http://www.fcc.gov/wcb/stats.
15 - 5
Table 15.4
Gross Revenues Reported by Type of Carrier
(Dollars Shown in Millions)
TRS Worksheet Data  Universal FCC Form 499 Data
 Service  
 & TRS Data  
Service Provider Category  1/    1994    1995    1996    1997    1998    1999    2000   2001   2002   2003 2004
Incumbent Local Exchange Carriers  2/ $91,527 $95,612 $100,021 $105,154 $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 $105,496
Competitive Access Providers (CAPs)
    and Competitive Local Exchange
    Carriers (CLECs) 281 623 1,011 1,919 3,348 5,652 9,814 12,998 13,043 15,509 15,112
Local Resellers 206 410 511 879 1,393 1,538 721 1,215
Other Local Exchange Carriers 157 36 171 11 329 406 338 245
Private Carriers 112 147 87 39 15 281 267 532
Shared-Tenant Service Providers 87 93 87 202 46 42 22 22
    Total:  Competitors of ILECs 281 623 1,011 2,481 4,034 6,508 10,945 14,781 15,309 16,857 17,126
        Total:  Fixed Local Service Providers 91,807 96,235 101,032 107,634 112,268 118,725 127,103 132,666 130,300 126,337 122,622
        Total:  Payphone Providers 300 349 357 933 1,101 1,213 972 836 641 523 445
Wireless Telephony Including Cellular, 11,933 15,488 21,400 29,944 33,139 46,513 59,823 71,887 78,568 88,168 98,329
    Personal Communications Service 
    (PCS) and SMR Telephony Carriers  2/
Paging & Messaging Service  2/ 2,861 3,161 3,232 3,102 2,197 1,473 1,007 872
Specialized Mobile Radio (SMR) 186 191 214 206 33 46
    Dispatch 
Wireless Data Service Providers and 845 1,277 1,909 225 731 221 164 110 220 135 218
    Other Mobile Service Providers
       Total:   Wireless Service Providers 12,777 16,765 23,310 33,030 37,032 50,152 63,280 74,596 80,467 89,342 99,465
Interexchange Carriers (IXCs) 66,381 70,938 79,057 79,080 83,443 87,570 87,311 81,272 68,146 61,246 51,589
Operator Service Providers (OSPs) 536 500 461 603 590 337 635 611 554 567 523
Prepaid Calling Card Providers 16 238 519 888 866 727 133 460 812 1,635
Satellite Service Carriers 1,011 475 280 336 373 406 663 721
Toll Resellers 2,840 4,220 6,564 8,010 9,885 9,211 10,641 8,797 9,279 9,294 12,192
Other Toll Carriers 709 773 577 348 710 150 1,758 2,516 2,089 2,339 2,543
        Total:  Toll Service Providers 70,466 76,447 86,896 89,570 95,992 98,414 101,407 93,702 80,934 74,920 69,204
Adjustments  3/ (461) 280 18700000000
       Total Telecommunications Revenues $174,890 $190,076 $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734
  1/ Filers are asked to select for themselves a service provider category that best describes their operations.  The choices have changed over the years.  For 
example, most satellite service providers identified themselves as other toll carriers in their 1997 Form 431 TRS worksheets because that worksheet did 
not contain a separate category for satellite service providers.  For 2003 and 2004, some filers identified themselves as all distance carriers.  These filers 
have been reclassified to be consistent with prior classifications.
  2/ Significant amounts of enhanced service, billing and collection, CPE and other non-telecommunications revenues were reported on TRS worksheets by 
incumbent local exchange carriers (ILECs) and wireless carriers through 1996.  Universal Service Worksheet filers report these revenues in the 
non-telecommunications category.  For prior years, the amounts of non-telecommunications revenues reported as mobile and other local revenues were 
estimated as 70% of the amounts that Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (then reported as account 5200 and 
account 5280, respectively) and 10% of amounts reported as mobile service revenues.  These amounts have been removed from incumbent local 
exchange carrier totals.
  3/ Adjustments include some amounts withheld to preserve confidentiality and revisions made after the initial publication of the data. 
 Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2006). 
15 - 6
Alabama $2,668 $2,946 $3,205 $3,394 $3,712 $4,008 $4,314 $4,052 $4,196 $4,318
Alaska 464 518 561 590 664 717 770 778 816 823
American Samoa NA NA NA NA NA NA 13 13 13 15
Arizona 2,842 3,249 3,667 3,958 4,359 4,972 5,205 5,045 4,898 4,974
Arkansas 1,534 1,719 1,885 2,005 2,303 2,315 2,593 2,486 2,470 2,592
California 22,379 25,100 27,236 28,692 29,384 33,577 35,398 34,838 34,098 34,303
Colorado 3,128 3,526 4,006 4,260 4,826 5,290 5,515 5,308 5,013 4,984
Connecticut 2,765 2,943 3,266 3,173 3,405 3,924 4,020 3,854 3,884 3,821
Delaware 492 567 627 685 788 875 883 877 874 946
District of Columbia 886 955 1,049 1,085 1,581 1,648 1,383 1,343 1,337 1,296
Florida 11,582 12,972 14,161 15,042 17,223 18,308 18,849 18,223 18,613 20,003
Georgia 5,335 6,004 6,849 7,469 8,479 8,919 9,627 9,371 9,433 9,415
Guam NA 85 97 103 99 108 122 119 123 130
Hawaii 775 841 930 969 1,009 1,177 1,207 1,200 1,212 1,196
Idaho 791 908 967 1,010 1,092 1,210 1,245 1,244 1,237 1,223
Illinois 7,916 8,920 10,069 10,948 11,983 13,516 12,860 12,110 11,928 11,809
Indiana 3,804 4,192 4,536 4,810 5,099 5,552 5,524 5,385 5,292 5,298
Iowa 1,888 2,039 2,163 2,268 2,441 2,340 2,652 2,549 2,711 2,559
Kansas 1,829 2,017 2,165 2,304 2,588 2,571 2,656 2,479 2,473 2,436
Kentucky 2,353 2,629 2,861 3,060 3,426 3,573 3,665 3,301 3,307 3,634
Louisiana 2,703 2,946 3,192 3,432 3,913 3,964 4,274 4,185 4,232 4,278
Maine 869 976 996 1,105 1,195 1,328 1,387 1,365 1,359 1,353
Maryland 3,767 4,234 4,625 4,911 5,176 5,783 6,202 6,033 6,073 6,163
Massachusetts 4,988 5,455 6,010 6,338 6,561 7,428 7,367 7,121 6,983 6,897
Michigan 6,444 7,246 7,983 8,523 9,530 9,937 9,889 9,450 9,352 8,897
Minnesota 3,064 3,461 3,864 4,115 4,617 4,877 4,934 4,772 4,682 4,578
Mississippi 1,584 1,734 1,877 2,017 2,283 2,486 2,633 2,578 2,676 2,768
Missouri 3,623 4,017 4,389 4,613 5,442 5,688 6,067 5,436 5,676 5,522
Montana 640 709 756 780 897 937 903 907 911 897
Nebraska 1,296 1,428 1,540 1,587 1,737 1,760 1,865 1,796 1,799 1,744
Nevada 1,099 1,324 1,489 1,592 1,884 1,954 2,160 2,163 2,267 2,348
New Hampshire 989 1,118 1,208 1,246 1,313 1,429 1,419 1,399 1,373 1,362
New Jersey 7,091 7,927 8,707 9,366 9,558 10,670 10,689 10,251 10,054 10,258
New Mexico 1,121 1,262 1,370 1,433 1,518 1,515 1,656 1,631 1,706 1,767
New York 14,983 16,026 17,120 17,935 19,700 20,903 21,771 21,148 20,660 19,593
North Carolina 5,394 6,104 6,613 7,297 8,006 8,619 8,811 8,368 8,321 8,482
North Dakota 481 587 596 599 660 731 699 678 641 630
Northern Mariana Islands 15 18 21 30 34 32 43 46 44 44
Ohio 7,457 8,219 8,823 9,396 9,952 10,902 10,708 10,351 10,419 10,489
Oklahoma 1,996 2,179 2,410 2,552 2,727 2,915 3,116 3,100 3,210 3,169
Oregon 2,238 2,502 2,720 2,905 3,123 3,159 3,480 3,381 3,337 3,356
Pennsylvania 7,961 8,867 9,588 10,309 10,770 12,200 12,578 12,274 12,087 12,063
Puerto Rico 1,244 1,405 1,606 1,467 2,051 1,971 2,598 2,168 2,456 2,354
Rhode Island 686 761 839 859 946 1,012 989 978 965 980
South Carolina 2,653 2,849 3,053 3,393 3,790 4,047 4,147 4,142 4,187 4,124
South Dakota 488 584 602 635 716 763 712 690 668 667
Tennessee 3,467 3,880 4,302 4,553 4,928 5,256 5,574 5,409 5,466 5,442
Texas 12,871 14,563 15,943 17,576 19,032 21,405 21,617 21,549 21,508 21,610
Utah 1,112 1,284 1,443 1,557 1,790 1,998 2,090 2,016 1,986 2,003
Vermont 424 547 575 602 684 717 659 640 629 590
Virgin Islands 74 93 101 109 122 129 145 157 172 190
Virginia 5,061 5,646 6,179 6,576 7,020 8,013 8,506 8,174 8,107 8,074
Washington 3,995 4,438 4,613 5,080 5,703 6,253 6,260 6,215 6,090 6,172
West Virginia 1,143 1,240 1,337 1,383 1,437 1,625 1,735 1,671 1,674 1,707
Wisconsin 3,258 3,621 3,927 4,234 4,719 5,195 5,027 4,976 4,859 4,821
Wyoming 366 402 449 462 513 563 587 552 567 567
  Total $190,076 $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $291,123 $291,734
NA - Not Available.  
Note:  Figures may not add to totals due to rounding.
Table 15.5
Total Telecommunications Revenues by State
(Dollar Amounts Shown in Millions)
2003 2004
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  Monitoring Report (various issues) and Industry Analysis Division, Common 
Carrier Bureau, State-by-State Telephone Revenue and Universal Service Data (various issues).
19991995 1996 1997 1998 2000 2001 2002 
 15 - 7
Table 15.6
Telecommunications Revenues by State:  2004
(Dollar Amounts Shown in Millions)
 End User Carrier's Carrier Total:  End User + Carrier's Carrier
 Percent
Interstate Intrastate Total Interstate Intrastate Total Interstate Intrastate Total of Total
Alabama $1,155    $2,327    $3,481    $466    $371    $837    $1,621    $2,697    $4,318    1.48 %
Alaska 267    383    650    109    65    173    376    447    823    0.28
American Samoa 2    10    12    1    2    3    3    12    15    0.01
Arizona 1,526    2,487    4,014    586    374    960    2,112    2,861    4,974    1.70
Arkansas 710    1,353    2,063    299    230    529    1,010    1,582    2,592    0.89
California 8,685    18,708    27,393    3,448    3,462    6,910    12,133    22,170    34,303    11.76
Colorado 1,473    2,484    3,957    626    401    1,027    2,099    2,885    4,984    1.71
Connecticut 1,222    1,869    3,090    503    227    730    1,724    2,096    3,821    1.31
Delaware 301    468    770    121    56    177    422    524    946    0.32
Dist. of Columbia 379    625    1,004    207    85    292    585    710    1,296    0.44
Florida 5,751    10,221    15,973    2,257    1,772    4,030    8,009    11,994    20,003    6.86
Georgia 2,578    4,937    7,515    1,179    722    1,901    3,757    5,659    9,415    3.23
Guam 41    62    103    17    10    27    58    72    130    0.04
Hawaii 340    631    970    129    96    225    469    726    1,196    0.41
Idaho 392    564    957    171    96    266    563    660    1,223    0.42
Illinois 3,241    6,414    9,654    1,199    955    2,154    4,440    7,369    11,809    4.05
Indiana 1,487    2,761    4,248    556    494    1,050    2,043    3,254    5,298    1.82
Iowa 733    1,268    2,001    300    257    558    1,033    1,525    2,559    0.88
Kansas 711    1,238    1,949    304    183    487    1,015    1,421    2,436    0.84
Kentucky 977    1,930    2,907    397    330    727    1,374    2,260    3,634    1.25
Louisiana 1,101    2,398    3,499    423    356    779    1,524    2,754    4,278    1.47
Maine 364    718    1,081    165    106    271    529    824    1,353    0.46
Maryland 1,785    3,178    4,963    712    488    1,200    2,497    3,666    6,163    2.11
Massachusetts 1,909    3,724    5,633    778    487    1,265    2,687    4,211    6,897    2.36
Michigan 2,276    4,926    7,203    834    861    1,695    3,110    5,787    8,897    3.05
Minnesota 1,294    2,368    3,662    542    374    916    1,836    2,742    4,578    1.57
Mississippi 709    1,542    2,251    292    225    517    1,001    1,767    2,768    0.95
Missouri 1,528    2,781    4,309    640    573    1,213    2,168    3,354    5,522    1.89
Montana 284    409    694    116    88    203    400    497    897    0.31
Nebraska 457    903    1,360    211    173    384    667    1,076    1,744    0.60
Nevada 835    1,056    1,891    322    136    457    1,157    1,192    2,348    0.80
New Hampshire 416    673    1,090    166    106    272    583    779    1,362    0.47
New Jersey 2,983    5,299    8,282    1,187    789    1,976    4,170    6,088    10,258    3.52
New Mexico 546    837    1,383    226    159    384    771    996    1,767    0.61
New York 4,927    10,674    15,601    2,157    1,835    3,992    7,084    12,509    19,593    6.72
North Carolina 2,429    4,364    6,794    966    722    1,688    3,395    5,087    8,482    2.91
North Dakota 178    308    485    85    59    145    263    367    630    0.22
N. Mariana Islands 13    23    35    5    4    9    18    26    44    0.02
Ohio 2,724    5,714    8,438    1,052    999    2,050    3,776    6,713    10,489    3.60
Oklahoma 898    1,650    2,549    378    242    620    1,276    1,893    3,169    1.09
Oregon 996    1,654    2,651    420    286    706    1,416    1,940    3,356    1.15
Pennsylvania 3,355    6,141    9,497    1,393    1,174    2,567    4,748    7,315    12,063    4.14
Puerto Rico 642    1,305    1,947    236    171    407    877    1,476    2,354    0.81
Rhode Island 274    536    809    99    72    171    372    608    980    0.34
South Carolina 1,161    2,162    3,324    453    347    801    1,615    2,509    4,124    1.41
South Dakota 192    325    517    82    68    150    274    393    667    0.23
Tennessee 1,521    2,918    4,439    598    405    1,004    2,119    3,323    5,442    1.87
Texas 5,267    11,824    17,091    2,243    2,277    4,519    7,509    14,101    21,610    7.41
Utah 595    1,007    1,602    247    154    401    842    1,161    2,003    0.69
Vermont 194    262    456    87    46    134    282    308    590    0.20
Virgin Islands 82    64    146    33    11    44    115    75    190    0.07
Virginia 2,344    4,021    6,365    992    717    1,709    3,336    4,738    8,074    2.77
Washington 1,764    3,089    4,853    740    578    1,318    2,504    3,668    6,172    2.12
West Virginia 517    828    1,344    217    146    363    734    973    1,707    0.59
Wisconsin 1,348    2,580    3,928    505    388    893    1,853    2,968    4,821    1.65
Wyoming 178    262    440    84    43    127    262    305    567    0.19
  Total $80,056    $153,265    $233,321    $32,561    $25,852    $58,413    $112,617    $179,117    $291,734    100.00 %
Note:  Figures are preliminary and may not add to totals due to rounding.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,   Monitoring Report  (December 2006).
 15 - 8
Table 15.7
Telecommunications Revenues by Type of Service:  2004
(Dollar Amounts Shown in Millions)
Alabama $1,292 $194 $1,354 $185 $332 $960 $4,318
Alaska NA NA NA NA NA NA 823
American Samoa NA NA NA NA NA NA 15
Arizona 1,032 433 1,812 222 425 1,050 4,974
Arkansas 642 87 810 95 254 704 2,592
California 7,019 2,010 12,694 1,138 3,349 8,094 34,303
Colorado 1,279 265 1,605 240 495 1,100 4,984
Connecticut 910 145 1,214 162 330 1,059 3,821
Delaware 200 48 349 42 80 226 946
District of Columbia 409 115 327 40 147 258 1,296
Florida 4,542 950 7,011 894 1,918 4,687 20,003
Georgia 2,608 520 3,138 362 907 1,880 9,415
Guam NA NA NA NA NA NA 130
Hawaii 289 22 482 64 114 226 1,196
Idaho 289 21 385 64 144 321 1,223
Illinois 2,582 890 4,430 413 882 2,611 11,809
Indiana 1,344 267 1,674 259 444 1,310 5,298
Iowa 567 106 851 108 287 640 2,559
Kansas 593 169 791 84 214 586 2,436
Kentucky 1,052 116 1,177 163 321 806 3,634
Louisiana 1,265 151 1,499 184 292 887 4,278
Maine 370 61 359 55 117 390 1,353
Maryland 1,416 328 2,104 244 520 1,551 6,163
Massachusetts 1,456 531 2,306 288 520 1,797 6,897
Michigan 1,925 839 3,195 330 733 1,875 8,897
Minnesota 1,043 322 1,661 182 443 927 4,578
Mississippi 930 70 830 105 176 657 2,768
Missouri 1,393 229 1,683 228 600 1,389 5,522
Montana 229 14 239 51 102 262 897
Nebraska 439 109 579 56 203 357 1,744
Nevada 510 80 777 87 181 715 2,348
New Hampshire 275 91 404 59 116 416 1,362
New Jersey 1,795 703 3,722 419 952 2,667 10,258
New Mexico 438 27 552 100 203 445 1,767
New York 5,168 1,961 5,848 726 1,689 4,201 19,593
North Carolina 2,161 307 2,869 392 767 1,986 8,482
North Dakota 151 30 196 26 83 144 630
N. Mariana Islands NA NA NA NA NA NA 44
Ohio 2,719 522 3,641 426 891 2,289 10,489
Oklahoma 820 129 1,015 126 277 802 3,169
Oregon 784 142 1,114 163 361 791 3,356
Pennsylvania 2,467 908 3,777 553 1,288 3,070 12,063
Puerto Rico 609 25 1,000 97 184 439 2,354
Rhode Island 191 114 362 35 57 222 980
South Carolina 1,124 120 1,375 181 338 985 4,124
South Dakota 145 26 225 27 83 160 667
Tennessee 1,520 253 1,866 244 391 1,169 5,442
Texas 5,871 1,235 7,114 748 2,150 4,492 21,610
Utah 415 153 723 85 196 429 2,003
Vermont 166 22 97 32 59 214 590
Virgin Islands NA NA NA NA NA NA 190
Virginia 1,685 530 2,584 340 843 2,092 8,074
Washington 1,348 263 2,099 300 705 1,457 6,172
West Virginia 500 45 420 84 155 503 1,707
Wisconsin 1,139 334 1,666 205 360 1,117 4,821
Wyoming 139 20 164 27 69 148 567
  Total 
3
$69,506 $17,125 $98,550 $11,802 $26,875 $67,871 $291,734
NA - Not Applicable.  
Note:  Figures are preliminary and may not add to totals due to rounding.
1
 Excludes subscriber line charges.
2 
Includes ILECs' USF pass-thru charges.
3
 Totals in the first six columns include revenues for locations not estimated.
Access Toll Total
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,  Monitoring Report (December 2006).
ILECs 
1
CLECs
Mobile 
Wireless SLCs 
2
 15 - 9
 16-1 
 
16 Subscribership 
 
 Under contract with the FCC, the U.S. Census Bureau includes questions on telephones 
as part of its Current Population Survey (CPS).  This survey, which monitors demographic 
trends between the decennial censuses, has several strengths:  it is conducted regularly by an 
expert agency, the sample is very large, and the questions are consistent.  Thus, changes in the 
results can be compared over time with a great deal of confidence. 
 
 Almost twenty-nine million households have been added to the nation's telephone system 
since these surveys began in November 1983, reflecting both an increase in the total number of 
households and a small, but statistically significant, increase in the percentage of households that 
subscribe to telephone service. 
 
 Because of smaller sample sizes, state-by-state data, shown in Table 16.3, are subject to 
greater sampling errors than the national data shown in Table 16.1.  These two tables are based 
on the Census Bureaus Current Population Survey.  Additional information can be found in the 
Telephone Penetration and Telephone Subscribership reports available on the Internet on the 
Wireline Competition Bureau Statistical Reports web page at www.fcc.gov/wcb/stats. 
 
 Historical estimates for the United States, using the decennial census population counts, 
are shown in Table 16.2.  Prior to 1980, historical estimates of telephone penetration were based 
on a comparison of the number of residential main stations to the number of households.  These 
estimates became less reliable at that point because of the emergence of an increasing number of 
households with multiple phone lines.  In the 1980 decennial census, the question "Do you have 
a telephone?" was added to the long-form questionnaire.  The 1980 and 1990 percentages in 
Table 16.2 are based on those responses.  In the 2000 decennial census, the question was 
changed to Is there telephone service available in this [housing unit] from which you can both 
make and receive calls?  The question was changed in 2000 to avoid the possible bias from 
having a phone but no service.  With the telephone companies no longer owning the telephone 
instruments beginning in 1984, it is possible for someone to have a telephone but not have 
service.  The question also allows for the possibility of the substitution of wireless service for 
wireline service. Beginning in 2001 the Census Bureau introduced the American Community 
Survey (ACS), which was designed to replace the long form of the decennial census, and Table 
16.2 includes data from that survey as well.  Table 16.2 also documents the per capita changes in 
wireline phone lines and wireless subscribers over time.  The decennial census percentages in 
1990 and 2000 and the ACS percentages for 2001 to 2005 reported in Table 16.2 are higher than 
the CPS percentage reported in Table 16.1.  These differences are due to slight differences in the 
questions and the contexts in which they are asked.  Also, the CPS uses households as the basis 
of measurement, while the census and the ACS use occupied housing units instead. 
 
Further information from the ACS is shown in Tables 16.4 and 16.5.  Table 16.4 shows 
state data and Table 16.5 shows other characteristics including housing unit tenure, age of the 
householder, and race and ethnicity of the householder. 
 
