*Pages 1--165 from  *
 Trends  in  Telephone  Service
 Industry  Analysis  Division  Common  Carrier  Bureau
 August  2001
 This  report  is  available  for  reference  in  the  FCCs  Information  Center  at  445  12  th  Street,  S.  W.,  Courtyard  Level.  Copies  may  be  purchased  by  calling  International  Transcription  Service,  Inc.  at  (202)  857-  3800.
 The  report  can  also  be  downloaded  [file  names:  TREND101.  ZIP,  TREND101.  PDF]  from  the  FCC-  State  Link
 Internet  site  at  <www.  fcc.  gov/  ccb/  stats>.
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 Table  of  Contents
 Introduction  ..................................................................................................  1-  1
 Access  Charges  ............................................................................................  1-  3
 Table  1.1  Interstate  Per-  Line  Access  Charges  ..........................................................................  1-  5  Table  1.2  Interstate  Per-  Minute  Access  Charges
 ......................................................................  1-  6  Table  1.3  Interstate  Per-  Line  Access  Charges  by  Carrier  ..........................................................  1-  7
 Table  1.4  Interstate  Per-  Minute  Access  Charges  by  Carrier  ......................................................  1-  8
 Advanced  Telecommunications  ....................................................................  2-  1
 Table  2.1  High-  Speed  Lines  .....................................................................................................  2-  3  Table  2.2  Advanced  Services  Lines
 ..........................................................................................  2-  3  Table  2.3  Residential  and  Small  Business  High-  Speed  Lines  ......................................................  2-  3
 Table  2.4  High-  Speed  Lines  by  Technology  ..............................................................................  2-  4
 Consumer  Expenditures  ...............................................................................  3-  1
 Table  3.1  Household  Expenditures  for  Telephone  Service  .........................................................  3-  3  Chart  3.1  Monthly  Telephone  Service  Expenditures
 ..................................................................  3-  3  Table  3.2  Average  Monthly  Household  Telecommunications  Expenditures
 by  Type  of  Provider  .........................................................................................................  3-  4
 Earnings  .......................................................................................................  4-  1
 Table  4.1  Interstate  Rate-  of-  Return  Summary  ...........................................................................  4-  3
 Employment  and  Labor  Productivity  ...........................................................  5-  1
 Table  5.1  Annual  Average  Number  of  Employees  in  the  Telephone  Communications  Industry
 ................................................................................................  5-  3  Chart  5.1  Annual  Average  Number  of  Employees  in  the  Telephone
 Communications  Industry  ................................................................................................  5-  3  Table  5.2  Labor  Productivity  Index  for  the  Telephone  Communications
 Industry  Measured  in  Output  per  Hour  .............................................................................  5-  4  Chart  5.2  Telephone  Communications  Industry  (SIC  481)  Labor  Productivity  Index
 ..................  5-  4  Table  5.3  Number  of  Telecommunications  Service  Providers  That  Are  Small
 Businesses  .......................................................................................................................  5-  5
 International  Telephone  Service  ..................................................................  6-  1
 Table  6.1  International  Service  from  the  United  States  to  Foreign  Points  ....................................  6-  3  Table  6.2  International  Telephone  Service  Settlements
 ..............................................................  6-  4  Table  6.3  International  Message  Telephone  Service  for  1999  ....................................................  6-  5
 Chart  6.1  U.  S.  Billed  Minutes  by  Country  .................................................................................  6-  5  Table  6.4  U.  S.  Billed  Revenues  of  Facilities-  Based  and  Facilities-  Resale  Carriers
 in  1999  ...........................................................................................................................  6-  6  Table  6.5  Top  Providers  of  Pure  Resale  International  MTS  in  1999
 ..........................................  6-  7
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 Lifeline  and  LinkUp  Programs  .....................................................................  7-  1
 Table  7.1  Lifeline  Monthly  Support  by  State  or  Jurisdiction  .......................................................  7-  5  Table  7.2  Lifeline  Assistance  -  Subscribers  by  State  or  Jurisdiction
 ............................................  7-  6  Table  7.3  LinkUp  Assistance  -  Subscribers  by  State  or  Jurisdiction  ...........................................  7-  7
 Table  7.4  Lifeline  Assistance  Annual  Payments  by  State  or  Jurisdiction  ......................................  7-  8  Table  7.5  LinkUp  Assistance  Annual  Payments  by  State  or  Jurisdiction
 .....................................  7-  9  Table  7.6  Universal  Service  Payments  ....................................................................................  7-  10
 Lines  .............................................................................................................  8-  1
 Table  8.1  Total  U.  S.  Telephone  Lines  .......................................................................................  8-  3  Table  8.2  Telephone  Loops  of  Incumbent  Local  Exchange  Carriers  by  State
 .............................  8-  4  Table  8.3  Telephone  Loops  of  Incumbent  Local  Exchange  Carrier  by  Holding  Company  ...........  8-  5
 Table  8.4  Additional  Residential  Lines  for  Households  with  Telephone  Service  ..........................  8-  6  Table  8.5  Number  of  Payphones  Owned  by  LECs  and  Independent  Operators
 .........................  8-  7
 Local  Telephone  Competition  ......................................................................  9-  1
 Table  9.1  Total  End-  User  Lines  Reported  ................................................................................  9-  5  Table  9.2  End-  User  Lines  by  Customer  Type
 ...........................................................................  9-  5  Table  9.3  Reporting  Competitive  Local  Exchange  Carriers  ........................................................  9-  6
 Table  9.4  Reporting  Incumbent  Local  Exchange  Carriers  ..........................................................  9-  6  Table  9.5  End-  User  Lines  Served  by  Reporting  Local  Exchange  Carriers
 ..................................  9-  7  Table  9.6  Nationwide  Local  Service  Revenues  and  New  Competitors  Share  ............................  9-  8
 Table  9.7  Telephone  Numbers  Transferred  or  Ported  ...............................................................  9-  9
 Long  Distance  Telephone  Industry  ............................................................  10-  1
 Table  10.1  Toll  Service  Revenues  by  Carrier  ...........................................................................  10-  5  Table  10.2  Intrastate,  Interstate,  and  International  Toll  Revenues
 ..............................................  10-  8  Chart  10.1  Toll  Revenues  by  Market  Segment  .........................................................................  10-  8
 Table  10.3  Residential  and  Nonresidential  Toll  Revenues  .........................................................  10-  9  Chart  10.2  Residential  and  Nonresidential  Toll  Revenues
 .........................................................  10-  9  Table  10.4  Number  of  Toll  Carriers  .......................................................................................  10-  10
 Table  10.5  Number  of  Carrier  Identification  Codes  (CICs)  Assigned  by  North  American  Numbering  Plan  Administrator
 ...................................................................  10-  11  Table  10.6  Alternative  Measures  of  Long  Distance  Carrier  Development  ................................  10-  12
 Table  10.7  AT&  T,  ILECs  and  Other  Toll  Service  Providers'  Toll  Revenues  ...........................  10-  13  Chart  10.3  AT&  Ts  Share  of  Toll  Revenues
 ..........................................................................  10-  13  Table  10.8  Share  of  Total  Toll  Service  Revenues  -  Long  Distance
 Carriers  Only  ............................................................................................................  10-  14  Table  10.9  Share  of  Total  Toll  Service  Revenues  -  All  Long  Distance
 Toll  Providers  ............................................................................................................  10-  14  Table  10.10  Residential  Market  Share:  1995  -  2000
 ...............................................................  10-  15  Table  10.11  Market  Share  of  Residential  Direct-  Dial  Minutes  by  State:  2000  .........................  10-  16
 Table  10.12  BOC  Applications  to  Provide  In-  Region  InterLATA  Service  ...............................  10-  17
 Minutes  .......................................................................................................  11-  1
 Table  11.1  Dial  Equipment  Minutes  .........................................................................................  11-  3
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 Table  11.2  Line  Usage  per  Day  ...............................................................................................  11-  4  Table  11.3  Interstate  Switched  Access  Minutes
 .......................................................................  11-  5  Chart  11.1  Interstate  Switched  Access  Minutes  .......................................................................  11-  5
 Mobile  Wireless  Service  .............................................................................  12-  1
 Table  12.1  Mobile  Wireless  Telephone  Subscribers  as  Reported  on  FCC  Form  477  ................  12-  3  Table  12.2  Wireless  Telephone  Subscribers
 .............................................................................  12-  4  Table  12.3  Wireless  Telephone  Service:  Industry  Survey  Results  ..............................................  12-  5
 Price  Indices  for  Telephone  Services  .........................................................  13-  1
 Table  13.1  Long-  Term  Changes  for  Various  Price  Indices  .......................................................  13-  3  Table  13.2  Annual  Changes  in  Major  Price  Indices
 ..................................................................  13-  4  Chart  13.1  CPI  All  Items  and  Telephone  Services  ...................................................................  13-  4
 Table  13.3  Annual  Changes  in  Price  Indices  for  Local  and  Long  Distance  Telephone  Services
 .......................................................................................................  13-  5  Chart  13.2  CPI  Telephone  Service  Price  Indices  .....................................................................  13-  5
 Price  Levels  ................................................................................................  14-  1
 Table  14.1  Average  Residential  Rates  for  Local  Service  in  Urban  Areas  ...................................  14-  3  Table  14.2  Average  Local  Rates  for  Businesses  with  a  Single  Line  in  Urban  Areas
 ...................  14-  4  Table  14.3  Changes  in  the  Price  of  Directly  Dialed  Five-  Minute  Long  Distance  Calls  ................  14-  5
 Table  14.4  Average  Revenue  per  Minute  .................................................................................  14-  6  Table  14.5  Indicators  of  Long  Distance  Prices
 .........................................................................  14-  7
 Residential  Telephone  Usage  .....................................................................  15-  1
 Table  15.1  Distribution  of  Residential  Toll  Calls  and  Minutes  ....................................................  15-  3  Table  15.2  Average  Residential  Monthly  Toll  Calling
 ................................................................  15-  3  Table  15.3  Duration  of  Residential  Long  Distance  Calls:  2000  .................................................  15-  4
 Table  15.4  Length  of  Haul  of  Intrastate  Toll  Calls  .....................................................................  15-  5  Table  15.5  Duration  and  Length  of  Haul  of  Interstate  Toll  Calls
 ................................................  15-  5  Table  15.6  Distribution  of  Residential  Long  Distance  Minutes  by  Day  of  Week  in  2000  ............  15-  6
 Revenues  .....................................................................................................  16-  1
 Table  16.1  Telecommunications  Industry  Revenues:  1999  ........................................................  16-  3  Table  16.2  Telecommunications  Revenues  Reported  by  Type  of  Service
 ..................................  16-  4  Table  16.3  Number  of  Interstate  Telecommunications  Providers
 by  Principal  Type  of  Business  .......................................................................................  16-  5  Table  16.4  Gross  Revenues  Reported  by  Type  of  Carrier
 ........................................................  16-  6  Table  16.5  Telephone  Revenues  by  State  ................................................................................  16-  7
 Subscribership  ............................................................................................  17-  1
 Table  17.1  Household  Telephone  Subscribership  in  the  United  States  .......................................  17-  2  Table  17.2  Telephone  Penetration  by  State
 ..............................................................................  17-  3  Table  17.3  Historical  Telephone  Penetration  Estimates  .............................................................  17-  4
 Chart  17.1  Percent  of  U.  S.  Households  with  a  Telephone,  Computer,  and  Internet  Use  ............  17-  5
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 Technology  Development  ...........................................................................  18-  1
 Table  18.1  Central  Offices  and  Access  Lines  by  Technology  ....................................................  18-  5  Table  18.2  Features  Available  in  Central  Offices
 ......................................................................  18-  6  Table  18.3  Local  Transmission  Technology  ..............................................................................  18-  7
 Table  18.4  Central  Offices  Converted  to  Equal  Access  ............................................................  18-  8  Chart  18.1  Telecommunications  Patents
 ...................................................................................  18-  9
 Telephone  Numbers  ...................................................................................  19-  1
 Table  19.1  Area  Code  Assignments  ........................................................................................  19-  3  Table  19.2  Telephone  Numbers  Assigned  for  Toll-  Free  Service
 ...............................................  19-  7  Table  19.3  Dialing  Patterns  of  the  United  States  .....................................................................  19-  14
 Universal  Service  ........................................................................................  20-  1
 Table  20.1  Universal  Service  Fund  Payment  History  ................................................................  20-  3  Table  20.2  Projected  High-  Cost  Support  Payments  by  State:  2000
 ..........................................  20-  4  Table  20.3  Schools  and  Libraries  Funding  Commitments  by  State  and  by
 Type  of  Service  ............................................................................................................  20-  5  Table  20.4  Rural  Health  Care  Funding  Commitments  and  Authorizations
 for  Payment  by  State  .....................................................................................................  20-  6  Table  20.5  Universal  Service  Fund  Factors
 ..............................................................................  20-  7  Chart  20.1  Interstate  Universal  Service  Fund  Factors  ...............................................................  20-  7
 Chart  20.2  Intrastate  Universal  Service  Fund  Factors  ...............................................................  20-  7
 Appendix  A    Sources  of  Telecommunications  Information  .....................  21-  A
 Appendix  B    Contacting  the  Report  Authors  ...........................................  22-  A
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 Introduction
 Trends  in  Telephone  Service  is  published  by  the  Industry  Analysis  Division  of  the  Federal  Communications  Commissions  Common  Carrier  Bureau.  We  have  designed  this  report  to  provide
 answers  to  some  of  the  most  frequently  asked  questions  about  the  telephone  industry  --  questions  asked  by  consumers,  members  of  Congress,  other  government  agencies,  telecommunications  carriers,  and
 members  of  the  business  and  academic  communities.  To  this  end,  the  report  contains  summary  information  about  the  size,  growth,  and  development  of  the  telephone  industry,  including  data  on  market
 shares,  minutes  of  calling,  number  of  lines,  and  telephone  subscribership.  The  report  also  provides  information  about  access  charges,  consumer  expenditures  for  service,  infrastructure,  international
 telephone  traffic,  long  distance  carriers,  telephone  rates  and  price  changes,  and  universal  service  support.
 Trends  in  Telephone  Service  summarizes  a  variety  of  information  contained  in  other  reports  that  are  published  periodically  by  the  Industry  Analysis  Division.  In  most  cases,  these  other  reports  give
 much  more  detailed  information  than  that  provided  here.  These  reports  can  be  accessed  from  our  Internet  site,  FCC-  State  Link,  at  <www.  fcc.  gov/  ccb/  stats>.  In  addition,  to  facilitate  further
 information  gathering  by  consumers  and  others,  we  have  listed  additional  sources  of  information  in  Appendix  A,  and  we  have  provided  information  on  contacting  the  authors  of  this  report  in  Appendix  B.
 Highlights  from  sections  in  the  report  on  advanced  telecommunications  services,  international  calling,  local  competition,  telephone  rates,  subscribership,  and  toll-  free  numbers  are  shown  below:
 Advanced  Telecommunications  Services  
 High-  speed  lines  (over  200  kbps  in  at  least  one  direction)  connecting  homes  and  small  businesses  to  the  Internet  increased  by  63%  during  the  second  half  of  2000,  to  a  total  of  7.1  million  lines  (or
 wireless  channels)  in  service  from  about  4.4  million  in  June  2000.
   About  4.3  million  high-  speed  lines  provided  speed  of  over  200  kbps  in  both  directions,  and  thus
 met  the  Commissions  definition  of  advanced  services,  compared  to  about  2.9  million  in  June  2000.
 Local  Telephone  Competition  
 As  of  December  2000,  Competitive  Local  Exchange  Carriers  (CLECs)  provided  16.4  million  (or  8.5%)  of  the  approximately  194  million  nationwide  local  telephone  lines  that  were  in  service  to  end
 users  as  opposed  to  8.3  million  (or  4.4%)  of  nationwide  local  telephone  lines  at  the  end  of  1999.  This  represents  a  97%  growth  in  CLEC  market  size  during  the  year  2000.
   About  one-  third  of  CLEC  end-  user  lines  are  served  over  local  loop  facilities  that  the  CLECs
 own.
   Incumbent  Local  Exchange  Carriers  (ILECs)  reported  providing  other  carriers  about  6.8  million
 lines  on  a  resale  basis  at  year-  end  2000,  compared  to  about  5.7  million  lines  six  months  earlier,  and  they  provided  about  5.3  million  unbundled  network  element  (UNE)  loops  at  the  end  of  the  year
 2000,  an  increase  of  62%  during  the  six  months.
 Telephone  Rates
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   Local  phone  rates  have  remained  steady.  The  average  monthly  local  residential  charge  for  service
 was  $20.78  in  October  2000  as  compared  to  $19.24  in  1990;  for  a  business  with  a  single  phone  line,  the  representative  charge  for  service  was  $41.80  in  October  2000  as  compared  to  $41.21  in
 October  1990.
 Subscribership  
 More  than  twenty  million  households  have  been  added  to  the  nation's  telephone  system  since  November  1983.  As  of  November  2000,  100.2  million  households  had  telephone  service.
 Toll-  Free  Numbers  
 There  are  currently  four  toll-  free  prefixes  in  use  -  800,  888,  877,  and  866  -  with  almost  24.5  million  toll-  free  numbers  assigned  as  of  the  end  of  July  2001.
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 1  Access  Charges
 Long  distance  companies  rely  on  the  loops,  switches,  and  transport  facilities  of  local  telephone  companies  for  access  to  their  customers.  As  a  result,  local  telephone  companies  recover  a  portion  of
 their  costs  from  long  distance  companies  accessing  their  networks.  Both  the  manner  in  which  these  access  charges  have  been  assessed  and  the  proportion  of  the  costs  they  have  recovered  have  varied
 considerably  over  time.
 In  the  early  1980s,  AT&  T  provided  about  three-  quarters  of  the  nation's  local  telephone  service  and  almost  all  interstate  long  distance  service.  Because  revenue  sharing  was  largely  an  internal  process
 for  AT&  T,  it  was  able  to  charge  prices  above  true  economic  cost  for  long  distance  calls  and  share  the  revenues  with  local  telephone  companies.  These  transfers,  while  reducing  the  pressures  on  the  local
 companies  to  raise  monthly  rates,  contributed  to  inefficiently  high  long  distance  rates.  The  high  rates  were  responsible  for  suppressing  demand  for  long  distance  calls  and  inducing  large  corporations  to
 bypass  the  public  switched  network.  Moreover,  while  such  revenue  sharing  arrangements  were  sustainable  in  an  industry  where  one  firm  monopolized  both  long  distance  and  local  service,  they  were
 not  compatible  with  a  competitive  long  distance  industry.
 In  mid-  1984  the  FCC,  in  cooperation  with  a  Federal-  State  Joint  Board  composed  of  both  federal  and  state  regulators,  introduced  sweeping  changes  in  the  way  that  local  telephone  companies
 charged  for  their  services.  The  historic  method  of  sharing  revenues  was  replaced  with  a  new  system  of  access  charges  that  provided  a  uniform  method  for  local  telephone  companies  to  charge  long  distance
 carriers  for  the  origination  and  termination  of  interstate  traffic  on  their  local  networks.  In  addition,  monthly  subscriber  line  charges  (SLCs)  were  introduced  to  recover  a  portion  of  the  fixed  costs  of  the
 local  telephone  companies  loops  directly  from  end  users  on  a  per-  line  basis.  1  Since  local  telephone  companies  were  required  to  reduce  their  charges  to  long  distance  carriers  --  dollar  for  dollar  --  as
 SLCs  were  introduced,  the  pricing  changes  reduced  the  implicit  subsidy  from  long  distance  use  to  local  service.  The  rebalancing  of  prices  between  local  service  and  interstate  long  distance  calls  during  the
 1980s  had  a  fundamental  impact  on  the  telephone  industry  as  the  price  of  long  distance  service  fell  and  the  volume  of  long  distance  calling  surged.
 In  mid-  1997,  as  part  of  its  implementation  of  the  1996  Telecommunications  Act,  the  FCC  introduced  further  interstate  access  charge  reform.  Prior  to  the  1997  reform,  local  carriers  continued  to
 recover  part  of  their  fixed  costs  in  per-  minute  charges  (from  long  distance  carriers)  and  part  from  end  users  (in  SLCs.)  Presubscribed  interexchange  carrier  charges  (PICCs)  were  created  in  order  to  allow
 local  carriers  to  recover  the  remaining  portion  of  their  fixed  loop  costs  from  long  distance  carriers  on  a  per-  line,  instead  of  a  per-  minute,  basis.  Cost  recovery  on  a  per-  line  basis  not  only  reduces  the
 remaining  inefficiency  in  the  pricing  of  long  distance  access,  but  allows  local  companies  to  recover  costs  in  a  competitively  neutral  manner,  consistent  with  the  goals  of  the  1996  Act.
 As  part  of  access  charge  reform,  on  May  31,  2000,  the  FCC  eliminated  PICCs  and
 1  Under  the  Commission's  nomenclature,  SLCs  are  called  access  charges  even  though  they  are  collected
 from  customers  (end  users)  rather  than  long  distance  carriers.
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 consolidated  them  with  SLCs  and  all  price-  cap  local  exchange  carriers  reduced  access  charges  paid  by  long  distance  carriers.  Also  as  part  of  access  charge  reform,  some  of  the  large  interexchage  carriers
 agreed  to  eliminate  monthly  minimum  usage  charges.  The  impact  of  access  charge  reform  on  per-  minute  access  charges  by  carriers  is  evident  in  the  data  presented  in  Tables  1.1  through  1.4
 Average  monthly  SLCs  and  PICCs  are  shown  in  Table  1.1,  and  average  per-  minute  rates  charged  to  long  distance  carriers  are  shown  in  Table  1.2.  Both  tables  report  historical  averages  for  all
 local  exchange  carriers  (LECs)  that  file  access  tariffs  subject  to  price-  cap  regulation  and  LECs  in  the  National  Exchange  Carrier  Association  (NECA)  pool.  These  LECs  control  over  98%  of  the  industry's
 access  lines.  Current  per-  line  charges  and  per-  minute  charges  are  reported  for  each  of  the  carriers  in  Tables  1.3  and  1.4,  respectively.
 The  data  in  Table  1.2  clearly  illustrate  the  effectiveness  of  access  reform  in  reducing  the  prices  long  distance  carriers  pay  per  minute  for  access  to  the  local  telephone  companies'  networks.  Per-minute
 access  prices  have  continually  decreased  over  time,  a  trend  that  continues  with  implementation  of  the  1997  and  2000  reforms.
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 Table  1.1
 Interstate  Per-  Line  Access  Charges  (National  Average  per  Month  per  Line)  1/
 Charged  to  End  Users  2/  Charged  to  Long  Distance  Carriers  3/  (Subscriber  Line  Charges)  (Presubscribed  Interexchange  Carrier  Charges)
 Residential  and  Non-  Primary  Multiline  Non-  Primary  Multiline  Centrex
 From  To  Single-  Line  Residential  Business  Residential  Business
 Business  and  Centrex
 05/  26/  84  05/  31/  85  $0.00  $4.99
 06/  01/  85  09/  30/  85  1.00  4.99
 10/  01/  85  05/  31/  86  1.00  4.97
 06/  01/  86  12/  31/  86  2.00  4.97
 01/  01/  87  06/  30/  87  2.00  5.12
 07/  01/  87  12/  31/  87  2.60  5.12
 01/  01/  88  11/  30/  88  2.60  5.01
 12/  01/  88  03/  31/  89  3.20  5.01
 04/  01/  89  12/  31/  89  3.50  4.94
 01/  01/  90  06/  30/  90  3.48  4.84
 07/  01/  90  12/  31/  90  3.48  4.83
 01/  01/  91  06/  30/  91  3.48  4.77
 07/  01/  91  11/  27/  91  3.49  4.74
 11/  28/  91  06/  30/  92  3.49  4.76
 07/  01/  92  06/  30/  93  3.49  4.68
 07/  01/  93  06/  30/  94  3.50  5.37
 07/  01/  94  06/  30/  95  3.50  5.45
 07/  01/  95  06/  30/  96  3.50  5.50
 07/  01/  96  06/  30/  97  3.50  5.53
 07/  01/  97  12/  31/  97  3.50  5.68
 01/  01/  98  06/  30/  98  3.50  $4.98  6.92  $0.49  $1.50  $2.52  $0.35
 07/  01/  98  12/  31/  98  3.50  4.99  7.11  0.49  1.38  2.38  0.38
 01/  01/  99  06/  30/  99  3.50  5.88  7.05  0.49  1.38  2.22  0.32
 07/  01/  99  12/  31/  99  3.50  5.84  6.94  0.95  1.77  2.78  0.42
 01/  01/  00  06/  30/  00  3.50  5.81  6.94  0.92  1.70  2.44  0.35
 08/  11/  00  06/  30/  01  4/  4.28  5.99  6.88  0.00  0.00  2.30  0.37
 07/  01/  01  12/  31/  01  4.78  6.66  0.00  0.00  1.35  0.22
 Source:  Industry  Analysis  Division,  Monitoring  Report  and  access  tariff  filings.
 4/  Although  the  charges  took  effect  on  July  1,  2000,  some  companies  made  adjustments  to  the  tariffs  which  did  not  take  effect  until  August  11,  2000.
 Rates  in  Effect
 1/  This  table  shows  average  rates  (weighted  by  access  lines)  for  all  local  exchange  carriers  (LECs)  that  file  access  tariffs  subject  to  price-  cap  regulation
 and  all  LECs  in  the  National  Exchange  Carrier  Association  (NECA)  pool.
 2/  Prior  to  1/  01/  98,  carriers  did  not  charge  separate  subscriber  line  charge  (SLC)  rates  for  primary  and  non-  primary  residential  lines.  Therefore,  the
 residential  and  single-  line  business  average  SLCs  reported  prior  to  1/  01/  98  include  all  residential  SLC  charges.  The  average  residential  and  single-  line
 business  SLC  rate  as  of  1/  01/  98  excludes  non-  primary  residential  SLCs.  Non-  primary  SLCs  are  now  reported  separately,  except  for  the  LECs  in  the
 NECA  pool,  which  continue  to  charge  a  single  residential  SLC.  Under  price-  cap  regulation,  as  of  July  1,  2001,  the  caps  on  SLCs  for  primary  residential
 and  single-  line  business,  non-  primary  residential,  and  multiline  business  and  Centrex  lines  equal  $5.00,  $7.00,  and  $9.20,  respectively.  For  NECA  pool
 companies,  the  residential  SLC  cap  is  $3.50,  while  the  multiline  business  and  Centrex  SLC  cap  equals  $6.00.
 3/  On  1/  01/  98,  price-  cap  carriers  began  to  charge  presubscribed  interexchange  carrier  charges  (PICCs).  The  reported  PICCs  are  averages  per  line
 including  both  price-  cap  and  NECA  pool  lines.  While  carriers  did  not  charge  different  rates  for  Centrex  and  multiline  business  SLCs,  they  did  charge
 different  PICC  rates  for  these  lines.  Therefore,  the  average  multiline  business  and  Centrex  PICC  rates  are  reported  separately.  However,  multiline
 business  line  counts,  used  to  compute  average  PICC  rates,  include  Centrex  lines  for  LECs  in  the  NECA  pool,  which  do  not  charge  PICCs  or  distinguish  in
 access  filings  between  the  two  line  types.  On  7/  01/  00,  price-  cap  carriers  stopped  charging  residential  and  single-  line  business  PICCs.  Therefore,  under
 price-  cap  regulation,  as  of  July  1,  2000,  the  caps  on  PICCs  for  multiline  business  lines  equal  $4.31.  Centrex  groups  of  9  or  fewer  lines  are  capped  at  the
 multiline  business  PICC  rate  of  $4.31  per  group.  Centrex  groups  with  more  than  9  lines  are  capped  at  $0.48  per  line  (1/  9th  the  multiline  business  rate).
 Residential  and
 Single-  Line
 Business
 5.93
 1  -  5
10
 Table  1.2
 Interstate  Per-  Minute  Access  Charges  (National  Average  in  Cents  per  Minute)  1/
 Interstate  Charges  for  Switched  Access  Service
 Total  Charge  per
 Conversation  Minute  3/
 05/  26/  84  01/  14/  85  5.24    5.24    3.10    17.26    01/  15/  85  05/  31/  85  5.43  5.43  3.10  17.66
 06/  01/  85  09/  30/  85  4.71  4.71  3.10  16.17  10/  01/  85  05/  31/  86  4.33  4.33  3.10  15.38
 06/  01/  86  12/  31/  86  3.04  4.33  3.10  14.00  01/  01/  87  06/  30/  87  1.55  4.33  3.10  12.41
 07/  01/  87  12/  31/  87  0.69  4.33  3.10  11.49  01/  01/  88  11/  30/  88  0.00  4.14  3.10  10.56
 12/  01/  88  02/  14/  89  0.00  3.39  3.00  9.60  02/  15/  89  03/  31/  89  0.00  3.25  3.00  9.46
 04/  01/  89  12/  31/  89  1.00  1.83  3.00  9.11  01/  01/  90  06/  30/  90  1.00  1.53  2.50  7.78
 07/  01/  90  12/  31/  90  1.00  1.23  2.50  7.48  01/  01/  91  06/  30/  91  1.00  1.14  2.40  7.18
 07/  01/  91  06/  30/  92  0.88  1.06  2.40  6.97  07/  01/  92  06/  30/  93  0.79  0.95  2.40  6.76
 07/  01/  93  06/  30/  94  0.88  1.16  2.20  6.66  07/  01/  94  06/  30/  95  0.84  1.08  2.10  0.28    6.89
 07/  01/  95  06/  30/  96  0.74  0.89  1.96  0.21  6.16  07/  01/  96  06/  30/  97  0.72  0.89  1.95  0.17  6.04
 07/  01/  97  12/  31/  97  0.64  0.84  1.63  0.14  5.18  01/  01/  98  06/  30/  98  0.68  0.23  1.29  0.21  4.04
 07/  01/  98  12/  31/  98  0.91  0.20  0.99  0.30  3.82  01/  01/  99  06/  30/  99  0.82  0.16  0.98  0.32  3.71
 07/  01/  99  12/  31/  99  0.37  0.10  0.86  0.28  2.82  01/  01/  00  06/  30/  00  0.32  0.10  0.86  0.31  2.85
 08/  11/  00  06/  31/  00  4/  0.23  0.07  0.52  0.26  1.91  07/  01/  01  12/  31/  02  0.15  0.07  0.48  0.24  1.71
 Source:  Industry  Analysis  Division,  Monitoring  Report  and  access  tariff  filings.
 4/  Although  the  charges  took  effect  on  July  1,  2000,  some  companies  made  adjustments  to  the  tariffs  which  did  not  take  effect  until
 August  11,  2000.
 1/  This  table  shows  average  rates  (weighted  by  minutes  of  use)  for  all  local  exchange  carriers  (LECs)  that  file  access  tariffs  subject  to
 price-  cap  regulation  and  all  LECs  in  the  National  Exchange  Carrier  Association  (NECA)  pool.  The  average  rates  reported  here  do  not
 include  the  average  revenue  per  minute  from  subscriber  line  charges  (SLCs)  or  primary  interexchange  carrier  charges  (PICCs),  both  of
 which  are  reported  in  Table  1.1.
 2/  Non-  traffic-  sensitive  charges  include  charges  assessed  on  a  per-  month,  per-  unit  basis.  Prior  to  07/  01/  94,  these  charges  were  included
 in  the  average  traffic-  sensitive  rates.
 3/  The  total  charge  per  conversation  minute  consists  of  charges  on  the  originating  end  of  the  call,  which  are  adjusted  for  dialing  and  call
 setup  time,  plus  charges  on  the  terminating  end.  Originating  charges  per  conversation  minute  equal  the  carrier  common  line  charge  per
 originating  access  minute  plus  the  traffic-  sensitive  charge  per  switched  minute,  both  multiplied  by  1.07  to  account  for  dialing  and  call
 setup  time,  plus  the  non-  traffic-  sensitive  charge  per  switched  minute.  Terminating  charges  per  conversation  minute  equal  carrier
 common  line  charges  per  terminating  access  minute  plus  both  traffic-  sensitive  and  non-  traffic-  sensitive  charges  per  switched  minute.
 Minute  1/
 Carrier  Common  Line
 per  Terminating  Access
 Minute  1/
 Carrier  Common  Line
 per  Originating  Access  Minute  2/
 Traffic  Sensitive
 per  Switched  Minute
 Non-  Traffic
 Rates  in  Effect
 From  To  Sensitive  per  Switched
 1  -  6
11
 Table  1.3
 Interstate  Per-  Line  Access  Charges  by  Carrier
 (In  Dollars  per  Month  per  Line)  1/
 Rates  Effective  from  07/  01/  01  to  12/  31/  01
 Subscriber  Line  Charges  Presubscribed  Interexchange  Carrier  Charges  2000  Average  Monthly  Access  Lines  2/
 (Thousands)
 Company  Residential  Non-  Primary  Multiline  Residential  Non-  Primary  Multiline  Centrex  Residential  Non-  Primary  Multiline
 and  Residential  Business  and  Residential  Business  and  Residential  Business
 Single-  Line  and  Single-  Line  Single-  Line  and
 Business  Centrex  Business  Business  Centrex
 BellSouth  $5.00  $6.95  $7.84  0.00  0.00  $2.94  $0.32  15,105  2,615  6,675
 Cincinnati  Bell  5.00  6.07  5.32  0.00  0.00  0.00  0.00  653  86  293
 Citizens  4.97  6.80  8.56  0.00  0.00  2.90  0.46  1,379  111  407
 Global  Crossing  4.71  5.91  8.03  0.00  0.00  1.02  0.28  644  93  264
 Iowa  Telecom  5.00  7.00  9.20  0.00  0.00  4.31  0.59  99  5  19
 Qwest  4.97  6.53  7.87  0.00  0.00  0.69  0.18  10,031  1,864  4,763
 SBC  4.75  4.84  5.21  0.00  0.00  0.19  0.04  30,776  6,991  18,550
 Sprint  4.91  6.38  7.95  0.00  0.00  2.37  0.44  5,281  828  1,850
 Verizon  4.99  6.39  7.37  0.00  0.00  2.19  0.56  33,959  7,059  16,595  Price  Caps  4.91  5.93  6.69  0.00  0.00  1.41  0.22  97,927  19,652  49,416
 NECA  3.50  NA  5.97  NA  NA  0.00  NA  9,642  NA  2,163  Price  Caps
 and  NECA  $4.78  $5.93  $6.66  $0.00  $0.00  $1.35  $0.22  107,569  19,652  51,579
 NA  -  Not  Available.
 Source:  Access  tariff  filings.
 1/  This  table  shows  average  rates  (weighted  by  access  lines)  for  all  local  exchange  carriers  (LECs)  that  file  access  tariffs  subject  to  price-  cap  regulation  and  all  LECs  in  the  National
 Exchange  Carrier  Association  (NECA)  pool.  Rates  are  composites  of  all  regions  and  subsidiaries  of  each  local  exchange  carrier.  No  information  is  available  for  those  carriers  that  are
 not  in  the  NECA  pool,  but  are  subject  to  rate-  of-  return  regulation.
 2/  Access  line  counts  measure  lines  that  companies  report  as  qualified  to  receive  subscriber  line  charges  (SLCs).  ISDN-  BRI  lines,  which  are  charged  non-  primary  SLC  and  PICC
 rates,  are  included  in  the  non-  primary  residential  line  counts.  ISDN-  PRI  lines,  which  are  charged  rates  equal  to  five  times  the  multiline  business  SLC  and  PICC  rates,  are  multiplied  by
 five  and  added  to  multiline  business  counts.
 1  -  7
12
 Table  1.4
 Interstate  Per-  Minute  Access  Charges  by  Carrier  (In  Cents  per  Minute)  1/
 Rates  Effective  from  7/  1/  01-  12/  31/  01  Year  2000  Minutes  of  Use
 Carrier  (Millions)
 Common
 Line  per
 Company  Originating
 Access  CCL  CCL  Local
 Minute  Originating  Terminating  Switching
 BellSouth  0.00    0.00    0.36    0.18    1.10    27,845  57,012  83,187
 Cincinnati  Bell  0.00  0.00  0.51  0.21  1.49  1,042  2,162  3,215
 Citizens  0.57  0.00  0.87  0.65  3.69  2,747  2,865  5,680
 Global  Crossing  0.05  0.00  0.61  0.41  2.15  575  1,583  2,160
 Iowa  Telecom  0.81  0.00  0.84  0.15  2.90  134  185  331
 Qwest  0.00  0.00  0.54  0.18  1.47  21,018  39,686  61,107
 SBC  0.00  0.00  0.43  0.21  1.30  64,610  92,623  158,985
 Sprint  0.03  0.00  0.63  0.17  1.68  10,375  15,681  26,235
 Verizon  0.20  0.00  0.44  0.21  1.54  58,300  131,143  190,087
 Price  Caps  0.07  0.00  0.45  0.21  1.42  186,646  342,940  530,987
 NECA  1.00  1.40  1.59  1.43  8.62  16,085  17,824  17,354
 All  Price  Caps
 and  NECA  0.15    0.07    0.48    0.24    1.71    202,731  360,764  548,341
 Source:  Access  tariff  filings.
 2/  Non-  traffic  sensitive  charges  include  charges  assessed  on  a  per-  month,  per-  unit  basis.  Prior  to  07/  01/  94  these  charges  were  included  in  the  average  traffic-sensitive
 rates.
 3/  The  total  charge  per  conversation  minute  consists  of  charges  on  the  originating  end  of  the  call,  which  are  adjusted  for  dialing  and  call  setup  time,  plus
 charges  on  the  terminating  end.  Originating  charges  per  conversation  minute  equal  the  carrier  common  line  charge  per  originating  access  minute  plus  the
 traffic-  sensitive  charge  per  switched  minute,  both  multiplied  by  1.07  to  account  for  dialing  and  call  setup  time,  plus  the  non-  traffic-  sensitive  charge  per
 switched  minute.  Terminating  charges  per  conversation  minute  equal  carrier  common  line  charges  per  terminating  access  minute  plus  both  traffic-  sensitive
 and  non-  traffic-  sensitive  charges  per  switched  minute.
 Access
 Minute  2/
 Access
 Minute
 1/  This  table  shows  average  rates  (weighted  by  minutes  of  use)  for  all  local  exchange  carriers  (LECs)  that  file  access  tariffs  subject  to  price-  cap  regulation  and
 all  LECs  in  the  National  Exchange  Carrier  Association  (NECA)  pool.  Rates  are  composites  of  all  regions  and  subsidiaries  of  each  local  exchange  carrier.  No
 information  is  available  for  those  carriers  that  are  not  in  the  NECA  pool,  but  are  subject  to  rate-  of-  return  regulation.  The  average  rates  reported  here  do  not
 include  the  average  revenue  per  minute  from  subscriber  line  charges  (SLCs)  or  primary  interexchange  carrier  charges  (PICCs),  both  of  which  are  reported  in
 Table  1.1.
 Access
 Minute
 Total
 Charge  per
 Conversation
 Minute  3/
 Switched
 Non-  Traffic
 Sensitive
 per
 Carrier
 Common
 Line  per
 Terminating
 Switched
 Traffic
 Sensitive
 per
 1  -  8
13
 2-  1
 2  Advanced  Telecommunications
 Congress  directed  the  Commission  and  the  states,  in  section  706  of  the  Telecommunications  Act  of  1996,  to  encourage  deployment  of  advanced  telecommunications  capability  in  the  United  States
 on  a  reasonable  and  timely  basis.  To  assist  in  its  evaluation  of  such  deployment,  the  Commission  launched  a  formal  data  collection  program  (FCC  Form  477)  to  gather  standardized  information  about
 subscribership  to  high-  speed  services,  including  advanced  services,  from  wireline  telephone  companies,  cable  TV  companies,  terrestrial  wireless  providers,  satellite  providers,  and  any  other  facilities-  based
 providers  of  advanced  telecommunications  capability.
 A  facilities-  based  provider  of  high-  speed  service  lines  (or  wireless  channels)  in  a  given  state  reports  to  the  Commission  basic  information  about  its  service  offerings  and  customers  if  the  provider  has
 at  least  250  such  lines  in  service  in  that  state.  While  providers  not  meeting  the  reporting  threshold  may  provide  information  on  a  voluntary  basis,  as  some  have  done,  we  have  no  assurance  that  all  such
 providers  have  reported  data.
 Table  2.1  shows  high-  speed  lines  (over  200  kbps  in  at  least  one  direction)  for  the  following  types  of  technology:  Asymmetric  digital  subscriber  lines  (ADSL),  wireline  other  than  ADSL,  coaxial
 cable,  fiber,  and  satellite  and  fixed  wireless.  ADSL  technologies  provide  speed  in  one  direction  greater  than  speed  in  the  other  direction.  Wireline  technologies  other  than  ADSL  include  traditional  telephone
 company  high-  speed  services  and  symmetric  DSL  services  that  provide  equivalent  functionality.  Coaxial  cable  includes  the  typical  hybrid  fiber-  coax  (HFC)  architecture  of  upgraded  cable  TV  systems.
 Optical  fiber  technologies  are  fiber  to  the  subscribers  premises  (e.  g.,  fiber-  to-  the-  home,  or  FTTH).  Satellite  and  fixed  terrestrial  wireless  systems  use  radio  spectrum  to  communicate  with  a  radio
 transmitter  attached  to  the  subscribers  premises.
 Table  2.2.  shows  advanced  services  lines  (over  200  kbps  in  both  directions)  by  the  above  technologies  and  Table  2.3  shows  residential  and  small  business  high-  speed  lines  (over  200  kbps  in  at
 least  one  direction)  for  the  above  technologies.  Table  2.4  shows  high-  speed  lines  by  state  for  the  above  technologies.
14
 2-  2
15
 Types  of  Technology  1/  December  1999  June  2000  2/  December  2000
 ADSL  369,792  951,583  1,977,377  435  %  108  %
 Other  Wireline  609,909  764,099  1,063,563  74  39
 Coaxial  Cable  1,414,183  2,284,491  3,576,378  153  57
 Fiber  312,204  307,151  376,506  NM  NM
 Satellite  &  Fixed  Wireless  50,404  65,615  112,405  NM  NM
 Total  Lines  2,756,492  4,372,939  7,106,229  158  %  63  %
 Types  of  Technology  1/  December  1999  June  2000  2/  December  2000
 ADSL  185,950  326,816  675,642  263  %  107  %
 Other  Wireline  609,909  764,099  1,063,563  74  39
 Coaxial  Cable  879,671  1,469,130  2,194,002  149  49
 Fiber  307,315  301,143  376,417  NM  NM
 Satellite  &  Fixed  Wireless  7,816  3,649  26,906  NM  NM
 Total  Lines  1,990,662  2,864,838  4,336,530  118  %  51  %
 Types  of  Technology  1/  December  1999  June  2000  2/  December  2000
 ADSL  291,757  772,272  1,595,155  447  %  107  %
 Other  Wireline  46,856  116,995  218,641  367  87
 Coaxial  Cable  1,404,600  2,215,259  3,288,034  134  48
 Fiber  1,023  325  1,994  NM  NM
 Satellite  &  Fixed  Wireless  50,404  64,320  102,432  NM  NM
 Total  Lines  1,794,640  3,169,170  5,206,257  190  %  64  %
 (Over  200  kbps  in  at  Least  One  Direction)
 Percent  Change
 Percent  Change
 (Over  200  kbps  in  at  Least  One  Direction)
 High-  Speed  Lines  Table  2.1
 Dec  1999-
 Dec  2000
 June  2000-
 Dec  2000
 Percent  Change
 (Over  200  kbps  in  Both  Directions)
 Advanced  Services  Lines  Table  2.2
 Dec  1999-
 Dec  2000
 June  2000-
 Dec  2000
 NM  -  Not  meaningful  due  to  inconsistencies  in  reported  data.
 Source:  Form  477  Filings.
 1/  The  mutually  exclusive  types  of  technology  are,  respectively:  Asymmetric  digital  subscriber  line  (ADSL)  technologies,  which
 provide  speeds  in  one  direction  greater  than  speeds  in  the  other  direction;  wireline  technologies  "other"  than  ADSL,  including
 traditional  telephone  company  high-  speed  services  and  symmetric  DSL  services  that  provide  equivalent  functionality;  coaxial
 cable,  including  the  typical  hybrid  fiber-  coax  (HFC)  architecture  of  upgraded  cable  TV  systems;  optical  fiber  to  the  subscriber's
 premises  (e.  g.,  Fiber-  to-  the-  Home,  or  FTTH);  and  satellite  and  (terrestrial)  fixed  wireless  systems,  which  use  radio  spectrum  to
 communicate  with  a  radio  transmitter  at  the  subscriber's  premises.
 2/  Data  for  June  2000  have  been  revised.
