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 REFERENCE  BOOK  of  Rates,  Price  Indices,  and  Household 
 Expenditures  for  Telephone  Service 


 Industry  Analysis  &  Technology  Division  Wireline  Competition  Bureau 
 2006 


 This  report  is  available  for  reference  in  the  FCC's  Reference  Information  Center,  Courtyard  Level,  445  12th  Street  S.  W.,  Washington,  D.  C.  20554.  Copies  may  be  purchased  by  calling  Best  Copy  and  Printing,  Inc., 
 Portals  II,  445  12th  Street  S.  W.,  Room  CY-  B402,  Washington,  D.  C.  20554,  telephone  202-  488-  5300,  or  via  e-  mail  at  fcc@  bcpiweb.  com.  The  report  can  also  be  downloaded  from  the  Wireline  Competition  Bureau 
 Statistical  Reports  Internet  site  www.  fcc.  gov/  wcb/  stats. 
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 i 
 Table  of  Contents 
 Table  of  Contents  ........  i 
 Introduction  ..............................  iii 
 Statistical  Findings  ...........................  iv 
 I.  Rates  ..  I-  1  A.  Local  Service  Rates  I-  2 
 1.  Residential  Rates.  I-  2  2.  Rates  for  Low-  Income  Households.  I-  3 
 3.  Business  Rates.  I-  3  B.  Standard  Deviation  Analysis  of  Residential  Rates.........  I-  4 
 C.  Toll  Service  Rates...  I-  4  D.  Additional  Sources  of  Information  on  Local  and  Toll  Rates..  I-  5 


 Table  1.1  Residential  Rates  for  Local  Service  in  Urban  Areas  (As  of  October  15,  2005) 
 Table  1.2  Average  Residential  Rates  for  Local  Service  in  Urban  Areas  (As  of  October  15),  1986-  2005 
 Table  1.3  Residential  Telephone  Rates  in  the  Sample  Cities  (As  of  October  15,  2005) 
 Table  1.4  Monthly  Residential  Telephone  Rate  s  in  the  Sample  Cities  (As  of  October  15),  1993-  2005 
 Table  1.5  Connection  Charges  for  a  Residential  Telephone  Line  in  the  Sample  Cities  (As  of  October  15),  1993-  2005 
 Table  1.6  Comparison  of  Standard  Local  Rates  to  Lifeline  and  Link-  Up  Rates  (As  of  October  15,  2005) 
 Table  1.7  Lifeline  and  Link-  Up  Rates  in  th  e  Sample  Cities  (As  of  October  15,  2005)  Table  1.8  Average  Local  Rates  for  Businesses  with  a  Single  Line  in  Urban  Areas 
 (As  of  October  15,  2005)  Table  1.9  Average  Local  Rates  for  Business  es  with  a  Single  Line  in  Urban  Areas 
 (As  of  October  15),  1989-  2005  Table  1.10  Telephone  Rates  in  the  Sample  Cities  for  a  Business  with  a  Single  Line 
 (As  of  October  15,  2005)  Table  1.11  Monthly  Telephone  Rates  in  the  Sample  Cities  for  a  Business  with  a 
 Single  Line  (As  of  October  15),  1994-  2005  Table  1.12  Connection  Charges  for  a  Single  Business  Line  in  the  Sample  Cities  (As 
 of  October  15),  1994-  2005  Table  1.13  Standard  Deviation  Analysis  of  Residential  Rates  in  the  Sample  Cities  (As 
 of  October  15,  2005)  Table  1.14  Historical  Standard  Deviation  Analysis  of  Residential  Rates  in  the  Sample 
 Cities  (As  of  October  15) 
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 ii 
 Table  1.15  Average  Revenue  per  Minute  for  Interstate  Toll  Service  Calls 
 II.  Expenditures  on  Telephone  Service      II-  1  A.  Residential  Expenditures...  II-  2 
 B.  Business  Expenditures...  II-  2  C.  Additional  Sources  of  Information  on  Expenditures  for  Telephone  Service  II-  2 


 Table  2.1  Average  Annual  Household  Expenditures  by  Household  Location  Table  2.2  Average  Annual  Household  Expenditures  by  Race  and  National  Origin 
 Table  2.3  Average  Annual  Household  Expenditures  by  Household  Income  Table  2.4  Average  Annual  Household  Expenditures  by  Age  of  the  Head  of  the 
 Household  Table  2.5  Average  Annual  Household  Expenditures  by  Size  of  the  Household 
 Table  2.6  Average  Annual  Household  Telecommunications  Expenditures  by  Type  of  Provider 
 Table  2.7  1999  Use  of  Broadcasting  and  Communications  Commodities  by  Industry  Table  2.8  1999  Use  of  Broadcasting  a  nd  Commodities  by  the  Communications 
 Industry 
 III.  Price  Indices  ...  III-  1  A.  Consumer  Price  Indices..  III-  1 
 B.  Producer  Price  Indices  III-  2  C.  Additional  Sources  Information  on  Price  Indices...  III-  2 


 Table  3.1  Changes  in  the  Consumer  Price  Indices  Since  1980  Chart  1  Consumer  Price  Indices  for  Toll  Service  Since  1984 
 Chart  2  Consumer  Price  Indices  for  Toll  Service  Since  1984  (Adjusted  for  Inflation) 
 Table  3.2  Monthly  Consumer  Price  Indices  Table  3.3  Monthly  Producer  Price  Indices 


 Appendix  Urban  Rates  Survey  Residential  and  Single-  Line  Business  Forms 
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 iii 
 Introduction 
 This  2006  issue  of  the  Reference  Book  highlights  the  data  collected  through  the  Industry  Analysis  and  Technology  Divisions  annual  Urban  Rates  Survey.  The  local  rate 
 data  compiled  for  2004  and  2005  reflect  the  inclusion  of  various  taxes  and  surcharges  and,  as  such,  provide  an  estimate  of  the  monthly  charges  residential  and  single-  line 
 business  customers  pay  for  local  telephone  service  provided  by  wireline  telephone  companies.  Local  rates  pertaining  to  multiline-  business  customers  are  no  longer 
 reported.  Like  the  previous  edition  of  the  Reference  Book  (2005),  this  issue  primarily  focuses  on  trends  in  rates,  price  indices,  and  expenditures  for  telephone  service.  As 
 before,  each  chapter  has  a  section  following  the  text  which  informs  the  reader  about  the  various  additional  data  sources  that  contain  further  information  on  these  topics.  This 
 report,  and  previous  reports,  are  also  available  on  the  Wireline  Competition  Bureau  Statistical  Reports  site  at  http://  www.  fcc  .gov/  wcb/  iatd/  stats.  html. 


 This  publication  focuses  on  domestic  telecommunications.  Those  interested  in  international  telecommunications  are  encouraged  to  refer  to  Trends  in  the  International 
 Telecommunications  Industry  ,  which  is  also  available  on  the  Wireline  Competition  Bureau  Statistical  Reports  Internet  site.  1 


 1  As  of  2005  Trends  in  the  Internati  o  nal  Telecommuni  cations  Industry  is  published  by  the  FCCs 
 International  Bureau.  Previously,  the  report  was  published  by  the  Industry  Analysis  and  Technology  Division  of  the  FCC  s  Wireline  Competition  Bureau. 
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 I-  1 
 I.  Rates 
 This  section  focuses  on  rates  for  local  telephone  service  provided  by  wireline  telephone  companies.  The  billing  structure  for  local  telephone  service  can  be  broadly 
 classified  as  either  flat-  rate  or  message/  measured  service.  Customers  subscribing  to  flat-  rate  service  do  not  pay  any  additional  fees  for  calls  within  their  local  calling  area,  regardless  of 
 the  number  of  calls  they  place.  Alternatively,  customers  subscribing  to  message  or  measured  service  pay  an  additional  charge  for  calls  made  within  the  local  calling  area. 
 Message  service  denotes  those  plans  which  bill  customers  by  the  call,  regardless  of  the  length  of  the  call,  while  measured  service  plans  bill  customers  based  upon  the  length  of  the 
 call.  Either  plan  may  also  base  charges  on  the  distance  between  the  calling  and  called  party.  Under  either  message  or  measured  service,  some  amount  of  calling  may  be  included  in  the 
 monthly  basic  charge  and  therefore  may  be  made  without  additional  cost  to  the  customer. 
 In  addition  to  monthly  charges  for  basic  service  and  calling  charges,  customers  pay  a  number  of  other  charges  for  telephone  service.  The  federal  subscriber  line  charge  is  a  line 
 item  that  local  exchange  carriers  are  authorized  to  charge  to  recover  a  portion  of  the  interstate  costs  of  providing  local  phone  service.  Some  states,  such  as  Michigan,  authorize 
 local  carriers  to  charge  a  state  subscriber  line  charge.  In  some  areas  there  are  additional  surcharges  that  the  state  telephone  regulatory  authority  has  authorized  the  carrier  to  charge 
 customers.  These  surcharges  are  generally  associated  with  price-  cap  plans  and  other  regulatory  matters  that  either  limit  the  carriers  local  service  revenue  to  reasonable  levels,  or 
 ensure  that  the  carrier  is  fully  compensated  for  the  cost  of  providing  service.  In  some  states,  most  notably  California,  the  surcharges  change  annually  and  can  either  add  or  subtract  to  the 
 local  rates  of  customers.  Charges  to  fund  local  number  portability,  telecommunications  relay  services,  and  911  services  al  so  appear  on  telephone  bills  in  many  parts  of  the  country. 


 The  local  rate  averages  presented  in  this  report  include  subscriber  line  charges  and  local  number  portability  surcharges  that  are  tariffed  at  the  FCC.  Revenues  from  these 
 charges  are  classified  as  interstate  and  therefore  are  included  in  incumbent  local  exchange  carrier  (ILEC)  universal  serv  ice  contribution  bases.  Prior  to  July  2000,  the  ILECs 
 recovered  the  cost  of  universal  service  contributions  through  per-  minute  interstate  access  charges.  In  July  2000  the  ILECs  began  rec  overing  this  cost  through  pass-  through  charges 
 levied  on  local  exchange  service  customers.  These  pass-  through  charges  also  are  included  in  our  calculations  of  the  base  rate  for  local  service. 


 State,  county,  and  municipal  governments  levy  a  number  of  charges  on  telephone  service.  These  charges  range  from  standard  sales  taxes  to  the  3  percent  federal  excise  tax  on 
 telephone  service,  the  latter  of  which  is  levied  on  all  monthly  service  charges  except  for  connection  charges  or  state  and  municipal  taxes  appearing  as  separate  line  items  on 
 consumers  bills. 
 For  local  service,  posted  rates  provide  an  accurate  picture  of  prices  paid  by  end  users.  However,  the  long  distance  market  f  eatures  a  variety  of  rates  for  identical  or 
 similar  services.  Residential  consumers  may  choose  from  a  wide  variety  of  distinct  discount  plans,  and  many  businesses  enter  into  contracts  with  long  distance  carriers  rather 
 than  purchasing  service  at  the  posted  rates.  Consequently,  basic  rate  s  do  not  necessarily  reflect  the  prices  that  residential  and  business  consumers  actually  pay  for  long  distance 
 services.  In  fact,  the  vast  majority  of  customers  employ  discount  long  distance  calling 
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 I-  2 
 plans  and  do  not  pay  the  basic  schedule  rate.  1  Numerous  ILECs,  competitive  local  exchange  carriers  (CLECs),  and  interexcha  nge  carriers  (IXCs)  are  now  offering  bundled 
 packages  of  local  and  long-  dist  ance  voice  services,  many  at  discounted  rates.  In  addition,  many  wireless  providers  offer  packages  that  in  clude  a  set  number  of  minutes  that  may  be 
 used  for  local  or  long-  distance  calls. 


 A.  Local  Service  Rates 
 The  Industry  Analysis  and  Technology  Division  of  the  Wireline  Competition  Bureau  conducts  an  annual  survey  of  ILEC  local  telephone  service  rates  in  95  urban  areas  of  the 
 United  States.  2  The  cities  surveyed  are  those  that  were  included  in  the  BLS  Consumer  Price  Index  (CPI)  in  1986.  In  constructing  averages  and  medians,  the  sample  weights  derived  by 
 the  BLS  are  used.  In  addition  to  collecting  information  on  monthly  rates  for  service,  the  Urban  Rates  Survey  collects  information  on  charges  paid  to  have  a  phone  connected  to  the 
 network  and  the  price  of  optional  inside  wi  re  maintenance  plans  offered  by  many  local  exchange  carriers. 


 1.  Residential  Rates 
 Table  1.1  presents  the  national  average  rates  for  residential  telephone  service  as  of  October  15,  2005.  The  average  rate  for  flat-  rate  calling  with  touch-  tone  service  in  the  95 
 cities  in  the  sample  was  $24.74.  Measured  or  message  service  was  $16.85,  with  an  average  additional  charge  of  8  cents  for  a  5-  minute,  same-  z  one,  business-  day  call. 


 The  charge  to  have  a  single  residential  line  connected  averaged  $42.71  on  October  15,  2005.  If  telephone  service  is  being  installed  for  the  first  time  at  a  residence,  a  drop  line 
 from  the  nearest  telephone  cable  must  be  run  to  the  building  and  a  connection  block  (network  interface  device)  must  be  installed.  In  twenty-  seven  of  the  sample  cities,  an 
 additional  charge  is  levied  for  this  work.  The  nationwide  average  connection  charge  would  be  $12.45  higher  if  these  charges  were  included. 


 In  some  areas  of  the  country,  only  one  type  of  service  is  offered,  either  flat-  rate  or  measured/  message  service,  and  consumers  do  not  have  a  choice.  In  order  to  calculate  a 
 national  average  based  upon  all  of  the  sample  cities,  we  calculate  a  representative  rate.  The  representative  rate  is  the  flat-  rate  service  charge  in  those  areas  where  this  type  of  service 


 1  Bureau  of  Labor  Statistics  (BLS)  price  indices,  presente  d  in  Section  III,  provide  an  alternative  measure  of 
 long  distance  prices. 
 2  In  2003,  the  form  used  to  conduct  the  Urban  Rates  Survey  was  revised.  Specifically,  a  more  detailed 
 break  out  of  carriers  surcharges  and  taxes  now  appear  as  separate  line  items  on  the  survey  instrument.  The  residential  and  business  survey  instruments  are  included  in  the  attached  Appendix.  In  addition,  all  carriers 


 are  now  req  uired  to  submit  all  line-  item  data  in  terms  of  dollar  amounts,  whereas  before  some  line  items  were  reported  as  percentages.  These  changes  to  the  survey  form  allow  for  more  accurate  estimates  of  the 
 total  monthly  recurring  costs  for  basic  local  residential  and  single-  line  business  service.  Note  that  all  estimates  for  2002  and  beyond  reflect  usage  of  the  revised  survey  form,  estimates  for  years  2001  and  prior 
 reflect  those  obtained  from  the  previous  survey  instrument. 
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 I-  3 
 was  available.  3  Table  1.2  presents  the  national  average  representative  rates  from  1986  to  2005.  During  this  twenty-  year  period,  the  average  representative  rate  for  residential  local 
 service  has  gone  (in  nominal  terms)  from  $1  7.70  to  $24.74,  and  aver  age  connection  charges  have  dropped  from  $49.25  to  $42.71. 


 Table  1.3  provides  the  rates  in  each  of  the  95  cities  in  the  Urban  Rates  Survey  as  of  October  15,  2005.  Tables  1.4  an  d  1.5  provide  historical  rates  for  each  of  the  sample  cities. 
 2.  Rates  for  Low-  Income  Households 
 Tables  1.1  through  1.5  show  the  local  rates  that  are  available  to  all  customers.  Many  states,  in  addition  to  federal  programs,  subsidize  low-  income  households  monthly 
 service  charges  and  connection  fees.  Most  of  these  subsidy  programs  are  part  of  the  FCCs  Lifeline  and  Link-  Up  programs.  The  goa  l  of  the  Lifeline  and  Link-  Up  programs  is 
 to  help  achieve  universal  service  by  enabling  lower-  income  households  to  obtain  telephone  service.  Lifeline  subsidizes  lower-  income  hou  seholds  monthly  service 
 charges,  while  Link-  Up  subsidizes  lower-  i  ncome  households  connection  charges.  In  2005,  qualifying  households  in  all  of  the  95  su  rveyed  cities  received  Lifeline  and  Link-Up 
 benefits.  Table  1.6  shows  the  average  Lifeline  and  Link  -Up  rates  in  those  cities  and  compares  the  subsidized  rates  to  the  standard  rates.  In  2005,  low-  income  households  on 
 the  Lifeline  program  paid  $10.65  per  month  for  local  service,  as  compared  to  $24.74  paid  by  residential  subscribers  not  on  the  Lifeline  program,  for  an  average  saving  of  $14.10 
 per  month.  Low-  income  households  receiving  Link-  Up  assistance  paid  $13.70  for  connection  charges,  as  compared  to  $42.71  paid  by  residential  subscribers  not  receiving 
 Link-  Up  assistance,  for  an  av  erage  Link-  Up  benefit  of  $29.01. 
 Table  1.7  presents  the  Lifeline  and  Link-  Up  ra  tes,  as  well  as  the  standard  rates,  in  the  sample  cities  as  of  October  15,  2005. 


 3.  Business  Rates 
 The  Urban  Rates  Survey  also  collects  information  on  charges  for  single-  line  business  service.  Beginning  with  the  2003  Urban  Rates  Survey,  data  pertaining  to  charges 
 for  multi-  line  business  services  (key  systems  and  private  bran  ch  exchanges)  are  no  longer  collected. 


 Table  1.8  presents  the  average  monthly  rates  for  flat-  rate  and  measured/  message  service  paid  by  a  business  with  a  single  telephone  line,  as  well  as  the  connection  charges  a 
 business  could  expect  to  pay.  Table  1.9  calcula  tes  the  representative  rate,  and  shows  the  trend  in  rates  since  1989.  Rate  s  for  single-  line  businesses  have  followed  trends  similar  to 
 those  seen  with  residential  rates.  Rates  have  stayed  relatively  constant,  moving  with  changes  in  the  federal  subscriber  line  charge,  which  was  capped  at  $6.  50  at  the  time  of  the  latest 
 survey.  Tables  1.10  through  1.12  present  current  and  historical  rates  for  the  sample  cities. 


 3  If  flat-  rate  service  was  unavailable,  the  rate  for  measured/  message  service  was  used,  along  with  the  charges 
 associated  with  placing  100  five-  minute,  same-  zone,  busine  ss-  day  calls.  As  of  October  15,  2001,  flat-  rate  local  residential  service  was  available  in  all  95  cities,  so  th  at  approximating  the  cost  of  measured/  message  service 


 with  100  five-  minute,  same-  zone  bus  iness  day  calls  was  unnecessary. 
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 I-  4 
 B.  Standard  Deviation  Analysis  of  Residential  Rates 
 In  October  2003,  the  Federal  Co  mmunications  Commission  adopted  a  recommendation  by  the  Federal-  State  Joint  Board  on  Universal  Service  establishing  an 
 annual  adjusted  nationwide  urban  rate  benchm  ark  for  purposes  of  de  termining  universal  service  support  for  non-  rural  carriers.  This  benchmark  is  used  by  the  states  and  the 
 Commission  as  a  tool  to  assess  the  reasonable  comparability  of  rates  in  rural  and  high-cost  areas  served  by  non-  rural  carriers  to  nationwide  urban  rates.  4  The  urban  rate 
 benchmark  adopted  by  the  Commission  is  based  upon  the  most  recent  average  urban  residential  rate  as  shown  in  Table  1.1. 


 Because  of  the  great  variation  in  urban  rates  nationwide,  the  Commission  adopted  a  standard  deviation  analysis  which  measur  es  the  dispersion  of  urban  rates  from  the 
 average.  As  such,  an  urban  rate  benchmark  level  of  two  (weighted)  standard  deviations  above  the  (weighted)  average  urban  rate  is  use  d.  Table  1.13  presents  the  results  of  such  a 
 standard  deviation  analysis  for  the  residential  rates  reported  in  the  Urban  Rates  Survey  as  of  October  15,  2005.  The  average,  plus  the  two  standard  deviation  benchmark,  is  $34.58. 
 Table  1.14  shows  the  historical  trend  in  the  standard  deviation  analysis  for  the  years  1993-  2005.  Over  this  period  the  average,  plus  the  two  standard  deviation  benchmark, 
 rose  by  21.7%. 


 C.  Toll  Service  Rates 
 Since  1992,  carriers  have  introduced  an  impressive  array  of  discount  and  promotional  plans,  and  many  long  distance  residential  customers  subscribe  to  these  plans. 
 These  plans  take  a  variety  of  formats.  So  me  plans  offer  a  block  of  calling  time  for  a  fixed  fee  and  reduced  per  minute  rates  for  additional  calling  while  others  give  volume 
 discounts  or  discounts  for  calls  to  certain  phone  numbers  or  area  codes.  One  common  trend  has  been  the  introduction  of  flat-  rate  calling  plans,  which  eliminate  the  mileage 
 bands  associated  with  traditional  basic  schedules.  For  example,  Verizons  Freedom  Essentials  plan  offers  unlimited  long-  distan  ce  and  local  calling  (as  well  as  voice  mail, 
 caller  ID,  and  call  waiting)  for  as  low  as  $39.95  per  month  (not  including  add-  on  charges).  In  addition,  Veriz  on  offers  discounts  on  its  high-  speed  Internet  offerings  to 
 those  subscribers  who  take  the  servic  e  as  part  of  its  Freedom  plans. 
 Section  271  of  the  Telecommunications  Act  of  1996  allowed  the  Regional  Bell  Operating  Companies  (RBOCs)  to  provide  in-  region  interLATA  toll  services  once  the 
 companies  satisfied  a  fourteen-  point  checkli  st  of  conditions  which  demonstrates  that 
 4  See  Federal-  State  Joint  Board  on  Universal  Service  ,  CC.  Dock  et  No.  9  6-  45,  Order  on  Remand,  Further 
 Notice  of  Proposed  Rulemaking,  and  Memorandum  Opinion  and  Order,  18  FCC  Rcd  22559,  22607  -22610,  paras.  80-  82  (2003)  ,  remanded,  Qwest  Co  mmunicatio  ns  Int'l,  Inc.  v.  FCC  ,  398  F.  3d  1222  (10th  Cir.  2005); 


 Federal  -  State  Joint  B  o  ard  on  Universal  Servic  e  ,  CC.  Docket  No.  96-  45,  Noti  ce  of  Proposed  Rulemaking,  20  FCC  Rcd  19731  (  2005). 
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 I-  5 
 their  local  exchange  markets  are  open  to  en  try  by  competitive  local  exchange  carriers.  All  of  the  RBOCs  attained  section  271  approvals  for  their  particular  markets,  and  they  are 
 now  offering  discounted  bundled  packages  of  voice  and  popular  calling  features. 
 Wireless  companies  and  prepaid  calling  cards  offer  more  options  for  long-distance  consumers.  Wireless  companies  now  offer  packages  which  enable  customers  to 
 purchase  a  set  number  of  minutes  of  usage  per  month  at  a  set  rate  (some  with  unlimited  nights  and  weekends)  and  allow  customers  to  us  e  these  minutes  for  local  or  long  distance 
 calling.  Consumers  may  also  purchase  prepaid  calling  cards,  which  contain  an  allotted  number  of  minutes,  with  some  charging  rates  less  than  three  cents  per  minute. 


 Using  revenue  per-  minute  data  for  both  re  sidential  and  business  interstate  toll  traffic,  Table  1.15  illustrates  the  downward  trend  in  long  distance  rates  since  discount 
 long  distance  plans  were  introduced  in  1992.  The  carriers  av  erage  revenue  per  interstate  toll  minute  has  fallen  by  60%  since  1992,  demo  nstrating  that  the  advent  of  discount  long 
 distance  plans  has  produced  lower  rates  for  both  business  and  residential  consumers. 


 D.  Additional  Sources  of  Information  on  Local  and  Toll  Rates 
 1.  Local  Rates 
 A  few  states  have  begun  to  place  exchange  service  tariffs  on  the  Internet.  The  National  Association  of  Regulatory  Utility  Commissioners  (NARUC)  web  site  has  links 
 to  the  web  sites  of  all  of  the  state  telecommunications  regulatory  agencies:  www.  naruc.  org. 


 The  Bureau  of  Labor  Statistics  (BLS),  part  of  the  U.  S.  Department  of  Labor,  publishes  a  number  of  price  indices  that  follow  trends  in  local  telephone  rates.  Part  III  of 
 this  report  reviews  these  indices.  The  most  current  figures  can  be  obtained  at  www.  bls.  gov. 


 2.  Toll  Rates 
 Up  until  August  2001,  all  interstate  interexc  hange  carriers  were  required  to  file  tariffs  setting  forth  their  rates  with  the  FCC.  These  filings  were  available  for  public 
 inspection  at  the  FCCs  Reference  Informa  tion  Center,  Washington,  DC.  As  of  August  1,  2001,  interstate  carriers  were  no  longer  required  to  file  tariffs  setting  forth  their  interstate 
 long  distance  rates.  Since  that  date,  carriers  are  required  to  post  their  rates  on  their  websites. 


 The  BLS  publishes  a  number  of  price  indices  that  follow  trends  in  toll  rates.  Part  III  of  this  report  reviews  these  indices.  The  most  current  figures  can  be  obtained  at 
 stats.  bls.  gov. 
10
 I-  6 
 Finally,  there  are  a  number  of  firms  that  specialize  in  monitoring  major  long  distance  companies  and  their  rates,  and  many  of  these  firms  maintain  Internet  sites. 
 Some  examples  are  Abtolls.  com,  a  free  directory  service  guide  to  long  distance  carriers  and  their  rates;  Telecommunications  Research  and  Action  Center,  which  uses  a  search 
 engine  to  find  the  lowest  long  distance  rates  for  any  selected  calling  pattern;  Phone  Bill  Busters  ,  which  lists  discount  long  distance  plans  and  uses  a  search  engine  to  find  the 
 lowest  long  distance  rates  for  any  selected  calling  pattern;  and  Discount  Long  Distance  Digest  ,  an  Internet  newsletter  which  offers  a  f  ree  multi-  carrier  cost  comparison  service. 
 One  can  access  these  services  on  the  Internet  at  www.  abtolls.  com  ,  www.  trac.  org,  www.  phone-  bill-  busters.  com,  and  www.  thedigest.  com. 
11
 Table  1.1  Residential  Rates  for  Local  Service  in  Urban  Areas 
 (As  of  October  15  ,  2005  ) 


 Average  Rate  Median  Rate  2 
 Monthl  y  Charge  for  Flat-  Rate  Service  1  $14.75  $13.96  Federal  and  State  Subscriber  Line  Charges  5.81  6.28 
 Taxes,  911  and  Other  Char  ges  4.19  3.71  Total  Monthl  y  Char  ge  for  Flat-  Rate  Service  $24.74$  23.95 


 Number  of  Sample  Cities  with  Flat-  Rate  Servic  e  95  -Monthl 


 y  Charge  for  Measured/  Messa  ge  Service  1  $7.81  $8.20  Federal  and  State  Subscriber  Line  Charges  5.71  5.73 
 Taxes,  911  and  Other  Char  ges  3.33  3.16  Total  Monthl  y  Char  ge  for  Measured/  Messa  ge  Service  $16.85$  17.09 


 Cost  of  a  5-  Minute  Daytime  Cal  l  0.08  0.08  Number  of  Sample  Cities  with  Message/  Measured  Servic  e  81  -Basic 


 Connection  Charge  1  $39.30  $39.40  Taxes  3.41  2.81 
 Total  Connection  Char  ge  $42.71$  42.21 
 Additional  Charge  if  Drop  Line  and  Connection  Block  Needed  12.45  0.00 


 Lowest-  Cost  Inside  Wiring  Maintenance  Pla  n  $4.31  $4.75 


 Note:  Detail  ma  y  not  add  to  totals  due  to  rounding. 
 1  Rate  includes  additional  monthly  charges  for  touch-  tone  service. 