Table 16.1
Household Telephone Subscribership in the United States
Households Percentage Households Percentage
Households with with without without
(Millions) Telephones Telephones Telephones Telephones
(Millions) (Millions)
1983 November 85.8 78.4 91.4 % 7.4 8.6 %
1984 March 86.0 78.9 91.8 7.1 8.2
July 86.6 79.3 91.6 7.3 8.4
November 87.4 79.9 91.4 7.5 8.6
1985 March 87.4 80.2 91.8 7.2 8.2
July 88.2 81.0 91.8 7.2 8.2
November 88.8 81.6 91.9 7.2 8.1
1986 March 89.0 82.1 92.2 6.9 7.8
July 89.5 82.5 92.2 7.0 7.8
November 89.9 83.1 92.4 6.8 7.6
1987 March 90.2 83.4 92.5 6.8 7.5
July 90.7 83.7 92.3 7.0 7.7
November 91.3 84.3 92.3 7.0 7.7
1988 March 91.8 85.3 92.9 6.5 7.1
July 92.4 85.7 92.8 6.7 7.2
November 92.6 85.7 92.5 6.9 7.5
1989 March 93.6 87.0 93.0 6.6 7.0
July 93.8 87.5 93.3 6.3 6.7
November 93.9 87.3 93.0 6.6 7.0
1990 March 94.2 87.9 93.3 6.3 6.7
July 94.8 88.4 93.3 6.4 6.7
November 94.7 88.4 93.3 6.3 6.7
1991 March 95.3 89.2 93.6 6.1 6.4
July 95.5 89.1 93.3 6.4 6.7
November 95.7 89.4 93.4 6.3 6.6
1992 March 96.6 90.7 93.9 5.9 6.1
July 96.6 90.6 93.8 6.0 6.2
November 97.0 91.0 93.8 6.0 6.2
1993 March 97.3 91.6 94.2 5.7 5.8
July 97.9 92.2 94.2 5.7 5.8
November 98.8 93.0 94.2 5.8 5.8
1994 March 98.1 92.1 93.9 6.0 6.1
July 98.6 92.4 93.7 6.2 6.3
November 99.8 93.7 93.8 6.2 6.2
1995 March 99.9 93.8 93.9 6.1 6.1
July 100.0 94.0 94.0 6.0 6.0
November 100.4 94.2 93.9 6.2 6.1
1996 March 100.6 94.4 93.8 6.2 6.2
July 101.2 95.0 93.9 6.1 6.1
November 101.3 95.1 93.9 6.2 6.1
1997 March 102.0 95.8 93.9 6.2 6.1
July 102.3 96.1 93.9 6.2 6.1
November 102.8 96.5 93.8 6.3 6.2
1998 March 103.4 97.4 94.1 6.1 5.9
July 103.4 97.3 94.1 6.1 5.9
November 104.1 98.0 94.2 6.1 5.8
1999 March 104.8 98.5 94.0 6.3 6.0
July 105.1 99.2 94.4 5.9 5.6
November 105.4 99.1 94.1 6.3 5.9
2000 March 105.3 99.6 94.6 5.7 5.4
July 105.8 99.8 94.4 5.9 5.6
November 106.5 100.2 94.1 6.3 5.9
2001 March 107.0 101.1 94.6 5.8 5.4
July 106.9 101.7 95.1 5.2 4.9
November 107.7 102.2 94.9 5.5 5.1
2002 March 108.3 103.4 95.5 4.8 4.5
July 108.5 103.2 95.1 5.3 4.9
November 109.0 104.0 95.3 5.1 4.7
2003 March 112.1 107.1 95.5 5.0 4.5
July 112.1 106.8 95.2 5.3 4.8
November 113.1 107.1 94.7 6.0 5.3
2004 March 112.9 106.4 94.2 6.5 5.8
July 113.5 106.5 93.8 7.1 6.2
November 113.8 106.4 93.5 7.4 6.5
2005 March 114.5 105.8 92.4 8.7 7.6
July 114.4 107.5 94.0 6.8 6.0
November 115.2 107.0 92.9 8.2 7.1
2006 March 115.5 107.2 92.8 8.4 7.2
July 116.2 109.9 94.6 6.3 5.4
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau,   Telephone Subscribership in the United
             States (January 2007).  Based on data from the Census Bureau's Current Population Survey.
16 - 3
Percentage of Telephone Wireless
Housing Units Wire Lines per Subscribers per
Year with Telephones 100 Population 100 Population
1920 %
1930
1940
1950
1960
1970
1980
1990
2000
2001
2002
2003
2004
2005
Sources: Percentage data for 1920 to 1970 from the U.S. Census Bureau,
Historical Statistics of the United States, Colonial Times to 1970, 
Part 2, page 783.  Percentage data for 1980 to 2000 from the decennial
censuses.  Percentage data for 2001 to 2005 from the Census Bureau's
American Community Survey.  Telephone line data for 1920 through
1970 are estimated by multiplying the number of telephones by the
proportion of main plus equivalent main stations to total telephones
for the Bell System.  Prior to 1950, the 1950 proportion is used.
For 1980 and 1990, ILEC local loops are used (see Table 7.1).
For 2000 to 2005, June ILEC and CLEC lines are used from  Industry
Analysis and Technology Division, Wireline Competition Bureau
Bureau, Local Telephone Competition:  Status as of June 30, 2005
(April 2006).  June wireless subscribers reported by CTIA are
from Table 11.1.  For 1920 to 2000 the population from the
decennial census is used.  For 2001 to 2005 Census Bureau
population estimates for July 1 are used.
35.0
40.9
36.9
61.8
12.7
21.7
9.6
12.5
95.7
67.4
65.6
78.3
90.5
92.9
67.9
27.6
35.0
45.1
16 - 4
63.7
61.3
1.8
34.5
41.5
46.7
50.9
57.7
94.8
94.8 60.1 65.6
Table 16.2
Historical Telephone Penetration Estimates
54.7
97.6
96.9
96.6
96.2
State
Alabama 88.4 % 91.6 % 3.2 %  *
Alaska 86.5 95.2 8.7  *
Arizona 86.9 92.9 6.0  *
Arkansas 86.6 87.9 1.3  
California 92.5 95.4 3.0  *
Colorado 93.2 95.1 1.8  *
Connecticut 95.5 93.9 -1.6  #
Delaware 94.3 91.5 -2.7  #
District of Columbia 94.9 92.2 -2.7  #
Florida 88.7 91.8 3.1  *
Georgia 86.2 89.8 3.6  *
Hawaii 93.5 94.8 1.3  
Idaho 90.7 94.8 4.1  *
Illinois 94.2 89.6 -4.6  #
Indiana 91.6 90.8 -0.8  
Iowa 96.2 95.4 -0.8  
Kansas 94.3 94.3 0.0  
Kentucky 88.1 91.3 3.1  *
Louisiana 89.7 91.8 2.2  *
Maine 93.4 95.7 2.3  *
Maryland 95.7 94.0 -1.7  #
Massachusetts 95.9 94.5 -1.4  #
Michigan 92.8 92.6 -0.2  
Minnesota 95.8 96.2 0.4  
Mississippi 82.4 89.5 7.1  *
Missouri 91.5 94.2 2.7  *
Montana 91.0 93.0 2.0  *
Nebraska 95.7 94.3 -1.4  #
Nevada 90.4 91.2 0.8  
New Hampshire 94.3 95.8 1.5  
New Jersey 94.8 93.8 -1.0  
New Mexico 82.0 91.2 9.2  *
New York 91.8 92.1 0.3  
North Carolina 88.3 92.8 4.5  *
North Dakota 94.6 96.3 1.7  *
Ohio 92.4 94.1 1.6  *
Oklahoma 90.3 89.2 -1.1  
Oregon 90.6 95.7 5.1  *
Pennsylvania 94.9 95.6 0.7  
Rhode Island 93.6 95.3 1.7  
South Carolina 83.7 93.1 9.5  *
South Dakota 93.2 95.9 2.7  *
Tennessee 88.5 92.3 3.8  *
Texas 88.4 91.1 2.7  *
Utah 92.5 96.9 4.4  *
Vermont 92.3 95.6 3.3  *
Virginia 93.1 93.2 0.2  
Washington 93.0 96.9 3.9  *
West Virginia 87.7 92.6 4.9  *
Wisconsin 95.2 94.8 -0.4  
Wyoming 89.9 94.8 4.9  *
Total United States 91.6 % 93.1 % 1.5 %  *
Note:  Differences may not appear to equal changes due to rounding.
* Increase is statistically significant at the 95% confidence level.
# Decrease is statistically significant at the 95% confidence level.
Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Telephone 
            Subscribership in the United States (May 2006).  Based on data from the Census Bureau's
            Current Population Survey.
16 - 5
20051984
Table 16.3
Telephone Penetration by State
(Annual Average Percentage of Households with Telephone Service)
Change
State
Alabama 95.2 % 95.3 % 95.1 % 94.5 % 93.3 %
Alaska 96.6 97.9 96.7 97.6 96.6
Arizona 95.8 95.6 95.0 95.2 93.1
Arkansas 94.7 94.3 92.5 91.0 90.9
California 98.0 98.3 98.3 97.9 97.0
Colorado 98.5 97.4 97.0 96.5 95.1
Connecticut 98.8 98.7 98.2 98.3 97.3
Delaware 98.2 98.2 97.7 97.9 97.5
District of Columbia 97.1 97.5 96.9 96.1 95.2
Florida 97.0 96.6 96.3 95.5 94.0
Georgia 95.6 95.5 95.0 94.1 92.9
Hawaii 97.9 97.0 96.3 95.2 95.6
Idaho 96.2 97.4 96.3 95.7 96.2
Illinois 95.9 95.7 95.4 94.7 94.4
Indiana 95.4 94.7 93.7 93.4 94.4
Iowa 97.6 97.4 96.6 95.6 96.0
Kansas 96.9 96.3 95.8 95.7 93.6
Kentucky 96.0 94.8 95.0 93.3 92.0
Louisiana 95.3 95.4 94.7 92.9 92.9
Maine 98.8 98.2 98.4 97.7 96.6
Maryland 97.7 97.5 97.5 97.0 95.8
Massachusetts 98.5 98.6 98.5 97.9 96.2
Michigan 96.4 95.5 95.1 94.4 93.4
Minnesota 98.7 98.2 98.5 97.4 96.7
Mississippi 93.3 93.4 92.8 91.4 89.6
Missouri 96.6 96.7 96.3 96.1 95.4
Montana 97.1 96.9 96.5 95.1 95.0
Nebraska 97.2 96.4 95.6 94.8 95.5
Nevada 95.2 95.3 94.4 95.2 95.9
New Hampshire 98.7 98.5 98.1 98.2 96.9
New Jersey 98.0 97.7 97.6 96.9 95.8
New Mexico 92.9 90.7 93.0 94.4 92.5
New York 97.2 96.9 96.8 96.5 95.5
North Carolina 96.5 95.6 94.1 94.5 93.8
North Dakota 97.8 97.3 96.8 95.9 94.7
Ohio 97.7 96.7 97.1 96.2 95.4
Oklahoma 95.7 93.9 94.7 93.7 93.1
Oregon 98.0 97.1 96.9 96.0 95.3
Pennsylvania 97.8 98.0 97.5 97.2 96.5
Rhode Island 98.3 97.8 97.7 96.8 96.4
South Carolina 96.0 94.7 94.7 93.6 92.3
South Dakota 97.6 96.8 96.1 95.8 95.3
Tennessee 96.8 96.3 95.1 95.2 92.9
Texas 95.9 95.4 94.3 93.7 92.9
Utah 97.4 97.7 97.5 97.4 96.5
Vermont 98.1 98.1 97.7 97.6 97.9
Virginia 97.3 97.0 97.0 95.8 95.6
Washington 97.5 97.8 97.0 96.5 96.5
West Virginia 95.1 95.9 94.8 94.0 94.5
Wisconsin 97.9 97.5 96.3 95.5 96.4
Wyoming 95.1 94.9 94.5 94.4 94.9
Total United States 96.9 % 96.6 % 96.2 % 95.7 % 94.8 %
Puerto Rico NA NA NA NA 73.8 %
Source:  Census Bureau, American Community Survey
16 - 6
20022001
Table 16.4
Telephone Penetration by State
(Percentage of Housing Units with Telephone Service)
20052003 2004
Characteristic
Housing Unit Tenure
Owner Occupied 98.8 % 98.7 % 98.5 % 98.3 % 97.7 %
Renter Occupied 93.4 92.6 91.6 90.4 89.0
Age of Householder
15 - 34 94.5 93.6 92.0 90.2 88.0
35 - 64 97.3 97.2 97.1 96.7 96.1
65 + 98.7 98.6 98.7 98.7 98.6
Race of Householder
White 97.6 97.3 96.9 96.3 95.6
Black or African American 93.6 93.0 93.0 92.3 91.9
American Indian or Alaska Native 89.1 89.5 87.8 89.6 86.8
Asian 98.4 98.0 97.5 96.9 95.5
Native Hawaiian or Pacific Islander 95.9 95.5 91.4 92.2 93.1
Other 94.6 95.1 93.9 93.3 91.0
Two or More Races 95.1 92.7 95.6 92.8 92.7
Ethnicity of Householder
Hispanic or Latino 94.2 93.9 93.4 92.6 91.6
Total United States 96.9 % 96.6 % 96.2 % 95.7 % 94.8 %
Source:  Census Bureau, American Community Survey.
16 - 7
20022001
Table 16.5
Telephone Penetration by Selected Characteristics
(Percentage of Housing Units with Telephone Service)
20052003 2004
 17-1 
17 Technology and Infrastructure  
 
 Price-cap regulated carriers, including the Bell operating companies (BOCs), file 
data on technology as part of their Automated Reporting Management Information 
System (ARMIS) reports.  The data contained in Tables 17.1 and 17.3 are from the 
BOCs ARMIS 43-07 reports, and the data contained in Table 17.2 are from the ARMIS 
43-05 report.  The individual carrier's data can be obtained from the ARMIS web page at 
www.fcc.gov/wcb/eafs.  Selected holding company statistics from the ARMIS 43-07 can 
be found in Section 10 of our Monitoring Report on the web page 
www.fcc.gov/wcb/iatd/monitor.  Also information about broadband deployment is 
contained in Chapter 2, Advanced Telecommunications. 
 
1.  Central Office Technology 
 
 Table 17.1 shows the number of BOC switches and tracks the deployment of 
certain key switching and signaling technologies, described below, in BOC central 
offices. (Information about broadband deployment is contained in Chapter 2, Advanced 
Telecommunications.) Telephone companies replaced most of their older 
electromechanical switches with stored program control switches (SPCSs) beginning in 
1980.  Stored program control makes it possible to change the operational and service 
features of a switch by changing the program stored in switch memory and executed by 
switch processors. SPCSs can use either analog or digital switching technology.  As 
shown in Table 17.1 virtually all switches in BOC networks now use digital stored 
program control technology, and more than 98 percent of BOC access lines terminate on 
digital switches. As such, the tables in this report no longer separately track 
electromechanical or analog SPC switches. 
 
   In the late 1980s, telephone companies began to convert switching offices from 
in-band signaling to Signaling System 7 (SS7).  SS7 permits calls to be set up more 
efficiently, and also allows certain new services to be deployed.  It may be implemented 
on both analog and digital stored program control switches.  Data in Table 17.1 shows 
that SS7 has now been deployed almost everywhere in BOC networks.   
 
 Telephone companies began introducing integrated services digital network 
(ISDN) capabilities on their digital switches shortly after introducing Signaling System 7. 
One of the attractions of ISDN is that ordinary local telephone lines (copper loops) can be 
used to transport data between computers at speeds higher than possible using a modem.  
In recent years, however, ISDN has taken a back seat to broadband technologies, such as 
Digital Subscriber Line (DSL) when used for this purpose. 
 
 Table 17.2 provides some additional categorization of switches.  It shows line 
counts of switches from 1996 to 2005 for the following categories: fewer than 1,000 
lines; 1,000 - 4,999 lines; 5,000 - 9,999 lines; 10,000 - 19,999 lines; and 20,000 lines or 
more.  The table also breaks out switches based on their being in a Metropolitan 
Statistical Area (MSA) or not (non-MSA). Note that while Table 17.1 provides switch 
 17-2 
counts for BOCs only, Table 17.2 provides this information for all price-cap carriers. 
 
2.  Transmission Technology 
 
Each telephone company has a network of transmission paths interconnecting 
switching offices and also connecting customers to their serving local central offices.  
Today, wireline transmission is typically provided on fiber or copper cable, with other 
technologies being used only infrequently.  As indicated in Table 17.3, from 1991 to 
2005, the proportion of fiber cable sheath kilometers
1
 in Bell Operating Company 
networks increased from 4% to over 13% of total cable sheath kilometers. 
 
The number of working channels provides a rough approximation of the number 
of transmission paths that are in service between customers and the telephone company 
offices serving those customers. This includes both switched access lines and the local 
portion of special access and private lines. Table 17.3 shows that the number of working 
channels provided partly or totally on fiber in BOC networks increased from about 4% of 
total working channels in 1991 to about 20% in 2005.  
 
3.  Equal Access 
 
 Equal access refers to a class of service whereby all long distance service 
providers receive equivalent connections to the local exchange carrier's network.  Where 
a local exchange carrier serves customers using equal-access switches, those customers 
can utilize their preferred long distance provider by dialing "1" plus the ten-digit 
telephone number they want to reach. 
 
 The conversion of lines by local exchange carriers to equal access started in 1984; 
by the end of 1996, over 99% of the nation's lines were served by equal access switches.  
A table tracing this process through time can be found in the equal-access section of the 
Trends report released in July 1998. 
 
 Despite the fact that more than 99% of the nation's customers receive equal 
access, there still are some central offices where equal access is not yet available. Table 
17.4 shows the number of central office wire centers in each state that had been converted 
to equal access as of May 1, 2006.  The table is derived from NECAs Tariff 4 database, 
which is updated by local exchange carriers.  In some cases, there is a lag between an 
office converting to equal access and that change being reflected in the database.  Thus, 
in some cases, the data continue to show some offices not yet converted to equal access 
even in states where equal access is reported to be available to all customers. 
 
                                                 
1
 Cable sheath kilometers is a measure of the length of cable used to provide telecommunications 
services.  A sheath contains individual copper or fiber pairs used to transmit voice or data.  Fiber 
cable sheaths typically contain 40 to 50 fiber strands while copper cable sheaths contain as many 
as several hundred copper pairs.  
 17-3 
4. Rural Network Capabilities 
 
 The National Exchange Carrier Association periodically conducts a survey of 
over 1,000 small, mostly rural telephone companies.
2
  The most recent survey focuses on 
the small companies efforts to bring advanced services to their customers.  Table 17.5 
shows selected network capabilities by state of the 1,120 companies that responded to the 
2006 survey.  In addition to the number of switches and access lines, the table shows the 
percentage of companies equipped with DSL and with ATM, the number of ADSL and 
SDSL (and other broadband) access lines, and the percentage of central offices equipped 
for equal access. 
 
5.  Telecommunications Patents 
 
 One measure of developing technology is the number of U.S. patents.  The U.S. 
Patent and Trademark Office maintains a file of over six million distinct U.S. patents 
granted.  These patents are categorized by technology.  Chart 17.1 shows the number of 
patents granted for telecommunications from 1990 to 2004.  The information presented 
profiles U.S. patent activity in the general field of telecommunications.  It includes all 
U.S. patent documents, except reissued patents, granted between January 1990 and 
December 31, 2004 in the following classes: 
 
Class 370, Multiplex Communications 
 
Class 375, Pulse or Digital Communications 
 
Class 379, Telephonic Communications 
 
Class 455, Telecommunications 
 
6. Capital Expenditures 
 
 The FCC does not systematically collect information on capital expenditures from 
most carriers.  Table 17.6 provides annual estimates of expenditures for structures and 
equipment for telecommunications carriers, taken from a U.S. Census Bureau survey.
3
 
Chart 17.2 combines this expenditure data with FCC collected revenue data. It shows that 
for each dollar of revenue collected from end users in 2004, wireless carriers invested 25 
cents in structures and equipment whereas wireline, resellers, satellite & other carriers 
invested 17 cents. Overall, capital expenditures were 22 cents for each dollar of end-user 
revenues. 
                                                 
2
 National Exchange Carrier Association (NECA), Trends 2006 - Making Progress in Broadband 
3
 U.S. Census Bureau, Annual Capital Expenditures: 2004, (Issued March 2006) Table 4a, 
http://www.census.gov/csd/ace/ 
Year End Total Signaling System 7 ISDN Digital Stored
Switches Switches Switches Program Controlled
Switches
  