 Residential  and  Small  Business  High-  Speed  Lines  Table  2.3
 Dec  1999-
 Dec  2000
 June  2000-
 Dec  2000
 2  -  3
16
 December  1999  June  2000
 Total  Total  ADSL  Coaxial  Cable  Other  1/  Total
 Alabama  19,796  32,756  12,320  36,432  14,582  63,334  220  %  93  %
 Alaska  0  *  0  0  934  934
 Arizona  58,825  111,678  32,395  *  *  153,500  161  37
 Arkansas  8,155  15,539  *  *  *  28,968  255  86
 California  547,179  910,006  622,894  476,544  287,187  1,386,625  153  52
 Colorado  36,726  64,033  42,810  *  *  104,534  185  63
 Connecticut  36,488  63,772  22,348  78,234  11,210  111,792  206  75
 Delaware  1,558  3,660  *  *  *  7,492  381  105
 District  of  Columbia  13,288  16,926  *  *  13,627  27,757  109  64
 Florida  190,700  244,678  115,133  255,978  89,684  460,795  142  88
 Georgia  75,870  130,292  56,588  75,474  71,793  203,855  169  56
 Hawaii  *  *  *  *  *  *
 Idaho  *  8,070  *  *  *  15,908  97
 Illinois  77,672  166,933  48,278  126,490  67,471  242,239  212  45
 Indiana  20,059  49,702  6,442  37,052  17,000  60,494  202  22
 Iowa  19,258  49,159  *  48,008  *  58,199  202  18
 Kansas  26,179  42,679  14,281  48,541  5,921  68,743  163  61
 Kentucky  23,570  24,237  16,327  *  *  32,731  39  35
 Louisiana  28,133  43,294  22,788  *  *  74,950  166  73
 Maine  19,878  17,864  *  *  *  26,266  32  47
 Maryland  52,749  71,005  *  65,668  *  124,465  136  75
 Massachusetts  114,116  185,365  53,700  210,019  25,728  289,447  154  56
 Michigan  81,223  135,318  25,482  130,296  42,452  198,230  144  46
 Minnesota  38,268  65,272  40,870  64,215  12,809  117,894  208  81
 Mississippi  *  6,514  *  *  *  12,305  89
 Missouri  23,347  46,903  38,759  42,255  19,389  100,403  330  114
 Montana  *  *  1,760  *  *  7,378
 Nebraska  36,748  44,188  *  *  4,729  54,085  47  22
 Nevada  23,514  40,582  10,023  *  *  59,879  155  48
 New  Hampshire  22,807  33,045  3,339  *  *  42,364  86  28
 New  Jersey  101,832  144,203  59,332  *  *  285,311  180  98
 New  Mexico  *  2,929  *  *  21,207  28,497  873
 New  York  186,504  342,743  124,146  377,521  101,820  603,487  224  76
 North  Carolina  57,881  81,998  24,091  73,092  39,798  136,981  137  67
 North  Dakota  *  3,467  *  *  2,723  6,380  84
 Ohio  160,792  156,980  55,046  121,196  47,603  223,845  39  43
 Oklahoma  *  163,703  *  *  67,511  95,138  -42
 Oregon  27,062  44,186  31,644  *  *  76,839  184  74
 Pennsylvania  71,926  79,892  60,083  85,104  31,483  176,670  146  121
 Puerto  Rico  *  *  0  0  *  *
 Rhode  Island  *  20,628  *  *  *  30,919  50
 South  Carolina  25,229  32,824  5,168  44,812  13,934  63,914  153  95
 South  Dakota  *  7,991  *  *  10,264  11,799  48
 Tennessee  66,307  87,317  13,705  77,760  31,016  122,481  85  40
 Texas  152,518  276,087  158,513  227,070  136,955  522,538  243  89
 Utah  11,635  19,612  17,352  *  *  35,970  209  83
 Vermont  *  1,551  *  *  *  7,773  401
 Virgin  Islands  0  0  0  0  *  *
 Virginia  51,305  72,436  26,750  78,585  34,580  139,915  173  93
 Washington  71,930  118,723  79,130  *  *  195,628  172  65
 West  Virginia  *  1,835  *  *  1,517  6,498  254
 Wisconsin  18,599  34,262  8,623  *  *  76,257  310  123
 Wyoming  *  *  *  *  *  *
 Nationwide  Reported  Total  2,756,492  4,372,939  1,977,377  3,576,378  1,552,474  7,106,229  158  %  63  %
 NA  -  Not  Available.
 NA
 NA
 NA
 NA
 NA
 Table  2.4
 High-  Speed  Lines  by  Technology
 (Over  200  kbps  in  at  Least  One  Direction)
 NA
 NA
 NA
 NA
 NA
 Percentage  Change
 June  2000-
 Dec  2000
 NA
 NA
 NA
 NA
 NA
 NA
 Source:  Industry  Analysis  Division,  High-  Speed  Services  for  Internet  Access:  Subscribership  as  of  December  31,  2001.
 1/  Other  includes  wireline  technologies  other  than  asymmetric  digital  subscriber  line  (ADSL),  optical  fiber  to  the  subscriber's  premises,  satellite,  and  (terrestrial)
 fixed  wireless  systems.
 *  Data  withheld  to  maintain  firm  confidentiality.
 December  2000
 Dec  1999-
 Dec  2000
 NA
 NA
 NA
 NA
 NA
 2  -  4
17
 3-  1
 3  Consumer  Expenditures
 The  Bureau  of  Labor  Statistics  conducts  surveys  of  consumer  expenditures,  in  part,  to  develop  weights  for  CPI  indices.  Table  3.1  shows  expenditures  for  telephone  service  for  all  consumer  units.
 About  2%  of  all  consumer  expenditures  are  devoted  to  telephone  service.  This  percentage  has  remained  virtually  unchanged  over  the  past  15  years,  despite  major  changes  in  the  telephone  industry
 and  in  telephone  usage.  Average  annual  expenditures  on  telephone  service  increased  from  $325  per  household  in  1980  to  $849  in  1999.
 Bill  harvesting  data  collected  by  TNS  Telecoms,  provide  information  on  the  telecommunications  expenditures  of  households.  Expenditures  can  be  classified  by  the  type  of  carrier  providing  the  service.
 Table  3.2  presents  average  monthly  household  expenditures  for  local  exchange,  long  distance  and  wireless  carriers  for  1995  through  2000.  Further  information  on  TNS  Telecoms  and  the  bill  harvesting
 data  can  be  found  in  Section  15.
18
 3-  2
19
 1981  $17,558  $360  2.1  %
 1982  18,071  375  2.1
 1983  19,692  415  2.1
 1984  21,975  435  2.0
 1985  23,490  455  1.9
 1986  23,866  471  2.0
 1987  24,414  499  2.0
 1988  25,892  537  2.1
 1989  27,810  567  2.0
 1990  28,381  592  2.1
 1991  29,614  618  2.1
 1992  29,846  623  2.1
 1993  30,692  658  2.1
 1994  31,731  690  2.2
 1995  32,264  708  2.2
 1996  33,797  772  2.3
 1997  34,819  809  2.3
 1998  35,535  830  2.3
 1999  36,995  849  2.3
 Source:  Consumer  Expenditure  Survey,  Bureau  of  Labor  Statistics.
 Table  3.1
 Annual  Expenditures
 for  All  Households  Telephone  Expenditures  as
 a  Percent  of  All
 Expenditures
 Chart  3.1
 Year  All
 Expenditures
 Telephone
 Expenditures
 Household  Expenditures  for  Telephone  Service
 Monthly  Telephone  Service  Expenditures
 $0
 $20
 $40
 $60
 $80
 1981  1983  1985  1987  1989  1991  1993  1995  1997  1999
 3  -  3
20
 Wireless
 Carriers
 1995  $30  $21  $5  $56
 1996  30  21  7  58
 1997  32  25  8  65
 1998  33  23  10  66
 1999  34  21  9  64
 2000  35  18  11  63
 2/  This  sample  does  not  include  households  from  Alaska  and  Hawaii.
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and  Associates),  Telecoms
 Market  MonitorTM  .
 Table  3.2
 3/  Includes  incumbent  local  exchange  carriers  and  competitive  local  exchange  carriers.  Does  not  include  DSL
 or  other  high-  speed  services.
 Average  Monthly  Household  Telecommunications  Expenditures  by  Type  of  Provider  1/  2/
 1/  Household  payments  to  long  distance  and  wireless  carriers  are  based  on  monthly  household  bills  for  those
 households  with  wireline  telephone  service.
 Local  Exchange
 Carriers  3/
 Long  Distance
 Carriers  Total
 3  -  4
21
 4-  1
 4  Earnings
 Beginning  in  the  mid-  1980s,  local  exchange  carriers  that  file  access  tariffs  with  the  Commission  were  required  to  file  rate  of  return  reports  (FCC  Form  492).  The  first  reports  were  filed  for  the
 monitoring  period  October  1,  1985  -  December  31,  1986.  Carriers  filed  reports  for  each  subsequent  two-  year  monitoring  period  (1987-  88  and  1989-  90).
 In  1991,  carriers  that  became  subject  to  price-  cap  incentive  regulation  began  filing  reports  on  a  yearly  basis.  Non-  price-  cap  carriers  continued  to  file  reports  for  each  two-  year  monitoring  period
 (1991-  1992,  1993-  1994,  1995-  1996,  1997-  1998,  and  1999-  2000)  as  well  as  annual  reports  for  1991,  1993,  1995,  1997,  and  1999.  Rate-  of-  return  reports  were  previously  required  for  AT&  T  but
 have  been  discontinued.  Table  4.1  is  a  summary  of  rates  of  return  for  1991-  2000  for  price-  cap  carriers.
 The  rates  of  return  were  posted  at  the  time  of  the  carrier's  individual  Form  492  filings.  They  do  not  reflect  revisions  filed  by  the  carriers  at  a  later  date.  Thus,  they  are  not  necessarily  the  official
 versions  for  regulatory  purposes,  but  they  do  illustrate  general  industry  trends.  Copies  of  the  individual  carrier's  Form  492  reports  are  on  file  in  the  FCC's  Reference  Information  Center,  Courtyard  Level,
 445  12th  Street  S.  W.,  Washington,  D.  C.
22
 4-  2
23
 Table  4.1  Interstate  Rate-  of-  Return  Summary  *
 Years  1991  Through  2000  Price-  Cap  Companies  Reporting  FCC  Form  492A
 (Final  Reports  for  1991  Through  1999  and  Initial  Report  for  2000)
 Reporting  Entity  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 AT&  T  Communications  1/  13.40  %  12.77  %  13.49  %  13.26  %
 1  BellSouth  Telephone  Companies  12.62  12.80  13.68  15.92  15.78  %  16.40  %  17.91  %  20.80  %  20.99  %  22.61  %
 2  Qwest  Corporation,  Including  Malheur  and  El  Paso  2/  3/  12.40  12.41  13.62  12.40  12.00  13.64  15.41  16.56  19.06  19.78
 SBC  Communications,  Inc.  4/
 3  Southwestern  Bell  Telephone  Company  5/  10.75  11.80  12.91  13.01  13.38  11.63  10.32  9.91  10.22  14.56
 4  Ameritech  Operating  Companies  5/  13.00  12.79  14.80  13.39  16.78  18.27  18.22  22.59  28.93  29.71
 5  Nevada  Bell  5/  12.98  14.51  17.44  17.92  17.31  17.75  19.47  16.02  19.26  22.07
 6  Pacific  Bell  5/  11.85  12.68  12.89  14.93  15.76  17.68  11.98  16.50  21.01  19.30
 7  Southern  New  England  Telephone  Company  5/  8.56  12.90  11.52  11.34  11.58  11.64  12.70  10.99  12.12  23.91
 Verizon  Companies  6/
 8  Bell  Atlantic  dba  Verizon  Communications  7/  13.66  13.36
 (Former  Bell  Atlantic  Companies)
 Bell  Atlantic  12.83  12.50  14.01  14.00  13.74  11.24  14.73  13.88
 Bell  Atlantic  (NYNEX)  8/  12.50  12.55  11.79  12.12  15.23  13.72  11.40  New  England  Telephone  and  Telegraph  Co.  8.54
 New  York  Telephone  9.82
 (Former  GTE  Companies)  9/  10/  11/
 9  GTE  South  Inc.  (Kentucky  -  COKY)  12/  5.56  4.79  4.49  6.62  5.97  9.55  32.50
 10  GTE  South  Inc.  (N.  Carolina  -  CONC)  12/  10.75  14.16  11.98  16.63  12.78  19.87  17.77  GTE  South  Inc.  (S.  Carolina  -  COSC)  12/  21/  9.77  12.32  17.40  25.09  26.14
 11  GTE  South  Inc.  (Virginia  -  COVA)  12/  23.45  23.18  30.90  33.65  35.19  34.74  40.96
 12  GTE  Systems  of  The  South  (Alabama  -  COAL)  12/  12.58  11.88  9.69  15.31  7.97  10.88  14.96
 GSTC  -  South  (East  South  Contel)  12/  9.67  9.90  15.09
 13  GTE  North  Inc.  (Illinois  -  COIL)  13/  26.48  24.21  36.34  41.14  14.11  41.03  44.39
 14  GTE  North  Inc.  (Indiana  -  COIN)  13/  22.44  23.27  29.02  33.26  34.61  41.40  47.71  GTE  Midwest  Inc.  (COIA  +  COSI  =  COIT)  13/  18.31  22.39  30.39  35.04  38.27  34.16  31/
 15  GTE  Midwest  Inc.  (Missouri  -  COMO+  COCM+  COEM=  COMT)  13/  10.79  9.57  11.97  12.39  12.56  15.29  17.86
 GTE  Arkansas,  Inc.  (COAR+  COSA=  COAT)  13/  17.44  18.24  19.13  16.13  15.87  16.81  14/
 Contel  of  Minnesota  -  COMN  13/  22.12  23.81  32.38  33.81  30.00  32.07  14/
 GSTC  -  Central  (Central  Contel)  13/  11.22  10.24  16.28  16  GTE  North  Inc.  (COPA+  COQS=  COPT)  15/  12.79  17.11  22.33  32.60  36.38  40.55  36.83  45.97  39.58  40.98
 GTE  Alaska,  Inc.  (Alaska  -  GTAK)  14.69  14.84  16.13  24.78  22.48  19.44  29.58  26.89  13.34  14/
 17  GTE  California  Inc.  (California  -  GTCA)  12.45  10.73  7.05  9.08  6.95  13.72  17.68  17.19  22.01  26.45
 18  GTE  California,  Inc.  (California  -  COCA)  16/  12.19  16.03  17.63  19.16  22.71  28.28  29.08
 19  GTE  California,  Inc.  (Arizona  -  COAZ)  16/  6.24  2.95  4.15  14.17  13.80  15.57  12.17  20  GTE  California,  Inc.  (Nevada  -  CONV)  16/  27.39  19.15  25.50  31.44  24.01  20.57  28.79
 Contel  of  California,  Inc.  16/  11.87  8.51  15.43
 21  GTE  Florida  Inc.  (Florida  -  GTFL)  12.64  9.52  7.36  7.36  8.56  15.17  19.14  14.58  18.93  21.81
 22  GTE  Hawaiian  Telephone  Co.  Inc.  (Hawaii  -  GTHI)  11.75  8.98  9.18  8.15  7.87  9.42  10.55  15.64  17.62  17.98
 23  GTE  North/  GTE  South  (GTIL+  GLIL=  GAIL)  12.65  12.60  13.77  17.12  14.69  18.36  21.59  23.07  22.35  23.95
 24  GTE  North/  Contel  Systems  of  South  (GTIN+  GLIN=  GAIN)  14.16  14.17  14.50  18.21  18.80  26.23  23.61  29.06  32.47  33.87  25  GTE  North/  Contel  Systems  of  South  (GTMI+  GLMI=  GAMI)  12.89  14.21  9.82  11.10  11.45  14.85  15.33  13.17  15.75  16.50
 GTE  Midwest  Inc.  (IOWA  -  GTIA)  17/  19.05  16.49  22.68  25.59  23.59  22.71  14/
 Contel  of  Minnesota  -  GTMN  17/  (0.04)  (10.88)  (13.13)  4.01  (1.33)  3.56  14/
 GTE  North  Inc.  (Total  IA+  MN  GTE)  17/  9.97  13.69  13.16
 26  GTE  Midwest  Inc.  (Missouri  -  GTMO)  13.30  13.99  13.48  18.20  17.18  19.84  17.88  16.08  11.82  19.32  GTE  Midwest  Inc.  (Nebraska  -  GTNE)  8.70  12.74  13.84  20.35  21.67  28.86  27.35  30.08  35.00  14/
 27  GTE  North  Inc.  (Ohio  -  GTOH)  10.55  12.91  12.66  16.90  17.21  21.20  24.37  21.83  21.70  21.86
 28  GTE  North  Inc.  (Pennsylvania  -  GTPA)  12.82  12.42  11.72  14.81  14.02  18.91  20.62  14.67  21.41  22.06
 29  GTE  North  Inc.  (Wisconsin  -  GTWI)  10.43  13.00  13.85  13.65  13.96  17.99  18.75  16.08  17.85  17.04
 30  GTE  Northwest  Inc.  (Oregon  -  GTOR)  18/  20/  16.20  18.89  23.50  28.23  27.03  31.56  31.01  31  GTE  Northwest  Inc.  (Washington-  GTWA)  18/  13.67  15.87  21.60  24.41  27.33  32.91  33.40
 32  GTE  Northwest  Inc.  (West  Coast  CA  -  GNCA)  18/  (15.37)  (16.99)  (24.03)  (25.83)  (6.85)  (9.93)  (8.40)
 GTE  Northwest  Inc.  (Total  OR+  WA+  NWCA  GTE)  18/  11.83  10.82  9.90
 33  GTE  Northwest  Inc.  (Idaho  -  GTID)  19/  19.60  20.78  23.94  30.52  30.89  32.24  34.26
 GTE  Northwest  Inc.  (Montana  -  GTMT)  19/  15.37
 GTE  Northwest  Inc.  (Total  ID  +  MT  GTE)  19/  14.53  17.34  16.00  34  GTE  Northwest  Inc.  (Washington  -  COWA)  20/  18.07  22.24  29.43  31.85  30.41  39.17  39.42
 GTE  Northwest  Inc.  (Contel  Oregon  -  COOR)  19/  20/  9.18
 GTE  Systems  of  Northwest  (Northwest  Contel)  20/  8.96  10.26  18.09
 35  GTE  South  Inc.  (Alabama  -  GTAL)  21/  11.83  11.39  17.68  23.49  17.59  22.23  20.48
 36  GTE  South  Inc.  (Kentucky  -  GTKY)  21/  10.96  13.89  18.46  20.57  22.34  24.03  22.86  37  GTE  South  Inc.  (North  Carolina  -  GTNC)  21/  19.02  14.99  23.83  24.48  27.92  24.85  26.43
 GTE  South  Inc.  (South  Carolina  -  GTSC)  21/  17.60  18.93  25.70  24.06  30.62
 38  GTE  South  Inc.  (GTSC+  COSC=  GTST)  21/  30.70  31.70
 39  GTE  South  Inc.  (Virginia  -  GTVA)  21/  9.29  10.91  11.07  23.76  20.56  9.94  6.44
 GTE  South  Inc.  (Total  South  GTE)  21/  11.50  12.61  11.91  GTE  Southwest  Inc.  (Arkansas  -  GTAR)  22/  0.65  (1.57)  (1.97)  3.21  5.17  4.15  14/
 GTE  Southwest  Inc.  (New  Mexico  -  GTNM)  22/  10.00  17.18  24.60  24.21  31.79  39.34  14/
 GTE  Southwest  Inc.  (Oklahoma  -  GTOK)  22/  6.44  6.70  10.77  14.90  15.97  18.86  14/
 40  GTE  Southwest  Inc.  (Texas  -  GTTX)  22/  7.24  7.11  11.53  14.81  16.43  21.42  21.74
 GTE  Southwest  Inc.  (Total  Southwest  GTE)  22/  10.22  11.52  9.00
 4  -  3
24
 Table  4.1  Interstate  Rate-  of-  Return  Summary  *
 Years  1991  Through  2000  Price-  Cap  Companies  Reporting  FCC  Form  492A  -  Continued
 (Final  Reports  for  1991  Through  1999  and  Initial  Report  for  2000)
 Reporting  Entity  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 41  GTE  Southwest  Inc.  (Texas  -  COTX)  15/  10.22  9.64  17.89  8.29  14.62  22.42  18.10  14.96  17.13  12.87
 GTE  Southwest  Inc.  (New  Mexico  -  CONM)  23/  27.57  47.29  42.53  48.69  47.21  28.68  14/
 Contel  of  the  West  dba  GTE  West  (Arizona  only  -  COWZ)  23/  14.86  GTE  West  (West  Contel)  23/  10.51  13.81  17.26
 42  Micronesian  Telecomms.  Corp.  (N.  Mariana  Islands  -  GTMC)  24/  2.53  7.49  15.49  21.17  34.45  29.24  1.87
 GTE  New  York  (New  York  Contel)  25/  9.90  8.60  12.10
 GSTC  -  North  (East  North  Contel)  25/  10.36  10.15  15.51
 Sprint
 43  Central  Telephone  of  Nevada  26/  12.44  14.23  18.90  20.46  20.42  17.07  17.79  21.15  19.29
 44  Sprint  -  Florida  20.05  26.14  27.17  27.38
 Central  Telephone  of  Florida  26/  11.44  14.66  15.93  17.16  17.85
 United  Telephone  Co.  of  Florida  13.00  12.27  14.44  17.63  19.28  19.79
 45  Sprint  Local  Telephone  Cos.  -  Eastern  (NJ  &  PA)  11.71  12.32  13.98  16.12  14.87  17.42  17.36  14.59  20.87  25.62  46  Sprint  Local  Telephone  Cos.  -  Midwest  (MO,  KS,  MN,  NE,  WY,  TX)  19.97  19.66  17.69  18.88
 Central  Telephone  of  Texas  26/  14.94  16.19  18.39  21.81  21.58
 United  Telephone  -  Midwest  (MO,  KS,  MN,  NE,  WY,  TX)  14.57  15.35  13.92  17.44  19.64  21.52
 47  Sprint  Local  Telephone  Cos.  -  North  Carolina  16.54  12.55  15.92  22.23
 Central  Telephone  of  North  Carolina  11.29  11.97  14.19  15.36  15.75  Carolina  Telephone  And  Telegraph  Company  11.43  10.14  11.10  15.39  17.77  15.38
 48  Sprint  Local  Telephone  Cos.  -  Northwest  17.27  17.72  19.39  29.32  34.17  34.55  30.59  32.54  31.86  32.77
 49  Sprint  Local  Telephone  Cos.  -  Southeast  (TN,  VA,  &  SC)  17.62  15.87  17.50  23.32
 Central  Telephone  of  Virginia  26/  12.91  15.55  14.30  15.87  17.46
 United  Telephone  -  Southeast  (TN,  VA,  &  SC)  13.66  13.48  13.39  19.17  19.05  20.66  50  United  Telephone  Co.  of  Indiana,  Inc.  14.06  14.93  15.55  18.41  20.33  24.30  26.13  24.19  28.98  38.21
 51  United  Telephone  Co.  of  Ohio  12.75  12.33  13.15  16.54  15.93  16.12  13.91  17.33  20.16  20.03
 Central  Telephone  of  Illinois  26/  27/  11.54  10.18  18.87  19.55  18.40  18.92
 All  Other  Companies
 52  Aliant  Communications  Company  (ALLTEL)  28/  12.36  14.95  15.47  16.09  14.95  12.27  15.02  19.27  12.00  53  Cincinnati  Bell  Telephone  Company  29/  20.04  17.81  25.45  28.95
 54  Citizens  Telecommunications  Cos.  (Tariff  1)  30/  15.42  9.77  17.87  16.71  19.68
 55  Citizens  Telecommunications  Cos.  (Tariff  2)  30/  13.58  13.25  14.29  15.74  24.05
 56  Citizens  Telecommunications  Cos.  (Tariff  3)  15.56  16.12
 57  Citizens  Telecommunications  Cos.  (Tariff  4)  30.94  58  Citizens  Telecommunications  Cos.  (Tariff  5)  (11.23)
 59  Frontier  Telephone  of  Rochester,  Inc.  31/  32/  11.82  12.11  11.63  12.02  11.87  10.20  13.19  18.37  16.77  18.91
 60  Frontier  Tier  2  Concurring  Companies  32/  16.42  17.69  19.32  26.91  31.93  45.45  43.42  38.95
 61  Frontier  Communications  of  Minnesota  &  Iowa  32/  33/  13.71  13.65  14.99  19.65  21.90  23.71  28.26  29.28  35.40  33.16
 62  VALOR  New  Mexico  #1164  20.57  63  VALOR  New  Mexico  #1193  13.41
 64  VALOR  Oklahoma  11.17
 65  VALOR  Texas  6.70
 Maximum  Rate  of  Return  17.27  %  17.72  %  22.33  %  32.60  %  47.29  %  42.53  %  48.69  %  47.21  %  43.42  %  47.71  %
 Minimum  Rate  of  Return  8.54  8.51  7.05  (15.37)  (16.99)  (24.03)  (25.83)  (6.85)  (9.93)  (11.23)
 Weighted  Arithmetic  Mean  11.78  12.42  13.12  13.58  14.02  15.15  15.60  16.52  18.50  19.53  Standard  Deviation  1.49  0.96  1.76  2.59  3.03  3.64  3.96  5.13  5.96  5.99
 *  The  interstate  rates  of  return  reported  by  carriers  on  the  FCC  Form  492A  may  not  necessarily  agree  with  the  interstate  rates  of  return  reported  by  the  carriers  on  other  Commission  forms.  For  example,  price-  cap  carriers  also  report  interstate  rates  of  return  on  the  Commission's  Automated
 Reporting  Management  Information  System's  (ARMIS)  43-  01  report.  The  interstate  rates  of  return  reported  by  carriers  on  the  ARMIS  43-  01  include  revenues  and  costs  for  non-  price-  cap  services.  In  addition  they  exclude  adjustments,  if  any,  for  the  previous  year's  sharing  obligation  or
 low-  end  adjustment.
 4  -  4
25
 Notes  to  Table  4.1
 1/  AT&  T  Communications  filed  individual  reports  for  1991-  1994  ninety  days  after  end  of  each  calendar  year.  The  local
 telephone  companies  filed  final  reports  for  each  year  fifteen  months  after  the  calendar  year.
 2/  U  S  WEST  Communications,  Inc.  filed  a  revised  report  June  16,  1999  to  correct  the  state  and  local  composite  tax  rate.
 3/  The  merger  between  Qwest  Communications  International,  Inc.  and  U  S  WEST  was  effective  June  30,  2000.
 4/  Southwestern  Bell  Telephone  Co.,  Nevada  Bell,  and  Pacific  Bell  filed  revised  reports  June  25,  1999  reflecting  the
 reassignment  of  expenses  and  revenues  associated  with  ISP-  bound  traffic  to  the  intrastate  jurisdiction.
 5/  Southern  New  England  Telephone  Company  merged  with  SBC  October  1998.  Nevada  Bell,  and  Pacific  Bell,  and
 Ameritech  merged  with  SBC  October  1999.
 6/  Verizon  Communications,  Inc.  was  formed  in  2000  by  the  merger  of  Bell  Atlantic  Corporation  and  GTE  Corporation.
 7/  Bell  Atlantic  filed  revised  reports  August  12,  1999  reflecting  the  reassignment  of  expenses  and  revenues  associated  with
 internet  service  provider  (ISP)-  bound  traffic  to  the  intrastate  jurisdiction.  For  1999,  Bell  Atlantic  filed  a  combined  report.
 8/  In  1992,  NYNEX  started  to  file  a  combined  report.
 9/  It  should  be  noted  that  GTE  in  1993  consolidated  various  study  areas  so  that  some  individual  company  reports  may  not  be
 totally  consistent  with  prior  years.
 10/  In  1994,  GTE  reported  many  study  areas  by  state.  For  the  GTE  companies,  GTE  of  Alaska,  California,  Florida,  Hawaii,
 Illinois,  Indiana,  Michigan,  Missouri,  Nebraska,  Ohio,  Pennsylvania,  and  Wisconsin  are  the  only  study  areas  that  appear
 consistent  between  1993  and  1994.
 11/  GTE  companies  filed  revised  reports  May  28,  1999  to  properly  report  the  expenses  associated  with  funding  the  USAC-  USF.
 12/  In  1994,  GSTC  -  South  (East  South  Contel)  was  separated  and  became  GTE  South,  Inc.  (Kentucky  only  -  COKY);  GTE
 South,  Inc.  (N.  Carolina  only  -  CONC);  GTE  South,  Inc.  (S.  Carolina  only  -  COSC);  GTE  South,  Inc.  (Virginia  only  -  COVA);  and
 GTE  Systems  of  the  South  (COAL  only).  The  property  for  Georgia,  which  had  also  been  included  in  1993,  was  sold  and  not
 included  in  1994.
 13/  In  1994,  GSTC  -  Central  Region  (Central  Contel)  was  separated  and  became  GTE  North,  Inc.  (Illinois  Contel);  GTE  North,
 Inc.  (Indiana  Contel);  GTE  Midwest,  Inc.  (Contel  Iowa  COIA  +  COSI);  GTE  Midwest,  Inc.  (Contel  Missouri  -  COMO  +
 COCM  +  COEM);  Total  Contel  Arkansas  (COAR  +  COSA);  and  Contel  of  Minnesota  -  COMN.  In  1996,  Total  Contel
 Arkansas  was  renamed  GTE  Arkansas,  Inc.
 14/  Study  area  was  sold.
 15/  For  the  GTE  Contel  companies,  GTE  Pennsylvania  (Contel)  and  GTE  Texas  (Contel)  are  the  two  companies  that  appear
 consistent  between  1993  and  1994.  In  1995,  GTE  of  Pennsylvania  (Contel)  name  changed  to  GTE  North,  Inc.,  (COPA  +
 COQS);  and  GTE  Texas  (Contel)  name  changed  to  GTE  Southwest,  Inc.  (Texas  Contel).
 16/  In  1994,  Contel  of  California,  Inc.,  was  separated  and  became  Contel  of  California  (California  only  -  COCA);  Contel  of
 California  (AZ  only  -  COAZ);  and  Contel  of  Nevada  (NV  only  -  CONV).  In  1996,  names  were  changed  to  GTE  California,  Inc.,
 (California  Contel),  GTE  California,  Inc.  (Arizona  Contel),  and  GTE  California,  Inc.  (Nevada  Contel).
 17/  In  1994,  GTE  of  the  North,  Inc.  (Total  IA  +  MN  GTE)  was  separated  and  became  GTE  Midwest,  Inc.  (Iowa  only  -  GTIA)  and
 Contel  Minnesota  -  GTMN.
 18/  In  1994,  GTE  of  the  Northwest,  Inc.  (Total  OR+  WA+  NWCA  GTE)  was  separated  and  became  GTE  of  the  Northwest,  Inc.
 (Oregon  only  -  GTOR);  GTE  of  the  Northwest,  Inc.  (Washington  only  -  GTWA);  and  West  Coast  Telephone  Co.  of  California  -
 -  GNCA.  In  1995,  GTE  of  the  Northwest,  Inc.  (Contel  Oregon  -  COOR)  merged  with  GTE  of  the  Northwest,  Inc.  (Oregon  only  -
 -  GTOR).
 19/  In  1994,  GTE  of  the  Northwest,  Inc.  (Total  ID  +  MT  GTE)  was  separated  and  became  GTE  of  the  Northwest,  Inc.  (Idaho
 only  -  GTID)  and  GTE  of  the  Northwest,  Inc.  (Montana  only  -  GTMT).  GTE  of  the  Northwest,  Inc.  (Montana  only  -  GTMT)
 did  not  file  a  1995  report  because  its  property  had  been  sold.
 20/  In  1994,  GTE  Systems  of  Northwest  (Northwest  Contel)  was  separated  and  became  GTE  Northwest,  Inc.  (Contel  Oregon  -
 COOR);  and  GTE  Northwest,  Inc.  (Contel  Washington  only  -  COWA).  In  1995,  GTE  Northwest,  Inc.  (Contel  Oregon  -  COOR)
 merged  with  GTE  Northwest,  Inc.  (Oregon  only  -  GTOR).
 21/  In  1994,  GTE  South,  Inc.  (Total  South  GTE)  was  separated  and  became  GTE  South,  Inc.  (Alabama  only  -  GTAL);  GTE
 South,  Inc.  (Kentucky  only  -  GTKY);  GTE  South,  Inc.  (North  Carolina  only  -  GTNC);  GTE  South,  Inc.  (South  Carolina  only  -
 GTSO);  and  GTE  South,  Inc.  (Virginia  only  -  GTVA).  The  properties  for  Georgia,  Tennessee,  and  West  Virginia  which
 had  been  included  in  GTE  South,  Inc.  in  1993,  were  not  included  in  1994  because  these  properties  had  been  sold.
 GTSC  and  COSC  were  combined  in  1999  to  form  GTST.
 22/  In  1994,  GTE  Southwest,  Inc.  (Total  Southwest  GTE)  was  separated  and  became  GTE  Southwest,  Inc.  (Arkansas  only  -
 GTAR);  GTE  Southwest,  Inc.  (New  Mexico  only  -  GTNM);  GTE  Southwest,  Inc.  (Oklahoma  only  -  GTOK);  and  GTE
 Southwest  Inc.  (Texas  only  -  GTTX).
 23/  In  1994,  GTE  West  (West  Contel)  was  separated  and  became  Contel  of  the  West  (New  Mexico  only  -  CONM)  and  Contel
 of  the  West  dba  GTE  West  (Arizona  only  -  COWZ).  Utah,  which  had  been  included  in  1993  was  not  included  in  1994;  their
 property  was  sold.  Contel  of  the  West  dba  GTE  West  (Arizona  only  -  COWZ)  did  not  file  a  1995  report  because  its  property
 had  been  sold.  In  1995,  Contel  of  the  West  (New  Mexico  only  -  CONM)  changed  its  name  to  GTE  Southwest,  Inc.,  (Contel
 New  Mexico).
 24/  Micronesian  Telecommunications  Corp.  filed  a  rate-  of-  return  report  for  the  first  time  in  1994.
 25/  GTE  New  York  (New  York  Contel)  and  GSTC  -  North  (East  North  Contel)  did  not  file  in  1994  because  its  property  was  sold.
 4  -  5
26
 Notes  to  Table  4.1  -  Continued
 26/  The  Centel  companies  and  Lincoln  Telephone  and  Telegraph  Company  reported  subject  to  price  caps  beginning  7/  1/  93.
 Rate  of  return  for  1993  is  for  the  filing  period  July  through  December.  For  1992,  information  for  these  companies  is  from
 their  final  non-  price-  cap  reports,  filed  9/  30/  93  for  the  two-  year  1992  monitoring  period,  1991-  1992.
 27/  Sold  to  Galatin  River  Communications,  October  31,  1998.
 28/  In  1996,  Lincoln  Telephone  and  Telegraph  Company  changed  its  name  to  Aliant  Communications  Company.
 29/  Cincinnati  Bell  Telephone  Company  went  price-  cap  in  1997.
 30/  The  Citizens  Telecommunications  Cos.  became  price-  cap  July  1,  1996;  its  reporting  period  for  1996  is  July  1  -
 December  31,  1996.  Rates  for  1996  are  from  the  initial  report.
 31/  The  Rochester  Telephone  Corporation  (now  Frontier  Telephone  of  Rochester)  and  Southern  New  England  Telephone
 Company  reported  subject  to  price  caps  beginning  7/  1/  91.  The  rate-  of-  return  report  for  each  is  for  the  filing  period  July  1
 through  December  31,  1991.
 32/  The  Rochester  Telephone  Corporation  (now  Frontier  Telephone  of  Rochester),  Rochester  Telephone  subsidiaries  and
 and  Frontier  Communications  of  Minnesota  and  Iowa  (name  changed  in  1994  from  Vista  Communications  Co.  of  Minnesota
 and  Iowa)  did  not  have  any  changes  to  their  original  reports  so  they  did  not  file  final  reports  on  March  31,  1995  for  1993.
 33/  Reports  for  Frontier  Communications  of  Minnesota  and  Iowa,  formerly  known  as  Vista  Telephone  Companies  were  filed  by
 Rochester  Telephone  Company  as  of  7/  1/  92.  For  1992,  the  rate  of  return  is  for  7/  1/  92-  12/  31/  92  when  they  reported  subject  to
 price-  cap  regulation.  For  1991,  Vista  filed  a  rate-  of-  return  report  for  Vista  Telephone  Company  of  Iowa  and  Vista  Telephone
 Company  of  Minnesota.
 4  -  6
27
 5-  1
 5  Employment  and  Labor  Productivity
 The  Bureau  of  Labor  Statistics  (BLS)  publishes  monthly  data  regarding  the  total  number  of  employed  workers  in  the  communications  industry.  Specifically,  BLS  compiles  employment  statistics
 for  the  entire  telephone  communications  industry  (Standard  Industrial  Classification  (SIC)  481)  and  for  a  subset  of  this  industry,  telephone  communications  minus  radiotelephone  (SIC  4813).  The  difference
 between  these  two  figures  yields  the  number  of  employees  in  the  radiotelephone  industry  (SIC  4812).
 SIC  4813  includes  establishments  primarily  engaged  in  furnishing  telephone  voice  and  data  communications,  except  radiotelephone  and  telephone  answering  services.  SIC  4812  includes
 establishments  primarily  engaged  in  providing  two-  way  radiotelephone  communication  services,  such  as  cellular  telephone  service.  It  also  includes  telephone  paging  and  beeper  services.  Neither  of  these
 categories  includes  employees  from  establishments  primarily  engaged  in  furnishing  telephone  answering  services,  manufacturing  equipment,  or  engineering  and  research  services.
 Table  5.1  and  the  associated  graph  show  the  annual  average  employment  figures  in  the  telephone  communications  industry  separately  for  SIC  4812  and  SIC  4813  from  1951  to  2001.  Since
 1990,  employment  in  the  telephone  communications  industry  has  grown  modestly.  Most  of  the  growth  in  employment  over  this  period  is  the  result  of  substantial  increases  in  the  radiotelephone  industry,  which
 grew  at  an  annual  average  growth  rate  of  approximately  20%.
 BLS  also  calculates  an  annual  telecommunications  industry  labor  productivity  index.  The  BLS  index  of  labor  productivity  relates  output  to  the  employee  hours  expended  in  producing  that  output.
 This  index,  presented  in  Table  5.2,  rose  an  average  6.0%  per  year  from  1951-  1999,  with  1999  being  the  most  recent  data  available.  This  average  labor  productivity  factor  is  higher  than  the  average  in  other
 industries  (typically  somewhere  around  3  to  4%).  This  higher  than  average  annual  growth  rate  may  be  the  result  of  telephone  companies  utilizing  more  efficient,  advanced  technology  and  increases  in  human
 capital.  Table  5.2  and  the  associated  graph  illustrate  the  rising  trend  in  telecommunications  labor  productivity  since  1951.
 Table  5.3  presents  estimates  of  the  number  of  telecommunications  service  providers  that  are  small  businesses  as  defined  by  the  Small  Business  Administrations  Office  of  Size  Standards  (i.  e.,  1,500
 or  fewer  employees,  including  all  affiliates).
28
 5-  2
29
 `
 Table  5.1
 Annual  Average  Number  of  Employees  in  the
 Telephone  Communications  Industry  (In  Thousands)
 All  Other  All  Other  All  Other  Year  Radiotelephone  Telephone  Year  Radiotelephone  Telephone  Year  Radiotelephone  Telephone
 1951  15.2  628.8  1969  20.5  849.5  1987  21.1  880.8  1952  16.0  662.4  1970  22.2  919.9  1988  23.2  877.9
 1953  16.6  685.6  1971  22.4  929.2  1989  1/  29.9  856.0  1954  16.5  682.3  1972  22.5  933.6  1990  38.2  874.8
 1955  16.6  690.1  1973  23.2  958.0  1991  45.6  863.6  1956  17.7  733.5  1974  23.6  977.2  1992  53.1  832.1
 1957  18.1  750.1  1975  22.8  943.8  1993  63.1  815.9  1958  17.2  714.9  1976  22.5  930.7  1994  81.0  812.4
 1959  16.7  690.4  1977  22.6  934.7  1995  102.5  797.2  1960  16.6  689.4  1978  23.4  971.4  1996  146.9  786.1
 1961  16.3  677.0  1979  24.8  1023.4  1997  172.7  820.3  1962  16.2  671.3  1980  25.3  1046.9  1998  164.3  848.5
 1963  16.2  669.3  1981  25.3  1052.0  1999  182.7  892.4  1964  16.6  689.5  1982  25.3  1046.5  2000  204.4  927.6
 1965  17.3  717.9  1983  1/  23.8  986.5  2001  2/  257.1  971.3  1966  18.3  755.1  1984  22.4  931.0
 1967  19.0  787.5  1985  21.6  899.1  1968  19.2  793.2  1986  1/  20.7  862.7
 1/  Due  to  Bell  operating  company  employee  strikes  in  1983,  1986,  and  1989,  which  lasted  one  month  each,  the  reported  annual
 average  number  of  workers  for  those  particular  years  is  an  average  of  the  eleven  months  in  which  workers  did  not  strike.
 2/  The  2001  figures  are  preliminary.
 Source:  Bureau  of  Labor  Statistics.
 1951  1954  1957  1960  1963  1966  1969  1972  1975  1978  1981  1984  1987  1990  1993  1996  1999
 0
 200
 400
 600
 800
 1,000
 1,200
 1,400
 Workers
 (Thousands)
 Chart  5.1
 Annual  Average  Number  of  Employees  in  the
 Telephone  Communications  Industry
 1951  -  2001
 All  Other  Telephone  Radiotelephone
 5  -  3
30
 Table  5.2
 Labor  Productivity  Index  for  the  Telephone  Communications
 Industry  Measured  in  Output  per  Hour  (OPH)  (Base  Year  1987=  100)
 Year  OPH  Index  Year  OPH  Index  Year  OPH  Index
 1951  12.0  1968  34.7  1985  88.9
 1952  12.4  1969  35.3  1986  95.0
 1953  12.6  1970  35.6  1987  100.0
 1954  13.2  1971  38.3  1988  106.2
 1955  14.3  1972  40.1  1989  111.6
 1956  14.6  1973  42.7  1990  113.3
 1957  16.1  1974  45.0  1991  119.8
 1958  18.2  1975  49.3  1992  127.7
 1959  20.3  1976  53.6  1993  135.5
 1960  21.4  1977  57.3  1994  142.2
 1961  23.3  1978  60.6  1995  148.1
 1962  24.8  1979  63.5  1996  159.5
 1963  26.6  1980  67.6  1997  160.9
 1964  27.8  1981  71.1  1998  170.3
 1965  28.9  1982  73.8  1999  189.1
 1966  30.3  1983  84.6
 1967  32.6  1984  84.5
 Source:  Bureau  of  Labor  Statistics.
 Chart  5.2
 Telephone  Communications  Industry
 (SIC  481)  Labor  Productivity  Index
 0
 20
 40
 60
 80
 100
 120
 140
 160
 180
 200
 1951  1953  1955  1957  1959  1961  1963  1965  1967  1969  1971  1973  1975  1977  1979  1981  1983  1985  1987  1989  1991  1993  1995  1997  1999
 Output
 per
 Worker-
 Hour
 5  -  4
31
 Table  5.3
 Number  of  Telecommunications  Service  Providers
 That  Are  Small  Businesses
 Service  Provider  Category  Number  of  Filers  that  in  Filers  that  in
 Form  499-  A  Combination  with  Combination  with
 Filers  Affiliates  Affiliates  Have
 Have  1,500  or  More  Than  1,500
 Fewer  Employees  Employees
 1/  1/
 Incumbent  Local  Exchange  Carriers  (ILECs)  1,335  1,037  298
 Competitive  Access  Providers  (CAPs)  349  297  52
 and  Competitive  Local  Exchange
 Carriers  (CLECs)
 Local  Resellers  87  86  1
 Other  Local  Exchange  Carriers  60  56  4
 All  Competitors  of  ILECs  496  439  57
 Total:  Fixed  Local  Service  Providers  1,831  1,476  355
 Total:  Payphone  Providers  758  755  3
 Wireless  Telephony  Including  Cellular,  806  323  483
 Personal  Communications  Service
 (PCS)  and  SMR  Telephony  Carriers
 Paging  &  Messaging  Service  427  407  20
 Specialized  Mobile  Radio  (SMR)  212  211  1
 Dispatch
 Wireless  Data  Service  Providers  6  5  1
 Other  Mobile  Service  Providers  44  43  1
 Total:  Wireless  Service  Providers  1,495  989  506
 Interexchange  Carriers  (IXCs)  204  163  41
 Operator  Service  Providers  (OSPs)  21  20  1
 Prepaid  Calling  Card  Providers  21  20  1
 Satellite  Service  Carriers  21  16  5
 Toll  Resellers  454  423  31
 Other  Toll  Carriers  17  15  2
 Total:  Toll  Service  Providers  738  656  82
 All  Filers  4,822  3,875  947
 1/  Estimates  were  based  on  gross  revenues  information  filed  April  1,  2000  on  FCC  Form  499-  A  worksheets,  combined
 with  employment  information  obtained  from  ARMIS  and  Securities  and  Exchange  Commission  filings  as  well
 as  industry  employment  estimates  published  by  the  Bureau  of  Labor  Statistics.  Actual  Form  499-  A  filings  are  not
 available  to  the  public.  For  this  table,  filers  were  considered  to  be  affiliated  based  on  information  published
 in  the  Industry  Analysis  Division,  Carrier  Locator.  The  estimates  do  not  reflect  affiliates  that  do  not  provide
 telecommunications  services  or  that  operate  only  in  foreign  countries.
 Source:  Form  499-  A  filers  from  Industry  Analysis  Division,  Carrier  Locator.
 5  -  5
32
 6-  1
 6  International  Telephone  Service
 International  telecommunications  has  become  an  increasingly  important  segment  of  the  telecommunications  market.  International  telephone  calling  --  propelled  by  technological  innovation,
 increased  international  trade  and  travel,  and  stable  or  declining  international  telephone  rates  --  has  skyrocketed.  The  number  of  calls  made  from  the  United  States  to  other  countries  increased  from  200
 million  in  1980  to  5.2  billion  in  1999.  Americans  spent  about  $14  billion  on  international  calls  in  1999.  On  average,  carriers  billed  51  cents  per  minute  for  international  calls  in  1999,  a  decline  of  more  than
 50%  since  1980.  International  private  line  revenues  have  also  increased  since  1980,  but  telex  and  telegraph  services  declined  substantially  over  the  same  period.  These  trends  are  shown  in  Table  6.1.
 U.  S.  and  foreign  carriers  compensate  each  other  when  one  carries  traffic  that  the  other  bills.  Since  1980,  the  number  of  calls  billed  in  the  United  States  increased  at  a  faster  pace  than  calls  billed  in
 foreign  countries,  contributing  to  rapid  increases  in  net  settlement  payments  to  foreign  carriers.  These  net  payments  from  the  United  States  to  other  countries  were  $4.6  billion  in  1999.  Trends  in  settlement
 payments  are  shown  in  Table  6.2.