 2  Where  a  rate  exists  for  fewer  than  95  cities,  the  median  represents  the  midpoint  rate  for  those  cities 
 which  have  the  service  offering. 
12
 1986 
 1987 
 1988 
 1989 
 1990 
 1991 
 1992 
 1993 
 1994 
 1995 
 1996 
 1997 
 1998 
 1999 
 2000 
 2001 
 2002 
 2003 


 2004 
 1 
 2005 


 2 


 Representative 
 Monthl 
 y 
 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 


 a 
 4 


 a 
 4 


 a 
 4 


 a 
 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 
 Monthl 


 y 
 Char 


 g 
 e 


 $17.70 
 $18.18 
 $18.11 
 $19.05 
 $19.24 
 $19.77 
 $19.72 
 $19.95 
 $19.81 
 $20.01 
 $19.95 
 $19.88 
 $19.76 
 $19.93 
 $20.78 
 $22.62 
 $24.07 


 $24.52 
 $24.52 
 $24.74 


 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 


 a 
 4 


 a 
 4 


 a 
 4 


 a 
 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 


 Char 
 g 
 e 


 $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 
 Neede 


 d 


 a 
 1 


 a 
 1 


 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 


 1 
 Revised.  2  Subject  to 


 revision. 


 3 
 Rates 


 are 
 based 


 upon 
 flat-  rate 


 service 
 where 
 available 


 and 
 measured/  message 


 service 
 with 
 100 
 five-  minute, 


 same-  zone, 
 business-  d 


 ay 
 calls 


 elsewhere. 


 Beginning 
 in 
 2001, 


 all 
 rates 


 reflect 


 flat-  rate 


 service. 


 4 
 Beginning 


 in 
 2002, 


 rate 
 includes 


 additional 


 monthly 
 charges 
 for 
 touch-  tone 


 service. 


 Table 
 1.2 


 Average 
 Residential 


 Rates 
 for 
 Local 


 Service 


 in 
 Urban 


 Areas, 


 1986-  2005 


 (As 
 of 
 October 


 15) 


 Note: 
 Details 


 may 
 not 
 add 


 to 
 totals 


 due 
 to 
 rounding. 
13
 Monthl  y  Tele  phone  Rate  Includin  g  Touch-  Tone  ,Cost  of  a  Connection  Char  ges  Least-  Cost 
 Tele  phone  SLCs,  Surchar  ges,  and  Taxe  s  Five-  Minute  Includin  g  Touch-  Tone,  Inside  Wirin  g  CompanyFlat-  Rate  Measured/  Messa  ge  Same-  Zone  Surchar  ges,  and  Taxes  Maintenance 
 Service  Service 
 Alabama  Huntsville  BellSouth  $26.54  $40.00  $5.50  Alask  a  Anchorage  ACS  23.31  53.50  2.00 


 Arizon  a  Tuscon  Qwes  t  22.74  17.34  0.20  30.61  4.75  Arkansas  Pine  Bluf  f  SBC  27.65  18.91  0.07  45.00  5.99 
 Arkansas  West  Memphis  SBC  34.33  17.81  0.07  45.00  5.99  California  Anaheim  SBC  16.01  10.83  0.05  35.82  2.99 
 California  Bakersfiel  d  SBC  16.01  10.83  0.05  35.82  2.99  California  Fresno  SBC  16.01  10.83  0.05  35.82  2.99 
 California  Long  Beach  Verizo  n  25.38  17.83  0.08  47.66  2.99  California  Los  Angeles  SBC  17.56  11.87  0.05  35.82  2.99 
 California  Oaklan  d  SBC  17.17  11.61  0.05  35.82  2.99  California  Salinas  SBC  16.67  11.18  0.05  35.82  2.99 
 California  San  Diego  SBC  16.01  10.83  0.05  35.82  2.99  California  San  Francisco  SBC  16.01  10.83  0.05  35.82  2.99 
 California  San  Jose  SBC  16.56  11.12  0.05  35.82  2.99  Colorado  Boulder  Qwes  t  26.11  19.76  0.13  38.96  4.75 
 Colorado  Colorado  Springs  Qwes  t  25.07  19.08  0.13  37.78  4.75  Colorado  Denver  Qwes  t  26.09  19.78  0.13  38.76  4.75 
 Connecticut  Ansonia  Verizo  n  22.05  15.42  0.18  65.00  3.95  Connecticut  Norwal  kVerizo  n  20.96  15.42  0.18  65.00  3.95 
 District  of  Columbia  Washington  Verizo  n  21.26  14.70  0.06  25.10  3.45  Florida  Miami  BellSout  h  22.44  48.64  5.95 
 Florida  Tampa  Verizo  n  22.15  16.93  0.10  61.15  3.95  Florida  West  Palm  Beach  BellSouth  22.03  48.67  5.95 
 Georgi  a  Albany  BellSouth  25.45  17.94  0.12  42.50  5.95  Georgi  a  Atlanta  BellSouth  28.90  42.50  5.50 
 Hawaii  Honolulu  Verizo  n  26.13  52.09  3.95  Illinois  Chicago  SBC  21.27  10.08  0.03  39.40  5.99 
 Illinois  Decatur  SBC  28.53  17.33  0.03  39.40  5.99  Illinois  Rock  Islan  d  SBC  28.28  17.08  0.03  39.40  5.99 
 Indiana  Indianapolis  SBC  19.79  14.31  0.21  47.00  5.99  Indiana  Terre  Haute  Verizo  n  25.77  62.35  3.95 
 Iowa  Fort  Dodge  Frontier  20.07  13.06  3.95  Kentuck  y  Louisville  BellSouth  28.87  24.17  0.12  42.00  5.95 
 Louisiana  Baton  Rouge  BellSouth  23.28  16.46  0.25  44.34  5.50  Louisiana  New  Orleans  BellSout  h  22.16  19.90  0.06  42.23  5.95 
 Maine  Portlan  d  Verizo  n  27.72  48.90  3.45  Marylan  d  Baltimore  Verizo  n  28.06  20.03  0.08  51.79  3.45 
 Massachusetts  Bosto  n  Verizo  n  29.76  22.26  0.09  14.59  3.45  Massachusetts  Hyannis  Verizo  n  29.76  22.26  0.09  14.59  3.45 
 Massachusetts  Springfiel  d  Verizo  n  29.76  22.26  0.09  14.59  3.45  Michigan  Detroi  t  SBC  27.52  23.49  0.07  46.90  4.95 
 Michigan  Grand  Rapids  SBC  24.81  21.98  0.07  44.78  4.95  Michigan  Saginaw  SBC  27.87  25.05  0.07  44.78  4.95 
 Minnesota  Detroit  Lake  s  Qwes  t  21.99  16.26  0.10  19.54  4.75  Minnesota  Minneapolis  Qwes  t  22.97  17.40  0.10  19.63  4.75 
 Mississipp  i  Pascagoula  BellSouth  29.91  49.22  5.95  Missouri  Kansas  Cit  y  SBC  21.76  15.86  0.08  41.16  4.95 
 Missouri  Mexico  SBC  20.40  15.13  0.08  41.53  4.95  Missouri  St.  Loui  s  SBC  21.65  15.76  0.08  42.97  4.95 
 Montana  Butte  Qwes  t  26.11  18.45  0.05  26.00  4.75  Nebrask  a  Grand  Islan  d  Qwes  t  28.62  22.85  0.10  36.22  4.75 
 New  Jerse  y  Phillipsburg  Verizo  n  18.21  14.12  0.10  46.16  3.45 


 Table  1.3  Residential  Tele  phone  Rates  in  the  Sam  ple  Cities  1 
 (As  of  October  15,  2005) 


 Da  ytime  Call  Plan  State  City 
14
 Monthl  y  Tele  phone  Rate  Includin  g  Touch-  Tone  ,Cost  of  a  Connection  Char  ges  Least-  Cost 
 Tele  phone  Surchar  ges,  and  Taxes  Five-  Minute  Includin  g  Touch-  Tone,  Inside  Wirin  g  CompanyFlat-  Rate  Measured/  Messa  ge  Same-  Zone  Surchar  ges,  and  Taxes  Maintenance 
 Service  Service 
 New  Mexico  Alamogord  o  Qwes  t  23.95  15.22  0.15  32.27  4.75  New  Yor  kBinghamton  Verizo  n  31.07  18.40  0.09  63.18  2.35 


 New  Yor  kBuffalo  Verizo  n  35.16  18.76  0.09  64.42  2.35  New  Yor  kMassena  Verizo  n  29.16  18.24  0.09  62.63  2.35 
 New  Yor  kNew  York  Cit  y  Verizo  n  32.50  19.56  0.09  64.53  2.35  New  Yor  kOgdensburg  Verizo  n  29.92  18.72  0.09  64.28  2.35 
 New  Yor  kRochester  Frontier  20.07  12.89  0.08  33.32  3.95  North  Carolin  a  Raleigh  BellSouth  26.66  45.74  5.95 
 North  Carolin  a  Rockingha  m  BellSouth  24.96  45.74  5.95  Ohio  Canton  SBC  22.16  16.33  0.08  36.50  5.99 
 Ohio  Cincinnati  Cincinnati  Bel  l  23.53  15.13  0.15  25.70  5.95  Ohio  Clevelan  d  SBC  22.48  16.56  0.08  36.50  5.99 
 Ohio  Columbu  s  SBC  22.22  16.37  0.08  36.50  5.99  Ohio  Toledo  SBC  22.32  16.45  0.08  36.50  5.99 
 Oregon  Corvalli  s  Qwes  t  22.65  15.44  0.15  17.99  4.75  Oregon  Portlan  d  Qwes  t  22.65  15.44  0.15  17.99  4.75 
 Pennsylvania  Allentown  Verizo  n  22.65  18.02  0.07  43.60  3.45  Pennsylvania  Ellwood  City  Verizo  n  23.09  18.46  0.07  43.60  3.45 
 Pennsylvania  Johnstown  Verizo  n  23.57  15.88  0.07  57.44  3.95  Pennsylvania  New  Castle  Verizo  n  21.29  18.46  0.07  43.60  3.45 
 Pennsylvania  Philadelphia  Verizo  n  24.01  17.14  0.07  44.00  3.45  Pennsylvania  Pittsburgh  Verizo  n  24.01  17.14  0.07  44.00  3.45 
 Pennsylvania  Scranton  Verizo  n  22.65  18.02  0.07  43.60  3.45  Rhode  Island  Providence  Verizo  n  30.15  17.95  0.05  37.21  3.45 
 South  Carolina  Beaufort  Sprint  23.92  15.65  0.12  32.30  5.45  Tennessee  Memphis  BellSout  h  23.33  45.44  5.95 
 Tennessee  Nashvill  e  BellSouth  23.33  45.44  5.95  Texas  Brownsville  SBC  19.64  14.22  0.08  41.51  5.99 
 Texas  Corpus  Christi  SBC  21.03  15.61  0.08  41.47  5.99  Texas  Dallas  SBC  23.72  17.19  0.08  41.51  5.99 
 Texas  Fort  Worth  SBC  22.08  15.80  0.08  41.32  5.99  Texas  Houston  SBC  22.50  16.01  0.08  41.13  5.99 
 Texas  San  Antonio  SBC  20.26  14.48  0.08  41.13  5.99  Utah  Loga  n  Qwes  t  21.49  19.46  0.10  27.90  4.75 
 Virginia  Richmon  d  Verizo  n  32.30  24.99  0.19  49.67  1.25  Virginia  Smithfiel  d  Verizo  n  30.42  21.64  0.16  47.20  3.95 
 Washington  Everett  Verizo  n  27.17  20.49  0.02  50.22  3.95  Washington  Seattle  Qwes  t  21.28  17.39  0.07  32.98  4.75 
 West  Virginia  Huntington  Verizo  n  31.26  14.46  0.16  44.10  3.45  Wisconsin  Milwaukee  SBC  33.82  15.02  0.04  49.30 
 Wisconsin  Racine  SBC  33.82  15.02  0.04  49.30 
 1  All  figures  are  preliminary  and  subject  to  revision. 


 Table  1.3 
 Da  ytime  Call  Plan 
 Residential  Tele  phone  Rates  in  the  Sam  ple  Cities  -  Continued  1  (As  of  October  15,  2005) 
 State  City 
15
 State  City  199319941995199619971998199920002001200220032004  2  2005  3 
 Alabama  Huntsville  $24.60  $24.60  $23.06  $22.67  $22.67  $22.67  $22.67  $23.61  $24.85  $25.98  $26.76  $26.49  $26.54  Alask  a  Anchorage  16.20  14.44  14.47  14.47  14.46  14.48  14.48  14.34  15.42  20.95  21.50  21.61  23.31 


 Arizon  a  Tuscon  18.23  18.23  19.18  19.13  19.42  19.42  19.43  20.10  20.78  22.89  23.39  22.66  22.74  Arkansas  Pine  Bluff  22.60  22.22  22.06  22.14  22.22  22.22  22.26  23.22  25.09  26.08  26.11  27.33  27.65 
 Arkansas  West  Memphis  29.00  29.55  28.57  28.65  28.78  20.79  28.75  29.72  31.58  32.72  32.71  34.47  34.33  California  Anaheim  12.18  12.18  15.59  15.69  15.57  15.57  15.42  15.34  15.71  17.48  16.67  16.03  16.01 
 California  Bakersfiel  d  12.18  12.18  15.59  15.69  15.57  15.57  15.42  15.34  15.71  17.48  16.67  16.03  16.01  California  Fresno  12.18  12.18  15.59  15.69  16.67  17.13  15.42  15.34  15.71  17.48  16.67  16.03  16.01 
 California  Long  Beach  17.35  16.78  23.56  23.51  23.51  23.51  23.51  24.48  25.05  24.69  25.70  25.13  25.38  California  Los  Angeles  13.39  13.39  17.09  17.20  15.57  16.01  16.59  16.87  17.28  17.48  16.67  17.59  17.56 
 California  Oakland  13.09  13.09  16.72  16.82  15.57  16.01  16.23  16.49  16.89  17.48  16.67  17.20  17.17  California  Salinas  12.79  12.91  16.49  16.59  15.57  16.01  16.02  16.26  16.65  17.48  16.67  16.69  16.67 
 California  San  Bernadino  17.12  16.55  23.24  23.19  23.19  23.19  23.19  24.15  25.05  24.69  25.69  25.74  26.07  California  San  Diego  12.18  12.18  15.59  15.69  15.57  16.01  15.42  15.34  15.71  17.48  16.67  16.03  16.01 
 California  San  Francisco  12.18  12.69  15.59  15.69  16.45  16.91  15.16  15.34  15.71  17.48  16.67  16.03  16.01  Colorado  Boulder  20.99  21.26  21.51  21.55  21.36  21.39  22.07  23.04  23.07  27.06  27.68  27.17  26.11 
 Colorado  Colorado  Springs  20.29  20.23  19.78  20.38  20.38  20.36  20.85  21.77  22.33  24.48  25.00  24.68  25.07  Colorado  Denver  20.80  21.12  21.10  21.14  21.11  21.40  21.91  22.85  22.98  25.71  26.23  25.62  26.09 
 Connecticut  Ansonia  17.22  17.60  18.70  18.70  18.70  18.64  19.41  20.67  22.02  22.41  22.34  22.15  22.05  Connecticut  Norwal  k16.13  16.51  17.60  17.60  17.60  17.55  18.32  19.58  20.93  21.32  21.25  21.06  20.96 
 District  of  Columbia  Washington  21.70  21.67  20.13  21.05  19.23  20.10  19.94  20.12  21.03  21.01  21.53  21.46  21.26  Florida  Miami  18.07  16.92  16.84  16.86  16.86  16.85  16.83  17.76  18.97  20.26  21.02  21.14  22.44 
 Florida  Tampa  17.45  17.45  17.65  19.09  19.19  19.23  19.23  20.27  21.04  22.29  22.49  22.27  22.15  Florida  West  Palm  Beach  16.74  15.65  15.59  15.89  15.89  15.60  15.58  16.73  18.15  19.56  20.29  20.65  22.03 
 Georgi  a  Albany  20.60  20.63  20.63  21.29  21.29  21.34  21.88  22.98  24.22  25.11  26.25  25.91  25.45  Georgi  a  Atlanta  24.50  24.53  24.80  24.98  24.98  24.92  24.92  26.04  27.25  28.56  29.54  28.90  28.90 
 Hawaii  Honolulu  19.35  20.60  21.35  22.52  22.40  22.40  22.40  23.28  23.28  25.34  26.35  26.27  26.13  Illinois  Chicago  18.21  18.20  17.31  17.63  17.18  17.18  14.52  15.52  21.64  24.68  22.12  21.19  21.27 
 Illinois  Decatur  21.56  21.54  20.19  20.18  20.18  20.18  22.26  23.26  21.08  31.52  29.15  28.44  28.53  Illinois  Rock  Islan  d  22.18  22.17  20.82  20.82  20.18  20.18  21.85  22.85  20.79  31.26  28.90  28.19  28.28 
 Indiana  Indianapolis  21.87  20.44  19.81  18.82  18.82  18.82  19.05  20.25  20.40  20.20  20.21  19.74  19.79  Indiana  Terre  Haute  22.93  23.02  23.02  22.98  22.98  22.98  19.86  22.57  23.63  26.21  25.94  25.95  25.77 
 Iowa  Fort  Dodge  13.79  14.06  14.06  14.06  15.96  15.90  15.57  16.49  17.62  19.04  19.51  19.90  20.07  Kentuck  y  Louisville  24.17  24.17  23.66  23.66  24.63  24.63  24.70  26.41  27.11  28.44  29.06  28.87  28.87 
 Louisiana  Baton  Rouge  22.25  20.81  20.93  20.66  19.57  19.57  19.57  20.47  23.17  23.00  23.65  23.28  23.28  Louisiana  New  Orleans  23.28  20.33  20.14  19.99  18.78  18.78  18.78  19.69  20.67  21.84  22.49  22.12  22.16 
 Maine  Portland  18.24  18.27  17.99  18.19  19.12  19.70  22.53  23.34  24.72  26.31  26.99  27.63  27.72  Marylan  d  Baltimore  24.98  24.98  24.98  24.98  24.98  24.67  24.67  25.73  26.47  27.14  28.09  27.94  28.06 
 Massachusetts  Bosto  n  21.72  23.07  23.07  23.07  23.07  23.07  23.07  23.46  24.53  25.61  29.64  29.88  29.76  Massachusetts  Hyanni  s  20.43  23.07  23.07  23.07  23.07  23.07  23.07  23.46  24.53  25.61  29.64  29.88  29.76 
 Massachusetts  Springfield  21.72  23.07  23.07  23.07  23.07  23.07  23.07  23.46  24.53  25.61  29.64  29.88  29.76  Michigan  Detroi  t  19.25  19.55  19.50  19.42  19.42  19.76  22.50  25.99  27.12  27.77  27.39  27.45  27.52 
 Michigan  Grand  Rapids  17.19  17.53  18.06  17.95  18.01  18.25  20.08  23.28  24.54  25.47  25.07  24.81  24.81  Michigan  Saginaw  18.75  16.93  18.96  20.05  20.05  20.11  19.85  22.99  27.71  28.18  27.52  27.27  27.87 
 Minnesota  Detroit  Lake  s  19.86  19.84  19.91  19.91  19.63  19.63  19.63  20.57  21.50  22.41  22.42  21.69  21.99  Minnesota  Minneapolis  21.64  21.66  21.73  21.73  21.45  21.46  20.61  21.54  22.48  23.38  23.39  22.67  22.97 
 Mississippi  Pascagoula  26.03  26.42  26.42  26.03  26.03  25.26  24.81  25.80  27.05  28.30  28.95  28.73  29.91  Missouri  Kansas  Cit  y  20.40  19.03  18.15  18.15  19.53  19.53  18.25  19.21  20.68  20.33  20.25  21.65  21.76 
 Missouri  Mexico  17.14  15.81  17.19  17.19  17.26  17.26  17.26  18.42  20.10  18.76  18.91  20.29  20.40  Missouri  St.  Loui  s  20.23  19.05  18.18  18.18  18.18  18.18  18.28  19.32  20.87  20.52  20.73  21.54  21.65 
 Montana  Butte  18.22  18.22  18.22  18.22  19.26  19.69  22.70  23.16  24.23  26.25  26.54  26.02  26.11  Nebraska  Grand  Islan  d  21.88  21.88  21.85  21.76  23.39  23.27  26.22  27.14  26.25  29.64  29.38  28.75  28.62 
 New  Jerse  y  Phillipsburg  13.04  13.04  13.04  13.04  13.05  13.05  13.05  13.21  15.31  15.93  16.30  17.09  18.21 


 Table  1.4  Monthl  y  Residential  Tele  phone  Rates  in  the  Sam  ple  Cities  1 
 (As  of  October  15  ) 
16
 State  City  199319941995199619971998199920002001200220032004  2  2005  3 
 New  Mexico  Alamogord  o  20.21  20.46  20.65  20.82  20.99  20.99  19.03  17.50  18.14  22.47  24.22  23.74  23.95  New  Yor  kBinghamton  25.31  24.52  26.03  23.80  23.76  23.74  23.74  23.90  25.01  29.05  30.57  31.24  31.07 


 New  Yor  kBuffalo  32.68  31.63  30.62  28.34  28.29  28.27  28.27  28.37  32.41  32.52  34.25  35.35  35.16  New  Yor  kMassena  22.90  22.88  23.40  21.19  20.33  20.31  20.31  20.50  24.94  24.88  28.79  29.19  29.16 
 New  Yor  kNew  York  Cit  y  26.75  26.73  25.00  24.92  24.88  24.86  24.86  25.00  28.45  29.04  31.81  32.53  32.50  New  Yor  kOgdensburg  23.54  23.52  24.06  21.78  20.90  20.88  20.88  21.08  25.62  25.56  29.56  30.07  29.92 
 New  Yor  kRochester  19.75  18.96  16.83  16.83  17.91  17.86  17.86  18.64  19.55  20.38  20.44  20.41  20.07  North  Carolina  Raleigh  18.23  18.02  17.75  17.48  17.22  17.23  17.23  18.13  19.33  21.28  23.46  23.98  26.66 
 North  Carolina  Rockingha  m  16.74  16.53  16.22  15.95  15.69  15.69  15.69  16.86  19.20  20.54  21.81  22.15  24.96  Ohio  Canton  21.29  21.29  20.00  19.59  18.87  18.72  18.56  19.28  20.31  21.06  21.18  22.14  22.16 
 Ohio  Cincinnati  20.30  21.24  21.13  21.13  21.13  21.05  21.55  22.74  23.54  23.76  23.98  23.61  23.53  Ohio  Cleveland  21.29  21.29  20.00  19.44  18.87  18.72  18.56  19.28  20.31  21.06  21.18  22.45  22.48 
 Ohio  Columbus  21.29  21.29  20.00  19.85  18.87  18.72  18.56  19.28  20.31  21.06  21.18  22.19  22.22  Ohio  Toledo  21.29  21.29  20.00  19.85  18.87  18.72  18.56  19.28  20.31  21.06  21.18  22.29  22.32 
 Orego  n  Corvallis  19.02  18.21  18.73  19.65  19.66  19.88  19.97  21.05  21.62  24.05  23.11  22.67  22.65  Orego  n  Portland  21.42  18.36  22.07  23.02  21.22  21.19  21.19  22.07  23.64  25.44  21.60  22.66  22.65 
 Pennsylvania  Allentown  17.70  17.70  17.59  17.63  17.47  17.94  17.48  18.35  19.59  20.87  22.21  22.10  22.65  Pennsylvania  Ellwood  City  15.07  15.07  16.72  16.76  16.60  16.60  16.60  18.74  20.00  21.28  22.65  22.53  23.09 
 Pennsylvania  Johnstown  20.11  21.95  21.78  20.31  19.48  19.48  21.94  22.86  20.97  21.54  23.33  22.87  23.57  Pennsylvania  New  Castle  15.07  15.58  14.97  15.01  14.90  14.90  14.90  17.04  18.30  19.58  20.84  20.73  21.29 
 Pennsylvania  Philadelphia  20.09  20.09  19.98  18.72  18.56  18.56  18.56  19.41  20.67  22.13  23.57  23.45  24.01  Pennsylvania  Pittsburgh  18.78  18.78  18.67  18.72  17.48  17.48  18.56  19.41  20.67  21.95  23.57  23.45  24.01 
 Pennsylvania  Scranton  16.41  16.41  17.59  17.63  18.56  18.56  17.48  18.32  19.59  20.87  22.31  22.10  22.65  Rhode  Island  Providence  23.09  23.50  23.50  23.50  23.50  23.50  23.49  24.43  25.52  27.68  29.32  30.29  30.15 
 South  Carolina  Beaufort  20.30  20.30  19.76  19.76  19.76  19.76  20.41  21.33  22.26  24.56  24.45  23.80  23.92  Tennessee  Memphis  20.25  20.25  20.25  20.33  20.33  20.33  19.95  20.33  21.76  22.15  22.80  23.08  23.33 
 Tennessee  Nashville  19.41  19.41  19.41  19.41  19.41  19.88  19.51  19.90  20.99  21.72  22.42  22.41  23.33  Texas  Brownsville  15.27  14.33  15.33  15.31  14.91  14.78  15.33  17.16  18.33  21.97  21.54  19.13  19.64 
 Texas  Corpus  Christi  17.00  15.93  15.89  15.90  16.22  17.15  17.17  16.23  17.32  27.39  25.77  20.48  21.03  Texas  Dallas  18.97  17.99  18.00  17.92  17.47  18.07  17.97  19.45  20.64  28.10  26.79  23.14  23.72 
 Texas  Fort  Worth  17.77  16.70  16.73  16.62  16.17  16.75  16.89  19.17  19.66  25.82  25.05  21.49  22.08  Texas  Houston  19.42  18.39  18.44  18.28  17.98  18.31  18.31  18.87  19.55  22.19  22.45  21.92  22.50 
 Texas  San  Antonio  17.52  16.58  16.56  16.42  16.37  16.35  16.35  17.05  18.13  19.83  20.04  19.71  20.26  Utah  Loga  n  15.66  15.62  15.76  15.76  15.70  17.73  17.99  19.38  19.44  22.13  21.80  21.41  21.49 
 Virginia  Richmond  24.60  24.60  23.90  23.78  23.78  23.78  23.78  28.67  29.60  30.06  31.60  30.74  32.30  Virginia  Smithfield  17.01  17.01  17.01  16.90  16.90  16.90  16.90  17.87  27.82  33.29  30.81  30.59  30.42 
 Washington  Everett  18.97  18.97  18.97  18.97  18.97  18.97  19.53  20.47  22.27  24.65  24.71  24.49  27.17  Washington  Seattle  17.00  17.00  16.22  15.93  15.97  15.61  18.16  19.03  19.23  21.91  22.01  21.33  21.28 
 West  Virgini  a  Huntington  28.73  28.73  28.73  28.21  27.68  27.16  27.16  25.69  27.47  29.16  29.25  30.67  31.26  Wisconsin  Milwaukee  16.56  15.91  15.91  15.92  15.92  15.92  16.76  17.46  34.75  34.95  35.56  33.56  33.82 
 Wisconsin  Racine  16.61  15.96  15.87  15.88  15.88  15.88  16.40  17.09  34.61  34.93  35.54  33.54  33.82 
 1  Beginning  in  2001,  all  rates  reflect  flat-  rate  service.  Rates  are  for  flat-  rate  service  where  available  and  measured/  message  service  with  100  local 
 calls  elsewhere.  All  rates  include  subscriber  line  charges,  touch-  tone  service,  surcharges,  911  charges,  and  taxes. 
 2  Revised  figures. 