1980 9,195 0 0.00 % 0 0.00 % 0 0.00 %
1981 9,198 0 0.00 0 0.00 24 0.26
1982 9,173 0 0.00 0 0.00 80 0.87
1983 9,156 0 0.00 0 0.00 171 1.87
1984 9,102 0 0.00 0 0.00 347 3.81
1985 9,124 0 0.00 0 0.00 860 9.43
1986 9,167 0 0.00 0 0.00 1,620 17.67
1987 9,190 29 0.32 4 0.04 2,538 27.62
1988 9,300 435 4.68 82 0.88 3,577 38.46
1989 9,338 931 9.97 179 1.92 4,403 47.15
1990 9,872 2,428 24.59 600 6.08 5,816 58.91
1991 9,951 3,670 36.88 920 9.25 6,636 66.69
1992 10,069 5,392 53.55 1,219 12.11 7,530 74.78
1993 10,089 6,688 66.29 1,874 18.57 8,239 81.66
1994 10,023 8,334 83.15 2,400 23.94 8,795 87.75
1995 10,051 8,977 89.31 2,868 28.53 9,015 89.69
1996 9,966 9,286 93.18 3,329 33.40 9,247 92.79
1997 9,965 9,688 97.22 3,902 39.16 9,417 94.50
1998 9,788 9,643 98.52 4,146 42.36 9,357 95.60
1999
1
9,968 9,844 98.76 4,424 44.38 9,648 96.79
2000
2
15,092 14,837 98.31 5,413 35.87 14,889 98.65
2001 15,109 14,969 99.07 5,465 36.17 14,970 99.08
2002 14,352
3
14,258 99.35 5,664 39.46 14,245
3
99.25
2003 14,373 14,314 99.59 5,672 39.46 14,289 99.42
2004 14,399 14,366 99.77 5,787 40.19 14,326 99.49
2005 12,321 12,292 99.76 5,694 46.21 12,256 99.47
Access Lines Served by Type of Office
(Thousands)
Year End All Signaling System 7 ISDN Digital Stored
Switches Switches Switches Program Controlled
Switches
1980 81,032 0 0.00 % 0 0.00 % 10 0.01 %
1981 82,581 0 0.00 0 0.00 57 0.07
1982 83,819 0 0.00 0 0.00 203 0.24
1983 86,186 0 0.00 0 0.00 615 0.71
1984 88,630 0 0.00 0 0.00 2,151 2.43
1985 91,455 0 0.00 0 0.00 8,145 8.91
1986 93,630 0 0.00 0 0.00 14,886 15.90
1987 96,593 1,035 1.07 12 0.01 22,946 23.76
1988 99,564 10,325 10.37 47 0.05 30,493 30.63
1989 102,684 21,917 21.34 111 0.11 38,192 37.19
1990 105,641 40,026 37.89 13,970 13.22 45,452 43.02
1991 107,388 57,321 53.38 20,567 19.15 52,061 48.48
1992 109,997 76,480 69.53 28,375 25.80 60,324 54.84
1993 113,368 92,493 81.59 39,875 35.17 71,192 62.80
1994 117,345 109,465 93.28 56,546 48.19 84,040 71.62
1995 122,266 116,568 95.34 71,274 58.29 93,172 76.20
1996 125,844 122,343 97.22 85,434 67.89 101,283 80.48
1997 131,722 130,778 0.00 95,956 72.85 110,503 83.89
1998 136,426 136,246 0.00 106,834 78.31 119,738 87.77
1999
1
141,763 141,685 0.00 113,999 80.42 129,838 91.59
2000
2
160,557 160,303 0.00 132,844 82.74 153,240 95.44
2001 155,543 155,363 0.00 129,075 82.98 150,732 96.91
2002 148,292
3 4 4
124,451 83.92 145,009
3
97.79
2003 142,698
4 4
119,403 83.68 140,271 98.30
2004 136,057
4 4
115,561 84.94 134,076 98.54
2005 127,026
4 4
107,159 84.36 125,460 98.77
Note:  Because of different sources, the data for 1989 and earlier years may not be consistent with the data for 1990 and later years
1
 Southern New England Telephone Company merged with SBC Communications October 26, 1998.  Their data are included in this table starting with 1999.
2
 Large increase in 2000 is due to the merger of Bell Atlantic and GTE.
3
 The decrease in the number of switches and their associated lines from 2001 to 2002 is partially due to the sale of a number of study areas by Verizon.
Sources:  1980-1989 reported in CC Docket 89-624.
               1990-2005 reported in ARMIS 43-07.
Table 17.1
Central Office Switches and Access Lines by Technology
(Bell Operating Companies)
4
 For 2002, the Commission eliminated the requirement that the Bell operating companies file electromechanical switch data.  See  2000 Biennial Regulatory 
Review  Comprehensive Review of the Accounting Requirements and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers:  Phase 2,  et al., 
CC Docket Nos. 00-199, 99-301, 97-212, 80-286, Report and Order in CC Docket Nos. 00-199, 97-212, and 80-286, Further Notice of Proposed Rulemaking in 
CC Docket Nos. 00-199, 99-301, and 80-286, 16 FCC Rcd 19911, 19770-72, paras. 161-165 (2001). 
 17-5
Table 17.2
Switches by Metropolitan Statistical Area (MSA) and Non-MSA
Year Total Switches Total Switches Total Switches Switches with Switches with Switches with Switches with Switches with
MSA Non-MSA MSA and Under 1,000 1,000 - 4,999 5,000 - 9,999 10,000 - 19,999 20,000 or More
Non-MSA Lines Lines Lines Lines Lines
1996 8,711 7,426 16,137 4,594 5,758 1,770 1,431 2,584
1997 9,138 7,199 16,337 4,476 5,843 1,786 1,518 2,714
1998 9,011 7,492 16,503 4,374 6,027 1,821 1,527 2,754
1999 9,165 7,452 16,617 4,319 5,898 1,915 1,613 2,873
2000 9,058 6,340 15,398 3,472 5,538 1,869 1,632 2,888
2001 8,996 6,377 15,373 3,402 5,481 1,873 1,678 2,938
2002 9,181 6,336 15,517 3,618 5,610 1,857 1,645 2,787
2003 9,251 6,406 15,657 3,685 5,702 1,885 1,706 2,679
2004 9,284 6,214 15,498 3,754 5,697 1,871 1,679 2,497
2005 9,064 5,602 14,666 3,380 5,310 1,886 1,719 2,371
Notes:  The number of switches in Table 17.2 differs from Tables 17.1.  Table 17.1 is derived from the ARMIS 43-07, which is filed by the regional Bell operating companies.
             Table 17.2 is derived from the ARMIS 43-05, which is filed by incumbent local exchange carriers subject to price-cap regulation.  The decline in switches between
             2004 and 2005 is primarily due to Verizon GTE reporting substantially fewer switches in 2005 than in 2004.  Verizon attributes its 2005 reduction in local switches
             to Verizon GTE's change in data sources from financial to operations databases, which the company expects will provide more timely information.
And Switches by Line Counts
 17 - 6
Table 17.3
Local Transmission Technology
(Bell Operating Companies)
Cable Sheath Kilometers
Year End Total Copper Fiber Other
   
1991 4,163,640 3,955,622 95.0 % 196,791 4.7 % 11,228 0.3 %
1992 4,214,804 3,965,406 94.1 238,406 5.7 10,994 0.3
1993 4,264,569 3,976,100 93.2 280,017 6.6 8,450 0.2
1994 4,256,253 3,934,243 92.4 314,660 7.4 7,350 0.2
1995 4,319,068 3,960,343 91.7 351,907 8.1 6,819 0.2
1996 4,339,067 3,947,238 91.0 386,011 8.9 5,819 0.1
1997 4,396,205 3,974,204 90.4 416,105 9.5 5,896 0.1
1998 4,473,351 4,009,772 89.6 449,554 10.0 14,026 0.3
1999
1
4,608,808 4,103,657 89.0 491,478 10.7 13,672 0.3
2000
2
5,761,869 5,132,364 89.1 613,646 10.7 15,860 0.3
2001 5,848,516 5,166,537 88.3 665,805 11.4 16,174 0.3
2002 5,791,105 5,086,669 87.8 692,031 11.9 12,406 0.2
2003 5,851,790 5,118,314 87.5 720,877 12.3 12,600 0.2
2004 5,942,045 5,166,481 86.9 763,132 12.8 12,433 0.2
2005 5,990,163 5,166,382 86.2 811,896 13.6 11,884 0.2
Working Telecommunications Channels
(Thousands)
Year End Total Copper Fiber Radio
1991 118,654 114,047 96.1 4,605 3.9 2.3 0.0
1992 120,848 114,609 94.8 6,238 5.2 1.0 0.0
1993 124,191 115,496 93.0 8,694 7.0 1.4 0.0
1994 130,192 118,437 91.0 11,755 9.0 0.3 0.0
1995 136,231 122,975 90.3 13,255 9.7 0.3 0.0
1996 142,824 125,595 87.9 17,228 12.1 1.0 0.0
1997 149,429 128,436 86.0 20,992 14.0 0.3 0.0
1998 172,916 134,629 77.9 38,286 22.1 0.3 0.0
1999
1
186,387 138,691 74.4 47,696 25.6 0.0 0.0
2000
2
218,928 157,840 72.1 61,086 27.9 2.0 0.0
2001 228,705 152,441 66.7 76,263 33.3 2.0 0.0
2002
3
169,157 137,228 81.1 31,927 18.9 1.0 0.0
2003 158,890 127,652 80.3 31,237 19.7 1.0 0.0
2004 148,255 117,320 79.1 30,935 20.9 0.1 0.0
2005 137,254 110,033 80.2 27,221 19.8 0.1 0.0
Note:  Working Channels are reported in 4 kHz bandwidth (single-voice channel) equivalents.
1
 Southern New England Telephone Company merged with SBC Communications October 26, 1998.  Their data are included
   in this table starting with 1999.
2
 Large increase in 2000 is due to the merger of Bell Atlantic and GTE.
3
 The large decrease from 2001 to 2002 is due in part to a number of Verizon companies refiling in order to remove interexchange 
   carrier, point-of-presence, and co-location circuit counts to comply with ARMIS definitions.
Source:  ARMIS 43-07 report.
17 - 7
Table 17.4
Central Offices Converted to Equal Access 1/  
(As of May 1, 2006)
Bell Company Other ILEC CLEC All
Central Offices Central Offices Central Offices Central Offices
Equal Non-Equal % Equal Equal Non-Equal % Equal Equal Non-Equal % Equal Total % Equal
Access Access Access Access Access Access Access Access Access Offices Access
Alabama 147 0 100.0 % 221 0 100.0 % 35 0 100.0 % 403 100.0 %
Alaska 0 0      NA  84 170 33.1 0 0        NA 254 33.1
American Samoa 0 0      NA  0 4 0.0 0 0        NA 4 0.0
Arizona 146 0 100.0 103 5 95.4 37 1 97.4 292 97.9
Arkansas 136 0 100.0 281 2 99.3 27 3 90.0 449 98.9
California 904 2 99.8 89 1 98.9 206 3 98.6 1,205 99.5
Colorado 165 1 99.4 95 5 95.0 37 0 100.0 303 98.0
Connecticut 126 0 100.0 2 0 100.0 21 0 100.0 149 100.0
Delaware 33 0 100.0 0 0     NA  4 0 100.0 37 100.0
District of Columbia 18 0 100.0 0 0     NA  22 0 100.0 40 100.0
Florida 291 0 100.0 177 0 100.0 228 0 100.0 696 100.0
Georgia 182 0 100.0 244 1 99.6 74 0 100.0 501 99.8
Guam 0 0      NA  3 0 100.0 0 0        NA 3 100.0
Hawaii 0 0      NA  92 0 100.0 8 0 100.0 100 100.0
Idaho 97 0 100.0 85 0 100.0 9 0 100.0 191 100.0
Illinois 697 4 99.4 325 7 97.9 60 2 96.8 1,095 98.8
Indiana 387 2 99.5 187 0 100.0 45 1 97.8 622 99.5
Iowa 135 0 100.0 676 0 100.0 52 0 100.0 863 100.0
Kansas 171 2 98.8 288 4 98.6 26 1 96.3 492 98.6
Kentucky 179 0 100.0 403 0 100.0 27 0 100.0 609 100.0
Louisiana 229 0 100.0 93 0 100.0 36 0 100.0 358 100.0
Maine 143 1 99.3 107 8 93.0 3 0 100.0 262 96.6
Maryland 214 0 100.0 1 0 100.0 32 0 100.0 247 100.0
Massachusetts 274 2 99.3 3 0 100.0 38 0 100.0 317 99.4
Michigan 541 7 98.7 169 0 100.0 55 0 100.0 772 99.1
Minnesota 156 0 100.0 565 4 99.3 115 0 100.0 840 99.5
Mississippi 205 0 100.0 70 0 100.0 22 0 100.0 297 100.0
Missouri 215 3 98.6 460 22 95.4 50 0 100.0 750 96.7
Montana 76 0 100.0 198 1 99.5 20 0 100.0 295 99.7
Nebraska 69 0 100.0 388 0 100.0 19 0 100.0 476 100.0
Nevada 55 0 100.0 61 3 95.3 14 0 100.0 133 97.7
New Hampshire 125 1 99.2 31 1 96.9 8 0 100.0 166 98.8
New Jersey 208 0 100.0 28 0 100.0 45 0 100.0 281 100.0
New Mexico 65 0 100.0 88 34 72.1 9 0 100.0 196 82.7
New York 526 1 99.8 301 7 97.7 103 0 100.0 938 99.1
North Carolina 183 0 100.0 545 1 99.8 103 0 100.0 832 99.9
North Dakota 27 0 100.0 264 19 93.3 15 0 100.0 325 94.2
Ohio 489 19 96.3 340 4 98.8 90 1 98.9 943 97.5
Oklahoma 208 2 99.0 288 19 93.8 25 1 96.2 543 95.9
Oregon 136 0 100.0 151 0 100.0 32 0 100.0 319 100.0
Pennsylvania 506 0 100.0 418 31 93.1 91 0 100.0 1,046 97.0
Puerto Rico 0 0      NA  86 0 100.0 2 0 100.0 88 100.0
Rhode Island 30 0 100.0 0 0     NA  6 0 100.0 36 100.0
South Carolina 158 0 100.0 257 0 100.0 50 0 100.0 465 100.0
South Dakota 42 0 100.0 202 7 96.7 9 0 100.0 260 97.3
Tennessee 196 0 100.0 483 0 100.0 48 1 98.0 728 99.9
Texas 796 2 99.7 691 10 98.6 214 5 97.7 1,718 99.0
Utah 64 0 100.0 94 4 95.9 13 0 100.0 175 97.7
Vermont 90 2 97.8 37 0 100.0 1 0 100.0 130 98.5
Virgin Islands 0 0      NA  5 0 100.0 0 0        NA 5 100.0
Virginia 326 0 100.0 254 7 97.3 62 0 100.0 649 98.9
Washington 219 0 100.0 141 2 98.6 44 0 100.0 406 99.5
West Virginia 145 0 100.0 86 6 93.5 2 0 100.0 239 97.5
Wisconsin 225 4 98.3 409 0 100.0 53 0 100.0 691 99.4
Wyoming 26 0 100.0 34 24 58.6 3 0 100 87 72.4
 Total United States 10,781 55 99.5 % 10,703 413 96.3 % 2,350 19 99.2 % 24,321 98.0 %
  NA  -  Not applicable.
  1/        Some companies do not report information on their remote switches in Tariff No. 4.  As a result, central office counts may be lower than reported in other sources.
 Source:  NECA FCC Tariff No. 4 database.  
 17 - 8
 
SDSL & other
Jurisdiction Companies
Alabama 21 82 114,870 95 % 8,655 3,797 29 % 99 %
Alaska 24 238 236,712 88 30,621 7,080 17 50
Arizona 12 54 39,119 75 953 n/a 8 100
American Samoa 1 4 10,244 100 * * * 100
Arkansas 26 242 322,931 92 19,321 331 38 100
California 14 44 85,167 93 7,630 1 36 98
Colorado 25 44 48,099 88 3,489 744 16 98
Connecticut 1 14 24,462 100 * * * 100
Florida 6 13 77,254 100 9,494 n/a 25 100
Georgia 28 104 307,750 89 50,182 1,751 14 97
Guam 1 18 63,770 100 * * * 100
Hawaii 1 8 1,370 100 * * * 100
Idaho 15 58 42,967 93 1,571 93 20 100
Illinois 27 73 41,009 81 4,970 1,727 22 100
Indiana 34 81 120,499 88 15,042 1,326 29 100
Iowa 139 297 200,616 97 21,389 3,148 7 99
Kansas 31 167 103,222 100 20,084 3,596 26 99
Kentucky 13 270 137,746 100 8,310 3,217 38 100
Louisiana 18 101 136,281 89 11,232 n/a 62 99
Maine 19 105 138,667 100 11,888 199 26 100
Maryland 1 1 7,287 100 * * * 100
Massachusetts 2 3 3,856 100 427 n/a 0 100
Michigan 31 98 98,380 90 7,633 414 23 99
Minnesota 80 327 318,835 83 24,938 6,416 13 100
Mississippi 17 69 79,619 82 4,024 52 50 94
Missouri 35 291 228,001 97 12,797 505 54 98
Montana 14 195 95,575 100 8,176 n/a 43 100
Nebraska 31 120 57,083 100 6,631 2,355 13 100
Nevada 7 23 32,360 86 4,269 11 50 100
New Hampshire 9 31 55,127 100 8,357 n/a 56 100
New Mexico 12 78 42,862 100 3,513 157 42 99
New York 30 84 156,560 100 12,356 1,389 24 99
North Carolina 16 254 363,535 100 22,373 12,162 44 100
North Dakota 20 219 144,958 100 16,974 4,693 35 99
Ohio 34 74 196,333 85 22,842 1,883 18 100
Oklahoma 35 281 193,867 89 36,405 167 31 99
Oregon 27 53 76,314 85 12,052 132 7 100
Pennsylvania 21 611 541,510 100 14,528 133 19 100
South Carolina 13 183 110,272 100 9,972 2 38 100
South Dakota 27 178 127,989 85 5,905 1,443 22 100
Tennessee 20 435 326,380 100 24,552 n/a 55 100
Texas 46 346 274,770 98 27,683 1,357 30 98
Utah 10 51 69,184 100 6,015 158 20 100
Vermont 9 40 63,497 100 9,160 154 56 100
Virginia 15 164 78,872 93 7,338 472 27 98
Washington 18 31 79,713 100 10,994 42 28 100
West Virginia 6 13 16,316 100 1,430 310 0 100
Wisconsin 73 347 503,543 84 25,785 8,044 30 100
Wyoming 5 25 24,725 83 3,315 130 20 96
  Totals 1,120 6,642 6,620,078 94 % 581,921 74,790 29 % 98 %

  Equal access gives customers a choice of long distance carrier.  Although not a new service, NECA continues to track progress toward the
   goal of 100% equal access capability.
*  Individual data withheld to maintain company confidentiality. All data included in totals.
Source:  National Exchange Carrier Association "Trends 2006 - Making Progress in Broadband", a survey of more than 1,000 small,
              mostly rural telephone companies.
Companies
Table 17.5
Broadband Capabilities of NECA's 2006 Rural Incumbent LEC Survey Respondents
with DSL ATM Service Equal Access

Equipped for
Central
Switches
ProvidingEquipped Access
Access Lines
BroadbandAccess
Lines Lines
OfficesCompaniesADSL
 17 - 9
Note:  1996 total reflects one-time change in law affecting patents.
Source:  U.S. Patent and Trademark Office, Patent Counts by Class by Year, January 1977 - December 2005,
             Telecommunications Classes 370, 375, 379 and 455, (September 2006), available at
             http://www.uspto.gov/go/taf/cbcby.pdf. 
Chart 17.1
Telecommunications Patents
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Patents
2,309 2,389 2,598 2,977 3,821 4,510 5,613 5,090 7,861 8,634 9,106 9,000 9,641 10,391 12,142 11,510 
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
17 - 10
Table 17.6
Capital Expenditures for Structures and Equipment 1/
(Expenditure Amounts Shown in Millions)
Industry 2/  1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Wireline Telecommunications
Carriers
Expenditures for Structures
    New $10,652 3/ $18,021 $14,482 $7,820 $9,825 3/ 
    Used 12      3/ 205 18 1 52      3/ 
        Total 10,664 17,309 18,226 14,500 7,821 9,877 6,118
Expenditures for Equipment
    New 39,828 3/ 55,902 57,436 26,986 16,918 3/ 
    Used 78      3/ 77 38 12 41      3/ 
        Total 39,905 42,442 55,980 57,474 26,998 16,959 15,922
Total Expenditures for 
Structures and Equipment $50,570 $59,752 $74,206 $71,974 $34,819 $26,836 $24,020
Wireless Telecommunications
Carriers (Except Satellite)
Expenditures for Structures
    New $2,387 $5,026 $7,674 $11,313 $8,245 $11,512 $11,685
    Used * 3 58 8 7 2 31
        Total 2,387 5,030 7,732 11,321 8,252 11,514 11,716
Expenditures for Equipment
    New 5,841 9,350 17,589 12,695 12,210 9,459 12,278
    Used 6 43 161 13 29 16 4
        Total 5,841 9,393 17,750 12,708 12,238 9,475 12,282
Total Expenditures for 
Structures and Equipment $8,228 $14,422 $25,482 $24,028 $20,490 $20,989 $23,998
Telecommunications Resellers,
Satellite, and Other
Telecommunications
Expenditures for Structures
    New $2,089 $1,410 $1,951 $2,233 $1,556 $3,499 $397
    Used * 4 3 5 3 133 6
        Total 2,089 1,414 1,954 2,238 1,560 3,632 403
Expenditures for Equipment
    New 4,188 8,795 11,495 7,288 4,119 809 3,095
    Used 4 49 164 78 12 96 22
        Total 4,192 8,845 11,659 7,367 4,131 905 3,117
Total Expenditures for 
Structures and Equipment $6,281 $10,259 $13,613 $9,605 $5,691 $4,337 $3,520
Telephone and Other 
Communications Services
Expenditures for Structures
    New $6,545 $9,193 $9,672 $15,128 3/ $27,646 $28,028 $17,621 $24,836 $12,082
    Used 263 185 218 12      3/ 266 31 11 187 37
        Total 6,809 9,378 9,890 15,140 23,753 27,912 28,059 17,633 25,023 18,237
Expenditures for Equipment
    New 30,802 37,985 46,667 49,857 3/ 84,986 77,419 43,315 27,186 15,373
    Used 138 299 406 88      3/ 402 129 53 153 26
        Total 30,939 38,283 47,074 49,938 60,680 85,389 77,549 43,367 27,339 31,321
Total Expenditures for 
Structures and Equipment $37,799 $47,661 $56,963 $65,079 $84,433 $113,301 $105,607 $61,000 $52,162 $51,538
Note:  Detail may not add to totals shown due to rounding.
 *  Represents amounts greater than $0 but less than $500,000.
 1/ Capital expenditures include capitalized computer sofware, capitalized interest during construction and expenditures for
land development and improvement.  Capital expenditures exclude equipment acquired under operating leases, good will
and expenditures for subsidiaries and branches located outside the United States. 
 2/ For 1995 through 1997, data represent Standard Industrial Classification (SIC) industries 481, 482, and 489.  Starting in 1998, 
data are based on the North American Industry Classification System (NAICS). NAICS Codes are 51331 for Wireline
51332 for Wireless and 51333, 51334 and 51339 for others. For 2004 they are 5171, 5172, and 5173, 5174, and 5179, respectively.
 3/ Data withheld by the Census Bureau to maintain firm confidentiality
 Source:  U.S. Census Bureau, Annual Capital Expenditures, (Issued March 2006) Table 4a.  See:  http://www.census.gov/csd/ace/ 
17 - 11
Chart 17.2
Capital Expenditures for Structures and Equipment by Carriers
Per Dollar of End-User Telecommunications Revenues
1
 Source:  U.S. Census Bureau, Annual Capital Expenditures ;  Industry Analysis and Technology Division, Wireline Competition 
                Bureau, Telecommunications Industry Revenues  (March 2006).   
1 
Capital expenditures per dollar of end-user telecommunications revenues are derived by dividing expenditures figures in Table 17.6 by end-user 
revenues data in Table 15.1.  Wireline, Reseller, Satellite & Other end-user revenues are calculated by subtracting wireless end-user revenues from 
total end-user revenues. 
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Wireless Carriers $0.25 $0.32 $0.44 $0.35 $0.27 $0.25 $0.25
Wireline, Resellers, Satellite & Other $0.35 $0.41 $0.51 $0.49 $0.26 $0.18 $0.17
1998 1999 2000 2001 2002 2003 2004
17 - 12
 
 18 - 1  
18 Telephone Numbers 
 
 In 1994, many area codes were nearing exhaustion as demand for telephone numbers 
continued to rise.  At the time, the middle digit of all area codes was either a 0 or a 1, and 
the supply of those area codes was dwindling.  On January 1, 1995, the restriction on the 
middle digit was removed, making 640 new area codes available.  New area codes were 
added at a rapid rate during the late 1990s, with forty-four new area codes being opened in 
1997 alone.  Subsequent years saw fewer added area codes.  In 2000, thirteen area codes 
were added, and in 2005 two area codes were added.  The North American Numbering Plan 
Administration (NANPA) (which is part of NeuStar, Inc.) expects to open four new area 
codes in 2006.  The above counts of area code activation are for the contiguous United 
States, offshore points, Canada, and the Caribbean.  Table 18.1 shows historical area code 
information by state from 1947 to 2006.  The changes in area codes from 1999 to 2006 are 
shown in Table 18.2.   
 
 AT&T introduced toll-free service in 1967.  The Commission changed procedures 
for routing toll-free calls on May 1, 1993 to make toll-free numbers "portable."  This change 
enabled customers to switch service providers yet still retain their toll-free numbers. 
Between 1993 and 2000, the quantity of assigned toll-free numbers grew rapidly: growing 
from 3.9 million in 1993 to 24.2 million in 2000.  New toll-free calling codes were opened 
to meet the demand.  In March 1996, calling code 888 was placed into service.  The third 
toll-free calling code (877) went into effect April 4, 1998, and the fourth toll-free calling 
code (866) went into effect July 29, 2000.  The growth of toll-free telephone numbers for 
the four toll-free codes (800, 888, 877, and 866) is shown in Table 18.3 and Chart 18.1.  
Tables 18.4 through 18.7 show the growth of each individual toll-free code:  800, 888, 877, 
and 866, respectively.  In the event that another toll-free code is needed, the 855 code would 
be opened.  Database Service Management, Inc./Team DSMI, a subsidiary of Telcordia 
Technologies, Inc., maintains the Toll-Free Service Management System for the United 
States and Canada. 
 