 International  traffic  data  are  available  on  a  country-  by-  country  basis.  Table  6.3  summarizes  traffic  by  region  of  the  world.  Five  markets  --  Canada,  Mexico,  the  United  Kingdom,  Germany,  and
 Japan  --  currently  account  for  about  44%  of  the  international  calls  billed  in  the  United  States.
 Since  1985,  when  MCI  began  to  compete  with  AT&  T  for  international  calls,  numerous  carriers  have  begun  to  provide  international  service.  Fifty-  six  carriers  provided  international  telecommunications
 service  in  1999  by  using  their  own  facilities  or  lines  leased  from  other  carriers.  These  carriers  provided  $14.5  billion  of  international  telephone  service  between  the  U.  S.  and  foreign  points  and  $1.2  billion  of
 international  private  line  service.  Table  6.4  shows  the  U.  S.-  billed  revenues  for  each  of  the  56  carriers.  Together,  AT&  T,  MCI  WorldCom,  and  Sprint,  accounted  for  90%  of  the  international  service  billed  in
 the  United  States.
 In  addition  to  the  56  carriers  that  owned  or  leased  facilities,  about  450  carriers  reported  the  resale  of  international  message  telephone  service.  These  carriers  reported  $4.5  billion  of  resale  revenue
 in  1999.  The  revenues  of  the  fifty  largest  resellers  are  shown  in  Table  6.5.
 The  data  compiled  in  Tables  6.1  -  6.5  are  filed  pursuant  to  Section  43.61  of  the  Commission's  rules.  Preliminary  data  are  filed  July  31st  of  each  year  and  final  data  are  filed  October  31st.  Additional
 information  can  be  found  in  a  number  of  international  reports  on  the  FCC-  State  Link  web  page.
33
 6-  2
34
 Table  6.1
 International  Service  from  the  United  States  to  Foreign  Points
 (Minute,  Message,  and  Revenue  Amounts  Shown  in  Millions)
 Telephone  Service  Other  Services
 Billed  Revenues  Billed  Revenues
 Minutes  Messages  Total  Per  Per  Call  Telex  Telegraph  Private  Line  Misc.
 Minute  1/  Services
 1980  1,569  199  $2,097  $1.34  $10.53  $325  $63  $115
 1981  1,857  233  2,239  1.21  9.61  350  62  126
 1982  2,187  274  2,382  1.09  8.70  363  56  138
 1983  2,650  322  2,876  1.09  8.92  379  54  154
 1984  3,037  367  3,197  1.05  8.71  394  46  158
 1985  3,350  411  3,435  1.03  8.37  415  45  172
 1986  3,917  482  3,891  0.99  8.07  390  42  175
 1987  4,480  570  4,559  1.02  8.00  360  35  191
 1988  5,190  687  5,507  1.06  8.02  310  30  194
 1989  6,109  835  6,517  1.07  7.80  243  27  208
 1990  7,215  984  7,626  1.06  7.75  196  24  201
 1991  8,986  1,371  9,096  1.01  6.63  200  15  303  $23
 1992  10,156  1,643  10,179  1.00  6.20  155  16  313  24
 1993  11,393  1,926  11,353  1.00  5.89  135  12  365  23
 1994  13,393  2,313  12,255  0.92  5.30  123  12  432  55
 1995  15,837  2,821  13,990  0.88  4.96  119  6  432  55
 1996  19,119  3,485  14,079  0.74  4.04  119  5  649  26
 1997  22,611  4,233  15,135  0.67  3.58  110  4  840  36
 1998  24,026  4,439  14,154  0.59  3.19  64  2  902  21
 1999  28,132  5,249  14,435  0.51  2.75  57  2  1,196  30
 Note:  Data  represent  traffic  and  circuits  from  domestic  U.  S.  points  to  foreign  points.
 1/  Billed  revenue  per  minute  for  international  service  differs  in  Table  14.5  and  Table  6.1.  Data  in  Table  14.5  are
 based  on  traffic  to  foreign  points  for  all  U.  S.  carriers  serving  all  U.  S.  points  and  staff  estimates  of  end-  user  revenues.  Data  for  Table  6.1  are  based  on  traffic  for  domestic  U.  S.  points  only  and  revenues  billed  by  underlying  carriers.
 The  domestic  U.  S.  includes  Puerto  Rico  but  excludes  American  Samoa,  Guam,  the  Northern  Mariana  Islands,
 and  the  U.  S.  Virgin  Islands.
 Source:  Industry  Analysis  Division,  Section  43.61  International  Telecommunications  Data.
 6  -  3
35
 Table  6.2
 International  Telephone  Service  Settlements
 (Revenue  Amounts  Shown  in  Millions)
 Average  per  Minute
 Settlement  Settlement  U.  S.
 Owed  to  Due  from  Carrier
 Foreign  Foreign  Net
 Billed  Owed  to  Retained  Due  from  Net  Net  Carriers  Carriers  Revenues
 Revenues  Foreign  Revenues  Foreign  Settlements  Revenues  for  U.  S.  for  Foreign  All
 Carriers  Carriers  Billed  Calls  Billed  Calls  Traffic
 1980  $2,097  $1,063  $1,034  $716  ($  347)  $1,750  $0.68  $0.62  $0.64
 1981  2,239  1,330  910  799  (531)  1,708  0.72  0.56  0.52
 1982  2,382  1,674  708  961  (712)  1,670  0.77  0.60  0.44
 1983  2,876  2,036  841  1,086  (950)  1,926  0.77  0.60  0.43
 1984  3,197  2,269  928  1,066  (1,203)  1,994  0.75  0.54  0.40
 1985  3,435  2,369  1,066  1,239  (1,130)  2,305  0.71  0.55  0.41
 1986  3,891  2,802  1,089  1,387  (1,414)  2,476  0.72  0.56  0.39
 1987  4,559  3,309  1,250  1,634  (1,675)  2,884  0.74  0.61  0.39
 1988  5,507  3,868  1,640  1,840  (2,028)  3,480  0.75  0.62  0.41
 1989  6,517  4,513  2,004  2,115  (2,398)  4,119  0.74  0.61  0.42
 1990  7,626  5,079  2,547  2,317  (2,762)  4,863  0.70  0.60  0.42
 1991  9,096  5,792  3,304  2,493  1/  (3,298)  5,798  0.64  0.49  0.42  2/
 1992  10,179  5,945  4,234  2,601  1/  (3,344)  6,835  0.59  0.46  0.43  2/
 1993  11,353  6,327  5,027  2,678  1/  (3,649)  7,704  0.56  0.43  0.44  2/
 1994  12,255  6,947  5,308  2,658  1/  (4,289)  7,966  0.52  0.40  0.39  2/
 1995  13,990  7,559  6,432  2,623  1/  (4,936)  9,054  0.48  0.35  0.39  2/
 1996  14,079  8,206  5,873  2,560  1/  (5,645)  8,434  0.43  0.30  0.30  2/
 1997  15,135  8,016  7,119  2,572  1/  (5,444)  9,691  0.35  0.26  0.30  2/
 1998  14,154  6,985  7,169  2,512  1/  (4,473)  9,681  0.29  0.21  0.27  2/
 1999  14,435  6,329  8,106  1,764  1/  (4,566)  9,869  0.22  0.15  0.25  2/
 Note:  Data  are  for  traffic  between  domestic  U.  S.  points  and  foreign  points.
 1/  Includes  net  settlement  receipts  for  transiting  traffic.
 2/  Includes  transiting  traffic.
 Source:  Industry  Analysis  Division,  Trends  in  the  International  Telecommunications  Industry;
 Section  43.61  International  Telecommunications  Data.
 6  -  4
36
 Table  6.3
 International  Message  Telephone  Service  for  1999  (Figures  Rounded  to  the  Nearest  Million)
 Traffic  Billed  in  the  United  States  Traffic  Billed  in  Foreign  Countries  Total
 Originating  or  Terminating  Transiting  U.  S.
 in  the  United  States  Carrier
 Number  Number  U.  S.  Owed  to  Retained  Number  Number  Due  from  Retained  Retained
 of  of  Carrier  Foreign  Revenues  of  of  Foreign  Revenues  Revenues
 Region  of  the  World  1/  Messages  Minutes  Revenues  Carriers  Messages  Minutes  Carriers
 Africa  180  907  $645  $401  $244  26  110  $59  $18  $321
 Asia  837  4,860  3,089  1,723  1,366  223  983  275  13  1,655
 Caribbean  300  1,909  956  643  313  88  351  124  7  443
 Eastern  Europe  163  1,074  593  266  327  25  108  34  6  367  Middle  East  171  933  664  388  276  91  354  113  12  401
 North  and  Central  America  1,678  9,219  3,843  1,487  2,356  1,316  5,157  526  22  2,904
 Oceania  110  589  356  150  205  60  537  50  12  268
 South  America  402  2,050  1,271  618  653  101  455  154  11  818
 Western  Europe  1,428  6,693  3,028  652  2,376  740  2,611  227  104  2,707
 Other  Regions  1  4  13  15  (3)  *  6  1  *  (2)
 Total  for  Foreign  Points  5,249  28,132  14,435  6,329  8,106  2,661  10,631  1,558  205  9,869
 Total  for  U.  S.  Points  20  106  21  13  8  8  42  5  *  13
 Total  for  all  International  5,269  28,238  $14,456  $6,342  $8,114  2,669  10,672  $1,563  $206  $9,883
 Points
 *  Denotes  values  that  are  less  than  half  a  million.
 1/  The  region  totals  include  all  traffic  reported  by  carriers  serving  Alaska,  Hawaii,  Puerto  Rico,  and  the  conterminous
 United  States,  and  include  traffic  between  these  points  and  offshore  U.  S.  points  such  as  Guam  and  the  U.  S.  Virgin
 Islands.  This  traffic  shown  separately  as  the  total  for  U.  S.  points,  and  also  is  included  in  the  total  for  all
 international  points.  The  total  for  all  international  points  also  includes  traffic  originating  in  American  Samoa  and  the
 Northern  Mariana  Islands,  which  are  excluded  from  the  region  totals.
 Chart  6.1
 Source:  Industry  Analysis  Division,  Section  43.61  International  Telecommunications  Data.
 (5.9%)  United  Kingdom
 (15.2%)  Canada
 (5.2%)  Germany
 (14.4%)  Mexico
 (2.9%)  Japan
 (56.4%)  All  Other
 U.  S.  Billed  Minutes  by  Country
 6  -  5
37
 Table  6.4
 U.  S.  Billed  Revenues  of  Facilities-  Based  and  Facilities-  Resale  Carriers  in  1999  1/
 (Revenue  Amounts  Shown  in  Millions)
 International  Service  Total
 Telephone  Private  Telex,  Telegraph,  International
 Line  and  Other  Billed
 Miscellaneous  Revenues
 ABS-  CBN  Telecom  North  America,  Inc.  $6  $6
 AM  Telecom,  LLC
 American  Samoa  Telecomm.  Authority  2  2
 American  Tower  Corp.  $46  46
 Andrew  Telecom,  Inc.  1  2  2
 AT&  T  Corp.  6,755  556  $33  7,344
 BellSouth  Corporation  8  8
 Communication  TeleSys.  Int'l./  WorldxChange  25  25
 COMSAT  Corporation  46  46
 DirectNet  Telecommunications  10  2  12
 Energis  (Switzerland)  AG  1  1
 Far  East  Gateway,  Inc.  *  *
 Fedex  International  Transmission  Corporation  *  *
 GE  American  Communications,  Inc.  6  6
 Geocomm  Corporation  *  *
 GTE  Corporation  51  4  *  55
 Harris  Corporation  *  *
 IDT  Corporation  23  23
 IMPSAT  USA,  Inc.  16  16
 International  Exchange  Networks,  Ltd.  2  15  16
 Iridium  North  America  10  10
 IT&  E  Overseas,  Inc.  19  3  22
 Japan  Telecom  America,  Inc.  3  *  3
 KDD  America,  Inc.  2  4  6
 KPN-  INS,  Inc.  16  16
 LC  Communications  -  International  Telecom  Inc.  3  3
 Level  3  Communications,  LLC  1  1
 Local  Communications  Network,  Inc.  4  4
 Madge.  web  International  (C.  I.)  Limited  4  4
 Masatepe  Communications,  U.  S.  A.,  L.  L.  C.  1  1
 MCI  WorldCom,  Inc.  5,056  372  25  5,453
 Medley  International  Teleport,  Inc.  1  1
 Melbourne  International  Comm.,  Ltd.  *  2  3
 Metromedia  Fiber  Network  Services,  Inc.  1  1
 Mobile  Satellite  Communications,  Inc.  1  *  1
 Norlight  Telecommunications,  Inc.  *  *
 ntta.  com,  inc.  3  3
 Pacific  Gateway  Exchange,  Inc.  60  *  60
 PanAmSat  Comm.  Carrier  Services,  Inc.  *  *
 Primus  Telecommunications,  Inc.  241  241
 PSO,  Inc.  d/  b/  a  Canal  Uno  *  *
 RSL  Communications,  Ltd.  107  *  108
 Satellite  Communication  Systems,  Inc.  *  3  3
 SBC  Communications,  Inc.  2  2  4
 Sprint  1,379  120  16  1,514
 Star  Telecommunications,  Inc.  140  140
 Startcomm  Corporation  *  *
 Startec  Global  Communications  Corp.  75  75
 Telecomunicaciones  Ultramarinas-  Puerto  Rico  1  1
 Telefonica  Larga  Distancia,  Inc.  (TLD)  19  2  21
 Telstra  Incorporated  *  *
 TRICOM  USA,  Inc.  9  9
 V-  SAT  Telecom,  Inc.  *  *  *
 Viatel,  Inc.  212  212
 Williams  Communications,  Inc.  5  5
 World  Access  (FaciliCom  International  L.  L.  C.)  276  276
 Total  All  Carriers  2/  $14,506  $1,216  $89  $15,812
 *  Represents  revenues  greater  than  $0  but  less  than  $500,000.
 1/  Totals  exclude  pure  resale  services.  Data  do  not  show  settlement  receipts  for  terminating  foreign  billed  traffic.
 2/  Includes  revenues  for  American  Samoa,  Guam,  the  Northern  Mariana  Islands,  and  the  U.  S.  Virgin  Islands.  Other  tables  in  this  section
 exclude  this  traffic.  The  data  shown  in  this  table  include  $50  million  of  revenues  billed  in  these  points  as  well  as  $21  million  of
 revenues  for  calls  between  the  domestic  United  States  and  these  points.
 Source:  Industry  Analysis  Division,  Section  43.61  International  Telecommunications  Data.
 6  -  6
38
 Table  6.5
 Top  Providers  of  Pure  Resale  International  MTS  in  1999
 Percent
 Number  of  Number  of  U.  S.  Carrier  of  Total
 Messages  Minutes  Revenues  IMTS
 Resale
 Revenues
 Access  Authority,  Inc.  9,762,704  69,902,160  $20,870,738  0.46  %
 ACS  Systems,  Inc.  d.  b.  a  LD  Exchange.  com  44,781,532  203,974,633  58,847,458  1.30
 ALLTEL  Corporation  1,459,787  10,844,746  5,451,108  0.12
 AT&  T  Corp.  141,932,631  884,898,390  254,016,193  5.61
 BellSouth  Corporation  34,045,495  106,471,859  28,799,468  0.64
 Broadwing  Companies  56,820,588  220,064,637  51,128,611  1.13
 Business  Telecom,  Inc.  (BTI)  9,102,584  45,516,432  12,553,650  0.28
 CapRock  Telecommunications  Corporation  25,518,740  176,080,786  43,391,366  0.96
 Capsule  Communications  d.  b.  a.  US  WATS,  Inc.  10,394,537  29,554,920  8,751,116  0.19
 Communication  TeleSystems  Int'l.,  d/  b/  a  CTS  and  WorldxChange  150,245,283  1,032,966,114  192,876,638  4.26
 DirectNet  Telecommunications  50,822,341  272,088,214  75,924,324  1.68
 eGlobe  3,148,536  30,418,884  7,549,525  0.17
 Elephant  Talk,  Inc.  5,100,331  61,203,977  20,080,033  0.44
 EqualNet  Corporation  1,244,525  24,890,502  7,778,282  0.17
 Global  Crossing  Telecommunications,  Inc.  70,554,799  285,041,392  232,194,464  5.13
 Globalcom,  Inc.  1,222,766  24,455,318  7,642,287  0.17
 GTE  26,143,969  171,350,567  151,444,931  3.34
 Heritage  Communications  Corporation  8,105,820  84,071,750  9,510,190  0.21
 Intellicall  Operator  Services,  Inc.,  d/  b/  a  ILD  1,559,620  16,696,575  5,571,310  0.12
 Intermedia  Communications,  Inc.  1,491,609  29,832,176  9,322,555  0.21
 Interoute  Telecommunications,  Inc.  incl.  American  Telecom,  Inc.  10,604,886  147,036,505  33,525,465  0.74
 Lightyear  Communications,  Inc.  9,014,712  36,347,332  14,261,265  0.31
 McLeodUSA  7,075,098  25,276,847  8,952,586  0.20
 Netmoves  Corp.  8,435,329  15,066,065  8,589,085  0.19
 NET-  tel  Corporation  2,907,033  58,140,659  18,168,956  0.40
 Network  Plus,  Inc.  56,781,157  181,699,704  62,751,000  1.39
 NOS  Communications,  Inc.  9,447,895  76,807,277  26,239,729  0.58
 Progress  International,  L.  L.  C.  (Progress)  4,297,747  28,365,131  7,341,038  0.16
 Qwest  Communications  Corporation  incl.  LCI  International  108,301,660  492,344,044  177,850,185  3.93
 Rapid  Link  USA,  Inc.  20,955,533  180,068,686  24,240,358  0.54
 RSL  COM  U.  S.  A.,  Inc.  78,967,849  579,213,182  126,721,682  2.80
 SBC  Communications,  Inc.  incl.  SNET  and  CCPR  Services  37,098,762  125,668,884  70,706,293  1.56
 Sprint  102,531,423  533,332,140  243,736,675  5.38
 Star  Telecommunications,  Inc.  incl.  PT-  1  601,503,888  4,135,593,245  922,797,050  20.38
 Startec  Global  Communications  Corporation  incl.  PCI  Com.  7,991,148  59,762,003  20,495,290  0.45
 Talk.  com  Holding  Corp.  10,631,048  212,620,960  66,444,050  1.47
 Teleglobe  Companies  incl  Excel  and  Long  Distance  Wholesale  Club  30,155,007  268,579,480  164,506,371  3.63
 Teligent  26,667,030  50,003,799  7,752,479  0.17
 U  S  West  Communications,  Inc.  6,239,560  124,791,200  38,997,250  0.86
 United  States  Cellular  Corporation  20,693,200  37,522,689  17,024,260  0.38
 URSUS  Telecom  Corporation  5,201,718  19,096,929  12,547,739  0.28
 USA  Global  Link,  Inc.  6,369,622  32,541,627  10,526,082  0.23
 USC  Telecom,  Inc.  2,042,191  40,843,814  12,763,692  0.28
 VarTec  Telecom,  Inc.  17,583,515  67,676,456  62,434,785  1.38
 Verizon  Wireless  56,536,041  211,282,250  49,806,763  1.10
 VoiceStream  Wireless  Corporation  incl.  Omnipoint  Corporation  2,899,603  7,793,712  5,624,342  0.12
 Winstar  Communications,  Inc.  3,053,257  10,767,053  5,378,260  0.12
 Working  Assets  Long  Distance  2,862,837  23,551,832  15,121,203  0.33
 World  Access  Telecommunications  Group,  Inc.  211,462,004  1,238,406,098  329,380,477  7.28
 WorldCom,  Inc.  387,182,338  1,858,724,000  618,211,602  13.65
 Total  for  329  Carriers  Not  Shown  Above  1/  84,074,165  389,107,995  140,937,100  3.11
 Total  for  all  Reporting  Carriers  2,593,025,453  15,048,355,630  $4,527,537,359  100.00  %
 1/  Data  are  consolidated  for  affiliated  carriers.  A  total  of  379  companies  made  a  total  of  451  filings.  The  50  companies  shown
 in  the  table  represent  85  filings.
 Source:  Industry  Analysis  Division,  Section  43.61  International  Telecommunications  Data.
 6  -  7
39
 7-  1
 7  Lifeline  and  LinkUp  Programs
 In  1984,  the  FCC,  in  conjunction  with  the  states  and  local  telephone  companies,  established  a  Lifeline  program  designed  to  promote  universal  service  by  providing  low-  income  individuals  with
 monthly  discounts  on  the  monthly  cost  of  telephone  service.  In  1987,  the  FCC  adopted  LinkUp  America,  a  program  designed  to  help  low-  income  households  pay  the  initial  costs  of  commencing
 service.  In  June  2000,  the  Commission  further  expanded  the  Lifeline  and  LinkUp  programs  to  address  the  needs  of  those  living  on  tribal  lands.
 The  LinkUp  America  program,  which  supports  affordable  connection  to  the  network,  has  added  10.6  million  telephone  subscribers  since  1987.  In  2000,  an  estimated  5.9  million  subscribers
 paid  reduced  local  rates  under  the  Lifeline  program.
 The  Commissions  rules  are  designed  to  satisfy  the  1996  Telecommunications  Act  which  mandates  affordable  rates  for  low-  income  consumers  in  all  regions  of  the  nation.  The  rules  also
 make  the  contribution  and  distribution  of  low-  income  support  competitively  and  technologically  neutral  by  requiring  equitable  and  nondiscriminatory  contributions  from  all  providers  of  interstate
 telecommunications  services,  and  by  allowing  all  eligible  telecommunications  carriers  to  receive  support  for  offering  Lifeline  and  LinkUp  service.
 1.  Lifeline  and  LinkUp  Support
 In  states  that  provide  state  Lifeline  support,  Lifeline  and  LinkUp  are  available  to  all  subscribers  who  meet  those  state  standards.  Although  states  have  some  latitude  in  selecting  means  tests,  state
 commissions  must  establish  narrowly  targeted  qualification  criteria  that  are  based  solely  on  income  or  factors  directly  related  to  income  for  its  low-  income  residents  to  be  eligible  for  Lifeline  and  LinkUp.  In
 addition,  a  state  with  eligible  residents  of  tribal  lands  must  ensure  that  its  qualification  criteria  are  reasonably  designed  to  apply  to  eligible  residents  of  tribal  lands  within  the  state.  To  receive  Lifeline  and
 LinkUp  in  a  state  that  does  not  mandate  state  Lifeline  support,  consumers  must  certify  that  they  participate  in  one  of  the  following  five  federal  programs:  Medicaid,  food  stamps,  Supplemental  Security
 Income  (SSI),  federal  public  housing  assistance,  or  the  Low-  Income  Home  Energy  Assistance  Program  (LIHEAP).
 Eligible  subscribers  living  on  tribal  lands  qualify  to  receive  federal  Lifeline  support  if:  (1)  they  qualify  under  state  criteria  in  a  state  that  provides  Lifeline  support;  (2)  they  certify  that  they  receive
 benefits  from  one  of  the  five  federal  programs  listed  above;  or  (3)  they  participate  in  one  of  the  following  federal  assistance  programs:  Bureau  of  Indian  Affairs  (BIA)  general  assistance  program,  Tribally
 Administered  Temporary  Assistance  for  Needy  Families  (TANF),  National  School  Lunch  Programs  free  lunch  program,  or  Head  Start  (meeting  the  income-  qualifying  standard).
40
 7-  2
 2.  Lifeline  Support
 Under  the  Commissions  rules,  there  are  four  tiers  of  federal  Lifeline  support.  The  first  tier  represents  a  waiver  of  the  federal  subscriber  line  charge,  which  may  range  from  $3.50  to  $5.00  per
 month.  All  eligible  subscribers  receive  first  tier  support.  Second  tier  support  is  a  $1.75  per  month  reduction  in  the  basic  local  rate,  and  it  is  available  if  all  relevant  non-  federal  regulatory  authorities
 approve  such  a  reduction.  (All  fifty  states  have  approved.)
 The  third  tier  of  federal  support  is  based  on  the  amount  of  additional  state  support  mandated  by  the  relevant  state  or  otherwise  provided  by  carriers.  Federal  support  is  available  to  match  one  half  of
 the  non-  federal  support  provided,  up  to  a  maximum  of  $1.75  in  federal  support,  assuming  that  the  carrier  has  all  necessary  approvals  to  pass  on  the  full  amount  of  this  total  support  in  discounts  to
 subscribers.
 Eligible  subscribers  living  on  tribal  lands  also  qualify  to  receive  a  fourth  tier  of  Lifeline  support  if  they  meet  the  eligibility  standards  described  above.  Tier  four  support  provides  up  to  an  additional  $25
 per  month  towards  reducing  basic  local  service  rates.  This  enhanced  support  should  bring  basic  monthly  rates  down  to  $1  for  most  Lifeline  customers  on  tribal  lands.
 3.  LinkUp  Support
 The  Commissions  LinkUp  program  provides  qualified  low-  income  individuals  with  a  federally-financed  50%  discount  (up  to  a  maximum  $30  discount)  on  initial  connection  charges.  These
 subscribers  also  may  choose  to  schedule  deferred  payments  of  up  to  $200  over  a  one-  year  period,  with  the  customary  interest  charges  paid  by  federal  support.
 In  addition,  eligible  residents  of  tribal  lands  may  receive  support  to  fully  cover  any  charges  between  $60  and  $130,  representing  up  to  a  maximum  of  $100  in  discounts  on  initial  connection
 charges  of  $130  or  more.
 4.  Services
 Basic  service  must  include,  at  a  minimum:  single-  party  service,  voice-  grade  access  to  the  public  switched  telephone  network,  Dual  Tone  Multifrequency  signaling  or  its  functional  digital  equivalent,
 access  to  emergency  services,  access  to  operator  services,  access  to  interexchange  service,  access  to  directory  assistance,  and  toll  limitation.  The  federal  program  compensates  eligible  telecommunications
 carriers  for  toll  limitation  based  on  the  carrier's  incremental  cost  of  providing  toll-  limitation  services  (TLS).
 The  FCC  monitors  subscriber  participation  and  telephone  usage  to  determine  program  benefits  and  costs.  Historical  tables  for  subscribership  and  carrier  payments  by  state  can  be  downloaded  from
 the  Monitoring  Reports  section  of  the  FCC-  State  Link  web  site,  <www.  fcc.  gov/  ccb/  stats>.
41
 7-  3
 Table  7.1  reports  Lifeline  monthly  support  by  state  or  jurisdiction  as  of  April  2001.  The  table  shows  both  federal  and  state  support,  and  indicates  the  additional  contribution  from  the  federal  program
 to  reduce  local  rates  where  states  have  authorized  statewide  or  carrier  specific  intrastate  local  rate  reductions.  Table  7.1  indicates  both  the  federal  and  state  combined  "minimum"  local  rate  reduction.
 This  table  does  not  reflect  changes  in  support  that  resulted  from  the  implementation  of  the  CALLS  order.
 Table  7.2  reports  annual  historical  Lifeline  subscribership  data  by  state  or  jurisdiction  for  years  1989  through  2000.  Historical  data  from  the  inception  of  the  program  in  1985  through  1988  may  be
 found  on  the  Monitoring  Reports  section  of  the  FCC-  State  Link  web  site  as  mentioned  above.
 Table  7.3  reports  annual  historical  LinkUp  subscribership  data  by  state  or  jurisdiction  for  years  1989  through  2000.  LinkUp  program  participation  was  first  certified  in  1987.  Historical  data  for  1987
 and  1988  are  available  in  the  Monitoring  Reports  section  of  the  FCC-  State  Link  web  site  as  mentioned  above.
 Table  7.4  reports  annual  historical  Lifeline  payments  to  carriers  in  each  state  or  jurisdiction  and  shows  total  reimbursements  to  each  state  or  jurisdiction.  The  report  provides  Lifeline  support  totals  for
 payments  made  to  subscribers  through  local  rate  discounts.  The  payments  shown  in  these  tables  include  TLS  and  PICC  data;  however,  these  tables  do  not  include  state  or  local  rate  contributions.
 Table  7.5  reports  annual  historical  data  for  the  LinkUp  connection  assistance  payments  to  carriers  in  each  state  or  jurisdiction.  The  LinkUp  program  includes  connection  discounts  reflected  in  the
 reimbursements  to  local  carriers.
 Table  7.6  reports  low-  income  support,  by  state  or  jurisdiction,  for  Lifeline  and  LinkUp  payments  between  January  1998  and  December  2000.  Total  carrier  payments  data  include  local  rate
 reductions  for  the  presubscribed  interexchange  carrier  charges  (PICCs),  and  the  carrier's  incremental  cost  of  providing  toll-  limitation  services  in  each  state  or  jurisdiction.  American  Indian  and  Native
 American  tribal  data  are  also  reported  in  this  table  showing  the  2000  data.  Data  are  not  available  for  previous  years  due  to  the  October  2000  implementation  of  $1.00  rate.  Data  will  appear  only  for  states
 where  eligible  subscribers  living  on  tribal  lands  qualify  to  receive  low-  income  support.
42
 7-  4
43
 Table  7.1  Lifeline  Monthly  Support  by  State  or  Jurisdiction
 (As  of  April  2001)
 Basic  Additional  Total  Total  Federal  State  or  Jurisdiction  Federal  State  Federal  Federal  and  State
 Support  Support  Match  Support  Support
 Alabama  $6.10  $3.50  $1.75  $7.85  $11.35  Alaska  6.10  3.50  1.75  7.85  11.35
 American  Samoa  6.10  0.00  0.00  6.10  6.10  Arizona  6.10  3.50  1.14  7.24  10.74
 Arkansas  6.10  0.00  0.00  6.10  6.10  California  6.10  3.50  1.75  7.85  11.35
 Colorado  6.10  3.50  1.75  7.85  11.35  Connecticut  6.10  1.17  0.58  6.68  7.85
 Delaware  6.10  0.00  0.00  6.10  6.10  District  of  Columbia  6.10  3.50  1.75  7.85  11.35
 Florida  6.10  3.50  1.75  7.85  11.35  Georgia  6.10  3.50  1.75  7.85  11.35
 Guam  6.10  3.50  1.75  7.85  11.35  Hawaii  6.10  0.00  0.00  6.10  6.10
 Idaho  6.10  3.50  1.75  7.85  11.35  Illinois  6.10  1.50  0.75  6.85  8.35
 Indiana  6.10  0.00  0.00  6.10  6.10  Iowa  6.10  0.00  0.00  6.10  6.10
 Kansas  6.10  3.50  1.75  7.85  11.35  Kentucky  6.10  3.50  1.75  7.85  11.35
 Louisiana  6.10  0.00  0.00  6.10  6.10  Maine  6.10  3.50  1.75  7.85  11.35
 Maryland  6.10  3.50  1.75  7.85  11.35  Massachusetts  6.10  6.00  1.75  7.85  13.85
 Michigan  6.10  2.00  1.00  7.10  9.10  Minnesota  6.10  0.00  0.00  6.10  6.10
 Mississippi  6.10  3.50  1.75  7.85  11.35  Missouri  6.10  0.00  0.00  6.10  6.10
 Montana  6.10  3.50  1.75  7.85  11.35  Nebraska  6.10  3.50  1.75  7.85  11.35
 Nevada  6.10  3.50  1.75  7.85  11.35  New  Hampshire  6.10  0.00  0.00  6.10  6.10
 New  Jersey  6.10  0.00  0.00  6.10  6.10  New  Mexico  6.10  3.50  1.75  7.85  11.35
 New  York  6.10  3.50  1.75  7.85  11.35  North  Carolina  6.10  3.50  1.75  7.85  11.35
 North  Dakota  6.10  3.50  1.75  7.85  11.35  Northern  Mariana  Islands  6.10  0.00  0.00  6.10  6.10
 Ohio  6.10  0.00  0.00  6.10  6.10  Oklahoma  6.10  1.17  0.58  6.68  7.85
 Oregon  6.10  3.50  1.75  7.85  11.35  Pennsylvania  6.10  2.50  1.25  7.35  9.85
 Puerto  Rico  6.10  0.00  0.00  6.10  6.10  Rhode  Island  6.10  3.50  1.75  7.85  11.35
 South  Carolina  6.10  3.50  1.75  7.85  11.35  South  Dakota  6.10  0.00  0.00  6.10  6.10
 Tennessee  6.10  3.50  1.75  7.85  11.35  Texas  6.10  3.50  1.75  7.85  11.35
 Utah  6.10  3.50  1.75  7.85  11.35  Vermont  6.10  3.50  1.75  7.85  11.35
 Virginia  6.10  3.50  1.75  7.85  11.35  Virgin  Islands  6.10  7.05  1.75  7.85  14.90
 Washington  6.10  3.50  1.75  7.85  11.35  West  Virginia  6.10  2.00  1.00  7.10  9.10
 Wisconsin  6.10  1.17  0.58  6.68  7.85  Wyoming  6.10  3.50  1.75  7.85  11.35
 Source:  Universal  Service  Administrative  Company  (USAC).
 7  -  5
44
45
 Table  7.2
 Lifeline  Assistance  -  Subscribers  by  State  or  Jurisdiction
 State  or  Jurisdiction  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 Alabama  0  0  0  0  0  0  2,648  11,052  14,346  17,201  18,676  21,488
 Alaska  0  0  0  0  0  887  1,445  1,684  1,761  2,530  4,321  8,897
 American  Samoa  0  0  0  0  0  0  0  0  0  156  427  657
 Arizona  5,959  6,723  6,214  5,748  7,587  9,146  9,820  10,679  9,438  21,461  22,118  25,264
 Arkansas  6,262  6,703  7,295  7,479  7,370  6,859  7,988  9,730  8,926  8,870  8,843  9,228
 California  1,467,859  1,578,458  1,792,884  2,000,234  2,327,740  2,534,160  2,817,982  3,032,960  3,000,571  3,105,855  3,157,706  3,196,661
 Colorado  0  9,897  17,871  20,110  18,814  18,136  16,992  22,195  22,452  21,950  23,995  26,644
 Connecticut  0  0  0  0  15,294  50,510  62,982  62,610  61,683  59,547  61,437  64,745
 Delaware  0  0  0  0  0  0  0  0  0  368  606  756
 District  of  Columbia  2,964  2,894  2,866  5,422  12,344  11,572  10,252  9,888  7,580  9,404  10,593  11,236
 Florida  0  0  0  0  0  61,442  108,431  134,258  129,723  131,749  129,980  134,263
 Georgia  0  0  31,681  58,497  67,112  72,548  79,545  79,606  75,341  73,660  74,825  73,037
 Guam  0  0  0  0  0  0  0  0  0  313  905  2,033
 Hawaii  6,378  6,081  5,950  5,862  6,005  6,200  6,444  6,731  6,465  9,008  12,590  15,381
 Idaho  7,861  8,186  8,411  8,149  8,212  7,090  7,347  7,526  7,408  6,907  14,780  19,696
 Illinois  0  0  0  0  26  0  0  0  0  29,104  49,347  57,821
 Indiana  0  0  0  0  0  0  0  0  0  12,439  19,058  19,471
 Iowa  0  0  0  0  0  0  0  0  0  2,460  6,105  11,832
 Kansas  0  0  0  0  0  0  0  0  0  4,260  5,591  8,540
 Kentucky  26  0  0  0  0  0  0  0  0  5,044  25,040  39,550
 Louisiana  0  0  0  0  0  0  0  0  0  5,838  10,435  15,476
 Maine  33,308  44,392  53,020  63,411  70,029  68,482  62,949  61,177  63,553  63,407  67,401  75,186
 Maryland  2,930  5,465  5,203  5,395  5,228  5,226  4,663  4,028  3,964  3,784  3,885  3,948
 Massachusetts  0  87,285  131,635  143,216  160,221  165,723  167,182  162,384  156,294  161,657  167,699  165,520
 Michigan  41,121  66,053  96,044  116,398  130,586  138,870  135,599  131,786  129,337  129,208  132,432  141,536
 Minnesota  45,625  57,529  57,075  51,151  55,380  59,431  51,089  48,494  47,575  49,073  54,787  54,717
 Mississippi  0  0  2,153  2,405  4,493  8,438  9,717  9,282  8,321  10,471  13,370  16,694
 Missouri  15,187  14,639  16,980  17,295  17,356  15,807  13,897  11,272  10,368  7,885  10,709  18,980
 Montana  5,023  5,507  5,405  5,698  6,617  6,744  6,813  8,031  7,613  7,963  9,570  11,060
 Nebraska  0  0  0  0  0  0  0  0  0  9,650  11,434  14,728
 Nevada  4,497  5,702  5,748  6,339  7,528  8,927  9,408  8,472  9,284  3,438  10,551  17,486
 New  Hampshire  0  0  0  0  0  0  0  0  0  2,581  5,205  6,453
 New  Jersey  0  0  0  0  0  0  0  0  0  5,478  6,434  29,095
 New  Mexico  11,722  12,770  15,190  18,660  28,742  32,244  28,380  30,075  30,314  30,816  32,843  36,859
 New  York  271,386  327,808  393,684  456,174  522,684  592,705  705,871  756,657  698,267  703,001  657,267  586,742
 North  Carolina  15,852  14,996  15,812  21,208  23,496  23,446  22,791  23,086  22,595  29,640  44,434  62,475
 North  Dakota  0  10,037  10,610  10,664  10,029  9,411  8,657  7,146  7,369  10,895  11,968  13,196
 Northern  Mariana  Is.  0  0  0  0  0  0  0  0  0  192  494  427
 Ohio  15,420  14,885  15,712  33,450  44,801  47,126  54,706  58,392  60,366  69,358  109,202  167,212
 Oklahoma  0  0  0  0  0  0  0  532  532  1,521  2,454  17,101
 Oregon  22,330  21,551  23,064  25,229  28,305  30,475  35,820  34,804  31,213  27,953  28,934  30,371
 Pennsylvania  0  0  0  0  0  0  0  4,797  7,114  23,202  40,168  48,644
 Puerto  Rico  0  0  0  0  0  0  0  0  0  10,168  16,895  17,720
 Rhode  Island  14,017  15,757  23,765  26,906  38,672  39,992  40,835  42,524  43,881  45,066  46,244  47,412
 South  Carolina  0  0  0  0  0  0  10,624  16,498  18,386  22,222  21,091  20,820
 South  Dakota  4,657  4,764  4,924  5,018  5,076  3,561  3,690  3,718  3,708  10,698  11,532  13,255
 Tennessee  0  0  0  18,749  20,419  20,721  19,934  19,926  18,819  22,915  30,347  38,839
 Texas  21,055  33,698  48,453  96,405  103,232  136,352  165,609  190,095  193,444  210,672  236,934  258,810
 Utah  14,746  16,006  21,565  27,717  28,379  28,157  26,930  24,088  22,625  20,096  19,237  19,394
 Vermont  17,013  18,044  20,661  21,895  22,973  24,322  25,624  24,791  25,356  26,475  28,464  29,740
 Virgin  Islands  0  0  0  0  316  594  253  296  471  567  402  511
 Virginia  14,895  16,201  17,365  19,143  21,293  22,100  20,744  22,180  23,187  22,040  22,306  21,658
 Washington  34,685  49,985  68,235  74,879  85,571  90,148  87,276  84,149  63,965  61,563  61,809  68,142
 West  Virginia  4,930  4,490  4,262  4,115  4,160  4,704  4,230  4,336  5,164  5,320  5,546  5,294
 Wisconsin  31  7  54,137  55,829  54,576  59,744  58,071  50,714  50,894  42,514  59,331  62,715
 Wyoming  0  0  416  1,366  1,271  1,119  818  776  864  1,113  1,337  1,363
 Industry  Total  2,107,739  2,466,513  2,984,290  3,440,216  3,971,937  4,423,119  4,914,056  5,233,425  5,110,537  1/  5,380,726  5,640,094  2/  5,886,779  2/
 1/  Subscriber  data  was  not  actually  collected  in  1997.  USAC  used  estimated  number  of  subscribers  for  all  states.
 2/  Average  number  of  subscribers  reported  for  1999  through  2000  for  companies  requesting  reimbursement  (including  true-  ups  through  March  2001).
 99%  of  all  eligible  companies  have  reported  to  USAC  for  reimbursement  at  this  time.
 Source:  Universal  Service  Administrative  Company  (USAC).
 7  -  6
46
 Table  7.3
 LinkUp  Assistance  -  Subscribers  by  State  or  Jurisdiction
 State  or  Jurisdiction  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 Alabama  1,810  1,927  2,182  1,381  736  308  276  362  NA  2,277  1,590  1,462
 Alaska  0  0  0  0  0  395  777  732  NA  917  982  752
 American  Samoa  0  0  0  0  0  0  0  0  NA  122  89  53
 Arizona  138  416  206  88  257  367  387  906  NA  528  4,805  4,884
 Arkansas  4,846  5,240  6,522  7,067  12,082  16,124  8,549  11,577  NA  8,183  5,395  3,270
 California  0  180  0  0  0  0  0  0  NA  1,542,297  1,325,904  1,216,706
 Colorado  0  585  1,749  1,614  1,257  859  593  2,216  NA  2,537  1,278  1,113
 Connecticut  2,737  3,499  6,661  9,164  10,316  17,176  18,410  13,934  NA  8,938  6,829  4,442
 Delaware  0  0  0  0  0  0  7  406  NA  132  62  48
 District  of  Columbia  531  514  510  1,145  1,863  1,675  1,920  1,784  NA  26  28  3
 Florida  3,924  3,342  3,824  4,690  2,811  2,290  1,639  3,831  NA  9,799  9,266  9,652
 Georgia  0  0  13,052  28,108  21,446  20,753  20,656  15,368  NA  10,701  8,723  4,348
 Guam  0  0  0  0  0  0  0  0  NA  201  703  787
 Hawaii  87  905  1,326  1,708  2,047  2,746  3,989  3,276  NA  6,408  10,126  10,511
 Idaho  64  240  362  396  465  658  571  671  NA  793  1,231  2,169
 Illinois  3,963  23,213  11,721  0  21,278  24,365  15,794  10,077  NA  12,304  12,934  12,949
 Indiana  1,681  1,475  2,747  4,939  4,782  5,010  3,001  4,318  NA  4,605  5,507  5,978
 Iowa  5,997  6,228  5,522  5,221  4,784  4,382  3,249  2,575  NA  2,093  1,449  1,158
 Kansas  613  722  582  635  557  493  435  421  NA  1,385  1,483  3,014
 Kentucky  6,951  6,633  8,931  11,660  10,963  11,819  13,902  14,173  NA  7,550  9,815  8,368
 Louisiana  17,186  28,356  18,693  12,992  7,053  4,943  3,275  1,571  NA  3,911  1,358  989
 Maine  7,244  10,128  12,132  5,576  14,450  19,363  14,798  20,783  NA  21,640  25,887  26,133
 Maryland  243  4,985  3,540  3,168  2,772  2,837  2,613  2,091  NA  1,264  908  637
 Massachusetts  0  8,569  4,366  4,661  17,390  19,464  18,601  11,727  NA  5,864  10,036  6,795
 Michigan  7,572  23,675  36,639  40,339  36,512  34,640  26,198  20,097  NA  18,587  19,501  19,215
 Minnesota  734  949  787  427  443  1,871  834  832  NA  1,058  521  354
 Mississippi  1,558  1,663  1,369  932  2,371  4,236  4,151  2,974  NA  1,819  1,224  952
 Missouri  2,067  1,105  840  766  735  1,633  742  627  NA  4,777  1,150  6,510
 Montana  1,624  1,607  1,157  1,181  1,291  1,253  988  1,909  NA  1,676  1,539  2,014
 Nebraska  438  526  688  878  650  522  496  331  NA  707  1,181  1,947
 Nevada  79  324  487  562  866  685  708  640  NA  117  3,284  3,615
 New  Hampshire  351  407  1,009  1,544  1,805  1,570  1,312  1,246  NA  1,315  1,374  827
 New  Jersey  452  524  580  696  565  567  342  237  NA  1,541  474  1,086
 New  Mexico  2,461  3,173  4,178  5,848  9,963  12,600  12,277  9,171  NA  7,894  7,552  3,134
 New  York  44,221  188,182  241,477  290,856  238,856  290,922  327,123  346,089  NA  199,181  53,961  41,660
 North  Carolina  4,661  2,100  2,348  2,175  1,762  1,207  841  569  NA  2,408  3,237  3,474
 North  Dakota  499  313  373  337  398  355  355  220  NA  1,446  1,026  1,115
 Northern  Mariana  Islands  0  0  0  0  0  0  0  0  NA  1,475  3,891  2,704
 Ohio  11,838  11,157  18,239  37,191  46,028  40,071  29,338  23,196  NA  19,058  25,880  47,801
 Oklahoma  0  728  1,582  1,271  1,281  1,087  1,040  1,260  NA  3,121  1,496  3,827
 Oregon  1,352  3,664  3,657  4,588  6,335  7,144  8,043  7,862  NA  5,901  4,863  8,335
 Pennsylvania  13,702  79,532  85,695  97,585  94,897  100,651  99,105  92,128  NA  63,713  54,251  28,728
 Puerto  Rico  2,519  5,523  4,308  3,886  3,138  3,455  4,116  3,640  NA  3,870  1,783  1,210
 Rhode  Island  584  1,023  960  1,483  2,002  2,808  2,728  2,100  NA  1,766  1,565  1,375
 South  Carolina  3,037  1,535  2,265  1,897  2,113  2,053  1,495  1,158  NA  2,270  2,052  1,699
 South  Dakota  1,038  542  443  439  362  451  369  221  NA  2,330  1,698  2,083
 Tennessee  6,613  3,278  5,418  4,126  5,203  5,004  3,561  3,684  NA  4,190  6,023  5,139
 Texas  15,553  22,587  30,915  41,381  44,184  66,010  72,210  75,708  NA  121,794  121,925  117,985
 Utah  1,043  387  1,781  6,286  4,843  3,758  3,525  5,584  NA  2,880  2,061  1,242
 Vermont  0  1,349  2,073  2,104  2,217  2,485  2,074  1,396  NA  1,366  1,500  2,384
 Virgin  Islands  0  0  0  0  38  111  35  13  NA  199  106  100
 Virginia  5,957  9,598  14,642  14,523  15,701  15,797  15,847  14,428  NA  10,261  7,702  4,619
 Washington  0  3,787  30,134  34,413  37,419  43,429  41,462  45,284  NA  27,780  27,456  29,003
 West  Virginia  481  327  363  322  586  577  657  997  NA  488  865  759
 Wisconsin  17,555  36,444  40,515  40,942  37,380  34,903  28,209  21,937  NA  25,933  27,187  23,629
 Wyoming  500  169  95  94  109  82  56  17  NA  21  50  199
 Industry  Total  206,504  513,335  639,645  743,285  737,362  837,964  823,679  808,354  NA  1/  2,195,417  2/  1,834,766  2/  1,694,945  2/
 NA  -  Not  Available.