 3  Preliminary  figures  -  subject  to  revision. 


 (As  of  October  15  ) 
 Table  1.4  Monthl  y  Residential  Tele  phone  Rates  in  the  Sam  ple  Cities  -  Continued  1 
17
 19941995199619971998199920002001200220032004  2  2005  3  Alabama  Huntsville  $42.68  $42.68  $40.00  $40.00  $40.00  $40.00  $40.00  $40.00  $40.00  $40.00  $40.00  $40.00 
 Alask  a  Anchorage  25.50  25.50  25.50  25.50  25.50  35.00  35.00  35.00  43.40  43.40  53.50  53.50  Arizon  a  Tuscon  51.74  51.74  48.92  48.92  48.92  49.85  46.59  38.43  35.00  30.61  30.61  30.61 
 Arkansas  Pine  Bluf  f  44.16  43.92  44.08  44.05  44.05  44.16  39.70  44.16  39.70  39.70  45.00  45.00  Arkansas  West  Memphis  44.24  44.54  44.67  44.71  44.57  44.69  39.70  44.69  39.70  39.70  45.00  45.00 
 California  Anaheim  34.32  35.19  35.47  35.61  35.93  34.29  32.23  32.47  33.01  35.82  35.82  35.82  California  Bakersfiel  d  34.32  35.19  35.47  34.92  35.93  34.29  32.23  32.47  35.82  35.82  35.82  35.82 
 California  Fresno  34.32  35.19  35.47  34.92  35.93  34.29  32.23  32.47  35.82  35.82  35.82  35.82  California  Long  Beach  52.89  45.73  45.61  45.61  45.61  45.61  45.61  45.51  46.00  52.46  46.70  47.66 
 California  Los  Angeles  34.32  35.19  35.47  34.92  35.93  33.70  32.23  35.77  35.82  35.82  35.82  35.82  California  Oaklan  d  34.32  35.19  35.47  34.92  35.93  33.70  32.23  32.47  35.82  35.82  35.82  35.82 
 California  Salinas  34.32  35.19  35.47  34.92  35.93  33.70  32.23  32.47  35.82  35.82  35.82  35.82  California  San  Bernadino  52.89  45.73  45.61  45.61  45.61  45.61  45.61  45.51  46.00  53.84  48.05  49.01 
 California  San  Diego  34.32  35.19  35.47  34.92  35.93  34.29  32.23  32.47  35.82  35.82  35.82  35.82  California  San  Francisco  34.32  35.19  35.47  34.92  35.93  34.29  32.23  32.47  35.82  35.82  35.82  35.82 
 California  San  Jose  34.32  35.19  35.47  35.93  35.93  34.29  32.23  34.12  35.82  35.82  35.82  35.82  Colorado  Colorado  Springs  36.40  36.40  36.40  36.40  36.40  37.53  36.09  37.38  35.00  37.09  37.09  37.78 
 Colorado  Denver  37.56  37.56  37.56  37.56  37.56  38.72  36.09  38.54  38.27  38.27  38.27  38.76  Connecticut  Ansonia  47.70  47.70  47.70  47.70  47.70  47.70  55.00  58.30  65.00  65.00  65.00  65.00 
 Connecticut  Norwal  k47.70  47.70  47.70  47.70  47.70  47.70  55.00  58.30  65.00  65.00  65.00  65.00  District  of  Columbia  Washington  30.76  30.76  30.76  30.76  30.76  30.76  30.76  21.00  23.10  25.10  25.10  25.10 
 Florida  Miami  40.00  40.00  40.00  40.00  40.00  40.00  40.00  43.32  43.92  44.25  44.17  48.64  Florida  Tampa  62.98  62.98  59.13  59.13  59.13  59.13  55.00  59.13  55.00  61.15  61.15  61.15 
 Florida  West  Palm  Beach  40.00  40.00  40.00  40.00  40.00  40.00  40.00  43.28  43.88  44.05  44.05  48.67  Georgi  a  Albany  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50 
 Georgi  a  Atlanta  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  42.50  Hawaii  Honolulu  45.50  45.50  49.30  50.74  50.74  50.74  50.61  50.72  45.50  53.91  52.09  52.09 
 Illinois  Chicago  60.56  60.56  60.56  60.56  60.56  63.03  55.00  59.76  45.40  39.60  39.40  39.40  Illinois  Decatur  60.64  60.64  60.64  60.64  60.64  62.56  55.00  59.31  45.40  39.40  39.40  39.40 
 Illinois  Rock  Islan  d  60.64  60.64  60.64  60.64  60.64  62.56  55.00  59.31  45.40  39.60  39.40  39.40  Indiana  Indianapolis  47.00  47.00  47.00  47.00  47.00  47.00  47.00  47.00  47.00  47.00  47.00  47.00 
 Indiana  Terre  Haute  60.06  60.06  60.06  60.06  60.06  60.06  60.06  60.06  57.20  62.35  62.35  62.35  Iowa  Fort  Dodge  9.82  9.82  9.82  14.06  13.98  13.59  12.94  13.57  12.80  12.76  12.95  13.06 
 Kentuck  y  Louisville  34.50  34.50  42.00  42.00  42.00  42.00  42.00  44.52  44.52  44.52  44.52  42.00  Louisiana  Baton  Rouge  51.80  44.63  44.29  42.23  42.23  42.23  41.00  44.28  44.34  44.34  44.34  44.34 
 Louisiana  New  Orleans  52.00  44.29  44.29  42.23  42.23  42.23  41.00  42.23  42.23  42.23  42.23  42.23  Maine  Portlan  d  47.44  47.44  47.44  47.44  47.21  47.21  44.75  46.99  44.75  48.33  48.96  48.90 
 Marylan  d  Baltimore  48.00  48.00  48.00  48.00  48.00  48.00  48.00  48.00  48.00  56.18  51.79  51.79  Massachusetts  Bosto  n  38.92  38.92  38.92  38.92  38.92  38.92  37.07  14.18  13.50  14.59  14.59  14.59 
 Massachusetts  Hyannis  38.92  38.92  38.92  38.92  38.92  38.92  37.07  14.18  13.50  14.59  14.59  14.59  Massachusetts  Springfiel  d  38.92  38.92  38.92  38.92  38.92  38.92  37.07  14.18  13.50  14.59  14.59  14.59 
 Michigan  Detroi  t  44.52  44.52  44.52  44.52  44.52  46.62  42.00  46.62  46.62  46.62  46.90  46.90  Michigan  Grand  Rapids  44.52  44.52  44.52  44.52  44.52  44.52  42.00  44.52  44.52  44.52  44.78  44.78 
 Michigan  Saginaw  44.52  44.52  44.52  44.52  44.52  44.52  42.00  44.52  44.52  44.52  44.78  44.78  Minnesota  Detroit  Lake  s  18.75  18.75  19.97  19.54  19.54  19.54  18.35  19.54  19.54  19.54  19.54  19.54 
 Minnesota  Minneapolis  18.75  18.75  20.06  19.63  19.63  19.63  18.35  19.63  19.63  19.63  19.63  19.63  Mississipp  i  Pascagoula  49.22  49.22  49.22  49.22  49.22  49.22  46.00  49.22  49.22  49.22  49.22  49.22 
 Missouri  Kansas  Cit  y  42.47  42.47  42.47  42.47  42.47  42.70  36.50  41.69  41.51  37.45  41.16  41.16  Missouri  Mexico  51.98  41.70  41.70  41.88  41.88  41.88  36.50  41.49  41.18  41.55  41.53  41.53 
 Missouri  St.  Loui  s  53.67  43.06  43.06  43.06  43.06  43.30  36.50  42.93  42.61  42.99  42.97  42.97  Montana  Butte  35.30  25.00  25.00  25.00  25.00  26.00  26.00  26.00  26.00  26.00  26.00  26.00 
 Nebrask  a  Grand  Islan  d  30.52  30.52  36.03  36.03  36.03  37.41  35.29  37.27  37.44  37.44  37.60  36.22  New  Jerse  y  Phillipsburg  44.52  44.52  44.89  44.89  44.89  44.89  42.35  44.89  44.89  46.16  46.16  46.16 


 Table  1.5 
 (As  of  October  15)  Connection  Charges  for  a  Residential  Telephone  Line  in  the  Sample  Cities 
 1 


 State  City 
18
 19941995199619971998199920002001200220032004  2  2005  3  New  Mexico  Alamogord  o  31.96  31.96  31.86  31.86  31.86  31.86  30.00  31.99  32.01  32.01  32.09  32.27 
 New  Yor  kBinghamton  62.42  62.71  62.59  62.47  62.41  62.41  57.13  61.53  55.00  61.61  63.32  63.18  New  Yor  kBuffalo  64.13  63.83  63.71  63.59  63.53  63.53  58.17  62.57  55.00  62.68  64.56  64.42 
 New  Yor  kMassena  62.63  62.34  62.22  62.10  62.05  62.05  57.33  61.18  55.00  61.26  62.50  62.63  New  Yor  kNew  Yor  k64.58  64.29  64.02  63.90  63.84  63.84  58.32  62.47  55.00  62.62  64.60  64.53 
 New  Yor  kOgdensburg  64.39  64.09  63.97  63.85  63.79  63.79  57.33  62.83  55.00  62.91  64.42  64.28  New  Yor  kRochester  33.32  33.32  33.32  33.32  33.32  33.32  33.32  33.32  33.32  33.32  33.32  33.32 
 North  Carolin  a  Raleigh  44.03  44.03  44.03  44.03  44.03  44.03  42.75  44.03  45.32  45.32  45.32  45.74  North  Carolin  a  Rockingha  m  44.03  44.03  44.03  44.03  44.03  44.03  42.75  44.03  45.32  45.32  45.32  45.74 
 Ohio  Canton  45.80  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  Ohio  Cincinnati  31.70  31.70  31.70  31.70  25.70  25.70  25.70  25.70  25.70  25.70  25.70  25.70 
 Ohio  Clevelan  d  45.80  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  Ohio  Columbu  s  45.80  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50 
 Ohio  Toledo  45.80  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  36.50  Oregon  Corvalli  s  12.00  12.00  12.36  12.36  12.36  12.36  12.36  12.72  16.50  17.90  17.99  17.99 
 Oregon  Portlan  d  12.00  12.00  12.36  12.36  12.36  12.36  12.36  12.72  16.50  17.90  17.99  17.99  Pennsylvania  Allentown  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  43.60  43.60  43.60 
 Pennsylvania  Ellwood  City  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  43.60  43.60  43.60  Pennsylvania  Johnstown  55.86  55.86  55.86  55.86  55.86  55.86  52.70  55.86  52.70  57.44  57.44  57.44 
 Pennsylvania  New  Castle  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  43.60  43.60  43.60  Pennsylvania  Philadelphia  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.40  44.00  44.00  44.00 
 Pennsylvania  Pittsburgh  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  44.00  44.00  44.00  Pennsylvania  Scranton  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  40.00  43.60  43.60  43.60 
 Rhode  Island  Providence  36.20  36.20  36.20  36.20  36.20  36.20  33.83  36.20  33.83  37.21  37.21  37.21  South  Carolina  Beaufort  32.30  32.30  32.30  32.30  32.30  32.30  32.30  32.30  32.30  32.30  32.30  32.30 
 Tennessee  Memphis  47.39  47.39  47.62  47.62  47.62  47.40  43.85  47.28  47.76  47.96  47.96  45.44  Tennessee  Nashvill  e  45.13  45.13  45.13  45.13  45.13  44.92  41.50  44.92  45.44  45.45  45.45  45.44 
 Texas  Brownsville  44.06  47.12  47.08  47.07  46.65  47.39  38.35  47.39  44.06  41.51  41.51  41.51  Texas  Corpus  Christi  47.39  47.28  47.31  48.25  43.85  43.91  38.35  43.91  43.91  41.47  41.47  41.47 
 Texas  Dallas  48.38  48.38  48.18  46.95  48.58  48.31  38.35  48.31  44.06  41.51  41.51  41.51  Texas  Fort  Worth  47.82  47.90  47.59  46.31  47.95  48.36  38.35  48.36  44.06  41.32  41.32  41.32 
 Texas  Houston  48.37  48.40  47.98  47.20  44.06  44.06  38.35  44.06  44.06  41.13  41.13  41.13  Texas  San  Antonio  47.38  47.31  46.93  47.71  43.85  43.85  38.35  43.85  43.91  41.18  41.13  41.13 
 Utah  Loga  n  19.90  19.90  26.53  26.50  26.50  26.83  25.17  27.41  25.00  26.68  27.89  27.90  Virginia  Richmon  d  38.50  38.50  38.50  38.50  38.50  38.50  38.50  38.50  38.50  50.79  49.67  49.67 
 Virginia  Smithfiel  d  29.25  29.25  30.00  30.00  30.00  40.00  40.00  40.00  40.00  47.20  47.20  47.20  Washington  Everett  42.08  42.08  46.67  46.67  46.67  46.67  43.25  46.67  43.25  50.09  50.09  50.22 
 Washington  Seattle  33.08  32.98  32.98  32.98  32.98  32.98  32.98  32.98  32.98  32.98  32.98  32.98  West  Virginia  Huntington  42.00  42.00  42.00  42.00  42.00  42.00  42.00  42.00  42.00  44.10  44.10  44.10 
 Wisconsin  Milwaukee  34.87  34.87  34.90  34.90  35.52  47.52  45.00  58.08  55.00  51.90  51.90  49.30  Wisconsin  Racine  34.70  34.70  34.74  34.74  35.52  47.30  55.00  57.81  55.00  51.90  51.90  49.30 


 1  Rates  include  additonal  monthly  taxes  and  surcharges. 
 2  Revised  figures. 
 3  Subject  to  revision. 


 State  City 
 (As  of  October  15)  Connection  Char  ges  for  a  Residential  Tele  phone  Line  in  the  Sam  ple  Cities  -  Continued 


 Table  1.5 
19
 Standard  Rate  in  Cities  with 
 Subsid  y  Plan 
 Subsidy-  Plan  Rate  Benefit 


 (a)  (b)  (a)  -  (b) 
 Representative  Monthly  Charge  1  $14.75  $8.42  $6.32  Federal  and  State  Subscriber  Line  Charges  5.81  0.14  5.67 


 Taxes,  911  and  Other  Charges  4.19  2.09  2.10  Total  Monthly  Charge  2  $24.74  $10.65  $14.10 


 Basic  Connection  Charge  $39.30  $12.60  $26.70  Taxes  3.41  1.10  2.31 
 Total  Connection  Charge  2  $42.71  $13.70  $29.01 


 1  All  standard  rates  reflect  flat-  rate  service.  Subsidy  plan  rates  reflect  flat-  rate  subsidized  service 
 where  available  and  subsidized  measured/  message  service  with  100  calls  elsewhere. 
 2  Averages  are  for  the  95  cities  with  subsidized  monthly  rates  and  connection  assistance  plans. 


 Table  1.6  Comparison  of  Standard  Local  Telephone  Rates  to  Lifeline  and  Link-  Up  Rates 
 (As  of  October  15,  2005) 


 Note:  Details  may  not  add  to  totals  due  to  rounding. 
20
 Monthl  y  Tele  phone  Rate  Connection  Char  ge  Including  SLCs,  Surcharges  Including  Surcharges 
 City  Telephone  and  Taxes  CompanyStandard  Lifeline  Standard  Link-  U  p 
 Rates  Rates  Rates  Rates 
 Alabama  Huntsville  BellSouth  $26.54  $11.17  $40.00  $20.00  Alaska  Anchorag  e  ACS  23.31  2.61  53.50  0.00 


 Arizona  Tucso  n  Qwes  t  22.74  9.68  30.61  15.31  Arkansas  Pine  Bluff  SBC  27.65  14.49  45.00  22.50 
 Arkansas  West  Memphis  SBC  34.33  12.17  45.00  22.50  California  Anaheim  SBC  16.01  5.94  35.82  17.81 


 California  Bakersfiel  d  SBC  16.01  5.94  35.82  17.81  California  Fresno  SBC  16.01  5.94  35.82  17.81 
 California  Long  Beach  Verizo  n  25.38  5.52  47.66  10.36  California  Los  Angeles  SBC  17.56  6.49  35.82  17.81 
 California  Oakland  SBC  17.17  6.36  35.82  17.81  California  San  Bernadino  Verizo  n  26.07  5.67  49.01  10.65 
 California  San  Diego  SBC  16.01  5.94  35.82  17.81  California  San  Francisco  SBC  16.01  5.94  35.82  17.81 
 California  San  Jose  SBC  16.56  6.22  35.82  17.81  Colorado  Boulder  Qwes  t  26.11  6.31  38.96  19.48 
 Colorado  Colorado  Springs  Qwes  t  25.07  6.18  37.78  18.89  Colorado  Denver  Qwes  t  26.09  6.41  38.76  19.38 
 Connecticut  Ansonia  SBC  22.05  11.30  65.00  35.00  Connecticut  Norwal  kSBC  20.96  10.21  65.00  35.00 
 District  of  Columbia  Washington  Verizo  n  21.26  4.51  25.10  12.55  Florida  Miami  BellSout  h  22.44  6.77  48.64  24.32 
 Florida  Tampa  Verizo  n  22.15  6.39  61.15  30.58  Florida  West  Palm  Beach  BellSouth  22.03  6.38  48.67  24.32 
 Georgi  a  Albany  BellSouth  25.45  10.39  42.50  0.00  Georgi  a  Atlanta  BellSouth  28.90  13.58  42.50  0.00 
 Hawaii  Honolulu  Verizo  n  26.13  17.43  52.09  26.04  Illinois  Chicago  SBC  21.27  14.71  39.40  9.70 
 Illinois  Decatur  SBC  28.53  21.96  39.40  9.70  Illinois  Rock  Island  SBC  28.28  21.71  39.40  9.70 
 Indiana  Indianapolis  SBC  19.79  11.86  47.00  0.00  Indiana  Terre  Haute  Verizo  n  25.77  16.04  62.35  31.18 
 Iowa  Fort  Dodge  Frontier  20.07  10.08  13.06  6.53  Kentuck  y  Louisville  BellSouth  28.87  13.50  42.00  21.00 
 Louisiana  Baton  Rouge  BellSouth  23.28  13.85  44.34  22.18  Louisiana  New  Orleans  BellSout  h  22.16  12.96  42.23  21.12 
 Maine  Portland  Verizo  n  27.72  9.87  48.90  10.93  Maryland  Baltimore  Verizo  n  28.06  7.78  51.79  16.68 
 Massachusetts  Bosto  n  Verizo  n  29.76  8.86  14.59  7.29  Massachusetts  Hyannis  Verizo  n  29.76  8.86  14.59  7.29 
 Massachusetts  Springfiel  d  Verizo  n  29.76  8.86  14.59  7.29  Michigan  Detroi  t  SBC  27.52  17.14  46.90  0.00 
 Michigan  Grand  Rapids  SBC  24.81  14.53  44.78  0.00  Michigan  Sagina  w  SBC  27.87  17.59  44.78  0.00 
 Minnesota  Detroit  Lakes  Qwes  t  21.99  12.10  19.54  9.78  Minnesota  Minneapolis  Qwes  t  22.97  13.07  19.63  9.83 
 Mississippi  Pascagoula  BellSout  h  29.91  14.40  49.22  24.61  Missouri  Kansas  City  SBC  21.76  9.32  41.16  18.10 
 Missouri  Mexico  SBC  20.40  7.85  41.53  18.10  Missouri  St.  Louis  SBC  21.65  9.17  42.97  18.10 
 Montana  Butte  Qwes  t  26.11  6.93  26.00  13.00  Nebraska  Grand  Island  Qwes  t  28.62  16.16  36.22  18.81 
 New  Jerse  y  Phillipsburg  Verizo  n  18.21  2.13  46.16  23.09 


 Table  1.7  Lifeline  and  Link-  U  p  Rates  in  the  Sam  ple  Cities 
 (As  of  October  15,  2005) 


 State  and  Taxes  1 
21
 Table  1.7  Lifeline  and  Link-  U  p  Rates  in  the  Sam  ple  Cities  -  Continued 
 (As  of  October  15  ,  2005  ) 
 Monthl  y  Tele  phone  Rate  1  Connection  Charge  Includin  g  Surchar  ges  Includin  g  Surchar  ges 
 CityTele  phone  and  Taxes  CompanyStandard  Lifeline  Standard  Link-  U  p 
 Rates  Rates  Rates  Rates 
 New  Mexico  Alamogord  o  Qwes  t  23.95  5.30  32.27  8.07  New  Yor  kBinghamton  Verizo  n  31.07  13.84  63.18  5.74 


 New  Yor  kBuffalo  Verizo  n  35.16  18.23  64.42  5.86  New  Yor  kMassena  Verizo  n  29.16  10.51  62.63  5.69 
 New  Yor  kNew  York  Cit  y  Verizo  n  32.50  15.29  64.53  5.87  New  Yor  kOgdensbur  g  Verizo  n  29.92  10.79  64.28  5.84 
 New  Yor  kRochester  Frontier  20.07  8.46  33.32  10.00  North  Carolina  Raleig  h  BellSouth  26.66  11.15  45.74  22.88 
 North  Carolina  Rockingha  m  BellSouth  24.96  9.45  45.74  22.88  Ohio  Canto  n  SBC  22.16  8.64  36.50  0.00 
 Ohio  Cincinnati  Cincinnati  Bell  23.53  10.37  25.70  0.00  Ohio  Clevelan  d  SBC  22.48  8.76  36.50  0.00 
 Ohio  Columbus  SBC  22.22  8.66  36.50  0.00  Ohio  Toled  o  SBC  22.32  8.70  36.50  0.00 
 Orego  n  Corvallis  Qwes  t  22.65  7.32  17.99  9.00  Orego  n  Portland  Qwes  t  22.65  7.32  17.99  9.00 
 Pennsylvania  Allentown  Verizo  n  22.65  9.54  43.60  21.80  Pennsylvania  Ellwood  City  Verizo  n  23.09  9.97  43.60  21.80 
 Pennsylvania  Johnstow  n  Verizo  n  23.57  9.76  57.44  28.72  Pennsylvania  New  Castle  Verizo  n  21.29  8.18  43.60  21.80 
 Pennsylvania  Philadelphia  Verizo  n  24.01  10.78  44.00  22.00  Pennsylvania  Pittsburgh  Verizo  n  24.01  10.78  44.00  22.00 
 Pennsylvania  Scranton  Verizo  n  22.65  9.54  43.60  21.80  Rhode  Island  Providence  Verizo  n  30.15  13.40  37.21  18.61 
 South  Carolina  Beaufort  Sprint  23.92  7.77  32.30  16.15  Tennessee  Memphis  BellSout  h  23.33  8.09  45.44  22.72 
 Tennessee  Nashville  BellSout  h  23.33  8.09  45.44  22.72  Texas  Brownsville  SBC  19.64  3.92  41.51  19.18 
 Texas  Corpus  Christi  SBC  21.03  3.34  41.47  19.18  Texas  Dallas  SBC  23.72  7.16  41.51  19.18 
 Texas  Fort  Worth  SBC  22.08  5.58  41.32  19.18  Texas  Houston  SBC  22.50  5.31  41.13  19.18 
 Texas  San  Antonio  SBC  20.26  5.00  41.13  19.18  Utah  Loga  n  Qwes  t  21.49  5.55  27.90  13.94 
 Virginia  Richmon  d  Verizo  n  32.30  16.80  49.67  24.84  Virginia  Smithfiel  d  Verizo  n  30.42  13.70  47.20  23.60 
 Washington  Everett  Verizo  n  27.17  10.21  50.22  25.11  Washington  Seattle  Qwes  t  21.28  9.57  32.98  16.49 
 West  Virginia  Huntingto  n  Verizo  n  31.26  21.40  44.10  0.00  Wisconsin  Milwaukee  SBC  33.82  24.05  49.30  0.00 
 Wisconsin  Racine  SBC  33.82  24.05  49.30  0.00 
 1  Rates  are  for  flat-  rate  service  where  available  and  measured/  message  service  with  100  calls  elsewhere.  Rates  are  subject  to 
 revision. 


 State  and  Taxes 
22
 Table  1.8  Average  Local  Rates  for  Businesses  with  a  Single  Line  in  Urban  Areas 
 Average  Rate  Median  Rate  1 
 Monthl  y  Charge  for  Flat-  Rate  Service  2  $34.15  $33.85  Federal  and  State  Subscriber  Line  Charges  6.04  6.50 


 Taxes,  911,  and  Other  Char  ges  7.71  6.65  Total  Monthl  y  Char  ge  for  Flat-  Rate  Service  $47.90$  47.00 


 Number  of  Sample  Cities  with  Flat-  Rate  Servic  e  56 
 Monthl  y  Charge  for  Measured/  Messa  ge  Service  2  $18.02  $18.50  Federal  and  State  Subscriber  Line  Charges  5.66  5.92 
 Taxes,  911,  and  Other  Char  ges  4.95  4.72  Total  Monthl  y  Char  ge  for  Measured/  Messa  ge  Service  $28.63$  29.14 


 Cost  of  a  5-  Minute  Daytime  Cal  l  0.10  0.09  Number  of  Sample  Cities  with  Message/  Measured  Servic  e  86 


 Basic  Connection  Charge  2  $67.35  $62.85  Taxes  6.35  4.87 
 Total  Connection  Char  ge  $73.70$  67.72 
 Additional  Charge  if  Drop  Line  and  Connection  Block  Needed  13.76  0.00 


 Lowest-  Cost  Inside  Wiring  Maintenance  Pla  n  $5.73  $5.75 


 Note:  Detail  ma  y  not  add  to  totals  due  to  rounding. 
 1  Where  a  rate  exists  for  fewer  than  95  cities,  the  median  represents  the  midpoint  rate  for  those  cities 
 which  have  the  service  offering. 


 2  Includes  additional  monthly  charges  for  touch-  tone  service. 


 (As  of  October  15,  2005) 
23
 1989 
 1990 
 1991 
 1992 
 1993 
 1994 
 1995 
 1996 
 1997 
 1998 
 1999 
 2000 
 2001 
 2002 
 2003 
 1 


 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 
 Charge  s 


 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 


 a  4 
 a  4 
 a  4 
 a  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 
 $41.96 
 $43.49 
 $43.94 


 Monthly 
 Charge 


 for 
 Flat-  Rate 


 Servic 
 e 


 $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 
 Charge  s 


 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 


 a  4 
 a  4 
 a  4 
 a  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 


 N 
 umber 


 of 
 Sample 


 Cities 
 with 
 Flat-  Rate 


 Service 


 59 
 56 


 54 
 54 
 54 
 53 
 53 
 53 
 53 
 54 
 54 
 54 
 54 
 52 
 52 
 56 
 56 


 Monthl 
 y 
 Charge 


 for 
 Measured/  Messa 


 ge 
 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, 


 Business-  Day, 


 Same-  Zone 
 Call 
 s 


 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 
 Charge  s 


 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 


 a  4 
 a  4 
 a  4 
 a  4 


 Tax, 
 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 


 N 
 umber 


 of 
 Sample 


 Cities 
 with 
 Measured/  Message 


 Servic 
 e 


 83 
 83 
 84 
 84 
 84 
 87 
 87 
 86 


 85 
 85 
 85 
 85 
 85 
 86 
 85 
 86 
 86 


 Cost 
 of 
 a 
 Five-  Minute, 


 Business-  Day, 


 Same-  Zone 
 Cal 
 l 


 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.09 
 $0.10 


 $0.10 


 Basic 
 Connection 


 Charg  e 


 $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 


 a  4 
 a  4 
 a  4 
 a  4 


 Tax, 
 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 
 Neede 


 d 
 $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 


 Pla 
 n 


 $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 


 N 
 ote: 


 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 
 Starting 


 in 
 2002, 


 additional 


 monthly 
 charges 
 for 
 touch-  tone 


 service 
 are 
 included 


 in 
 the 


 monthly 


 charge. 