 Dialing patterns differ from state to state.  For instance, in some states, callers 
making local calls within an area code are required to dial only the 7-digit phone number.  
In other states, callers making local calls must dial the ten-digit phone number (area code 
plus the phone number).  Finally, in some states, local callers must dial a 1 before dialing 
the area code plus the phone number.  Each states public utilities commission (or public 
service commission) determines the calling pattern for each area code in their state.  The 
dialing patterns for area codes are listed in area code planning letters, which are available on 
the North American Numbering Plan Administrators web site at www.nanpa.com. 
 
 For both local and domestic toll calls, there are two basic types of calls:  those within 
an area code and those between area codes.  Table 18.8 shows the dialing patterns for all 
four types of calls.  The last column of Table 18.8 indicates whether all toll calls in that state 
require callers to dial a 1 before the telephone number. 
 
Area 
Code State/Jurisdiction
Area Code 
Opened
Area 
Code State/ Jurisdiction
Area Code 
Opened
Area 
Code State/ Jurisdiction
Area Code 
Opened
Area 
Code State/ Jurisdiction
Area Code 
Opened
205 Alabama Jan-47 478 Georgia Aug-00 952 Minnesota Feb-00 724 Pennsylvania Feb-98
334 Alabama Jan-95 762 Georgia May-06 601 Mississippi Jan-47 570 Pennsylvania Dec-98
256 Alabama Mar-98 671 Guam Jul-97 228 Mississippi Sep-97 484 Pennsylvania Jun-99
251 Alabama Jun-01 808 Hawaii Jan-57 662 Mississippi Apr-99 267 Pennsylvania Jul-99
907 Alaska Jan-57 208 Idaho Jan-47 769 Mississippi Mar-05 878 Pennsylvania Aug-01
602 Arizona Jan-47 217 Illinois Jan-47 314 Missouri Jan-47 787 Puerto Rico Mar-96
520 Arizona Mar-95 312 Illinois Jan-47 816 Missouri Jan-47 939 Puerto Rico Sep-01
480 Arizona Mar-99 618 Illinois Jan-47 417 Missouri Jan-50 401 Rhode Island Jan-47
623 Arizona Mar-99 815 Illinois Jan-47 573 Missouri Jan-96 803 South Carolina Jan-47
928 Arizona Jun-01 309 Illinois Jan-57 660 Missouri Oct-97 864 South Carolina Dec-95
501 Arkansas Jan-47 708 Illinois Nov-89 636 Missouri May-99 843 South Carolina Mar-98
870 Arkansas Apr-97 847 Illinois Jan-96 406 Montana Jan-47 605 South Dakota Jan-47
479 Arkansas Jan-02 630 Illinois Aug-96 402 Nebraska Jan-47 901 Tennessee Jan-47
213 California Jan-47 773 Illinois Oct-96 308 Nebraska Jan-55 615 Tennessee Jan-54
415 California Jan-47 224 Illinois Jan-02 702 Nevada Jan-47 423 Tennessee Sep-95
916 California Jan-47 219 Indiana Jan-47 775 Nevada Dec-98 931 Tennessee Sep-97
714 California Jan-51 317 Indiana Jan-47 603 New Hampshire Jan-47 865 Tennessee Nov-99
805 California Jan-57 812 Indiana Jan-47 201 New Jersey Jan-47 731 Tennessee Feb-01
209 California Jan-58 765 Indiana Feb-97 609 New Jersey Jan-57 214 Texas Jan-47
408 California Jan-59 260 Indiana Jan-02 908 New Jersey Nov-90 512 Texas Jan-47
707 California Jan-59 574 Indiana Jan-02 732 New Jersey Jun-97 713 Texas Jan-47
619 California Jan-82 319 Iowa Jan-47 973 New Jersey Jun-97 915 Texas Jan-47
818 California Jan-84 515 Iowa Jan-47 856 New Jersey Jun-99 817 Texas Jan-53
510 California Sep-91 712 Iowa Jan-47 551 New Jersey Dec-01 806 Texas Jan-57
310 California Nov-91 641 Iowa Jul-00 848 New Jersey Dec-01 409 Texas Nov-82
909 California Nov-92 563 Iowa Mar-01 862 New Jersey Dec-01 903 Texas Nov-90
562 California Jan-97 316 Kansas Jan-47 505 New Mexico Jan-47 210 Texas Nov-92
760 California Mar-97 913 Kansas Jan-47 212 New York Jan-47 972 Texas Sep-96
626 California Jun-97 785 Kansas Jul-97 315 New York Jan-47 281 Texas Nov-96
650 California Aug-97 620 Kansas Feb-01 518 New York Jan-47 254 Texas May-97
530 California Nov-97 502 Kentucky Jan-47 716 New York Jan-47 940 Texas May-97
925 California Mar-98 606 Kentucky Jan-55 914 New York Jan-47 830 Texas Jul-97
949 California Apr-98 270 Kentucky Apr-99 516 New York Jan-51 956 Texas Jul-97
323 California Jun-98 859 Kentucky Apr-00 607 New York Jan-54 832 Texas Jan-99
831 California Jul-98 504 Louisiana Jan-47 718 New York Sep-84 361 Texas Feb-99
559 California Nov-98 318 Louisiana Jan-57 917 New York Jan-92 469 Texas Jul-99
661 California Feb-99 225 Louisiana Aug-98 646 New York Jul-99 936 Texas Feb-00
858 California Jun-99 337 Louisiana Oct-99 347 New York Oct-99 979 Texas Feb-00
951 California Jul-04 985 Louisiana Feb-01 631 New York Nov-99 682 Texas Oct-00
424 California Aug-06 207 Maine Jan-47 845 New York Jun-00 430 Texas Feb-03
303 Colorado Jan-47 301 Maryland Jan-47 585 New York Nov-01 325 Texas Apr-03
719 Colorado Mar-88 410 Maryland Oct-91 704 North Carolina Jan-47 432 Texas Apr-03
970 Colorado Apr-95 240 Maryland Jun-97 919 North Carolina Jan-54 340 US Virgin Islands Jun-97
720 Colorado Jun-98 443 Maryland Jun-97 910 North Carolina Nov-93 801 Utah Jan-47
203 Connecticut Jan-47 413 Massachusetts Jan-47 336 North Carolina Dec-97 435 Utah Sep-97
860 Connecticut Aug-95 617 Massachusetts Jan-47 252 North Carolina Mar-98 802 Vermont Jan-47
302 Delaware Jan-47 508 Massachusetts Jul-88 828 North Carolina Mar-98 703 Virginia Jan-47
202 District of Columbia Jan-47 781 Massachusetts Sep-97 980 North Carolina Apr-01 804 Virginia Jun-73
305 Florida Jan-47 978 Massachusetts Sep-97 701 North Dakota Jan-47 540 Virginia Jul-95
813 Florida Jan-53 339 Massachusetts May-01 670 Northern Marianas Is. Jul-97 757 Virginia Jul-96
904 Florida Jul-65 351 Massachusetts May-01 216 Ohio Jan-47 571 Virginia Mar-00
407 Florida Apr-88 774 Massachusetts May-01 419 Ohio Jan-47 434 Virginia Jun-01
941 Florida May-95 857 Massachusetts May-01 513 Ohio Jan-47 276 Virginia Sep-01
954 Florida Sep-95 313 Michigan Jan-47 614 Ohio Jan-47 206 Washington Jan-47
352 Florida Dec-95 517 Michigan Jan-47 330 Ohio Mar-96 509 Washington Jan-57
561 Florida May-96 616 Michigan Jan-47 937 Ohio Sep-96 360 Washington Jan-95
850 Florida Jun-97 906 Michigan Jan-61 440 Ohio Aug-97 253 Washington Apr-97
786 Florida Mar-98 810 Michigan Dec-93 740 Ohio Dec-97 425 Washington Apr-97
727 Florida Jul-98 248 Michigan May-97 234 Ohio Oct-00 304 West Virginia Jan-47
863 Florida Sep-99 734 Michigan Dec-97 567 Ohio Jan-02 414 Wisconsin Jan-47
321 Florida Nov-99 231 Michigan Jun-99 405 Oklahoma Jan-47 715 Wisconsin Jan-47
386 Florida Feb-01 989 Michigan Apr-01 918 Oklahoma Jan-53 608 Wisconsin Jan-55
754 Florida Aug-01 586 Michigan Sep-01 580 Oklahoma Nov-97 920 Wisconsin Jul-97
772 Florida Feb-02 269 Michigan Jul-02 503 Oregon Jan-47 262 Wisconsin Sep-99
239 Florida Mar-02 947 Michigan Sep-02 541 Oregon Nov-95 307 Wyoming Jan-47
404 Georgia Jan-47 218 Minnesota Jan-47 971 Oregon Oct-00
912 Georgia Jan-54 612 Minnesota Jan-47 215 Pennsylvania Jan-47
706 Georgia May-92 507 Minnesota Jan-54 412 Pennsylvania Jan-47
770 Georgia Aug-95 320 Minnesota Mar-96 717 Pennsylvania Jan-47
678 Georgia Jan-98 651 Minnesota Jul-98 814 Pennsylvania Jan-47
229 Georgia Aug-00 763 Minnesota Feb-00 610 Pennsylvania Jan-94
Source: North American Numbering Plan Administrator.
Table 18.1
Area Codes by State
(1947 - 2006)
18 - 3
Table 18.2
Area Code Assignments
(1999-2006)
Location Date Previous Added
Code Code
Texas (Houston) Jan-99 713 832
California Feb-99 805 661
Texas Feb-99 512 361
Arizona Mar-99 602 480
Arizona Mar-99 602 623
Kentucky Apr-99 502 270
Mississippi Apr-99 601 662
Alberta May-99 403 780
Missouri May-99 314 636
Michigan Jun-99 616 231
Pennsylvania Jun-99 610 484
California Jun-99 619 858
New Jersey Jun-99 609 856
New York (Manhattan) Jul-99 212 646
Pennsylvania Jul-99 215 267
Texas (Dallas) Jul-99 214 469
Florida Sep-99 941 863
Wisconsin Sep-99 414 262
New York Oct-99 718 347
Louisiana Oct-99 318 337
Florida Nov-99 407 321
New York Nov-99 516 631
Tennessee Nov-99 423 865
Texas Feb-00 409 936
Texas Feb-00 409 979
Minnesota Feb-00 612 763
Minnesota Feb-00 612 952
Virginia Mar-00 703 571
Kentucky Apr-00 606 859
New York Jun-00 914 845
Iowa Jul-00 515 641
Georgia Aug-00 912 229
Georgia Aug-00 912 478
Oregon Oct-00 503 971
Texas Oct-00 817 682
Ohio Oct-00 330 234
Kansas Feb-01 316 620
Louisiana Feb-01 504 985
Tennessee Feb-01 901 731
Florida Feb-01 904 386
Ontario Mar-01 416 647
Iowa Mar-01 319 563
North Carolina Apr-01 704 980
Michigan Apr-01 517 989
Massachusetts May-01 508 774
18 - 4
Table 18.2
Area Code Assignments -- Continued
(1999-2006)
Location Date Previous Added
Code Code
Massachusetts May-01 617 857
Massachusetts May-01 781 339
Massachusetts May-01 978 351
Virginia Jun-01 804 434
Ontario Jun-01 905 289
Alabama Jun-01 334 251
Arizona Jun-01 520 928
Florida Aug-01 954 754
Pennsylvania Aug-01 412 878
Virginia Sep-01 540 276
Puerto Rico Sep-01 787 939
Michigan Sep-01 810 586
British Columbia Nov-01 604 778
New York Nov-01 716 585
New Jersey Dec-01 201 551
New Jersey Dec-01 732 848
New Jersey Dec-01 973 862
Ohio Jan-02 419 567
Illinois Jan-02 847 224
Indiana Jan-02 219 260
Indiana Jan-02 219 574
Arkansas Jan-02 501 479
Florida Feb-02 561 772
Florida Mar-02 941 239
Michigan Jul-02 616 269
Michigan Sep-02 248 947
Texas Feb-03 903 430
Texas Apr-03 915 325
Texas Apr-03 915 432
California Jul-04 909 951
Mississippi Mar-05 601 769
Dominican Republic Aug-05 809 829
Georgia May-06 706 762
California Aug-06 310 424
Ontario Oct-06 519 226
Quebec Nov-06 514 438
NA - Not applicable.
Note:  For years 1984 - 1998, see Industry Analysis Division, Wireline Competition
          Bureau, Trends in Telephone Service (August 2003).
Source:  North American Numbering Plan Administrator (NANPA), which can be
             accessed at www.nanpa.com.
18 - 5
Table 18.3
Telephone Numbers Assigned for Toll-Free Service (800, 888, 877, 866)
Working  Miscellaneous Total Spare Numbers  
Year Month Numbers Numbers 
1
Numbers Still Available  
1993 December 3,155,955      731,438      3,887,393      3,822,607       
1994 December 4,948,605      763,235      5,711,840      1,998,160      
1995 December 6,700,576      286,487      6,987,063      722,937      
1996 December 9,527,982      945,671      10,473,653      5,216,347      
1997 December 12,980,714      996,449      13,977,163      1,712,837      
1998 December 16,200,883      965,466      17,166,349      6,503,651      
1999 December 19,677,001      1,101,964      20,778,965      2,891,035      
2000 December 23,022,015      1,178,096      24,200,111      7,449,889      
2001 December 23,453,029      1,027,973      24,481,002      7,168,998      
2002 December 22,496,215      1,051,232      23,547,447      8,102,553      
2003 December 21,108,662      941,520      22,050,182      9,599,818      
2004 December 22,159,440      1,145,661      23,305,101      8,344,899      
2005 December 22,474,643      957,835      23,432,478      8,217,522      
2006 June 22,292,943      1,113,803      23,406,746      8,243,254      
Note:  For individual month assignments through June 2003, see Industry Analysis and Technology Division,
          Wireline Competition Bureau, Trends in Telephone Service  (August 2003).
* Toll-free (800) service was initially offered by AT&T in 1967.  On May 1, 1993, procedures for routing toll-
   free calls were changed and 800 numbers were made "portable" so customers who switched service providers
   could retain their numbers.  Due to the growth in toll-free numbers, a new toll-free calling code, 888, was added 
   in March 1996, which made it possible to assign about 8 million new toll-free numbers.  A third toll-free calling
   code, 877, was added in April 1998; and a fourth toll-free code, 866, was added in July 2000.
 
1
 Miscellaneous numbers include those in the 800, 888, 877, and 866 service management systems maintained
 by Database Service Management, Inc., and categorized as reserved, assigned but not yet activated, recently
 disconnected, or suspended.
Chart 18.1
Working Toll-Free Numbers
(Numbers in Millions)
0.0
5.0
10.0
15.0
20.0
25.0
Numbers
3.2 4.9 6.7 9.5 13.0 16.2 19.7 23.0 23.5 22.5 21.1 22.2 22.5 22.3
Dec 
1993
Dec 
1994
Dec 
1995
Dec 
1996
Dec 
1997
Dec 
1998
Dec 
1999
Dec 
2000
Dec 
2001
Dec 
2002
Dec 
2003
Dec 
2004
Dec 
2005
Jun 
2006
 18 - 6
Table 18.4
Telephone Numbers Assigned for 800 Toll-Free Service
 
Working    Miscellaneous   Total   Spare Numbers
Year  Month Numbers   Numbers 
1
  Numbers   Still Available
1993 June 2,589,123     722,006     3,311,129     4,398,871     
September 2,818,262     639,547     3,457,809     4,252,191     
December 3,155,955     731,438     3,887,393     3,822,607     
1994 March 3,516,620     743,813     4,260,433     3,449,567     
June 3,933,037     792,698     4,725,735     2,984,265     
September 4,506,014     841,381     5,347,395     2,362,605     
December 4,948,605     763,235     5,711,840     1,998,160     
1995 March 5,528,723     793,771     6,322,494     1,387,506     
June 6,340,534     481,633     6,822,167     887,833     
September 6,503,018     437,215     6,940,233     769,767     
December 6,700,576     286,487     6,987,063     722,937     
1996 March 6,907,098     293,244     7,200,342     509,658     
June 6,986,821     324,899     7,311,720     398,280     
September 7,119,167     310,562     7,429,729     280,271     
December 7,272,819     343,905     7,616,724     93,276     
1997 March 7,402,769     305,362     7,708,131     1,869     
June 7,415,591     293,802     7,709,393     607     
September 7,427,717     280,668     7,708,385     1,615     
December 7,429,160     267,429     7,696,589     13,411     
1998 March 7,455,240     249,964     7,705,204     4,796     
June 7,480,468     227,041     7,707,509     2,491     
September 7,489,271     219,080     7,708,351     1,649     
December 7,487,529     215,267     7,702,796     7,204     
1999 March 7,498,527     204,515     7,703,042     6,958     
June 7,502,118     207,061     7,709,179     821     
September 7,523,302     185,363     7,708,665     1,335     
December 7,505,737     202,416     7,708,153     1,847     
2000 March 7,516,391     193,246     7,709,637     363     
June 7,570,082     139,444     7,709,526     474     
September 7,572,091     137,705     7,709,796     204     
December 7,566,810     132,887     7,699,697     10,303     
2001 March 7,434,621     264,967     7,699,588     10,412     
June 7,357,279     242,106     7,599,385     110,615     
September 7,383,111     164,881     7,547,992     162,008     
December 7,370,055     184,689     7,554,744     155,256     
2002 March 7,181,636     400,955     7,582,591     127,409     
June 7,234,847     282,005     7,516,852     193,148     
September 7,200,821     177,723     7,378,544     331,456     
December 7,210,159     203,268     7,413,427     296,573     
2003 March 7,182,120     224,536     7,406,656     303,344     
June 7,171,068     234,576     7,405,644     304,356     
September 7,031,806     222,846     7,254,652     455,348     
December 7,089,752     260,807     7,350,559     359,441     
2004 March 7,187,381     234,719     7,422,100     287,900     
June 7,181,216     187,107     7,368,323     341,677     
September 7,262,915     197,252     7,460,167     249,833     
December 7,332,085     208,368     7,540,453     169,547     
2005 March 7,267,936     234,679     7,502,615     207,385     
June 7,163,402     425,206     7,588,608     121,392     
September 7,160,678     495,326     7,656,004     53,996     
December 7,317,165     277,052     7,594,217     115,783     
2006 March 7,416,046     197,083     7,613,129     96,871     
June 7,330,416     317,525     7,647,941     62,059     
See Table 18.3 notes.
 18 - 7
Table 18.5
Telephone Numbers Assigned for 888 Toll-Free Service
Working    Miscellaneous   Total   Spare Numbers
Year  Month Numbers   Numbers 
1
  Numbers   Still Available
1996 March 267,874     568,574     836,448     7,143,552     
June 922,849     544,079     1,466,928     6,513,072     
September 1,641,519     590,345     2,231,864     5,748,136     
December 2,255,163     601,766     2,856,929     5,123,071     
1997 March 2,857,608     661,164     3,518,772     4,461,228     
June 3,660,984     681,981     4,342,965     3,637,035     
September 4,776,688     774,431     5,551,119     2,428,881     
December 5,551,554     729,020     6,280,574     1,699,426     
1998 March 6,167,479     728,415     6,895,894     1,084,106     
June 6,591,764     665,496     7,257,260     722,740     
September 6,898,718     612,254     7,510,972     469,028     
December 7,146,159     515,009     7,661,168     318,832     
1999 March 7,278,531     495,904     7,774,435     205,565     
June 7,428,424     231,697     7,660,121     319,879     
September 7,601,867     211,318     7,813,185     166,815     
December 7,643,158     324,405     7,967,563     12,437     
2000 March 7,685,423     230,035     7,915,458     64,542     
June 7,789,986     140,658     7,930,644     49,356     
September 7,806,252     173,588     7,979,840     160     
December 7,789,188     177,328     7,966,516     13,484     
2001 March 7,616,189     355,451     7,971,640     8,360     
June 7,548,761     270,198     7,818,959     161,041     
September 7,508,100     203,518     7,711,618     268,382     
December 7,452,071     190,727     7,642,798     337,202     
2002 March 6,964,624     577,910     7,542,534     437,466     
June 6,629,862     354,771     6,984,633     995,367     
September 6,682,043     92,050     6,774,093     1,205,907     
December 6,610,191     154,015     6,764,206     1,215,794     
2003 March 6,408,723     324,558     6,733,281     1,246,719     
June 6,228,846     251,701     6,480,547     1,499,453     
September 5,818,266     216,862     6,035,128     1,944,872     
December 5,711,949     250,662     5,962,611     2,017,389     
2004 March 5,680,105     133,824     5,813,929     2,166,071     
June 5,640,743     128,141     5,768,884     2,211,116     
September 5,716,957     210,068     5,927,025     2,052,975     
December 5,563,469     384,320     5,947,789     2,032,211     
2005 March 5,465,594     159,097     5,624,691     2,355,309     
June 5,306,927     296,729     5,603,656     2,376,344     
September 5,314,969     221,122     5,536,091     2,443,909     
December 5,265,331     196,817     5,462,148     2,517,852     
2006 March 5,049,966     321,175     5,371,141     2,608,859     
June 4,930,941     387,726     5,318,667     2,661,333     
See Table 18.3 notes.
 18 - 8
Table 18.6
Telephone Numbers Assigned for 877 Toll-Free Service
Working    Miscellaneous   Total   Spare Numbers
Year  Month Numbers   Numbers 
1
  Numbers   Still Available
1998 June 552,037     209,967     762,004     7,217,996     
September 1,072,046     206,714     1,278,760     6,701,240     
December 1,567,195     235,190     1,802,385     6,177,615     
1999 March 2,141,228     329,044     2,470,272     5,509,728     
June 2,899,466     410,026     3,309,492     4,670,508     
September 3,755,361     436,433     4,191,794     3,788,206     
December 4,528,106     575,143     5,103,249     2,876,751     
2000 March 5,436,297     598,702     6,034,999     1,945,001     
June 6,317,507     402,858     6,720,365     1,259,635     
September 6,539,180     496,015     7,035,195     944,805     
December 6,391,285     719,333     7,110,618     869,382     
2001 March 6,289,079     469,980     6,759,059     1,220,941     
June 6,094,898     715,097     6,809,995     1,170,005     
September 6,163,297     489,084     6,652,381     1,327,619     
December 6,214,863     345,468     6,560,331     1,419,669     
2002 March 6,174,529     340,472     6,515,001     1,464,999     
June 6,016,107     267,320     6,283,427     1,696,573     
September 5,656,158     275,722     5,931,880     2,048,120     
December 5,448,276     421,984     5,870,260     2,109,740     
2003 March 5,132,413     579,240     5,711,653     2,268,347     
June 4,791,792     376,236     5,168,028     2,811,972     
September 4,617,147     170,787     4,787,934     3,192,066     
December 4,536,366     191,410     4,727,776     3,252,224     
2004 March 4,528,716     163,856     4,692,572     3,287,428     
June 4,550,870     146,826     4,697,696     3,282,304     
September 4,537,840     214,197     4,752,037     3,227,963     
December 4,551,486     254,082     4,805,568     3,174,432     
2005 March 4,590,227     139,089     4,729,316     3,250,684     
June 4,498,452     232,477     4,730,929     3,249,071     
September 4,476,657     193,315     4,669,972     3,310,028     
December 4,424,365     212,543     4,636,908     3,343,092     
2006 March 4,387,383     178,974     4,566,357     3,413,643     
June 4,227,661     203,501     4,431,162     3,548,838     
See Table 18.3 notes.
 18 - 9
Table 18.7
Telephone Numbers Assigned for 866 Toll-Free Service
Working    Miscellaneous   Total   Spare Numbers
Year  Month Numbers   Numbers 
1
  Numbers   Still Available
2000 September 672,250     155,646     827,896     7,152,104     
December 1,274,732     148,548     1,423,280     6,556,720     
2001 March 1,652,602     361,888     2,014,490     5,965,510     
June 1,944,520     362,880     2,307,400     5,672,600     
September 2,256,792     308,801     2,565,593     5,414,407     
December 2,416,040     307,089     2,723,129     5,256,871     
2002 March 2,640,414     321,530     2,961,944     5,018,056     
June 2,864,605     219,232     3,083,837     4,896,163     
September 2,977,379     244,297     3,221,676     4,758,324     
December 3,227,589     271,965     3,499,554     4,480,446     
2003 March 3,461,686     299,700     3,761,386     4,218,614     
June 3,486,674     420,477     3,907,151     4,072,849     
September 3,609,244     265,446     3,874,690     4,105,310     
December 3,770,595     238,641     4,009,236     3,970,764     
2004 March 3,966,922     231,683     4,198,605     3,781,395     
June 4,281,378     263,560     4,544,938     3,435,062     
September 4,476,150     281,577     4,757,727     3,222,273     
December 4,712,400     298,891     5,011,291     2,968,709     
2005 March 5,015,324     267,412     5,282,736     2,697,264     
June 5,047,314     487,471     5,534,785     2,445,215     
September 5,259,730     352,226     5,611,956     2,368,044     
December 5,467,782     271,423     5,739,205     2,240,795     
2006 March 5,613,475     211,021     5,824,496     2,155,504     
June 5,803,925     205,051     6,008,976     1,971,024     
See Table 18.3 notes.
 18 - 10
Table 18.8
Number of Digits Necessary to Dial Local and Toll Calls in the U.S. (As of June 2006)
Local Calls Toll Calls Toll Calls
Within Same Between Within Same Between Require
State Area Code Area Codes Area Code Area Codes Dialing 1 +
Alabama 7
1
10
2
1 + 10 1 + 10 Yes
Alaska 7 1 + 10 1 + 10 1 + 10 Yes
Arizona 7 10 1 + 10 1 + 10 Yes
Arkansas 7 10 1 + 10 1 + 10 Yes
California 7
3
1 + 10 7
3
1 + 10 No
Colorado 7
4
10 1 + 10 1 + 10 Yes
Connecticut 7
5
10 1 + 10 1 + 10 Yes
Delaware 7 10 1 + 10 1 + 10 Yes
District of Columbia 7 10 NA 1 + 10 Yes
Florida 7
6
10 1 + 10 1 + 10 Yes
Georgia 7
7
10 1 + 10 1 + 10 Yes
Hawaii 7 NA 1 + 10 1 + 10 Yes
Idaho 7 7 1 + 10 1 + 10 Yes
Illinois 7
8
1 + 10 1 + 10 1 + 10 Yes
Indiana 7 10 1 + 10 1 + 10 Yes
Iowa 7 10 1 + 10 1 + 10 Yes
Kansas 7 10 1 + 10 1 + 10 Yes
Kentucky 7 10
9
1 + 10 1 + 10 Yes
Louisiana 7 10 1 + 10 1 + 10 Yes
Maine 7 1 + 10 7 1 + 10 No
Maryland 10 10 1 + 10 1 + 10 Yes
Massachusetts 10
10
10 1 + 10 1 + 10 Yes
Michigan 7
11
10 1 + 10 1 + 10 Yes
Minnesota 7 10
12
1 + 10 1 + 10 Yes
Mississippi 7
13
10 1 + 10 1 + 10 Yes
Missouri 7
14
10 1 + 10 1 + 10 Yes
Montana 7 7 1 + 10 1 + 10 Yes
Nebraska 7 7 1 + 10 1 + 10 Yes
Nevada 7 10 1 + 10 1 + 10 Yes
New Hampshire 7 1 + 10 7 1 + 10 No
New Jersey 10
15
1 + 10 10
15
1 + 10 No
New Mexico 7 NA 1 + 10 1 + 10 Yes
New York 7
16
1 + 10 7
16
1 + 10 No
North Carolina 7
17
10 1 + 10 1 + 10 Yes
North Dakota 7 7 1 + 10 1 + 10 Yes
Ohio 7
18
10 1 + 10 1 + 10 Yes
Oklahoma 7 7 1 + 10 1 + 10 Yes
Oregon 10
19
10 1 + 10 1 + 10 Yes
Pennsylvania 10
20
 1 + 10
21
10
20
1 + 10 No
Rhode Island 7 1 + 10 7 1 + 10 No
South Carolina 7 10 1 + 10 1 + 10 Yes
South Dakota 7 7 1 + 10 1 + 10 Yes
Tennessee 7 10
22
1 + 10 1 + 10 Yes
Texas 7
23
10 1 + 10 1 + 10 Yes
Utah 7 10
24
1 + 10 1 + 10 Yes
Vermont 7 1 + 10 1 + 10 1 + 10 Yes
Virginia 7
25
10 1 + 10 1 + 10 Yes
Washington 7
26
10 1 + 10 1 + 10 Yes
West Virginia 7 7 1 + 10 1 + 10 Yes
Wisconsin 7 1 + 10 1 + 10 1 + 10 Yes
Wyoming 7 7 1 + 10 1 + 10 Yes
NA - Not Applicable.
Source:  NPA database.  The database is available at www.nanpa.com/area_codes/index.html.  
 18 - 11
Notes to Table 18.8
1
In area code 659, 10-digit dialing is used.
2
In area code 659, 1+10-digit dialing is used.
3
In area codes 424 and 310, 1+10-digit dialing is used.
4
In area codes 303 and 720, 10-digit dialing is used.
5
In area codes 475 and 959, 10-digit dialing is used.
6
In area codes 305, 321, 407, 689, 754, 786, and 954, 10-digit dialing is used.
7
In area codes 404, 470, 678, 762 and 770, 10-digit dialing is used.
8
In area codes 224, 331, 872, 464, 706 and 847, 1+ 10-digit dialing is used.
9
In area codes 270 and 502, 7-digit dialing is used.
10
In area code 413, 7-digit dialing is used.
11
In area codes 248, 679 and 947, 10-digit dialing is used.
12
In area codes 218, 320, and 507, 7-digit dialing is used.
13
In area codes 601 and 769, 10-digit dialing is used.
14
In area codes 557 and 975, 10-digit dialing is used.
15
In area codes 609, 856, and 908, 7-digit dialing is used.
16
In area codes 212, 347, 646, 718, and 917, 1+10 digit dialing is used.
17
In area codes 704, 980 and 984, 10-digit dialing is used.
18
In area codes 234, 283, 330, 380, 419, and 567, 10-digit dialing is used.
19
In area code 541, 7-digit dialing is used.
20
In area codes 570, 717, and 814, 7-digit dialing is used.
21
In some area codes, local calls to some other area codes may be dialed using 10 digits.
22
In area codes 615 and 931, 7-digit dialing is used.
23
In area codes 214, 281, 430, 469, 682, 713, 817, 832, 903, and 972, 10-digit dialing is used.
24
In area code 435, 7-digit dialing is used.
25
In area codes 571 and 703, 10-digit dialing is used.
26
In area code 564, 10-digit dialing is used.
 18 - 12
19 - 1 
19 Universal Service 
 