 1/  Subscriber  data  was  not  actually  collected  in  1997.
 2/  Subscribers  are  reported  for  January  through  December  2000  for  companies  requesting  reimbursement.  Only  95%  of  all  eligible  companies  have  reported  at  this
 time.
 Source:  Universal  Service  Administrative  Company  (USAC).
 7  -  7
47
 Table  7.4
 Lifeline  Assistance  Annual  Payments  by  State  or  Jurisdiction
 Cumulative
 State  or  Jurisdiction  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000  Total
 Alabama  $0  $0  $0  $0  $0  $0  $56,744  $372,371  $602,521  $1,449,303  $1,590,349  $1,907,509  $5,978,797
 Alaska  0  0  0  0  0  24,330  55,101  69,116  73,941  205,701  383,225  582,693  1,394,107
 American  Samoa  0  0  0  0  0  0  0  0  0  8,167  26,893  41,388  76,448
 Arizona  117,744  136,518  127,419  144,290  188,216  307,699  346,595  383,752  396,391  1,606,287  1,720,671  2,045,764  7,521,346
 Arkansas  251,116  276,742  301,087  316,837  310,979  295,293  301,808  362,497  374,881  585,933  594,392  596,488  4,568,053
 California  29,082,569  32,228,252  36,072,671  40,381,514  47,512,283  52,461,134  57,460,181  62,231,440  63,011,988  244,372,788  249,506,436  264,488,604  1,178,809,860
 Colorado  405,491  173,248  751,056  843,519  802,077  775,750  727,801  829,354  942,972  1,861,235  2,077,456  2,407,587  12,597,546
 Connecticut  0  0  0  0  57,033  1,493,569  2,586,972  2,660,608  2,590,702  3,660,711  4,344,924  4,895,998  22,290,517
 Delaware  0  0  0  0  0  0  0  0  0  23,198  38,185  51,796  113,179
 District  of  Columbia  112,180  99,980  90,500  128,348  312,684  429,396  313,998  293,322  318,368  769,414  876,337  952,218  4,696,745
 Florida  0  0  0  0  0  1,290,282  4,396,137  5,191,213  5,448,368  10,368,040  10,962,971  11,943,361  49,600,372
 Georgia  0  0  794,088  2,247,925  2,764,461  3,003,777  3,315,787  3,383,638  3,164,320  6,187,332  6,313,688  6,461,239  37,636,255
 Guam  0  0  0  0  0  0  0  0  0  18,061  68,177  170,743  256,981
 Hawaii  203,052  198,943  186,490  182,555  190,166  196,554  202,107  273,471  271,524  551,150  805,625  1,074,352  4,335,989
 Idaho  328,732  347,270  358,515  355,127  349,344  328,583  321,830  320,845  311,156  576,367  1,306,602  1,823,306  6,727,677
 Illinois  0  18  414,457  0  0  0  0  0  0  1,856,606  3,285,371  4,419,690  9,976,142
 Indiana  0  0  0  0  0  0  0  0  0  795,195  1,231,284  1,205,989  3,232,468
 Iowa  0  0  0  0  0  0  0  0  0  161,566  409,513  751,517  1,322,596
 Kansas  0  0  0  0  0  0  0  0  38  340,226  474,877  779,530  1,594,671
 Kentucky  0  0  0  0  0  0  0  0  0  315,271  2,128,575  3,482,650  5,926,496
 Louisiana  0  0  0  0  0  0  0  0  0  379,066  681,067  1,071,618  2,131,751
 Maine  1,324,559  1,720,591  2,165,485  2,605,855  2,902,206  2,959,351  2,652,482  2,737,366  2,669,234  5,338,338  5,711,223  6,750,824  39,537,514
 Maryland  120,042  220,346  216,947  213,303  221,574  218,052  211,819  180,079  166,473  317,814  326,288  352,177  2,764,914
 Massachusetts  0  2,552,254  5,126,895  5,996,798  6,598,801  7,064,939  7,146,757  6,952,050  6,564,336  13,628,125  14,207,842  14,821,315  90,660,112
 Michigan  433,487  1,348,992  2,163,526  2,742,396  3,081,708  3,351,293  3,288,234  3,203,533  3,104,079  9,761,204  10,059,023  11,399,192  53,936,667
 Minnesota  1,658,815  2,256,567  2,416,108  2,258,780  2,295,299  2,332,178  2,170,211  2,080,597  1,998,168  3,534,194  3,471,610  3,650,772  30,123,299
 Mississippi  0  0  16,962  29,506  109,841  339,633  399,633  401,106  349,468  887,098  1,136,422  1,489,290  5,158,959
 Missouri  633,736  620,605  648,102  711,138  699,011  653,539  590,212  486,547  435,466  551,102  754,501  1,466,029  8,249,988
 Montana  192,095  234,696  228,885  234,046  266,870  281,441  290,312  328,627  319,745  677,995  824,313  932,381  4,811,406
 Nebraska  0  0  0  0  0  0  0  0  0  619,118  820,980  1,225,081  2,665,179
 Nevada  113,400  122,289  134,038  147,595  172,658  194,440  206,654  196,662  215,016  214,714  754,020  1,319,500  3,790,986
 New  Hampshire  0  0  0  0  0  0  0  0  0  162,362  331,956  443,404  937,722
 New  Jersey  0  0  0  0  0  0  0  0  0  343,979  404,857  2,026,134  2,774,970
 New  Mexico  465,455  528,392  615,450  744,810  1,167,110  1,357,828  1,216,787  1,264,979  1,273,169  2,620,225  2,875,410  3,170,204  17,299,819
 New  York  8,917,964  11,253,994  15,649,754  18,295,637  20,970,135  23,844,744  27,188,016  30,924,772  29,327,216  54,776,809  51,473,090  48,410,705  341,032,836
 North  Carolina  681,469  637,444  647,593  875,130  962,905  1,003,092  922,046  972,403  948,969  2,443,601  3,755,587  5,637,945  19,488,184
 North  Dakota  159  299,829  438,302  447,187  421,896  412,255  378,733  333,434  309,496  876,274  960,538  1,016,245  5,894,348
 Northern  Mariana  Islands  0  0  0  0  0  0  0  0  0  10,659  30,391  29,576  70,626
 Ohio  643,659  643,996  650,084  1,304,827  1,963,353  2,293,070  2,409,791  2,366,359  2,535,383  5,390,963  8,113,627  13,118,285  41,433,397
 Oklahoma  0  0  0  0  0  0  0  10  900  106,526  173,816  800,828  1,082,080
 Oregon  891,600  894,729  944,221  1,044,746  1,175,398  1,262,606  1,499,920  1,479,004  1,310,954  2,381,568  2,484,518  2,750,033  18,119,297
 Pennsylvania  0  0  0  0  0  0  0  87,639  298,771  1,742,564  3,043,969  3,941,186  9,114,129
 Puerto  Rico  0  0  0  0  0  0  0  0  0  587,156  1,064,389  1,116,360  2,767,905
 Rhode  Island  571,349  643,660  960,213  1,111,414  1,487,776  1,693,628  1,713,982  1,772,985  1,843,008  3,776,998  3,898,361  4,191,937  23,665,311
 South  Carolina  0  0  0  0  0  0  264,326  647,296  772,226  1,825,532  1,735,670  1,776,712  7,021,762
 South  Dakota  190,399  201,953  207,281  211,499  214,402  160,110  156,115  152,834  155,737  674,584  742,425  875,153  3,942,492
 Tennessee  0  0  0  506,187  844,079  881,488  837,524  841,342  790,409  1,874,811  2,527,805  3,385,607  12,489,252
 Texas  800,535  1,120,002  1,736,759  3,576,193  4,181,609  5,335,092  6,723,118  7,776,103  8,124,667  17,624,701  20,341,821  23,137,460  100,478,060
 Utah  381,945  609,049  874,025  1,161,879  1,203,870  1,208,738  1,179,200  1,057,483  950,263  1,699,274  1,665,098  1,771,270  13,762,094
 Vermont  691,848  755,646  858,766  924,333  979,697  1,041,838  1,094,178  1,039,649  1,064,932  2,214,987  2,403,381  2,645,685  15,714,940
 Virgin  Islands  0  0  0  0  5,753  29,075  22,459  14,293  19,779  49,229  40,225  44,910  225,723
 Virginia  599,744  669,972  704,087  782,585  907,400  920,012  912,437  911,374  973,851  1,789,384  1,860,517  1,910,157  12,941,520
 Washington  858,824  1,474,869  2,199,086  2,524,658  2,997,455  2,966,094  2,813,846  2,743,597  2,686,537  4,182,773  4,962,458  6,131,336  36,541,533
 West  Virginia  206,163  192,927  181,082  175,309  188,356  206,594  190,638  176,422  216,891  367,974  383,484  393,823  2,879,663
 Wisconsin  117  234  217,958  482,544  521,821  617,261  676,880  653,204  610,732  2,768,442  3,882,741  4,459,226  14,891,160
 Wyoming  0  0  5,833  57,652  54,640  49,077  36,101  33,007  36,306  93,464  113,024  122,227  601,331
 Industry  Total  $50,878,248  1/  $62,464,007  1/  $79,103,725  1/  $93,766,122  1/  $109,082,866  1/  $123,283,835  1/  $137,277,472  1/  $148,186,383  1/  $147,579,351  1/  $422,006,158  1/  $446,161,998  1/  $487,867,009  2/  $2,307,657,174
 1/  Payments  are  final  and  not  subject  to  further  adjustment.
 2/  Dollars  reported  are  for  companies  requesting  reimbursement.  Approximately  99%  have  reported  at  this  time.  Data  include  true-  ups  submitted  through  April  2001.  Lifeline  dollars  for  1998,  1999,  and  2000  include
 toll-  limitation  services  (TLS)  and  presubscribed  interexchange  carrier  charges  (PICCs).
 Source:  Universal  Service  Administrative  Company  (USAC).
 7  -  8
48
 Table  7.5
 LinkUp  Assistance  Annual  Payments  by  State  or  Jurisdiction
 Cumulative
 State  or  Jurisdiction  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000  Total
 Alabama  $36,757  $41,125  $47,246  $30,322  $16,881  $7,021  $5,467  $6,661  $9,738  $37,868  $28,882  $28,540  $296,508
 Alaska  0  0  0  0  0  8,541  16,530  14,673  10,485  18,647  24,494  15,766  109,136
 American  Samoa  NA  NA  NA  NA  NA  NA  NA  NA  NA  3,660  2,670  1,590  7,920
 Arizona  2,815  9,260  4,792  2,054  6,000  8,533  23,340  22,359  23,234  12,473  112,999  106,410  334,269
 Arkansas  92,263  102,651  128,727  152,380  304,253  337,111  164,617  232,383  221,128  142,354  101,090  61,903  2,040,860
 California  0  0  0  0  0  0  0  0  0  28,628,622  24,003,283  20,961,605  73,593,510
 Colorado  0  15,586  47,146  43,867  34,417  15,065  10,498  38,773  48,230  44,545  22,506  19,572  340,205
 Connecticut  51,674  66,848  125,749  169,970  205,974  386,459  414,224  313,522  256,225  201,089  153,651  99,947  2,445,332
 Delaware  0  0  0  0  0  0  126  7,308  8,268  2,376  1,116  864  20,058
 District  of  Columbia  8,955  7,909  7,848  17,611  27,500  22,288  27,760  27,102  27,399  400  430  46  175,248
 Florida  85,917  76,242  82,224  113,225  69,296  73,744  88,707  100,275  87,753  196,450  188,233  202,121  1,364,187
 Georgia  0  0  277,968  604,321  461,379  449,418  444,097  330,076  146,239  204,709  167,716  85,708  3,171,631
 Guam  0  0  0  0  0  0  0  0  0  3,521  12,304  13,775  29,600
 Hawaii  1,968  13,660  14,969  19,168  24,428  33,051  46,507  37,856  34,115  145,251  229,187  237,604  837,764
 Idaho  839  4,136  5,860  6,407  7,418  10,578  8,985  9,861  18,754  11,539  16,029  31,130  131,536
 Illinois  106,872  628,664  320,216  0  555,206  617,419  477,288  282,633  232,685  318,391  332,878  330,179  4,202,431
 Indiana  36,987  35,646  63,398  119,317  112,484  117,045  71,478  40,189  58,703  103,940  127,536  173,754  1,060,477
 Iowa  107,881  115,069  99,478  92,333  81,214  74,162  56,111  40,437  18,771  29,421  21,116  18,927  754,920
 Kansas  11,367  14,320  10,914  11,530  10,673  9,573  8,141  8,429  35,655  26,737  28,662  58,456  234,457
 Kentucky  168,846  174,698  191,793  245,518  233,258  262,990  263,666  274,776  175,728  143,852  186,399  156,138  2,477,662
 Louisiana  490,741  838,721  551,215  386,163  210,409  147,015  76,603  38,121  15,288  74,074  26,208  20,876  2,875,434
 Maine  160,899  222,351  271,175  120,532  321,595  430,941  327,363  461,108  522,810  477,470  574,103  580,616  4,470,963
 Maryland  5,840  118,647  85,142  81,999  71,223  52,782  63,008  50,178  46,278  30,336  21,760  15,289  642,482
 Massachusetts  0  140,028  76,355  86,415  322,410  366,427  344,862  217,417  131,948  108,720  186,067  123,288  2,103,937
 Michigan  172,430  501,015  761,801  840,265  786,106  720,903  472,243  224,317  477,688  384,073  405,941  400,017  6,146,799
 Minnesota  11,131  11,455  12,644  12,660  38,742  35,475  8,435  7,622  14,189  15,793  6,078  4,431  178,655
 Mississippi  39,512  29,533  26,277  17,743  45,472  81,156  94,989  67,873  31,033  38,302  24,647  20,981  517,518
 Missouri  42,064  19,760  14,615  17,047  27,775  23,702  12,190  10,308  9,880  83,766  18,640  116,109  395,856
 Montana  35,833  35,615  25,154  25,074  26,475  19,726  13,413  24,502  24,304  22,356  20,819  29,283  302,554
 Nebraska  6,996  7,964  11,267  15,382  11,950  9,001  6,892  5,253  4,391  9,542  17,312  28,993  134,943
 Nevada  390  3,004  9,338  10,999  15,107  11,838  11,691  13,445  8,605  1,902  55,557  61,441  203,317
 New  Hampshire  7,107  8,510  21,420  36,328  44,199  42,146  32,147  30,530  31,583  26,155  26,750  16,111  322,986
 New  Jersey  9,232  10,755  12,054  14,502  11,745  11,814  8,106  4,995  3,844  33,071  10,043  22,951  153,112
 New  Mexico  61,605  79,198  107,467  152,371  304,961  262,693  131,859  137,238  128,193  116,668  114,304  44,316  1,640,873
 New  York  1,026,301  4,483,514  5,962,604  6,611,528  7,243,113  8,120,361  8,972,155  9,586,748  5,604,194  5,480,654  1,470,599  1,130,276  65,692,047
 North  Carolina  66,490  31,302  33,805  32,761  24,042  19,718  13,958  9,510  8,720  38,545  51,344  55,486  385,681
 North  Dakota  7,493  5,082  6,182  5,713  6,682  5,534  5,636  3,491  17,922  23,026  16,357  17,665  120,783
 Northern  Mariana  Islands  0  0  0  0  0  0  0  0  0  5,887  11,435  8,879  26,201
 Ohio  226,194  204,433  311,997  650,806  775,582  690,334  515,674  394,796  374,183  322,012  422,074  806,733  5,694,818
 Oklahoma  0  15,826  35,077  27,986  28,251  23,936  20,142  22,082  33,908  47,878  30,464  80,619  366,169
 Oregon  10,643  23,262  22,801  31,834  46,035  54,485  57,728  53,338  51,816  46,222  39,955  76,671  514,790
 Pennsylvania  273,123  1,592,565  1,743,115  1,976,702  1,904,903  2,022,887  1,969,372  1,850,064  1,735,564  1,257,631  1,043,649  531,581  17,901,156
 Puerto  Rico  44,084  91,784  72,561  65,986  54,826  57,950  69,244  76,381  83,138  68,116  31,208  22,598  737,876
 Rhode  Island  8,498  14,527  13,634  21,059  28,427  38,416  45,309  35,531  25,226  29,878  26,478  23,267  310,250
 South  Carolina  62,420  38,303  34,894  36,759  40,434  38,405  30,035  21,851  19,639  42,591  39,047  32,120  436,498
 South  Dakota  18,167  9,368  7,755  7,685  6,349  5,641  4,614  2,765  2,257  29,490  22,426  30,466  146,983
 Tennessee  137,758  73,824  62,690  69,673  86,711  85,071  89,617  60,589  22,082  78,322  108,680  106,034  981,051
 Texas  424,313  636,839  591,565  811,837  825,340  1,258,838  1,371,343  1,632,153  1,517,075  2,244,255  2,325,072  2,257,220  15,895,850
 Utah  18,515  6,870  31,614  111,578  85,963  35,478  32,798  74,404  53,213  36,078  25,804  15,404  527,719
 Vermont  0  22,132  34,041  34,358  36,314  40,478  34,039  24,863  19,126  24,174  26,545  42,223  338,293
 Virgin  Islands  0  0  0  0  1,012  2,584  1,001  317  1,392  2,005  1,004  1,763  11,078
 Virginia  122,944  173,149  267,462  289,381  323,486  248,128  292,190  269,695  267,013  183,002  141,017  86,434  2,663,901
 Washington  1,179  59,277  467,920  532,652  561,632  668,199  693,528  676,482  623,757  417,353  424,733  494,540  5,621,252
 West  Virginia  8,050  7,002  7,878  7,366  11,983  16,145  15,119  14,508  16,102  8,966  12,814  10,024  135,957
 Wisconsin  256,423  526,066  581,758  569,079  537,514  490,668  426,278  356,626  370,939  378,836  450,289  537,180  5,481,656
 Wyoming  10,098  3,510  1,865  1,934  2,180  1,449  938  342  400  338  893  3,609  27,556
 Industry  Total  $4,479,614  1/  $11,351,005  1/  $13,705,470  1/  $15,342,180  1/  $17,019,329  1/  $18,573,322  1/  $18,392,061  1/  $18,246,756  1/  $13,710,810  1/  $42,463,332  1/  $33,991,297  2/  $30,459,529  2/  $237,734,705
 NA  -  Not  Available.
 1/  Payments  are  final  and  are  not  subject  to  further  adjustment.
 2/  Dollars  reported  are  for  companies  requesting  reimbursement.  Approximately  99%  have  reported  at  this  time.  Data  includes  true-  ups  through  April  2001.
 Source:  Universal  Service  Administrative  Company  (USAC).
 7  -  9
49
 Table  7.6
 (January  1998  -  December  1998)
 State  or  Jurisdiction  Lifeline  LinkUp  TLS  PICCs  Total
 Non-  Tribal  Non-  Tribal
 Alabama  $1,430,879  $37,868  $2,119  $16,305  $1,487,171
 Alaska  191,057  18,647  14,584  60  224,348
 American  Samoa  8,167  3,660  0  0  11,827
 Arizona  1,591,648  12,473  13,621  1,018  1,618,760
 Arkansas  579,956  142,354  2,837  3,140  728,287
 California  241,532,455  28,628,622  2,077,337  762,996  273,001,410
 Colorado  1,834,312  44,545  18,578  8,345  1,905,780
 Connecticut  3,611,946  201,089  27,447  21,318  3,861,800
 Delaware  23,198  2,376  0  0  25,574
 District  of  Columbia  769,414  400  0  0  769,814
 Florida  10,286,854  196,450  10,707  70,479  10,564,490
 Georgia  6,129,384  204,709  8,052  49,896  6,392,041
 Guam  18,061  3,521  0  0  21,582
 Hawaii  551,000  145,251  0  150  696,401
 Idaho  571,493  11,539  3,877  997  587,906
 Illinois  1,838,320  318,391  995  17,291  2,174,997
 Indiana  783,774  103,940  1,533  9,888  899,135
 Iowa  148,518  29,421  11,232  1,816  190,987
 Kansas  337,249  26,737  993  1,984  366,963
 Kentucky  305,764  143,852  4,200  5,307  459,123
 Louisiana  366,776  74,074  1,433  10,857  453,140
 Maine  5,299,276  477,470  19,660  19,402  5,815,808
 Maryland  317,814  30,336  0  0  348,150
 Massachusetts  13,572,243  108,720  0  55,882  13,736,845
 Michigan  9,678,929  384,073  8,773  73,502  10,145,277
 Minnesota  3,530,029  15,793  3,233  932  3,549,987
 Mississippi  876,569  38,302  1,234  9,295  925,400
 Missouri  545,925  83,766  2,683  2,494  634,868
 Montana  665,529  22,356  10,524  1,942  700,351
 Nebraska  603,067  9,542  12,640  3,411  628,660
 Nevada  214,291  1,902  410  13  216,616
 New  Hampshire  161,489  26,155  0  873  188,517
 New  Jersey  343,628  33,071  351  0  377,050
 New  Mexico  2,517,906  116,668  70,603  31,716  2,736,893
 New  York  53,807,308  5,480,654  74  969,427  60,257,463
 North  Carolina  2,427,820  38,545  2,416  13,365  2,482,146
 North  Dakota  861,146  23,026  10,603  4,525  899,300
 Northern  Mariana  Islands  10,659  5,887  0  0  16,546
 Ohio  5,270,380  322,012  21,328  99,255  5,712,975
 Oklahoma  104,566  47,878  883  1,077  154,404
 Oregon  2,351,543  46,222  19,739  10,286  2,427,790
 Pennsylvania  1,741,674  1,257,631  90  800  3,000,195
 Puerto  Rico  587,156  68,116  0  0  655,272
 Rhode  Island  3,753,152  29,878  0  23,846  3,806,876
 South  Carolina  1,798,292  42,591  6,134  21,106  1,868,123
 South  Dakota  656,428  29,490  14,889  3,267  704,074
 Tennessee  1,863,198  78,322  1,364  10,249  1,953,133
 Texas  17,082,669  2,244,255  173,804  368,228  19,868,956
 Utah  1,665,232  36,078  24,856  9,186  1,735,352
 Vermont  2,211,542  24,174  487  2,958  2,239,161
 Virgin  Islands  49,229  2,005  0  0  51,234
 Virginia  1,788,279  183,002  478  627  1,972,386
 Washington  4,059,632  417,353  89,905  33,236  4,600,126
 West  Virginia  367,951  8,966  0  23  376,940
 Wisconsin  2,716,657  378,836  3,037  48,748  3,147,278
 Wyoming  92,881  338  456  127  93,802
 Industry  Total  $416,504,314  $42,463,332  $2,700,199  $2,801,645  $464,469,490
 Note:  These  dollars  represent  submitted  claims  to  USAC  for  the  time  period  January  1998  through
 December  1998,  including  true-  ups  reported  to  date.  Verizon-  NJ  and  Sprint-  NJ  were
 granted  Eligible  Telecommunications  Carrier  (ETC)  status  retroactive  to  January  1998.
 Nevada  Bell  did  not  receive  ETC  status  until  December  1998  and  began  reporting  Lifeline
 starting  in  January  1999.
 Source:  Universal  Service  Administration  Company  (USAC).
 Universal  Service  Payments
 7  -  10
50
 State  or  Jurisdiction  Lifeline  LinkUp  TLS  PICCs  Total
 Non-  Tribal  Non-  Tribal
 Alabama  $1,563,850  $28,882  $2,175  $24,324  $1,619,231
 Alaska  353,682  24,494  29,075  468  407,719
 American  Samoa  26,893  2,670  0  0  29,563
 Arizona  1,618,554  112,999  69,449  32,668  1,833,670
 Arkansas  584,481  101,090  2,315  7,596  695,482
 California  246,181,577  24,003,283  2,268,441  1,056,418  273,509,719
 Colorado  2,015,411  22,506  37,514  24,531  2,099,962
 Connecticut  4,298,141  153,651  22,820  23,963  4,498,575
 Delaware  38,185  1,116  0  0  39,301
 District  of  Columbia  876,337  430  0  0  876,767
 Florida  10,838,023  188,233  16,581  108,367  11,151,204
 Georgia  6,213,460  167,716  10,594  89,634  6,481,404
 Guam  68,177  12,304  0  0  80,481
 Hawaii  797,072  229,187  3,520  5,033  1,034,812
 Idaho  1,264,737  16,029  24,355  17,510  1,322,631
 Illinois  3,236,547  332,878  2,085  46,739  3,618,249
 Indiana  1,204,783  127,536  2,801  23,700  1,358,820
 Iowa  384,652  21,116  15,981  8,880  430,629
 Kansas  465,671  28,662  2,279  6,927  503,539
 Kentucky  2,091,160  186,399  9,103  28,312  2,314,974
 Louisiana  656,564  26,208  1,985  22,518  707,275
 Maine  5,646,395  574,103  8,086  56,742  6,285,326
 Maryland  326,288  21,760  0  0  348,048
 Massachusetts  14,086,751  186,067  0  121,091  14,393,909
 Michigan  9,933,108  405,941  9,234  116,681  10,464,964
 Minnesota  3,454,859  6,078  10,887  5,864  3,477,688
 Mississippi  1,114,842  24,647  2,003  19,577  1,161,069
 Missouri  740,625  18,640  4,310  9,566  773,141
 Montana  800,802  20,819  18,143  5,368  845,132
 Nebraska  797,127  17,312  15,183  8,670  838,292
 Nevada  747,742  55,557  2,562  3,716  809,577
 New  Hampshire  327,542  26,750  0  4,414  358,706
 New  Jersey  404,504  10,043  353  0  414,900
 New  Mexico  2,727,036  114,304  80,826  67,548  2,989,714
 New  York  50,318,021  1,470,599  3,613  1,151,456  52,943,689
 North  Carolina  3,721,083  51,344  5,429  29,075  3,806,931
 North  Dakota  935,573  16,357  15,270  9,695  976,895
 Northern  Mariana  Islands  30,391  11,435  0  0  41,826
 Ohio  7,842,922  422,074  39,250  231,455  8,535,701
 Oklahoma  169,874  30,464  1,166  2,776  204,280
 Oregon  2,437,301  39,955  20,675  26,542  2,524,473
 Pennsylvania  3,042,089  1,043,649  28  1,852  4,087,618
 Puerto  Rico  1,064,389  31,208  0  0  1,095,597
 Rhode  Island  3,851,306  26,478  0  47,055  3,924,839
 South  Carolina  1,696,546  39,047  10,849  28,275  1,774,717
 South  Dakota  723,332  22,426  9,546  9,547  764,851
 Tennessee  2,491,886  108,680  7,171  28,748  2,636,485
 Texas  19,380,081  2,325,072  203,308  758,432  22,666,893
 Utah  1,615,497  25,804  31,258  18,343  1,690,902
 Vermont  2,392,069  26,545  2,779  8,533  2,429,926
 Virgin  Islands  40,225  1,004  0  0  41,229
 Virginia  1,858,516  141,017  751  1,250  2,001,534
 Washington  4,782,832  424,733  105,612  74,014  5,387,191
 West  Virginia  382,514  12,814  871  99  396,298
 Wisconsin  3,802,028  450,289  4,985  75,728  4,333,030
 Wyoming  111,837  893  794  393  113,917
 Industry  Total  $438,575,890  $33,991,297  $3,136,015  $4,450,093  $480,153,295
 Note:  These  dollars  represent  submitted  claims  to  USAC  for  the  time  period  January  1999  through
 December  1999,  including  true-  ups  reported  to  date.
 Source:  Universal  Service  Administration  Company  (USAC).
 Table  7.6
 Universal  Service  Payments  -  Continued
 (January  1999  -  December  1999)
 7  -  11
51
 Table  7.6
 Universal  Service  Payments  -  Continued
 January  2000  -  December  2000
 State  or  Jurisdiction  Lifeline  LinkUp  TLS  PICCs  Total
 Non-  Tribal  Tribal  Non-  Tribal  Tribal
 Alabama  $1,887,401  $0  $28,540  $0  $2,528  $17,580  $1,936,049
 Alaska  504,720  58,392  12,193  3,573  18,949  632  598,459
 American  Samoa  41,388  -  1,590  -  -  -  42,978
 Arizona  1,898,881  32,801  101,134  5,276  81,773  32,309  2,152,174
 Arkansas  586,944  -  61,903  -  3,213  6,331  658,391
 California  261,895,128  307  20,961,533  72  1,841,377  751,792  285,450,209
 Colorado  2,358,725  68  19,572  -  27,949  20,845  2,427,159
 Connecticut  4,852,942  -  99,947  -  27,660  15,396  4,995,945
 Delaware  51,668  -  864  -  128  -  52,660
 District  of  Columbia  952,110  -  46  -  108  -  952,264
 Florida  11,844,957  4  202,121  -  21,765  76,635  12,145,482
 Georgia  6,391,416  -  85,708  -  10,274  59,549  6,546,947
 Guam  170,743  -  13,775  -  -  -  184,518
 Hawaii  1,058,126  -  237,604  -  -  16,226  1,311,956
 Idaho  1,767,511  126  31,130  -  38,088  17,581  1,854,436
 Illinois  4,381,869  -  330,179  -  1,412  36,409  4,749,869
 Indiana  1,186,839  -  173,754  -  2,719  16,431  1,379,743
 Iowa  722,242  -  18,927  -  20,727  8,548  770,444
 Kansas  767,211  -  58,456  -  5,349  6,970  837,986
 Kentucky  3,442,855  -  156,138  -  14,389  25,406  3,638,788
 Louisiana  1,051,428  -  20,876  -  2,500  17,690  1,092,494
 Maine  6,689,275  228  580,213  403  10,133  51,188  7,331,440
 Maryland  351,760  -  15,289  -  417  -  367,466
 Massachusetts  14,724,979  -  123,288  -  -  96,336  14,944,603
 Michigan  11,311,056  24  400,017  -  8,381  79,731  11,799,209
 Minnesota  3,631,357  494  4,431  -  12,966  5,955  3,655,203
 Mississippi  1,470,386  -  20,981  -  2,972  15,932  1,510,271
 Missouri  1,426,473  -  116,109  -  19,758  19,798  1,582,138
 Montana  886,432  19,611  21,911  7,372  22,405  3,933  961,664
 Nebraska  1,188,853  1,978  28,824  169  27,183  7,067  1,254,074
 Nevada  1,305,766  598  61,370  71  9,261  3,875  1,380,941
 New  Hampshire  439,221  -  16,111  -  -  4,183  459,515
 New  Jersey  2,025,566  -  22,951  -  568  -  2,049,085
 New  Mexico  3,028,392  11,411  43,546  770  80,732  49,669  3,214,520
 New  York  47,786,738  50  1,130,193  83  7,097  616,820  49,540,981
 North  Carolina  5,603,699  6  55,486  -  11,694  22,546  5,693,431
 North  Dakota  981,297  7,392  17,495  170  18,655  8,901  1,033,910
 Northern  Mariana  Islands  29,576  -  8,879  -  -  -  38,455
 Ohio  12,843,487  -  806,733  -  68,374  206,424  13,925,018
 Oklahoma  504,504  283,269  79,986  633  9,908  3,147  881,447
 Oregon  2,707,045  84  76,671  -  20,206  22,698  2,826,704
 Pennsylvania  3,939,054  -  531,581  -  32  2,100  4,472,767
 Puerto  Rico  1,116,360  -  22,598  -  -  -  1,138,958
 Rhode  Island  4,155,000  -  23,267  -  -  36,937  4,215,204
 South  Carolina  1,744,499  99  32,120  -  13,455  18,659  1,808,832
 South  Dakota  804,289  47,954  25,434  5,032  14,455  8,455  905,619
 Tennessee  3,345,313  -  106,034  -  17,450  22,844  3,491,641
 Texas  22,365,281  38  2,257,220  -  181,143  590,998  25,394,680
 Utah  1,724,117  62  15,395  9  32,202  14,889  1,786,674
 Vermont  2,634,678  -  42,223  -  2,828  8,179  2,687,908
 Virgin  Islands  44,910  -  1,763  -  -  -  46,673
 Virginia  1,906,937  -  86,434  -  1,992  1,228  1,996,591
 Washington  5,933,141  14,817  459,040  35,500  115,748  67,630  6,625,876
 West  Virginia  390,479  -  10,024  -  3,271  73  403,847
 Wisconsin  4,402,612  203  537,180  -  5,691  50,720  4,996,406
 Wyoming  118,962  1,305  3,555  54  1,436  524  125,836
 Industry  Total  $481,376,598  $481,321  $30,400,342  $59,187  $2,841,321  $3,167,769  $518,326,538
 Note:  These  dollars  represent  submitted  claims  to  USAC  for  the  time  period  January  2000  through  December  2000,
 including  true-  ups  reported  to  date.  District  of  Columbia  has,  as  of  December  2000,  been  compensated  for  Lifeline
 programs  as  Eligible  Telecommunications  Carrier  (ETC)  status  has  finally  been  granted  retroactive  to  January  1998.
 Source:  Universal  Service  Administration  Company  (USAC).
 7  -  12
52
 8-  1
 8  Lines
 Within  the  telephone  industry  there  are  several  alternative,  but  closely  related,  definitions  of  telephone  lines  or  loops.  While  these  differences  often  make  it  difficult  to  reconcile  data  from  different
 statistical  series,  they  are  not  usually  large  enough  to  affect  comparisons  among  companies  or  trends  over  time.  Since  1970,  over  90%  of  households  and  virtually  all  businesses  have  subscribed  to
 telephone  service.  Line  growth  over  time,  averaging  about  3%  per  year,  has  historically  reflected  growth  in  the  population  and  the  economy.  In  recent  years,  the  growth  in  lines  has  increased  as
 households  have  added  additional  lines.
 Table  8.1  shows  the  nation's  total  number  of  telephone  lines  using  three  alternative  measures.  One  measure  is  the  number  of  local  loops,  which  is  a  way  of  counting  lines  that  is  used  to  determine  the
 amount  of  Universal  Service  Fund  payments  to  local  exchange  carriers.  A  second  measure  is  the  number  of  presubscribed  lines,  which  were  used  before  1998  to  determine  the  amount  of  payments  by
 the  interexchange  carriers  to  support  the  Universal  Service  Fund  and  the  Lifeline  and  LinkUp  programs.  The  third  measure,  access  lines,  represents  estimates  for  the  whole  industry  based  on  data  filed  with  the
 Commission  by  large  local  exchange  carriers.
 Table  8.2  shows  the  number  of  local  exchange  operating  areas  (study  areas)  and  loops  in  each  state,  and  shows  breakdowns  by  loops  for  price-  cap  and  average-  schedule  companies.  Table  8.3
 shows  the  number  of  loops  by  holding  companies.
 Table  8.4  compares  the  number  of  residential  local  loops  with  the  number  of  households  with  telephone  service.  The  difference  between  these  series  is  an  approximate  measure  of  the  number  of
 additional  residential  access  lines.  Table  8.4  shows  that  the  percentage  of  additional  lines  for  households  with  telephone  service  has  increased  dramatically,  from  about  3%  in  1988  to  about  29%  in
 1999.
 Long  distance  carriers  are  required  to  pay  payphone  owners  $0.24  for  every  completed  dial-around  call  (calls  where  the  consumer  chooses  the  long  distance  carrier  over  the  payphones
 presubscribed  long  distance  carrier).  2  Because  of  this  requirement,  several  long  distance  carriers  employ  the  National  Payphone  Clearinghouse  to  administer  payments  on  their  behalf.  On  an  annual
 basis,  the  National  Payphone  Clearinghouse  supplies  the  FCC  with  data  that  allows  the  number  of  payphones  in  each  state  to  be  calculated.  Table  8.5  shows  the  number  of  payphones  owned  by  LECs
 and  by  independent  payphone  operators  in  each  state  at  the  end  of  the  first  quarter  of  1999,  2000,  and  2001  respectively.  The  number  of  payphones  is  broken  down  by  whether  the  payphones  are  served  by
 an  RBOC  or  by  another  LEC.
 2  See  Third  Report  and  Order  and  Order  on  Reconsideration  of  the  2nd  Report  and  Order,  CC
 Docket  96-  128,  adopted  Jan.  28,  1999.
53
 8-  2
54
 Table  8.1
 Total  U.  S.  Telephone  Lines
 Year  Presubscribed  Annual  Local  Annual  Access  Annual
 End  Lines  Growth  Loops  Growth  Lines  Growth
 (%)  (%)  (%)
 1980  102,216,367
 1981  105,559,222  3.3  %
 1982  107,519,214  1.9
 1983  110,612,689  2.9
 1984  112,550,739  1.8  113,880,538
 1985  115,985,813  3.1  117,434,802  3.1  %
 1986  118,289,121  2.0  120,781,565  2.8
 1987  121,466,500  122,789,249  3.8  124,678,710  3.2
 1988  124,360,829  2.4  %  127,086,765  3.5  126,953,616  1.8
 1989  128,482,479  3.3  131,504,568  3.5  130,915,695  3.1
 1990  132,408,608  3.1  136,114,201  3.5  134,743,029  2.9
 1991  135,286,582  2.2  139,412,884  2.4  139,672,703  3.7
 1992  138,725,040  2.5  143,341,581  2.8  142,428,028  2.0
 1993  142,809,280  2.9  148,106,159  3.3  147,095,681  3.3
 1994  148,479,328  4.0  153,447,946  3.6  151,607,529  3.1
 1995  152,601,177  2.8  159,658,662  4.0  158,219,924  4.4
 1996  158,672,243  4.0  166,445,580  4.3  165,420,650  4.6
 1997  NA  NA  173,868,033  4.5  173,705,523  5.0
 1998  NA  NA  179,846,360  3.4  180,471,261  3.9
 1999  NA  NA  184,985,055  2.9  186,260,652  3.2
 NA  -  Not  Available.
 Source:  Presubscribed  lines  and  local  loops:  National  Exchange  Carrier  Association.
 Access  Lines:  Statistics  of  Communications  Common  Carriers  ,  1999  edition,  Table  4.10,
 after  inflating  access  lines  of  reporting  carriers  to  represent  the  total  industry.
 8  -  3
55
 Table  8.2
 Telephone  Loops  of  Incumbent  Local  Exchange  Carriers  by  State
 (As  of  December  31,  1999)
 Price  Cap  Non-  Price  Cap
 Study  Areas
 Bell
 Company
 Loops
 Other
 Company
 Loops
 Average
 Schedule
 Company
 Loops
 Other
 Company
 Loops  Total  Loops
 Alabama  28  2,000,061  323,533  52,741  145,298  2,521,633  Alaska  25  0  23,493  226  434,981  458,700
 American  Somoa  1  0  0  10,506  0  10,506  Arizona  16  2,774,707  162,506  0  34,337  2,971,550
 Arkansas  28  1,039,166  222,076  25,768  214,271  1,501,281  California  22  17,782,239  4,749,226  0  204,992  22,736,457
 Colorado  28  2,737,393  0  3,288  123,489  2,864,170  Connecticut  2  2,411,062  0  24,144  0  2,435,206
 Delaware  1  582,735  0  0  0  582,735  District  of  Columbia  1  926,875  0  0  0  926,875
 Florida  12  6,686,776  4,439,100  0  183,683  11,309,559  Georgia  36  4,338,146  28,652  76,750  765,277  5,208,825
 Guam  1  0  0  0  77,609  77,609  Hawaii  2  0  722,147  0  269  722,416
 Idaho  21  529,331  156,648  5,014  42,307  733,300  Illinois  56  7,089,259  970,306  43,616  227,244  8,330,425
 Indiana  42  2,280,543  1,242,839  93,824  64,078  3,681,284  Iowa  153  1,088,216  349,338  199,238  40,837  1,677,629
 Kansas  39  1,445,327  145,017  21,327  108,435  1,720,106  Kentucky  19  1,240,607  760,175  142,721  48,085  2,191,588
 Louisiana  20  2,396,531  0  9,964  179,284  2,585,779  Maine  20  718,057  0  36,539  107,339  861,935
 Maryland  2  3,833,217  0  7,714  0  3,840,931  Massachusetts  3  4,582,859  0  2,964  1,159  4,586,982
 Michigan  39  5,514,290  809,602  35,278  172,044  6,531,214  Minnesota  88  2,246,696  424,521  235,467  163,035  3,069,719
 Mississippi  19  1,326,316  6,321  23,931  63,474  1,420,042  Missouri  43  2,716,232  726,282  21,206  162,963  3,626,683
 Montana  18  366,557  8,742  4,129  159,005  538,433  Nebraska  41  508,081  384,729  29,554  84,103  1,006,467
 Nevada  14  358,700  926,999  0  31,879  1,317,578  New  Hampshire  10  818,682  0  2,164  54,456  875,302
 New  Jersey  3  6,519,258  219,929  0  10,492  6,749,679  New  Mexico  15  811,430  99,748  0  43,318  954,496
 New  York  44  11,466,333  1,067,356  21,518  263,337  12,818,544  North  Carolina  26  2,544,247  1,828,529  253,485  467,061  5,093,322
 North  Dakota  24  253,914  0  63,272  100,680  417,866  Northern  Mariana  Islands  1  0  24,945  0  0  24,945
 Ohio  42  4,133,557  2,346,160  65,313  460,929  7,005,959  Oklahoma  39  1,724,420  121,945  5,791  233,530  2,085,686
 Oregon  33  1,395,086  575,748  11,922  146,252  2,129,008  Pennsylvania  36  6,530,158  1,109,767  576,536  252,360  8,468,821
 Puerto  Rico  2  0  0  0  1,294,704  1,294,704  Rhode  Island  1  678,123  0  0  0  678,123
 South  Carolina  27  1,503,586  320,727  77,107  428,067  2,329,487  South  Dakota  31  280,323  0  95,463  53,611  429,397
 Tennessee  25  2,743,845  354,059  143,060  206,426  3,447,390  Texas  57  10,192,419  2,404,248  9,652  568,084  13,174,403
 Utah  13  1,117,319  23,317  4,932  30,801  1,176,369  Vermont  10  352,186  0  4,384  59,697  416,267
 Virgin  Islands  1  0  0  0  67,229  67,229  Virginia  21  3,629,926  1,016,550  97,479  18,157  4,762,112
 Washington  23  2,527,498  955,970  4,124  261,316  3,748,908  West  Virginia  10  848,375  149,635  8,445  7,654  1,014,109
 Wisconsin  88  2,207,612  591,493  217,039  462,125  3,478,269  Wyoming  10  247,234  7,508  0  42,301  297,043
 Total  1,432  142,045,510  30,799,886  2,767,595  9,372,064  184,985,055
 Source:  NECA  universal  service  filings.
 8  -  4
56
 Table  8.3
 (As  of  December  31,  1999)
 Holding  Companies  Loops  Percent  of  Loops
 Verizon  Communications  2/  62,276,224  33.67  %  SBC  Communications  58,918,970  31.85
 BellSouth  Telecommunications,  Inc.  24,780,115  13.40  Qwest  Communications  Corporation  16,883,785  9.13
 Sprint  Corporation  7,874,408  4.26  ALLTEL  Corporation  2,271,645  1.23
 CenturyTel,  Inc.  1,264,311  0.68  Global  Crossing  Ltd.  1,126,253  0.61
 Citizens  Communications  Company  1,011,101  0.55  Cincinnati  Bell,  Inc.  998,991  0.54
 TDS  Telecommunications  Corporation  588,355  0.32  Alaska  Communications  Systems  Holding,  Inc.  329,876  0.18
 C-  TEC  Corporation  297,405  0.16  Madison  River  Telephone  Company  148,614  0.08
 MJD  Communications  140,031  0.08  North  State  Telephone  Company  133,533  0.07
 Rock  Hill  Telephone  Company  123,806  0.07  Roseville  Telephone  Company  123,520  0.07
 The  Concord  Telephone  Company  118,218  0.06  TXU  Communications  117,268  0.06
 Consolidated  Communications,  Inc.  88,953  0.05  Horry  Telephone  Cooperative,  Inc.  86,423  0.05
 Conestoga  Enterprises,  Inc.  80,169  0.04  North  Pittsburgh  Telephone  Company  79,042  0.04
 Guam  Telephone  Authority  77,609  0.04  Hargray  Communications  Group,  Inc.  67,645  0.04
 Virgin  Islands  Telephone  Corporation  67,229  0.04  Denver  &  Ephrata  Telephone  Company  59,395  0.03
 Farmers  Telephone  Cooperative,  Inc.  57,255  0.03  Matanuska  Telephone  Association  56,575  0.03
 Pioneer  50,282  0.03  GTC,  Inc.  49,710  0.03
 Chorus  Communications  Group  43,543  0.02  Fort  Bend  Communication  Company  41,677  0.02
 Mankato  Citizens  Telephone  Company  40,573  0.02  Lynch  Telephone  Corporation  40,437  0.02
 Coastal  Utilities,  Inc.  39,332  0.02  East  Ascension  Telephone  Company,  Inc.  39,289  0.02
 CFW  Communication  Companies  38,342  0.02  Atlantic  Telephone  Membership  Corporation  38,083  0.02
 Twin  Lake  Telephone  Cooperative  36,574  0.02  SRT  Service  Corporation  35,985  0.02
 Ben  Lomand  Rural  Telephone  Cooperative,  Inc.  35,813  0.02  The  Chilliclothe  Telephone  Company  35,566  0.02
 Golden  West  Telecommunications  35,384  0.02  Telephone  Electronics  Corporation  35,102  0.02
 Lexington  Communications,  Inc.  34,739  0.02  Guadalupe  Valley  Telephone  Cooperative  34,713  0.02
 Skyline  Telephone  Membership  Corporation  34,663  0.02  Great  Plains  Communication,  Inc.  34,478  0.02
 Smithville  Telephone  Company,  Inc.  33,333  0.02  Wood  County  Telephone  Company  30,921  0.02
 Yadkin  Valley  Telephone  30,785  0.02  Eastex  Telephone  Cooperative,  Inc.  30,748  0.02
 Ollig  Utilities  28,233  0.02  Brandenburg  Telephone  Company  27,652  0.01
 South  Central  Rural  Telephone  Cooperative  27,596  0.01  Millington  Telephone  Company,  Inc.  26,336  0.01
 Kerrville  Telephone  Company  25,645  0.01  Grand  River  Mutual  Telephone  Corporation  25,520  0.01
 All  Other  Companies  3,677,277  1.99
 Total  184,985,055  100.00  %
 Source:  NECA  universal  service  filings.