 Table 
 1.9 


 Average 
 Local 
 Rates 


 for 
 Businesses 


 with 
 a 
 Single 


 Line 
 in 
 Urban 


 Areas 


 (As 
 of 
 October 


 15) 
24
 Monthl  y  Tele  phone  Rate  Includin  g  Touch-  Tone  ,  SLCs  Cost  of  a  Five-  Minute  Connection  Char  ges 
 Telephone  Surcharges,  and  Taxes  Same-  Zone  Including  Touch-  Tone,  Company  Flat-  Rate  Measured/  Message  Daytime  Call  Surcharges,  and  Taxes 


 Service  Service 
 Alabama  Huntsville  BellSouth  $49.64  $35.82  $0.12  $69.00  Alask  a  Anchorage  ACS  38.21  56.50 


 Arizon  a  Tucson  Qwes  t  42.62  52.10  Arkansas  Pine  Bluff  SBC  48.53  31.19  0.07  84.00 
 Arkansas  West  Memphi  s  SBC  58.95  28.74  0.07  84.00  California  Anaheim  SBC  15.08  0.07  78.63 
 California  Bakersfiel  d  SBC  15.08  0.07  78.63  California  Fresno  SBC  15.08  0.07  78.63 
 California  Long  Beach  Verizo  n  27.38  0.08  90.94  California  Los  Angeles  SBC  16.54  0.07  78.63 
 California  Oaklan  d  SBC  16.18  0.07  78.63  California  Salinas  SBC  15.69  0.07  78.63 
 California  San  Bernadino  Verizo  n  28.12  0.08  95.92  California  San  Diego  SBC  15.08  0.07  78.63 
 California  San  Francisco  SBC  16.18  0.07  78.63  California  San  Jos  e  SBC  15.59  0.07  78.63 
 Colorado  Boulder  Qwes  t  49.84  30.41  0.13  66.20  Colorado  Colorado  Springs  Qwes  t  47.44  29.13  0.13  62.60 
 Colorado  Denver  Qwes  t  49.62  30.36  0.13  65.58  Connecticut  Ansonia  SBC  47.01  29.23  0.18  75.00 
 Connecticut  Norwal  kSBC  44.07  29.23  0.18  75.00  District  of  Columbia  Washington  Verizo  n  23.44  0.09  115.73 
 Florida  Miami  BellSout  h  44.70  41.00  0.12  80.46  Florida  Tampa  Verizo  n  45.26  35.18  0.10  93.70 
 Florida  West  Palm  Beach  BellSouth  44.02  39.79  0.12  80.46  Georgi  a  Albany  BellSouth  45.94  40.50  0.12  58.25 
 Georgi  a  Atlanta  BellSouth  64.22  58.25  Hawaii  Honolulu  Verizo  n  51.05  58.68 
 Illinois  Chicago  SBC  14.24  0.11  52.35  Illinois  Decatur  SBC  21.98  0.11  52.35 
 Illinois  Rock  Islan  d  SBC  21.68  0.11  52.35  Indiana  Indianapolis  SBC  49.76  36.94  0.16  59.00 
 Indiana  Terre  Haute  Verizo  n  41.29  77.30  Iowa  Fort  Dodge  Frontier  30.03  20.76 
 Kentuck  y  Louisville  BellSouth  45.58  50.69  0.12  73.00  Louisiana  Baton  Rouge  BellSouth  46.00  42.49  0.05  98.86 
 Louisiana  New  Orlean  s  BellSouth  43.62  40.71  0.06  90.10  Maine  Portland  Verizo  n  46.95  65.74 
 Marylan  d  Baltimore  Verizo  n  24.34  0.09  132.08  Massachusett  s  Boston  Verizo  n  56.09  27.17  0.14  107.90 
 Massachusett  s  Hyannis  Verizo  n  56.09  27.17  0.14  107.90  Massachusett  s  Springfield  Verizo  n  56.09  27.17  0.14  107.90 
 Michiga  n  Detroit  SBC  24.61  0.09  51.55  Michiga  n  Grand  Rapids  SBC  22.86  0.09  47.31 
 Michiga  n  Saginaw  SBC  26.96  0.09  47.31  Minnesot  a  Detroit  Lake  s  Qwes  t  44.56  29.99  0.10  54.12 
 Minnesot  a  Minneapoli  s  Qwes  t  54.30  39.57  0.10  54.60  Mississipp  i  Pascagoula  BellSouth  50.64  43.26  0.12  76.38 
 Missour  i  Kansas  Cit  y  SBC  52.20  28.28  0.08  70.95  Missour  i  Mexic  o  SBC  36.69  23.11  0.08  67.09 
 Missour  i  St.  Louis  SBC  51.67  28.92  0.08  71.21  Montan  a  Butte  Qwes  t  44.47  29.43  0.10  61.25 
 Nebrask  a  Grand  Islan  d  Qwes  t  39.82  29.29  0.10  56.50  New  Jerse  y  Phillipsburg  Verizo  n  24.81  0.07  94.73 


 Table  1.10  Tele  phone  Rates  in  the  Sam  ple  Cities  for  a  Business  with  a  Sin  gle  Line 
 (As  of  October  15  ,  2005  ) 


 State  City 
25
 Monthl  y  Tele  phone  Rate  Includin  g  Touch-  Tone  ,Cost  of  a  Five-  Minute  Connection  Char  ges 
 Telephone  Surcharges,  and  Taxes  Same-  Zone  Including  Touch-  Tone, 
 State  City  Company  Flat-  Rate  Measured/  Message  Daytime  Call  Surcharges,  and  Taxes  Service  Service 


 New  Mexic  o  Alamogordo  Qwes  t  47.95  30.19  0.15  62.15  New  Yor  kBinghamton  Verizo  n  29.47  0.10  137.61 
 New  Yor  kBuffalo  Verizo  n  30.04  0.10  142.37  New  Yor  kMassen  a  Verizo  n  29.21  0.10  135.49 
 New  Yor  kNew  York  Cit  y  Verizo  n  30.86  0.10  142.79  New  Yor  kOgdensbur  g  Verizo  n  29.98  0.10  141.85 
 New  Yor  kRochester  Frontier  20.11  0.09  50.89  North  Carolin  a  Raleigh  BellSouth  45.67  74.10 
 North  Carolin  a  Rockingha  m  BellSouth  44.61  74.10  Ohio  Canto  n  Ameritech  38.10  0.08  62.85 
 Ohio  Cincinnati  Cincinnati  Bel  l  53.71  37.23  0.15  49.75  Ohio  Clevelan  d  SBC  33.65  0.08  62.85 
 Ohio  Columbu  s  SBC  33.27  0.08  62.85  Ohio  Toled  o  SBC  35.61  0.08  62.85 
 Orego  n  Corvallis  Qwes  t  37.48  28.49  0.15  31.00  Orego  n  Portland  Qwes  t  37.48  28.49  0.15  36.58 
 Pennsylvania  Allentown  Verizo  n  33.58  0.07  88.50  Pennsylvania  Ellwood  City  Verizo  n  36.31  0.07  88.50 
 Pennsylvania  Johnstow  n  Verizo  n  40.82  24.47  0.07  67.38  Pennsylvania  New  Castl  e  Verizo  n  36.31  0.07  88.50 
 Pennsylvania  Philadelphia  Verizo  n  28.12  0.07  90.00  Pennsylvania  Pittsburgh  Verizo  n  28.12  0.07  90.00 
 Pennsylvania  Scranton  Verizo  n  33.58  0.07  88.50  Rhode  Island  Providence  Verizo  n  30.35  0.02  53.53 
 South  Carolina  Beaufort  Sprint  42.89  28.64  0.12  35.60  Tennessee  Memphi  s  BellSouth  56.97  43.58  0.12  69.62 
 Tennessee  Nashvill  e  BellSouth  57.95  44.57  0.12  69.62  Texas  Brownsville  SBC  37.36  28.27  0.08  66.76 
 Texas  Corpus  Christi  SBC  40.11  31.01  0.08  66.62  Texas  Dallas  SBC  53.19  41.53  0.08  66.92 
 Texas  Fort  Worth  SBC  45.80  35.25  0.08  66.18  Texas  Houston  SBC  48.95  37.39  0.08  65.60 
 Texas  San  Antonio  SBC  40.72  30.93  0.08  65.60  Utah  Loga  n  Qwes  t  31.82  25.80  0.08  61.56 
 Virginia  Richmon  d  Verizo  n  76.65  27.85  0.19  101.12  Virginia  Smithfiel  d  Verizo  n  52.52  38.25  0.16  54.40 
 Washington  Everett  Verizo  n  46.55  32.62  0.02  86.60  Washington  Seattle  Qwes  t  40.14  30.28  0.07  63.10 
 West  Virgini  a  Huntington  Verizo  n  65.91  33.89  0.16  86.90  Wisconsin  Milwauke  e  SBC  26.17  0.09  64.65 
 Wisconsin  Racine  SBC  26.15  0.09  64.65 


 Table  1.10  Tele  phone  Rates  in  the  Sam  ple  Cities  for  a  Business  with  a  Sin  gle  Line  -  Continued 
 (As  of  October  15  ,  2005  ) 
26
 Table  1.11 
 City  1994199519961997199819992000200220032004  2  2005  3 
 Alabama  Huntsville  $60.55  $56.15  $53.46  $50.90  $48.40  $45.97  $46.91  $48.97  $49.86  $49.59  $49.64  Alaska  Anchorage  31.04  31.05  31.05  31.08  31.12  31.11  31.11  35.57  35.68  35.75  38.21 


 Arizona  Tucson  40.72  41.73  41.71  42.00  42.00  42.01  42.68  44.17  43.27  42.54  42.62  Arkansas  Pine  Bluff  41.10  40.91  41.05  41.13  41.13  41.39  42.53  45.51  45.70  47.10  48.53 
 Arkansas  West  Memphi  s  53.30  53.70  53.85  53.03  53.80  54.14  55.06  58.66  58.61  58.94  58.95  California  Anaheim  29.10  30.43  30.65  30.25  30.28  28.34  27.20  18.92  19.00  17.11  29.08 
 California  Bakersfiel  d  29.15  31.06  31.29  30.64  30.92  28.23  27.20  18.92  17.72  17.11  29.08  California  Fresno  29.97  31.06  31.29  31.10  30.92  28.11  27.78  19.49  17.72  29.11  29.08 
 California  Long  Beach  36.92  43.95  43.84  40.67  43.84  43.84  44.81  43.22  46.67  43.14  43.38  California  Los  Angeles  31.38  33.36  33.60  31.75  33.16  30.24  30.55  18.92  17.72  30.57  30.54 
 California  Oaklan  d  30.67  32.63  32.86  NA  32.45  29.58  29.24  18.92  17.72  30.21  30.18  California  Salinas  31.00  32.97  33.21  31.10  32.79  29.94  29.54  18.82  17.72  29.71  29.69 
 California  San  Bernadino  36.41  43.35  43.25  43.29  43.25  43.25  44.20  43.20  47.43  43.80  44.12  California  San  Diego  28.54  30.43  30.65  30.56  30.30  27.62  27.20  18.92  17.72  29.11  29.08 
 California  San  Francisco  31.18  32.63  33.38  33.29  32.45  29.58  29.24  18.92  17.72  30.21  30.18  California  San  Jose  29.96  31.90  32.13  32.02  31.33  28.93  28.56  18.92  17.72  29.61  29.59 
 Colorado  Boulder  46.88  47.16  47.15  47.03  46.94  45.52  46.25  51.01  51.75  51.07  49.84  Colorado  Colorado  Springs  44.27  43.82  44.42  44.42  44.40  42.87  43.51  45.89  46.41  45.84  47.44 
 Colorado  Denver  46.69  46.68  46.65  46.59  46.57  45.22  45.89  48.48  49.00  48.11  49.62  Connecticut  Ansonia  40.76  43.70  43.70  43.70  43.65  44.39  45.67  47.38  47.30  46.87  47.01 
 Connecticut  Norwalk37.91  40.86  40.86  40.86  40.70  41.46  42.72  44.47  44.36  44.17  44.07  District  of  Columbia  Washington  35.32  33.37  39.17  37.84  34.85  35.81  36.34  36.18  39.16  39.08  41.44 
 Florida  Miam  i  40.65  40.65  40.67  40.13  37.40  40.64  41.63  43.86  44.75  44.70  44.70  Florida  Tampa  37.66  37.87  41.09  41.09  41.18  41.18  42.21  44.98  45.39  45.36  45.26 
 Florida  West  Palm  Beach  39.47  37.39  38.13  38.67  40.66  37.38  38.60  41.76  42.57  43.13  44.02  Georgia  Alban  y  39.74  39.74  41.00  41.00  41.15  41.70  42.98  45.16  46.80  46.47  45.94 
 Georgia  Atlanta  53.64  58.82  58.87  58.87  58.81  58.81  60.25  62.60  64.84  64.22  64.22  Hawaii  Honolulu  42.74  44.39  46.09  47.32  47.32  47.32  48.20  49.63  51.85  51.19  51.05 
 Illinois  Chicago  34.12  32.12  31.91  31.91  33.74  35.12  36.12  33.08  33.23  32.88  36.64  Illinois  Decatur  38.01  35.96  35.71  35.15  40.17  42.49  43.49  40.50  20.81  40.63  44.38 
 Illinois  Rock  Islan  d  38.64  36.58  36.58  35.77  40.79  42.02  43.08  40.24  40.51  40.33  44.08  Indiana  Indianapolis  57.46  56.78  55.84  55.84  55.84  56.07  57.27  59.03  54.51  49.68  49.76 
 Indiana  Terre  Haute  47.07  47.07  47.03  47.03  43.91  43.91  37.99  41.96  41.46  41.47  41.29  Iowa  Fort  Dodge  22.44  22.44  22.44  22.44  25.95  25.34  26.26  28.81  29.25  29.78  30.03 
 Kentuck  y  Louisville  60.96  61.01  55.87  56.84  45.27  45.33  48.75  45.12  45.80  45.60  45.58  Louisiana  Baton  Rouge  48.55  49.50  47.76  46.12  45.40  41.53  42.43  45.72  47.26  46.00  46.00 
 Louisiana  New  Orleans  50.21  50.21  46.30  46.34  45.64  41.30  42.22  43.31  43.96  43.59  43.62  Maine  Portland  40.54  38.63  38.82  39.75  41.33  43.06  43.78  48.37  49.12  46.89  46.95 
 Marylan  d  Baltimore  43.57  43.57  43.57  43.60  43.16  43.12  44.14  41.28  42.69  42.52  42.34  Massachusetts  Boston  43.22  42.78  42.78  42.78  42.78  42.78  42.99  42.67  47.00  55.13  56.09 
 Massachusetts  Hyannis  46.92  46.92  46.92  48.38  48.38  48.38  47.72  42.67  47.00  55.13  56.09  Massachusetts  Springfield  43.22  38.89  38.89  38.89  38.89  38.89  39.31  42.67  47.00  55.13  56.09 
 Michiga  n  Detroit  37.02  37.81  40.89  40.89  38.32  40.68  43.28  42.49  42.46  42.48  42.55  Michiga  n  Grand  Rapids  35.29  36.02  35.81  35.88  36.66  37.57  39.97  41.18  41.12  40.86  40.80 
 Michiga  n  Saginaw  35.11  36.59  37.95  39.14  37.46  38.35  40.71  44.92  44.61  44.36  44.90  Minnesota  Detroit  Lakes  42.35  42.41  42.41  42.28  42.28  42.29  43.22  44.97  44.98  44.26  44.56 
 Minnesota  Minneapolis  54.91  54.98  54.98  54.85  54.85  52.05  52.99  54.71  54.72  54.01  54.30  Mississippi  Pascagoula  57.33  57.33  57.41  56.16  55.88  55.88  54.51  50.20  50.85  50.63  50.64 
 Missouri  Kansas  Cit  y  46.02  45.57  45.57  45.15  45.15  45.34  46.37  49.29  48.48  51.85  52.20  Missouri  Mexico  32.28  36.13  36.13  36.29  36.29  36.29  37.64  37.10  37.46  36.95  36.69 
 Missouri  St.  Louis  46.02  45.15  45.15  45.10  45.10  45.40  46.64  49.81  49.90  51.34  51.67  Montana  Butte  43.82  43.82  43.82  44.07  45.36  42.29  41.84  44.62  44.91  44.39  44.47 
 Nebraska  Grand  Island  47.87  47.84  47.79  47.79  47.57  49.51  44.78  40.91  40.65  40.06  39.82  New  Jerse  y  Phillipsburg  27.58  27.58  26.65  26.51  27.86  27.86  28.79  30.48  30.85  31.14  33.06 


 State 
 Monthly  Telephone  Rates  in  the  Sample  Cities  for  a  Business  with  a  Single  Line  1  (As  of  October  15  ) 
27
 Table  1.11 
 Monthly  Telephone  Rates  in  the  Sample  Cities  for  a  Business  with  a  Single  Line  -  Continued  1  (As  of  October  15  ) 


 City1994199519961997199819992000200220032004  2  2005  3 
 New  Mexico  Alamogordo  55.84  56.03  56.20  56.37  56.37  50.20  44.55  47.53  48.03  47.57  47.95  New  YorkBinghamton  51.24  49.77  49.68  48.07  45.44  48.03  47.91  48.56  49.01  51.55  49.47 


 New  YorkBuffalo  50.80  50.58  50.49  49.12  49.08  48.82  48.69  48.06  49.51  50.28  50.04  New  YorkMassena  49.67  49.46  49.37  49.09  49.05  47.74  47.61  45.57  48.84  49.24  49.21 
 New  YorkNew  York51.13  50.92  50.73  50.07  48.03  49.05  48.91  48.56  50.22  50.88  50.86  New  YorkOgdensburg  51.07  50.85  50.76  49.78  47.74  49.08  48.95  48.31  49.62  50.13  49.98 
 New  YorkRochester  49.84  48.28  48.28  48.86  48.82  44.30  44.77  38.59  38.62  38.62  38.31  North  Carolina  Raleigh  41.76  41.53  40.74  39.94  39.96  39.96  40.86  42.59  45.16  53.63  45.67 
 North  Carolina  Rockingha  m  36.42  36.11  35.32  34.52  34.52  34.52  36.08  41.31  44.23  44.17  44.61  Ohio  Canton  44.48  44.22  44.22  44.22  43.11  43.96  44.84  46.31  46.53  48.35  48.26 
 Ohio  Cincinnati  53.19  52.99  52.99  51.88  51.37  51.73  55.48  53.94  54.16  53.79  53.71  Ohio  Clevelan  d  44.48  43.19  42.16  43.38  40.23  40.20  40.20  41.71  41.79  43.87  43.81 
 Ohio  Columbus  44.48  43.19  42.16  42.16  40.23  40.20  40.20  41.68  41.79  43.49  43.43  Ohio  Toledo  44.48  44.22  44.22  42.16  42.29  41.23  42.11  43.74  43.85  45.85  45.77 
 Oregon  Corvallis  39.69  36.99  39.56  39.58  39.83  39.97  38.11  39.55  37.86  37.49  37.48  Oregon  Portland  46.18  42.79  42.29  42.04  42.00  42.00  42.88  41.86  38.85  37.48  37.48 
 Pennsylvania  Allentown  35.98  37.34  37.34  36.53  37.26  37.26  38.15  45.34  47.21  39.05  38.59  Pennsylvania  Ellwood  City  36.52  36.52  38.81  39.99  39.99  39.99  40.88  47.92  49.94  41.78  41.32 
 Pennsylvania  Johnstown  37.70  37.37  37.72  37.26  40.01  40.01  40.94  32.69  38.31  41.24  40.82  Pennsylvania  New  Castle  38.81  38.81  38.81  38.53  39.99  39.99  40.88  47.92  31.41  41.78  41.32 
 Pennsylvania  Philadelphia  30.63  30.63  28.55  29.99  31.53  31.53  32.42  39.94  41.49  33.61  33.13  Pennsylvania  Pittsburgh  30.63  31.72  31.72  31.72  31.53  34.26  35.15  39.94  41.75  33.61  33.13 
 Pennsylvania  Scranton  35.98  35.98  37.34  37.26  37.26  37.26  38.15  45.34  47.21  39.08  38.59  Rhode  Island  Providence  48.44  48.44  47.82  47.82  47.16  70.51  71.44  70.03  35.17  35.05  34.35 
 South  Carolina  Beaufort  38.69  38.04  38.04  38.04  38.69  38.69  39.60  42.30  42.19  41.54  42.89  Tennessee  Memphis  54.70  54.70  54.95  54.95  54.95  54.69  55.71  55.12  55.77  59.40  56.97 
 Tennessee  Nashville  52.35  52.35  52.35  52.35  53.77  53.52  54.47  53.58  54.77  57.56  57.95  Texas  Brownsville  29.23  31.23  31.23  33.82  35.26  31.44  33.83  36.37  35.94  36.50  37.36 
 Texas  Corpus  Christi  31.90  31.82  31.85  31.01  30.95  29.92  31.16  37.96  39.23  39.16  40.11  Texas  Dallas  38.66  38.65  38.49  33.35  34.54  38.59  39.11  45.70  50.01  51.97  53.19 
 Texas  Fort  Worth  34.44  34.50  34.27  37.51  38.81  34.83  37.25  38.47  42.69  44.72  45.80  Texas  Houston  41.27  41.37  40.35  39.48  42.85  42.85  39.87  49.45  47.76  47.80  48.95 
 Texas  San  Antonio  34.19  34.14  33.86  30.95  30.95  31.56  33.12  39.00  39.81  39.69  40.72  Utah  Loga  n  31.88  31.93  30.22  30.14  28.46  27.82  29.56  32.12  31.37  30.09  31.82 
 Virginia  Richmon  d  75.06  75.06  72.53  72.53  N  A  74.56  77.97  78.63  78.74  76.85  76.65  Virginia  Smithfiel  d  30.08  30.08  30.08  29.98  29.98  29.98  30.94  50.23  52.89  52.68  52.52 
 Washington  Everett  39.98  39.98  39.98  39.98  39.98  41.37  42.31  43.98  44.05  43.83  46.55  Washington  Seattle  37.03  37.03  37.03  37.19  36.47  36.47  37.42  40.82  40.92  40.18  40.14 
 West  Virgini  a  Huntington  73.39  73.39  75.05  73.03  72.02  72.02  67.31  60.60  60.90  65.32  65.91  Wisconsin  Milwauke  e  37.48  37.48  37.51  39.69  39.69  40.80  41.15  41.04  40.84  41.94  44.17 
 Wisconsin  Racine  39.40  39.12  39.16  39.53  39.52  40.63  40.97  41.91  40.82  41.92  44.15 
 1  Rates  are  based  upon  flat-  rate  service  where  available  and  measured/  message  service  with  200  five-  minute,  same-  zone,  business  d  ay 
 calls. 
 2  Revised. 


 3  Subject  to  revision. 


 State 
28
 State  City  1994199519961997199819992001200220032004  2  2005  3 
 Alabama  Huntsville  $73.62  $73.62  $69.00  $69.00  $69.00  $69.00  $69.00  $69.00  $69.00  $69.00  $69.00  Alask  a  ACS  30.75  30.75  30.75  30.75  53.00  53.00  53.00  65.70  65.70  56.50  56.50 


 Arizon  a  Tucson  62.31  62.47  58.91  58.91  58.91  60.03  61.48  53.80  47.30  52.10  52.10  Arkansas  Pine  Bluf  f  93.44  92.94  93.27  93.19  93.22  93.43  93.43  93.43  93.43  84.00  84.00 
 Arkansas  West  Memphis  93.60  94.24  94.51  94.61  94.30  94.55  94.55  94.55  94.55  84.00  84.00  California  Anaheim  69.87  71.64  72.23  73.16  71.10  71.10  66.10  72.92  72.92  78.63  78.63 
 California  Bakersfiel  d  69.87  71.64  72.23  73.16  71.10  69.80  66.10  72.92  72.92  78.63  78.63  California  Fresno  69.87  71.64  72.23  73.16  71.10  69.80  66.10  72.92  72.92  78.54  78.63 
 California  Long  Beach  80.20  84.33  92.51  92.51  92.51  92.51  92.40  93.30  101.34  87.38  90.94  California  Los  Angeles  69.87  71.64  72.23  73.16  71.10  69.80  66.10  73.93  73.93  78.63  78.63 
 California  Oakland  69.87  71.64  72.23  73.16  71.10  69.80  66.10  72.92  72.92  78.63  78.63  California  Salinas  69.87  71.64  72.23  73.16  71.10  69.80  66.10  72.92  72.92  78.63  78.63 
 California  San  Bernadino  80.20  84.33  91.25  91.25  91.25  91.25  91.13  92.03  100.07  92.36  95.92  California  San  Diego  69.87  71.64  72.23  73.16  71.10  69.80  66.10  72.92  72.92  78.63  78.63 
 California  San  Francisco  69.87  71.64  72.23  73.16  71.10  69.80  66.10  72.92  72.92  78.63  78.63  California  San  Jose  69.87  71.64  72.23  73.16  71.10  69.80  66.10  72.92  72.92  78.63  78.63 
 Colorado  Boulder  74.84  74.91  75.08  75.08  75.08  60.94  59.54  61.94  61.94  70.06  66.20  Colorado  Colorado  Springs  72.80  72.80  72.80  72.80  72.80  58.97  57.67  56.11  57.23  60.46  62.60 
 Colorado  Denver  75.11  75.11  75.11  75.11  75.11  60.84  59.45  59.05  59.05  64.10  65.58  Connecticut  Ansonia  68.90  68.90  68.90  68.90  68.90  68.90  68.90  79.50  79.50  75.00  75.00 
 Connecticut  Norwal  k68.90  68.90  68.90  68.90  68.90  68.90  68.90  79.50  79.50  75.00  75.00  District  of  Columbia  Washington  66.03  66.03  83.25  83.25  83.25  83.25  83.25  83.25  99.49  115.73  115.73 
 Florida  Miami  59.92  60.20  60.20  60.20  59.92  60.20  64.45  64.23  64.58  72.92  80.46  Florida  Tampa  78.89  78.89  74.07  74.07  74.07  74.07  74.07  74.07  81.30  93.70  93.70 
 Florida  West  Palm  Beach  59.92  59.92  59.92  59.92  60.20  59.92  64.39  64.18  64.42  72.60  80.46  Georgi  a  Albany  52.25  52.25  52.25  58.25  58.25  58.25  58.25  58.25  58.25  58.25  58.25 
 Georgi  a  Atlanta  52.25  52.25  52.25  58.25  58.25  58.25  58.25  58.25  58.25  58.25  58.25  Hawaii  Honolulu  47.50  47.50  51.47  52.97  52.97  54.97  49.61  44.61  53.91  58.68  58.68 
 Illinois  Chicago  93.03  57.64  57.64  57.64  57.64  59.99  58.42  58.42  58.42  52.35  52.35  Illinois  Decatur  93.17  57.72  57.72  57.72  57.72  59.55  57.98  57.98  57.98  52.35  52.35 
 Illinois  Rock  Islan  d  93.17  57.72  57.72  57.72  57.72  59.55  57.98  57.98  57.98  52.35  52.35  Indiana  Indianapolis  59.00  59.00  59.00  59.00  59.00  59.00  59.00  59.00  59.00  59.00  59.00 
 Indiana  Terre  Haute  68.78  68.78  68.78  68.78  68.78  68.78  68.78  68.78  71.40  77.30  77.30  Iowa  Fort  Dodge  15.65  15.65  15.65  15.65  22.22  21.60  21.57  21.57  21.51  20.59  20.76 
 Kentuck  y  Louisville  47.50  47.50  73.00  73.00  73.00  73.00  77.38  77.38  77.38  81.76  73.00  Louisiana  Baton  Rouge  88.06  87.55  87.55  87.55  87.55  87.55  91.80  87.55  91.93  98.86  98.86 
 Louisiana  New  Orleans  87.55  87.55  87.55  87.55  87.55  87.55  87.55  87.55  87.55  90.10  90.10  Maine  Portland  59.36  59.36  59.36  59.36  59.08  59.08  58.80  58.80  60.48  65.52  65.74 
 Marylan  d  Baltimore  98.50  98.50  98.50  98.50  87.00  87.00  87.00  87.00  115.29  132.08  132.08  Massachusetts  Bosto  n  97.67  97.67  97.67  97.67  97.67  97.67  97.67  97.67  100.46  107.90  107.90 
 Massachusetts  Hyanni  s  97.67  97.67  97.67  97.67  97.67  97.67  97.67  97.67  100.46  107.90  107.90  Massachusetts  Springfiel  d  97.67  97.67  97.67  97.67  97.67  97.67  97.67  97.67  100.46  107.90  107.90 
 Michiga  n  Detroit  44.52  44.52  44.52  44.52  44.52  46.62  46.62  46.62  46.62  51.55  51.55  Michiga  n  Grand  Rapids  43.68  44.52  44.52  44.52  44.52  44.52  44.52  44.52  44.52  47.31  47.31 
 Michiga  n  Saginaw  44.52  44.52  44.52  44.52  44.52  44.52  44.52  44.52  44.52  47.31  47.31  Minnesot  a  Detroit  Lakes  49.50  49.50  47.93  51.01  51.01  51.01  51.01  51.01  51.01  54.12  54.12 
 Minnesot  a  Minneapolis  49.50  49.50  48.15  51.25  51.25  51.25  51.25  51.25  51.25  54.60  54.60  Mississipp  i  Pascagoula  71.69  71.69  71.69  71.69  71.69  71.69  71.69  71.69  71.69  76.38  76.38 
 Missouri  Kansas  Cit  y  70.78  61.44  61.44  61.50  61.63  61.13  59.69  60.37  60.83  70.95  70.95  Missouri  Mexico  68.55  59.70  59.70  59.96  60.80  59.96  59.41  58.96  59.49  67.09  67.09 
 Missouri  St.  Louis  70.78  61.63  61.63  61.63  59.96  61.98  61.46  62.13  62.59  71.21  71.21  Montana  Butte  61.40  61.40  61.40  61.40  61.40  61.40  61.25  61.25  61.25  61.25  61.25 
 Nebraska  Grand  Islan  d  49.05  49.05  49.13  49.13  49.13  51.02  50.83  51.05  51.05  57.56  56.50  New  Jerse  y  Phillipsburg  79.50  79.50  80.27  80.27  80.27  80.27  85.09  85.09  87.50  94.73  94.73 


 Table  1.12 
 Connection  Charges  for  a  Single  Business  Line  in  the  Sample  Cities  1 
 (As  of  October  15  ) 
29
 State  City  1994199519961997199819992001200220032004  2  2005  3 
 New  Mexico  Alamogordo  57.46  57.47  57.29  57.29  57.29  57.29  57.53  57.57  57.57  61.45  62.15  New  Yor  kBinghamton  120.48  120.92  120.68  120.46  122.51  120.34  118.64  117.72  120.90  138.14  137.61 