1.  Overview 
 
There are four universal service support mechanisms:  1) High Cost, 2) Low Income, 
including Lifeline and Link-Up, 3) Schools and Libraries, and 4) Rural Health Care.
1
  High Cost 
support enables carriers with above-average costs to recover some of these costs from the 
support mechanisms, allowing these carriers to lower their end-user rates and/or to receive less 
money from state universal service support mechanisms. 
 
The Lifeline program promotes increased telephone subscribership by providing low-
income households with discounts on the monthly cost of telephone service.  The Link-Up 
America program promotes telephone subscribership by helping low-income households pay the 
initial costs of commencing telephone service. 
 
Schools and Libraries support enables eligible schools and libraries to obtain eligible 
services, including telecommunications services, at discounted rates.  Rural Health Care support 
allows rural health care providers to purchase telecommunications services at comparable urban 
rates. 
 
Table 19.1 shows universal service support disbursements for 2005.
2
  Chart 19.1 shows 
this information graphically for 2005.  Table 19.2 and Chart 19.2 show the type of service 
providers that received universal service support in 2005. 
 
2.  High Cost 
 
The High Cost support mechanisms include embedded high-cost loop support (HCLS),
3
 
safety net additive support (SNAS), safety valve support (SVS), local switching support (LSS), 
forward-looking high-cost model support (HCMS), interstate access support (IAS) for price-cap 
carriers, and interstate common line support (ICLS) for rate-of-return carriers.
4
 
 
HCLS provides assistance to companies with above average non-traffic-sensitive local 
loop costs  terminology that refers to the costs of providing loops connecting customers and 
their serving telephone company central office.  In addition, SNAS provides assistance to 
companies that have large increases in telecommunications plant in service.  SVS provides 
                                                 
1
 Additional information on universal service mechanisms is available in the Universal Service 
Monitoring Report (December 2006).  See http://www.fcc.gov/wcb/iatd/monitor.html. 
 
2
  The figures used in this table are for the calendar year and include disbursements that were paid out in 
2005. 
 
3
 This was formerly referred to as the Universal Service Fund, and still bears that name in the 
Commission rules.  It is now referred to as high-cost loop support to avoid confusion with the new, more 
comprehensive universal service support mechanisms that the Commission developed to implement the 
1996 Act.  See 47 C.F.R.  36.601. 
 
4
 Prior to July 1, 2004, rate-of-return carriers were eligible to receive long-term support (LTS).  Since that 
date, LTS was merged into ICLS. 
 
19 - 2 
additional assistance to rural carriers that make substantial investment after acquiring exchanges. 
 
LSS provides assistance to LECs with study areas of 50,000 or fewer access lines to help 
defray their higher per-line switching costs.  HCMS provides assistance for non-rural carriers 
based on their forward-looking costs of providing supported services as determined by the 
Commission's cost model.  The IAS mechanism provides support to price-cap carriers to replace 
the implicit support previously collected through interstate access charges.  The ICLS 
mechanism converts support implicit in the access rate structure of rate-of-return carriers to 
explicit and portable support.  ICLS recovers any shortfall between the allowed common line 
revenues of rate of return carriers and their subscriber line charge revenues.  As noted above, 
LTS was merged into ICLS as of July 1, 2004. 
 
Table 19.3 shows HCLS, LTS, LSS, HCMS, IAS, ICLS, SNAS, and SVS payments from 
1986 to 2006.  Table 19.4 shows payments by state for 2005. 
 
Table 19.5 shows high-cost support payments to ILECs and competitive eligible 
telecommunications carriers (CETCs) from 1996 to the present.  Chart 19.4 shows the percent of 
high-cost support received by CETCs.  Table 19.6 shows high-cost support payments by state for 
2005 to ILECs and CETCs and also to rural and non-rural carriers. 
 
3.  Low-Income Support:  Lifeline and Link-Up 
 
The Lifeline program promotes increased telephone subscribership by providing low-
income households with discounts on the monthly cost of telephone service.  The Link-Up 
America program increases telephone subscribership by helping low-income households pay the 
initial costs of commencing telephone service. 
 
The Lifeline program was created in 1984, and the Link-Up program was created in 
1987. For both of these programs, the rules were later modified to make the distribution of low-
income support competitively and technologically neutral by allowing all eligible 
telecommunications carriers, including wireless carriers, to receive support for providing 
Lifeline and Link-Up service.  In June 2000, the Commission further expanded the Lifeline and 
Link-Up programs to address the needs of households on tribal lands.
5
 
 
 Eligibility requirements for Lifeline and Link-Up vary from state to state.  In a state that 
has its own Lifeline program, the state may create its own eligibility requirements for the federal 
Lifeline program.  Those criteria must be based solely on income or factors directly related to 
income.  In addition, a state commission must ensure that its qualification criteria are reasonably 
designed to reach eligible residents of tribal lands within the state.  In those states that do not 
have their own Lifeline program, known as federal default states, Lifeline eligibility 
requirements are set by the FCC.  In federal default states, households must certify that they 
participate in at least one of the following seven federal programs:  Medicaid, food stamps, 
Supplemental Security Income (SSI), federal public housing assistance, the Low-Income Home 
Energy Assistance Program (LIHEAP), the National School Lunch Programs free lunch 
program, or Temporary Assistance to Needy Families.  By June 2005, consumers may also be 
able to qualify if their income is at or below 135% of the federal poverty guidelines. 
 
                                                 
5
 Federal-State Joint Board on Universal Service; Promoting Deployment and Subscribership in 
Unserved and Underserved Areas, Including Tribal and Insular Areas, Twelfth Report and Order, and 
Further Notice of Proposed Rulemaking, CC Docket No. 96-45, FCC 00-208, 15 FCC Rcd 12,208 (2000). 
19 - 3 
Eligible consumers living on tribal lands can receive federal Lifeline support if they (a) 
meet their states Lifeline eligibility requirements; (b) certify that they are enrolled in one of the 
seven federal programs listed above; or (c) participate in one of the following federal assistance 
programs:  Bureau of Indian Affairs (BIA) general assistance program, tribally administered 
Temporary Assistance for Needy Families (TANF), or Head Start (meeting the income-
qualifying standard). 
 
Under the Commissions rules, there are four tiers of federal Lifeline support.
6
  The first 
tier represents a monthly waiver of the federal subscriber line charge, which ranges between 
$3.50 and $6.50, varying by state and the carrier providing service.  Second-tier support is an 
additional $1.75 per-month reduction in the basic local rate.  All Lifeline subscribers receive at 
least the first two tiers of federal support.  The third tier of federal support is based on the 
amount of additional support mandated by the relevant state or otherwise provided by carriers.  
Federal support is available to match one-half of the tier-three support provided, up to a 
maximum of $1.75 in federal support.  Eligible subscribers living on tribal lands also qualify to 
receive a fourth tier of Lifeline support.  Tier-four support provides up to an additional $25 per 
month although all subscribers on tribal lands must pay at least $1 per month. 
 
The Commissions Link-Up program provides qualified low-income individuals with a 
federally financed 50% discount on initial connection charges up to $30.  Link-Up beneficiaries 
also may choose to schedule deferred payments of up to $200 over a one-year period, with the 
customary interest charges paid through federal support.  Eligible subscribers living on tribal 
lands may receive an additional discount of up to $70 to cover 100% of the charges between $60 
and $130. 
 
 Table 19.7 shows the minimum, maximum and average monthly Lifeline support as of 
March 31, 2005, by state.  The table contains both federal and state support, and indicates the 
additional contribution from the federal program to reduce local rates where states have 
authorized statewide or carrier specific intrastate local rate reductions. 
 
Table 19.8 contains historical Lifeline subscriber and Link-Up beneficiary data for 1987 
through 2005.  Table 19.9 present tribal and non-tribal lifeline subscriber and Link-Up 
beneficiary data by state for 2005. 
 
Table 19.10 and Chart 19.5 contain annual historical low-income support payments for 
the years 1988 through 2005.  Table 19.11 shows low-income support payments by state or 
jurisdiction for 2005.  Table 19.12 shows low-income support payments to ILECs and CETCs 
from 1996 to the present. Chart 19.6 shows the percent of low-income support received by 
CETCs. 
 
4.  Schools and Libraries 
 
The schools and libraries support mechanism also known as the E Rate enables schools 
and libraries to obtain eligible services at discounted rates.  Eligible schools and libraries receive 
telecommunications services, Internet access, and internal connections at discounts that range 
from 20 percent to 90 percent.  The level of the discount is generally based on the percentage of 
students eligible for the national school lunch program, or in the case of libraries, the percentage 
of students eligible for the national school lunch program in the school district where the library 
                                                 
6
 In addition, the Lifeline program compensates eligible telecommunication carriers for toll limitation 
service (TLS). 
19 - 4 
is located.  In addition, schools and libraries located in rural areas receive an additional discount. 
 
Table 19.13 shows funding commitments and disbursements to schools and libraries by 
funding year since 1998.  The commitments and disbursements are shown by the type of service 
funded (internal connections, Internet access, and telecommunications).  Chart 19.7 graphically 
shows the total schools and libraries funds committed and disbursed.  Table 19.14 shows, on a 
state-by-state basis, funding commitments to schools and libraries for the July 1, 2004 through 
June 30, 2005 Funding Year. 
 
5.  Rural Health Care  
 
The Rural Health Care support mechanism enables health care providers in rural areas to 
pay no more than their urban counterparts for similar telecommunications services necessary for 
the provision of health care.  Eligible rural health care providers can also receive a 25% discount 
off the monthly cost of Internet access reasonably related to the health care needs of the facility.  
Additionally, rural health care providers in entirely rural states are eligible to receive a 50% 
discount off the monthly cost of advanced telecommunications and information services 
reasonably related to the health care needs of the facility.  Further, mobile rural health care 
providers utilizing satellite service can receive support for the difference between the rate for the 
satellite service and the rate for an urban wireline service with a similar bandwith. 
 
Table 19.15 and Chart 19.8 show rural health care fund disbursements by service speed 
since 1998.  Table 19.16 shows rural health care fund disbursements by service speed and on a 
state-by-state basis for the funding period July 1, 2004 through June 30, 2005. 
 
6.  Contributions to the Universal Service Fund 
 
Carriers contribute to universal service support mechanisms based on interstate and 
international end-user revenues.  Since November 1999, all contributions to the USF are based 
on interstate end-user revenues.  Table 19.17 shows interstate and intrastate contribution rates 
since the first quarter of 1998.  Table 19.18 shows changes in the shares of contributions over 
time by type of service provider.  Shares have changed because of differential pricing, growth 
trends, mergers and wireless carriers now reporting greater shares of interstate revenues.
Mechanism
Percent of 
Total
High-Cost Support $3,824 58.7 %
  High-Cost Loop Support 1,219 18.7
  Safety Net Additive Support 15 0.2
  Safety-Valve 4 0.1
  High-Cost Model Support 292 4.5
  Long-Term Support 0 0.0
  Interstate Common Line Support 1,178 18.1
  Interstate Access Support 691 10.6
  Local Switching Support 425 6.5
Low-Income Support 809  12.4
School and Libraries 1,862  28.6
Rural Health Care 26  0.4
 
All Universal Service Support $6,520 100.0 %
     
  
Table 19.1
Universal Service Support Mechanisms:  2005
(Dollars in Millions)
Disbursements
Distribution of Universal Service Payments:  2005
Chart 19.1
Notes:  Figures may not add due to rounding.  The figures used in this table are for the 
calendar year and include disbursements that were committed over several years but 
paid out in calendar year 2005.  In Tables 19.12 -19.16, figures for the Schools and 
Libraries program and the Rural Health Care program are reported based on fiscal 
year rather than calendar year.
Source:  Universal Service Administration Company (USAC).
Low Income
12.4%
High Cost
58.7%
Rural Health 
Care
0.4%
Schools & 
Libraries
28.6%
19 - 5
 