 Telephone  Loops  of  Incumbent  Local  Exchange  Carriers  by  Holding
 1/  Includes  incumbent  local  exchange  carrier's  loops  for  holding
 companies  with  more  than  25,000  loops.
 2/  Includes  Bell  Atlantic  Corporation  and  GTE  Corporation.
 8  -  5
57
 Table  8.4
 Additional  Residential  Lines
 for  Households  with  Telephone  Service
 (End-  of-  Year  Data  in  Millions)
 Loops  1/  Households  Additional  Percentage  of
 with  Residential  Additional  Lines
 Residential  Non-  Total  Telephone  Lines  for  Households
 Residential  Loops  Service  2/  with  Telephones
 87.7  38.5  126.2  85.4  2.3  2.7  %
 90.0  40.6  130.6  87.4  2.6  3.0
 92.2  42.9  135.1  88.4  3.9  4.4
 95.9  42.5  138.4  89.4  6.5  7.3
 99.3  43.0  142.3  91.0  8.3  9.1
 101.8  45.2  147.0  93.0  8.8  9.4
 105.1  47.2  152.3  93.7  11.4  12.2
 108.1  50.4  158.5  94.2  13.9  14.7
 111.6  54.6  166.2  95.1  16.5  17.3
 115.6  58.7  174.3  96.5  19.1  19.8
 119.9  64.1  183.9  98.0  21.9  22.3
 127.8  66.1  193.9  99.1  28.6  28.9
 1/  Total  loops  are  from  the  Universal  Service  Fund  subscriber  line  counts  provided  by  the
 National  Exchange  Carrier  Association.  Guam,  the  Northern  Mariana  Islands,  Puerto  Rico,
 and  the  U.  S.  Virgin  Islands  totals  have  been  removed.  Total  loops  have  been  divided
 between  residential  and  non-  residential  using  the  ratio  of  residential  to  non-  residential
 access  lines  reported  in  iStatistics  of  Communications  Common  Carriers.  Those  totals
 also  exclude  Puerto  Rico,  but  cover  only  the  carriers  that  file  ARMIS  reports  (of  which
 there  are  none  for  Guam,  the  Northern  Mariana  Islands,  and  the  U.  S.  Virgin  Islands).
 Loop  counts  beginning  in  1996  have  been  increased  by  estimated  competitive  local
 exchange  carrier  lines  from  Association  for  Local  Telecommunications  Services  (ALTS)
 and  New  Paradigm  Resources  Group.
 2/  Current  Population  Survey  (U.  S.  Department  of  Commerce,  Bureau  of  the  Census).
 Source:  FCC  staff  estimates.
 8  -  6
 Year
 1988
 1989
 1990
 1991
 1992
 1993
 1994
 1999
 1995
 1996
 1997
 1998
58
 Table  8.5
 Number  of  Payphones  Owned  by  LECs  and  Independent  Operators
 (As  of  March  31,  1999)
 RBOC  Territories  1  All  Other  LEC  Territories  Total  Total  Grand
 State  LEC  Owned  Independent  LEC  Owned  Independent  LEC  Owned  Independent  Total
 Alabama  15,475  7,435  252  707  15,727  8,142  23,869
 Alaska  0  0  1,477  866  1,477  866  2,343
 Arizona  16,540  12,547  84  5,028  16,624  17,575  34,199
 Arkansas  15,024  1,833  435  438  15,459  2,271  17,730
 California  183,098  93,553  2,270  15,813  185,368  109,366  294,734
 Colorado  15,944  9,919  187  1,101  16,131  11,020  27,151
 Connecticut  23,217  30  0  309  23,217  339  23,556
 Delaware  4,804  908  0  0  4,804  908  5,712
 District  of  Columbia  8,034  2,332  0  0  8,034  2,332  10,366
 Florida  49,112  46,392  13,131  12,015  62,243  58,407  120,650
 Georgia  33,382  17,834  1,925  3,312  35,307  21,146  56,453
 Hawaii  7,984  686  0  0  7,984  686  8,670
 Idaho  3,945  2,370  362  354  4,307  2,724  7,031
 Illinois  77,064  30,946  200  122  77,264  31,068  108,332
 Indiana  31,566  7,678  2,238  1,902  33,804  9,580  43,384
 Iowa  6,657  4,154  663  312  7,320  4,466  11,786
 Kansas  15,844  1,619  1,679  525  17,523  2,144  19,667
 Kentucky  11,187  13,324  274  1,767  11,461  15,091  26,552
 Louisiana  15,521  9,351  337  2,326  15,858  11,677  27,535
 Maine  6,093  784  348  299  6,441  1,083  7,524
 Maryland  31,978  10,422  55  154  32,033  10,576  42,609
 Massachusetts  43,766  9,308  10  670  43,776  9,978  53,754
 Michigan  65,367  21,151  620  1,088  65,987  22,239  88,226
 Minnesota  12,193  3,870  2,029  2,806  14,222  6,676  20,898
 Mississippi  11,416  4,305  118  362  11,534  4,667  16,201
 Missouri  34,959  6,376  2,910  1,400  37,869  7,776  45,645
 Montana  2,620  1,674  430  867  3,050  2,541  5,591
 Nebraska  3,432  2,172  3,365  585  6,797  2,757  9,554
 Nevada  4,213  1,400  1,592  16,304  5,805  17,704  23,509
 New  Hampshire  6,253  1,394  108  183  6,361  1,577  7,938
 New  Jersey  71,334  23,214  2,260  2,547  73,594  25,761  99,355
 New  Mexico  6,852  3,985  65  777  6,917  4,762  11,679
 New  York  107,491  49,677  588  28,461  108,079  78,138  186,217
 North  Carolina  15,572  17,502  10,252  13,304  25,824  30,806  56,630
 North  Dakota  746  1,091  102  993  848  2,084  2,932
 Ohio  6,250  17,440  6,433  2,931  12,683  20,371  33,054
 Oklahoma  22,654  2,008  1,003  2,034  23,657  4,042  27,699
 Oregon  11,683  7,902  870  1,443  12,553  9,345  21,898
 Pennsylvania  56,627  21,433  8,188  4,065  64,815  25,498  90,313
 Rhode  Island  5,713  1,884  0  5  5,713  1,889  7,602
 South  Carolina  14,048  7,975  1,129  2,981  15,177  10,956  26,133
 South  Dakota  2,480  845  438  164  2,918  1,009  3,927
 Tennessee  17,111  12,036  2,765  3,426  19,876  15,462  35,338
 Texas  106,514  37,587  2,678  16,268  109,192  53,855  163,047
 Utah  7,118  3,575  125  528  7,243  4,103  11,346
 Vermont  3,194  320  99  101  3,293  421  3,714
 Virginia  35,280  19,841  3,221  3,534  38,501  23,375  61,876
 Washington  21,432  11,137  803  2,274  22,235  13,411  35,646
 West  Virginia  8,873  1,364  309  944  9,182  2,308  11,490
 Wisconsin  25,304  4,925  1,946  4,537  27,250  9,462  36,712
 Wyoming  2,499  995  118  137  2,617  1,132  3,749
 Totals  1,305,463  572,503  80,491  163,069  1,385,954  735,572  2,121,526
 See  footnote(  s)  at  end  of  table.
 8  -  7
59
 Table  8.5
 Number  of  Payphones  Owned  by  LECs  and  Independent  Operators  -  Continued
 (As  of  March  31,  2000)
 RBOC  Territories  All  Other  LEC  Territories  Total  Total  Grand
 State  LEC  Owned  Independent  LEC  Owned  Independent  LEC  Owned  Independent  Total
 Alabama  14,347  8,171  247  1,472  14,594  9,643  24,237
 Alaska  0  0  1,058  3,525  1,058  3,525  4,583
 Arizona  16,212  14,518  132  2,501  16,344  17,019  33,363
 Arkansas  13,251  2,229  271  1,203  13,522  3,432  16,954
 California  170,456  92,062  1,730  3,708  172,186  95,770  267,956
 Colorado  15,502  9,934  214  1,385  15,716  11,319  27,035
 Connecticut  21,570  4,195  0  176  21,570  4,371  25,941
 Delaware  4,612  1,082  0  0  4,612  1,082  5,694
 District  of  Columbia  7,750  2,755  0  0  7,750  2,755  10,505
 Florida  46,090  51,208  9,150  12,759  55,240  63,967  119,207
 Georgia  30,530  21,921  635  8,433  31,165  30,354  61,519
 Hawaii  7,784  1,159  0  0  7,784  1,159  8,943
 Idaho  3,756  2,470  280  348  4,036  2,818  6,854
 Illinois  72,615  30,837  1,109  1,807  73,724  32,644  106,368
 Indiana  30,612  8,343  2,228  1,246  32,840  9,589  42,429
 Iowa  6,512  3,663  732  276  7,244  3,939  11,183
 Kansas  13,574  1,543  989  843  14,563  2,386  16,949
 Kentucky  10,240  7,961  114  918  10,354  8,879  19,233
 Louisiana  14,140  12,071  118  1,506  14,258  13,577  27,835
 Maine  6,047  892  36  521  6,083  1,413  7,496
 Maryland  31,182  12,094  50  10  31,232  12,104  43,336
 Massachusetts  42,015  10,912  8  99  42,023  11,011  53,034
 Michigan  60,795  20,790  519  1,055  61,314  21,845  83,159
 Minnesota  8,317  4,884  1,969  1,661  10,286  6,545  16,831
 Mississippi  10,748  4,806  74  573  10,822  5,379  16,201
 Missouri  31,292  6,760  2,356  2,102  33,648  8,862  42,510
 Montana  2,617  1,517  579  1,171  3,196  2,688  5,884
 Nebraska  3,299  2,116  609  3,644  3,908  5,760  9,668
 Nevada  3,924  1,603  1,636  10,341  5,560  11,944  17,504
 New  Hampshire  6,229  1,582  74  247  6,303  1,829  8,132
 New  Jersey  68,858  24,363  2,225  335  71,083  24,698  95,781
 New  Mexico  6,356  4,296  57  665  6,413  4,961  11,374
 New  York  106,298  59,456  570  4,774  106,868  64,230  171,098
 North  Carolina  14,820  10,573  9,954  10,596  24,774  21,169  45,943
 North  Dakota  720  873  59  855  779  1,728  2,507
 Ohio  48,872  11,061  4,832  6,501  53,704  17,562  71,266
 Oklahoma  19,338  5,175  564  1,087  19,902  6,262  26,164
 Oregon  11,265  7,914  461  2,019  11,726  9,933  21,659
 Pennsylvania  55,064  22,635  6,010  6,894  61,074  29,529  90,603
 Rhode  Island  5,487  2,228  0  1,220  5,487  3,448  8,935
 South  Carolina  12,125  10,220  1,889  4,210  14,014  14,430  28,444
 South  Dakota  2,343  727  381  875  2,724  1,602  4,326
 Tennessee  18,348  14,775  2,715  3,091  21,063  17,866  38,929
 Texas  92,033  49,707  1,963  4,017  93,996  53,724  147,720
 Utah  7,182  3,395  125  764  7,307  4,159  11,466
 Vermont  3,010  424  0  327  3,010  751  3,761
 Virginia  33,443  19,018  2,858  2,302  36,301  21,320  57,621
 Washington  21,048  10,557  600  2,163  21,648  12,720  34,368
 West  Virginia  8,643  1,770  339  952  8,982  2,722  11,704
 Wisconsin  23,280  6,096  1,033  4,974  24,313  11,070  35,383
 Wyoming  2,347  1,063  256  202  2,603  1,265  3,868
 Totals  1,244,535  633,022  63,808  122,353  1,308,343  755,375  2,063,718
 See  footnote(  s)  at  end  of  table.
 8  -  8
60
 Table  8.5
 Number  of  Payphones  Owned  by  LECs  and  Independent  Operators  -  Continued
 (As  of  March  31,  2001)
 RBOC  Territories  All  Other  LEC  Territories  Total  Total  Grand
 State  LEC  Owned  Independent  LEC  Owned  Independent  LEC  Owned  Independent  Total
 Alabama  13,158  6,937  467  1,332  13,625  8,269  21,894
 Alaska  0  0  1,217  3,377  1,217  3,377  4,594
 Arizona  18,788  15,031  803  2,704  19,591  17,735  37,326
 Arkansas  10,216  1,563  1,675  1,552  11,891  3,115  15,006
 California  137,535  103,245  1,885  3,915  139,420  107,160  246,580
 Colorado  15,380  9,363  196  924  15,576  10,287  25,863
 Connecticut  19,835  4,360  0  2  19,835  4,362  24,197
 Delaware  4,473  960  0  0  4,473  960  5,433
 District  of  Columbia  7,362  1,273  0  0  7,362  1,273  8,635
 Florida  42,019  45,822  7,714  11,658  49,733  57,480  107,213
 Georgia  27,920  20,403  3,532  6,367  31,452  26,770  58,222
 Hawaii  7,068  1,128  0  0  7,068  1,128  8,196
 Idaho  3,623  2,304  260  248  3,883  2,552  6,435
 Illinois  62,280  29,263  1,515  2,087  63,795  31,350  95,145
 Indiana  26,901  7,766  2,187  1,260  29,088  9,026  38,114
 Iowa  6,307  2,837  705  306  7,012  3,143  10,155
 Kansas  11,707  2,272  950  952  12,657  3,224  15,881
 Kentucky  9,055  8,021  2,263  1,905  11,318  9,926  21,244
 Louisiana  13,370  11,343  156  1,421  13,526  12,764  26,290
 Maine  5,937  682  50  311  5,987  993  6,980
 Maryland  31,492  6,233  49  9  31,541  6,242  37,783
 Massachusetts  39,148  10,581  8  1,239  39,156  11,820  50,976
 Michigan  48,830  18,735  709  1,087  49,539  19,822  69,361
 Minnesota  11,279  4,528  2,438  2,376  13,717  6,904  20,621
 Mississippi  10,115  4,495  186  499  10,301  4,994  15,295
 Missouri  23,827  6,842  2,906  2,968  26,733  9,810  36,543
 Montana  2,615  1,426  609  1,023  3,224  2,449  5,673
 Nebraska  3,187  1,703  637  4,012  3,824  5,715  9,539
 Nevada  3,514  1,716  2,016  9,760  5,530  11,476  17,006
 New  Hampshire  5,963  1,565  103  220  6,066  1,785  7,851
 New  Jersey  66,213  16,991  1,937  1,392  68,150  18,383  86,533
 New  Mexico  5,951  3,455  302  670  6,253  4,125  10,378
 New  York  103,168  52,436  11,284  8,157  114,452  60,593  175,045
 North  Carolina  13,434  10,176  8,314  11,674  21,748  21,850  43,598
 North  Dakota  650  763  73  817  723  1,580  2,303
 Ohio  41,298  10,924  9,458  7,170  50,756  18,094  68,850
 Oklahoma  15,302  4,600  1,343  1,076  16,645  5,676  22,321
 Oregon  10,676  7,580  486  2,038  11,162  9,618  20,780
 Pennsylvania  52,279  20,595  6,765  4,570  59,044  25,165  84,209
 Rhode  Island  5,126  2,368  0  793  5,126  3,161  8,287
 South  Carolina  10,850  9,097  2,159  3,947  13,009  13,044  26,053
 South  Dakota  2,343  785  410  826  2,753  1,611  4,364
 Tennessee  14,458  11,846  2,618  2,671  17,076  14,517  31,593
 Texas  75,275  51,552  2,013  6,407  77,288  57,959  135,247
 Utah  7,398  3,246  156  578  7,554  3,824  11,378
 Vermont  2,865  398  44  286  2,909  684  3,593
 Virginia  30,899  13,757  2,523  2,199  33,422  15,956  49,378
 Washington  20,521  10,566  792  2,395  21,313  12,961  34,274
 West  Virginia  7,901  1,751  665  700  8,566  2,451  11,017
 Wisconsin  19,454  5,578  1,552  6,039  21,006  11,617  32,623
 Wyoming  2,412  917  269  167  2,681  1,084  3,765
 Totals  1,131,377  571,778  88,399  128,086  1,219,776  699,864  1,919,640
 1  Although  Bell  Atlantic  and  GTE  had  not  merged  as  of  March  31,  1999,  their  data  were  combined  so  that  comparisons  across  years  could  be  made.
 Source:  Raw  data  provided  by  National  Payphone  Clearinghouse.  Rollups  performed  by  the  Industry  Analysis  Division  of  the  FCC.
 8  -  9
61
 9-  1
 9  Local  Telephone  Competition
 For  most  of  the  past  century,  households  and  businesses  had  no  choice  in  selecting  their  local  telephone  company.  In  the  1980s,  competitive  access  providers  (CAPs)  began  to  market  to  business
 customers  access  services  provided  over  CAPs  wired  networks.  To  some  extent  they  also  carried  local  telephone  calls  among  their  customers.  In  the  1990s,  some  CAPs  and  other  companies,  including
 affiliates  of  cable  television  companies  and  local  service  divisions  of  long  distance  companies,  began  to  offer  local  telephone  calling  services  to  a  broader  range  of  customers.  Companies  with  operations  in
 larger  cities  added  operations  in  smaller  cities,  where  the  typical  customer  is  more  likely  to  be  a  small  or  medium-  sized  business  than  a  large  business,  and  some  new  companies  focused  on  smaller  cities  from
 the  beginning.  The  newer  competitors  are  often  called  competitive  local  exchange  carriers  (CLECs),  although  the  terms  CAPs  and  CLECs  are  sometimes  used  interchangeably.
 The  Telecommunications  Act  of  1996  (1996  Act)  contemplated  three  incrementally  powerful  vehicles  for  competitors  to  enter  local  telephone  service  markets.  First,  CLECs  may  resell  the  services
 of  incumbent  local  exchange  carriers  (ILECs).  Second,  CLECs  may  make  use  of  ILEC  facilities,  for  example,  by  leasing  ILEC  unbundled  network  element  (UNE)  loops  to  use  in  combination  with  the
 CLECs  own  switching  capabilities,  or  by  leasing  the  so-  called  UNE-  platform  that  combines  the  loop  with  ILEC  switching  services.  (Here,  we  use  the  term  UNE  loop  to  refer  to  these  and  other
 combinations  of  ILEC  unbundled  network  elements  that  include  the  UNE  loop.)  Third,  CLECs  may  build  the  complete  set  of  facilities  they  need  to  compete.  Individual  competitors  have  used  various
 combinations  of  these  methods  at  different  times.
 1.  CLEC  Share  of  Telephone  Service  Lines
 Table  9.1  shows  that,  as  of  December  31,  2000,  CLECs  provided  16.4  million  (or  8.5%)  of  the  approximately  194  million  nationwide  local  telephone  service  lines  to  end-  user  customers,  according
 to  information  reported  semiannually  in  the  Commissions  Local  Competition  and  Broadband  data  collection  program  (FCC  Form  477).  By  contrast,  CLECs  provided  8.3  million  (or  4.4%)  of
 nationwide  local  telephone  service  lines  at  the  end  of  1999.  This  represents  a  97%  growth  in  CLEC  market  size  during  the  year  2000.  Table  9.2  indicates  that  about  60%  of  the  CLEC  local  telephone
 lines  served  medium  and  large  business,  institutional,  and  government  customers  at  the  end  of  the  year  2000.  By  contrast,  about  20%  of  the  ILEC  local  telephone  lines  served  such  customers.
 About  one-  third  of  CLEC  end-  user  customer  lines  are  served  over  local  loop  facilities  that  the  CLECs  own,  according  to  information  CLECs  report  to  the  Commission,  which  is  summarized  in
 Table  9.3.  To  serve  the  remainder  of  their  local  telephone  service  lines,  CLECs  resell  the  services  of  ILECs  or  use  UNE  loops  that  they  lease  from  other  carriers.  As  shown  in  Table  9.4,  ILECs  reported
 providing  other  carriers  about  6.8  million  lines  on  a  resale  basis,  at  year-  end  2000,  compared  to  over  5  million  UNE  loops.  The  number  of  UNE  loops  provided  to  CLECs  has  increased  rapidly  since  the  end
 of  1997  (when  the  Commission  began  to  survey  large  ILECs  for  this  information)  and  increased  by  62%  during  the  last  half  of  the  year  2000.
 The  Commissions  semiannual  data  collection  provides  information  about  CLEC  local  telephone  service  lines  (and  thus  the  CLEC  share  of  total  end-  user  customer  lines  in  service)  in  individual  states.
62
 9-  2
 See  Table  9.5.  Relatively  large  numbers  of  CLEC  lines  are  associated  with  the  more  populous  states.  With  respect  to  the  calculated  CLEC  share  of  local  telephone  lines  in  service,  however,  relatively  large
 values  are  reported  for  some  less  populous  states,  such  as  Kansas,  Louisiana,  and  Minnesota,  as  well  as  for  some  more  populous  states,  such  as  New  York  and  Texas.
 2.  CLEC  Share  of  Local  Telephone  Service  Revenues
 Table  9.6  shows  that  carriers  competing  with  the  ILECs  nearly  doubled  their  local  telephone  service  revenues  from  1998  to  1999    from  $3.5  billion  to  $6.3  billion.  The  share  of  nationwide  local
 telephone  service  revenues  claimed  by  the  competitors  increased  from  3.5%  in  1998  to  5.8%  in  1999.
 3.  Telephone  Numbers  Transferred  Among  Carriers
 Table  9.7  presents  information  on  telephone  numbers  ported  (transferred)  from  one  telephone  switch  to  another  (usually  between  carriers).  Telephone  numbers  are  transferred  between  local
 switches  for  a  variety  of  reasons.  For  instance,  some  telephone  numbers  are  ported  from  one  carrier  to  another  as  part  of  a  telephone  number  conservation  measure  known  as  number  pooling,  which  is  where
 carriers  with  spare  telephone  numbers  port  large  blocks  of  numbers  to  a  carrier  in  need  of  numbers.  Such  quantities  appear  in  the  first  set  of  columns  in  Table  9.7.
 Telephone  numbers  are  also  ported  between  carriers  for  other  reasons,  including,  in  particular,  accommodating  customers  who  switch  local  telephone  service  providers  and  wish  to  keep  their  same
 telephone  numbers.  Quantities  of  telephone  numbers  transferred  between  local  telephone  companies  to  accommodate  customer  requests  and  for  other,  non-  pooling,  reasons  appear  in  the  second  set  of
 columns.  Over  11.8  million  such  telephone  numbers  were  transferred  as  of  June  1,  2001.  Most,  but  not  all  of  those  11.8  million  numbers,  were  ported  from  ILECs  to  CLECs,  but  some  of  them  were
 ported  from  CLECs  to  ILECs,  and  others  from  CLECs  to  CLECs.
 Finally,  carriers  sometimes  port  numbers  to  themselves,  to  enable  telephone  customers  to  be  hooked  up  to  a  switch  that  had  no  other  available  telephone  numbers.  Such  quantities  appear  in  the
 third  set  of  columns.  In  all,  as  of  June  1,  2001,  over  15.4  million  telephone  numbers  had  been  transferred.
 This  information  is  developed  from  the  telephone  number  porting  database,  managed  by  the  Local  Number  Portability  Administrator  (currently  NeuStar,  Inc.).  The  database  contains  all  telephone
 numbers  that  are  ported  at  that  point  in  time.  (In  order  to  protect  consumer  privacy,  the  commission  receives  the  information  in  such  a  way  that  prevents  it  from  determining  if  a  particular  telephone  number
 has  been  ported  or  not.)  If  a  telephone  number  is  ported  a  second  time,  the  database  contains  only  the  information  from  the  most  recent  port.  Monthly  snapshots  of  the  database  are  taken,  which  allow  the
 Commission  to  determine  the  number  of  telephone  numbers  that  have  been  ported,  the  reason  those  numbers  were  ported,  and  the  date  that  the  telephone-  number  record  in  the  database  was  created.  For
 most  telephone-  number  records,  the  date  reflects  the  date  that  the  telephone  number  was  most  recently  ported.  Some  records,  however,  have  been  affected  by  area  code  changes,  so  the  date  reflects  not  the
 porting  date,  but  the  date  the  telephone-  number  record  was  updated  to  account  for  the  area  code  change.  Although  not  perfect,  sequential  snapshots  of  the  database  should  help  quantify  both  the
 number  of  customer  lines  served  by  competitive  local  telephone  carriers  over  time,  and  telephone  number  churn.  Table  9.7  shows  the  same  information  at  three  different  points  in  time    June  1,  2001,
63
 9-  3
 January  1,  2001,  and  January  1,  2000.
64
 9-  4
65
 Table  9.1
 ILEC  Lines  CLEC  Lines  Total  CLEC  Share
 December  1999  181,307,695  8,318,244  189,625,939  4.4%
 June  2000  178,864,907  12,746,924  191,611,831  6.7
 December  2000  177,420,655  16,397,393  193,818,048  8.5
 Source:  Industry  Analysis  Division,  Local  Telephone  Competition:  Status  as  of
 December  31,  2000.
 Table  9.2
 End-  User  Lines  by  Customer  Type
 ILECs  CLECs
 Residential  &
 Small  Business  Other  1/
 %  Residential  &
 Small  Business
 Residential  &
 Small  Business  Other  1/
 %  Residential  &
 Small  Business
 December  1999  143,388,368  37,919,327  79%  3,373,662  4,944,582  41%
 June  2000  140,486,770  38,378,137  79  4,597,807  8,149,117  36
 December  2000  139,765,099  37,655,556  79  6,688,062  9,709,331  41
 1/  Medium  and  large  business,  institutional,  and  government  customers.
 Source:  Industry  Analysis  Division,  Local  Telephone  Competition:  Status  as  of  December  31,  2000.
 Total  End-  User  Lines  Reported
 9  -  5
66
 CLECs
 Reporting
 Total  End-User
 Lines
 81  8,318  65.8  %  34.2  %
 76  12,747  8,443  66.2  4,304  33.8
 87  16,397  10,649  64.9  5,748  35.1
 1/  Lines  acquired  from  other  carriers  as  UNE  loops  or  under  resale  arrangements.
 Source:  Industry  Analysis  Division,  Local  Telephone  Competition:  Status  as  of  December  31,  2000.
 Lines  Provided  to  Other  Carriers
 Total
 December  1997  9  159,008  157,132  133  1,876  1.2  %
 June  1998  8  161,810  159,118  244  2,692  1.7
 December  1998  7  164,614  161,191  361  3,423  2.1
 June  1999  7  167,177  162,909  685  4,268  2.6
 December  1999  168  187,431  181,308  1,474  6,123  3.3
 June  2000  160  187,784  178,865  3,257  8,919  4.7
 December  2000  170  189,512  177,421  6,822  5,269  12,091  6.4
 Source:  Industry  Analysis  Division,  Local  Telephone  Competition:  Status  as  of  December  31,  2000.
 UNE  Loops
 Leased
 (Lines  in  Thousands)
 Date  1/  ILECs  Reporting  Total  Lines  End-  User  Lines  Lines  Resold  Percent  of
 Total  Lines
 Reporting  Incumbent  Local  Exchange  Carriers
 3,583
 Table  9.3
 Reporting  Competitive  Local  Exchange  Carriers
 December  1999
 December  2000
 (End-  User  Lines  in  Thousands)
 Date
 1,743
 2,448
 3,062
 4,649
 5,662
 1/  Data  for  December  1997  through  June  1999  are  from  Common  Carrier  Bureau  voluntary  surveys.  Data  for
 December  1999  and  June  2000  are  from  FCC  Form  477  filings.
 5,471  2,847
 Table  9.4
 Acquired
 Lines  1/  Percent
 CLEC  Owned
 Lines  Percent
 June  2000
 9  -  6
67
 State  ILECs  CLECs  Total
 Alabama  2,351,704  191,299  2,543,003  8  %
 Alaska  481,684  *  *  *
 Arizona  3,073,779  146,480  3,220,259  5
 Arkansas  1,733,035  *  *  *
 California  23,467,042  1,492,585  24,959,627  6
 Colorado  2,833,948  286,955  3,120,903  9
 Connecticut  2,422,012  154,349  2,576,361  6
 Delaware  555,913  *  *  *
 District  of  Columbia  922,531  94,850  1,017,381  9
 Florida  11,079,693  1,007,756  12,087,449  8
 Georgia  4,820,788  551,316  5,372,104  10
 Hawaii  744,205  0  744,205  0
 Idaho  733,580  *  *  *
 Illinois  7,887,152  831,917  8,719,069  10
 Indiana  3,576,825  209,660  3,786,485  6
 Iowa  1,413,303  164,069  1,577,372  10
 Kansas  1,520,616  220,328  1,740,944  13
 Kentucky  2,122,021  56,392  2,178,413  3
 Louisiana  2,415,935  380,947  2,796,882  14
 Maine  804,652  *  *  *
 Maryland  3,802,622  165,502  3,968,124  4
 Massachusetts  4,252,502  509,731  4,762,233  11
 Michigan  6,283,406  382,073  6,665,479  6
 Minnesota  2,961,241  503,775  3,465,016  15
 Mississippi  1,304,145  68,891  1,373,036  5
 Missouri  3,485,411  203,537  3,688,948  6
 Montana  529,878  *  *  *
 Nebraska  949,217  *  *  *
 Nevada  1,394,708  *  *  *
 New  Hampshire  805,143  52,137  857,280  6
 New  Jersey  6,747,131  323,680  7,070,811  5
 New  Mexico  957,195  *  *  *
 New  York  10,962,969  2,769,814  13,732,783  20
 North  Carolina  5,071,853  286,436  5,358,289  5
 North  Dakota  317,270  *  *  *
 Ohio  6,935,139  264,461  7,199,600  4
 Oklahoma  1,636,845  102,456  1,739,301  6
 Oregon  2,109,510  70,221  2,179,731  3
 Pennsylvania  8,017,391  870,618  8,888,009  10
 Puerto  Rico  1,299,291  *  *  *
 Rhode  Island  627,784  *  *  *
 South  Carolina  2,260,645  108,233  2,368,878  5
 South  Dakota  309,349  *  *  *
 Tennessee  3,291,602  296,281  3,587,883  8
 Texas  12,063,098  1,687,586  13,750,684  12
 Utah  1,174,625  114,649  1,289,274  9
 Vermont  400,929  *  *  *
 Virgin  Islands  NA  0  0  0
 Virginia  4,317,626  414,432  4,732,058  9
 Washington  3,784,183  309,482  4,093,665  8
 West  Virginia  927,432  *  *  *
 Wisconsin  3,223,663  321,720  3,545,383  9
 Wyoming  256,434  *  *  *
 Nationwide  177,420,655  16,397,393  193,818,048  8  %
 NA  -  Not  Applicable
 Note:  Carriers  with  under  10,000  lines  in  a  state  were  not  required  to  report.
 *  Data  withheld  to  maintain  firm  confidentiality.
 Source:  Industry  Analysis  Division,  Local  Telephone  Competition:  Status  as  of  December  31,  2000.
 Table  9.5
 CLEC  Share
 End-  User  Lines  Served  by  Reporting  Local  Exchange  Carriers
 (As  of  December  31,  2000)
 9  -  7
68
 Table  9.6
 Nationwide  Local  Service  Revenues  and  New  Competitors'  Share  1/
 (Dollar  Amounts  Shown  in  Millions)
 TRS  Data  TRS  &  USF  Data  Form  499-  A
 Data
 1993  1994  1995  1996  1997  1998  1999
 Number  of  Local  Competitors
 RBOCs  &  Other  Incumbent  LECs  1,281  1,347  1,347  1,376  1,410  1,348  1,335
 CAPs  &  CLECs  20  30  57  94  129  212  349
 Local  Resellers,  Shared  Tenant,
 Private  Carriers,  &  Other  Local  NA  NA  NA  25  18  64  147
 All  Other  Carriers  Reporting
 Local  Exchange  Service  Revenues  NA  NA  NA  74  109  133  143
 Total  1,301  1,377  1,404  1,569  1,666  1,757  1,974
 Local  Service  Revenues  2/
 Incumbent  LECs
 Bell  Operating  Companies  3/  $58,838  $61,415  $65,485  $70,290  $68,028  $69,801  $76,586
 Other  Incumbent  LECs  3/  20,894  22,507  24,269  24,899  24,960  26,989  26,084
 Total  3/  79,732  83,922  89,754  95,189  92,988  96,790  102,670
 Local  Service  Competitors
 CAPs  &  CLECs  174  269  595  949  1,556  2,393  4,505
 Local  Resellers,  Shared  Tenant,
 Private  Carriers,  &  Other  Local  NA  NA  NA  NA  224  329  522
 All  Other  Carriers  (Local  Exchange
 Service  Revenues  Only)  4/  46  32  56  59  381  809  1,319
 Total  220  301  651  1,008  2,161  3,530  6,347
 Total  $79,952  $84,224  $90,405  $96,197  $95,149  $100,320  $109,016
 Share  of  Local  Service  Revenues
 Incumbent  LECs
 Bell  Operating  Companies  73.6%  72.9%  72.4%  73.1%  71.5%  69.6%  70.3%
 Other  Incumbent  LECs  26.1%  26.7%  26.8%  25.9%  26.2%  26.9%  23.9%
 Total  99.7%  99.6%  99.3%  99.0%  97.7%  96.5%  94.2%
 Local  Service  Competitors
 CAPs  &  CLECs  0.2%  0.3%  0.7%  1.0%  1.6%  2.4%  4.1%
 Local  Resellers,  Shared  Tenant,
 Private  Carriers,  &  Other  Local  NA  NA  NA  NA  0.2%  0.3%  0.5%
 All  Other  Carriers  0.1%  0.0%  0.1%  0.1%  0.4%  0.8%  1.2%
 Total  0.3%  0.4%  0.7%  1.0%  2.3%  3.5%  5.8%
 Total  Telecommunications  Revenues
 (Including  Payphone,  Mobile,  &  Toll  Service)
 Incumbent  LECs  3/  $95,228  $98,431  $102,820  $107,905  $105,154  $108,234  $112,216
 Local  Competitors  191  274  637  1,012  2,481  4,034  6,508
 Ratio  of  ILEC  Total  Telecommunications  498  :  1  351  :  1  165  :  1  107  :  1  42  :  1  27  :  1  17  :  1
 Revenues  to  Local  Competitor
 Total  Telecommunications  Revenues
 NA  -  Not  Available.
 1/  Some  previously  published  data  have  been  revised.  Some  breakouts  are  not  available  prior  to  1997  due  to  differences  in  how  data  were  reported.
 2/  For  1993  through  1996,  for  most  categories  of  carriers,  local  service  revenues  include  revenues  from  the  following  TRS  reporting  categories:  local  exchange,  local  private  line,  other  local  services,  interstate  access  services,  and  intrastate
 access  services.  The  amounts  shown  do  not  include  pay  telephone,  mobile,  or  toll  service  revenues.  See  also  footnote  4/.
 1998  revenues  for  carriers  that  filed  TRS  worksheets  but  not  universal  service  worksheets  was  estimated  using  1998  TRS
 worksheets.  These  worksheets  contain  carrier  revenue  data  for  calendar  year  1997.
 3/  Incumbent  LEC  local  service  revenues  for  1996  and  prior  years  include  significant  amounts  of  yellow  pages,  billing  and  collection,  and  other  revenues  that  were  reported  as  other  local  service  revenues.  If  these  revenues  were  included  in  1997,
 incumbent  LECs  would  show  significant  revenue  growth  from  1996  to  1997.  Inside  wire  maintenance  was  included  in  local
 service  revenues  in  1997  but  not  thereafter.
 4/  Toll  carriers  typically  provide  resold  special  access  and  private  line  services  as  part  of  toll  service  operations.  Accordingly,  the  table  shows  local  exchange  revenues  rather  than  all  local  revenues  for  these  carriers.
 Sources:  Data  filed  on  FCC  Forms  431,  457,  and  499-  A  worksheets.  Industry  Analysis  Division,  Telecommunications  Industry  Revenues.
 9  -  8
69
 Table  9.7
 Telephone  Numbers  Transferred  or  Ported  1
 (Telephone  Numbers  that  Remained  Ported  as  of  January  1,  2000)
 Transferred  Between  Carriers  Transferred  Within
 Same  Carrier
 Customer  Requests
 Originally  Pooling  and  Other  Reasons  Total
 Ported  During  Numbers  Numbers  Numbers  Numbers
 Year  Month  Ported  Cumulative  Ported  Cumulative  Ported  Cumulative  Transferred
 1997  December  0  0  80  80  0  0  80
 1998  January  0  0  202  282  0  0  282
 February  0  0  11  293  0  0  293
 March  13  13  231  524  0  0  537
 April  16  29  547  1,071  0  0  1,100
 May  20  49  1,975  3,046  0  0  3,095
 June  27  76  5,257  8,303  0  0  8,379
 July  616  692  14,494  22,797  761  761  24,250
 August  1,723  2,415  29,918  52,715  2,192  2,953  58,083
 September  2,209  4,624  36,011  88,726  1,000  3,953  97,303
 October  3,462  8,086  100,992  189,718  1,000  4,953  202,757
 November  12,467  20,553  108,952  298,670  0  4,953  324,176
 December  21,736  42,289  147,071  445,741  2,947  7,900  495,930
 1999  January  7,038  49,327  158,256  603,997  8,041  15,941  669,265
 February  6,614  55,941  180,952  784,949  4,000  19,941  860,831
 March  8,236  64,177  214,692  999,641  44,599  64,540  1,128,358
 April  10,078  74,255  225,649  1,225,290  58,743  123,283  1,422,828
 May  16,428  90,683  246,746  1,472,036  6,862  130,145  1,692,864
 June  21,850  112,533  298,309  1,770,345  41,914  172,059  2,054,937
 July  19,369  131,902  296,385  2,066,730  15,002  187,061  2,385,693
 August  38,539  170,441  318,941  2,385,671  13,811  200,872  2,756,984
 September  48,739  219,180  341,902  2,727,573  21,997  222,869  3,169,622
 October  47,161  266,341  397,897  3,125,470  18,999  241,868  3,633,679
 November  67,299  333,640  352,942  3,478,412  18,999  260,867  4,072,919
 December  40,936  374,576  430,141  3,908,553  7,000  267,867  4,550,996
 See  footnote(  s)  at  end  of  table.
 9  -  9
70
 Table  9.7
 Telephone  Numbers  Transferred  or  Ported  1  -  Continued
 (Telephone  Numbers  that  Remained  Ported  as  of  January  1,  2001)
 Transferred  Between  Carriers  Transferred  Within
 Same  Carrier
 Customer  Requests
 Originally  Pooling  and  Other  Reasons  Total
 Ported  During  Numbers  Numbers  Numbers  Numbers
 Year  Month  Ported  Cumulative  Ported  Cumulative  Ported  Cumulative  Transferred
 1997  December  0  0  80  80  0  0  80
 1998  January  0  0  202  282  0  0  282
 February  0  0  4  286  0  0  286
 March  11  11  227  513  0  0  524
 April  16  27  477  990  0  0  1,017
 May  10  37  1,833  2,823  0  0  2,860
 June  15  52  4,388  7,211  0  0  7,263
 July  387  439  12,003  19,214  761  761  20,414
 August  1,024  1,463  16,761  35,975  2,192  2,953  40,391
 September  977  2,440  25,795  61,770  0  2,953  67,163
 October  2,032  4,472  76,847  138,617  1,000  3,953  147,042
 November  1,854  6,326  88,481  227,098  0  3,953  237,377
 December  12,031  18,357  98,265  325,363  2,947  6,900  350,620
 1999  January  1,669  20,026  115,830  441,193  8,009  14,909  476,128
 February  1,520  21,546  136,472  577,665  3,998  18,907  618,118
 March  3,015  24,561  170,355  748,020  43,638  62,545  835,126
 April  3,210  27,771  186,457  934,477  52,883  115,428  1,077,676
 May  5,794  33,565  192,003  1,126,480  6,814  122,242  1,282,287
 June  11,709  45,274  230,662  1,357,142  41,660  163,902  1,566,318
 July  5,677  50,951  232,604  1,589,746  14,948  178,850  1,819,547
 August  22,305  73,256  244,051  1,833,797  13,669  192,519  2,099,572
 September  20,494  93,750  249,961  2,083,758  21,726  214,245  2,391,753
 October  26,437  120,187  303,478  2,387,236  18,958  233,203  2,740,626
 November  49,914  170,101  287,792  2,675,028  17,657  250,860  3,095,989
 December  24,457  194,558  339,180  3,014,208  6,854  257,714  3,466,480
 2000  January  31,495  226,053  312,501  3,326,709  10,459  268,173  3,820,935
 February  44,564  270,617  353,516  3,680,225  49,940  318,113  4,268,955
 March  41,965  312,582  381,718  4,061,943  24,808  342,921  4,717,446
 April  75,207  387,789  345,852  4,407,795  107,703  450,624  5,246,208
 May  72,097  459,886  382,138  4,789,933  116,975  567,599  5,817,418
 June  96,610  556,496  409,202  5,199,135  64,880  632,479  6,388,110
 July  84,329  640,825  369,708  5,568,843  70,980  703,459  6,913,127
 August  70,614  711,439  433,900  6,002,743  102,263  805,722  7,519,904
 September  41,154  752,593  485,944  6,488,687  64,803  870,525  8,111,805
 October  82,796  835,389  520,694  7,009,381  111,046  981,571  8,826,341
 November  60,131  895,520  495,679  7,505,060  139,000  1,120,571  9,521,151
 December  51,303  946,823  580,047  8,085,107  72,954  1,193,525  10,225,455
 See  footnote(  s)  at  end  of  table.
 9  -  10
71
 Table  9.7
 Telephone  Numbers  Transferred  or  Ported  1  -  Contintued
 (Telephone  Numbers  that  Remained  Ported  as  of  June  1,  2001)
 Transferred  Between  Carriers  Transferred  Within
 Same  Carrier
 Customer  Requests
 Originally  Pooling  and  Other  Reasons  Total
 Ported  During  Numbers  Numbers  Numbers  Numbers
 Year  Month  Ported  Cumulative  Ported  Cumulative  Ported  Cumulative  Transferred
 1997  December  0  0  80  80  0  0  80
 1998  January  0  0  202  282  0  0  282
 February  0  0  8  290  0  0  290
 March  12  12  229  519  0  0  531
 April  16  28  474  993  0  0  1,021
 May  16  44  1,696  2,689  0  0  2,733
 June  19  63  4,272  6,961  0  0  7,024
 July  356  419  12,657  19,618  761  761  20,798
 August  1,114  1,533  24,490  44,108  2,192  2,953  48,594
 September  1,524  3,057  31,125  75,233  0  2,953  81,243
 October  2,552  5,609  85,841  161,074  1,000  3,953  170,636
 November  11,297  16,906  97,487  258,561  0  3,953  279,420
 December  20,795  37,701  124,608  383,169  2,947  6,900  427,770
 1999  January  5,852  43,553  133,788  516,957  7,869  14,769  575,279
 February  4,482  48,035  155,213  672,170  3,998  18,767  738,972
 March  6,871  54,906  179,709  851,879  43,377  62,144  968,929
 April  7,379  62,285  193,591  1,045,470  48,471  110,615  1,218,370
 May  15,069  77,354  217,100  1,262,570  6,763  117,378  1,457,302
 June  18,454  95,808  258,799  1,521,369  41,641  159,019  1,776,196
 July  11,383  107,191  262,947  1,784,316  13,944  172,963  2,064,470
 August  33,151  140,342  281,763  2,066,079  13,647  186,610  2,393,031
 September  42,682  183,024  292,543  2,358,622  21,687  208,297  2,749,943
 October  35,926  218,950  357,426  2,716,048  18,821  227,118  3,162,116
 November  57,236  276,186  312,822  3,028,870  17,626  244,744  3,549,800
 December  34,452  310,638  383,310  3,412,180  6,840  251,584  3,974,402
 2000  January  36,169  346,807  330,112  3,742,292  10,357  261,941  4,351,040
 February  51,431  398,238  380,411  4,122,703  43,929  305,870  4,826,811
 March  52,097  450,335  415,145  4,537,848  24,729  330,599  5,318,782
 April  80,194  530,529  378,204  4,916,052  103,398  433,997  5,880,578
 May  75,310  605,839  412,396  5,328,448  116,968  550,965  6,485,252
 June  107,459  713,298  444,683  5,773,131  62,800  613,765  7,100,194
 July  95,098  808,396  400,654  6,173,785  67,980  681,745  7,663,926
 August  76,472  884,868  473,180  6,646,965  99,246  780,991  8,312,824
 September  58,733  943,601  504,009  7,150,974  54,599  835,590  8,930,165
 October  93,278  1,036,879  550,264  7,701,238  99,044  934,634  9,672,751
 November  63,404  1,100,283  522,147  8,223,385  130,000  1,064,634  10,388,302
 December  64,207  1,164,490  598,026  8,821,411  67,960  1,132,594  11,118,495
 2001  January  104,381  1,268,871  559,836  9,381,247  187,726  1,320,320  11,970,438
 February  84,196  1,353,067  536,369  9,917,616  61,948  1,382,268  12,652,951
 March  122,681  1,475,748  649,482  10,567,098  100,898  1,483,166  13,526,012
 April  197,132  1,672,880  581,602  11,148,700  208,438  1,691,604  14,513,184
 May  118,245  1,791,125  702,679  11,851,379  130,540  1,822,144  15,464,648
 1  Some  telephone  numbers  are  ported  to  another  carrier,  and  then  sent  back  to  the  original  carrier.  During  the
 time  the  telephone  number  is  ported,  the  number  will  be  included  in  this  table.  When  the  number  is  sent
 back  to  the  original  carrier,  it  will  no  longer  be  included  in  this  table.