 New  Yor  kBuffalo  123.65  123.08  122.85  122.62  123.00  122.51  120.64  117.82  121.00  159.81  142.37  New  Yor  kMassena  120.77  120.20  119.98  119.75  123.10  119.64  128.76  116.76  119.94  134.96  135.49 
 New  Yor  kNew  Yor  k124.53  123.95  123.45  123.22  120.34  123.10  120.45  118.09  121.27  143.06  142.79  New  Yor  kOgdensburg  124.17  123.58  123.35  123.12  119.64  123.00  121.15  119.94  123.12  142.38  141.85 
 New  Yor  kRochester  57.16  55.56  55.56  55.56  57.27  57.27  56.48  54.96  54.96  50.89  50.89  North  Carolina  Raleig  h  64.38  64.38  64.38  66.95  66.95  66.95  66.95  68.90  68.90  72.80  74.10 
 North  Carolina  Rockingham  64.38  64.38  64.38  66.95  66.95  66.95  66.95  68.90  68.90  72.80  74.10  Ohio  Canton  72.15  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85 
 Ohio  Cincinnati  55.78  55.78  55.78  55.78  49.75  49.75  49.75  49.75  49.75  49.75  49.75  Ohio  Clevelan  d  72.15  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85 
 Ohio  Columbus  72.15  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  Ohio  Toledo  72.15  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85  62.85 
 Oregon  Corvallis  31.00  31.00  31.93  31.93  31.93  31.93  32.86  33.60  33.64  36.58  31.00  Oregon  Portland  31.00  31.00  31.00  31.93  31.93  31.93  32.86  33.64  33.64  36.58  36.58 
 Pennsylvania  Allentown  79.50  79.50  79.50  79.50  79.50  79.50  79.50  79.50  81.75  88.50  88.50  Pennsylvania  Ellwood  City  79.50  79.50  79.50  79.50  79.50  79.50  79.50  79.50  81.75  88.50  88.50 
 Pennsylvania  Johnstown  60.44  60.44  60.44  60.44  60.44  60.44  60.44  78.43  62.24  67.38  67.38  Pennsylvania  New  Castle  79.50  79.50  79.50  79.50  79.50  79.50  79.50  79.50  81.75  88.50  88.50 
 Pennsylvania  Philadelphia  79.50  79.50  79.50  79.50  79.50  79.50  79.50  79.50  82.50  90.00  90.00  Pennsylvania  Pittsburgh  79.50  79.50  79.50  79.50  79.50  79.50  79.50  79.50  82.50  90.00  90.00 
 Pennsylvania  Scranton  79.50  79.50  79.50  79.50  79.50  79.50  79.50  79.50  81.75  88.50  88.50  Rhode  Island  Providence  46.50  46.50  46.50  46.50  47.73  47.73  47.73  47.73  49.12  53.53  53.53 
 South  Carolina  Beaufort  35.60  35.60  35.60  35.60  35.60  35.60  35.60  35.60  35.60  35.60  35.60  Tennessee  Memphis  66.80  66.80  67.12  67.12  63.62  66.82  66.65  67.33  67.64  70.24  69.62 
 Tennessee  Nashville  63.62  63.62  63.62  63.62  68.37  63.33  63.33  63.47  64.06  69.62  69.62  Texas  Brownsville  64.57  69.00  69.00  68.99  69.45  69.45  69.45  62.22  62.22  66.76  66.76 
 Texas  Corpus  Christi  69.45  69.29  69.34  70.72  64.27  64.35  64.35  62.00  62.00  66.62  66.62  Texas  Dallas  70.91  70.91  70.61  68.82  64.57  70.80  70.80  62.22  62.22  66.76  66.92 
 Texas  Fort  Worth  70.09  70.21  69.75  67.87  70.28  70.87  70.87  62.22  62.22  66.18  66.18  Texas  Houston  70.89  70.93  69.18  70.32  71.20  64.57  64.57  62.22  62.22  65.60  65.60 
 Texas  San  Antonio  69.45  69.34  68.78  68.78  70.72  64.27  64.27  62.00  62.00  65.60  65.60  Utah  Loga  n  53.06  53.06  53.06  53.00  53.00  53.66  53.30  53.36  53.36  61.56  61.56 
 Virginia  Richmon  d  64.00  64.00  64.00  64.00  64.00  64.00  64.00  64.00  84.42  101.12  101.12  Virginia  Smithfiel  d  29.25  29.25  29.25  29.25  29.25  40.00  40.00  40.00  47.20  54.40  54.40 
 Washington  Everett  57.19  57.19  70.67  70.67  70.67  70.67  70.67  70.67  75.85  86.20  86.60  Washington  Seattle  55.25  55.25  55.25  55.45  55.45  55.45  55.29  55.55  55.55  63.10  63.10 
 West  Virgini  a  Huntington  96.90  96.90  96.90  96.90  79.00  79.00  79.00  79.00  82.97  86.90  86.90  Wisconsin  Milwauke  e  68.21  68.21  68.27  68.27  67.95  68.27  68.27  68.27  68.27  64.65  64.65 
 Wisconsin  Racine  68.21  67.88  67.95  67.95  72.60  67.95  67.95  67.95  67.95  64.65  64.65 
 1  Charges  include  touch-  tone  charges,  surcharges,  and  taxes. 


 2  Revised  figures. 


 3  Subject  to  revisision. 


 Connection  Charges  for  a  Single  Business  Line  in  the  Sample  Cities  -  Continued  1  (As  of  October  15  ) 
 Table  1.12 
30
 a.  Maximum  Charge  35.16  $ 
 b.  Minimum  Charge  16.01  $ 
 c.  Representative  Monthly  Charge  $24.74  (Weighted  Average) 


 d.  Weighted  Standard  Deviation  (Std  Dev)  $4.92 
 e.  Average  +  2*(  Std  Dev)  (  =  c  +  2d)  $34.58 
 f.  Percent  to  Average  (  =  [e/  c]  *  100)  140% 


 Table  1.13 
 (as  of  October  15,  2005)  Standard  Deviation  Analysis  of  Residential  Rates  in  the  Sample  Cities 
31
 1993 
 1994 
 1995 
 1996 
 1997 
 1998 
 1999 
 2000 
 2001 
 2002 
 2003 


 2004 
 1 


 2005 
 2 


 Maximum 
 Rate 


 $32.68 
 $31.63 
 $30.62 
 $28.65 
 $28.78 
 $28.27 
 $28.75 
 $29.72 
 $34.75 


 $34.95 
 $35.56 


 $35.35 
 $35.16 


 Minimum 
 Rate 


 $12.18 
 $12.18 
 $13.04 
 $13.04 
 $13.05 
 $13.05 
 $13.05 
 $13.21 
 $15.31 
 $15.93 
 $16.30 


 $16.03 
 $16.01 


 Representative 
 Monthly 
 Rate 


 (Average) 


 $19.95 
 $19.81 


 $20.01 


 $19.95 
 $19.88 


 $19.76 
 $19.93 
 $20.78 


 $22.62 


 $24.07 
 $24.65 


 $24.52 
 $24.74 


 Weighted 
 Standard 
 Deviation 


 (Std 


 Dev) 


 $4.23 
 $4.28 
 $3.41 
 $3.28 
 $3.35 
 $3.24 
 $3.46 
 $3.57 
 $4.20 


 $4.32 
 $4.90 
 $4.93 
 $4.92 


 Average 
 + 
 2*(  Std 


 Dev) 


 $28.41 
 $28.38 
 $26.84 
 $26.51 
 $26.58 
 $26.24 
 $26.85 
 $27.92 
 $31.01 
 $32.71 
 $34.45 
 $34.38 
 $34.58 


 Percentage 
 to 
 Average 


 142% 
 143% 
 134% 
 133% 
 134% 
 133% 
 135% 
 134% 
 137% 
 136% 
 140% 
 140% 
 140% 


 Average 
 + 
 3*(  Std 


 Dev) 


 $32.65 
 $32.66 
 $30.25 
 $29.78 
 $29.93 
 $29.47 
 $30.31 
 $31.49 
 $35.21 
 $37.03 
 $39.35 
 $39.31 
 $39.50 


 Percentage 
 to 
 Average 


 164% 
 165% 
 151% 
 149% 
 151% 
 149% 
 152% 
 152% 
 156% 
 154% 
 160% 
 160% 
 160% 


 1 
 Revised 


 figures. 


 2 
 Subject 


 to 
 revision. 


 Table 
 1.14 


 Historical 
 Standard 
 Deviation 
 Analysis 
 of 
 Residential 


 Rates 
 in 
 the 
 Sample 


 Cities 


 (As 
 of 
 October 


 15) 
32
 Table  1.15 
 Average  Revenue  per  Minute  for  Interstate  Toll  Service  Calls 


 Year 
 1992  $0.15  1993  0.15 
 1994  0.14  1995  0.12 
 1996  0.12  1997  0.11 
 1998  0.11  1999  0.11 
 2000  0.09  2001  0.08 
 2002  0.07  2003  0.07 
 2004  0.06 
 Source:  Industry  Analysis  and  Technology  Division  of  the  Wireline  Competition  Burea  u  Telecommunications  Industry  Revenues  (March  31,  2006) 


 Revenue  per  Minute 
33
 II-  1 
 II.  Ex  penditures  on  Telephone  Serv  ice 
 A.  Residential  Expenditures 
 The  Bureau  of  Labor  Statistics  (BLS)  conducts  surveys  of  consumer  expenditures,  in  part,  to  develop  weights  for  the  consumer  price  indices.  The  surveys  collect  income, 
 expenditure,  and  demographic  information  for  c  onsumer  units.  Cons  umer  units  are  often  referred  to  as  households,  but  the  definition  is  not  identical  to  households,  as  defined  by  the 
 Census  Bureau.  1  For  instance,  there  were  approximately  110  million  consumer  units  in  2001,  compared  with  approximately  107.7  million  households.  BLS  uses  two  types  of 
 surveys:  diary  surveys,  where  household  members  record  most  types  of  purchases  for  a  few  week  s;  and  interview  surveys,  where  households  are  interviewed  to  determine  their 
 expenditures  for  the  prior  three  months.  Households  selected  for  the  interview  survey  are  interviewed  in  five  successive  quarters.  Tabl  es  2.1  through  2.5  present  the  annual  average 
 total  expenditures  and  telephone  expenditures  by  various  demographic  classifications. 
 Prior  to  1984,  BLS  published  separate  ex  penditure  estimates  based  on  the  diary  and  the  interview  surveys.  At  that  time,  telephone  expenditures  were  collected  only  through  the 
 interview  surveys,  and  average  levels  of  telephone  expenditures  were  published  only  in  the  interview  summaries.  BLS  began  publishing  integrated  estimates  in  1984,  combining 
 information  from  both  types  of  surveys. 
 Expenditure  data  were  not  collected  for  rural  households  for  1980  through  1983.  Nationwide  expenditure  data  are  available  for  1984  through  2004.  Ac  cording  to  BLS,  more 
 than  85  percent  of  households  are  in  urban  areas,  and  the  estimates  of  telephone  expenditures  by  urban  households  are  similar  to  estimates  for  nationwide  average  telephone 
 expenditures.  Nonetheless,  19  80  through  1983  data  are  not  completely  comparable  with  subsequent  data. 


 Several  changes  in  the  telephone  industry  make  it  difficult  to  interpret  changes  in  the  BLS  estimates  of  household  expenditures  for  telephone  service.  Prior  to  1983,  most 
 residential  telephones  were  leased  from  local  exchange  carriers.  As  a  consequence  of  the  FCC's  Computer  Inquiry  II  procee  ding,  telephone  sets  were  detariffed  on  January  1,  1984. 
 Existing  tariffed  equipment  became  known  as  "  embedded  rate  base"  and  much  of  this  equipment  was  sold  in  place  to  consumers.  Significant  amounts  of  equipment  purchases 
 were  included  on  local  telephone  bills  in  1983  and  1984.  Telep  hone  bills  have  not  included  significant  amounts  of  equipment  sales  si  nce  that  time.  The  remaining  Bell  System 
 embedded  rate  base  was  transferred  to  AT&  T  in  1984,  but  the  lease  payments  were  included  in  local  telephone  bills  into  1987. 


 The  BLS  has  changed  the  consumer  expenditure  survey  questio  nnaires  to  reflect  changes  in  the  equipment  mark  et.  Beginning  in  1982,  the  survey  specifically  included 
 telephones  and  accessories  in  its  list  of  home  furnishings  and  related  household  items.  Amounts  appearing  on  the  telephone  bills,  however,  were  included  as  telephone  service 
 until  1986.  Thus,  the  1983  and  1984  estimate  s  include  the  sale  of  the  embedded  base.  The  current  questionnaire  separates  equipment  sales  from  other  item  s  that  appear  on  telephone 
 bills.  The  questionnaire  does  not  specifically  address  payments  for  leasing  telephone  equipment,  commonly  known  as  customer  premises  equipment  (CPE).  CPE  lease  payments 
 may  still  be  reported  as  telephone  service  expenditures. 
 1  We  also  refer  to  consumer  units  as  households. 
34
 II-  2 
 The  consumer  expenditure  survey  continues  to  classify  payments  for  inside  wiring  maintenance  as  part  of  telephone  service.  This  probably  accounts  for  between  $10  to  $20  of 
 average  annual  household  telephone  expenditures.  Beginning  in  1991,  consumers  have  been  asked  to  separately  id  entify  cellular  telephone  payments.  The  BLS  has  not  yet 
 published  a  separate  estimate  for  cellular  telephone  expenditures,  but  instead  continues  to  include  these  with  other  telephone  expenditures. 


 Table  2.6  presents  estimates  of  annual  household  telecommunications  expenditure  by  the  type  of  service  provider.  This  table  is  derived  from  Bill  Harvesting  data  collected 
 by  TNS  Telecoms,  which  provides  information  on  actual  usage  in  the  residential  telecom  market  as  collected  from  th  e  actual  telecommunications  bills  of  households.  TNS 
 Telecoms,  a  telecommunications  market  information  firm  ,  conducts  nationwide  surveys  and  Bill  Harvesting  on  a  quarter  ly  basis  from  over  120,000  households  each  year.  The 
 company  has  donated  databases  to  the  Commission  containing  information  on  residential  phone  usage. 


 B.  Business  Expenditures 
 One  of  the  few  sources  of  information  on  expenditures  for  telecommunications  services  by  businesses  is  contained  in  the  input-  output  (I-  O)  accounts  of  the  U.  S.  economy 
 as  published  by  the  U.  S.  Bure  au  of  Economic  Analysis  (BEA).  Th  e  BEA  I-  O  accounts  show  how  industries  provide  input  to,  and  use  output  from,  each  account  to  produce 
 estimates  of  Gross  Dome  stic  Product  (GDP).  Note  that  the  BEAs  I-  O  accounts  data  were  once  based  on  Standard  Industrial  Classification  (SIC)  industry  definitions  and  released 
 only  once  every  five  years  in  accordance  with  the  U.  S.  Census  Bureaus  economic  censuses.  2  The  U.  S.  Census  Bureau  has  since  re  placed  SIC  industries  with  those  defined 
 according  to  the  1997  North  American  Indust  ry  Classification  System  (N  AICS).  In  accordance  with  this  change,  the  BEA  now  releases  I-  O  accounts  data  on  an  annual  basis  for 
 NAICS  industries.  Detailed  definitions  of  NAICS  indu  stries  are  available  at  www.  census.  gov/  epcd/  www/  naicstab.  htm. 


 Table  2.7  shows  the  most  recent  I-  O  account  of  the  use  of  broadcast  and  communications  by  U.  S.  industry.  Table  2.  8  presents  the  most  recent  account  of  the 
 commodities  used  by  the  U.  S.  br  oadcast  and  communications  industry.  The  underlying  data  presented  in  these  tables  are  available  at: 
 http://  www.  bea.  g  ov/  bea/  pn/  Annual_  IOMakeUse.  XLS  . 


 C.  Additional  Sources  of  Information  on  Expenditures  for  Telephone  Service 
 Additional  information  from  the  Consumer  Expenditure  Survey  is  available  from  the  Bureau  of  Labor  Statistics  at  www.  bls.  gov/  cex/. 


 TNS  Telecoms  has  donated  databases  to  the  Commission  containing  information  on  residential  phone  usage  collected  from  actual  consumer  telecommunications  bills. 
 TNS  Telecoms  has  granted  the  Commission  permission  to  use  these  databases  for  industry  research  purposes  and  to  publish  the  industry  level  results.  TN  S  Telecoms  has 


 2  See,  e.  g.  ,  Tables  2.  7  and  2.8  of  the  2005  edition  of  the  Reference  Book. 
35
 II-  3 
 been  monitoring  the  telecommunications  market  since  1995  through  both  the  ReQuest  consumer  survey  and  Bill  Harvesting  in  th  e  residential  market  and  the  BusinessWave 
 business  survey  in  the  business  market.  Ta  ble  2.6  comes  from  these  databases.  For  additional  information  visit  www.  tnstelecoms.  com  or  contact  them  at  1-  866-  811-  TN  ST 
 or  by  e-  mail  at  contact@  tnstelecoms.  com.  Their  address  is  101  Greenwood  Ave,  Suite  502,  Jenkintown,  PA  19046. 


 Additional  information  on  the  input-  output  accounts  of  the  U.  S.  economy  is  available  from  the  Bureau  of  Economic  Analysis  at  www.  bea.  gov  on  the  Internet. 


 Concordance  between  I-  O  industry  code  s  and  1987  SIC  codes  can  be  found  in  Appendix  A  of  Benchmark  Input-  Output  Accounts  for  the  U.  S.  Economy,  1997  in  Survey 
 of  Current  Business  ,  November,  1997.  Information  c  oncerning  the  conversion  from  1987  SIC  codes  to  NAICS  codes  can  be  found  at  www.  census.  gov/  epcd/  naics02/  . 


 The  Bureau  of  the  Census  publishes  the  Service  Annual  Survey  that  also  provides  some  estimates  of  household  and  business  expenditures  on  telephone  service.  This 
 information  can  be  found  at  www.  census.  gov  on  the  Internet. 
36
 All  Urban  Rural  Households  Households  Households  Northeast  Midwest  South  West 
 1980  $16,723  $16,723  $17,222  $16,024  $16,188  $17,962  1981  17,558  17,558  17,053  17,324  17,086  19,275 
 1982  18,071  18,071  16,980  18,143  17,820  19,710  1983  19,692  19,692  19,077  19,580  19,074  21,538 
 1984  21,975  22,729  $18,217  21,593  21,167  21,587  24,238  1985  23,490  24,129  20,257  22,808  22,664  23,180  25,961 
 1986  23,866  24,571  19,677  24,905  22,706  22,545  26,476  1987  24,414  25,063  20,513  25,079  23,021  23,292  27,309 
 1988  25,892  26,617  21,380  26,348  24,753  24,671  28,830  1989  27,809  28,584  23,106  28,241  26,062  26,232  32,144 
 1990  28,369  28,989  24,499  28,369  25,919  27,011  32,445  1991  29,614  30,382  24,785  31,026  27,675  28,062  33,131 
 1992  29,846  30,569  25,347  31,177  28,445  27,750  33,647  1993  30,692  31,431  26,296  31,634  28,884  29,247  34,348 
 1994  31,731  32,233  28,668  32,549  30,331  30,072  35,318  1995  32,264  33,101  27,160  33,009  31,909  30,289  35,206 
 1996  33,797  34,502  28,853  34,163  33,025  32,871  35,795  1997  34,819  35,614  29,353  36,070  33,791  32,226  39,037 
 1998  35,535  36,349  29,813  37,535  34,513  32,958  38,938  1999  37,027  37,905  30,831  38,446  36,337  33,328  42,364 
 2000  38,045  38,942  31,831  38,902  39,213  34,707  41,328  2001  39,518  40,355  33,681  41,169  39,548  36,285  43,261 
 2002  40,677  41,600  34,067  42,390  40,601  37,281  44,728  2003  40,817  41,619  35,157  42,162  40,280  37,625  45,381 
 2004  43,395  44,172  38,088  46,115  43,371  39,174  47,922 


 1980  $325  $325  $335  $303  $339  $320  1981  360  360  358  353  365  366 
 1982  375  375  351  364  372  426  1983  415  415  410  393  435  419 
 1984  435  450  359  433  407  445  458  1985  455  466  402  459  419  457  500 
 1986  471  478  425  470  444  477  494  1987  499  503  475  501  464  505  532 
 1988  537  544  493  524  498  545  585  1989  567  577  505  570  532  572  601 
 1990  592  599  549  589  547  616  611  1991  618  621  601  621  595  616  647 
 1992  623  629  580  636  589  624  646  1993  658  666  606  677  616  673  664 
 1994  690  698  642  700  663  690  713  1995  708  720  633  717  706  714  691 
 1996  772  779  726  763  753  796  764  1997  809  814  773  785  778  839  817 
 1998  830  834  801  814  801  858  828  1999  849  854  812  846  858  862  822 
 2000  877  889  790  856  884  891  864  2001  914  927  825  897  914  924  914 
 2002  957  972  851  952  934  987  936  2003  956  967  875  932  917  1002  941 
 2004  990  1000  923  988  946  1031  971 


 1980  1.94%  1.94%  1.95%  1.89%  2.09%  1.78%  1981  2.05  2.05  2.10  2.04  2.14  1.90 
 1982  2.08  2.08  2.07  2.01  2.09  2.16  1983  2.11  2.11  2.15  2.01  2.28  1.95 
 1984  1.98  1.98  1.97%  2.01  1.92  2.06  1.89  1985  1.94  1.93  1.98  2.01  1.85  1.97  1.93 
 1986  1.97  1.95  2.16  1.89  1.96  2.12  1.87  1987  2.04  2.01  2.32  2.02  2.02  2.17  1.95 
 1988  2.07  2.04  2.31  1.99  2.01  2.21  2.03  1989  2.04  2.02  2.19  2.02  2.04  2.18  1.87 
 1990  2.09  2.07  2.24  2.08  2.11  2.28  1.88  1991  2.09  2.04  2.42  2.01  2.15  2.20  1.95 
 1992  2.09  2.06  2.29  2.04  2.07  2.25  1.92  1993  2.14  2.12  2.30  2.14  2.13  2.30  1.93 
 1994  2.17  2.16  2.24  2.15  2.18  2.30  2.02  1995  2.19  2.18  2.33  2.17  2.21  2.36  1.96 
 1996  2.28  2.26  2.52  2.23  2.28  2.28  2.13  1997  2.32  2.26  2.77  2.18  2.30  2.60  2.09 
 1998  2.34  2.29  2.69  2.17  2.32  2.60  2.13  1999  2.29  2.25  2.63  2.20  2.36  2.59  1.94 
 2000  2.31  2.28  2.48  2.20  2.25  2.57  2.09  2001  2.31  2.30  2.45  2.18  2.31  2.55  2.11 
 2002  2.35  2.34  2.50  2.25  2.30  2.65  2.09  2003  2.34  2.32  2.49  2.21  2.28  2.66  2.07 
 2004  2.28  2.26  2.42  2.14  2.18  2.63  2.03 


 Total  Household  Ex  penditures 
 Household  Expenditure  for  Telephone  Service 
 Expenditures  on  Telephone  Service  as  a  Percentage  of  Total  Household  Expenditures 


 Table  2.1  Average  Annual  Household  Expenditures 
 by  Household  Location  Census  Region 
37
 White  &  Other  Black  His  panic  Non-  His  panic 
 1980  $17,335  $12,016  1981  18,169  12,856 


 1982  18,693  13,229  1983  20,567  12,878 
 1984  22,847  14,631  1985  24,399  15,979 
 1986  24,806  16,203  1987  25,376  16,324 
 1988  27,004  16,670  1989  28,944  18,343 
 1990  29,547  19,130  1991  30,794  20,091 
 1992  31,158  19,695  1993  31,967  20,684 
 1994  32,614  22,413  $26,433  $32,165  1995  33,737  23,739  26,744  32,729 
 1996  34,994  24,926  27,868  34,338  1997  36,076  25,509  29,333  35,325 
 1998  36,848  25,796  30,013  36,044  1999  38,354  27,374  33,105  37,385 
 2000  39,406  28,152  32,735  38,549  2001  40,968  28,903  34,361  40,009 
 2002  42,135  30,136  34,742  41,295  2003  42,451  28,708  34,575  41,521 
 2004  45,135  30,481  37,578  44,084 


 1980  $321  $356  1981  359  370 
 1982  368  432  1983  411  448 
 1984  432  462  1985  454  463 
 1986  470  478  1987  498  506 
 1988  537  536  1989  563  603 
 1990  588  624  1991  613  657 
 1992  619  647  1993  650  719 
 1994  681  756  $793  $681  1995  698  782  796  700 
 1996  757  887  870  763  1997  791  945  833  807 
 1998  818  915  811  831  1999  837  934  872  847 
 2000  862  986  889  876  2001  899  1,024  917  914 
 2002  944  1,050  1,021  950  2003  946  1,027  968  954 
 2004  986  1,025  1,031  985 


 1980  1.85%  2.96%  1981  1.98  2.88 
 1982  1.97  3.27  1983  2.00  3.48 
 1984  1.89  3.16  1985  1.86  2.90 
 1986  1.89  2.95  1987  1.96  3.10 
 1988  1.99  3.22  1989  1.95  3.29 
 1990  1.99  3.26  1991  1.99  3.27 
 1992  1.99  3.29  1993  2.03  3.48 
 1994  2.07  3.37  3.00%  2.12%  1995  2.09  3.29  2.98  2.14 
 1996  2.16  3.56  3.12  2.22  1997  2.19  3.70  2.84  2.28 
 1998  2.22  3.55  2.70  2.31  1999  2.18  3.41  2.63  2.27 
 2000  2.19  3.50  2.72  2.27  2001  2.19  3.54  2.67  2.28 
 2002  2.24  3.48  2.94  2.30  2003  2.23  3.58  2.80  2.30 
 2004  2.18  3.36  2.74  2.23 


 Household  Ex  penditure  for  Tele  phone  Service 
 Expenditures  on  Telephone  Service  as  Percentage  of  Total  Household  Expenditure  s 


 Table  2.2  Avera  ge  Annual  Household  Ex  penditure  s 
 by  Race  and  National  Origin  By  Race  By  National  Origin 
38
 1  234  5 
 1980  $7,746  $11,452  $15,370  $20,143  $29,717  1981  7,945  11,688  16,099  21,280  31,404 
 1982  8,080  11,788  16,200  21,444  33,311  1983  8,557  12,504  17,239  23,359  36,936 
 1984  10,894  14,337  19,469  26,138  41,825  1985  11,417  15,092  20,374  27,760  45,156 
 1986  11,477  14,639  21,088  28,698  46,242  1987  10,355  15,686  21,708  29,603  46,470 
 1988  10,893  16,880  23,290  32,084  48,718  1989  12,119  17,616  24,476  34,231  53,093 
 1990  12,908  17,924  24,673  34,247  55,411  1991  13,464  18,986  26,144  36,151  57,597 
 1992  12,643  19,257  26,573  36,094  57,981  1993  13,957  19,712  26,603  37,299  59,521 
 1994  14,356  20,891  28,513  39,033  60,803  1995  14,607  22,126  29,125  39,395  62,639 
 1996  15,896  22,799  30,402  41,965  66,794  1997  16,008  23,558  31,447  42,846  66,800 
 1998  16,630  23,709  31,400  43,811  70,648  1999  16,766  24,850  33,078  46,015  75,080 
 2000  17,940  26,550  34,716  46,794  75,102  2001  18,883  26,492  35,660  48,772  77,125 
 2002  19,061  27,140  36,881  50,432  79,199  2003  18,492  26,729  36,213  50,468  81,731 
 2004  17,837  27,410  36,980  50,974  83,710 


 1980  $202  $266  $335  $365  $450  1981  235  294  361  415  487 
 1982  257  314  354  423  506  1983  268  353  386  472  571 
 1984  295  350  430  476  630  1985  311  363  449  503  628 
 1986  337  383  453  526  662  1987  335  403  501  547  670 
 1988  352  441  538  585  727  1989  370  459  564  644  757 
 1990  402  496  585  647  818  1991  415  532  596  665  834 
 1992  424  533  621  677  844  1993  457  532  652  731  911 
 1994  455  591  672  761  963  1995  491  599  703  785  968 
 1996  513  641  750  892  1,100  1997  530  671  794  909  1,142 
 1998  527  661  801  947  1,194  1999  559  671  825  975  1,227 
 2000  575  705  860  1,004  1,305  2001  558  727  906  1,054  1,343 
 2002  584  741  928  1,150  1,433  2003  564  768  932  1,142  1,441 
 2004  562  787  956  1,185  1,460 