High Cost Low Income Rural Health 
Care
Schools and 
Libraries
Total
Incumbent Local Exchange Carriers $3,185,670 $737,207 $4,412 $551,181 $4,478,470 68.7 %
Non-Traditional Providers
 1
0 0 0 710,024 710,024 10.9
Wireless Providers
 2
602,172 39,608 18 44,530 686,328 10.5
Competitive Local Exchange Carriers 
3
36,345 31,749 1,133 264,182 333,409 5.1
Internet Service Providers 0 0 150 133,420 133,570 2.0
Long Distance Providers 
4
0 0 19,618 110,796 130,413 2.0
Other Providers 
5
0 0 239 47,612 47,851 0.7
  Total $3,824,186 $808,565 $25,570 $1,861,745 $6,520,065 100.0 %
2 
Wireless providers include cellular, PCS and other mobile providers.
4 
Long distance providers include interexchange, operator service, toll resale, pre-paid card and other toll providers.
Source:  Compiled from data provided to the FCC by Universal Service Adminstrative Company (USAC).
Universal Service Support Received by Service Provider Type:  2005
5
 Other providers' services include paging and messaging, payphone service, private service, satellite service, specialized mobile 
service and wireless data.
Percent of 
Total
Table 19.2
Universal Service Support Received by Service Provider Type:  2005
(Dollars in Thousands)
Chart 19.2
1
 Non-traditional providers provide eligible software, hardware, and network devices.
3 
Competitive local exchange carriers include competitive access providers, local resale, other local and shared tenant service 
providers.
Incumbent Local Exchange 
Carriers
68.7%
Non-Traditional Providers
10.9%
Wireless Providers
10.5%
Internet Service Providers
2.0%
Competitive Local Exchange 
Carriers
5.1%
Long Distance Providers
2.0%
Other Providers
0.7%
 19 - 6
Year
High-Cost 
Loop 
Support
Safety Net 
Additive 
Support
Safety 
Valve 
Support
High-Cost 
Model 
Support
Long-Term 
Support
Interstate 
Common 
Line 
Support
Interstate 
Access 
Support
Local 
Switching 
Support
Total 
Support
1986 $56        -    -    -        -    -    -        - $56     
1987 126        -    -    -        -    -    -        - 126     
1988 183        -    -    -        -    -    -        - 183     
1989 265        -    -    - $236        -    -        - 500     
1990 339        -    -    - 263        -    -        - 602     
1991 485        -    -    - 272        -    -        - 757     
1992 609        -    -    - 306        -    -        - 915     
1993 705        -    -    - 323        -    -        - 1,028     
1994 725        -    -    - 347        -    -        - 1,072     
1995 750        -    -    - 382        -    -        - 1,132     
1996 763        -    -    - 426        -    -        - 1,188     
1997 794        -    -    - 470        -    -        - 1,263     
1998 827        -    -    - 473        -    - $390     1,690     
1999 864        -    -    - 473        -    - 380     1,718     
2000 874        -    - $219       478        - $279       385     2,235     
2001 927        -    - 206       492        - 577       390     2,592     
2002 1,045        -    - 233       493     $173       615       376     2,935     
2003 1,085     $9       $0       234       504     409       622       396     3,259     
2004 1,137     12       0       273       275     716       642       414     3,468     
2005 1,219     15       4       292       0     1,178       691       425     3,824     
2006* 1,284     20       2       332       -     1,231       657       467     3,993     
Note:  Detail may not appear to add to totals due to rounding.   
-  Support mechanism did not exist in that year.
Sources:  National Exchange Carrier Association (1986-1997), 
                Universal Service Administrative Company (1998-2005).
                Federal Universal Service Support Mechanisms Fund Size Projections for the Third Quarter 2006  (2006).
Total High-Cost Support Fund Payments
(In Millions of Dollars)
Table 19.3
High-Cost Support Fund Payment History
Chart 19.3
* Estimate for 2006 based on USAC projections.  Payments will increase if additional carriers become eligible.
$0   
$500   
$1,000   
$1,500   
$2,000   
$2,500   
$3,000   
$3,500   
$4,000   
Millions of
 D
o
lla
r
s
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
19 - 7
High-Cost 
Loop Support
Safety Net 
Additive 
Support
Safety Valve 
Support
High-Cost 
Model 
Support
Long-Term 
Loop Support
Interstate 
Common Line 
Support
Interstate 
Access 
Support
Local 
Switching 
Support Total Support
Alabama $19,307   $243   $0   $45,790   -$1   $17,913   $20,214   $5,878   $109,343   
Alaska 53,748   295   172   0   0   51,163   0   14,896   120,274   
American Samoa 654   0   0   0   0   1,371   0   292   2,318   
Arizona 33,039   147   44   0   0   11,891   19,353   10,077   74,550   
Arkansas 70,409   372   0   0   0   43,782   17,419   9,015   140,997   
California 36,639   204   0   0   0   22,618   34,362   5,043   98,866   
Colorado 34,620   50   0   0   0   19,089   20,808   4,710   79,277   
Connecticut 0   0   0   0   0   1,016   509   724   2,249   
Delaware 0   0   0   0   0   0   259   0   259   
District of Columbia 0   0   0   0   0   0   0   0   0   
Florida 12,464   0   0   0   -23   10,614   64,278   4,118   91,450   
Georgia 41,321   263   0   0   0   31,805   24,341   13,963   111,693   
Guam 9,531   0   0   0   0   9,635   0   0   19,165   
Hawaii 12,447   24   0   0   0   11,650   2,575   2,828   29,525   
Idaho 22,917   199   0   0   0   9,136   16,101   6,702   55,055   
Illinois 16,269   252   0   0   0   24,613   12,365   10,008   63,506   
Indiana 9,641   283   0   0   0   13,294   23,840   9,574   56,632   
Iowa 21,689   1,710   9   0   11   37,039   5,938   23,941   90,336   
Kansas 98,695   642   0   0   15   53,970   7,572   17,790   178,684   
Kentucky 23,658   4   0   16,997   0   19,387   18,294   5,260   83,600   
Louisiana 61,342   172   0   0   0   30,876   12,369   6,483   111,241   
Maine 7,297   0   0   2,044   21   12,265   232   6,953   28,812   
Maryland 266   90   0   0   0   631   2,428   910   4,327   
Massachusetts 214   38   0   0   0   523   1,889   970   3,634   
Michigan 24,586   132   0   0   -71   19,140   558   9,230   53,575   
Minnesota 36,743   2,646   0   0   17   45,914   5,115   22,917   113,352   
Mississippi 27,269   265   0   146,627   0   12,347   18,537   4,206   209,251   
Missouri 36,668   235   0   0   0   27,613   13,304   7,326   85,146   
Montana 27,234   207   0   19,867   0   19,917   1,313   8,193   76,731   
Nebraska 16,691   576   0   7,085   0   14,908   5,681   10,950   55,890   
Nevada 6,366   201   0   0   0   5,873   10,579   6,620   29,639   
New Hampshire 668   0   0   0   0   2,196   1,825   4,044   8,732   
New Jersey 0   0   0   0   0   66   366   900   1,332   
New Mexico 23,661   146   0   0   11   13,827   9,948   10,918   58,511   
New York 8,027   858   0   0   0   8,870   19,289   14,788   51,833   
North Carolina 11,896   0   0   0   0   25,490   36,959   5,834   80,179   
North Dakota 21,313   115   0   0   2   24,319   836   16,133   62,718   
Northern Mariana Islands 0   0   0   0   0   0   346   321   668   
Ohio 9,130   445   0   0   0   9,550   14,791   3,839   37,754   
Oklahoma 57,164   335   0   0   0   41,360   5,169   16,161   120,188   
Oregon 22,620   173   0   0   -570   17,922   20,142   8,182   68,469   
Pennsylvania 1,905   25   0   0   0   36,597   21,142   5,835   65,504   
Puerto Rico 0   0   0   0   0   133,786   0   0   133,786   
Rhode Island 0   0   0   0   0   0   44   0   44   
South Carolina 25,967   1,029   0   0   0   31,292   13,276   4,759   76,322   
South Dakota 31,587   601   13   2,455   1   28,274   146   14,711   77,788   
Tennessee 14,694   -26   0   0   0   22,705   10,142   7,170   54,684   
Texas 103,874   489   245   0   -101   66,702   39,592   19,215   230,017   
Utah 7,372   35   89   0   0   9,509   2,531   4,044   23,579   
Vermont 7,675   0   0   10,294   0   9,460   2,418   5,397   35,244   
Virgin Islands 14,410   0   0   0   0   8,208   0   0   22,618   
Virginia 3,697   -220   0   0   0   7,880   70,064   5,891   87,312   
Washington 27,104   66   0   0   -24   24,311   34,446   8,483   94,387   
West Virginia 15,462   118   0   26,328   0   2,213   19,680   2,517   66,318   
Wisconsin 33,768   1,558   3,806   0   497   61,839   369   28,387   130,225   
Wyoming 15,167   167   0   14,353   0   11,972   7,248   7,692   56,598   
  Total $1,218,883   $15,164   $4,378   $291,840   -$217   $1,178,343   $691,000   $424,795   $3,824,186   
Source:  The data are derived from individual company payments reported on the USAC web site.
Note
 
: The reason some values are negative is that support amounts include prior period adjustments.
Table 19.4
High-Cost Support Payments by State:  2005
(In Thousands of Dollars)
 19 - 8
Table 19.5
ILECs CETCs Total
1996 $1,188 $0 $1,188 0.0 %
1997 1,263 0 1,263 0.0
1998 1,690 0 1,690 0.0  
1999 1,717 1 1,718 0.0
2000 2,233 1 2,235 0.1
2001 2,575 17 2,592 0.7
2002 2,889 46 2,935 1.6
2003 3,129 130 3,259 4.0
2004 3,153 316 3,468 9.1
2005 3,186 639 3,824 16.7
  2006* 3,173 820 3,993 20.5
              Federal Universal Service Support Mechanisms Fund Size Projections 
              for the Third Quarter 2006 (2006).
High-Cost Support Received by Incumbent LECs and CETCs
(In Millions of Dollars)
Notes:  ILECs is an abbreviation for incumbent local exchange carriers.  CETCs is an 
abbreviation for competitive eligible telecommunications carriers.  CETCs include both 
wireless and wireline carriers.
Percent of High-Cost Support Received by CETCs
Chart 19.4
Percent CETCs
Sources:  National Exchange Carrier Association (1996-1997).
              Universal Service Administrative Company (1998-2005).
* Estimate for 2006 based on USAC projections.  
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
 
 
2006*
 19 - 9
 
ILECs 
1
CETCs 
2
Rural 
Carriers
Non-Rural 
Carriers
Total
Alabama $97,679      $11,664      10.7 % $43,505    $65,838    60.2 % $109,343    
Alaska 100,628      19,646      16.3 104,772    15,502    12.9 120,274    
American Samoa 2,318      0      0.0 2,318    0    0.0 2,318    
Arizona 61,805      12,746      17.1 58,227    16,324    21.9 74,550    
Arkansas 103,476      37,521      26.6 113,504    27,493    19.5 140,997    
California 98,674      191      0.2 66,930    31,936    32.3 98,866    
Colorado 72,050      7,227      9.1 56,232    23,045    29.1 79,277    
Connecticut 2,249      0      0.0 1,739    509    22.6 2,249    
Delaware 259      0      0.0 0    259    100.0 259    
District of Columbia 0      0      NA 0    0    NA 0    
Florida 81,140      10,310      11.3 45,655    45,795    50.1 91,450    
Georgia 102,638      9,055      8.1 87,325    24,368    21.8 111,693    
Guam 11,427      7,738      40.4 15,754    3,411    17.8 19,165    
Hawaii 17,568      11,956      40.5 21,595    7,929    26.9 29,525    
Idaho 55,055      0      0.0 55,055    0    0.0 55,055    
Illinois 63,505      1      0.0 52,921    10,585    16.7 63,506    
Indiana 54,481      2,151      3.8 35,173    21,459    37.9 56,632    
Iowa 55,619      34,717      38.4 72,705    17,631    19.5 90,336    
Kansas 132,251      46,433      26.0 161,628    17,056    9.5 178,684    
Kentucky 75,144      8,456      10.1 46,849    36,751    44.0 83,600    
Louisiana 85,913      25,328      22.8 91,278    19,963    17.9 111,241    
Maine 24,533      4,279      14.9 24,856    3,956    13.7 28,812    
Maryland 4,327      0      0.0 1,898    2,428    56.1 4,327    
Massachusetts 3,634      0      0.0 1,746    1,889    52.0 3,634    
Michigan 43,744      9,830      18.3 49,222    4,353    8.1 53,575    
Minnesota 81,420      31,932      28.2 99,396    13,956    12.3 113,352    
Mississippi 147,106      62,144      29.7 41,581    167,669    80.1 209,251    
Missouri 85,026      120      0.1 78,646    6,499    7.6 85,146    
Montana 72,678      4,053      5.3 55,826    20,905    27.2 76,731    
Nebraska 54,422      1,468      2.6 44,881    11,008    19.7 55,890    
Nevada 24,451      5,188      17.5 20,902    8,737    29.5 29,639    
New Hampshire 8,732      0      0.0 6,907    1,825    20.9 8,732    
New Jersey 1,332      0      0.0 1,332    0    0.0 1,332    
New Mexico 49,491      9,020      15.4 51,258    7,253    12.4 58,511    
New York 47,160      4,672      9.0 39,878    11,954    23.1 51,833    
North Carolina 72,921      7,258      9.1 47,488    32,692    40.8 80,179    
North Dakota 36,413      26,305      41.9 50,866    11,852    18.9 62,718    
Northern Mariana Islands 437      231      34.6 621    47    7.1 668    
Ohio 37,754      0      0.0 29,915    7,839    20.8 37,754    
Oklahoma 108,602      11,586      9.6 113,088    7,101    5.9 120,188    
Oregon 64,914      3,554      5.2 49,498    18,971    27.7 68,469    
Pennsylvania 63,460      2,044      3.1 55,623    9,881    15.1 65,504    
Puerto Rico 66,047      67,738      50.6 0    133,786    100.0 133,786    
Rhode Island 44      0      0.0 0    44    100.0 44    
South Carolina 76,322      0      0.0 65,577    10,745    14.1 76,322    
South Dakota 54,108      23,679      30.4 66,491    11,297    14.5 77,788    
Tennessee 53,510      1,174      2.1 46,844    7,840    14.3 54,684    
Texas 226,231      3,786      1.6 204,533    25,484    11.1 230,017    
Utah 23,302      278      1.2 22,130    1,449    6.1 23,579    
Vermont 28,418      6,826      19.4 20,552    14,692    41.7 35,244    
Virgin Islands 22,618      0      0.0 22,618    0    0.0 22,618    
Virginia 72,049      15,263      17.5 27,584    59,729    68.4 87,312    
Washington 65,990      28,398      30.1 55,490    38,897    41.2 94,387    
West Virginia 58,578      7,740      11.7 29,309    37,008    55.8 66,318    
Wisconsin 90,079      40,146      30.8 111,862    18,363    14.1 130,225    
Wyoming 41,936      14,662      25.9 32,343    24,255    42.9 56,598    
  Total $3,185,670      $638,516      16.7 % $2,703,927    $1,120,259    29.3 % $3,824,186    
NA - Not Applicable   
1
 ILECs is an abbreviation for incumbent local exchange carriers.
2 
CETCs is an abbreviation for competitive eligible telecommunications carriers.  CETCs include both wireline and wireless carriers. 
Source:  Universal Service Administrative Company.
Table 19.6
High-Cost Support by Type of Carriers:  2005
(In Thousands of Dollars)
Percent 
CETCs
 2
Percent Non-
Rural 
Carriers
 19 - 10
 
   
Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Min. Max. Avg. Min. Max. Avg.
Alabama $5.25  $8.25  $8.24  $0.00  $3.50  $3.48  $0.00  $1.75  $1.74  $5.25  $10.00  $9.99  $5.25  $13.50  $13.47  
Alaska 6.50  8.25  8.12  0.00  3.50  3.23  0.00  1.75  1.62  6.50  10.00  9.73  6.50  13.50  12.97  
American Samoa 8.25  8.25  8.25  0.00  0.00  0.00  0.00  0.00  0.00  8.25  8.25  8.25  8.25  8.25  8.25  
Arizona 8.05  8.25  8.20  0.00  3.50  2.76  0.00  1.75  1.38  8.05  10.00  9.58  8.05  13.50  12.34  
Arkansas 5.25  8.25  7.47  0.00  3.50  0.71  0.00  1.75  0.35  5.25  10.00  7.82  5.25  13.50  8.53  
California 3.97  8.25  6.63  0.00  3.50  2.46  0.00  1.75  1.23  3.97  10.00  7.85  3.97  13.50  10.31  
Colorado 8.25  8.25  8.25  0.00  3.50  3.49  0.00  1.75  1.75  8.25  10.00  10.00  8.25  13.50  13.49  
Connecticut 6.10  7.46  7.46  1.18  1.18  1.18  0.59  0.59  0.59  6.69  8.05  8.05  7.87  9.23  9.23  
Delaware 8.17  8.17  8.17  0.00  0.00  0.00  0.00  0.00  0.00  8.17  8.17  8.17  8.17  8.17  8.17  
District of Columbia 5.59  5.59  5.59  3.50  3.50  3.50  1.75  1.75  1.75  7.34  7.34  7.34  10.84  10.84  10.84  
Florida 8.20  8.25  8.24  3.04  3.50  3.50  1.52  1.75  1.75  9.72  10.00  9.99  12.76  13.50  13.49  
Georgia 3.50  8.25  8.25  0.00  3.50  3.38  0.00  1.75  1.69  3.50  10.00  9.94  3.50  13.50  13.32  
Guam 8.25  8.25  8.25  3.50  3.50  3.50  1.75  1.75  1.75  10.00  10.00  10.00  13.50  13.50  13.50  
Hawaii 8.25  8.25  8.25  0.00  0.00  0.00  0.00  0.00  0.00  8.25  8.25  8.25  8.25  8.25  8.25  
Idaho 6.50  8.25  8.14  0.00  3.50  3.49  0.00  1.75  1.75  6.50  10.00  9.89  6.50  13.50  13.38  
Illinois 6.24  8.25  6.65  0.00  0.00  0.00  0.00  0.00  0.00  6.24  8.25  6.65  6.24  8.25  6.65  
Indiana 6.75  8.25  7.51  0.00  0.00  0.00  0.00  0.00  0.00  6.75  8.25  7.51  6.75  8.25  7.51  
Iowa 5.25  8.25  7.25  0.00  3.50  0.01  0.00  1.75  0.00  5.25  10.00  7.25  5.25  13.50  7.26  
Kansas 6.96  8.25  7.31  3.38  3.50  3.50  1.69  1.75  1.75  8.65  10.00  9.06  12.03  13.50  12.56  
Kentucky 7.12  8.25  8.12  0.00  3.50  2.34  0.00  1.75  1.17  7.12  10.00  9.29  7.12  13.50  11.63  
Louisiana 8.25  8.25  8.25  0.00  3.50  0.00  0.00  1.75  0.00  8.25  10.00  8.25  8.25  13.50  8.25  
Maine 6.50  8.25  8.15  0.00  3.50  3.50  0.00  1.75  1.75  6.50  10.00  9.90  6.50  13.50  13.40  
Maryland 7.42  8.25  7.42  0.84  3.50  3.50  0.42  1.75  1.75  7.84  10.00  9.17  8.68  13.50  12.67  
Massachusetts 8.13  8.25  8.13  3.50  3.50  3.50  1.75  1.75  1.75  9.88  10.00  9.88  13.38  13.50  13.38  
Michigan 7.09  8.25  7.29  0.00  3.50  1.99  0.00  1.75  0.99  7.09  10.00  8.28  7.09  13.50  10.27  
Minnesota 6.65  8.25  7.15  0.00  3.50  1.54  0.00  1.75  0.77  6.65  10.00  7.92  6.65  13.50  9.46  
Mississippi 8.25  8.25  8.25  0.00  3.50  3.35  0.00  1.75  1.67  8.25  10.00  9.92  8.25  13.50  13.27  
Missouri 6.50  8.25  8.04  0.00  1.16  0.77  0.00  0.58  0.39  6.50  8.83  8.43  6.50  9.99  9.20  
Montana 8.23  8.25  8.24  0.00  3.50  2.93  0.00  1.75  1.47  8.23  10.00  9.70  8.23  13.50  12.64  
Nebraska 6.17  8.25  7.05  0.00  3.50  3.44  0.00  1.75  1.72  6.17  10.00  8.77  6.17  13.50  12.21  
Nevada 5.55  8.25  6.15  0.00  3.50  2.95  0.00  1.75  1.47  5.55  10.00  7.63  5.55  13.50  10.57  
New Hampshire 8.13  8.25  8.14  0.00  0.00  0.00  0.00  0.00  0.00  8.13  8.25  8.14  8.13  8.25  8.14  
New Jersey 7.02  8.25  8.00  0.00  3.46  3.43  0.00  1.73  1.72  7.02  9.98  9.72  7.02  13.44  13.15  
New Mexico 8.25  8.25  8.25  0.00  3.50  3.32  0.00  1.75  1.66  8.25  10.00  9.91  8.25  13.50  13.22  
New York 6.17  8.25  8.02  0.00  3.50  3.22  0.00  1.75  1.61  6.17  10.00  9.63  6.17  13.50  12.86  
North Carolina 7.41  8.25  7.92  0.00  3.50  3.49  0.00  1.75  1.75  7.41  10.00  9.67  7.41  13.50  13.16  
North Dakota 1.75  8.25  8.24  0.00  3.50  1.84  0.00  1.75  0.92  1.75  10.00  9.17  1.75  13.50  11.01  
N. Marianna Islands 8.25  8.25  8.25  0.00  0.00  0.00  0.00  0.00  0.00  8.25  8.25  8.25  8.25  8.25  8.25  
Ohio 7.12  8.25  7.35  0.00  3.50  3.31  0.00  1.75  1.65  7.12  10.00  9.01  7.12  13.50  12.31  
Oklahoma 6.96  8.25  7.18  0.00  3.50  0.55  0.00  1.75  0.28  6.96  10.00  7.45  6.96  13.50  8.01  
Oregon 7.75  8.25  8.24  0.00  3.50  3.47  0.00  1.75  1.74  7.75  10.00  9.97  7.75  13.50  13.45  
Pennsylvania 5.44  8.25  7.80  0.00  0.00  0.94  0.00  0.00  0.47  5.44  8.25  8.27  5.44  8.25  9.21  
Puerto Rico 8.25  8.25  8.25  3.36  3.50  3.37  1.68  1.75  1.68  9.93  10.00  9.93  13.29  13.50  13.30  
Rhode Island 8.13  8.19  8.13  0.00  3.50  3.38  0.00  1.75  1.69  8.13  9.94  9.82  8.13  13.44  13.20  
South Carolina 6.97  8.25  8.22  0.00  3.50  3.49  0.00  1.75  1.74  6.97  10.00  9.97  6.97  13.50  13.45  
South Dakota 6.50  8.25  8.20  0.00  1.76  0.03  0.00  0.88  0.01  6.50  9.13  8.22  6.50  10.89  8.25  
Tennessee 6.82  8.25  8.12  0.00  3.50  3.12  0.00  1.75  1.56  6.82  10.00  9.68  6.82  13.50  12.79  
Texas 5.25  8.25  7.15  0.00  3.50  3.42  0.00  1.75  1.71  5.25  10.00  8.87  5.25  13.50  12.29  
Utah 8.08  8.25  8.10  0.00  3.50  3.50  0.00  1.75  1.75  8.08  10.00  9.85  8.08  13.50  13.35  
Vermont 8.13  8.25  8.16  0.00  3.50  3.50  0.00  1.75  1.75  8.13  10.00  9.91  8.13  13.50  13.41  
Virgin Islands 8.25  8.25  8.25  3.50  3.50  3.50  1.75  1.75  1.75  10.00  10.00  10.00  13.50  13.50  13.50  
Virginia 6.62  8.25  7.47  1.76  3.50  3.26  0.88  1.75  1.63  7.50  10.00  9.10  9.26  13.50  12.35  
Washington 6.97  8.25  7.82  0.00  3.50  1.92  0.00  1.75  0.96  6.97  10.00  8.78  6.97  13.50  10.70  
West Virginia 8.25  8.25  8.25  0.00  3.50  2.75  0.00  1.75  1.37  8.25  10.00  9.62  8.25  13.50  12.37  
Wisconsin 6.81  8.25  7.25  0.00  3.50  1.23  0.00  1.75  0.61  6.81  10.00  7.86  6.81  13.50  9.08  
Wyoming 8.16  8.25  8.20  3.32  3.50  3.40  1.66  1.75  1.70  9.82  10.00  9.90  13.14  13.50  13.30  
  Nationwide $1.75  $8.25  $7.23  $0.00  $3.50  $2.59  $0.00  $1.75  $1.29  $1.75  $10.00  $8.52  $1.75  $13.50  $11.10  
Notes:  This table reflects only non-tribal support.  All averages are weighted averages.
1
 Basic federal support includes both Tier 1 and Tier 2 support.  See text for definitions.
2
 Includes only state support that is matched by federal support.
Source:  Universal Service Administrative Company.
Table 19.7
Lifeline Monthly Support by State or Jurisdiction
(As of March 31, 2005)
Basic Federal
Support 
1
Total Federal
and State Support
2
Total Federal Additional
State Support 
2
Support
Federal  Match
 19 - 11
Table 19.8
Lifeline Subscribers and Link-Up Beneficiaries
 