 Source:  Raw  data  from  Local  Number  Portability  Administrator  (NeuStar,  Inc.).  Rollups  performed
 by  the  Industry  Analysis  Division,  FCC.
 9  -  11
72
 10-  1
 10  Long  Distance  Telephone  Industry
 Until  the  1970s,  AT&  T  had  a  virtual  monopoly  on  long  distance  service  in  the  United  States.  In  the  1970s,  competitors  such  as  MCI  and  Sprint  began  also  to  offer  long  distance  service.  With  the
 gradual  emergence  of  competition,  basic  rates  dropped,  calling  surged,  and  AT&  Ts  dominance  declined.
 More  than  700  companies  now  offer  long  distance  service.  These  carriers  remain  subject  to  the  Commissions  jurisdiction.  The  Commission,  however,  has  chosen  to  rely  on  competition  rather  than
 regulation  as  much  as  possible.  Thus,  the  Commission  forbears  from  regulating  most  aspects  of  long  distance  service.  Nevertheless,  the  Commission  continues  to  monitor  the  long  distance  market,  in  part
 because  the  market  for  toll  services  remains  more  highly  concentrated  than  many  industries.
 1.  Toll  Revenues
 In  2000,  long  distance  carriers  generated  over  $100  billion  in  toll  revenues.  Local  telephone  companies  also  provide  toll  service,  primarily  intrastate  calls,  and  usually  within  their  local  service
 territories.  In  2000,  local  telephone  companies  provided  about  $8  billion  of  toll  service.  When  combined,  the  total  long  distance  market  was  more  than  $108  billion.  These  revenues  are  shown  in
 Table  10.1.
 Toll  calls  can  be  divided  into  three  jurisdictional  categories  intrastate  calls,  domestic  interstate  calls,  and  international  calls.  The  revenues  for  each  of  the  three  types  are  shown  in  Table  10.2.  Of
 considerable  interest  is  the  enormous  growth  (more  than  500%)  in  international  revenues  from  1984  to  1999.
 Toll  revenues  can  also  be  divided  between  residential  and  nonresidential  services,  as  in  Table  10.3.  In  1999,  residential  customers  generated  about  42%  of  toll  revenues.
 2.  Number  of  Companies
 The  number  and  types  of  carriers  reporting  long  distance  revenues  are  shown  in  Table  10.4.  The  Telecommunications  Reporting  Worksheet  (Form  499-  A)  requires  each  filer  to  select  one  of  18
 categories  as  best  describing  its  primary  line  of  business.  Six  of  these  categories  consist  of  carriers  that  are  primarily  engaged  in  providing  long  distance  service  and  are  collectively  described  as  being  toll
 carriers:  interexchange  carriers  (IXCs),  operator  service  providers  (OSPs),  other  toll  service  providers,  prepaid  calling  card  providers,  satellite  service  providers,  and  toll  resellers.
 In  1999,  655  filers  identified  their  primary  activity  as  a  toll  carrier  and  1,  777  other  carriers  reported  long  distance  revenues  even  though  the  provision  of  long  distance  service  is  not  their  primary
 line  of  business.
73
 10-  2
 Carrier  identification  codes  (CICs)  provide  information  on  the  number  of  firms  seeking  to  acquire  certain  types  of  interconnecting  arrangements  with  local  telephone  companies.  Any  firm  that
 seeks  to  use  trunk-  side  connections  with  local  telephone  companies  is  provided  a  carrier  identification  code  so  that  traffic  can  be  efficiently  routed.
 CICs  are  currently  assigned  by  the  North  American  Numbering  Plan  Administration  (NANPA),  which  is  part  of  Neustar,  Inc.  Further  information  on  such  codes  can  be  found  on  the  Internet  at
 <www.  nanpa.  com>.
 Beginning  in  1986,  a  number  of  corporations,  government  agencies  and  other  organizations  began  to  acquire  carrier  identification  codes  for  their  own  use,  rather  than  for  the  purpose  of  providing
 telecommunications  services  to  others.  After  that  time,  the  use  of  such  codes  to  estimate  the  number  of  long  distance  carriers  became  less  reliable.  We  believe,  however,  that  the  number  of  firms  obtaining
 these  codes  provides  the  best  information  available  on  the  entry  of  new  firms  into  the  long  distance  market  prior  to  1986.  The  number  of  codes  assigned  is  shown  in  Table  10.5.
 During  the  late  1980s  and  1990s,  alternative  sources  for  developing  counts  of  long  distance  carriers  became  available.  Starting  in  1987,  information  on  the  number  of  telephone  lines  presubscribed
 to  each  long  distance  carrier  was  collected  by  NECA  because  FCC  rules  required  NECA  to  recover  certain  expenses  from  the  larger  long  distance  carriers.  Pursuant  to  the  1996  Act,  the  FCC  changed  its
 rules  on  universal  service,  and  as  a  result,  NECA  stopped  collecting  this  information.  Information  for  December  1996  is  the  last  presubscribed  line  data  collected  by  NECA.  Table  10.6  shows  several
 alternative  measures  of  long  distance  carrier  development.
 3.  Long  Distance  Market  Shares
 A  generation  ago,  when  the  Bell  System  was  still  intact,  AT&  Ts  local  telephone  companies  provided  most  local  service.  At  that  time,  there  were  no  good  means  of  segregating  true  economic
 costs  of  local  and  long  distance  services  of  AT&  Ts  integrated  network.  At  the  beginning  of  1984,  however,  AT&  Ts  local  operating  companies  were  divested  in  the  settlement  of  an  antitrust  case.
 After  the  AT&  T  divestiture,  AT&  Ts  former  operating  companies  were  restricted  to  providing  service  within  their  own  local  access  and  transport  areas  (LATAs).  Thus,  they  were  precluded  from
 offering  toll  service  that  crossed  the  boundaries  of  their  service  territories.  As  a  result,  two  separate  and  distinct  toll  markets  emerged.
 At  first,  AT&  T  competed  with  small  but  rapidly  growing  competitors  for  calls  that  crossed  LATA  boundaries.  This  market  included  almost  all  interstate  and  international  calls.  It  also  included
 most  intrastate  toll  calls  as  well.  A  second  and  much  smaller  market  consisted  of  short  distance  toll  calls  that  did  not  cross  LATA  boundaries.  This  second,  intraLATA  market  was  dominated,  at  least  initially,
 by  the  local  exchange  carriers  operating  within  their  own  service  territories.
 Over  time,  the  distinctions  between  the  two  markets  have  blurred  as  customers  can  now  select  among  competing  carriers  for  their  intraLATA  calls.  In  addition,  the  restrictions  preventing  AT&  Ts
 former  affiliates  from  providing  interLATA  service  were  modified  by  the  Telecommunications  Act  of  1996.
74
 10-  3
 Long-  term  trends  in  toll  revenues  are  shown  in  Table  10.7.  Over  time,  AT&  T  and  the  operating  companies  that  previously  monopolized  telephone  service  have  lost  market  share  to  new
 entrants.  By  2000,  carriers  not  even  in  existence  a  generation  ago  accounted  for  more  than  half  of  all  long  distance  telephone  toll  revenues.
 Table  10.8  shows  market  share  information  based  on  the  revenues  of  those  firms  identified  as  primarily  being  long  distance  carriers.  AT&  Ts  1984  toll  revenues  were  about  90%  of  those  reported
 by  all  long  distance  carriers.  By  2000,  AT&  Ts  revenues  had  declined  to  less  than  40%  of  those  reported  by  all  long  distance  carriers  and  since  1995,  AT&  T  is  no  longer  regulated  as  a  dominant
 carrier.
 Table  10.9  shows  market  share  information  based  on  all  toll  revenues,  including  the  long  distance  services  provided  by  local  exchange  carriers.  This  broader  classification  increasingly  becomes
 the  relevant  classification  of  the  market  as  these  carriers  increase  their  participation  in  a  nationwide  market.  By  any  measure,  the  long-  term  trends  have  shown  increasing  competition  and  decreasing
 concentration.
 4.  Residential  Toll  Revenues
 Bill  harvesting  data  collected  by  TNS  Telecoms  (TNS)  provides  information  on  market  shares  in  the  long  distance  residential  market,  as  opposed  to  the  overall  market  for  toll  service.  The  bill
 harvesting  data  also  provide  information  on  the  market  shares  of  long  distance  carriers  by  state.  Section  15  gives  further  information  on  TNS  and  the  bill  harvesting  data.  Table  10.10,  which  is  based  on  this
 information,  presents  nationwide  market  shares  of  access  lines,  residential  toll  revenue  and  direct  dial  minutes  from  1995  to  2000.  In  addition,  Table  10.11  presents  market  shares  of  residential  direct-  dial
 minutes  by  state  for  2000.  These  tables  present  long  distance  market  shares  for  AT&  T,  MCI  WorldCom,  and  Sprint.
 5.  Section  271  Applications
 Section  271  of  the  Communications  Act  requires  the  Regional  Bell  Operating  Companies  (RBOCs)  to  apply  to  the  Commission,  on  a  state-  by-  state  basis,  for  authorization  to  provide  in-  region
 interLATA  services.  To  obtain  such  authorization  pursuant  to  section  271,  the  BOC  must  demonstrate  that  it  satisfies  the  14-  point  competitive  checklist,  that  it  will  comply  with  the  separate  affiliate  and
 nondiscrimination  requirements  of  section  272,  and  that  requested  authorization  is  consistent  with  the  public  interest,  convenience,  and  necessity.  After  a  BOC  files  a  section  271  application  with  the
 Commission,  the  Commission  has  90  days  to  determine  whether  a  BOC  has  taken  the  statutorily  required  steps  to  open  its  local  telecommunications  markets  to  competition.
 A  BOC  applicant  must  demonstrate  either  that:  A)  one  or  more  unaffiliated  competing  providers  of  local  telephone  service  to  residential  and  business  subscribers  is  connected  to  the  BOCs
 network,  and  that  such  local  telephone  service  is  being  offered  by  such  competing  providers  either  exclusively  over  their  own  telephone  exchange  service  facilities  or  predominately  over  their  own
 telephone  exchange  service  facilities  in  combination  with  the  resale  of  the  telecommunications  services  of  another  carrier,  (commonly  referred  to  as  Track  A);  or  B)  if  no  potential  competing  provider  has
 requested  to  connect  to  a  BOCs  network,  the  BOC  has  a  statement  of  generally  available  terms  and  conditions  in  place  demonstrating  that  it  is  ready  to  allow  potential  competitors  to  connect  to  its  facilities
75
 10-  4
 (commonly  referred  to  as  Track  B).
 Table  10.12  shows  the  states  in  which  the  BOCs  have  filed  section  271  applications,  the  date  the  application  was  filed,  and  the  applications  resolution  date  and  outcome.  At  this  time,  five  BOC  section
 271  applications  have  been  authorized  in  six  states.  On  December  12,  1999,  the  first  Regional  Bell  operating  companys  application  (Bell  Atlantic,  which  is  now  known  as  Verizon)  was  approved  by  the
 Commission  to  provide  in-  region  interLATA  service  in  the  state  of  New  York.  The  second  application  approved  by  the  Commission  was  SBC  for  Texas,  authorized  on  June  30,  2000.  Kansas  and
 Oklahoma  became  the  third  and  fourth  states  to  be  approved  with  the  Commission  authorizing  their  joint  application  on  January  22,  2001.  The  approval  of  Verizons  application  for  Massachusetts  on  April  16,
 2001  and  for  Connecticut  on  July  20,  2001  made  them  the  fifth  and  sixth  states  to  be  approved.
 Since  the  passage  of  the  96  Act,  the  FCC  has  denied  five  long  distance  applications,  and  now  has  approved  applications  for  long  distance  entry  into  six  states.  As  of  July  25,  2001,  there  is  one
 pending  long  distance  application  before  the  Commission,  Verizons  for  Pennsylvania  (filed  June  21,  2001).  The  companies  approved  must  continue  to  comply  with  the  section  271  checklist  requirements
 as  the  Commission  has  a  number  of  enforcement  tools  at  its  disposal,  including  imposing  penalties  or  suspension  of  approval.  Additional  information  on  section  271  applications  can  be  found  on  the
 Commissions  web  site  at  <www.  fcc.  gov/  Bureaus/  Common_  Carrier/  in-  region_  applications/>.
76
 Table  10.1  Total  Toll  Service  Revenues  by  Carrier  *
 (Dollar  Amounts  Shown  in  Millions)
 Company  1984  1985  1986  1987  1988  1989  1990  1991  1992
 AT&  T  Companies  1/
 AT&  T  Communications,  Inc.  $34,935  $36,770  $36,514  $35,219  $35,407  $34,549  $33,880  $34,384  $35,495  Alascom,  Inc.  255  271  267  262  272  278  259  338  333
 Teleport  Communications  Group,  Inc.  ACC  Long  Distance  Corp.
 WorldCom  Companies  2/  3/  WorldCom,  Inc.
 MCI  Telecommunications  Corp.  1,761  2,331  3,372  3,938  4,886  6,171  7,392  8,266  9,719  Telecom*  USA  105  201  291  396  524  713
 WorldCom,  Inc.  110  154  263  801  Advanced  Telecommunications  Corp.  72  86  124  162  178  326  342  356
 Metromedia  Communications  Corp.  127  381  369  369  ITT  Communication  Services,  Inc.  161  241  282  287  379  404
 Comsystems  Network  Services  130  131  135  Wiltel,  Inc.  300  376  405  494
 MFS  Intelenet,  Inc.  Sprint  Companies  4/  5/
 Sprint  Communications  Co.  1,141  2,592  3,405  4,320  5,041  5,378  5,658  GTE  Sprint  1,052  1,122  779
 US  Telecom  387  212  Qwest  Companies  6/
 LCI  Int'l  Telecom  Corp.  d/  b/  a  Qwest  Comm.  Svcs.  197  215  208  243  Qwest  Communications  Corp.
 USLD  Communications,  Inc.  Concert  Global  Networks  USA,  LLC  7/
 Global  Crossing  Companies  8/  Global  Crossing  Telecommunications,  Inc.  309  450  395  394  334  326  347  376
 Lexitel  127  Global  Crossing  Bandwidth,  Inc.
 Global  Crossing  North  American  Networks,  Inc.  104  142  155  168  Frontier  Comm.  -  North  Central  Region,  Inc.
 International  Exchange  Network,  Ltd.  (IXnet,  Inc.)  BCE,  Inc.  (Bell  Canada  Enterprise  Companies)  9/
 Teleglobe  USA,  Inc.  Excel  Communications,  Inc.
 Excel  Telecommunications,  Inc.  Telco  Communications  Group,  Inc.
 eMeritus  Communications,  Inc.  Long  Distance  Wholesale  Club
 Verizon  Companies  Bell  Atlantic  Comm,  Inc.  d/  b/  a  Verizon  Long  Dist.
 Verizon  Select  Services,  Inc.  IDT  Corporation
 VarTec  Telecom,  Inc.  World  Access,  Inc.  10/
 WorldxChange  Communications  FaciliCom  International
 Star  Companies  11/  Star  Telecommunications,  Inc.
 PT-  1  Communications,  Inc.  PT-  1  Long  Distance,  Inc.
 Broadwing  Companies  12/  Broadwing  Communications  Services,  Inc.
 Broadwing  Telecommunications,  Inc.  Cable  &  Wireless  USA,  Inc.  146  171  180  218  275  359  406  495
 Viatel  Companies  13/  Viatel,  Inc.
 Viatel  Services,  Inc.  McLeodUSA  Telecommunications
 Intermedia  Communications,  Inc.  Talk.  com  Holding  Corp.
 Williams  Communications,  Inc.  RSL  Companies  14/
 RSL  Communications,  Ltd.  RSL  COM  USA,  Inc.
 RSL  COM  Primecall,  Inc.  Westinghouse  Communications
 Primus  Companies  15/  Primus  Telecommunications,  Inc.
 Telegroup,  Inc.  Trescom  International,  Inc.
 Pacific  Gateway  Exchange  16/  Business  Telecom,  Inc.  17/
 ITC^  Deltacom  Communications,  Inc.  NOSVA  Limited  Partnership
 Network  Plus,  Inc.  Startec  Global  Operating  Company
 General  Communication,  Inc.  Evercom  Systems,  Inc.
 SNET  America,  Inc.  Americatel  Corporation
 Lightyear  Communications,  Inc.  ALLTEL  Communications,  Inc.
 New  Global  Telecom,  Inc.  Electric  Lightwave
 Touch  America  Services,  Inc.  Covista  Communications
 Working  Assets  Funding  Service,  Inc.  Norlight  Telecommunications
 Others  18/  414  639  992  1,352  1,823  2,976  3,105  3,437  4,082
 Total  Long  Distance  Carriers  38,755  42,630  44,595  44,783  47,487  51,184  52,102  54,443  58,368
 Bell  Operating  Companies  9,037  9,026  9,599  10,268  10,668  10,549  10,578  10,066  9,718  Other  Incumbent  Local  Telephone  Cos.  18/  3,364  3,159  3,274  3,468  4,445  4,291  4,112  4,049  3,897
 CAPs,  CLECs,  &  Other  Local  Telephone  Cos.  18/
 Total  Local  Exchange  Carriers  12,401  12,185  12,873  13,736  15,113  14,840  14,690  14,115  13,615
 Total  Toll  Service  Revenues  $51,156  $54,815  $57,468  $58,519  $62,600  $66,024  $66,792  $68,558  $71,983
 *  Includes  intrastate,  interstate  and  international  toll  revenues.  #  Year  2000  totals  are  based  on  staff  estimates.  See  notes  following  Table  10.1.  10  -  5
77
 Table  10.1  Total  Toll  Service  Revenues  by  Carrier  *  -  Continued
 (Dollar  Amounts  Shown  in  Thousands)
 Company  1993  1994  1995  1996  1997  1998  1999  2000  #
 AT&  T  Companies  1/
 AT&  T  Communications,  Inc.  $35,731  $37,166  $38,069  $39,264  $39,470  $40,551  $39,680  $37,647  Alascom,  Inc.  320  329  325
 Teleport  Communications  Group,  Inc.  284  464  ACC  Long  Distance  Corp.  118  122  123
 WorldCom  Companies  2/  3/  WorldCom,  Inc.  22,192  23,431  22,554
 MCI  Telecommunications  Corp.  10,947  11,715  14,617  16,372  17,150  Telecom*  USA
 WorldCom,  Inc.  1,145  2,221  3,640  4,485  5,897  Advanced  Telecommunications  Corp.
 Metromedia  Communications  Corp.  297  ITT  Communication  Services,  Inc.
 Comsystems  Network  Services  116  Wiltel,  Inc.  664  917
 MFS  Intelenet,  Inc.  118  122  Sprint  Companies  4/  5/
 Sprint  Communications  Co.  6,139  6,805  7,277  7,944  8,595  7,994  9,708  9,038  GTE  Sprint
 US  Telecom  Qwest  Companies  6/
 LCI  Int'l  Telecom  Corp.  d/  b/  a  Qwest  Comm.  Svcs.  317  453  671  1,103  1,001  1,664  1,394  1,271  Qwest  Communications  Corp.  320  517  1,773
 USLD  Communications,  Inc.  100  136  155  188  241  279  216  Concert  Global  Networks  USA,  LLC  7/  2,472
 Global  Crossing  Companies  8/  Global  Crossing  Telecommunications,  Inc.  436  568  827  1,119  775  874  874  801
 Lexitel  Global  Crossing  Bandwidth,  Inc.  144  127  324  539  692  1,555
 Global  Crossing  North  American  Networks,  Inc.  213  306  309  323  223  196  Frontier  Comm.  -  North  Central  Region,  Inc.  123  133  121
 International  Exchange  Network,  Ltd.  (IXnet,  Inc.)  131  BCE,  Inc.  (Bell  Canada  Enterprise  Companies)  9/
 Teleglobe  USA,  Inc.  275  557  282  Excel  Communications,  Inc.
 Excel  Telecommunications,  Inc.  156  363  1,091  1,179  1,219  942  703  Telco  Communications  Group,  Inc.
 eMeritus  Communications,  Inc.  215  429  379  264  260  169  Long  Distance  Wholesale  Club  176  121  131
 Verizon  Companies  Bell  Atlantic  Comm,  Inc.  d/  b/  a  Verizon  Long  Dist.  130
 Verizon  Select  Services,  Inc.  340  607  834  1,004  IDT  Corporation  376  850  945
 VarTec  Telecom,  Inc.  107  125  470  820  836  819  923  World  Access,  Inc.  10/  914
 WorldxChange  Communications  115  196  345  308  374  FaciliCom  International  164  202
 Star  Companies  11/  Star  Telecommunications,  Inc.  140  253  401  443  296
 PT-  1  Communications,  Inc.  117  358  494  482  270  PT-  1  Long  Distance,  Inc.  241
 Broadwing  Companies  12/  Broadwing  Communications  Services,  Inc.  258  724  453  574
 Broadwing  Telecommunications,  Inc.  150  202  Cable  &  Wireless  USA,  Inc.  557  654  700  919  1,066  953  913  770
 Viatel  Companies  13/  Viatel,  Inc.  333  247
 Viatel  Services,  Inc.  324  335  McLeodUSA  Telecommunications  232  448
 Intermedia  Communications,  Inc.  380  516  444  Talk.  com  Holding  Corp.  180  232  305  426  398  428
 Williams  Communications,  Inc.  227  126  184  413  RSL  Companies  14/
 RSL  Communications,  Ltd.  192  RSL  COM  USA,  Inc.  171  270  362
 RSL  COM  Primecall,  Inc.  130  160  Westinghouse  Communications  127
 Primus  Companies  15/  Primus  Telecommunications,  Inc.  176  240  338
 Telegroup,  Inc.  129  213  337  384  Trescom  International,  Inc.  140  158
 Pacific  Gateway  Exchange  16/  162  299  466  680  298  Business  Telecom,  Inc.  17/  115  149  195  212  260  271
 ITC^  Deltacom  Communications,  Inc.  122  172  270  NOSVA  Limited  Partnership  191  258
 Network  Plus,  Inc.  153  236  Startec  Global  Operating  Company  160  261  215
 General  Communication,  Inc.  92  106  120  143  158  175  184  211  Evercom  Systems,  Inc.  205  206
 SNET  America,  Inc.  142  162  186  189  Americatel  Corporation  129  188
 Lightyear  Communications,  Inc.  180  189  176  ALLTEL  Communications,  Inc.  120  175
 New  Global  Telecom,  Inc.  134  151  Electric  Lightwave  145
 Touch  America  Services,  Inc.  140  Covista  Communications  123  137  140  134
 Working  Assets  Funding  Service,  Inc.  131  140  132  Norlight  Telecommunications  119
 Others  18/  4,459  5,445  5,813  6,553  8,920  9,453  8,781  8,393
 Total  Long  Distance  Carriers  61,533  67,351  74,143  82,113  90,028  94,396  98,788  100,247
 Bell  Operating  Companies  9,849  9,527  8,189  7,950  7,138  6,857  6,182  5,865  Other  Incumbent  Local  Telephone  Cos.  18/  3,908  3,848  3,143  3,298  3,077  2,572  1,864  734
 CAPs,  CLECs,  &  Other  Local  Telephone  Cos.  18/  550  1,230  1,412  1,335
 Total  Local  Exchange  Carriers  13,757  13,375  11,332  11,248  10,765  10,659  9,458  7,934
 Total  Toll  Service  Revenues  $75,290  $80,726  $85,475  $93,361  $100,793  $105,055  $108,246  $108,181
 *  Includes  intrastate,  interstate  and  international  toll  revenues.  #  Year  2000  totals  are  based  on  staff  estimates.  See  notes  following  Table  10.1.  10  -  6
78
 N  o  t  e  s  f  o  r  T  a  b  l  e  1  0  .1
 1/  ACC  Long  Distance  Corp.  and  Teleport  Communications  Group  merged  in  April  of  1998,  and  the  combined  company,
 Teleport  Communications  Group  merged  with  AT&  T  Communications,  Inc.,  in  July  of  that  year.  AT&  T  Communications  acquired  Alascom,  Inc.,  August  7,  1995  and  began  filing  a  consolidated  revenue  statement  in  1996.
 2/  MCI  WorldCom's  revenues  were  revised  for  1998  to  exclude  enhanced  services  and  to  be  consistent  with  revenues  reported  for  1999.
 3/  WorldCom,  Inc.  completed  a  merger  with  MCI  Communications  Corp.  in  September  of  1998  and  filed  1998  revenue  figures  for  the  combined  company,  MCI  WorldCom,  Inc.  MCI  Communications  Corp.  and  Telecom*  USA  merged
 during  1989  and  began  reporting  consolidated  revenues  in  1990.  Metromedia  Communications  Corp.  and  ITT  Communications  Services,  Inc.,  merged  during  1988,  but  reported  1989  revenue  separately.  LDDS  Communications,
 Inc.,  and  Advanced  Telecommunications  Corp.  merged  in  1992.  In  1993,  LDDS  merged  with  Metromedia
 Communications  Corp.  and  Comsystems  Network  Services.  For  1993,  only  the  revenues  that  were  received  after  the  merger  are  included  in  LDDS's  revenues;  those  preceding  the  merger  are  listed  individually.  LDDS  and  Wiltel  merged
 January  5,  1995.  In  May  1995,  LDDS  changed  its  name  to  WorldCom,  Inc.  WorldCom  acquired  MFS  Intelenet
 Decenber  31,  1996.
 4/  Sprint's  revenues  were  revised  for  1998  to  exclude  enhanced  services  and  to  be  consistent  with  revenues  reported  for
 1999.
 5/  In  July  1986,  GTE  Sprint  and  US  Telecom  merged  into  US  Sprint.  The  information  shown  for  GTE  Sprint  and  US  Telecom  for  1986  is  for  January  1  -  June  30.  The  information  shown  for  Sprint  Communications  Corp.  (then  US
 Sprint)  for  1986  is  for  July  1  -  December  31.  United  Telecommunications,  Inc.,  then  majority  owner  of  US  Sprint,
 purchased  the  remaining  interest  from  GTE  in  July  of  1992.  Effective  February  16,  1992,  the  company's  name  became  Sprint  Communications  Co.
 6/  LCI  International  Telecom  Corp.  and  USLD  Communications,  Inc.,  merged  in  December  of  1997  and  filed  separate  revenue  statements  for  the  year.  Qwest  Communications  Corp.  merged  with  LCI  and  USLD  Communications,  Inc.,
 in  June  of  1998,  and  each  of  the  three  affiliated  companies  filed  a  separate  revenue  statement  for  1998.
 7/  Concert  Global  Networks  USA,  LLC  is  a  joint  venture  of  AT&  T  Corporation  and  British  Telecommunications.
 8/  Global  Crossing  Ltd.  acquired  Frontier  Corporation  September  28,  1999.  In  1994,  RCI  Long  Distance,  Inc.,  changed  its
 name  to  Frontier  Corporation.
 9/  Bell  Canada  Enterprise  (BCE)  acquired  Teleglobe,  Inc.  on  November  1,  2000.  eMeritus  Communications  was  formerly
 known  as  Telco  Business  Solutions,  Inc.  (previously  Telco  Holdings,  Inc.)  Teleglobe  USA,  Inc.,  merged  with  Excel
 Telecommunications,  Inc.,  and  its  affiliate  merged  with  Excel  Telecommunications,  Inc.,  and  its  affiliate  in  November  of  1998.  Excel  Telecommunications  acquired  Telco  Holdings  in  October  of  1997.
 10/  World  Access,  Inc.  aquired  WorldxChange  Communications  December  19,  2000.  FaciliCom  merged  into  World  Access,
 Inc.  on  December  7,  1999.  World  Access  and  five  of  its  subsidiaries,  including  WorldxChange  and  FaciliCom,  filed
 Chapter  11  bankruptcy  procedings  in  Illinois  on  April  24,  2001.
 11/  Star  Telecommunications'  s  revenues  for  1996  -  1998  have  been  prorated  to  reflect  the  decrease  in  revised  revenues
 reported  for  1999.  Star  filed  Chapter  11  bankruptcy  procedings  in  California  on  March  13,  2001.
 12/  Cincinnati  Bell  Inc.,  merged  with  IXC  Communications,  Inc.,  on  November  9,  1999  and  soon  began  doing  business  as  Broadwing,  Inc.
 13/  Viatel,  Inc.  filed  Chapter  11  bankruptcy  procedings  in  Delaware  on  May  2,  2001.  They  discontinued  offering  service  in  the  United  States  at  that  time.  Revenues  for  year  2000  are  from  their  Form  499-  A  filings.
 14/  RSL  COM  USA  bought  Westinghouse  Communications  in  August  1998.  RSL  COM  USA  filed  Chapter  11bankruptcy
 procedings  in  New  York  on  March  16,  2001.
 15/  Primus  Telecommunications,  Inc.  acquired  TresCom  International,  Inc.,  in  1998.
 16/  Pacific  Gateway  Exchange  filed  Chapter  11  bankruptcy  procedings  in  California  on  December  29,  2001.  Revenues  are  for  year  ended  December  31,  2000  and  are  from  their  Form  8-  K  filed  May  30,  2001.
 17/  Data  for  1996  taken  from  the  Annual  Report  to  the  Colorado  Public  Utilities  Commission  from  telecommunications
 carriers  regulated  pursuant  to  40-  15-  301  C.  R.  S.
 18/  Estimated  by  FCC  staff.
 10  -  7
79
 Intrastate,  Interstate,  and  International  Toll  Revenues  (Dollar  Amounts  Shown  in  Millions)
 Toll  Revenues  As  Percentage  of  Total  Toll  Revenues
 Domestic  Total  Toll  Domestic
 Year  Intrastate  Interstate  International  Revenues  Intrastate  Interstate  International
 1984  $20,872  $26,490  $3,794  $51,156  40.8  %  51.8  %  7.4  %  1985  22,310  28,387  4,119  54,815  40.7  51.8  7.5
 1986  23,734  29,123  4,611  57,468  41.3  50.7  8.0  1987  25,339  27,844  5,336  58,519  43.3  47.6  9.1
 1988  26,542  29,724  6,334  62,600  42.4  47.5  10.1  1989  28,060  30,585  7,379  66,024  42.5  46.3  11.2
 1990  27,652  30,676  8,464  66,792  41.4  45.9  12.7  1991  27,149  31,331  10,078  68,558  39.6  45.7  14.7
 1992  27,066  33,719  11,199  71,983  37.6  46.8  15.6  1993  28,158  34,661  12,470  75,290  37.4  46.0  16.6
 1994  28,496  38,262  13,968  80,726  35.3  47.4  17.3  1995  29,147  39,903  16,425  85,475  34.1  46.7  19.2
 1996  32,023  42,823  18,515  93,361  34.3  45.9  19.8  1997  32,859  47,716  20,218  100,793  32.6  47.3  20.1
 1998  34,699  48,100  22,256  105,055  33.0  45.8  21.2  1999  33,600  54,306  20,340  108,246  31.0  50.4  18.6
 Average  Annual  Growth  Rate  (1984-  1999):  5.1%
 Table  10.2
 0
 20,000
 40,000
 60,000
 80,000
 100,000
 120,000
 1984  1985  1986  1987  1988  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999
 Chart  10.1
 Toll  Revenues  by  Market  Segment
 (Dollar  Amounts  Shown  in  Billions)
 Intrastate  Interstate  International
 10  -  8
80
 Residential  and  Nonresidential  Toll  Revenues  (Dollar  Amounts  Shown  in  Millions)
 Toll  Revenues  Total  Toll  As  Percentage  of  Total  Toll  Revenues
 Year  Residential  Nonresidential  Revenues  Residential  Nonresidential
 1990  $24,089  $42,703  $66,792  36.1  %  63.9  %  1991  26,028  42,530  68,558  38.0  62.0
 1992  30,816  41,167  71,983  42.8  57.2  1993  32,408  42,882  75,290  43.0  57.0
 1994  38,526  42,200  80,726  47.7  52.3  1995  36,361  49,114  85,475  42.5  57.5
 1996  40,461  52,900  93,361  43.3  56.7  1997  43,754  57,039  100,793  43.4  56.6
 1998  44,543  60,512  105,055  42.4  57.6  1999  45,896  62,350  108,246  42.4  57.6
 1/  1999  residential/  nonresidential  breakdown  projected  from  1998  data.
 Residential  Average  Annual  Growth  Rate  (1990-  1999):  7.4%  Nonresidential  Average  Annual  Growth  Rate  (1990-  1999):  3.9%
 Table  10.3
 0
 20,000
 40,000
 60,000
 80,000
 100,000
 120,000
 1990  1991  1992  1993  1994  1995  1996  1997  1998  1999
 Chart  10.2
 Residential  and  Nonresidential  Toll  Revenues
 (Dollar  Amounts  Shown  in  Billions)
 Residential  Toll  Revenues  Nonresidential  Toll  Revenues
 10  -  9
81
 Table  10.4
 Number  of  Toll  Carriers
 TRS  Data  TRS  &  USF  Data  Form  499-  A
 Data
 1993  1994  1995  1996  1997  1998  1999
 Carriers  That  Provide  Toll  Service
 Toll  Carriers
 Interexchange  Carriers  (IXCs)  83  97  130  149  151  171  204
 Other  Toll  Carriers
 Operator  Service  Providers  (OSPs)  35  29  25  27  32  24  21
 Pre-  paid  Calling  Card  Providers  NA  NA  8  16  18  20  21
 Satellite  Service  Carriers  NA  NA  NA  22  13  13  21
 Toll  Resellers  171  206  260  345  340  388  457
 Other  Toll  Carriers  32  34  30  28  15  31  17
 Total  Toll  Carriers  321  366  453  587  569  647  741
 Fixed  Local  Service,  Payphone,  and
 Mobile  Service  Carriers  Reporting
 Toll  Service  Revenues  NA  NA  NA  NA  1,537  1,740  1,870
 Total  Total  NA  NA  NA  NA  2,106  2,387  2,611
 NA  -  Not  Available.
 Note:  Some  previously  published  data  have  been  revised.
 Sources:  Data  filed  in  response  to  47  CFR  43.21(  c)  and  data  filed  on  FCC  Forms  431,  457,  and  499-  A  worksheets.  See  also:  Industry
 Analysis  Division,  Telecommunications  Industry  Revenues,  and  Carrier  Locator:  Interstate  Service  Providers.
 10  -  10
82
 Table  10.5
 Number  of  Carrier  Identification  Codes  (CICs)  Assigned  by
 North  American  Numbering  Plan  Administrator
 Number  of  Number  of
 Year  Quarter  CICS  Year  Quarter  CICS
 Assigned  Assigned
 1982  First  Quarter  11  1988  First  Quarter  602
 Second  Quarter  13  Second  Quarter  621
 Third  Quarter  13  Third  Quarter  601
 Fourth  Quarter  11  Fourth  Quarter  639
 1983  First  Quarter  15  1989  First  Quarter  685
 Second  Quarter  25  Second  Quarter  714
 Third  Quarter  33  Third  Quarter  730
 Fourth  Quarter  42  Fourth  Quarter  747
 1984  First  Quarter  54  1990  First  Quarter  774
 Second  Quarter  86  1/  Second  Quarter  794
 Third  Quarter  121  Third  Quarter  817
 Fourth  Quarter  155  Fourth  Quarter  791
 1985  First  Quarter  182  1991  First  Quarter  745
 Second  Quarter  212  Second  Quarter  766
 Third  Quarter  236  Third  Quarter  783
 Fourth  Quarter  256  Fourth  Quarter  807
 1986  First  Quarter  276  1992  First  Quarter  786
 Second  Quarter  331  Second  Quarter  831
 Third  Quarter  361  Third  Quarter  840
 Fourth  Quarter  413  Fourth  Quarter  886
 1987  First  Quarter  444
 Second  Quarter  495
 Third  Quarter  530
 Fourth  Quarter  573
 Year  Quarter  FGB  FGD
 1993  First  Quarter  694  2/  709
 Second  Quarter  738  746
 Third  Quarter  739  760
 Fourth  Quarter  753  796
 1994  First  Quarter  781  815
 Second  Quarter  795  845
 Third  Quarter  805  899  3/
 Fourth  Quarter  819  947
 1995  First  Quarter  829  1,016
 Second  Quarter  832  1,082
 Third  Quarter  843  1,146
 Fourth  Quarter  852  1,209
 1996  First  Quarter  865  1,253
 Second  Quarter  876  1,300
 Third  Quarter  875  1,315
 Fourth  Quarter  878  1,337
 1997  First  Quarter  882  1,395
 Second  Quarter  896  1,427
 Third  Quarter  908  1,481
 Fourth  Quarter  909  1,538
 1998  First  Quarter  943  1,557
 Second  Quarter  937  1,614
 Third  Quarter  943  1,671
 Fourth  Quarter  952  1,721
 1999  First  Quarter  949  1,842
 Second  Quarter  953  1,909
 Third  Quarter  954  1,980
 Fourth  Quarter  956  2,032
 2000  First  Quarter  958  2,093
 Second  Quarter  958  2,142
 Third  Quarter  937  2,181
 Fourth  Quarter  911  2,203
 2001  First  Quarter  897  2,232
 Second  Quarter  885  2,225
 1/  Conversion  from  2-  digit  to  3-  digit  codes.
 2/  Conversion  from  3-  digit  to  4-  digit  codes.
 3/  Includes  both  3-  digit  and  4-  digit  codes.
 10  -  11
83
 Table  10.6
 Alternative  Measures  of  Long  Distance  Carrier  Development
 Carriers  Carriers  Firms  with  Firms  Carriers
 Year  Month  with  Purchasing  Carrier  Purchasing  Filing  TRS
 Presubscribed  Equal  Access  Identification  Access  Worksheets
 Lines  1/  Codes  2/
 1986  March  *  169  231  *  *
 June  *  183  276  *  *
 September  *  190  302  506  *
 December  *  210  334  533  *
 1987  March  *  211  360  561  *
 June  *  213  397  *  *
 September  *  224  421  *  *
 December  223  239  451  540  *
 1988  March  *  238  471  511  *
 June  242  248  489  519  *
 September  *  256  464  506  *
 December  253  266  493  510  *
 1989  March  *  274  520  519  *
 June  276  287  544  *  *
 September  *  304  560  *  *
 December  302  318  577  514  *
 1990  March  *  289  594  512  *
 June  314  288  611  506  *
 September  *  304  636  511  *
 December  325  304  601  499  *
 1991  March  *  306  571  505  *
 June  355  327  597  542  *
 September  *  337  605  538  *
 December  388  351  631  576  *
 1992  March  *  361  616  595  *
 June  425  370  659  577  *
 September  *  379  654  587  *
 December  414  394  692  599  *
 1993  March  *  *  *  *  *
 June  412  401  *  *  *  September  *  401  *  *  *
 December  436  420  *  *  321
 1994  March  *  433  *  *  *
 June  454  444  *  *  *
 September  *  458  *  *  *
 December  511  465  *  *  366
 1995  March  *  *  *  *  *
 June  549  *  *  *  *
 September  *  *  *  *  *
 December  583  *  *  *  453
 1996  March  *  *  *  *  *
 June  582  *  *  *  *
 September  *  *  *  *  *
 December  621  *  *  *  587
 1997  December  3/  *  *  *  *  569
 1998  December  *  *  *  *  647
 1999  December  *  *  *  *  738
 *  Data  not  available.
 1/  Data  for  the  periods  prior  to  March  1990  include  a  small  number  of  firms  purchasing  equal  access  that  were  not  carriers.
 2/  Includes  interexchange  carriers,  operator  service  providers,  other  toll  carriers,  pay  card  providers,  and  toll  resellers.
 3/  The  number  of  carriers  with  presubscribed  lines  is  no  longer  available.  The  only  measure  available  after  December  1996
 is  the  number  of  carriers  filing  TRS  annual  worksheets.  One  company  that  had  filed  about  fifty  separate  worksheets  in  1996
 filed  only  one  consolidated  worksheet  for  1997.  Starting  in  1997,  the  measure  used  is  the  number  of  filers  submitting
 Telecommunications  Reporting  Worksheets  (FCC  Form  499-  A).
 10  -  12
84
 Year
 1976  $19,800  $67  1977  22,429  146
 1978  25,891  188  1979  29,262  289
 1980  32,855  480  1981  38,309  871
 1982  42,332  1,587  1983  44,298  2,672
 1984  35,190  3,565  $12,401  1985  37,041  5,589  12,185
 1986  36,782  7,813  12,873  1987  35,481  9,302  13,736
 1988  35,679  11,807  15,113  1989  34,827  16,160  14,840
 1990  34,139  17,748  14,690  1991  34,722  19,513  14,115
 1992  35,828  22,297  13,615  1993  36,051  24,660  13,757
 1994  37,495  29,856  13,375  1995  38,394  35,749  11,332
 1996  39,382  42,769  11,248  1997  39,592  50,558  10,215  $550
 1998  40,674  53,722  9,429  1,230  1999  39,964  58,824  8,046  1,412
 2000  38,111  62,136  6,599  1,335
 reported  separately  to  the  FCC.
 Table  10.1,  footnote  7.)
 Communications  Group  (including  ACC  Long  Distance  Corporation)  which  merged  with  AT&  T  in  1998.
 108,246  105,055  108,181
 85,475  93,361
 26,079
 43,919
 51,156
 71,983
 46,970
 100,793
 66,792  68,558
 54,815
 75,290
 57,468  58,519
 62,600  66,024
 80,726
 Table  10.7
 Industry
 Revenues
 Long  Distance
 Local  Exchange  Carriers
 Total
 (Dollar  Amounts  Shown  in  Millions)
 Long  Distance  Carriers
 Toll  Revenues  of  AT&  T,  ILECs  and  Other  Toll  Service  Providers
 Incumbent  Competitive  Local  Exchange  AT&  T
 1/  2/  3/
 Other
 Carriers  Toll
 22,575
 Local  Exchange  Carriers
 3/  For  year  2000,  revenues  for  AT&  T  do  not  include  their  share  of  Concert  Global  Networks  USA,  Inc.
 $19,867
 Carriers
 2/  Prior  to  1984,  AT&  T  and  Alascom  toll  revenues  include  local  exchange  carrier  toll  revenues,  which
 1/  AT&  T's  revenues  include  the  long  distance  revenues  of  Alascom  (acquired  in  1995)  and  Teleport
 29,551  33,335
 39,180
 Chart  10.3
 AT&  T's  Share  of  Toll  Revenues
 0%
 50%
 100%
 150%
 1976  1978  1980  1982  1984  1986  1988  1990  1992  1994  1996  1998  2000
 10  -  13
85
 Table  10.8  Share  of  Total  Toll  Service  Revenues  -  Long  Distance  Carriers  Only  1/
 All  Other  Year  AT&  T  Sprint  Long
 Distance  Carriers
 1984  90.1  %  2.7  %  2.6  %  1985  86.3  2.6  5.6
 1986  81.9  4.3  6.3  1987  78.6  5.8  6.8
 1988  74.6  7.2  8.0  1989  67.5  8.4  11.8
 1990  65.0  9.7  10.8  1991  63.2  9.9  11.3
 1992  60.8  9.7  11.5  1993  58.1  10.0  12.3
 1994  55.2  10.1  14.0  1995  51.8  9.8  13.8
 1996  47.9  9.7  17.0  1997  43.8  9.5  19.8
 1998  43.1  8.5  24.9  1999  40.5  9.8  26.0
 2000  38.0  2/  9.0  30.5
 1/  Excludes  independent  local  exchange  carriers  and  competitive  local  exchange  carriers.  2/  For  year  2000,  AT&  T's  market  share  does  not  reflect  revenues  from  their  share  of  Concert
 Global  Networks  USA,  LLC.  (See  Table  10.1,  footnote  7.)
 Table  10.9  Share  of  Total  Toll  Service  Revenues  -  All  Long  Distance  Toll  Providers  1/
 All  Bell  Other  Year  AT&  T  MCI  WorldCom  Other  Operating  Local
 Long  Companies  Telephone  Distance  Companies
 Carriers
 1984  68.3  %  2.1  %  2.0  %  17.7  %  6.6  %  1985  67.1  2.0  4.4  16.5  5.8
 1986  63.5  3.3  4.9  16.7  5.7  1987  60.2  4.4  5.2  17.5  5.9
 1988  56.6  5.4  6.1  17.0  7.1  1989  52.3  6.5  9.1  16.0  6.5
 1990  50.7  7.5  8.4  15.8  6.2  1991  50.2  7.8  9.0  14.7  5.9
 1992  49.3  7.9  9.3  13.5  5.4  1993  47.5  8.2  10.1  13.1  5.2
 1994  46.0  8.4  11.7  11.8  4.8  1995  44.9  8.5  12.0  9.6  3.7
 1996  42.1  8.5  15.0  8.5  3.5  1997  39.2  8.5  18.8  7.1  3.6
 1998  38.7  21.1  7.6  22.4  6.5  3.6  1999  36.9  21.7  9.0  23.7  5.7  3.0
 2000  35.2  2/  20.8  8.4  28.2  5.4  2.0
 1/  Includes  independent  local  exchange  carriers  and  competitive  local  exchange  carriers.  2/  For  year  2000,  AT&  T's  market  share  does  not  reflect  revenues  from  their  share  of  Concert  Global  Networks  USA,  LLC.