 1980  2.61%  2.32%  2.18%  1.81%  1.51%  1981  2.96  2.52  2.24  1.95  1.55 
 1982  3.18  2.66  2.19  1.97  1.52  1983  3.13  2.82  2.24  2.02  1.55 
 1984  2.71  2.44  2.21  1.82  1.51  1985  2.72  2.41  2.20  1.81  1.39 
 1986  2.94  2.62  2.15  1.83  1.43  1987  3.24  2.57  2.31  1.85  1.44 
 1988  3.23  2.61  2.31  1.82  1.49  1989  3.05  2.61  2.30  1.88  1.43 
 1990  3.11  2.77  2.37  1.89  1.48  1991  3.08  2.80  2.28  1.84  1.45 
 1992  3.35  2.77  2.34  1.88  1.46  1993  3.27  2.70  2.45  1.96  1.53 
 1994  3.17  2.83  2.36  1.95  1.58  1995  3.38  2.71  2.41  1.99  1.55 
 1996  3.20  2.94  2.46  2.05  1.57  1997  3.24  3.02  2.53  2.09  1.63 
 1998  3.17  2.79  2.55  2.16  1.69  1999  3.33  2.70  2.49  2.12  1.63 
 2000  3.21  2.66  2.48  2.15  1.74  2001  2.96  2.74  2.54  2.16  1.74 
 2002  3.06  2.73  2.52  2.28  1.81  2003  3.05  2.87  2.57  2.26  1.76 
 2004  3.15  2.87  2.59  2.32  1.74 


 Total  Household  Expenditure  s 
 Household  Expenditures  for  Telephone  Service 
 Expenditures  on  Telephone  Service  as  a  Percentage  of  Total  Household  Expenditures 


 Table  2.3  Avera  ge  Annual  Household  Ex  penditures 
 by  Household  Income  Households  Grouped  by  Total  Income  from  Lowest  to  Highest  Quintile 
39
 Under  25  25-  34  35-  44  45-  54  55-  64  65-  74  Over  75 
 1980  $10,903  $17,452  $21,235  $22,517  $17,535  1981  11,309  18,503  22,890  23,385  17,418 


 1982  11,368  18,814  23,309  23,539  18,449  1983  11,855  19,708  25,230  25,896  20,585 
 1984  13,461  22,294  28,214  28,696  23,401  $15,842  $11,122  1985  13,763  23,349  29,604  30,946  24,766  17,938  13,012 
 1986  14,142  23,931  31,219  32,218  24,808  17,506  12,198  1987  14,368  24,177  31,473  31,708  25,707  18,888  12,230 
 1988  16,373  25,770  33,077  33,205  25,765  20,120  13,339  1989  16,577  26,683  35,589  36,073  26,617  21,152  15,919 
 1990  16,525  28,117  35,594  37,012  29,263  20,901  15,450  1991  16,745  29,280  36,446  38,137  31,945  22,564  15,782 
 1992  17,258  29,554  37,196  37,427  31,704  22,862  17,794  1993  17,468  28,594  37,429  41,020  32,973  23,706  18,350 
 1994  18,417  30,468  37,565  41,420  33,682  25,059  19,280  1995  18,425  31,493  38,397  42,179  32,626  25,277  18,572 
 1996  18,384  33,020  39,944  42,722  36,132  27,739  19,603  1997  18,450  34,902  40,413  45,239  35,954  27,792  20,279 
 1998  19,436  34,779  42,154  45,475  37,329  27,830  20,987  1999  21,704  36,158  42,792  46,511  39,394  29,864  22,884 
 2000  22,543  38,945  45,149  46,160  39,340  30,782  21,908  2001  23,526  39,451  46,908  47,930  41,462  32,023  23,099 
 2002  24,229  40,318  48,330  48,748  44,330  32,243  23,759  2003  22,396  40,525  47,175  50,101  44,191  33,629  25,016 
 2004  24,535  42,701  50,402  52,764  47,299  36,512  25,763 


 1980  $248  $343  $401  $415  $319  1981  275  377  433  458  364 
 1982  266  389  436  484  391  1983  275  439  472  535  421 
 1984  292  450  541  558  451  $341  $266  1985  323  449  535  576  473  377  298 
 1986  342  485  546  580  483  399  316  1987  381  504  586  607  521  401  328 
 1988  417  534  617  669  543  458  338  1989  396  583  640  719  567  486  360 
 1990  430  604  682  750  590  476  376  1991  471  629  684  803  641  487  376 
 1992  469  648  698  753  652  502  421  1993  512  687  734  782  707  520  441 
 1994  570  726  766  819  697  551  445  1995  541  744  777  859  723  577  443 
 1996  537  838  856  925  814  618  459  1997  550  893  921  952  842  627  458 
 1998  560  888  947  993  835  679  494  1999  562  924  950  1008  869  711  506 
 2000  589  950  1,018  1,007  909  720  511  2001  629  1,001  1,035  1,072  926  746  551 
 2002  641  1,032  1,096  1,109  981  794  579  2003  616  1,001  1,097  1,156  981  773  572 
 2004  642  1,028  1,045  1,178  1,040  815  579 


 1980  2.27%  1.97%  1.89%  1.84%  1.82%  1981  2.43  2.04  1.89  1.96  2.09 
 1982  2.34  2.07  1.87  2.06  2.12  1983  2.32  2.23  1.87  2.07  2.05 
 1984  2.17  2.02  1.92  1.94  1.93  2.15%  2.39%  1985  2.35  1.92  1.81  1.86  1.91  2.10  2.29 
 1986  2.42  2.03  1.75  1.80  1.95  2.28  2.59  1987  2.65  2.08  1.86  1.91  2.03  2.12  2.68 
 1988  2.55  2.07  1.87  2.01  2.11  2.28  2.53  1989  2.39  2.18  1.80  1.99  1.98  2.30  2.26 
 1990  2.60  2.15  1.92  2.03  2.02  2.28  2.43  1991  2.81  2.15  1.88  2.11  2.01  2.16  2.38 
 1992  2.72  2.19  1.88  2.01  2.06  2.20  2.37  1993  2.93  2.40  1.96  1.91  2.14  2.19  2.40 
 1994  3.09  2.38  2.04  1.98  2.07  2.20  2.31  1995  2.94  2.36  2.02  2.04  2.22  2.28  2.39 
 1996  2.92  2.54  2.14  2.17  2.25  2.23  2.34  1997  2.98  2.56  2.28  2.10  2.34  2.26  2.26 
 1998  2.88  2.55  2.25  2.18  2.24  2.44  2.35  1999  2.59  2.56  2.22  2.17  2.21  2.38  2.21 
 2000  2.61  2.44  2.25  2.18  2.31  2.34  2.33  2001  2.67  2.54  2.21  2.24  2.23  2.33  2.39 
 2002  2.65  2.56  2.27  2.27  2.21  2.46  2.44  2003  2.75  2.47  2.33  2.31  2.22  2.30  2.29 
 2004  2.62  2.41  2.07  2.23  2.20  2.23  2.25 


 Household  Expenditures  for  Telephone  Service 
 Expenditures  on  Telephone  Service  as  a  Percentage  of  Total  Household  Expenditures 


 Table  2.4  Average  Annual  Household  Expenditures 
 by  Age  of  the  Head  of  the  Household  By  Age  of  the  Head  of  the  Househol  d 
40
 1  2  3  4Over  4 
 1980  1981 
 1982  1983 
 1984  $12,994  $21,515  $26,653  $28,403  1985  13,954  23,442  28,317  31,408 
 1986  13,733  24,675  28,050  32,232  1987  14,693  24,761  28,549  32,753 
 1988  15,671  26,350  30,446  34,455  $32,706  1989  16,814  28,622  32,643  35,803  35,871 
 1990  17,128  28,851  33,688  37,493  36,279  1991  17,569  30,648  34,389  38,806  38,269 
 1992  17,797  30,773  34,982  40,658  38,019  1993  17,999  31,603  35,416  42,397  39,981 
 1994  19,343  33,062  36,732  41,480  40,702  1995  19,389  33,100  37,838  42,819  41,561 
 1996  20,082  35,559  39,531  43,670  43,217  1997  20,923  36,617  40,926  45,225  43,929 
 1998  21,483  36,973  41,388  47,020  45,569  1999  22,404  38,895  42,885  49,119  47,581 
 2000  23,059  38,627  45,156  52,032  49,100  2001  23,507  40,359  45,508  54,395  53,805 
 2002  24,190  41,797  48,098  54,033  55,501  2003  23,657  43,693  47,406  55,201  52,565 
 2004  25,423  45,855  51,503  57,866  55,468 


 1980  1981 
 1982  1983 
 1984  $311  $420  $494  $515  1985  330  458  501  548 
 1986  347  470  539  563  1987  367  489  587  590 
 1988  409  527  601  626  $681  1989  423  564  633  650  739 
 1990  440  582  681  681  769  1991  449  617  693  722  808 
 1992  470  616  700  722  821  1993  472  656  740  803  854 
 1994  502  699  774  817  879  1995  506  714  815  839  894 
 1996  544  777  921  904  972  1997  583  789  954  995  1,016 
 1998  581  839  990  991  1,022  1999  592  847  994  1,050  1,094 
 2000  607  865  1,031  1,108  1,136  2001  620  905  1,091  1,166  1,194 
 2002  624  955  1,160  1,219  1,262  2003  623  965  1,161  1,227  1,229 
 2004  634  997  1,207  1,270  1,293 


 1980  1981 
 1982  1983 
 1984  2.39%  1.95%  1.85%  1.81%  1985  2.36  1.95  1.77  1.74 
 1986  2.53  1.90  1.92  1.75  1987  2.50  1.97  2.06  1.80 
 1988  2.61  2.00  1.97  1.82  2.08%  1989  2.52  1.97  1.94  1.82  2.06 
 1990  2.57  2.02  2.02  1.82  2.12  1991  2.56  2.01  2.02  1.86  2.11 
 1992  2.64  2.00  2.00  1.78  2.16  1993  2.62  2.08  2.09  1.89  2.14 
 1994  2.60  2.11  2.11  1.97  2.16  1995  2.61  2.16  2.15  1.96  2.15 
 1996  2.71  2.19  2.33  2.07  2.25  1997  2.79  2.15  2.33  2.20  2.31 
 1998  2.70  2.27  2.39  2.11  2.24  1999  2.64  2.18  2.32  2.14  2.30 
 2000  2.63  2.24  2.28  2.13  2.31  2001  2.64  2.24  2.40  2.14  2.22 
 2002  2.58  2.28  2.41  2.26  2.27  2003  2.63  2.21  2.45  2.22  2.34 
 2004  2.49  2.17  2.34  2.19  2.33 


 Total  Household  Expenditure  s 
 Household  Expenditures  for  Telephone  Service 


 Expenditures  on  Telephone  Service  as  a  Percentage  of  Total  Household  Expenditures 


 Table  2.5  Average  Annual  Household  Expenditures 
 by  Size  of  the  Household  By  Size  of  the  Househol  d 
41
 1995  $30  $21  $7  $51 
 1996  30  21  9  60  1997  32  25  11  68 


 1998  33  23  14  70 
 1999  34  72 
 2000  35  18  23  76 
 2001 
 2002 
 2003 
 2004 
 2005 


 37  10  41  88 


 Note:  These  data  are  average  annual  expenditures  based  on  sample  data  for  those  households  with  wireline  telephone  service.  These  data  do  not  reflect  average  annual 
 bills  .  For  example,  the  average  household  in  the  sample  spent  $41  per  month  for  wireless  service  in  2003.  This  average  was  calculated  by  simply  dividing  the  total  wireless 
 expenditures  of  households  in  the  sample  by  the  total  number  of  households  in  the  sample.  Of  course,  a  number  of  households  in  the  sample  did  not  take  wireless  service  in  2003  and 
 therefore  paid  nothing.  The  average  monthly  bill  for  wireless  service  for  2003  -  averaged  over  only  those  households  that  received  a  bill  -  was  therefore  much  higher,  about  $62.  In 
 addition,  these  data  are  only  representative  of  telecommunications  revenues  from  servicing  residential  end-  users,  and  do  not  reflect  any  revenues  received  from  servicing 
 business  customers  or  other  carriers  . 


 47 
 36 
 36  15 
 12  35 
 80 


 9  92 
 36  8  53  97 


 Average  Monthly  Household  Telecommunications  Expenditures  by  Type  of  Provider* 
 29 
 21 


 Table  2.6 
 Local  Exchange  Long  Distance  Carriers  Wireless  Carriers  Total  Expenditures 


 17 


 *  Excludes  households  in  Alaska  and  Hawaii. 
 83 
 36 


 Source:  Calculated  by  Industry  Analysis  and  Technology  Division  staff  using  survey  data  from  TNS  Telecoms  ReQuest  Market  Monitor  ,  Bill  Harvesting. 
42
 Communications  Purchases  of  Percent 
 of  Industry  Output  (%) 
 Communications  Purchases  by  Industry 
 as  a  Percent  of  Total  Communications 
 Commodities  (%) 
 111CA  Farms  250,230.7  952.0  0.38  0.17  113FF  Forestry,  fishing,  and  related  activities  69,750.1  19.4  0.03  0.00 
 211  Oil  and  gas  extractio  n  173,110.7  87.6  0.05  0.02  212  Mining,  except  oil  and  ga  s  54,598.8  44.2  0.08  0.01 
 213  Support  activities  for  mining  61,627.6  294.9  0.48  0.05  22  Utilitie  s  439,991.2  163.1  0.04  0.03 
 23  Construction  1,166,799.5  8,164.9  0.70  1.46  311FT  Food  and  beverage  and  tobacco  products  639,322.2  1,937.3  0.30  0.35 
 313TT  Textile  mills  and  textile  product  mill  71,495.1  185.5  0.26  0.03  315AL  Apparel  and  leather  and  allied  products  42,464.3  94.6  0.22  0.02 
 321  Wood  products  106,698.9  206.5  0.19  0.04  322  Paper  products  155,418.4  362.1  0.23  0.06 
 323  Printing  and  related  support  activities  68,883.7  505.0  0.73  0.09  324  Petroleum  and  coal  products  324,568.3  175.4  0.05  0.03 
 325  Chemical  products  519,460.4  1,136.0  0.22  0.20  326  Plastics  and  rubber  products  191,591.4  636.9  0.33  0.11 
 327  Nonmetallic  mineral  product  s  98,577.5  278.4  0.28  0.05  331  Primary  metals  174,729.2  192.0  0.11  0.03 
 332  Fabricated  metal  products  260,534.1  1,102.3  0.42  0.20  333  Machiner  y  277,545.9  2,432.6  0.88  0.43 
 334  Computer  and  electronic  products  387,241.3  3,046.2  0.79  0.54  335  Electrical  equipment,  appliances,  and  component  s  101,826.4  242.2  0.24  0.04 
 3361MV  Motor  vehicles,  bodies  and  trailers,  and  part  s  487,938.7  1,800.6  0.37  0.32  3364OT  Other  transportation  equipmen  t  173,337.4  524.9  0.30  0.09 
 337  Furniture  and  related  products  78,213.7  337.0  0.43  0.06  339  Miscellaneous  manufacturin  g  135,922.7  938.2  0.69  0.17 
 42  Wholesale  trade  1,011,981.6  12,550.6  1.24  2.24  44RT  Retail  trade  1,138,896.6  12,330.9  1.08  2.20 
 481  Air  transportation  127,807.5  1,179.8  0.92  0.21  482  Rail  transportation  47,285.2  62.6  0.13  0.01 
 483  Water  transportation  32,254.6  41.9  0.13  0.01  484  Truck  transportation  228,467.4  3,507.8  1.54  0.63 
 485  Transit  and  ground  passenger  transportation  37,835.7  185.6  0.49  0.03  486  Pipeline  transportation  32,978.7  179.2  0.54  0.03 
 487OS  Other  transportation  and  support  activities  109,798.0  1,712.1  1.56  0.31  493  Warehousing  and  storag  e  42,501.1  431.2  1.01  0.08 
 511  Publishing  industries  (includes  software  171,317.8  5,488.8  3.20  0.98  512  Motion  picture  and  sound  recording  industrie  s  98,311.6  649.6  0.66  0.12 
 513  Broadcasting  and  telecommunications  560,329.8  137,507.6  24.54  24.54  514  Information  and  data  processing  services  122,745.5  6,815.3  5.55  1.22 
 521CI  Federal  Reserve  banks,  credit  intermediation,  and  relate  d  569,489.1  3,232.8  0.57  0.58  523  Securities,  commodity  contracts,  and  investments  285,947.7  1,212.3  0.42  0.22 
 524  Insurance  carriers  and  related  activities  542,418.4  4,651.0  0.86  0.83  525  Funds,  trusts,  and  other  financial  vehicles  87,984.5  74.2  0.08  0.01 
 531  Real  estate  1,806,953.7  7,789.5  0.43  1.39  532RL  Rental  and  leasing  services  and  lessors  of  intangible  asset  299,340.3  3,104.6  1.04  0.55 
 5411  Legal  services  231,609.0  4,560.9  1.97  0.81  5412OP  Miscellaneous  professional,  scientific  and  technical  servic  e  1,011,462.4  21,664.0  2.14  3.87 
 5415  Computer  systems  design  and  related  services  248,485.4  2,840.7  1.14  0.51  55  Management  of  companies  and  enterprise  s  336,552.0  12,099.1  3.60  2.16 
 561  Administrative  and  support  services  493,259.7  9,619.1  1.95  1.72  562  Waste  management  and  remediation  services  64,537.4  642.7  1.00  0.11 
 61  Educational  services  231,735.0  2,773.0  1.20  0.49  621  Ambulatory  health  care  services  634,330.8  9,427.0  1.49  1.68 
 622HO  Hospitals  and  nursing  and  residential  care  faciliti  e  688,480.5  10,451.2  1.52  1.87  624  Social  assistance  119,573.3  1,940.3  1.62  0.35 
 711AS  Performing  arts,  spectator  sports,  museums,  and  related  activitie  s  75,603.5  491.5  0.65  0.09  713  Amusements,  gambling,  and  recreation  industrie  138,668.9  1,302.3  0.94  0.23 
 721  Accommodatio  n  112,424.0  2,567.2  2.28  0.46  722  Food  services  and  drinking  place  s  524,218.3  6,161.2  1.18  1.10 
 81  Other  services,  except  governmen  t  636,118.5  7,231.5  1.14  1.29  GFE  Federal  government  enterprise  s  72,552.2  664.1  0.92  0.12 
 GFG  Federal  general  governmen  t  727,351.0  11,456.4  1.58  2.04  GSLE  State  and  local  government  enterprise  s  55,736.5  1,390.4  2.49  0.25 
 GSLG  State  and  local  general  governmen  t  1,119,571.9  22,612.8  2.02  4.04 
 T001  Total  intermediate  use  9,611,760.9  358,462.6  3.73  F010  Personal  consumption  expenditures  8,214,295.9  190,487.7  2.32 
 F020  Private  fixed  investment  1,872,642.9  6,026.1  0.32  F030  Change  in  private  inventories  55,431.9  0.00 
 F040  Exports  of  goods  and  services  1,052,071.8  5,353.4  0.51  F050  Imports  of  goods  and  services  -1,676,076.8  0.00 
 F06C  National  defense:  Consumption  expenditure  s  484,217.0  0.00  F06I  National  defense:  Gross  investmen  t  68,491.0  0.00 
 F07C  Nondefense:  Consumption  expenditure  s  241,447.0  0.00  F07I  Nondefense:  Gross  investmen  t  33,418.0  0.00 
 F08C  State  and  local  government  consumption  expenditures,  education  524,349.0  0.00  F08I  State  and  local  government  gross  investment,  education  75,079.0  0.00 
 F09C  State  and  local  government  consumption  expenditures,  othe  r  593,400.0  0.00  F09I  State  and  local  government  gross  investment,  othe  r  195,518.0  0.00 
 T007  Total  Commodity  Outpu  t  21,346,045.9  560,329.8  2.62 


 Table  2.7  2004  Use  of  Broadcastin  g  and  Communications  Commodities  b  y  Industr  y 
 NAICS  I-  O  Industry  Group  Total  Industry  Output  (Millions 
 $) 
 Purchases  of  Broadcasting  and 
 Communications  (Millions  $) 
43
 Percentage  of  Total  Sales  to  Broadcasting 
 and  Communications  Industry  (%) 
 Sales  to  Broadcasting  and  Communications 
 Industry  as  Percent  of  Industry  Output  (%) 


 111CA  Farms  250,230.7  11.2  0.00  0.00  113FF  Forestry,  fishing,  and  related  activities  69,750.1  0.00  0.00 
 211  Oil  and  gas  extraction  173,110.7  0.00  0.00  212  Mining,  except  oil  and  gas  54,598.8  1.4  0.00  0.00 
 213  Support  activities  for  mining  61,627.6  0.00  0.00  22  Utilities  439,991.2  2,881.1  0.65  0.45 
 23  Construction  1,166,799.5  1,663.3  0.14  0.26  311FT  Food  and  beverage  and  tobacco  products  639,322.2  0.00  0.00 
 313TT  Textile  mills  and  textile  product  mills  71,495.1  18.9  0.03  0.00  315AL  Apparel  and  leather  and  allied  products  42,464.3  30.3  0.07  0.00 
 321  Wood  products  106,698.9  1,477.2  1.38  0.23  322  Paper  products  155,418.4  994.1  0.64  0.15 
 323  Printing  and  related  support  activities  68,883.7  2,283.4  3.31  0.35  324  Petroleum  and  coal  products  324,568.3  871.1  0.27  0.14 
 325  Chemical  products  519,460.4  1,006.3  0.19  0.16  326  Plastics  and  rubber  products  191,591.4  2,297.0  1.20  0.36 
 327  Nonmetallic  mineral  products  98,577.5  1,291.2  1.31  0.20  331  Primary  metals  174,729.2  1,270.4  0.73  0.20 
 332  Fabricated  metal  products  260,534.1  5,641.4  2.17  0.87  333  Machinery  277,545.9  195.4  0.07  0.03 
 334  Computer  and  electronic  products  387,241.3  10,238.8  2.64  1.59  335  Electrical  equipment,  appliances,  and  components  101,826.4  4,040.8  3.97  0.63 
 3361MV  Motor  vehicles,  bodies  and  trailers,  and  parts  487,938.7  105.8  0.02  0.02  3364OT  Other  transportation  equipment  173,337.4  1.8  0.00  0.00 
 337  Furniture  and  related  products  78,213.7  131.8  0.17  0.02  339  Miscellaneous  manufacturing  135,922.7  215.9  0.16  0.03 
 42  Wholesale  trade  1,011,981.6  4,462.8  0.44  0.69  44RT  Retail  trade  1,138,896.6  256.4  0.02  0.04 
 481  Air  transportation  127,807.5  673.7  0.53  0.10  482  Rail  transportation  47,285.2  76.0  0.16  0.01 
 483  Water  transportation  32,254.6  12.0  0.04  0.00  484  Truck  transportation  228,467.4  587.8  0.26  0.09 
 485  Transit  and  ground  passenger  transportation  37,835.7  1,017.2  2.69  0.16  486  Pipeline  transportation  32,978.7  2.2  0.01  0.00 
 487OS  Other  transportation  and  support  activities  109,798.0  1,146.6  1.04  0.18  493  Warehousing  and  storage  42,501.1  126.3  0.30  0.02 
 511  Publishing  industries  (includes  software)  171,317.8  260.1  0.15  0.04  512  Motion  picture  and  sound  recording  industries  98,311.6  21,172.3  21.54  3.28 
 513  Broadcasting  and  telecommunications  560,329.8  137,507.6  24.54  21.31  514  Information  and  data  processing  services  122,745.5  1,969.2  1.60  0.31 
 521CI  Federal  Reserve  banks,  credit  intermediation,  and  related  569,489.1  14,570.7  2.56  2.26  523  Securities,  commodity  contracts,  and  investments  285,947.7  925.6  0.32  0.14 
 524  Insurance  carriers  and  related  activities  542,418.4  6,439.3  1.19  1.00  525  Funds,  trusts,  and  other  financial  vehicles  87,984.5  0.00  0.00 
 531  Real  estate  1,806,953.7  5,579.9  0.31  0.86  532RL  Rental  and  leasing  services  and  lessors  of  intangible  assets  299,340.3  8,957.9  2.99  1.39 
 5411  Legal  services  231,609.0  2,175.9  0.94  0.34  5412OP  Miscellaneous  professional,  scientific  and  technical  services  1,011,462.4  49,922.2  4.94  7.74 
 5415  Computer  systems  design  and  related  services  248,485.4  1,491.7  0.60  0.23  55  Management  of  companies  and  enterprises  336,552.0  1,692.8  0.50  0.26 
 561  Administrative  and  support  services  493,259.7  4,712.7  0.96  0.73  562  Waste  management  and  remediation  services  64,537.4  181.9  0.28  0.03 
 61  Educational  services  231,735.0  929.8  0.40  0.14  621  Ambulatory  health  care  services  634,330.8  0.00  0.00 
 622HO  Hospitals  and  nursing  and  residential  care  facilities  688,480.5  0.00  0.00  624  Social  assistance  119,573.3  0.00  0.00 
 711AS  Performing  arts,  spectator  sports,  museums,  and  related  75,603.5  7,593.5  10.04  1.18  713  Amusements,  gambling,  and  recreation  industries  138,668.9  104.5  0.08  0.02 
 721  Accommodation  112,424.0  478.5  0.43  0.07  722  Food  services  and  drinking  places  524,218.3  843.7  0.16  0.13 
 81  Other  services,  except  government  636,118.5  11,935.7  1.88  1.85  GFE  Federal  government  enterprises  72,552.2  1,422.8  1.96  0.22 
 GFG  Federal  general  government  727,351.0  0.00  0.00  GSL  E  State  and  local  government  enterprises  55,736.5  302.2  0.54  0.05 
 GSLG  State  and  local  general  government  1,119,571.9  0.00  0.00 


 Total  Sales  21,388,793.3  645,152.3  3.02  100.00  Value  Adde  d  11,734,284.7  311,965.0  2.66  48.36 


 Table  2.8  2004  Use  of  Commodities  by  the  Broadcasting  and  Communications  Industry 
 NAICS  I-  O  Industry  Group  Total  Commodity 
 Output  (Millions  $) 
 Sales  to  Broadcasting  and  Communications 
 Industry  (Millions  $) 
44
 III-  1 
 III.  Price  Indices 
 The  U.  S.  Department  of  Labor's  Bureau  of  Labor  Statistics  (BLS)  calculates  telephone  service  price  indices  as  part  of  two  major  programs.  The  Consumer  Price  Index 
 (CPI)  program  publishes  indices  based  on  the  am  ount  of  money  that  residential  customers  in  urban  areas  pay  for  telephone  service.  The  Producer  Price  Index  (PPI)  program  publishes 
 indices  based  on  the  amount  of  money  that  companies  receive  for  providing  telephone  service.  Unlike  the  CPI,  the  PPI  indices  cover  business  as  well  as  residential  telephone 
 service. 
 A.  Consumer  Price  Indices 
 The  Consumer  Price  Index  is  the  nation's  most  widely  recognized  measure  of  retail  price  changes.  It  is  published  monthly  by  the  BLS,  and  measures  the  prices  all  urban 
 consumers  pay  for  most  goods  and  services.  BLS  defines  urban  areas  as  Metropolitan  Statistical  Areas  (MSAs)  and  small  cities  with  populations  greater  than  2500.  According  to 
 BLS,  over  85  percent  of  the  U.  S.  population  lives  in  urban  areas. 
 The  BLS  has  published  an  index  for  telephone  services  since  1935.  In  1978  it  began  publishing  an  index  for  local  telephone  service,  interstate  toll  service,  and  intrastate  toll 
 service.  In  1998  it  added  an  index  for  cellular  telephone  services.  At  that  time,  the  BLS  also  revised  the  telephone  services  index  to  include  information  from  the  cellular  index  and 
 created  an  aggregate  index  by  combining  the  interstate  and  intrastate  toll  service  indices  into  an  index  for  long  distance  services.  Telephone  service  price  changes  are  also  included  in  the 
 CPI  index  for  all  goods  and  services,  as  well  as  in  other  broad  indices.  According  to  the  BLS,  as  of  the  end  of  December  2004,  telephone  prices  accounted  for  roughly  2%  of  the 
 CPI  for  all  goods  and  services.  1 
 Table  3.1  shows  the  annual  changes  in  the  CPI  indices  since  1980.  In  addition  to  showing  the  nominal  changes  in  telephone  prices,  the  table  shows  the  changes  in  telephone 
 prices  after  adjusting  for  the  impact  of  inflation,  as  measured  by  the  CPI  for  all  goods  and  services.  Chart  1  illustrates  the  changes  in  toll  rates  since  the  AT&  T  divestiture  in  1984; 
 since  then,  rates  for  both  interstate  and  intrastate  toll  calls  have  fallen.  Chart  2  adjusts  the  price  indices  for  interstate  and  intrastate  toll  service  for  the  impacts  of  inflation.  Relative  to 
 the  prices  of  other  goods  and  services,  long  distance  rates  have  fallen  substantially  since  the  AT&  T  divestiture  in  1984. 