Year Non-Tribal Tribal Total Non-Tribal Tribal Total
1987 1,063,443    7,953     
1988 1,828,862    105,758     
1989 2,115,288    206,656     
1990 2,466,513    513,155     
1991 2,984,290    639,645     
1992 3,440,216    743,285     
1993 3,971,937    737,362     
1994 4,423,119    837,964     
1995 4,914,056    823,679     
1996 5,233,425    808,354     
1997 
1
5,110,537                NA  
1998 5,380,726    2,195,417     
1999 5,640,094    1,834,766     
2000 5,871,619   18,692     5,890,311    1,689,867    2,038     1,691,905     
2001 6,144,089   56,820     6,200,909    1,670,260    23,355     1,693,615     
2002 6,518,367   112,191     6,630,558    1,656,768    29,901     1,686,669     
2003 6,490,614   147,203     6,637,817    1,653,301    22,289     1,675,590     
2004 6,792,695   176,390     6,969,085    1,669,888    41,034     1,710,922     
2005 
2
6,883,048   236,458     7,119,506    1,653,101    86,857     1,739,958     
NA - Not Available.
1   
Subscriber data were not collected in 1997.  Lifeline subscribership data were estimated by USAC.
Source:  Universal Service Administrative Company.
Lifeline Link-Up 
2
  The reported subscribers and beneficiaries represent USAC data for the time period January 2005 through 
December 2005, which include true-ups for Lifeline subscribers and Link-Up beneficiaries through March 2006. 
  19 - 12
 Non-Tribal Tribal Total Non-Tribal Tribal Total
Alabama 26,948      7       26,955       1,670      0       1,670       
Alaska 1,891      23,906       25,797       0      17,725       17,725       
American Samoa 594      0       594       37      0       37       
Arizona 28,810      45,006       73,816       3,748      7,871       11,619       
Arkansas 23,629      1       23,630       6,306      0       6,306       
California 3,103,682      435       3,104,117       956,578      9       956,587       
Colorado 29,291      8       29,299       710      0       710       
Connecticut 53,459      0       53,459       4,709      0       4,709       
Delaware 2,587      0       2,587       478      0       478       
District of Columbia 10,675      0       10,675       435      0       435       
Florida 151,332      1       151,333       13,409      0       13,409       
Georgia 69,005      0       69,005       8,671      0       8,671       
Guam 3,513      0       3,513       945      0       945       
Hawaii 6,882      0       6,882       548      0       548       
Idaho 31,756      290       32,046       1,511      10       1,521       
Illinois 107,187      0       107,187       49,996      0       49,996       
Indiana 56,461      0       56,461       25,100      0       25,100       
Iowa 61,184      3       61,187       20,635      0       20,635       
Kansas 27,542      25       27,567       3,859      0       3,859       
Kentucky 64,751      0       64,751       11,101      0       11,101       
Louisiana 22,193      2       22,195       2,594      0       2,594       
Maine 70,555      402       70,957       16,383      27       16,410       
Maryland 4,561      0       4,561       851      0       851       
Massachusetts 119,899      2       119,901       1,289      0       1,289       
Michigan 109,711      263       109,974       21,309      34       21,343       
Minnesota 59,965      921       60,886       8,095      185       8,280       
Mississippi 28,488      2       28,490       4,132      4       4,136       
Missouri 49,498      10       49,508       9,931      0       9,931       
Montana 11,455      4,045       15,500       836      1,299       2,135       
Nebraska 21,460      281       21,741       2,360      27       2,387       
Nevada 43,146      165       43,311       6,925      1       6,926       
New Hampshire 6,449      0       6,449       147      0       147       
New Jersey 128,151      0       128,151       2,777      0       2,777       
New Mexico 49,748      12,322       62,070       4,569      5,934       10,503       
New York 427,148      20       427,168       34,246      0       34,246       
North Carolina 124,161      5       124,166       5,571      0       5,571       
North Dakota 15,650      6,085       21,735       3,150      1,753       4,903       
Northern Mariana Islands 760      0       760       1,477      0       1,477       
Ohio 313,460      0       313,460       54,012      0       54,012       
Oklahoma 13,413      117,435       130,848       16,605      39,138       55,743       
Oregon 54,328      392       54,720       21,998      423       22,421       
Pennsylvania 160,408      0       160,408       32,233      0       32,233       
Puerto Rico 108,022      0       108,022       15,320      0       15,320       
Rhode Island 38,836      0       38,836       206      0       206       
South Carolina 23,745      9       23,754       2,968      0       2,968       
South Dakota 12,631      15,354       27,985       6,163      7,520       13,683       
Tennessee 53,284      0       53,284       4,332      0       4,332       
Texas 652,013      593       652,606       123,746      0       123,746       
Utah 22,970      295       23,265       2,175      95       2,270       
Vermont 24,283      0       24,283       1,292      0       1,292       
Virgin Islands 368      0       368       34      0       34       
Virginia 20,150      0       20,150       2,311      0       2,311       
Washington 132,461      7,495       139,956       94,273      4,322       98,595       
West Virginia 5,781      2       5,783       985      0       985       
Wisconsin 85,146      218       85,364       30,303      198       30,501       
Wyoming 7,572      458       8,030       7,057      282       7,339       
  Industry Totals 6,883,048      236,458      7,119,506      1,653,101      86,857      1,739,958      
Source:  Universal Service Administrative Company.
The reported subscribers and beneficiaries represent USAC data for the time period January 2005 through December 2005, which include true-ups for 
Lifeline subscribers and Link-Up beneficiaries through March 2006. 
Table 19.9
Lifeline Subscribers and Link-Up Beneficiaries by State:  2005
Lifeline Link-Up
 19 - 13
Table 19.10
Low-Income Support Payments
 Total
Year Non-Tribal Tribal
  TLS 
1
PICCs 
2
Total Non-Tribal Tribal Total
1988 $31,952  $0    $0    $0    $31,952  $1,991  $0     $1,991   $33,943  
1989 50,878  0    0    0    50,878  4,480  0     4,480   55,358  
1990 62,464  0    0    0    62,464  11,351  0     11,351   73,815  
1991 79,104  0    0    0    79,104  13,705  0     13,705   92,809  
1992 93,766  0    0    0    93,766  15,342  0     15,342   109,108  
1993 109,083  0    0    0    109,083  17,019  0     17,019   126,102  
1994 123,284  0    0    0    123,284  18,573  0     18,573   141,857  
1995 137,277  0    0    0    137,277  18,392  0     18,392   155,670  
1996 148,186  0    0    0    148,186  18,247  0     18,247   166,433  
1997 147,579  0    0    0    147,579  13,711  0     13,711   161,290  
1998 416,504  0    2,700    2,802    422,006  42,463  0     42,463   464,469  
1999 438,576  0    3,136    4,450    446,162  33,991  0     33,991   480,153  
2000 482,045  508    2,854    3,168    488,575  30,371  62     30,433   519,007  
2001 548,421  6,960    3,195    0    558,576  30,314  480     30,794   589,370  
2002 623,352  17,955    3,780    0    645,087  30,323  707     31,031   676,117  
2003 657,099  24,167    4,428    0    685,694  30,171  526     30,697   716,391  
2004 695,217  30,503    5,114    0    730,835  30,904  1,239     32,142   762,977  
2005 717,720  45,642    6,220    0    769,583  31,741  2,558     34,299   803,882  
1 
TLS is an abbreviation for toll limitation service.
2
 Carriers no longer charge residential Presubscribed Interexchange Access Charges (PICCs) as of July 1, 2000.
Source:  Universal Service Administrative Company.
(In Thousands of Dollars)
Lifeline Link-Up 
Lifeline and Link-Up Support Payments
Chart 19.5
Note:  Support payments reported in this table include all low income support disbursed based on commitments for a given year, including all true-
ups through March 2006.  Support payments reported for 2005 in Tables 19.2, 19.3 and 19.12 report disbursements for 2005, regardless of the year
of the commitments.  
$0.0
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
$800.0
$900.0
Millio
n
s
 o
f
 Do
lla
rs
Lifeline Payments $32 $51 $62 $79 $94 $109 $123 $137 $148 $148 $422 $446 $489 $559 $645 $686 $731 $770
Link-Up Payments $2 $4 $11 $14 $15 $17 $19 $18 $18 $14 $42 $34 $30 $31 $31 $31 $32 $34
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
  19 - 14
(In Thousands of Dollars)
 Lifeline Link-Up Total
Non-Tribal Tribal TLS Total Non-Tribal Tribal Total
  Alabama $3,192  $0  $6  $3,198  $30  $0  $30  $3,229  
  Alaska 3,283  3,715  43  7,041  0  332  332  7,373  
  American Samoa 59  0  0  59  1  0  1  60  
  Arizona 8,502  11,753  67  20,322  87  156  243  20,565  
  Arkansas 2,212  0  4  2,216  129  0  129  2,345  
  California 284,118  28  3,079  287,225  17,295  0  17,295  304,520  
  Colorado 3,500  1  9  3,510  12  0  12  3,523  
  Connecticut 5,170  0  4  5,174  141  0  141  5,315  
  Delaware 254  0  0  254  7  0  7  261  
  District of Columbia 941  0  0  941  5  0  5  945  
  Florida 17,466  0  30  17,496  316  0  316  17,812  
  Georgia 8,167  0  28  8,195  211  0  211  8,405  
  Guam 422  0  0  422  17  0  17  438  
  Hawaii 680  0  1  681  12  0  12  693  
  Idaho 3,817  59  16  3,892  23  0  23  3,916  
  Illinois 8,563  0  1  8,564  1,080  0  1,080  9,644  
  Indiana 5,103  0  2  5,105  602  0  602  5,707  
  Iowa 5,366  1  252  5,619  462  0  462  6,081  
  Kansas 3,006  2  46  3,054  68  0  68  3,122  
  Kentucky 7,197  0  97  7,295  238  0  238  7,532  
  Louisiana 2,054  0  3  2,058  52  0  52  2,110  
  Maine 8,414  33  14  8,461  358  1  359  8,820  
  Maryland 502  0  0  502  20  0  20  522  
  Massachusetts 14,226  0  1  14,227  9  0  9  14,236  
  Michigan 10,925  48  8  10,982  437  0  437  11,419  
  Minnesota 5,671  108  71  5,850  152  4  156  6,006  
  Mississippi 3,309  1  4  3,314  93  0  93  3,407  
  Missouri 5,099  0  132  5,231  178  0  178  5,409  
  Montana 1,795  784  17  2,596  11  21  32  2,628  
  Nebraska 2,321  50  7  2,378  36  1  37  2,414  
  Nevada 3,964  12  15  3,990  117  0  117  4,107  
  New Hampshire 631  0  0  631  3  0  3  634  
  New Jersey 14,956  0  3  14,959  59  0  59  15,018  
  New Mexico 7,393  3,018  36  10,447  78  115  193  10,640  
  New York 49,244  2  16  49,262  881  0  881  50,143  
  North Carolina 14,375  1  28  14,403  118  0  118  14,522  
  North Dakota 2,352  1,300  17  3,669  57  91  148  3,817  
  Northern Mariana Islands 75  0  0  75  9  0  9  84  
  Ohio 33,868  0  38  33,906  930  0  930  34,837  
  Oklahoma 11,964  18,550  215  30,728  363  1,177  1,540  32,268  
  Oregon 6,563  72  346  6,981  336  40  376  7,357  
  Pennsylvania 15,762  0  0  15,762  947  0  947  16,709  
  Puerto Rico 12,875  0  0  12,875  372  0  372  13,247  
  Rhode Island 4,571  0  2  4,573  3  0  3  4,576  
  South Carolina 2,795  1  16  2,812  53  0  53  2,865  
  South Dakota 2,658  3,816  61  6,535  121  470  591  7,125  
  Tennessee 6,064  0  9  6,073  77  0  77  6,150  
  Texas 69,872  14  149  70,035  2,365  0  2,365  72,400  
  Utah 2,754  35  25  2,814  30  2  32  2,846  
  Vermont 2,860  0  4  2,864  18  0  18  2,882  
  Virgin Islands 50  0  0  50  1  0  1  51  
  Virginia 2,219  0  2  2,221  55  0  55  2,276  
  Washington 14,852  2,094  1,138  18,083  1,727  118  1,845  19,929  
  West Virginia 667  0  1  668  18  0  18  687  
  Wisconsin 8,048  34  3  8,086  762  3  765  8,851  
  Wyoming 955  109  152  1,216  160  25  185  1,401  
     Industry Totals $717,720  $45,642  $6,220  $769,583  $31,741  $2,558  $34,299  $803,882  
Source:  Universal Service Administrative Company.  
Table 19.11
Low-Income Support Payments by State:  2005
Note:  Support payments reported in this table include all low income support disbursed for January through December 2005, including true-ups through 
March 2006.  It does not include true-ups for years prior to 2005.  Support payments reported in Tables 19.2 and 19.3 include true-ups for prior years.
 19 - 15
Table 19.12
ILECs CETCs Total
1996 $166 $0 $166 0.0 %
1997 161 0 161 0.0
1998 464 0 464 0.0  
1999 480 0 480 0.0
2000 519 0 519 0.0
2001 587 2 589 0.3
2002 664 12 676 1.8
2003 692 25 716 3.5
2004 723 40 763 5.3
2005 737 71 809 8.8
Low-Income Support Received by ILECs and CETCs
(In Millions of Dollars)
Notes:  ILECs is an abbreviation for incumbent local exchange carriers.  
CETCs is an abbreviation for competitive eligible telecommunications 
carriers.  CETCs include both wireless and wireline carriers.
Percent of Low-Income Support Received by CETCs
Chart 19.6
Percent CETCs
Source:  Universal Service Administrative Company.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
1998 1999 2000 2001 2002 2003 2004 2005
 19 - 16
Table 19.13
Schools and Libraries Funding by Type of Service
(Funds Committed and Disbursed Through December 31, 2005) 
1
Internal Connections Internet Access Telecommunications Totals
Funds Funds Funds Funds Funds Funds Funds Funds
Funding Period Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed
Jan-98 to Jun-99 $886,134,476 $797,866,786 $134,170,437 $94,912,607 $675,960,835 $507,781,656 $1,696,265,747 $1,400,561,050 
Jul-99 to Jun-00 1,365,903,855 1,109,011,630 149,548,801 95,838,059 635,087,482 454,006,675 2,150,540,138 1,658,856,364 
Jul-00 to Jun-01 1,136,768,097 1,035,011,680 219,141,763 135,103,250 719,009,102 480,394,213 2,074,918,962 1,650,509,143 
Jul-01 to Jun-02 1,205,943,128 1,002,430,636 226,407,211 149,994,699 769,210,484 521,804,531 2,201,560,822 1,674,229,866 
Jul-02 to Jun-03 1,116,620,674 766,598,469 248,606,163 172,014,250 852,828,167 592,804,382 2,218,055,003 1,531,417,101 
Jul-03 to Jun-04 1,517,488,781 1,009,071,904 267,056,541 194,591,595 885,594,684 634,926,942 2,670,140,006 1,838,590,441 
Jul-04 to Jun-05 1,112,568,680 463,759,713 236,206,267 179,215,004 949,566,223 623,957,927 2,298,341,171 1,266,932,644 
Jul-05 to Jun-06 500,183,649 45,123,606 246,326,299 85,796,939 886,541,911 144,084,604 1,633,051,858 275,005,149 
1
 Because of the appeals process, funding commitments and disbursements can be made after the program years' end.
Source:  USAC data.  Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC.
Total Schools and Libraries Funds Committed and Disbursed
Chart 19.7
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
A
m
ounts in B
illions
Funds Committed $1.7 $2.2 $2.1 $2.2 $2.2 $2.7 $2.3
Funds Disbursed $1.4 $1.7 $1.7 $1.7 $1.5 $1.8 $1.3
Jan-98 to Jun-99 Jul-99 to Jun-00 Jul-00 to Jun-01 Jul-01 to Jun-02 Jul-02 to Jun-03 Jul-03 to Jun-04 Jul-04 to Jun-05
 19 - 17
Internal Connections Internet Access Telecom. and Dedicated Totals
Funds Funds Funds Funds Funds Funds Funds Funds
State/Territory Committed Disbursed Committed Disbursed Committed Disbursed Committed Disbursed
Alabama $6,703,236    $4,327,378    $8,050,750    $7,611,414    $11,218,315    $8,891,527    $25,972,301    $20,830,318    
Alaska 1,376,586    614,712    7,849,887    5,864,928    9,053,008    7,784,544    18,279,481    14,264,184    
American Samoa 2,117,928    2,055,182    0    0    76,647    46,406    2,194,574    2,101,587    
Arizona 34,643,093    15,156,542    7,966,946    6,086,312    14,622,260    9,020,286    57,232,298    30,263,140    
Arkansas 2,329,767    1,090,735    537,082    155,817    15,273,926    10,969,730    18,140,776    12,216,282    
California 136,654,341    63,224,587    16,320,504    10,058,281    113,120,900    54,782,953    266,095,745    128,065,821    
Colorado 13,267,858    9,842,505    1,953,952    1,143,718    8,414,713    6,081,235    23,636,523    17,067,458    
Connecticut 14,392,969    4,103,482    2,877,086    2,295,318    15,248,864    9,628,682    32,518,920    16,027,482    
Delaware 0    0    46,832    29,024    414,880    346,546    461,712    375,570    
District of Columbia 402,450    291,898    280,916    44,456    9,682,776    2,016,284    10,366,143    2,352,637    
Florida 22,996,966    4,200,522    10,801,438    9,193,900    43,462,892    31,550,007    77,261,296    44,944,429    
Georgia 31,810,232    14,988,827    6,552,086    4,942,533    29,596,453    23,220,850    67,958,772    43,152,210    
Guam 3,965,495    2,723,337    409,948    408,408    1,351,205    672,088    5,726,648    3,803,833    
Hawaii 181,246    88,020    496,305    226,058    2,514,788    1,225,169    3,192,339    1,539,247    
Idaho 379,188    230,323    990,216    691,674    2,319,034    1,563,413    3,688,438    2,485,410    
Illinois 68,588,208    9,263,600    2,405,428    1,534,229    32,895,356    22,246,076    103,888,992    33,043,905    
Indiana 3,396,200    780,383    1,811,746    1,329,926    12,665,415    9,683,065    17,873,360    11,793,373    
Iowa 203,114    102,148    1,802,878    1,377,289    12,153,233    8,391,018    14,159,225    9,870,455    
Kansas 2,342,362    1,944,579    3,723,838    2,463,411    9,306,323    6,953,012    15,372,524    11,361,002    
Kentucky 13,303,737    7,722,459    2,838,511    1,557,203    16,818,852    10,324,820    32,961,100    19,604,482    
Louisiana 22,564,581    10,681,737    5,501,026    4,764,549    17,860,916    12,823,332    45,926,523    28,269,618    
Maine 204,375    191,437    1,248,831    1,054,196    5,754,741    4,159,210    7,207,946    5,404,842    
Maryland 5,438,207    1,702,270    1,426,520    892,082    17,411,748    6,879,911    24,276,474    9,474,263    
Massachusetts 7,311,073    5,144,994    4,545,195    3,426,790    13,735,514    9,585,196    25,591,783    18,156,981    
Michigan 15,354,270    7,279,737    7,544,456    6,043,905    27,241,416    13,872,306    50,140,142    27,195,948    
Minnesota 4,145,814    3,527,993    4,555,356    3,117,550    13,620,675    10,380,611    22,321,845    17,026,155    
Mississippi 19,959,356    12,398,310    1,862,769    1,494,272    21,507,301    14,432,866    43,329,427    28,325,449    
Missouri 15,474,788    12,130,271    2,981,003    2,601,496    18,575,183    14,306,701    37,030,974    29,038,468    
Montana 1,274,093    1,011,810    875,930    686,340    2,417,230    1,823,851    4,567,253    3,522,001    
Nebraska 246,211    40,320    1,089,655    836,416    6,383,817    5,588,154    7,719,683    6,464,890    
Nevada 925,444    36,000    250,404    209,854    2,861,988    2,449,279    4,037,835    2,695,134    
New Hampshire 311,998    155,189    504,184    350,128    1,471,124    1,009,111    2,287,306    1,514,428    
New Jersey 17,236,739    7,962,188    4,440,072    3,081,339    25,181,982    18,415,891    46,858,792    29,459,418    
New Mexico 23,176,689    10,432,537    3,194,948    1,639,337    9,805,975    4,394,096    36,177,612    16,465,970    
New York 240,378,886    75,230,635    12,328,626    7,911,619    101,883,373    59,660,962    354,590,886    142,803,216    
North Carolina 12,205,755    6,737,352    11,014,222    9,478,478    19,951,059    16,218,583    43,171,035    32,434,413    
North Dakota 724,854    512,968    222,832    218,397    3,258,396    2,918,364    4,206,082    3,649,728    
Northern Mariana Islands 898,708    817,341    374,579    352,899    715,521    195,565    1,988,807    1,365,806    
Ohio 15,226,307    6,540,042    15,342,411    13,700,841    33,925,204    28,159,618    64,493,922    48,400,500    
Oklahoma 30,059,807    22,269,461    8,184,828    6,130,772    14,095,425    10,001,269    52,340,060    38,401,502    
Oregon 1,520,659    1,142,341    3,244,905    2,280,571    10,327,079    7,364,304    15,092,642    10,787,217    
Pennsylvania 33,920,266    20,109,504    10,196,842    8,437,429    33,973,461    25,978,115    78,090,569    54,525,048    
Puerto Rico 470,690    58,464    1,310,182    543,810    668,239    167,475    2,449,110    769,749    
Rhode Island 2,203,632    1,483,171    596,321    464,795    3,353,968    2,834,640    6,153,921    4,782,606    
South Carolina 18,672,092    8,695,345    967,307    604,120    20,513,829    15,932,519    40,153,227    25,231,984    
South Dakota 2,207,215    1,211,018    361,280    223,852    3,802,213    3,139,492    6,370,709    4,574,362    
Tennessee 6,962,884    2,827,443    24,630,644    20,392,705    13,070,805    11,303,609    44,664,332    34,523,757    
Texas 238,444,045    91,062,881    15,607,402    11,071,605    69,536,347    47,720,301    323,587,795    149,854,786    
Utah 1,203,517    765,176    1,566,319    856,537    13,871,574    4,319,685    16,641,411    5,941,398    
Vermont 5,767    3,560    502,161    357,731    1,180,650    820,556    1,688,579    1,181,846    
Virgin Islands 3,964,972    1,476,812    1,940,323    1,371,822    659,077    591,952    6,564,372    3,440,586    
Virginia 2,382,440    1,695,581    4,858,570    3,651,840    19,894,597    16,903,712    27,135,608    22,251,133    
Washington 5,011,747    3,582,279    1,628,808    1,088,435    13,363,145    7,845,019    20,003,700    12,515,733    
West Virginia 1,390,755    487,356    679,973    480,521    6,876,280    5,341,565    8,947,009    6,309,442    
Wisconsin 1,924,927    1,501,583    2,866,429    2,345,374    19,861,462    10,564,808    24,652,817    14,411,765    
Wyoming 110,141    103,390    44,607    38,697    745,068    457,588    899,816    599,675    
  Totals $1,112,568,680    $463,759,713    $236,206,267    $179,215,004    $949,566,223    $623,957,927    $2,298,341,171    $1,266,932,644    
1
 Because of the appeals process, funding commitments have been made after the program year ended on June 30, 2005.
Source:  USAC data.  Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC.
Table 19.14
Schools and Libraries Funding by State and by Type of Service
(Funding Period:  July 1, 2004 Through June 30, 2005
Activity Through December 31, 2005) 
1
 19 - 18
Table 19.15
Rural Health Care Fund Disbursements by Service Speed
(Activity Through December 31, 2005) 
1
56 kbps to   200 kbps to 1.5 Mbps
Funding Period 199 kbps   1.49 Mbps and Faster Total
Jan-98 to Jun-99 $202,778    $880,375    $2,292,252    $0 $3,375,405    
Jul-99 to Jun-00 452,992    1,073,816    2,719,619    58,132 4,304,559    
Jul-00 to Jun-01 613,595    3,015,004    6,685,573    0 10,314,172    
Jul-01 to Jun-02 319,539    8,110,537    10,125,267    0 18,555,343    
Jul-02 to Jun-03 423,756    10,639,476    10,405,314    0 21,468,545    
Jul-03 to Jun-04 469,172    10,913,686    13,076,176    7,559 24,466,593    
Jul-04 to Jun-05 518,231    6,657,441    13,555,208    459,502 21,190,382    
Jul-05 to Jun-06 862    1,905,766    2,048,694    48,869 4,004,191    
1
 Because of the appeals process, funding commitments and disbursements can be made after the program year's end.  
Voice Grade 
2
Other Service
Unknown 
2
Broadband 
2
or Speed
Rural Health Care Fund Disbursements by Service Speed
Source:  USAC data.  Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, 
FCC.
2
 USAC data contain a short description of the services the health care providers receive.  These service descriptions are rolled up into 
the categories above.  Some inferences were made when service speed was not clearly indicated.  For example, frame relay was 
assumed to be broadband in the range of 200 kbps to 1.5 Mbps, even though some frame relay service speeds may be faster.
Chart 19.8
$0
$5
$10
$15
$20
$25
Amounts
 in Millions
Broadband $3.2 $3.8 $9.7 $18.2 $21.0 $24.0 $20.2
Voice Grade and Other $0.2 $0.5 $0.6 $0.3 $0.4 $0.5 $1.0
Jan-98 to Jun-99 Jul-99 to Jun-00 Jul-00 to Jun-01 Jul-01 to Jun-02 Jul-02 to Jun-03 Jul-03 to Jun-04 Jul-04 to Jun-05
 19 - 19
Table 19.16
Rural Health Care Fund Disbursements by Service Speed and by State
(Funding Period:  July 1, 2004 Through June 30, 2005
Activity Through December 31, 2005) 
1
State Total
Alabama $0           $724         $15,883       $0       $16,608      
Alaska 1,325           5,172,752         6,326,628       43,993       11,544,698      
American Samoa 0           0         0       0       0      
Arizona 0           73,397         341,833       8,249       423,479      
Arkansas 3,160           20,166         55,185       3,817       82,327      
California 170,734           10,467         154,687       4,495       340,384      
Colorado 16,168           0         105,280       0       121,448      
Connecticut 0           0         0       0       0      
Delaware 0           0         0       0       0      
District of Columbia 0           0         0       0       0      
Florida 0           4,380         150,830       0       155,210      
Georgia 0           30,150         125,497       3,310       158,956      
Guam 0           0         228,233       6,586       234,819      
Hawaii 0           24,654         43,221       4,017       71,892      
Idaho 0           10,013         269,109       31,931       311,054      
Illinois 0           0         123,495       0       123,495      
Indiana 22,266           19,410         125,639       5,900       173,215      
Iowa 0           0         0       0       0      
Kansas 11,461           19,685         189,453       5,251       225,850      
Kentucky 0           244,245         484,179       98,136       826,560      
Louisiana 0           0         0       0       0      
Maine 21,565           6,189         2,802       894       31,450      
Maryland 0           0         0       0       0      
Massachusetts 0           0         0       0       0      
Michigan 5,741           21,479         478,522       20,241       525,983      
Minnesota 2,952           108,985         653,028       53,619       818,583      
Mississippi 0           3,980         124,830       0       128,810      
Missouri 0           6,768         70,141       8,419       85,329      
Montana 0           33,072         459,794       1,279       494,145      
Nebraska 0           45,704         673,568       14,671       733,942      
Nevada 0           0         0       0       0      
New Hampshire 0           0         2,483       0       2,483      
New Jersey 0           0         0       0       0      
New Mexico 0           41,346         64,379       2,248       107,972      
New York 1,975           0         4,099       0       6,074      
North Carolina 0           3,707         11,980       0       15,687      
North Dakota 10,715           191,236         275,196       6,264       483,411      
Northern Mariana Islands 0           0         0       0       0      
Ohio 0           0         73,512       19,560       93,072      
Oklahoma 0           58,868         10,640       0       69,508      
Oregon 0           0         18,994       0       18,994      
Pennsylvania 5,237           147         35,746       10,163       51,293      
Puerto Rico 0           0         0       0       0      
Rhode Island 0           0         0       0       0      
South Carolina 0           23,990         14,538       0       38,528      
South Dakota 4,859           27,827         409,676       662       443,024      
Tennessee 0           37,029         14,905       940       52,874      
Texas 0           0         2,532       2,095       4,628      
Utah 0           120,497         283,471       522       404,490      
Vermont 0           6,377         13,492       8,104       27,973      
Virgin Islands 1,987           0         94,481       7,763       104,232      
Virginia 0           118,384         176,968       1,882       297,235      
Washington 0           0         43,113       350       43,463      
West Virginia 4,095           12,457         51,243       677       68,473      
Wisconsin 233,991           119,506         692,711       83,312       1,129,520      
Wyoming 0           39,852         59,214       150       99,216      
  Totals $518,231           $6,657,441         $13,555,208       $459,502       $21,190,382      
1
 Because of the appeals process, funding commitments have been made after the program year ended on June 30, 2005. 
Source:  USAC data.  Rollups performed by the Industry Analysis and Technology Division staff, Wireline Competition Bureau, FCC
Voice Grade 
2
56 kbps to 
2
 USAC data contain a short description of the services the health care providers receive.  These service descriptions are rolled up into the 
categories above.  Some inferences were made when service speed was not clearly indicated.  For example, frame relay was assumed to 
be broadband in the range of 200 kbps to 1.5 Mbps, even though some frame relay service speeds may be faster.
Other Service
Unknown 
2
Broadband 
2
200 kbps to
1.49 Mbps
or Speed
1.5 Mbps
199 kbps and Faster
 19 - 20
Year
1998 First Quarter 3.19    % 0.72 %
Second Quarter 3.14    0.76
Third Quarter 3.14    0.75
Fourth Quarter 3.18    0.75
1999 First Quarter 3.18    0.58
Second Quarter 3.05    0.57
Third Quarter 2.94    0.99
Fourth Quarter 2.887  1.10
2000 First Quarter 5.8770
Second Quarter 5.7101
Third Quarter 5.5360
Fourth Quarter 5.6688
2001 First Quarter 6.6827
Second Quarter 6.8823
Third Quarter 6.8941
Fourth Quarter 6.9187
2002 First Quarter 6.8086
Second Quarter 7.2805
Third Quarter 
3
7.2805
 Fourth Quarter 7.2805
2003 First Quarter 7.2805
Second Quarter 
4
9.1      
Third Quarter 9.5      
Fourth Quarter 9.2      
2004 First Quarter 8.7      
Second Quarter 8.7      
Third Quarter 8.9      
Fourth Quarter 8.9      
2005 First Quarter 10.7      
Second Quarter 11.1      
Third Quarter 10.2      
Fourth Quarter 10.2      
2006 First Quarter 10.2      
Second Quarter 10.9      
Third Quarter 10.5      
Fourth Quarter 9.1      
2007 First Quarter 9.7      
4
 Beginning with the second quarter of 2003, carriers contribute based on projected, collected, end-user interstate and international telecom-
munications revenues.  Previously, carriers contributed based on historical, gross-billed revenues.  The Commission also released an Order and
Second Order on Reconsideration, which, inter alia, directed the Wireline Competition Bureau to announce the universal service contribution
factor as a percentage rounded up to the nearest tenth of one percent.  (See Federal Joint Board on Universal Service, 1998 Biennial Regu-
latory Review - Streamlined Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service, North
American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms, Telecommunications Services for Indivi-
duals with Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the North American Numbering
Plan and North American Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization, Telephone
Number Portability, Truth-in-Billing and Billing Format, Order and Second Order on Reconsideration, CC Docket Nos. 96-45, 98-171, 90-571,
 92-237, 99-200, 95-116, 98-170, FCC 03-58 (rel. March 14, 2003), at para. 22.)
Source:  Quarterly Public Notices on universal service contribution factors in CC Docket 96-45.
3
 In the Schools First Report and Order, the Commission concluded that unused funds from the schools and libraries support mechanism would be 
applied to stabilize the collection requirement for universal service for the third and fourth quarters of 2002, and the first quarter of 2003, as 
necessary.  (See Schools and Libraries Universal Service Support Mechanism, CC Docket No. 2-6, First Report and Order, 17 FCC Rcd 11521 
(2002).
2
 Consistent with the Eighth Report and Order, the Wireline Competition Bureau (formerly Common Carrier Bureau) issued a single universal 
service contribution factor for November and December 1999.  Effective November 1, 1999, this single contribution factor superseded the fourth 
quarter 1999 contribution factors previously announced by the Bureau on September 10, 1999.  See Proposed Fourth Quarter 1999 Universal 
Service Contribution Factors, CC Docket No. 96-45, Public Notice, DA 99-2109 (Com. Car. Bur., rel. Oct. 8, 1999); See Proposed Fourth Quarter 
1999 Universal Service Contribution Factors, CC Docket No. 96-45, Public Notice, DA 99-1857 (Com. Car. Bur., rel. Sept. 10, 1999). 
Universal Service Fund Contribution Factors
Table 19.17
Factors for Intrastate End-User 
Revenues 
1
Quarter
Factors for Interstate End-User 
Revenues
1
 Initially, contributions for the schools and libraries and rural health care support mechanisms were based on interstate, international, and intrastate 
end-user telecommunications revenues, while contributions for high-cost and low-income support mechanisms were based on interstate and 
international end-user telecommunications revenues.  See Federal-State Joint Board on Universal Service , CC Docket No. 96-45, Report and 
Order, 12 FCC Rcd 8776, 9200-05 (1997).  Following a decision by the United States Court of Appeals for the Fifth Circuit, the Commission 
established a single contribution base for all universal service support mechanisms based on interstate and international revenues.  See Federal-
State Joint Board on Universal Service, Access Charge Reform , Sixteenth Order on Reconsideration and Eighth Report and Order in CC Docket 
No. 96-45 and Sixth Report and Order in CC Docket No. 96-262, 15 FCC Rcd 1679, 1685-86, para. 15 (1999) ( Eighth Report and Order).
 19 - 21
Preliminary 1/  
   Q1      
Service Provider Category 1997  1998  1999  2000  2001  2002   2003  2004  2005 2006  
 