 (See  Table  10.1,  footnote  7.)
 22.4  22.9
 14.6  16.0
 17.3  21.4
 7.8  9.5
 23.7
 11.3  12.5
 3.4  %  4.3
 5.9  6.7
 Sprint
 22.5
 25.4  24.6  25.7
 23.5
 8.8
 18.1  19.7
 20.7
 10.3  12.3
 14.5  15.6
 MCI  WorldCom
 4.5  %  5.5
 7.6
 10  -  14
86
 Residential  Market  Share:  1995  -  2000
 AT&  T  WorldCom  1/  Sprint  Other
 Access  Lines  2/
 1995  74.6  %  13.0  %  4.2  %  8.2  %
 1996  69.9  14.1  5.0  11.0
 1997  67.2  13.2  5.7  13.8
 1998  62.6  15.1  5.7  16.6
 1999  62.5  16.0  6.2  15.4
 2000  53.3  18.1  6.9  21.8
 Toll  Revenues
 1995  68.5  %  14.6  %  5.6  %  11.3  %
 1996  63.3  16.0  6.6  14.1
 1997  61.1  16.6  5.6  16.7
 1998  58.3  18.4  5.7  17.6
 1999  56.1  21.6  6.2  16.1
 2000  48.4  22.2  6.8  22.6
 Direct-  Dial  Minutes
 1995  69.5  %  16.1  %  5.8  %  8.6  %
 1996  62.5  15.9  7.1  14.5
 1997  62.4  14.9  6.5  16.2
 1998  58.4  17.0  6.5  18.1
 1999  53.2  20.9  6.6  19.3
 2000  44.7  21.3  7.3  26.6
 1/  In  1995  for  MCI  only.  In  1996,  includes  MCI  and  LDDS.
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and
 Associates),  Telecoms  Market  MonitorTM  .
 Note:  Market  shares  for  past  years  have  been  revised  to  take  into  account  mergers  and
 acquisitions  and  changes  in  methodology.
 2/  In  1995,  1996,  1999  and  2000,  TNS  Telcoms  defined  the  household's  primary  long  distance
 carrier.  In  1997,  a  household's  primary  long  distance  carrier  was  determined  based  on  calls
 made  through  long  distance  carriers,  and  in  1998,  a  household's  primary  long  distance  carrier
 was  determined  based  on  interLATA  calls.
 Table  10.10
 10  -  15
87
 AT&  T  WorldCom  Sprint  Other  Minutes  2/
 Alabama  55.5  %  22.6  %  3.3  %  18.5  %  37,875
 Arizona  45.3  28.3  6.6  19.8  63,686
 Arkansas  41.7  18.8  5.6  33.9  26,107
 California  42.6  21.4  6.7  29.4  245,219
 Colorado  40.5  22.3  3.4  33.8  44,148
 Connecticut  29.1  8.5  3.8  58.6  16,536
 Delaware  26.1  27.1  8.2  38.6  5,076
 District  of  Columbia  25.5  50.8  13.2  10.6  5,488
 Florida  49.4  21.5  9.1  20.0  223,503
 Georgia  48.7  29.3  3.3  18.8  62,360
 Idaho  35.1  19.9  6.7  38.3  17,348
 Illinois  46.3  22.0  6.4  25.3  102,295
 Indiana  51.9  17.6  7.2  23.3  54,944
 Iowa  40.7  25.0  4.5  29.8  34,979
 Kansas  34.1  12.5  19.2  34.1  19,707
 Kentucky  49.5  15.5  7.9  27.1  35,217
 Louisiana  49.2  16.4  5.1  29.4  34,739
 Maine  43.5  22.0  4.2  30.3  5,812
 Maryland  39.6  32.3  5.8  22.3  62,912
 Massachusetts  57.4  20.3  10.1  12.1  25,218
 Michigan  51.8  15.4  9.3  23.6  89,987
 Minnesota  46.1  23.7  7.8  22.4  56,207
 Mississippi  59.0  25.3  2.7  13.0  22,046
 Missouri  46.5  11.2  12.4  29.9  26,396
 Montana  44.0  11.3  5.0  39.7  13,359
 Nebraska  41.7  24.8  8.9  24.6  18,079
 Nevada  37.2  20.4  11.9  30.4  25,971
 New  Hampshire  47.1  21.1  13.3  18.6  8,065
 New  Jersey  55.5  21.1  6.6  16.8  70,028
 New  Mexico  40.7  25.9  5.2  28.2  15,963
 New  York  38.2  23.8  5.8  32.1  153,660
 North  Carolina  53.1  16.6  11.3  19.0  74,305
 North  Dakota  19.7  30.4  6.8  43.1  11,491
 Ohio  44.7  17.6  8.9  28.8  111,411
 Oklahoma  42.2  17.1  5.2  35.5  26,516
 Oregon  48.8  18.0  1.3  31.9  41,791
 Pennsylvania  40.6  25.5  6.4  27.5  109,935
 Rhode  Island  38.8  16.8  21.6  22.9  5,474
 South  Carolina  39.7  18.5  9.9  32.0  43,129
 South  Dakota  40.9  17.0  3.0  39.1  6,914
 Tennessee  49.1  20.5  7.4  23.0  55,678
 Texas  33.7  18.5  10.0  37.7  126,653
 Utah  58.3  17.4  4.1  20.2  14,197
 Vermont  47.5  21.8  2.6  28.1  5,958
 Virginia  41.1  24.1  9.7  25.0  82,380
 Washington  43.1  20.9  7.3  28.6  54,701
 West  Virginia  57.5  23.9  0.4  18.1  16,295
 Wisconsin  44.3  20.7  6.2  28.9  85,598
 Wyoming  55.4  17.9  5.1  21.6  9,493
 Total  44.7  21.3  7.3  26.6  2,504,849
 1/  Based  on  interLATA  toll  calls.
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and  Associates),  Telecoms  Market  MonitorTM  .
 Market  Shares  of  Residential  Direct  Dial-  Minutes  by  State:  2000  1/
 2/  Total  minutes  of  direct-  dial  toll  calling  in  the  Bill  Harvesting  study.  Caution  should  be  used  in  interpreting  market  shares  for
 states  with  few  minutes,  where  sample  sizes  are  generally  small.
 Table  10.11
 10  -  16
88
 State  Resolution
 Connecticut  Approved  04/  23/  01  07/  20/  01  Kansas  Approved  10/  26/  00  01/  22/  01
 Louisiana  Denied  11/  06/  97  02/  04/  98  Louisiana  Denied  07/  09/  98  10/  13/  98
 Massachusetts  Withdrawn  09/  22/  00  12/  18/  00  Massachusetts  Approved  01/  16/  01  04/  16/  01
 Michigan  Withdrawn  01/  02/  97  02/  11/  97  Michigan  Denied  05/  21/  97  08/  19/  97
 Missouri  Withdrawn  04/  04/  01  06/  07/  01  New  York  Approved  09/  29/  99  12/  22/  99
 Oklahoma  Denied  04/  11/  97  06/  26/  97  Oklahoma  Approved  10/  26/  00  01/  22/  01
 Pennsylvania  Pending  06/  21/  01  1/  South  Carolina  Denied  09/  30/  97  12/  24/  97
 Texas  Withdrawn  01/  10/  00  04/  05/  00  Texas  Approved  04/  05/  00  06/  30/  00
 *  As  of  August  17,  2001.  1/  Statutory  deadline  for  Commission  action  is  September  19,  2001.
 Filed
 Date  Application
 Table  10.12
 BOC  Applications  to  Provide
 Date  Application
 Resolved
 (Section  271  Applications)
 In-  Region  InterLATA  Service  *
 10  -  17
89
 11-  1
 11  Minutes
 1.  Dial  Equipment  Minutes
 As  in  the  case  of  telephone  lines,  there  are  several  alternative  measures  of  calling  volumes.  Most  subscribers  purchase  service  with  unlimited  local  calling.  As  a  result,  most  calls  are  not  metered
 and  estimates  of  total  calling  are  subject  to  wide  margins  of  error.  Periodic  studies  are  used  within  the  telephone  industry  to  estimate  the  number  of  calls  and  calling  minutes  for  a  variety  of  purposes.  For
 example,  periodic  studies  of  dial  equipment  minutes  (DEMs)  are  used  to  estimate  the  proportion  of  calling  that  is  interstate  and  to  allocate  costs  between  interstate  and  intrastate  services.
 DEMs,  which  are  shown  in  Table  11.1,  are  measured  as  calls  that  enter  and  leave  telephone  switches;  therefore,  two  DEMs  are  counted  for  every  conversation  minute.  (Individual  company  and
 state  data  can  be  found  in  our  Monitoring  Report  on  the  FCC-  State  Link  web  page.)  Until  recently,  the  volume  of  local  calling  grew  at  approximately  the  same  rate  as  the  number  of  local  telephone  lines.
 In  contrast,  the  volume  of  long  distance  calling  surged  as  prices  fell.  As  a  result,  a  greater  portion  of  calls  are  long  distance.  Intrastate  toll  minutes  increased  from  8%  of  all  minutes  in  1980  to  10%  in  1999.
 During  that  same  period,  interstate  calling  minutes  increased  from  8%  of  the  total  to  13%.
 As  shown  in  Table  11.2,  the  average  telephone  line  is  used  primarily  for  local  calling  and  is  used  about  an  hour  per  day  for  all  calls  (local,  intrastate  toll,  and  interstate  toll).  The  level  of  local  calling  has
 remained  relatively  constant  for  a  long  period  of  time.  In  recent  years,  however,  it  has  begun  to  surge  due  to  the  introduction  of  facsimile  machines,  computer  modems,  and  other  devices  that  use  telephone
 lines.  Increases  in  local  and  long  distance  calling  have  caused  the  total  usage  per  line  to  increase  from  46  minutes  per  day  in  1980  to  65  minutes  per  day  in  1999.
 2.  Switched  Access  Minutes
 An  alternative  measure  of  interstate  calling  became  available  in  1984.  Switched  access  minutes  are  those  minutes  transmitted  by  long  distance  carriers  that  also  use  the  distribution  networks  of  local
 telephone  companies.  The  measure  includes  minutes  associated  with  ordinary  long  distance  calls  and  the  "open  end"  of  WATS  and  800-  like  calls.  It  excludes  calls  made  on  private  telecommunications
 systems,  on  leased  lines,  and  minutes  on  the  "closed  end"  of  WATS  and  800-  like  calls.  On  ordinary  long  distance  calls,  minutes  are  counted  both  where  the  call  originates  and  where  the  call  terminates.
 Table  11.3  shows  the  total  number  of  interstate  switched  access  minutes  handled  by  all  long  distance  carriers.  The  number  of  minutes  has  grown  steadily  since  mid-  1984,  stemming  from  a
 combination  of  overall  economic  growth  and  price  reductions.  Premium  minutes  have  grown  rapidly,  reflecting  both  strong  underlying  traffic  growth  and  the  conversion  of  offices  to  equal  access.
 Non-  premium  minutes  (principally  minutes  handled  by  AT&  T's  competitors  in  areas  where  equal  access  has  not  yet  been  provided)  continue  to  decline  as  the  process  of  conversion  to  equal  access  nears
 completion.
 Telephone  industry  traffic  experts  often  argue  that  dial  equipment  minutes  represent  the  best
90
 11-  2
 available  information  on  the  proportions  of  different  types  of  calls,  while  access  minutes  are  the  most  accurate  available  data  on  the  volume  of  interstate  calling.  However,  it  is  not  clear  why  reported
 changes  in  access  minutes  are  not  entirely  consistent  with  reported  changes  in  dial  equipment  minutes.
91
 Table  11.1
 Dial  Equipment  Minutes  (Minutes  Shown  in  Billions)
 Local  Intrastate  Interstate  Total
 Toll  Toll
 1980  1,458  141  133  1,733  1981  1,492  151  144  1,787
 1982  1,540  158  154  1,853  1983  1,587  166  169  1,923
 1984  1,639  198  208  2,045  1985  1,673  222  250  2,145
 1986  1,699  237  270  2,207  1987  1,713  253  295  2,261
 1988  1,795  269  321  2,384  1989  1,829  286  344  2,459
 1990  1,846  298  353  2,497  1991  1,859  302  366  2,527
 1992  1,926  311  381  2,618  1993  2,027  316  396  2,739
 1994  2,126  327  420  2,873  1995  2,224  346  454  3,025
 1996  2,389  370  486  3,245  1997  2,683  404  525  3,611
 1998  2,982  420  553  3,955  1999  3,379  451  585  4,414
 Increase  Over  Prior  Year
 1981  2  %  7  %  8  %  3  %  1982  3  5  7  4
 1983  3  5  10  4  1984  3  19  23  6
 1985  2  12  20  5  1986  2  7  8  3
 1987  1  7  9  2  1988  5  6  9  5
 1989  2  6  7  3  1990  1  4  3  2
 1991  1  1  4  1  1992  4  3  4  4
 1993  5  2  4  5  1994  5  3  6  5
 1995  5  6  8  5  1996  7  7  7  7
 1997  12  9  8  11  1998  11  4  5  10
 1999  13  7  6  12
 Percent  Distribution
 1980  84  %  8  %  8  %  100  %  1981  83  8  8  100
 1982  83  9  8  100  1983  83  9  9  100
 1984  80  10  10  100  1985  78  10  12  100
 1986  77  11  12  100  1987  76  11  13  100
 1988  75  11  13  100  1989  74  12  14  100
 1990  74  12  14  100  1991  74  12  14  100
 1992  74  12  15  100  1993  74  12  14  100
 1994  74  11  15  100  1995  74  11  15  100
 1996  74  11  15  100  1997  74  11  15  100
 1998  75  11  14  100  1999  77  10  13  100
 Source:  National  Exchange  Carrier  Association.
 11  -  3
92
 Table  11.2
 Line  Usage  Per  Day  (Dial  Equipment  Minutes  per  Local  Loop)
 Local  Intrastate  Interstate  Total  Toll  Toll
 1980  39  4  4  46
 1981  39  4  4  46
 1982  39  4  4  47
 1983  39  4  4  48
 1984  40  5  5  50
 1985  40  5  6  51
 1986  39  5  6  51
 1987  38  6  7  50
 1988  39  6  7  51
 1989  38  6  7  51  1990  37  6  7  50
 1991  37  6  7  50
 1992  37  6  7  50
 1993  37  6  7  51
 1994  38  6  8  51
 1995  38  6  8  52
 1996  39  6  8  53
 1997  42  6  8  57
 1998  45  6  8  60
 1999  50  7  9  65
 Increase  Over  Prior  Year
 1981  -1  %  4  %  5  %  0  %
 1982  1  3  5  2
 1983  0  2  7  1
 1984  1  17  21  4
 1985  -1  9  17  2
 1986  0  5  6  1
 1987  -3  3  5  -1
 1988  1  2  5  2
 1989  -1  3  4  0  1990  -2  1  -1  -2
 1991  -2  -1  1  -1
 1992  0  0  1  0
 1993  2  -1  1  2
 1994  1  0  3  1
 1995  1  2  4  1
 1996  3  2  2  3
 1997  8  5  4  7
 1998  7  1  2  6
 1999  10  4  3  9
 11  -  4
93
 (In  Billions)
 Access  Access  Access  Year  Period  Minutes  Year  Period  Minutes  Year  Period  Minutes
 1990  First  Quarter  74.7  1996  First  Quarter  115.7  Second  Quarter  75.8  Second  Quarter  114.7
 1984  Third  Quarter  37.5  Third  Quarter  77.9  Third  Quarter  117.5  Fourth  Quarter  39.6  Fourth  Quarter  79.1  Fourth  Quarter  120.2
 Total  1990  307.4  Total  1996  468.1
 1985  First  Quarter  39.6  1991  First  Quarter  79.2  1997  First  Quarter  122.1  Second  Quarter  41.5  Second  Quarter  81.9  Second  Quarter  124.4
 Third  Quarter  42.8  Third  Quarter  82.6  Third  Quarter  124.9  Fourth  Quarter  43.3  Fourth  Quarter  84.4  Fourth  Quarter  125.8
 Total  1985  167.1  Total  1991  328.0  Total  1997  497.3
 1986  First  Quarter  43.0  1992  First  Quarter  85.6  1998  First  Quarter  124.0  Second  Quarter  44.8  Second  Quarter  86.5  Second  Quarter  131.3
 Third  Quarter  46.7  Third  Quarter  87.9  Third  Quarter  130.7  Fourth  Quarter  48.5  Fourth  Quarter  89.8  Fourth  Quarter  132.8
 Total  1986  183.1  Total  1992  349.7  Total  1998  518.8
 1987  First  Quarter  51.2  1993  First  Quarter  90.6  1999  First  Quarter  136.0  Second  Quarter  52.5  Second  Quarter  91.2  Second  Quarter  138.2
 Third  Quarter  55.0  Third  Quarter  93.6  Third  Quarter  138.2  Fourth  Quarter  57.0  Fourth  Quarter  95.9  Fourth  Quarter  140.2
 Total  1987  215.7  Total  1993  371.2  Total  1999  552.7
 1988  First  Quarter  59.0  1994  First  Quarter  98.7  2000  First  Quarter  142.9  Second  Quarter  59.6  Second  Quarter  97.9  Second  Quarter  142.9
 Third  Quarter  62.1  Third  Quarter  101.9  Third  Quarter  141.3  Fourth  Quarter  64.0  Fourth  Quarter  102.9  Fourth  Quarter  140.3
 Total  1988  244.6  Total  1994  401.4  Total  2000  567.4
 1989  First  Quarter  66.2  1995  First  Quarter  105.6  2001  First  Quarter  139.6  Second  Quarter  68.5  Second  Quarter  106.8
 Third  Quarter  69.7  Third  Quarter  109.0  Fourth  Quarter  72.6  Fourth  Quarter  110.6
 Total  1989  277.1  Total  1995  431.9
 Source:  FCC  Monitoring  Report.
 Table  11.3
 Interstate  Switched  Access  Minutes
 0
 100
 200
 300
 400
 500
 600
 1985  1987  1989  1991  1993  1995  1997  1999
 Chart  11.1
 Interstate  Switched  Access  Minutes
 (In  Billions)
 11  -  5
94
 12-  1
 12  Mobile  Wireless  Service
 The  Commission  collects  data  on  the  number  of  wireless  subscribers  per  state  as  part  of  a  recently  adopted  local  competition  and  broadband  data  gathering  program  (FCC  Form  477).  The  new
 program  requires  providers  of  wireless  service  to  file  information  twice  each  year  for  each  state  in  which  they  have  at  least  10,000  subscribers.  Table  12.1  shows  the  number  of  wireless  subscribers  per  state
 as  of  December  31,  2000.
 The  Cellular  Telecommunications  &  Internet  Association  (CTIA)  periodically  publishes  summary  information  on  the  industry;  a  selection  of  which  is  shown  in  Tables  12.2  and  12.3.  CTIA  can
 be  found  on  the  Internet  at  <www.  wow-  com.  com>.
 The  wireless  industry  has  grown  dramatically.  Table  12.2  shows  that  there  were  92,000  subscribers  in  1984,  as  compared  with  over  109  million  subscribers  as  of  December  2000.  As  seen  in
 Table  12.3,  the  industry's  annual  revenues  rose  from  less  than  a  half  billion  in  1984  to  over  $50  billion  in  2000.  The  table  also  shows  that  the  industry  had  nearly  185,000  employees  as  of  December  2000,  as
 compared  to  about  1,000  employees  in  1984;  and  there  was  a  significant  drop  in  the  average  monthly  bill  from  $96.83  at  the  end  of  1987  to  $45.27  as  of  December  2000.
95
 12-  2
96
 (As  of  December  31,  2000)
 State
 Dec  2000
 Reporting
 Carriers  1/
 Dec  2000
 Percent
 Resold  2/
 Subscribers
 Dec  1999
 Subscribers
 June  2000
 Subscribers  Dec
 2000
 Percent  Change
 Dec  1999  -
 Dec  2000
 Alabama  9  1%  1,080,410  1,253,084  1,386,294  28%
 Alaska  *  *  165,221  169,892  *  *
 Arizona  11  7  1,125,321  1,624,668  1,829,695  63
 Arkansas  5  2  719,919  715,467  743,928  3
 California  10  5  8,544,941  12,283,369  12,649,508  48
 Colorado  8  4  1,552,718  1,654,989  1,856,075  20
 Connecticut  6  7  1,077,089  1,136,618  1,277,123  19
 Delaware  6  0  270,848  275,219  371,014  37
 District  of  Columbia  6  10  910,116  333,815  928,962  2
 Florida  9  6  5,158,079  4,983,478  6,369,985  23
 Georgia  11  6  2,538,983  2,687,238  2,739,000  8
 Hawaii  7  0  288,425  454,364  524,291  82
 Idaho  4  23  271,436  296,066  344,564  27
 Illinois  10  10  3,922,482  4,309,660  5,143,767  31
 Indiana  10  6  1,318,975  1,717,378  1,715,074  30
 Iowa  7  62  774,773  975,629  832,106  7
 Kansas  10  4  669,472  724,024  801,293  20
 Kentucky  10  2  911,700  999,544  1,026,334  13
 Louisiana  11  4  1,227,106  1,294,693  1,306,457  6
 Maine  5  32  187,003  283,640  359,786  92
 Maryland  7  6  1,473,494  2,013,058  1,894,251  29
 Massachusetts  6  4  1,892,014  2,228,169  2,649,130  40
 Michigan  11  9  3,512,813  3,423,535  3,488,826  -  1
 Minnesota  13  4  1,550,411  1,595,560  1,851,430  19
 Mississippi  7  0  673,355  509,038  786,577  17
 Missouri  8  8  1,855,452  1,848,775  1,767,411  -  5
 Montana  *  12  *  *  *  *
 Nebraska  5  1  576,296  600,885  659,380  14
 Nevada  6  3  750,335  825,163  684,752  -  9
 New  Hampshire  8  35  280,508  309,263  387,264  38
 New  Jersey  6  2  2,289,181  2,750,024  3,575,130  56
 New  Mexico  5  41  363,827  395,111  443,343  22
 New  York  7  11  4,833,816  5,016,524  5,873,965  22
 North  Carolina  11  13  2,536,068  2,730,178  3,105,811  22
 North  Dakota  *  2  *  *  *  *
 Ohio  12  6  3,237,786  3,278,960  4,015,476  24
 Oklahoma  12  13  826,637  979,513  1,732,994  110
 Oregon  8  11  914,848  1,082,425  1,201,207  31
 Pennsylvania  11  6  2,767,474  3,850,372  4,031,031  46
 Puerto  Rico  4  27  *  1,090,005  926,448  *
 Rhode  Island  6  39  279,304  313,550  355,889  27
 South  Carolina  9  7  1,137,232  1,236,338  1,392,586  22
 South  Dakota  *  3  *  *  *  *
 Tennessee  11  10  1,529,054  1,876,444  1,985,851  30
 Texas  19  8  5,792,453  6,705,423  7,489,180  29
 Utah  8  5  643,824  692,006  750,244  17
 Vermont  *  13  *  *  *  *
 Virgin  Islands  0  NA  *  0  0  NA
 Virginia  12  8  1,860,262  2,447,687  2,450,289  32
 Washington  9  8  1,873,475  2,144,767  2,286,082  22
 West  Virginia  7  23  241,265  347,916  392,384  63
 Wisconsin  11  43  1,525,818  1,342,908  1,698,520  11
 Wyoming  4  1  127,634  *  165,353  *
 Nationwide  77  9%  79,696,083  90,643,058  101,212,054  27%
 NA  -  Not  Available.
 *  Data  withheld  to  maintain  firm  confidentiality.
 1/  Carriers  with  under  10,000  subscribers  in  a  state  were  not  required  to  report.
 2/  Percentage  of  mobile  wireless  subscribers  receiving  their  service  from  a  mobile  wireless  reseller.
 Source:  Industry  Analysis  Division,  Local  Telephone  Competition:  Status  as  of  December  31,  2000.  (December  2000
 data  revised.)
 Table  12.1  Mobile  Wireless  Telephone  Subscribers
 12  -  3
97
 Table  12.2
 Wireless  Telephone  Subscribers
 (As  Reported  by  Cellular  Telecommunications  &  Internet  Assn.)
 Number  Subscribers
 of
 Systems
 1984  December  32  91,600
 1985  June  65  203,600
 December  102  340,213
 1986  June  129  500,000
 December  166  681,825
 1987  June  206  883,778
 December  312  1,230,855
 1988  June  420  1,608,697
 December  517  2,069,441
 1989  June  559  2,691,793
 December  584  3,508,944
 1990  June  592  4,368,686
 December  751  5,283,055
 1991  June  1,029  6,390,053
 December  1,252  7,557,148
 1992  June  1,483  8,892,535
 December  1,506  11,032,753
 1993  June  1,523  13,067,318
 December  1,529  16,009,461
 1994  June  1,550  19,283,506
 December  1,581  24,134,421
 1995  June  1,581  28,154,415
 December  1,627  33,785,661
 1996  June  1,629  38,195,466
 December  1,740  44,042,992
 1997  June  2,005  48,705,553
 December  2,228  55,312,293
 1998  June  2,300  60,831,431
 December  3,073  69,209,321
 1999  June  3,447  76,284,753
 December  3,518  86,047,003
 2000  June  2,306  1/  97,035,925
 December  2,440  109,478,031
 1/  The  drop  in  the  number  of  systems  from  December  1999  to  June  2000  was  due  to  the
 reclassification  of  Nextel's  systems  from  city-  by-  city  to  consolidated  MSAs  and  BTAs.
 Source:  Cellular  Telecommunications  &  Internet  Association  (CTIA).
 12  -  4
98
 Table  12.3
 Wireless  Telephone  Service:  Industry  Survey  Results
 (As  Reported  by  Cellular  Telecommunications  &  Internet  Assn.)
 Survey  Results  Estimates  for  Total  Industry
 Number  Percent  of  Employees  Six-  Month  Average  of  Industry  Revenues  Monthly
 Systems  Surveyed  (Thousands)  Bill  Responding
 1984  December  32  100.0  %  1,404  $178,085
 1985  June  65  100.0  1,697  176,231
 December  101  100.0  2,727  306,197
 1986  June  122  96.0  3,556  360,585
 December  160  95.3  4,334  462,467
 1987  June  192  88.0  5,656  479,514
 December  297  97.2  7,147  672,005  $96.83
 1988  June  409  99.9  9,154  886,075  95.00
 December  496  99.1  11,400  1,073,473  98.02
 1989  June  513  99.1  13,719  1,406,463  85.52
 December  546  98.8  15,927  1,934,132  89.30
 1990  June  554  98.8  18,973  2,126,362  83.94
 December  663  98.2  21,382  2,422,458  80.90
 1991  June  905  96.4  25,545  2,653,505  74.56
 December  1,005  96.5  26,327  3,055,017  72.74
 1992  June  1,129  96.3  30,595  3,633,285  68.51
 December  1,189  93.4  34,348  4,189,441  68.68
 1993  June  1,110  92.2  36,501  4,819,259  67.31
 December  1,287  92.3  39,775  6,072,906  61.48
 1994  June  1,242  92.7  45,606  6,519,030  58.65
 December  1,371  93.2  53,902  7,710,890  56.21
 1995  June  1,330  93.9  60,624  8,740,352  52.42
 December  1,392  93.0  68,165  10,331,614  51.00
 1996  June  1,346  92.2  73,365  11,194,247  48.84
 December  1,422  92.4  84,161  12,440,724  47.70
 1997  June  1,785  94.9  97,039  13,134,551  43.86
 December  2,017  94.9  109,387  14,351,082  42.78
 1998  June  2,026  94.7  113,111  15,286,660  39.88
 December  2,869  93.3  134,754  17,846,515  39.43
 1999  June  3,175  95.6  141,929  19,368,304  40.24
 December  3,216  93.4  155,817  20,650,185  41.24
 2000  June  1,949  1/  91.8  159,645  24,645,365  45.15
 December  2,111  94.7  184,449  27,820,655  45.27
 1/  The  drop  in  the  number  of  systems  from  December  1999  to  June  2000  was  due  to  the  reclassification  of
 Nextel's  systems  from  city-  by-  city  to  consolidated  MSAs  and  BTAs.
 Source:  Cellular  Telecommunications  &  Internet  Association  (CTIA).
 12  -  5
99
 13-  1
 13  Price  Indices  for  Telephone  Services
 The  Bureau  of  Labor  Statistics  (BLS)  collects  a  variety  of  information  on  telephone  service  as  part  of  three  separate  programs  --  the  Consumer  Price  Index  (CPI),  the  Producer  Price  Index  (PPI),
 and  the  Consumer  Expenditure  Survey.  They  can  be  found  on  the  Internet  at  <http://  stats/  bls.  gov/  blshome.  html>.  The  following  material  illustrates  the  range  of  information  available
 from  price  indices.
 1.  Long-  Term  Trends  in  Price  Indices
 A  price  index  for  telephone  service  was  first  published  in  1935.  Since  that  time,  telephone  prices  have  tended  to  increase  at  a  slower  pace  than  most  other  prices.  Table  13.1  shows  long-  term
 changes  in  the  consumer  price  indices  for  all  items,  all  services,  telephone  services,  each  of  the  seven  major  categories  that  currently  constitute  the  overall  CPI,  and  several  services  that  are  often
 characterized  as  being  public  utilities.
 2.  Comprehensive  Price  Indices
 The  CPI  index  of  telephone  services  is  based  on  a  market  basket  intended  to  represent  the  telephone-  related  expenditures  of  a  typical  urban  household.  It  includes  local,  long  distance,  and
 cellular  services.  The  annual  rate  of  change  is  shown  in  Table  13.2  for  the  overall  CPI  (which  measures  the  impact  of  inflation  on  consumers)  and  the  CPI  for  telephone  services.  In  addition,  Table  13.2  shows
 the  gross  domestic  product  chain-  type  price  index  (which  measures  inflation  throughout  the  economy)  prepared  by  the  Bureau  of  Economic  Analysis.
 3.  Price  Indices  for  Local  Service
 The  CPI  index  of  local  telephone  charges  is  based  on  a  broadly  defined  market  basket  that  includes:  monthly  service  charges,  message  unit  charges,  leased  equipment,  installation,  service
 enhancements  (such  as  tone  dialing  and  call  waiting),  taxes,  and  subscriber  line  charges.  In  contrast,  the  PPI  index  of  monthly  residential  rates  is  much  more  narrowly  defined.  It  is  based  only  on  monthly
 service  charges  for  residential  service,  optional  touch-  tone  service,  and  subscriber  line  charges.  It  excludes  taxes,  charges  for  special  services  such  as  call  waiting,  and  all  other  expenditures.  The  annual
 rates  of  change  for  these  indices  of  local  costs  are  presented  in  Table  13.3.
 4.  Price  Indices  for  Long  Distance  Service
 Price  indices  are  available  for  intrastate  toll  and  interstate  toll  services.  These  series  are  also  presented  in  Table  13.3.
100
 13-  2
 5.  Price-  Index  Limitations
 Price  indices  are  less  reliable  when  industries  are  changing  rapidly.  For  example,  in  1992,  long  distance  carriers  began  to  increase  basic  rates  while  greatly  expanding  their  range  of  discount  offerings.
 The  fixed  market  basket  of  toll  calls  measured  for  the  CPI  did  not  fully  reflect  these  discounts.  In  1995,  BLS  made  major  changes  to  the  PPI  telephone  series,  and  there  are  no  data  after  July  1995
 comparable  with  prior  data.  Because  of  these  sorts  of  difficulties,  measures  of  average  revenues  are  sometimes  used  as  alternatives  to  price  indices.
101
 1935  -  2000  1989  -  2000
 CPI  All  Items  3.8  %  3.1  %
 CPI  All  Services  4.3  3.6
 CPI  Telephone  Services  1/  1.4  0.6
 CPI  Major  Categories:
 -  Food  &  Beverages  *  2.7
 -  Housing  *  3.0
 -  Apparel  2.6  0.9
 -  Transportation  3.6  3.4
 -  Medical  Care  5.0  5.2
 -  Recreation  2/  *  1.9
 -  Other  Goods  &  Services  *  5.9
 CPI  Public  Transportation  4.9  4.5
 CPI  Utility  Natural  Gas  Service  3.5  2.8
 CPI  Electricity  1.7  1.0
 CPI  Sewer  &  Water  Maintenance  *  4.5
 CPI  Postage  3.9  3.5
 1/  The  CPI  telephone  service  index  was  revised  in  December  of  1997.
 Source:  Bureau  of  Labor  Statistics.
 *  Series  not  established  until  after  1935.
 2/  Series  not  established  until  1993.  Figure  reflects  annual  change  between  1993  and  2000.
 Table  13.1  Long-  Term  Changes  for  Various  Price  Indices
 (Annual  Rates  of  Change)
 13  -  3
102
 1978  7.4  %  9.0  %  0.9  %
 1979  8.3  13.3  0.7
 1980  9.6  12.5  4.6
 1981  8.3  8.9  11.7
 1982  5.1  3.8  7.2
 1983  3.6  3.8  3.6
 1984  3.5  3.9  9.2
 1985  3.0  3.8  4.7
 1986  2.2  1.1  2.7
 1987  3.1  4.4  -1.3
 1988  3.7  4.4  1.3
 1989  3.6  4.6  -0.3
 1990  4.1  6.1  -0.4
 1991  2.8  3.1  3.5
 1992  2.2  2.9  -0.3
 1993  2.7  2.7  1.8
 1994  2.0  2.7  0.7
 1995  2.1  2.5  1.2
 1996  1.7  3.3  2.1
 1997  1.6  1.7  0.2
 1998  1.3  1.6  0.3  *
 1999  1.6  2.7  0.4
 2000  2.4  3.4  -2.3
 *  CPI  telephone  service  index  was  revised  in  December  of  1997.
 Sources:  Bureau  of  Labor  Statistics  and  Bureau  of  Economic  Analysis.
 Chart  13.1
 Table  13.2
 Annual  Changes  in  Major  Price  Indices
 GDP  Chain-Type
 Price  Index  CPI  -  All  Items
 CPI  -  Telephone
 Services
 CPI  All  Items  and  Telephone  Services
 -20
 -10
 0
 10
 20
 1978  1979  1980  1981  1982  1983  1984  1985  1986  1987  1988  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 Percent
 Change
 from
 Prior
 Year
 CPI  -  All  Items  CPI  -  Telephone  Service
 13  -  4
103
 1978  1.4  %  3.1  %  -0.7  %  0.0  %  1.3  %  0.1  %
 1979  1.7  1.6  -0.8  -0.9  0.1  -0.7
 1980  7.0  7.1  3.4  5.5  -0.6  2.3
 1981  12.6  15.6  14.6  15.9  6.2  8.0
 1982  10.8  9.0  2.7  3.9  4.2  1.7
 1983  3.1  0.2  1.4  0.0  7.4  3.9
 1984  17.2  10.4  -4.3  -5.1  3.6  3.8
 1985  8.9  12.4  -3.7  -3.0  0.6  2.1
 1986  7.1  8.9  -9.4  -10.0  0.3  -3.5
 1987  3.3  2.6  -12.4  -11.8  -3.0  -3.0
 1988  4.5  4.6  -4.2  -2.1  -4.2  -3.8
 1989  0.6  1.9  -1.3  -1.7  -2.6  0.5
 1990  1.0  1.5  -3.7  -0.1  -2.2  -2.2
 1991  5.1  2.1  1.3  -1.3  -1.5  -2.6
 1992  0.5  -0.2  -1.3  1.0  -2.4  1.3
 1993  1.0  0.8  6.5  3.8  0.2  -1.1
 1994  -0.3  0.7  5.4  6.1  -1.0  -1.4
 1995  2.6  2/  0.1  2/  -3.8  2/
 1996  0.9  0.2  3.7  2.5  6.1  0.5
 1997  1.0  0.2  -4.3  3.6  2.8  -4.0
 1998  1.3  -0.1  -0.8  0.0  1.5  -3.3
 1999  2.8  0.2  -0.7  1.2  -1.6  -2.0
 2000  5.5  1.6  -11.2  4.5  -6.0  6.4
 five-  month  weighted  average.
 Chart  13.2
 CPI  PPI
 Source:  Bureau  of  Labor  Statistics.
 1/  CPI  toll  indices  represent  rates  for  households.  Through  1994,  PPI  toll  indices  represent  rate
 CPI  PPI  CPI  PPI
 residential  customers.  changes  for  both  business  and  residential  consumers.  Since  1995,  PPI  indices  reflect  rates  for
 month-  to-  month  variation  in  the  new  PPI  indices,  PPI  price  levels  are  determined  using  a
 Table  13.3
 Annual  Changes  in  Price  Indices  for
 Local  and  Long  Distance  Telephone  Services
 Local  Residential  Service  Toll  Service  1/  Interstate  Intrastate
 2/  The  PPI  telephone  indices  were  revised  in  June  of  1995.  The  series  are  not  comparable.  Due  to
 CPI  Telephone  Service  Price  Indices
 -20
 -10
 0
 10
 20
 1978  1979  1980  1981  1982  1983  1984  1985  1986  1987  1988  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000  Percent
 Change
 from
 Prior
 Year
 CPI  Local  Services  CPI  Interstate  Toll  CPI  Intrastate  Toll
 13  -  5
104
 14-  1
 14  Price  Levels
 1.  Local  Rate  Levels
 The  price  indices  maintained  by  the  Bureau  of  Labor  Statistics  indicate  percentage  changes  in  the  price  of  telephone  services.  BLS  does  not  publish  actual  rate  levels.  Calculations  of  average  rates
 are  based  on  surveys  by  FCC  staff.  These  surveys  use  the  same  sampling  areas  and  weights  used  by  BLS  in  constructing  the  Consumer  Price  Index.
 Table  14.1  presents  average  local  rates  for  residential  customers  in  urban  areas.  In  October  2000,  the  monthly  charge  was  $20.78,  while  the  average  charge  for  connecting  phone  service  was
 $44.10.
 Table  14.2  presents  average  local  rates  for  a  business  with  a  single  phone  line  in  an  urban  area.  In  October  2000,  the  representative  monthly  charge  was  $41.80  while  the  charge  for  connecting  phone
 service  was  $72.29.
 2.  Long  Distance  Rates
 AT&  T's  basic  schedule  prices  are  shown  in  Table  14.3.  Currently  most  calls  are  charged  lower  prices  reflecting  calling  plans  and  volume  discounts.  Calls  requiring  operator  services  are  charged
 higher  rates.  Nevertheless,  only  basic  schedule  rates  were  available  for  many  years  and  are  therefore  available  for  such  direct  comparisons  over  a  long  period  of  time.
 Tables  14.4  and  14.5  contain  measures  of  Average  Revenue  per  Minute  (APRM)  for  long  distance  calls.  Estimates  of  APRM  are  often  used  interchangeably  with  estimates  of  the  average  price.
 From  1984  to  1999,  the  cost  of  long  distance  calling  dropped  from  32  cents  per  minute  to  14  cents  per  minute.  The  average  price  of  14  cents  per  minute  represents  a  mix  of  international  calling  (56  cents  per
 minute)  and  domestic  interstate  calling  (11  cents  per  minute).  The  decline  in  prices  since  1984  is  more  than  70%  after  adjusting  for  the  impact  of  inflation.
105
 14-  2
106
 Table  14.1
 Average  Residential  Rates  for  Local  Service  in  Urban  Areas,  1986-  2000
 (as  of  October  15,  1986-  2000)
 1986  1987  1988  1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 Representative  Monthly  Charge  1/  $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
 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  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  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
 Total  Monthly  Charge  $17.70  $18.18  $18.11  $19.05  $19.24  $19.77  $19.72  $19.95  $19.81  $20.01  $19.95  $19.88  $19.76  $19.93  $20.78
 Basic  Connection  Charge  $45.63  $44.04  $42.94  $43.06  $43.06  $42.00  $41.50  $41.38  $41.28  $40.91  $41.11  $41.04  $41.24  $41.26  $41.45
 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
 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
 Total  Connection  Charge  $49.25  $47.55  $46.60  $47.26  $47.15  $45.57  $45.01  $44.92  $44.46  $43.58  $43.70  $43.67  $43.74  $43.95  $44.10
 Additional  Charge  if  Drop  Line  and
 Connection  Block  Needed  NA  NA  $6.04  $6.07  $6.89  $6.89  $6.50  $7.29  $6.74  $5.90  $5.74  $5.65  $5.64  $5.86  $5.84
 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
 NA  -  Not  Available.
 1/  Rate  is  based  upon  flat-  rate  service  where  available,  and  measured/  message  service  with  100  five-  minute,  same-  zone  business-  day  calls  elsewhere.
 Source:  Urban  Rates  Survey.
 14  -  3
107
 Table  14.2  Average  Local  Rates  for  Businesses  with  a  Single  Line  in  Urban  Areas
 1989  1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 Monthly  Representative  Service  Charge  1/  $31.06  $30.97  $32.29  $32.45  $32.70  $32.25  $32.48  $32.58  $32.76  $32.44  $32.41  $32.18
 Subscriber  Line  Charges  3.55  3.57  3.57  3.56  3.57  3.57  3.57  3.54  3.54  3.54  3.52  4.39
 Touch-  Tone  Service  2.43  2.35  1.84  1.71  1.67  1.21  0.97  0.82  0.38  0.32  0.25  0.19
 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
 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
 Monthly  Charge  for  Flat-  Rate  Service  $33.04  $33.29  $34.12  $34.06  $34.85  $34.39  $34.45  $34.42  $34.68  $34.39  $33.73  $33.45
 Subscriber  Line  Charges  3.65  3.69  3.70  3.70  3.70  3.70  3.69  3.61  3.61  3.56  3.50  4.35
 Touch-  Tone  Service  2.12  2.11  1.87  1.84  1.76  1.12  1.00  0.89  0.53  0.49  0.47  0.43
 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
 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
 Number  of  Sample  Cities  with  Flat-  Rate  Service  59  56  54  54  54  53  53  53  53  54  54  54
 Monthly  Charge  for  Measured/  Message  Service  $16.18  $16.17  $16.76  $16.55  $16.60  $16.74  $17.06  $17.26  $17.28  $17.16  $17.06  $16.92
 200  Five-  Minute  Business-  Day  Same-  Zone  Calls  16.11  16.19  16.70  17.23  17.57  17.38  17.15  17.10  17.18  17.15  17.24  17.63
 Subscriber  Line  Charges  3.54  3.55  3.55  3.54  3.55  3.55  3.54  3.51  3.51  3.53  3.52  4.39
 Touch-  Tone  Service  2.48  2.39  1.87  1.73  1.68  1.22  0.98  0.83  0.39  0.33  0.25  0.20
 Taxes,  911,  and  Other  Charges  4.41  4.53  4.56  4.77  4.86  4.83  5.01  5.13  5.22  5.19  5.28  5.32
 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
 Number  of  Sample  Cities  with  Measured/  Message  Service  83  83  84  84  84  87  87  86  85  85  85  85
 Cost  of  a  Five-  Minute  Business-  Day  Same-  Zone  Call  $0.09  $0.09  $0.09  $0.09  $0.09  $0.09  $0.09  $0.09  $0.09  $0.09  $0.09  $0.10
 Basic  Connection  Charge  $71.05  $71.36  $72.75  $72.55  $71.41  $69.88  $67.87  $68.47  $68.67  $65.83  $67.87  $67.77
 Additional  Connection  Charge  for  Touch-  Tone  Service  1.70  1.89  1.13  1.19  1.17  0.92  0.27  0.17  0.17  0.12  0.12  0.12
 Tax  4.06  4.15  4.32  4.33  4.25  4.13  4.17  4.20  4.45  4.13  4.53  4.40
 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
 Additional  Charge  if  Drop  Line  and  Connection  Block  Needed  $5.92  $7.87  $6.90  $6.83  $6.64  $6.49  $7.28  $6.98  $6.54  $6.54  $6.65  $6.62
 Lowest-  Cost  Inside  Wiring  Maintenance  Plan  $1.78  $1.91  $2.05  $2.03  $2.08  $2.26  $2.39  $2.63  $2.84  $3.04  $3.53  $3.92
 1/  Rate  is  based  upon  flat-  rate  service  where  available,  and  measured/  message  service  with  200  five-  minute,  same-  zone  business-  day  calls  elsewhere.
 Source:  Urban  Rates  Survey.