 Table  3.2  shows  three  monthly  consumer  price  indices  that  were  first  published  in  1998.  A  long  distance  servi  ce  index  has  been  created  using  the  existing  information 
 collected  for  the  interstate  and  intrastate  toll  indices.  An  index  for  cellular  telephone  service  has  been  created  and  the  previous  telephone  services  index  has  been  replaced  with  a  new 
 measure  that  includes  the  cellular  price  index.  Since  the  previous  index  for  telephone  services  did  not  include  cellular  services,  the  two  series  are  not  strictly  comparable.  Users 
 should  exercise  caution  because  current  price  trends  in  the  cellular  mark  et  deviate  significantly  from  those  in  the  wireline  telephony  mark  et. 


 1  See  http://  www.  bls.  gov/  cpi/  cpiri2004.  pdf  . 
45
 III-  2 
 B.  Producer  Price  Indices 
 The  Producer  Price  Index  (PPI)  is  a  sta  tistical  series  established  by  the  BLS  to  measure  changes  in  the  prices  charged  by  producers.  This  index,  formerly  known  as  the 
 Wholesale  Price  Index,  was  first  published  in  1902.  The  BLS  began  publishing  indices  for  telecommunications  products  in  1972.  These  indices  were  who  lly  redesigned  in  mid-  1995. 
 Conseq  uently,  the  current  indices  are  not  comparab  le  to  indices  prior  to  1995.  In  addition  to  39  current  indices  of  teleco  mmunications  products,  the  BLS  publishes  overall  indices  by 
 stage  of  processing  --  finished  goods,  intermediate  goods,  and  crude  materials  for  further  processing. 


 With  the  release  of  data  for  January  2004,  the  Producer  Price  Index  program  changed  its  basis  for  industry  classification  from  the  1987  Sta  ndard  Industrial  Classification 
 (SIC)  system  to  the  No  rth  American  Industry  Classification  System  (NAICS).  Developed  in  cooperation  with  Canada  and  Mexico,  NAICS  re  presents  a  profound  change  for  statistical 
 programs  focusing  on  emerging  economic  activities.  The  system  was  developed  using  a  production-  oriented  conceptual  framework,  grouping  establishments  into  industries  based 
 on  the  activity  in  which  they  are  primarily  engaged.  While  many  NAICS  industries  directly  compare  with  SIC  industries,  a  number  of  SIC  industries  were  split  or  combined  to  form  a 
 new  NAICS  industry.  The  PPI  treats  the  SIC-  to-  NAIC  comparison  as  continuous  if  80  percent  or  more  of  the  weight  of  the  SIC-  based  index  comprises  at  least  80  percent  of  the 
 weight  of  the  NAICS-  based  index.  All  index  series  that  have  passed  this  test  are  published  under  the  NAICS  structure  using  the  index  base  date  and  price  index  history  established  by 
 the  SIC-  based  index.  Documentation  of  the  NAICS  to  SIC  concordance  for  all  subsectors,  industry  groups,  and  products  may  be  found  at  http://  www.  bls.  gov/  ppi/  ppinaics.  htm.  2 


 Since  the  PPI  indexes  the  prices  received  by  producers,  it  includes  the  prices  paid  by  businesses  as  well  as  consumers.  The  PPI  does  not  include  taxes  or  other  government 
 surcharges.  Additionally,  it  is  subject  to  subs  tantial  fluctuations  from  month  to  month  and  each  index  is  revised  four  months  following  its  release.  Consequent  ly,  analysts  should  use 
 caution  when  using  the  PPI  to  measure  short-  run  trends  in  telecommunications  prices.  It  is  suggested  that  users  consider  constructing  a  three  to  four  month  moving  average  of  the 
 series  to  improve  the  analysis  of  trends.  Table  3.3  presents  the  monthly  PPI  indices  for  the  period  since  January  2000.  Certain  Producer  Price  Index  categories  were  discontinued  in 
 1995.  These  PPIs  may  be  found  at  http://  www.  bls.  gov  . 


 C.  Additional  Sources  of  In  formation  on  Price  Indices 
 The  BLS  maintains  current  and  complete  access  to  all  of  the  price  indices  at  stats.  bls.  gov  on  the  Internet.  Visitors  can  find  documentation  on  the  construction  of  the 
 indices  there  as  well. 


 2  Several  telecommunications  PPIs  published  by  the  BLS  under  the  SIC  classification  system  are  no  long 
 published  after  the  conversion  to  NAICS.  These  incl  ude  Other  Local  Service  (SIC  pcu4813#  114),  Other  Local  Service  except  Directory  Assistance  (SIC  pcu4813#  11409),  LEC  Intrastate  Private  Line  Service  (SIC 


 pcu4813#  311),  Directory  Advertising  (SIC  pcu4813#  91)  ,  and  Other  Telephone  Services  (SIC  pcu4813#  99).  In  addition,  Directory  Assistance  (SIC  pcu4813#  11401)  is  now  classified  as  O  ther  Local 
 Service  (NAICS  517110114)  and  Telephone  Communications  except  Radiotelephone  is  now  referred  to  as  Wired  Telecommunications  Carriers. 
46
 Table 
 3.1 


 Chan 
 g 
 es 


 in 
 the 
 Consumer 


 Price 
 Indices 


 Since 


 1980 


 ( 
 Percent 


 change 
 from 
 December 


 of 
 the 
 previous 


 year 
 through 


 December 


 of 
 the 


 year 


 shown 


 ) 


 Telephone 
 Services 


 All 
 Goods 


 Inflation 
 Inflation 


 Inflation 
 Inflation 
 Inflation 


 and 
 Services 


 Ad 
 j 
 usted 


 Ad 
 j 
 usted 


 Ad 
 j 
 usted 


 Ad 
 j 
 usted 


 Ad 
 j 
 usted 


 1980 
 12.5% 


 4.6% 
 -7.1% 


 7.0% 
 -4.9% 


 3.4% 
 -8.1% 


 -0.6% 
 -11.6% 


 1981 
 8.9% 
 11.7% 
 2.5% 
 12.6% 


 3.3% 
 14.6% 


 5.2% 


 6.2% 
 -2.5% 


 1982 
 3.8% 


 7.2% 
 3.3% 
 10.8% 


 6.7% 
 2.6% 
 -1.2% 


 4.2% 
 0.3% 


 1983 
 3.8% 


 3.6% 
 -0.2% 


 3.1% 
 -0.6% 


 1.5% 
 -2.2% 


 7.4% 
 3.4% 


 1984 
 3.9% 
 9.2% 
 5.1% 
 17.2% 
 12.7% 


 -4.3% 
 -8.0% 


 3.6% 
 -0.3% 


 1985 
 3.8% 


 4.7% 
 0.8% 


 8.9% 
 5.0% 


 -3.7% 
 -7.2% 


 0.6% 
 -3.1% 


 1986 
 1.1% 


 2.7% 
 1.6% 


 7.1% 
 5.9% 


 -9.4% 
 -10.4% 


 0.3% 
 -0.8% 


 1987 
 4.4% 


 -1.3% 
 -5.5% 


 3.3% 
 -1.0% 


 -12.4% 
 -16.1% 


 -3.0% 
 -7.1% 


 1988 
 4.4% 


 1.3% 
 -3.0% 


 4.5% 
 0.1% 


 -4.2% 
 -8.2% 


 -4.2% 
 -8.3% 


 1989 
 4.6% 


 -0.3% 
 -4.7% 
 0.6% 
 -3.9% 


 -1.3% 
 -5.7% 


 -2.6% 
 -6.9% 


 1990 
 6.1% 


 -0.4% 
 -6.2% 


 1.0% 
 -4.8% 


 -3.7% 
 -9.3% 


 -2.2% 
 -7.8% 


 1991 
 3.1% 


 3.5% 
 0.4% 
 5.1% 
 2.0% 


 1.3% 
 -1.7% 


 -1.5% 
 -4.4% 


 1992 
 2.9% 
 -0.3% 
 -3.1% 


 0.5% 
 -2.4% 


 -1.3% 
 -4.1% 


 -2.4% 
 -5.1% 


 1993 
 2.7% 


 1.8% 
 -0.9% 


 1.0% 
 -1.7% 


 6.5% 
 3.7% 


 0.2% 
 -2.5% 


 1994 
 2.7% 


 0.7% 
 -2.0% 


 -0.3% 
 -2.9% 


 5.4% 
 2.7% 


 -1.0% 
 -3.6% 


 1995 
 2.5% 


 1.2% 
 -1.3% 


 2.6% 
 0.0% 


 0.1% 
 -2.3% 


 -3.8% 
 -6.2% 


 1996 
 3.3% 


 2.1% 
 -1.2% 


 0.9% 
 -2.4% 


 3.7% 
 0.4% 


 6.1% 
 2.7% 


 1997 
 1.7% 


 0.2% 
 -1.4% 


 1.0% 
 -0.6% 


 -4.3% 
 -5.9% 


 2.8% 
 1.1% 


 1998 
 1.6% 


 0.3% 
 -1.9% 


 1.3% 
 -0.3% 


 -0.8% 
 -2.4% 


 1.5% 
 -0.1% 


 1999 
 2.7% 


 0.4% 
 -2.2% 


 2.9% 
 0.2% 


 -0.7% 
 -3.3% 


 -1.6% 
 -4.1% 
 -11.6% 
 -13.9% 


 2000 
 3.4% 
 -2.3% 
 -5.5% 


 5.6% 
 2.1% 
 -11.2% 


 -14.1% 


 -6.0% 
 -9.1% 
 -12.3% 


 -15.2% 


 2001 
 1.6% 
 1.3% 
 -0.2% 


 4.5% 
 2.9% 
 -2.0% 


 -3.3% 


 -1.7% 
 -3.2% 


 -5.5% 
 -6.9% 


 2002 
 2.4% 
 0.2% 
 -2.1% 


 5.3% 
 2.9% 
 -5.9% 
 -8.2% 


 -6.1% 
 -3.2% 


 -0.3% 
 -2.0% 


 2003 
 1.8% 
 -2.7% 
 -4.4% 


 2.6% 
 0.8% 
 -10.8% 


 -12.4% 


 -9.3% 
 -10.9% 


 -1.3% 
 -3.1% 


 2004 
 3.3% 
 -2.5% 
 -5.6% 


 1.1% 
 -2.1% 


 -8.7% 
 -11.7% 


 -6.6% 
 -9.6% 


 -1.4% 
 -4.5% 


 2005 
 3.4% 
 0.4% 
 -2.9% 


 3.3% 
 -0.1% 


 -3.0% 
 -6.3% 


 0.4% 
 -2.9% 


 -1.5% 
 -4.8% 


 Land-  line 
 Telephone 


 Services, 
 Local 
 Charges 


 Land-  line 
 Interstate 


 Toll 
 Calls 


 Land-  line 
 Intrastate 


 Toll 
 Calls 


 Wireless 
 Telephone  Services 
47
 Consumer 
 Price 
 Indices 


 for 
 Toll 
 Service 


 Since 
 1984 


 0 
 20  40  60  80  100  120  140  160  180  200 


 1984 


 1986 
 1988 
 1990 
 1992 
 1994 
 1996 
 1998 
 2000 


 2002 
 2004 


 I  n  d  e  x  L  e  v  e  l 
 All 
 Goods 


 and 
 Services 


 Interstate 
 Toll 
 Service 


 Intrastate 
 Toll 
 Service 
48
 Consumer 
 Price 
 Indices 


 for 
 Toll 
 Service 


 Since 
 1984 


 (Adjusted 
 for 
 Inflation) 


 0.0  20.0  40.0  60.0  80.0  100.0  120.0 
 1984 


 1986 
 1988 
 1990 
 1992 
 1994 
 1996 
 1998 
 2000 


 2002 
 2004 


 I  n  d  e  x  L  e  v  e  l 
 Interstate 
 Toll 
 Service 


 Intrastate 
 Toll 
 Service 
49
 All  Goods  and  Services  Telephone  Services  Land-  line  Tele  phone  Services,  Local 
 Charges 


 Land-  line  Tele  phone  Services,  Long-Distance 
 Charges 
 Land-  line  Interstate  Toll  Calls  Land-  line  Intrastate  Toll  Calls  Wireless  Telephone 
 Services 
 CUUR0000SA0  CUUR0000SEED  CUUR0000SEED01  CUUR0000SEED02  CUUR0000SS27051  CUUR0000SS27061  CUUR0000SEED03 


 2001  Januar  y  108.6  98.8  110.5  89.9  88.0  94.2  68.9  February  109.0  98.7  110.7  89.5  87.6  93.7  68.9 
 March  109.2  99.4  110.9  90.7  89.0  94.5  68.7  April  109.7  99.0  111.9  89.1  87.2  93.1  68.8 
 Ma  y  110.2  98.7  112.1  88.2  86.2  92.6  68.5  June  110.4  99.0  112.3  88.7  86.7  93.0  68.1 
 Jul  y  110.0  99.6  113.2  88.9  86.8  93.0  68.6  August  110.0  99.6  113.9  88.5  86.4  92.7  68.1 
 September  110.5  99.2  114.1  87.6  85.5  92.0  67.2  Octobe  r  110.2  99.9  114.6  88.5  86.4  92.9  67.1 
 Novembe  r  110.0  99.6  114.8  87.6  85.5  92.2  67.5  December  109.5  99.7  114.9  87.9  85.8  92.3  67.2 
 2002  Januar  y  109.8  100.3  115.7  88.2  86.2  92.6  67.5  February  110.2  100.3  116.1  87.9  85.8  92.6  67.5 
 March  110.8  99.1  114.1  87.0  85.0  91.6  67.5  April  111.5  98.2  114.0  85.1  82.7  90.1  67.6 
 Ma  y  111.5  99.3  116.8  85.2  82.6  90.4  66.7  June  111.5  99.2  116.9  85.0  82.4  90.1  66.6 
 Jul  y  111.7  99.5  118.7  84.0  81.3  89.1  67.0  August  112.0  100.6  120.2  84.7  82.6  89.1  67.8 
 September  112.2  100.1  120.4  83.7  81.4  88.2  67.5  Octobe  r  112.4  99.9  120.6  83.0  80.7  87.5  67.9 
 Novembe  r  112.4  99.8  120.8  82.7  80.7  87.0  67.5  December  112.2  99.9  121.0  82.6  80.7  86.7  67.4 
 2003  Januar  y  112.6  100.4  121.3  83.4  81.9  87.0  67.6  February  113.5  100.5  121.2  83.5  82.2  86.9  67.7 
 March  114.2  99.7  121.7  81.5  79.8  85.1  67.6  April  113.9  98.7  121.9  79.2  77.4  83.1  67.5 
 Ma  y  113.7  98.1  122.0  77.9  76.0  81.8  67.5  June  113.8  97.5  122.2  76.7  74.6  80.8  66.3 
 Jul  y  114.0  98.1  123.1  77.2  75.6  80.8  66.2  August  114.4  97.8  123.7  76.0  74.0  79.7  66.1 
 September  114.8  97.4  123.8  75.2  73.3  78.9  66.1  Octobe  r  114.6  97.1  124.0  74.3  72.1  78.7  66.1 
 Novembe  r  114.3  97.2  124.2  74.1  71.8  78.3  66.7  December  114.2  97.2  124.1  74.3  72.0  78.6  66.5 
 2004  Januar  y  114.8  97.0  124.4  73.9  71.6  78.0  66.3  February  115.4  97.1  124.2  73.9  71.6  77.8  66.6 
 March  116.2  96.7  124.2  73.1  70.6  77.2  66.5  April  116.6  96.5  123.9  72.8  70.1  77.2  66.4 
 Ma  y  117.2  95.9  124.2  71.3  68.8  75.5  66.5  June  117.6  95.8  124.2  71.2  68.4  75.4  66.4 
 Jul  y  117.4  95.6  124.7  70.1  67.6  74.2  66.5  August  117.5  95.0  124.7  68.7  66.0  72.9  66.5 
 September  117.7  95.3  124.9  69.6  67.0  73.9  66.3  Octobe  r  118.4  94.6  125.2  68.3  65.7  72.6  65.5 
 Novembe  r  118.4  94.9  125.1  69.3  66.4  74.0  65.5  December  118.0  94.8  125.5  68.6  65.7  73.4  65.6 
 2005  Januar  y  118.2  94.8  125.9  68.5  65.7  72.9  65.3  February  118.9  95.1  126.9  68.5  65.3  73.8  65.4 
 March  119.8  95.0  127.4  67.9  64.9  72.5  65.2  April  120.6  95.3  127.8  68.4  64.9  73.4  65.2 
 Ma  y  120.5  94.8  127.3  67.5  64.0  72.6  65.2  June  120.6  94.6  127.5  67.1  63.7  72.1  65.2 
 Jul  y  121.1  94.4  128.0  66.7  63.3  72.3  64.7  August  121.8  94.1  128.6  65.5  62.0  71.2  64.7 
 September  123.2  95.1  128.6  67.7  64.5  73.4  64.8  Octobe  r  123.5  94.6  128.8  66.5  63.2  72.1  64.8 
 Novembe  r  122.5  95.2  129.1  67.8  64.1  74.0  64.6  December  122.0  95.2  129.5  67.4  63.7  73.7  64.6 


 Note:  Figures  for  local  telephone  service,  interstate  toll  service,  and  intrastate  toll  service  after  May,  2000  are  converted  f  rom  1982-  1984  base  index  series  reported  by  the  Bureau  of  Labor  Statistics.  Historical  data  on  these  series  based  upon  the  1982-  1984  index  for  January,  1972  through  May,  2000  can  be  found  in  the  Industry  Analysis  and 
 Technology  Division,  Wireline  Competition  Bureau,  Reference  Book  of  Rates,  Price  Indices,  and  Household  Expenditures  for  Telephone  Service  (July  2002). 


 Table  3.2  Monthly  Consumer  Price  Indices 
 (December  1997  =  100) 


 BLS  Series  ID 
50
 Wired  Telecommunications 
 Carriers 
 Local  Service,  except  Private 
 Lines 
 Residence  Local  Service  Business  Local  Service  Coin  Local  Service  Other  Local  Service 


 NAICS  Series  ID  517110114  2000  Januar  y  94.8  100.6  100.3  100.6  101.8  104.0 
 February  94.1  100.6  100.3  100.6  101.8  104.0  March  94.8  100.7  100.3  100.9  101.8  104.0 
 April  94.1  100.7  100.5  100.7  101.5  104.0  Ma  y  93.4  100.7  100.6  100.6  101.9  104.0 
 Jun  e  94.1  100.8  100.8  100.5  102.3  104.0  Jul  y  94.0  101.3  101.7  100.6  102.7  104.0 
 August  94.0  101.3  101.7  100.6  103.2  104.0  September  93.8  101.5  101.9  100.6  103.6  104.2 
 October  93.4  101.4  101.9  100.5  103.6  104.2  Novembe  r  93.0  101.4  101.9  100.5  103.6  104.2 
 December  93.1  101.4  101.9  100.5  103.6  104.2  2001  Januar  y  92.2  101.4  101.9  100.5  103.6  104.5 
 February  92.0  101.5  101.9  100.5  103.6  104.5  March  92.0  101.5  101.9  100.5  103.6  104.5 
 April  91.9  101.9  102.5  100.7  103.5  104.5  Ma  y  91.8  101.9  102.6  100.7  103.4  104.5 
 Jun  e  91.4  102.0  102.9  100.7  103.6  104.5  Jul  y  91.5  102.7  104.4  100.7  103.7  104.8 
 August  91.8  102.8  104.4  100.7  103.9  104.8  September  92.0  102.9  104.5  100.7  104.1  104.8 
 October  90.1  102.9  104.5  100.8  104.3  104.8  Novembe  r  90.1  102.9  104.5  100.8  104.3  104.8 
 December  89.2  102.9  104.5  100.8  104.3  104.8  2002  Januar  y  88.4  103.4  105.2  101.0  104.3  104.8 
 February  88.0  103.4  105.2  101.0  104.3  104.8  March  87.9  103.4  105.3  101.0  104.3  104.8 
 April  87.5  103.4  105.4  101.0  104.3  104.8  Ma  y  87.8  103.4  105.3  101.0  104.3  104.8 
 Jun  e  87.7  103.5  105.5  101.1  104.3  104.8  Jul  y  87.4  104.0  106.1  101.1  104.3  119.5 
 August  87.8  104.0  106.1  101.2  104.3  119.5  September  87.7  104.0  106.2  101.1  103.9  119.9 
 October  85.5  104.0  106.2  101.1  103.9  119.9  November  86.4  103.9  106.2  101.1  103.9  119.9 
 December  86.0  104.0  106.2  101.1  103.9  119.9  2003  Januar  y  85.7  103.9  106.2  101.1  103.9  119.9 
 February  85.8  103.9  106.2  101.1  103.9  119.9  March  85.8  104.0  106.2  101.1  103.9  119.9 
 April  85.5  104.5  106.8  101.5  103.9  119.9  Ma  y  85.9  104.8  107.4  101.6  103.9  119.9 
 Jun  e  85.9  105.0  107.9  101.6  103.9  119.9  Jul  y  86.0  105.2  108.2  101.6  103.9  120.3 
 August  86.1  105.2  108.2  101.6  103.9  120.3  September  85.7  105.2  108.2  101.6  103.9  120.3 
 October  85.2  105.2  108.3  101.6  103.9  120.3  Novembe  r  84.7  105.2  108.3  101.6  103.9  120.3 
 December  84.1  105.2  108.3  101.6  103.9  120.3  2004  Januar  y  84.5  105.4  108.6  101.6  103.9  120.3 
 February  84.0  105.4  108.6  101.6  103.9  120.3  March  84.1  105.4  108.6  101.6  103.9  120.3 
 April  83.9  105.4  108.6  101.6  103.9  120.3  Ma  y  83.7  105.4  108.6  101.6  103.9  120.3 
 Jun  e  83.8  105.4  108.6  101.6  103.9  120.3  Jul  y  83.6  105.4  108.6  101.7  103.9  120.3 
 August  83.7  105.4  108.6  101.7  103.9  120.3  September  83.5  105.5  108.7  101.7  103.9  120.5 
 October  83.3  105.5  108.8  101.7  103.9  121.0  Novembe  r  83.2  105.6  108.9  101.7  103.9  121.0 
 December  83.0  105.6  109.0  101.7  103.9  121.0  2005  Januar  y  83.3  106.0  109.6  101.9  103.9  121.0 
 February  82.7  106.0  109.7  101.9  103.7  121.0  March  82.9  106.0  109.7  101.9  103.5  121.0 
 April  83.1  106.1  109.7  102.0  103.3  121.0  Ma  y  83.2  106.1  109.7  102.0  103.3  121.0 
 Jun  e  83.4  106.1  109.7  102.0  103.3  121.0  Jul  y  83.6  106.1  109.9  102.0  103.3  121.0 
 August  83.6  106.1  109.9  102.0  103.3  121.0  September  83.4  106.1  109.9  102.0  103.3  121.0 
 October*  83.4  106.1  109.8  102.0  103.3  121.0  November*  83.2  106.1  109.8  102.0  103.3  121.0 
 December*  83.2  106.1  109.8  102.0  103.3  121.0 


 517110113  5171105171101517110111517110112 
 Table  3.3  Monthly  Producer  Price  Indices 
 (June  1995  =  100) 


 *  Subject  to  revisio  n 
51
 Public  Switched  Toll  Service  Residence  Switched  Toll 
 Service 


 Intrastate  Residence 
 Switched  Toll  Service 
 Interstate  Residence 
 Switched  Toll  Service 
 International  Residence 
 Switched  Toll  Service  Business  Switched  Toll  Service  Business  Switched  Access  Toll  Service 


 NAICS  Series  ID  2000  Januar  y  89.7  96.5  94.8  107.4  67.5  81.6  95.4 
 February  88.4  94.1  96.2  100.1  65.9  81.6  92.9  March  89.7  96.2  95.0  105.9  68.2  82.1  95.3 
 April  88.3  94.6  94.4  102.8  67.0  80.8  93.4  Ma  y  87.0  92.9  93.6  99.3  65.7  80.0  93.2 
 Jun  e  88.3  95.1  94.4  104.1  67.0  80.3  94.0  Jul  y  87.8  94.3  93.8  102.1  68.0  80.0  94.6 
 August  87.7  94.2  93.8  102.2  67.2  80.0  94.5  September  87.3  94.8  93.9  104.7  64.5  78.4  92.6 
 October  86.6  93.2  93.5  101.7  61.6  78.8  93.1  Novembe  r  85.6  92.6  93.5  101.7  58.4  77.3  91.5 
 December  85.9  93.0  93.7  101.8  60.2  77.5  91.1  2001  Januar  y  84.2  92.2  93.3  107.4  60.9  74.7  87.6 
 February  83.8  92.1  94.1  99.5  61.8  73.9  87.9  March  83.9  92.4  94.7  98.2  61.3  73.8  87.5 
 April  83.4  92.1  94.3  98.6  61.3  73.0  87.2  Ma  y  83.1  92.2  94.3  98.2  60.4  72.2  85.8 
 Jun  e  82.4  91.4  95.2  98.9  57.4  71.6  84.7  Jul  y  81.9  91.3  95.6  96.9  57.9  70.7  84.3 
 August  82.5  92.8  95.8  96.0  54.8  70.2  83.2  September  82.7  91.7  95.9  101.2  52.9  72.0  84.3 
 October  79.2  88.4  94.9  92.2  49.7  68.2  80.5  Novembe  r  79.1  89.0  95.5  94.7  45.6  67.4  77.6 
 December  77.4  88.2  96.0  92.4  44.5  64.6  74.6  2002  Januar  y  75.7  86.7  95.4  89.1  43.9  62.7  72.7 
 February  75.0  85.2  95.8  85.4  42.4  62.8  73.3  March  74.6  84.5  95.6  84.8  40.2  62.8  73.6 
 April  73.8  83.9  95.3  82.9  41.2  61.9  73.4  Ma  y  74.5  83.5  95.3  82.1  40.6  63.7  73.7 
 Jun  e  74.2  83.3  95.1  81.3  41.6  63.3  74.3  Jul  y  73.3  83.1  94.7  80.9  42.1  61.5  72.1 
 August  74.1  84.1  96.9  81.5  42.3  62.0  72.4  September  73.8  83.0  96.9  78.8  41.4  62.8  72.8 
 October  69.7  77.1  96.8  63.6  39.4  60.7  71.1  November  71.4  80.9  96.4  74.9  38.3  60.2  69.8 
 December  70.7  80.9  95.7  75.4  38.5  58.6  69.1  2003  Januar  y  70.0  79.9  95.6  73.0  38.2  58.3  68.5 
 February  70.4  79.7  87.4  81.2  37.2  59.2  68.9  March  70.2  79.8  87.4  81.6  37.0  58.7  67.9 
 April  69.4  78.2  86.9  78.2  35.6  58.9  68.7  Ma  y  69.8  79.5  87.1  82.2  34.4  58.3  67.1 
 Jun  e  69.7  78.9  87.1  80.7  33.8  58.7  68.3  Jul  y  69.8  79.4  86.9  81.3  36.3  58.4  67.0 
 August  69.9  79.5  86.7  82.2  35.4  58.5  67.2  September  69.3  78.1  85.9  79.8  33.9  58.7  67.7 
 October  68.3  77.6  85.4  79.5  32.5  57.4  66.5  Novembe  r  67.4  76.1  84.7  76.5  31.8  57.0  64.9 
 December  66.3  74.6  83.7  73.5  31.3  56.3  64.6  2004  Januar  y  66.7  75.4  83.1  76.6  30.8  56.4  64.7 
 February  65.9  74.1  82.6  73.1  31.4  56.1  64.3  March  66.1  74.7  82.2  76.4  29.1  55.8  63.9 
 April  65.8  74.4  82.1  75.2  29.9  55.5  63.4  Ma  y  65.4  74.3  82.0  75.3  29.1  54.9  62.5 
 Jun  e  65.5  74.3  82.1  75.7  28.5  55.0  62.9  Jul  y  65.2  74.4  82.3  75.1  29.5  54.2  62.4 
 August  65.3  75.0  82.5  76.8  29.6  53.9  62.0  September  64.9  74.3  81.9  75.7  28.7  53.8  61.8 
 October  64.5  74.5  82.2  75.9  28.6  52.8  60.4  Novembe  r  64.2  73.7  81.9  75.1  26.7  52.9  61.1 
 December  63.7  73.2  81.3  74.0  27.0  52.6  60.2  2005  Januar  y  64.0  73.7  81.5  74.8  28.0  52.5  59.9 
 February  62.9  72.2  80.5  71.8  27.9  51.8  59.3  March  63.3  73.6  81.0  74.9  28.3  51.1  59.0 
 April  63.7  73.8  81.2  74.7  29.2  51.8  59.3  Ma  y  63.8  74.7  81.2  77.6  28.4  51.0  58.0 
 Jun  e  64.1  75.0  81.8  77.8  28.9  51.3  58.6  Jul  y  64.5  76.2  82.2  79.8  30.7  50.8  58.1 
 August  64.5  76.3  82.0  80.3  30.6  50.6  58.0  September  64.1  75.3  81.9  77.5  30.6  51.0  57.9 
 October*  64.1  75.6  82.1  78.6  29.7  50.6  57.7  November*  63.8  75.5  81.3  79.4  29.0  50.1  58.3 
 December*  63.8  75.9  81.1  80.4  29.7  49.5  57.4 