Regional Bell Operating Companies (RBOCs)  11.7 % 14.4 % 14.3 % 16.2 % 18.3 % 19.9 % 19.9 % 19.8 % 20.6 % 20.0 %
    Including CLEC Affiliates.
Incumbent Local Exchange Carriers (ILECs) 2.6 1.4 1.5 1.7 2.1 2.8 3.2 3.4 3.7 3.6
   Other Than RBOCs
Competitive Local Exchange Carriers (CLECs)
   Local Resellers and Other Local Carriers
   Other Than RBOCs 0.8 1.3 2.6 2.2 2.7 3.3 3.5 3.8 4.5 4.4
      Total:  Fixed Local Service Providers 15.1 17.1 18.5 20.1 23.1 26.0 26.6 27.0 28.9 28.0
    Payphone Providers 0.0 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.1 0.1
    Wireless Service Providers 3.3 5.1 6.6 9.2 12.0 17.2 24.8 27.8 27.7 32.3
RBOC Toll Service Providers 1.7 1.7 2.0 2.3 3.0 3.4 5.0 6.8 8.7 28.3
Other Toll Service Providers 79.9 76.0 72.9 68.3 61.9 53.3 43.6 38.5 34.7 11.3
81.6 77.7 74.9 70.6 64.9 56.7 48.6 45.2 43.4 39.6
               Total All Filers 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
1 For years 1997 through 2002, the percentages are based on shares of reported subject interstate and international end-user billed revenues.  
The percentages shown for 2003 and 2004 are based on shares of reported subject interstate and international end-user collected revenues.  
Preliminary percentages shown for 2005 are based on FCC Form 499-Q filings.  Preliminary percentages for the first quarter of 2006 are based on 
projected collected revenues for that quarter, from FCC Form 499-Q filings.  Calculations exclude revenues for calls that both originate and 
terminate in foreign points.  Calculations for years 1999 through 2003 include revenues for all filers.  For the purposes of this table, AT&T and MC
filings are classified as RBOC filings as of the first quarter of 2006.
2
Prior to 2004, the FCC Form 499-A asked each filer to identify a single category of communications business that best described its operations.  T
service provider categories listed on FCC Form 499-A correspond to traditional breakdowns of the industry.  Starting in 2004, carriers were allowe
to specify more than one category and were allowed to identify themselves as an All Distance service provider.  Revenues from these filers 
have been categorized using the traditional industry classification that best described each company.
  Source:  Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues   (March 2006).  
Chart 19.9
Share of Universal Service Contributions by Principal Type of Contributor
Table 19.18
Share of Universal Service Contributions 
By Principal Type of Contributor Using Traditional Carrier Categories  
1  2
    Total:  Toll Service Providers
1997
 RBOC Toll
 Service
Providers
1.7%
 Payphone
Providers
0.0%
RBOCs
11.7%
 Wireless
 Service
Providers
3.3%
 Other Toll
 Service
Providers
79.9%
CLECs
0.8%
Other ILECs
2.6%
Preliminary
First Quarter 2006
 RBOC Toll
Service Providers
28.3%
 Payphone
Providers
0.1%
RBOCs
20.0%
 Wireless Service
Providers
32.3%
 Other Toll
Service Providers
11.3%
CLECs
4.4%
Other ILECs
3.6%
19 - 22
 
 20 - A 
20 Appendix A  List of Publications by the Industry Analysis 
and Technology Division 
 
Most recent release dates are shown in parentheses:  
 
High-Speed Services for Internet Access:  Status as of June 30, 2006 (January 2007). 
 
Infrastructure of the Local Operating Companies (October 2000).  Updates can be found 
in Section 10 of the Monitoring Report. 
 
Local Telephone Competition:  Status as of June 30, 2006 (January 2007). 
 
Universal Service Monitoring Report (December 2006). 
 
Numbering Resource Utilization in the United States (January 2007). 
 
Quality of Service Report of the Local Operating Companies (November 2005). 
 
Reference Book of Rates, Price Indices, and Household Expenditures for Telephone 
Service (August 2006). 
 
State-by-State Telephone Revenues and Universal Service Data (April 2001).  Updates 
can be found in Section 1 of the Monitoring Report. 
 
Statistics of Communications Common Carriers, 2004/2005 Edition (November 2005). 
 
Statistics of the Long Distance Telecommunications Industry (May 2003). 
 
Telecommunications Industry Revenues: 2004 (March 2006). 
 
Telecommunications Provider Locator (March 2006). 
 
Telephone Penetration by Income by State (May 2006). 
 
Telephone Subscribership in the United States (January 2007). 
 
Telephone Subscribership on American Indian Reservations and Off-Reservations Trust  
 Lands (May 2003). 
 
Trends in Telephone Service (June 2005). 
 
 21 - A 
21  Appendix B  Sources of Telecommunications Information 
 
 The information in this report and, in many cases, more detailed information can be 
downloaded from the Wireline Competition Bureau Statistical Reports web page at 
www.fcc.gov/wcb/stats. 
 
 Printed copies of various statistical reports are available for reference in the FCC's 
Reference Information Center, Courtyard Level, 445 12th Street, S.W., and from the 
Commission's duplicating contractor, Best Copy and Printing, Inc., 800-378-3160. 
 
 Additional information on regulated carriers, including investments, revenues, expenses, 
and earnings, is contained in the annual Statistics of Communications Common Carriers.  The 
2004/2005 edition can be found on the Wireline Competition Bureau Statistical Reports web 
page at www.fcc.gov/wcb/stats.  
 
Filings with the Securities and Exchange Commission, such as the annual reports on 
Form 10-K, can be downloaded from the Edgar Internet site at www.sec.gov. 
 
 The names, addresses and telephone numbers for companies in the telephone industry are 
published in the Industry Analysis and Technology Division's Telecommunications Provider 
Locator, which can also be downloaded at www.fcc.gov/wcb/stats. The most recent report was 
released on March 2006. 
 
 In April 2001, the Commission began requiring all new and existing telecommunications 
carriers providing interstate telecommunications services to register with the FCC using the FCC 
Form 499-A.  Carriers file the form with the Commissions data collection agent, the Universal 
Service Administrative Company.  Copies of the form can be downloaded from the Internet at 
www.fcc.gov/formpage.html.  Information on registered companies can be found on the Internet 
at http://gullfoss2.fcc.gov/cib/form499/499a.cfm. 
 
 The information on personal consumption expenditures (Table 3.3) comes from the 
Bureau of Economic Analysis, National Economic Accounts, Table 2.4.5U. Personal 
Consumption Expenditures by Type of Product.  See 
www.bea.gov/bea/dn/nipaweb/nipa_underlying/TableView.asp#Mid 
 
 The information on consumer expenditures (Table 3.1), employment (Tables 5.1 and 5.2), 
and price indices (Tables 12.1 - 12.3) comes from the Bureau of Labor Statistics and can be 
found on the Internet at www.bls.gov. 
 
 FCC rules require carriers to provide more detailed traffic data about international 
telephone service than about domestic service.  Because of delays in international settlements, 
such information is typically received by the Commission much later than domestic data and is 
usually published separately.  Tables 6.1 - 6.5 contain summary information on international 
telephone service.  More detailed international data are available from International 
Telecommunications Data and Trends in the International Telecommunications Industry, both of 
 21 - B 
which are published by the International Bureau and are available at www.fcc.gov/wcb/stats.    
 
Tables 18.1and 18.2 on area codes come from the North American Numbering Plan 
Administration (NANPA), which is part of Neustar, Inc.  Additional information on NANPA can 
be found on the Internet at www.nanpa.com. 
 
 The information on wireless telephone service shown in Tables 11.1 and 11.3 was 
prepared from data received from CTIA-The Wireless Association
TM 
1600 16th Street N.W., 
Washington, D.C. 20036, 202-785-0081.  CTIA can be found on the Internet at www.wow-
com.com. 
 
 TNS Telecoms (TNS) has donated databases to the Commission containing information 
on residential phone usage collected from actual consumer telecommunications bills.  TNS has 
granted the Commission permission to use these databases for research purposes and to publish 
the industry level results.  TNS has been monitoring the telecommunications market since 1995 
through both the ReQuest consumer survey and Bill Harvesting in the residential market and 
the BusinessWave business survey in the business market.  Tables 9.5, 9.6, and 14.1 - 14.6 are 
developed from these databases.  For additional information, visit www.tnstelecoms.com or 
contact them at 1-866-811-TNST or by e-mail at contact@tnstelecoms.com.  Their address is 
101 Greenwood Avenue, Suite 502, Jenkintown, PA 19046. 
 
 On September 9, 2004, the Commission released its Fourth Report to the Congress on the 
Availability of Advanced Telecommunications Capability in the United States.  A copy of this 
can be found on the Commissions web site at 
http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-208A1.pdf.  A copy may also be 
obtained through from the Commissions duplicating contractor. 
 
 Copies of NTIAs report A Nation Online:  Entering the Broadband Age can be obtained 
through NTIAs web site at www.ntia.doc.gov or by contacting NTIAs Office of Public Affairs 
at (202) 482-7002. 
 
 Tables 17.1, 17.2, and 17.4 contain information from the ARMIS 43-07 reports for the 
Bell operating companies.  Table 17.3 contains information from the ARMIS 43-05.  Individual 
carrier information can be obtained from the ARMIS web page at www.fcc.gov/wcb/armis. 
 
Chart 17.1 shows the number of patents granted for telecommunications.  Additional 
information on U.S. patents can be found on the Internet at www.uspto.gov. 
 
The National Exchange Carrier Association (NECA) administers access charge revenue 
pooling for about 1,150 local telephone companies.  Their headquarters is located at 80 South 
Jefferson Road, Whippany, NJ 07981-1009, and they can be reached at 800-228-8597.  NECAs 
website can be found on the Internet at www.neca.org. 
 
  
 
 
 21 - C 
The United States Telecom Association (USTA) (1401 H Street N.W., Washington, D.C. 
20005, 202-326-7300) represents most incumbent local telephone companies.  Like many trade 
associations, it collects information from each of its members.  It publishes and sells various 
reports including an annual publication called Phone Facts.  USTAs website can be found on 
the Internet at www.usta.org. 
 
Comptel/ALTS was formed in March 2005 by the merger of Comptel/ASCENT and the 
Association for Local Telecommunications Services (ALTS) and is currently located at the 
former Comptel/ASCENT headquarters at 1900 M Street N.W., Suite 800, Washington, D.C. 
20036, 202-296-6650).  They represent facilities-based competitive telecommunications service 
providers, emerging VOIP providers, integrated communications companies, and their service 
partners, and can be found on the Internet at http://www.comptelascent.org. 
 
 
 22 - A 
22  Appendix C  Contacting the Report Authors 
 
 Trends in Telephone Service was prepared by the Industry Analysis and Technology 
Division, Wireline Competition Bureau, Federal Communications Commission.  Principal 
authors of the report can be contacted at their electronic mail addresses or by calling the Industry 
Analysis and Technology Division at 202-418-0940.  Users of TTY equipment should call 202-
418-0484. 
 
Access Charges ..................................................................................................... Pedro Almoguera 
Advanced Telecommunications..........................................................James Eisner or Ellen Burton 
Consumer Expenditures....................................................................................................Jim Lande 
Earnings ................................................................................................................. Stephen Steckler 
Employment and Labor Productivity........................................................................Kenneth Lynch 
International Telephone Service .......................................................................................Jim Lande 
Lines and Payphones......................................................................Alex Belinfante or James Eisner 
Local Telephone Competition.............................................................James Eisner or Ellen Burton 
Long Distance Telephone Industry...............................................................................James Eisner 
Minutes .................................................................................................................... Alex Belinfante 
Mobile Wireless Service...............................................................................................James Eisner 
Price Indices for Telephone Service ..................................................................... Pedro Almoguera 
Price Levels........................................................................................................... Pedro Almoguera 
Residential Telephone Usage......................................................... Kenneth Lynch or James Eisner 
Revenues...........................................................................................................................Jim Lande 
Subscribership.......................................................................................................... Alex Belinfante 
Technology and Infrastructure........................................Jonathan Kraushaar or Michael Goldstein 
Telephone Numbers and Area Codes ...........................................................................Craig Stroup 
Universal Service - High Cost .......................................................James Eisner or Alex Belinfante 
Universal Service  Lifeline/Link-Up .........................................Suzanne Mendez or Larry Povich 
Universal Service  Rural Health Care.........................................................................Craig Stroup 
Universal Service  Schools and Libraries ...................................................................Craig Stroup 
 
Electronic mail addresses are: 
 
Alex Belinfante .........................................................................................Alex.Belinfante@fcc.gov 
Ellen Burton.................................................................................................. Ellen.Burton@fcc.gov 
James Eisner..................................................................................................James.Eisner@fcc.gov 
Michael Goldstein................................................................................ Michael.Goldstein@fcc.gov 
Jonathan Kraushaar............................................................................ Jonathan.Kraushaar@fcc.gov 
Jim Lande.......................................................................................................... Jim.Lande@fcc.gov 
Kenneth Lynch.......................................................................................... Kenneth.Lynch@fcc.gov 
Suzanne Mendez .....................................................................................Suzanne.Mendez@fcc.gov 
Larry Povich..................................................................................................Larry.Povich@fcc.gov 
Craig Stroup.................................................................................................. Craig.Stroup@fcc.gov 
Customer Response 
 
Publication: Trends in Telephone Service  February 2007 
 
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