 51711021251711021351711022517110221  517110251711021517110211 
 Table  3.3  Monthly  Producer  Price  Indices  -  Continued 
 (June  1995  =  100) 


 *  Subject  to  revision 
52
 Outbound  Business 
 Switched  Access  Toll  Service 
 Intrastate  Business  Switched  Access  Toll 


 Service,  Outbound 


 Interstate  Business  Switched  Access 
 Toll  Service,  Outbound 
 International  Business  Switched  Access  Toll 


 Service,  Outbound 
 Inbound  Business  Switched  Access 
 Toll  Service 
 Intrastate  Business  Switched  Access  Toll 
 Service,  Inbound 
 Interstate  Business  Switched  Access  Toll 
 Service,  Inbound 
 International  Business  Switched  Access  Toll 
 Service,  Inbound 


 NAICS  Series  ID  2000  Januar  y  102.1  102.4  109.9  85.2  83.8  70.7  76.6  76.2 
 February  98.5  101.5  104.8  76.9  83.2  70.2  75.7  75.0  March  101.4  103.0  113.6  69.3  84.6  76.1  74.9  80.1 
 April  100.0  102.0  110.5  70.5  81.9  69.5  74.6  58.9  Ma  y  100.5  102.0  110.5  74.0  80.7  68.4  72.7  56.5 
 Jun  e  100.6  102.2  111.1  72.6  82.6  68.8  77.4  52.0  Jul  y  101.6  102.2  110.5  80.9  82.5  68.7  77.3  51.0 
 August  101.6  102.2  110.8  80.3  82.2  68.3  76.6  54.1  September  100.1  102.0  110.0  73.0  79.5  61.9  74.2  51.9 
 October  98.9  101.8  108.2  69.6  83.1  69.4  78.2  52.9  Novembe  r  97.5  101.3  105.6  68.3  81.1  67.5  75.2  46.9 
 December  96.9  100.8  103.0  72.4  81.1  67.2  74.8  52.5  2001  Januar  y  92.1  99.4  95.6  62.8  79.7  65.8  72.5  51.1 
 February  91.2  99.0  95.5  58.0  82.2  68.5  77.3  46.8  March  91.0  99.5  92.7  62.2  81.5  67.6  75.7  51.4 
 April  91.0  98.4  96.1  57.1  80.6  66.3  74.5  50.7  Ma  y  89.3  97.7  93.2  55.1  79.7  66.4  72.3  49.6 
 Jun  e  87.0  98.0  86.7  55.3  80.6  66.7  74.3  49.3  Jul  y  87.1  98.4  86.3  55.3  79.4  67.5  71.0  49.3 
 August  86.2  98.3  85.6  51.9  77.8  64.9  69.1  47.4  September  88.2  97.6  91.1  53.3  77.6  63.5  68.9  51.9 
 October  81.5  95.4  77.6  48.9  78.6  66.8  70.1  45.9  Novembe  r  80.2  96.7  70.8  53.5  73.2  62.0  60.2  45.4 
 December  74.6  93.4  60.7  51.3  74.5  56.5  66.9  40.4  2002  Januar  y  72.6  93.3  56.2  48.9  72.7  60.8  60.8  37.4 
 February  72.3  93.3  55.1  49.3  75.1  62.6  64.7  37.9  March  73.3  93.1  57.4  50.9  74.1  63.2  61.9  39.8 
 April  72.7  92.8  54.5  53.9  74.7  60.7  65.2  36.4  Ma  y  72.4  91.7  49.7  64.2  76.1  63.3  66.2  41.0 
 Jun  e  72.9  92.1  52.9  61.1  76.7  62.5  67.0  41.0  Jul  y  70.5  91.9  49.4  53.4  74.8  63.2  63.5  39.4 
 August  69.3  91.8  48.7  48.4  77.6  64.7  68.2  42.1  September  69.7  91.8  49.0  50.2  78.0  64.9  67.6  55.1 
 October  68.3  91.4  48.9  43.0  75.9  62.6  64.0  58.4  November  67.7  91.0  48.2  42.2  73.6  61.0  61.5  45.7 
 December  66.0  90.5  44.4  40.9  74.4  60.2  63.9  45.3  2003  Januar  y  65.3  90.2  42.5  41.6  73.9  62.9  60.3  52.2 
 February  64.4  89.9  41.1  39.8  76.7  63.2  65.9  54.3  March  64.4  90.0  40.6  40.4  74.0  63.3  60.2  52.6 
 April  64.4  89.4  41.4  40.4  76.0  63.4  64.2  55.4  Ma  y  62.3  89.1  37.6  36.8  75.5  63.5  62.6  57.5 
 Jun  e  63.0  89.2  37.8  39.8  77.4  64.6  66.4  54.8  Jul  y  61.8  88.9  34.5  40.4  75.9  64.5  61.9  65.5 
 August  62.0  88.8  34.3  41.9  76.1  64.6  62.9  60.3  September  61.3  88.8  34.4  38.1  78.6  67.2  65.8  68.8 
 October  61.1  88.7  35.5  35.1  75.8  64.3  62.7  59.8  Novembe  r  60.0  88.5  32.9  34.4  73.3  62.4  59.8  47.7 
 December  59.5  88.3  31.9  33.7  73.4  60.0  61.7  46.1  2004  Januar  y  59.2  88.2  32.1  32.0  74.0  61.2  62.6  43.1 
 February  58.3  87.2  30.4  32.7  74.5  60.0  64.6  41.7  March  58.4  88.1  30.5  30.4  73.3  60.5  62.4  35.8 
 April  57.8  87.5  29.4  31.0  72.9  60.9  60.9  39.6  Ma  y  57.1  86.9  28.5  30.2  71.6  60.5  58.4  39.5 
 Jun  e  57.4  87.1  28.7  30.9  72.5  60.2  60.6  38.8  Jul  y  57.0  87.0  27.6  31.4  71.5  59.8  58.5  40.4 
 August  57.1  86.7  27.9  31.5  70.6  61.0  55.6  40.4  September  56.6  86.6  27.2  30.6  70.8  61.3  56.0  39.8 
 October  54.7  85.0  24.9  27.9  70.3  60.9  55.3  38.5  Novembe  r  55.1  86.1  25.3  27.2  71.4  61.0  58.0  35.1 
 December  54.7  85.4  24.2  28.3  69.8  60.2  54.7  39.0  2005  Januar  y  54.1  85.1  23.6  26.9  70.0  59.6  55.8  36.3 
 February  54.1  85.2  23.7  26.7  68.1  58.7  52.4  35.7  March  53.9  85.1  23.6  25.8  67.7  59.5  50.9  36.7 
 April  54.0  85.2  23.8  25.7  68.5  60.9  51.7  36.1  Ma  y  53.0  84.7  22.2  24.4  66.7  60.9  48.0  34.7 
 Jun  e  53.0  85.0  21.9  24.5  68.2  59.9  51.9  35.0  Jul  y  52.5  84.8  21.1  23.5  67.8  60.0  50.8  35.6 
 August  52.5  84.6  21.5  23.3  67.3  59.8  50.4  33.2  September  52.1  84.3  20.9  22.5  68.1  58.5  52.6  33.7 
 October*  52.0  84.2  21.0  22.2  67.6  58.2  51.9  32.4  November*  52.2  84.7  21.0  22.1  68.9  59.2  54.3  30.0 
 December*  51.7  84.2  20.5  21.5  67.2  58.5  50.6  35.8 


 5171102212517110221215171102212251711022123  5171102211517110221115171102211251711022113 
 Table  3.3  Monthly  Producer  Price  Indices  -  Continued 
 (June  1995  =  100) 


 *  Subject  to  revisio  n 
53
 Business  Special  Access  Switched  Toll  Service, 
 except  Private  Lines 
 Outbound  Business  Special  Access  Switched 
 Toll  Service 
 Intrastate  Business  Special  Access  Switched  Toll 
 Service,  Outbound 
 Interstate  Business  Special  Access  Switched 
 Toll  Service,  Outbound 
 International  Business  Special  Access  Switched 
 Toll  Service,  Outbound 
 Inbound  Business  Special  Access  Switched  Toll 
 Service 
 Intrastate  Business  Special  Access  Switched 
 Toll  Service,  Inbound 


 NAICS  Series  ID  2000  Januar  y  58.2  50.6  47.0  44.9  51.3  71.9  62.4 
 February  62.4  55.5  55.3  51.9  53.8  74.8  66.0  March  59.7  52.6  52.3  49.4  49.1  72.5  63.1 
 April  59.7  53.2  52.6  50.2  49.7  71.3  61.6  Ma  y  57.7  51.7  50.0  48.3  48.6  68.5  58.3 
 Jun  e  57.0  50.5  51.3  48.4  43.8  68.8  58.6  Jul  y  55.4  49.0  49.4  48.0  40.3  66.8  56.1 
 August  55.6  48.7  50.3  48.2  38.5  67.9  57.4  September  54.3  46.5  46.3  45.3  36.9  68.3  57.9 
 October  54.7  48.9  49.2  46.8  41.6  65.3  54.3  Novembe  r  53.3  48.2  49.1  47.2  38.7  62.5  50.9 
 December  54.5  45.7  45.5  44.2  36.4  70.3  60.5  2001  Januar  y  53.0  43.8  40.7  39.4  39.0  69.5  59.5 
 February  50.2  42.8  43.1  39.7  34.4  63.5  52.1  March  50.7  41.9  41.1  39.5  32.2  66.5  55.4 
 April  48.9  41.3  47.0  34.8  35.4  62.4  52.9  Ma  y  49.3  41.4  49.5  35.5  33.8  63.4  58.5 
 Jun  e  49.6  40.7  44.4  34.9  34.4  65.5  56.8  Jul  y  47.9  41.1  41.5  38.7  30.8  60.1  49.9 
 August  48.4  39.5  37.5  34.6  33.0  64.4  57.7  September  51.2  43.5  49.1  37.2  38.5  65.1  58.5 
 October  47.4  40.7  49.7  33.6  34.1  59.6  53.3  Novembe  r  50.2  41.9  29.5  32.6  47.3  65.0  60.8 
 December  47.7  40.2  47.8  30.0  38.8  61.3  53.4  2002  Januar  y  46.0  36.9  47.2  25.7  34.9  62.8  62.8 
 February  45.3  39.1  48.3  29.4  36.1  56.2  45.7  March  44.9  38.9  52.2  28.3  35.5  55.3  48.1 
 April  42.8  36.8  53.8  25.0  33.1  53.5  45.4  Ma  y  46.7  39.4  50.0  30.2  34.8  59.9  57.0 
 Jun  e  45.0  38.7  49.0  29.5  34.2  56.2  51.9  Jul  y  43.9  38.1  49.7  27.7  34.5  54.2  48.5 
 August  44.8  38.4  43.7  29.4  35.0  56.2  51.2  September  45.9  40.0  52.1  30.4  35.8  56.3  50.5 
 October  43.3  36.8  45.8  27.0  33.0  54.8  47.2  November  43.9  37.9  47.7  28.6  33.3  54.5  46.3 
 December  41.2  35.4  43.1  24.3  33.5  51.6  46.6  2003  Januar  y  41.5  34.9  47.3  25.1  29.0  53.2  54.0 
 February  42.8  36.1  42.5  27.3  31.0  54.8  46.7  March  43.1  37.4  46.8  29.7  29.9  53.2  51.5 
 April  42.6  36.3  47.1  25.3  33.3  53.9  47.8  Ma  y  43.4  37.5  41.8  28.1  35.1  53.7  50.8 
 Jun  e  42.6  35.9  44.2  26.2  31.7  54.7  46.9  Jul  y  43.7  39.4  51.1  31.0  32.9  51.0  51.0 
 August  43.9  38.8  49.6  30.0  33.2  52.5  44.3  September  43.5  38.6  50.5  29.0  34.1  51.7  52.3 
 October  41.9  36.7  46.2  28.4  29.8  51.0  48.1  Novembe  r  43.5  38.7  49.3  30.5  32.2  51.6  50.2 
 December  42.3  36.9  46.9  28.5  30.2  51.6  48.8  2004  Januar  y  42.4  36.6  47.4  28.1  29.6  52.5  49.4 
 February  42.3  37.1  42.6  31.7  26.8  51.3  46.9  March  42.0  35.6  42.4  29.6  25.4  53.5  50.0 
 April  42.0  36.1  46.0  29.7  25.3  52.4  46.7  Ma  y  41.8  36.0  43.6  29.7  26.0  52.2  48.4 
 Jun  e  41.6  35.7  43.8  29.3  25.5  52.0  50.5  Jul  y  40.4  35.1  43.0  27.7  26.5  49.8  47.7 
 August  40.0  34.5  44.1  26.4  26.2  49.8  48.4  September  40.2  34.4  45.0  26.8  25.1  50.5  51.7 
 October  39.8  34.6  44.0  26.5  26.5  48.8  48.0  Novembe  r  39.1  33.9  41.2  26.1  25.6  48.3  45.0 
 December  39.5  33.9  42.2  26.1  25.4  49.5  47.2  2005  Januar  y  39.7  34.0  41.1  26.1  26.2  49.9  48.3 
 February  39.1  34.1  38.0  26.4  27.3  47.8  46.0  March  37.9  32.5  42.7  23.7  24.4  47.6  46.6 
 April  39.0  33.8  43.0  24.7  27.4  47.9  49.2  Ma  y  38.9  34.5  46.5  25.0  27.8  46.5  50.2 
 Jun  e  38.8  34.6  46.4  25.7  26.8  46.1  46.4  Jul  y  38.3  34.1  45.0  25.1  26.9  45.5  46.9 
 August  38.1  33.6  44.0  24.1  27.2  45.9  47.0  September  39.2  35.5  43.1  27.7  27.9  45.3  42.1 
 October*  38.5  33.7  40.8  25.0  27.3  46.8  44.0  November*  36.2  30.6  32.7  20.4  27.4  46.2  44.9 
 December*  36.3  31.2  32.7  21.6  27.2  45.5  43.1 


 51711022213517110222251711022221  51711022251711022215171102221151711022212 
 Table  3.3  Monthly  Producer  Price  Indices  -  Continued 
 (June  1995  =  100) 


 *  Subject  to  revision 
54
 Interstate  Business  Special  Access  Switched 
 Toll  Service,  Inbound 
 International  Business  Special  Access  Switched  Toll  Service, 
 Inbound  Other  Toll  Service  Private  Line  Service 
 Intrastate  Private  Line  Service  Other  Telephone  Services 


 NAICS  Series  ID  2000  Januar  y  75.2  90.6  99.1  100.4  101.2  100.7 
 February  79.5  90.0  99.6  100.4  101.2  100.9  March  76.1  90.8  100.2  100.4  101.2  100.5 
 April  74.3  88.5  100.6  100.4  101.2  100.6  Ma  y  70.2  89.1  100.3  100.4  101.2  100.0 
 Jun  e  70.6  89.1  100.8  100.4  101.2  100.0  Jul  y  67.6  85.2  100.6  100.4  101.2  100.7 
 August  69.2  93.0  100.3  100.4  101.2  100.6  September  69.8  95.5  100.4  100.4  101.2  101.3 
 October  65.2  93.0  99.3  100.4  101.1  100.0  Novembe  r  61.2  78.2  99.8  100.4  101.2  101.3 
 December  72.9  88.8  95.6  100.4  101.2  101.0  2001  Januar  y  71.6  84.2  101.7  100.4  101.1  101.5 
 February  62.7  81.3  102.9  100.4  101.0  101.5  March  67.2  84.5  101.0  100.4  101.0  101.5 
 April  60.4  90.4  101.6  100.4  101.0  101.5  Ma  y  60.6  90.1  101.4  100.3  100.7  101.5 
 Jun  e  65.0  93.2  101.2  100.3  101.0  101.5  Jul  y  56.9  92.6  100.3  100.3  101.0  101.4 
 August  62.8  88.5  100.2  100.3  101.0  101.4  September  63.7  87.7  101.0  100.5  101.5  101.5 
 October  55.1  85.7  100.6  100.6  101.7  101.5  Novembe  r  63.0  80.7  100.3  100.6  101.7  101.7 
 December  58.3  70.4  101.6  100.6  101.7  101.7  2002  Januar  y  58.4  78.6  102.4  100.6  101.7  101.7 
 February  50.6  76.0  100.5  100.6  101.9  101.7  March  48.4  77.2  99.2  100.6  101.9  101.7 
 April  45.6  75.6  99.2  100.7  102.2  101.7  Ma  y  54.5  74.4  99.9  100.8  102.3  101.6 
 Jun  e  48.9  74.6  100.1  100.9  102.5  101.6  Jul  y  46.1  74.2  99.5  100.9  102.7  101.6 
 August  49.1  75.6  99.6  100.9  102.7  101.6  September  49.6  75.2  99.5  100.9  102.7  101.6 
 October  47.6  73.5  95.9  101.3  103.7  101.9  November  47.3  74.5  96.4  101.3  103.7  101.8 
 December  41.6  74.0  93.9  101.3  103.7  102.0  2003  Januar  y  42.7  73.9  91.5  101.3  103.7  102.0 
 February  47.7  74.4  92.4  101.3  103.7  101.9  March  43.4  60.9  90.5  101.3  103.7  101.9 
 April  45.8  61.3  90.4  101.3  103.7  101.9  Ma  y  44.5  59.2  87.2  101.3  103.7  101.9 
 Jun  e  47.5  55.4  86.9  101.3  103.7  101.9  Jul  y  39.4  56.4  85.6  101.2  103.6  101.9 
 August  44.2  54.6  86.7  101.2  103.6  101.7  September  40.4  56.2  84.9  101.2  103.6  101.7 
 October  40.2  58.6  84.1  101.2  103.6  101.9  Novembe  r  40.8  52.4  82.7  101.2  103.6  101.9 
 December  41.1  52.3  81.6  101.2  103.6  101.9  2004  Januar  y  42.7  55.6  82.9  101.2  103.6  101.9 
 February  41.1  54.3  80.7  101.2  103.6  101.9  March  44.4  62.6  78.7  101.2  103.6  101.8 
 April  43.3  48.5  77.4  101.2  103.6  101.8  Ma  y  42.4  46.9  76.9  101.2  103.6  101.8 
 Jun  e  41.4  49.2  75.2  101.2  103.6  101.8  Jul  y  38.2  46.6  74.6  101.2  103.6  101.8 
 August  38.0  45.1  73.3  101.2  103.6  101.8  September  38.2  44.4  74.0  101.3  103.8  101.8 
 October  36.1  44.1  71.9  101.3  103.9  102.0  Novembe  r  36.0  37.1  71.2  101.4  104.1  102.0 
 December  37.7  38.1  71.7  101.5  104.3  102.6  2005  Januar  y  38.2  36.8  69.7  101.6  104.6  102.6 
 February  34.8  23.5  70.4  101.6  104.6  102.6  March  34.2  37.7  68.1  101.7  104.8  102.6 
 April  34.1  35.4  68.1  101.7  105.0  102.5  Ma  y  31.1  35.4  66.3  101.7  105.0  102.5 
 Jun  e  31.4  35.8  67.3  101.7  105.0  102.6  Jul  y  30.2  33.6  66.4  101.7  105.0  102.5 
 August  30.9  34.5  65.5  101.7  105.0  102.5  September  31.2  38.5  65.9  101.7  105.0  102.9 
 October*  33.5  35.0  64.3  101.7  105.0  102.5  November*  32.1  39.8  64.0  101.7  105.0  102.5 
 December*  31.3  34.1  63.9  101.7  105.0  102.5 


 5171109  5171102222351711029517110351711031  51711022222 
 Table  3.3  Monthly  Producer  Price  Indices  -  Continued 
 (June  1995  =  100) 


 *  Subject  to  revisio  n 
55
 Appendix 
56
 Residential  Rate  Review 
 Please  update  these  data  for  October  15,  2005 


 I.  Access  Rates 
 Monthly  Charges  per  line  (Express  all 


 a.  Recurring  service  charge  incl.  touch-  tone 
 b.  Federal  subscriber  line  charge  (SLC) 
 c.  State  subscriber  line  charge 


 g.  Lowest  monthly  inside  wiring  plan 
 Charges  for  calls  in  local  service  area 
 i.  Number  of  voice  calls  or  message  units 
 included  in  monthly  rate  if  message  service 


 j.  Dollar  calling  allowance  for  voice  calls  incl.  in  monthly  rate  if  measured  service 


 k.  Charge  for  a  5-  minute,  business  day, 


 a.  Total  connection  charge  for  residential  service  if  no  premises  visit  is  required 
 b.  Minimum  additional  charge  if  drop  line  and  terminal  block  are  needed  to 
 connect  service.  Do  not  include  any  inside  wiring  charges. 


 II.  Service  Connection  Charges 


 a.  Mandatory  surcharges  on  connection  accounted  as  company  revenue  (in  dollars) 
 b.  State,  county,  and  local  taxes  and  surcharges  on  connection  (total  in  dollars) 
 c.  Other  mandatory  connection  charges  (in  dollars) 


 III.  Other  Mandatory  Charges  for  Connection 


 Notes 


 Form  Completed  by:  Contact  Telephone  Number: 


 Generally  Available  Service  Subsidized  Services  Such  as  Lifeline 
 (#  1  )  Unlimited 


 or  Flat-  Rate  Service 
 (#  2  )  Measured 
 or  Message  Service 
 (#  3  )  Unlimited 
 or  Flat-  Rate  Service 
 (#  4  )  Measured 
 or  Message  Service 


 h.  Optional  extended  area  plan 
 Normal  Service  Subsidized  Service  (e.  g.,  Link-  Up) 


 e.  Total  Surcharges  and  Taxes  (sum  d1  to  d7) 
 f.  Total  Monthly  Recurring  Charge 


 Contact  E-  mail: 


 d1.  Federally  tariffed  local  number  portability 
 (LNP)  surcharge 
 d2.  Federal  universal  service  surcharge  on 
 Federal  SLC  and  LNP 
 d3.  Other  mandatory  surcharges  (such  as 


 figures  in  DOLLAR  amounts) 


 gross  receipts  tax,  regulatory  fees  or 
 passthrough  charges  on  the  State  SLC) 
 accounted  as  company  revenue 
 d4.  Tax  or  surcharge  for  funding  911  service 
 d5.  Federal  excise  tax 
 d6.  Intrastate  telecommunications  relay  service 
 (TRS  or  relay)  tax  or  surcharge 


 =  a  +  b  +  c  +  e 


 same-  zone  voice  call 


 d7.  Tot.  other  taxes  (sales,  excise,  etc.)  levied 
 on  customers  by  state,  county,  local  govts. 


 Normal  Service  Subsidized  Service  (e.  g.,  Link-  Up) 
57
 Business  Rate  Review 
 Please  update  these  data  for  October  15,  2005 


 Unlimited  Service  Measured  Service 
 Single  Line  Business  I.  Access  Rates 


 Monthly  Charges  per  line  (Express  all  figures  in  DOLLAR 
 a.  Recurring  service  charge  (including  touch-  tone) 
 b.  Federal  subscriber  line  charge  (SLC) 
 c.  State  subscriber  line  charge 


 g.  Lowest  monthly  inside  wiring 
 Charges  for  calls  in  the  local  service  area 
 h.  The  number  of  voice  calls  or  message  units  included  in  the 
 monthly  recurring  rate  if  message  service 


 i.  The  dollar  calling  allowance  for  voice  calls  included  in  the  monthly 
 recurring  rate  if  measured  service 


 j.  The  charge  for  a  5-  minute,  business  day,  same-  zone  voice  call 


 Single  Line  Business 
 a.  Total  connection  charge  for  single-  line  business  service.  Assume  no 
 premise  visit  is  required. 
 b.  Minimum  additional  charge  if  drop  line  and  terminal  block  are  needed  to 
 connect  service.  Do  not  include  any  inside  wiring  charges.  Do  not  include 
 the  cost  of  an  NT1  interface  or  power  supply  for  ISDN  lines. 


 II.  Service  Connection  Charges 


 a.  Mandatory  surcharges  on  connection  accounted  as  company  revenue  (in  dollars) 
 b.  State,  county,  and  local  taxes  and  surcharges  on  connection  (total  in  dollars) 
 c.  Other  mandatory  connection  charges  (in  dollars) 


 III.  Other  Mandatory  Charges  for  Connection 


 IV.  Payphone  Charges  a.  Tariff  rate  for  a  5-  minute,  business  day,  same-  zone  call  at  a  company-  owned  payphone 
 Notes 


 Form  Completed  by:  Contact  Telephone  Number: 
 Contact  E-  mail: 


 d1.  Federally  tariffed  local  number  portability  (LNP)  surcharge 
 amounts) 


 d2.  Federal  universal  service  surcharge  on  the  Fed.  SLC  and  LNP 
 d3.  Other  mandatory  surcharges  (such  as  gross  receipts  tax, 
 regulatory  or  passthrough  charges  on  the  State  SLC) 
 accounted  as  company  revenue 
 d4.  Tax  or  surcharge  for  funding  911  service 
 d5.  Federal  excise  tax 
 d6.  Intrastate  telecommunications  relay  service  (TRS  or  relay)  tax 
 d7.  Total  other  taxes  (such  as  sales,  excise,  etc.)  levied  on 
 customers  by  state,  county,  local  governments 


 f.  Total  Monthly  Recurring  Charge  =  a  +  b  +  c  +  e 
 e.  Total  Surcharges  and  Taxes  (sum  d1  to  d7) 
58
 Customer  Response 
 Publication:  Reference  Book  of  Rates,  Price  Indices,  and  Household  Expenditures  for  Telephone  Service,  2006. 


 You  can  help  us  provide  the  best  possible  information  to  the  public  by  completing  this  form  and  returning  it  to  the  Industry  Analysis  &  Technology  Division  of  the  FCC's  Wireline  Competition  Bureau. 
 1.  Please  check  the  category  that  best  describes  you:  ____  press 
 ____  current  telecommunications  carrier  ____  potential  telecommunications  carrier 
 ____  business  customer  evaluating  vendors/  service  options  ____  consultant,  law  firm,  lobbyist 
 ____  other  business  customer  ____  academic/  student 
 ____  residential  customer  ____  FCC  employee 
 ____  other  federal  government  employee  ____  state  or  local  government  employee 
 ____  Other  (please  specify) 
 2.  Please  rate  the  report:  Excellent  Good  Satisfactory  Poor  No  opinion  Data  accuracy  (_)  (_)  (_)  (_)  (_) 
 Data  presentation  (_)  (_)  (_)  (_)  (_)  Timeliness  of  data  (_)  (_)  (_)  (_)  (_) 
 Completeness  of  data  (_)  (_)  (_)  (_)  (_)  Text  clarity  (_)  (_)  (_)  (_)  (_) 
 Completeness  of  text  (_)  (_)  (_)  (_)  (_) 
 3.  Overall,  how  do  you  Excellent  Good  Satisfactory  Poor  No  opinion  rate  this  report?  (_)  (_)  (_)  (_)  (_) 


 4.  How  can  this  report  be  improved? 
 5.  May  we  contact  you  to  discuss  possible  improvements?  Name: 
 Telephone  #: 
 Questions?  Contact  Pedro  Almoguera  at  202-  418-  0949  or  email  pedro.  almoguera@  fcc.  gov 


 Fax  this  response  to  Or  Mail  this  response  to 
 202-  418-  0520  FCC/  IATD  Washington,  D.  C.  20554 
59