 (As  of  October  15,  1989-  2000)
 14  -  4
108
 Residential  1/  Business  2/  Calling  Distance  Percentage  Percentage
 (In  Airline  Miles,  Change  Change
 Rate  Center  to
 Rate  Center)
 1  -  10  Day  $0.96  $1.50  56.3  %  $0.96  $2.69  180.2  %
 Evening  0.57  1.25  119.3  0.57  2.69  371.9
 Night  &  Weekend  0.38  0.80  110.5  0.38  2.69  607.9
 11  -  22  Day  1.28  1.50  17.2  1.28  2.69  110.2
 Evening  0.76  1.25  64.5  0.76  2.69  253.9
 Night  &  Weekend  0.51  0.80  56.9  0.51  2.69  427.5
 23  -  55  Day  1.60  1.50  (6.3)  1.60  2.69  68.1
 Evening  0.96  1.25  30.2  0.96  2.69  180.2
 Night  &  Weekend  0.64  0.80  25.0  0.64  2.69  320.3
 56  -  124  Day  2.05  1.50  (26.8)  2.05  2.69  31.2
 Evening  1.22  1.25  2.5  1.22  2.69  120.5
 Night  &  Weekend  0.82  0.80  (2.4)  0.82  2.69  228.0
 125  -  292  Day  2.14  1.50  (29.9)  2.14  2.69  25.7
 Evening  1.28  1.25  (2.3)  1.28  2.69  110.2
 Night  &  Weekend  0.85  0.80  (5.9)  0.85  2.69  216.5
 293  -  430  Day  2.27  1.50  (33.9)  2.27  2.69  18.5
 Evening  1.36  1.25  (8.1)  1.36  2.69  97.8
 Night  &  Weekend  0.90  0.80  (11.1)  0.90  2.69  198.9
 431  -  925  Day  2.34  1.50  (35.9)  2.34  2.69  15.0
 Evening  1.40  1.25  (10.7)  1.40  2.69  92.1
 Night  &  Weekend  0.93  0.80  (14.0)  0.93  2.69  189.2
 926  -  1910  Day  2.40  1.50  (37.5)  2.40  2.69  12.1
 Evening  1.44  1.25  (13.2)  1.44  2.69  86.8
 Night  &  Weekend  0.96  0.80  (16.7)  0.96  2.69  180.2
 1911  -  3000  Day  2.70  1.50  (44.4)  2.70  2.69  (0.4)
 Evening  1.62  1.25  (22.8)  1.62  2.69  66.0
 Night  &  Weekend  1.08  0.80  (25.9)  1.08  2.69  149.1
 3001  -  4250  Day  2.80  1.50  (46.4)  2.80  2.69  (3.9)
 Evening  1.68  1.25  (25.6)  1.68  2.69  60.1
 Night  &  Weekend  1.12  0.80  (28.6)  1.12  2.69  140.2
 4251  -  5750  Day  2.91  1.50  (48.5)  2.91  2.69  (7.6)
 Evening  1.74  1.25  (28.2)  1.74  2.69  54.6
 Night  &  Weekend  1.16  0.80  (31.0)  1.16  2.69  131.9
 mileage  bands  and  implements  weekday-  peak  and  off-  peak  time  bands  and  a  weekend  band.  The  new  rates  are  shown
 in  the  old  rate  structure  for  the  purposes  of  comparison.
 time-  of-  day,  and  day-  of-  week  bands.  The  new  rates  are  shown  in  the  old  rate  structure  for  the  purposes  of  comparison.
 Source:  Tariffs  on  file  at  FCC.
 Table  14.3
 Changes  in  the  Price  of  Directly  Dialed  Five-  Minute  Long  Distance  Calls
 (AT&  T  Basic  Rate  Schedules)
 January  July  January  July
 1/  AT&  T  initiated  a  new  rate  structure  for  residential  customers  on  November  8,  1997.  The  new  rate  structure  eliminates
 2/  AT&  T  initiated  a  new  rate  structure  for  business  customers  on  November  5,  1997.  The  rate  structure  eliminates  mileage,
 1984  2001  1984  2001
 14  -  5
109
 Table  14.4
 Average  Revenue  per  Minute
 AT&  T  All  Carriers
 All  Interstate  All  Interstate
 and  International  and  International  International  All  Interstate
 Switched  Services  Switched  Services  Switched  Services  Switched  Services
 1/
 1984  $0.32
 1985  0.31
 1986  0.28
 1987  0.25
 1988  0.23
 1989  0.22
 1990  0.20
 1991  0.20
 1992  0.19  $0.19  $1.04  $0.15
 1993  0.19  0.19  1.03  0.15
 1994  0.18  0.18  0.96  0.14
 1995  NA  0.17  0.92  0.13
 1996  NA  0.16  0.78  0.12
 1997  NA  0.15  0.71  0.11
 1998  NA  0.14  0.68  0.11
 1999  NA  0.14  0.56  0.11
 NA  -  Not  Available
 Note:  Data  for  some  prior  years  have  been  revised.
 1/  Billed  revenue  per  minute  for  international  service  differs  in  Table  6.1  and  Table  14.4.  Data  in
 Table  6.1  are  based  on  revenues  billed  by  underlying  carriers.  Data  for  Table  14.4  are  based  on  staff  estimates  of  end-  user  revenues.
 Sources:  AT&  T  information  provided  by  AT&  T.  Other  estimates  from  Industry  Analysis  Division,
 Telecommunications  Industry  Revenues.
 14  -  6
110
 Table  14.5
 Indicators  of  Long  Distance  Prices
 Restated  in  1999  Dollars
 Average  Revenue
 per  Minute  for
 Interstate  and
 International  Calls
 1/
 AT&  T  Charge  per
 Minute  for  a
 10-  Minute  Day  Rate
 200-  Mile  Call  (Basic
 Rates)
 Consumer  Price
 Index:  All  Goods
 and  Services
 (1982-  1984  =  100)
 Revenue  per
 Minute
 Basic  Rate
 200-  Mile
 Call
 Charge  per
 Minute
 1930  $0.27  $0.35  16.7  $2.74  $3.49
 1931  0.27  0.35  15.2  2.95  3.84
 1932  0.26  0.35  13.7  3.19  4.26
 1933  0.28  0.35  13.0  3.53  4.49
 1934  0.27  0.35  13.4  3.38  4.35
 1935  0.27  0.35  13.7  3.23  4.26
 1936  0.25  0.35  13.9  3.01  4.19
 1937  0.22  0.35  14.4  2.51  4.05
 1938  0.21  0.26  14.1  2.53  3.01
 1939  0.22  0.26  13.9  2.59  3.06
 1940  0.21  0.26  14.0  2.50  3.03
 1941  0.21  0.26  14.7  2.35  2.89
 1942  0.22  0.26  16.3  2.21  2.61
 1943  0.21  0.22  17.3  2.03  2.12
 1944  0.22  0.22  17.6  2.04  2.08
 1945  0.21  0.22  18.0  1.96  2.04
 1946  0.20  0.22  19.5  1.69  1.88
 1947  0.19  0.22  22.3  1.43  1.64
 1948  0.19  0.22  24.1  1.29  1.52
 1949  0.19  0.22  23.8  1.32  1.54
 1950  0.19  0.22  24.1  1.33  1.52
 1951  0.20  0.22  26.0  1.29  1.41
 1952  0.20  0.22  26.5  1.27  1.38
 1953  0.21  0.22  26.7  1.30  1.37
 1954  0.22  0.22  26.9  1.38  1.36
 1955  0.23  0.22  26.8  1.43  1.37
 1956  0.23  0.22  27.2  1.43  1.35
 1957  0.24  0.22  28.1  1.41  1.30
 1958  0.24  0.22  28.9  1.38  1.27
 1959  0.24  0.22  29.1  1.38  1.26
 1960  0.24  0.22  29.6  1.36  1.24
 1961  0.25  0.22  29.9  1.39  1.23
 1962  0.25  0.22  30.2  1.40  1.21
 1963  0.25  0.22  30.6  1.35  1.20
 1964  0.25  0.22  31.0  1.34  1.18
 1965  0.24  0.22  31.5  1.27  1.16
 1966  0.24  0.22  32.4  1.25  1.13
 1967  0.24  0.22  33.4  1.21  1.10
 1968  0.24  0.22  34.8  1.13  1.05
 1969  0.24  0.22  36.7  1.09  1.00
 1/  Estimates  for  1930  through  1981  are  based  on  information  in  AT&  T  Long  Lines  Statistics,  1930-  1963,
 1946-  1970,  and  1960-  1981,  and  appear  to  represent  data  for  the  conterminous  U.  S.  only.  Data  prior  to  1946
 may  not  be  comparable.  Data  for  1982  and  1983  were  estimated  using  BLS  price  index  changes.  Data  for
 1984  through  1991  were  supplied  by  AT&  T.  Starting  with  1992,  data  are  from  Industry  Analysis  Division,
 Telecommunications  Industry  Revenue.
 14  -  7
111
 Table  14.5
 Indicators  of  Long  Distance  Prices  -  Continued
 Restated  in  1999  Dollars
 Average  Revenue
 per  Minute  for
 Interstate  and
 International  Calls
 1/
 AT&  T  Charge  per
 Minute  for  a
 10-  Minute  Day  Rate
 200-  Mile  Call  (Basic
 Rates)
 Consumer  Price
 Index:  All  Goods
 and  Services
 (1982-  1984  =  100)
 Revenue  per
 Minute
 Basic  Rate
 200-  Mile
 Call
 Charge  per
 Minute
 1970  $0.23  $0.22  38.8  $0.99  $0.92
 1971  0.25  0.21  40.5  1.01  0.86
 1972  0.24  0.23  41.8  0.97  0.93
 1973  0.25  0.23  44.4  0.95  0.88
 1974  0.26  0.25  49.3  0.87  0.84
 1975  0.27  0.25  53.8  0.85  0.77
 1976  0.29  0.32  56.9  0.83  0.92
 1977  0.28  0.33  60.6  0.78  0.89
 1978  0.29  0.33  65.2  0.73  0.85
 1979  0.29  0.33  72.6  0.67  0.77
 1980  0.30  0.33  82.4  0.61  0.68
 1981  0.33  0.35  90.9  0.60  0.65
 1982  0.34  0.41  96.5  0.59  0.70
 1983  0.35  0.41  99.6  0.58  0.68
 1984  0.32  0.41  103.9  0.52  0.66
 1985  0.31  0.39  107.6  0.48  0.60
 1986  0.28  0.31  109.6  0.43  0.48
 1987  0.25  0.27  113.6  0.36  0.39
 1988  0.23  0.25  118.3  0.33  0.35
 1989  0.22  0.23  124.0  0.29  0.31
 1990  0.20  0.22  130.7  0.26  0.27
 1991  0.20  0.21  136.2  0.24  0.26
 1992  0.19  0.21  140.3  0.23  0.25
 1993  0.19  0.22  144.5  0.22  0.25
 1994  0.18  0.24  148.2  0.20  0.27
 1995  0.17  0.27  152.4  0.19  0.30
 1996  0.16  0.28  156.9  0.17  0.30
 1997  0.15  0.29  160.5  0.15  0.30
 1998  0.14  0.28  163.0  0.15  0.29
 1999  0.14  0.26  166.6  0.14  0.26
 1/  Estimates  for  1930  through  1981  are  based  on  information  in  AT&  T  Long  Lines  Statistics,  1930-  1963,  1946-  1970,  and  1960-  1981,  and  appear  to  represent  data  for  the  conterminous  U.  S.  only.  Data  prior  to  1946
 may  not  be  comparable.  Data  for  1982  and  1983  were  estimated  using  BLS  price  index  changes.  Data  for  1984  through  1991  were  supplied  by  AT&  T.  Starting  with  1992,  data  are  from  Industry  Analysis  Division,
 Telecommunications  Industry  Revenue.
 14  -  8
112
 15-  1
 15  Residential  Telephone  Usage
 Bill  harvesting  data  collected  by  TNS  Telecoms  (TNS)  provide  information  on  phone  usage  in  the  long  distance  residential  market,  as  opposed  to  the  overall  market  for  toll  service.  TNS,  an
 economic  research  and  consulting  firm  located  in  Jenkinstown,  Pennsylvania,  conducts  nationwide  surveys  of  residential  telephone  usage  and  household  expenditures  on  telephone  service.  These  surveys,
 in  which  households  are  asked  to  mail  copies  of  their  phone  bills  for  one  month  to  TNS,  are  called  bill  harvesting  studies.  The  company  has  donated  databases  containing  information  on  residential  phone
 usage  to  the  Commission.
 The  bill  harvesting  data  reflect  calls  itemized  on  residential  telephone  bills.  Thus,  800  and  800-  like  calls  made  from  the  residence  are  not  included,  nor  are  collect  calls  made  from  the  residence.  In
 contrast,  800  and  800-  like  calls  received,  and  shown  on  the  household  monthly  bill,  are  included,  as  are  collect  calls  received.
 Table  15.1  shows  the  percentage  of  residential  long  distance  telephone  usage  that  is  intrastate,  interstate  and  international.  In  2000,  37%  of  residential  toll  phone  calls  were  interstate  as  opposed  to
 48%  of  minutes.  Table  15.2  shows  the  average  number  of  minutes  on  household  telephone  bills  from  1995-  2000.
 Table  15.3  shows  the  distribution  of  residential  long  distance  calls  by  call  duration.  The  average  interstate  residential  call  lasts  ten  minutes,  although  about  one-  third  of  interstate  toll  calls  last  one  minute
 or  less.  Tables  15.4  and  15.5  show  the  duration  and  length  of  haul  of  residential  long  distance  calls.  The  average  distance  of  an  interstate  call  is  708  miles,  as  opposed  to  54  miles  for  an  intrastate  call.
 Table  15.6  shows  the  percentage  of  residential  long  distance  minutes  by  day  of  week.  In  the  2000  survey,  34%  of  residential  minutes  were  on  weekdays  between  7:  00  a.  m.  and  7:  00  p.  m.,  and
 36%  of  residential  minutes  were  on  weekends.
113
 15-  2
114
 Type  1995  1996  1997  1998  1999  2000
 Calls  IntraLATA-  Intrastate  41  %  40  %  38  %  38  %  39  %  39  %
 InterLATA-  Intrastate  19  18  19  19  18  17  IntraLATA-  Interstate  1  1  1  1  1  1
 InterLATA-  Interstate  37  35  37  36  37  36  International  1  1  1  1  1  1
 Others  1/  2  5  5  4  4  5  Total  Calls  in  Sample  197,787  165,465  483,685  578,850  474,408  538,337
 Minutes  IntraLATA-  Intrastate  28  %  29  %  27  %  27  %  28  %  29  %
 InterLATA-  Intrastate  18  18  18  18  17  17  IntraLATA-  Interstate  1  1  1  1  1  1
 InterLATA-  Interstate  50  47  49  49  49  47  International  2  1  1  1  2  2
 Others  1/  1  4  4  3  3  5  Total  Minutes  in  Sample  1,493,674  1,210,675  3,673,315  4,330,888  3,544,905  4,030,602
 Note:  Figures  may  not  add  due  to  rounding.
 1/  Toll-  free  calls  billed  to  residential  customers,  900  calls  and  calls  that  cannot  be  classified.
 Table  15.2
 Average  Residential  Monthly  Toll  Calling
 Type  1995  1998  1999  2000
 IntraLATA-  Intrastate  40  41  41  40  36  33  InterLATA-  Intrastate  26  26  27  26  23  19
 IntraLATA-  Interstate  1  1  1  1  1  1  InterLATA-  Interstate  71  67  73  71  65  55
 International  3  1  2  2  2  2  Others  1/  1  6  6  5  4  5
 All  Types  143  143  149  144  131  116
 Sample  Size:  26,999  households.
 Note:  Figures  may  not  add  due  to  rounding.
 1/  Toll-  free  calls  billed  to  residential  customers,  900  calls  and  calls  that  cannot  be  classified.
 Distribution  of  Residential  Toll  Calls  and  Minutes
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and  Associates),  Telecoms  Market
 MonitorTM.
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and  Associates),  Telecoms  Market
 MonitorTM.
 Table  15.1
 1996  1997
 15  -  3
115
 Duration  of  Residential  Long  Distance  Calls:  2000  1/
 Duration  of  Call  Intrastate  Interstate
 (In  Minutes)
 1  41.6  %  32.8  %  38.0  %
 2  13.8  9.6  12.1
 3  8.2  7.1  7.8
 4  5.1  4.1  4.7
 5  3.8  3.4  3.6
 6  3.0  3.0  3.0
 7  2.4  2.6  2.5
 8  2.1  2.4  2.2
 9  1.7  2.1  1.9
 10  3.1  4.0  3.5
 11-  15  5.3  8.2  6.5
 16-  20  3.2  5.7  4.2
 21-  25  2.0  4.1  2.8
 26-  30  1.3  2.9  1.9
 31-  45  2.0  4.6  3.1
 46-  60  0.7  1.8  1.2
 Greater  Than  60  0.6  1.6  1.0
 Average  Duration  6.1  10.0  7.7
 Median  Duration  2.0  4.0  2.0
 All  Calls
 1/  Direct-  dial  calls  carried  by  long  distance  carriers  and  local  exchange  carriers..  Includes
 only  domestic  calls.
 Table  15.3
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and
 Associates),  Telecoms  Market  MonitorTM.
 15  -  4
116
 Duration  (in  Minutes)  Length  of  Haul  (in  Miles)
 Average  Median  Average  Median
 1995  6.0  2.0  53  26
 1996  6.0  2.0  55  28
 1997  6.2  2.0  56  28
 1998  6.0  2.0  55  29
 1999  6.0  2.0  54  29
 2000  6.1  2.0  54  28
 Duration  (in  Minutes)  Length  of  Haul  (in  Miles)
 Average  Median  Average  Median
 1995  10.6  4.0  689  507
 1996  10.0  4.0  670  473
 1997  10.3  4.0  695  480
 1998  10.3  4.0  691  493
 1999  10.0  3.9  702  507
 2000  10.0  4.0  708  525
 Duration  and  Length  of  Haul  of  Intrastate  Toll  Calls  1/  Table  15.4
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and  Associates),
 Telecoms  Market  MonitorTM.
 1/  Direct-  dial  calls  carried  by  long  distance  carriers  and  local  exchange  carriers.  Includes  only
 domestic  calls.
 Table  15.5  Duration  and  Length  of  Haul  of  Interstate  Toll  Calls  1/
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and  Associates),
 Telecoms  Market  MonitorTM.
 1/  Direct-  dial  calls  carried  by  long  distance  carriers  and  local  exchange  carriers.  Includes  only
 domestic  calls.
 15  -  5
117
 Distribution  of  Residential  Long  Distance  Minutes  by  Day  of  Week  in  2000  1/
 Day  7:  00  AM-  6:  59  PM  7:  00  PM-  6:  59  AM  Total
 Monday  7.2  %  6.2  %  13.4  %
 Tuesday  6.8  6.2  13.0
 Wednesday  6.5  6.1  12.6
 Thursday  6.9  6.2  13.2
 Friday  6.9  4.8  11.7
 Saturday  10.4  4.5  14.9
 Sunday  13.5  7.7  21.2
 Total  58.2  %  41.8  %  100.0  %
 Source:  Calculated  by  IAD  staff  with  data  provided  by  TNS  Telecoms  (formerly  PNR  and  Associates),  Telecoms  Market  MonitorTM
 1/  Direct-  dial  calls  carried  by  long  distance  carriers  and  local  exchange  carriers.  Includes  only  interLATA  calls.
 Table  15.6
 15  -  6
118
 16-  1
 16  Revenues
 Since  1993,  all  carriers  with  interstate  revenues  have  been  required  to  file  an  annual  Telecommunications  Relay  Service  (TRS)  Fund  Worksheet.  Because  revenues  derived  from  providing
 access  to  the  interstate  network  are  considered  to  be  interstate,  virtually  all  carriers  are  required  to  file  information.  Starting  in  1997,  larger  carriers  were  required  to  file  universal  service  fund  (USF)
 worksheets,  which  contain  similar  information  but  with  breakouts  for  revenues  from  service  provided  for  resale  and  for  service  provided  to  end  users.  For  year  ended  1999,  the  TRS  and  USF  filing  information
 were  both  combined  on  the  Form  499-  A,  Telecommunications  Reporting  Worksheet.  Also,  reported  on  the  Form  499-  A  are  data  pertaining  to  North  American  Numbering  Planning  Administration  and
 local  number  portability  programs.
 Table  16.1  shows  the  major  components  of  telecommunications  revenues  for  1999:  carriers  carrier  revenues  and  end-  user  revenues  for  local,  wireless,  and  toll  service.  Table  16.2  shows  how
 local,  wireless,  and  toll  revenues  have  changed  over  time.  The  table  highlights  how  some  significant  changes  in  the  revenue  levels  from  1996  to  1997  are  due  to  major  reporting  changes.  The  number  of
 carriers  filing  the  Form  499-  A  for  1999  and  for  1992  -  1998  those  paying  into  the  TRS  fund  by  principal  type  of  business  are  shown  in  Table  16.3.  Table  16.4  contains  revenues  for  1992  -  1999  by
 type  of  carrier.  Additional  revenue  detail  can  be  found  in  the  latest  Monitoring  and  Telecommunications  Industry  Revenues  reports.
 The  publication  Carrier  Locator:  Interstate  Service  Providers  lists  4,822  carriers  that  filed  a  Form  499-  A  worksheet  in  2000.  It  also  contains  an  address  and  contact  telephone  number  for  each
 carrier.  (The  2000  worksheets  contained  data  for  1999.)
 Table  16.5  provides  estimates  of  industry  telephone  revenues  by  state  for  1995-  1999.  Table  16.5  also  provides  estimates  for  end-  user  and  carrier's  carrier  revenues  for  1999.  Nationwide
 telephone  revenues  from  Telecommunications  Industry  Revenue:  1999  is  allocated  to  each  state  using  data  from  the  Statistics  of  Communications  Common  Carriers,  the  Statistical  Abstract  of  the
 United  States,  and  from  Local  Telephone  Competition.
119
 16-  2
120
 Table  16.1
 Telecommunications  Industry  Revenues:  1999  1/
 (Dollar  Amounts  Shown  in  Millions)
 Carrier's  End-  User  Total
 Carrier  Revenues  2/  Revenues
 Revenues  2/
 Local  Service  $33,156  $78,608  $111,764
 Wireless  Service  4,652  43,843  48,495
 Toll  Service  14,934  93,311  108,246
 Total  52,742  215,763  268,505
 Service  Reported  as:
 Intrastate  22,293  134,919  157,212
 Interstate  and  International  3/  30,449  80,844  111,293
 Total  $52,742  $215,763  $268,505
 Note:  Detail  may  not  add  to  totals  due  to  rounding.
 1/  Data  include  revenues  for  de  minimis  filers  as  well  as  for  other  carriers  who  are  exempt  from  universal
 service  contribution  requirements.
 2/  Carrier's  carrier  revenues  are  reported  on  the  Form  499-  A  as  sales  to  other  universal  service  contributors
 for  resale.  This  includes,  for  example,  access  services  that  local  exchange  carriers  provide  to  toll  carriers.
 Sales  to  de  minimis  carriers,  customers,  governments,  non-  profits,  and  any  other  non-  contributors  are  treated
 as  end-  user  revenues.  Filers  contribute  to  the  universal  service  funding  mechanisms  based  on  their
 end-  user  revenues.
 3/  Revenues  from  calls  that  both  originate  and  terminate  in  foreign  points  are  reported  as  end-  user  revenues,
 but  are  not  included  in  the  universal  service  contribution  base.
 Source:  Industry  Analysis  Division,  Telecommunications  Industry  Revenues.
 16  -  3
121
 Table  16.2
 Telecommunications  Revenues  Reported  by  Type  of  Service  (Dollar  Amounts  Shown  in  Millions)
 TRS  Data  Universal  Service  &  Form  499-  A
 TRS  Data  Data
 Telecommunications  Revenues  1992  1993  1994  1995  1996  1997  1998  1999
 Local  Exchange  $39,235  $40,176  $42,245  $45,194  $48,717  $53,771  $59,245  $62,840
 Pay  Telephone  1/  2,182  2,536  2,218
 Local  Private  Line  2/  1,049  1,088  1,138  1,226  1,616  8,282  10,403  12,914
 Other  Local  3/  7,687  8,002  8,302  10,428  10,543  2,847  2,179  4,601
 Subscriber  Line  Charges  2/  8,327  11,052  10,826
 Access  2/  29,353  30,832  32,759  33,911  35,641  21,423  18,449  18,105
 Universal  Service  Surcharges  on  Local
 Service  Bills  4/  103  260
 Additional  Revenues  from  TRS
 Worksheets  595  595
 Total  Local  Service  Revenues  77,324  80,098  84,443  90,759  96,516  97,426  104,563  111,764
 Wireless  Service  7,285  10,237  14,293  18,759  26,049  32,760  36,240  48,117
 Universal  Service  Surcharges  on  Wireless
 Service  Bills  4/  345  379
 Additional  Revenues  from  TRS
 Worksheets  189  189
 Total  Wireless  Service  Revenues  7,285  10,237  14,293  18,759  26,049  32,950  36,775  48,495
 Operator  1/  9,465  10,772  10,539  11,170  10,975  12,002  12,205  10,049
 Non-  Operator  Switched  Toll  54,448  60,591  61,468  65,217  73,751  72,059  74,168  78,389
 Long  Distance  Private  Line  7,783  8,067  9,043  9,719  10,665  10,504  11,952  13,169
 Other  Long  Distance  4,048  3,095  3,428  3,523  4,299  4,695  3,386  3,656
 Universal  Service  Surcharges  on  Toll
 Service  Bills  4/  1,810  2,983
 Additional  Revenues  from  TRS
 Worksheets  1,532  1,532
 Total  Toll  Service  Revenues  75,744  82,525  84,478  89,629  99,691  100,793  105,055  108,246
 Non-  Telecommunications  Revenues
 Formerly  Reported  as  Other
 Local  and  Wireless  Revenues  3/  (6,944)  (7,518)  (8,324)  (9,071)  (10,474)
 Total  Telecommunications  Revenues  3/  153,409  165,342  174,890  190,076  211,782  231,168  246,392  268,505
 Non-  Telecommunications  Revenues  3/  6,944  7,518  8,324  9,071  10,474  25,633  27,944  33,144
 Total  Reported  Revenues  160,353  172,860  183,214  199,147  222,256  256,801  272,019  301,648
 Service  Reported  as:
 Intrastate  3/  82,379  89,409  94,278  103,852  117,375  133,654  142,108  157,212
 Interstate  and  International  71,030  75,933  80,611  86,224  94,407  97,514  104,284  111,293
 Total  Telecommunications  Revenues  3/  $153,409  $165,342  $174,890  $190,076  $211,782  $231,168  $246,392  $268,505
 Note:  Some  data  for  prior  years  have  been  revised.  Detail  may  not  add  to  totals  due  to  rounding.
 1/  TRS  filers  generally  reported  pay  telephone  revenues  as  local  service  revenues,  access  revenues,  or  operator  toll  revenues.  The  Universal  Service  and  Form  499-  A
 worksheets  contain  a  separate  category  for  payphone  coin  revenues.  Starting  in  1997,  payphone  revenues  includes  payphone  compensation  received  from  toll  carriers.
 2/  TRS  Worksheet  filers  generally  reported  special  access  revenues  as  access  revenues.  Reporting  changes  implemented  with  the  Universal  Service  Worksheet  explain
 the  increase  in  local  private  line  revenues  and  the  fall  in  access  revenues  shown  for  1997.  TRS  Worksheet  filers  included  subscriber  line  charges  with  other
 access  charges.  Universal  Service  Worksheet  filers  report  subscriber  line  charges  in  a  separate  category.  The  increase  from  1997  to  1998  represents  PICCs  levied
 by  ILECs  as  well  as  $1.2  billion  of  PICC  pass-  through  charges  levied  by  toll  carriers.
 3/  Significant  amounts  of  enhanced  service,  billing  and  collection,  CPE,  and  other  non-  telecommunications  revenues  were  reported  in  the  TRS  mobile  and  other  local
 service  categories  through  1996.  Universal  Service  Worksheet  filers  report  these  revenues  in  the  non-  telecommunications  category.  For  prior  years,  the  amounts  of
 non-  telecommunications  revenues  reported  as  mobile  and  other  local  revenues  were  estimated  as  70%  of  the  amounts  that  Tier  1  ILECs  reported  in  ARMIS  as
 miscellaneous  and  nonregulated  revenues  (currently  account  5200  +  account  5280)  and  10%  of  amounts  reported  as  mobile  service  revenues.  "Tier  1"  refers  to  the
 largest  ILECs,  currently  those  with  more  than  $117  million  in  revenues.
 4/  Charges  on  end-  user  bills  identified  as  recovering  state  or  federal  universal  service  contributions  are  reported  separately  from  local,  wireless  and  toll  revenues.  Reported
 amounts  are  apportioned  between  local,  wireless,  and  toll  service  based  on  the  proportions  of  local,  wireless,  and  toll  intrastate  and  interstate  revenues  by  type  of  carrier.
 Sources:  Data  for  1992  through  1996  summarized  from  FCC  Form  431  TRS  worksheets.  Data  for  1997  and  1998  primarily  based  on  FCC  Form  457,  Universal  Service
 worksheets,  with  data  from  1997  TRS  worksheets  used  for  service  providers  not  required  to  file  a  Universal  Service  Worksheet.  Data  for  1999  summarized
 from  FCC  Form  499-  A  Telecommunications  Reporting  worksheets,  which  replaced  both  the  Form  431  and  the  Form  457.
 16  -  4
122
 Table  16.3
 Number  of  Interstate  Telecommunications  Providers  By  Principal  Type  of  Business
 Service  Provider  Category  1/  1992  1993  1994  1995  1996  1997  1998  1999
 Incumbent  Local  Exchange  Carriers  (ILECs)  2/  1,281  1,347  1,347  1,376  1,410  1,348  1,335
 Competitive  Access  Providers  (CAPs)
 and  Competitive  Local  Exchange
 Carriers  (CLECs)  20  30  57  94  129  212  349
 Local  Resellers  8  11  54  87
 Other  Local  Exchange  Carriers  17  7  10  60
 Total:  Competitors  of  ILECs  20  30  57  119  147  276  496
 Total:  Fixed  Local  Service  Providers  1,301  1,377  1,404  1,495  1,557  1,624  1,831
 Payphone  Providers  163  197  271  533  509  615  758
 Wireless  Telephony  Including  Cellular,
 Personal  Communications  Service
 (PCS)  and  SMR  Telephony  Carriers  798  790  792  853  732  808  806
 Paging  &  Messaging  Service  126  117  138  200  137  303  427
 Specialized  Mobile  Radio  (SMR)
 Dispatch  163  99  119  212
 Wireless  Data  Service  Providers  1  1  5  6
 Other  Mobile  Service  Providers  23  44
 Total:  Wireless  Service  Providers  924  907  930  1,217  969  1,235  1,495
 Interexchange  Carriers  (IXCs)  83  97  130  149  151  171  204
 Operator  Service  Providers  (OSPs)  35  29  25  27  32  24  21
 Prepaid  Calling  Card  Providers  8  16  18  20  21
 Satellite  Service  Carriers  22  13  13  21
 Toll  Resellers  171  206  260  345  340  388  454
 Other  Toll  Carriers  32  34  30  28  15  31  17
 Total:  Toll  Service  Providers  321  366  453  587  569  647  738
 All  Filers  2,558  2,709  2,847  3,058  3,832  3,604  4,121  4,822
 1/  Starting  in  1993,  filers  have  been  asked  to  select  for  themselves  a  service  provider  category  that  best
 describes  their  operations.  The  choices  have  changed  over  the  years;  for  example,  most  satellite  service
 providers  identified  themselves  as  other  toll  carriers  in  their  1997  TRS  worksheets  because  there  was  no
 separate  category  for  satellite  service  providers.
 2/  Fewer  incumbent  local  exchange  carriers  filed  in  1998  than  in  1997  because  of  the  consolidation  of  study  areas.
 Source:  Industry  Analysis  Division,  Carrier  Locator:  Interstate  Service  Providers.
 16  -  5
123
 Table  16.4
 Gross  Revenues  Reported  by  Type  of  Carrier
 (Dollars  Shown  in  Millions)
 TRS  Worksheet  Data  Universal  Form
 Service  499-  A
 &  TRS  Data  Data
 Service  Provider  Category  1/  1992  1993  1994  1995  1996  1997  1998  1999
 Incumbent  Local  Exchange  Carriers  2/  $91,584  $95,228  $98,431  $102,820  $107,905  $105,154  $108,234  $112,216
 Competitive  Access  Providers  (CAPs)
 and  Competitive  Local  Exchange
 Carriers  (CLECs)  69  191  281  623  1,011  1,919  3,348  5,652
 Local  Resellers  206  410  511
 Other  Local  Exchange  Carriers  157  36  171
 Private  Carriers  112  147  87
 Shared-  Tenant  Service  Providers  87  93  87
 Total:  Competitors  of  ILECs  69  191  281  623  1,011  2,481  4,034  6,508
 Total:  Fixed  Local  Service  Providers  91,835  95,595  99,011  103,792  109,273  107,634  112,268  118,725
 Total:  Payphone  Providers  183  175  300  349  357  933  1,101  1,213
 Wireless  Telephony  Including  Cellular,  6,718  9,215  13,259  17,208  23,778  29,944  33,139  46,513
 Personal  Communications  Service
 (PCS)  and  SMR  Telephony  Carriers  2/
 Paging  &  Messaging  Service  2/  2,861  3,161  3,232
 Specialized  Mobile  Radio  (SMR)  186
 Dispatch
 Wireless  Data  Service  Providers  63
 Other  Mobile  Service  Providers  670  964  938  1,419  2,121  225  731  159
 Total:  Wireless  Service  Providers  7,387  10,179  14,197  18,627  25,900  33,030  37,032  50,152
 Interexchange  Carriers  (IXCs)  57,341  61,118  66,381  70,938  79,057  79,080  83,443  87,570
 Operator  Service  Providers  (OSPs)  558  695  536  500  461  603  590  337
 Prepaid  Calling  Card  Providers  16  238  519  888  866
 Satellite  Service  Carriers  1,011  475  280
 Toll  Resellers  1,293  1,869  2,840  4,220  6,564  8,010  9,885  9,211
 Other  Toll  Carriers  2,186  711  709  773  577  348  710  150
 Total:  Toll  Service  Providers  61,378  64,393  70,466  76,447  86,896  89,570  95,992  98,414
 Non-  Telecommunications  Revenues
 in  Prior  Year  Data  2/  (6,944)  (7,518)  (8,324)  (9,071)  (10,474)
 Other  Adjustments  3/  (248)  2,693  (461)  280  187  0  0  0
 Total  Telecommunications  Revenues  $153,409  $165,342  $174,890  $190,076  $211,782  $231,168  $246,392  $268,505
 1/  Filers  are  asked  to  select  for  themselves  a  service  provider  category  that  best  describes  their  operations.  The  choices
 have  changed  over  the  years.  For  example,  most  satellite  service  providers  identified  themselves  as  other  toll  carriers  in  their  1997  TRS  worksheets  because  there  was  no  separate  category  for  satellite  service  providers.
 2/  Significant  amounts  of  enhanced  services,  billing  and  collection,  CPE,  and  other  non-  telecommunications  revenues  were  reported  on  TRS  worksheets  by  incumbent  local  exchange  carriers  (ILECs)  and  wireless  carriers
 through  1996.  Universal  Service  Worksheet  filers  report  these  revenues  in  the  non-  telecommunications  category.  For  prior  years,  the  amounts  of  non-  telecommunications  revenues  reported  as  mobile  and  other
 local  revenues  were  estimated  as  70%  of  the  amounts  that  Tier  1  ILECs  reported  in  ARMIS  as  miscellaneous  and  nonregulated  revenues  (currently  account  5200  +  account  5280)  and  10%  of  amounts  reported  as  mobile  service
 revenues.  "Tier  1"  refers  to  the  largest  ILECs,  currently  those  with  more  than  $117  million  in  revenues.
 3/  Other  adjustments  include  some  amounts  withheld  to  preserve  confidentiality  and  revisions  made  after  the  initial  publication  of  the  data.
 Source:  Industry  Analysis  Division,  Telecommunications  Industry  Revenues.
 16  -  6
124
 Table  16.5  Telephone  Revenues  by  State
 (Revenue  in  Millions  of  Dollars)
 1995  1996  1997  1998  1999  Percent  Percent
 Carrier's  End  of  Change
 State  Name  Total  Carrier  User  Total  1995-  1999  Alabama  $2,668  $2,946  $3,205  $3,394  $674  $3,037  $3,712  1.38  %  39.1  %
 Alaska  464  518  561  590  130  534  664  0.25  43.2  Arizona  2,842  3,249  3,667  3,958  875  3,485  4,359  1.62  53.4
 Arkansas  1,534  1,719  1,885  2,005  449  1,854  2,303  0.86  50.1  California  22,379  25,100  27,236  28,692  5,793  23,591  29,384  10.94  31.3
 Colorado  3,128  3,526  4,006  4,260  909  3,917  4,826  1.80  54.3  Connecticut  2,765  2,943  3,266  3,173  616  2,789  3,405  1.27  23.1
 Delaware  492  567  627  685  131  657  788  0.29  60.1  District  of  Columbia  886  955  1,049  1,085  285  1,297  1,581  0.59  78.4
 Florida  11,582  12,972  14,161  15,042  3,459  13,763  17,223  6.41  48.7  Georgia  5,335  6,004  6,849  7,469  1,597  6,882  8,479  3.16  58.9
 Guam  NA  85  97  103  18  81  99  0.04  Hawaii  775  841  930  969  210  799  1,009  0.38  30.2
 Idaho  791  908  967  1,010  240  852  1,092  0.41  38.0  Illinois  7,916  8,920  10,069  10,948  2,105  9,878  11,983  4.46  51.4
 Indiana  3,804  4,192  4,536  4,810  1,061  4,037  5,099  1.90  34.0  Iowa  1,888  2,039  2,163  2,268  520  1,921  2,441  0.91  29.3
 Kansas  1,829  2,017  2,165  2,304  501  2,086  2,588  0.96  41.5  Kentucky  2,353  2,629  2,861  3,060  711  2,715  3,426  1.28  45.6
 Louisiana  2,703  2,946  3,192  3,432  698  3,215  3,913  1.46  44.7  Maine  869  976  996  1,105  243  951  1,195  0.44  37.5
 Maryland  3,767  4,234  4,625  4,911  917  4,259  5,176  1.93  37.4  Massachusetts  4,988  5,455  6,010  6,338  1,206  5,355  6,561  2.44  31.5
 Michigan  6,444  7,246  7,983  8,523  1,721  7,809  9,530  3.55  47.9  Minnesota  3,064  3,461  3,864  4,115  950  3,667  4,617  1.72  50.7
 Mississippi  1,584  1,734  1,877  2,017  395  1,888  2,283  0.85  44.1  Missouri  3,623  4,017  4,389  4,613  1,145  4,298  5,442  2.03  50.2
 Montana  640  709  756  780  187  709  897  0.33  40.1  Nebraska  1,296  1,428  1,540  1,587  366  1,371  1,737  0.65  34.0
 Nevada  1,099  1,324  1,489  1,592  338  1,547  1,884  0.70  71.5  New  Hampshire  989  1,118  1,208  1,246  265  1,049  1,313  0.49  32.7
 New  Jersey  7,091  7,927  8,707  9,366  1,853  7,705  9,558  3.56  34.8  New  Mexico  1,121  1,262  1,370  1,433  331  1,187  1,518  0.57  35.5
 New  York  14,983  16,026  17,120  17,935  3,860  15,840  19,700  7.34  31.5  North  Carolina  5,394  6,104  6,613  7,297  1,639  6,367  8,006  2.98  48.4
 North  Dakota  481  587  596  599  143  517  660  0.25  37.1  N.  Mariana  Islands  15  18  21  30  6  27  34  0.01  127.6
 Ohio  7,457  8,219  8,823  9,396  1,940  8,011  9,952  3.71  33.4  Oklahoma  1,996  2,179  2,410  2,552  486  2,241  2,727  1.02  36.6
 Oregon  2,238  2,502  2,720  2,905  656  2,468  3,123  1.16  39.6  Pennsylvania  7,961  8,867  9,588  10,309  2,193  8,577  10,770  4.01  35.3
 Puerto  Rico  1,244  1,405  1,606  1,467  434  1,616  2,051  0.76  64.8  Rhode  Island  686  761  839  859  172  774  946  0.35  38.0
 South  Carolina  2,653  2,849  3,053  3,393  720  3,070  3,790  1.41  42.9  South  Dakota  488  584  602  635  154  562  716  0.27  46.6
 Tennessee  3,467  3,880  4,302  4,553  884  4,044  4,928  1.84  42.2  Texas  12,871  14,563  15,943  17,576  4,095  14,937  19,032  7.09  47.9
 Utah  1,112  1,284  1,443  1,557  344  1,447  1,790  0.67  61.0  Vermont  424  547  575  602  140  544  684  0.25  61.2
 Virgin  Islands  74  93  101  109  26  96  122  0.05  48.3  Virginia  5,061  5,646  6,179  6,576  1,443  5,577  7,020  2.61  38.7
 Washington  3,995  4,438  4,613  5,080  1,213  4,490  5,703  2.12  42.7  West  Virginia  1,143  1,240  1,337  1,383  304  1,133  1,437  0.54  25.8
 Wisconsin  3,258  3,621  3,927  4,234  883  3,837  4,719  1.76  44.9  Wyoming  366  402  449  462  109  404  513  0.19  40.3
 Grand  Total  $190,076  $211,782  $231,168  $246,392  $52,743  $215,762  $268,505  100.00  %  41.3  %
 NA  -  Not  Available.
 Note:  Figures  may  not  add  to  totals  due  to  rounding.
 Source:  Industry  Analysis  Division,  State-  by-  State  Telephone  Revenues  and  Universal  Service  Data.
 NA
 Total  Total  Total  Total
 16  -  7
125
 17-  1
 17  Subscribership
 Under  contract  with  the  FCC,  the  Bureau  of  the  Census  includes  questions  on  telephones  as  part  of  its  Current  Population  Survey.  This  survey,  which  monitors  demographic  trends  between  the
 decennial  censuses,  has  several  strengths:  it  is  conducted  regularly  by  an  expert  agency,  the  sample  is  very  large,  and  the  questions  are  consistent.  Thus,  changes  in  the  results  can  be  compared  over  time
 with  a  great  deal  of  confidence.
 More  than  twenty  million  households  have  been  added  to  the  nation's  telephone  system  since  these  surveys  began  in  November  1983,  reflecting  both  an  increase  in  the  total  number  of  households
 and  a  small,  but  statistically  significant,  increase  in  the  percentage  of  households  that  subscribe  to  telephone  service.
 Because  of  smaller  sample  sizes,  state-  by-  state  data  are  subject  to  greater  sampling  errors  than  the  national  data  shown  in  Table  17.1.  Consequently,  the  state-  by-  state  data  shown  in  Table  17.2  are
 based  on  annual  average  penetration  rates.  Additional  information  can  be  found  in  the  Telephone  Penetration  and  Telephone  Subscribership  reports  available  on  the  FCC-  State  Link  web  page.
 Prior  to  1980,  historical  estimates  of  telephone  penetration  were  based  on  a  comparison  of  the  number  of  residential  main  stations  to  the  number  of  households.  These  estimates  became  less  reliable
 at  that  point  because  of  the  emergence  of  an  increasing  number  of  households  with  multiple  phone  lines.  In  the  1980  decennial  census,  the  question  "Do  you  have  a  telephone?"  was  added  to  the  long-  form
 questionnaire.  The  1980  and  1990  percentages  in  Table  17.3  are  based  on  those  responses.  With  the  telephone  companies  no  longer  owning  the  telephone  instruments,  however,  it  is  possible  for  someone  to
 have  a  telephone  but  not  have  service.  This  may  account  for  some  of  the  discrepancy  between  the  1990  percentages  in  Tables  17.1  and  17.3.
 For  other  countries  of  the  world,  telephone  development  is  often  measured  as  the  number  of  access  lines  per  100  people.  This  measure  includes  both  residential  and  business  lines.  Historical
 estimates  for  the  United  States,  using  the  decennial  census  population  counts,  are  shown  in  Table  17.3.
 The  Bureau  of  the  Census  also  includes  questions  on  computers  and  Internet  use  as  part  of  its  Current  Population  Survey.  Using  this  information,  the  National  Telecommunications  and  Information
 Administration  (NTIA)  has  released  its  third  report  examining  which  American  households  have  access  to  telephones,  computers,  and  the  Internet,  and  which  do  not.  Chart  17.1  shows  the  percent  of
 households  with  a  telephone,  computer,  and  Internet  use  for  1994,  1997,  1998  and  August  2000.  The  percent  of  households  may  differ  from  Table  17.1  since  a  different  monthly  survey  was  used.  The
 NTIA  report,  Falling  Through  the  Net:  Toward  Digital  Inclusion,  finds  that  the  number  of  Americans  connected  to  the  nations  information  infrastructure  is  soaring.  According  to  the  latest  report
 by  NTIA,  the  rapid  swing  to  new  technologies  is  happening  with  most  groups  of  Americans,  regardless  of  income,  education,  race  or  ethnicity  location,  age  or  gender.  Their  conclusion  is  that  digital
 inclusion  is  a  reasonable  goal.  NTIAs  web  site  can  be  accessed  at  <www.  ntia.  doc.  gov>.
126
 Table  17.1
 Household  Telephone  Subscribership  in  the  United  States
 Households  Percentage  Households  Percentage
 Households  with  with  without  without
 (Millions)  Telephones  Telephones  Telephones  Telephones
 (Millions)  (Millions)
 1983  November  85.8  78.4  91.4  %  7.4  8.6  %
 1984  March  86.0  78.9  91.8  7.1  8.2
 July  86.6  79.3  91.6  7.3  8.4
 November  87.4  79.9  91.4  7.5  8.6
 1985  March  87.4  80.2  91.8  7.2  8.2
 July  88.2  81.0  91.8  7.2  8.2
 November  88.8  81.6  91.9  7.2  8.1
 1986  March  89.0  82.1  92.2  6.9  7.8
 July  89.5  82.5  92.2  7.0  7.8
 November  89.9  83.1  92.4  6.8  7.6
 1987  March  90.2  83.4  92.5  6.8  7.5
 July  90.7  83.7  92.3  7.0  7.7
 November  91.3  84.3  92.3  7.0  7.7
 1988  March  91.8  85.3  92.9  6.5  7.1
 July  92.4  85.7  92.8  6.7  7.2
 November  92.6  85.7  92.5  6.9  7.5
 1989  March  93.6  87.0  93.0  6.6  7.0
 July  93.8  87.5  93.3  6.3  6.7
 November  93.9  87.3  93.0  6.6  7.0
 1990  March  94.2  87.9  93.3  6.3  6.7
 July  94.8  88.4  93.3  6.4  6.7
 November  94.7  88.4  93.3  6.3  6.7
 1991  March  95.3  89.2  93.6  6.1  6.4
 July  95.5  89.1  93.3  6.4  6.7
 November  95.7  89.4  93.4  6.3  6.6
 1992  March  96.6  90.7  93.9  5.9  6.1
 July  96.6  90.6  93.8  6.0  6.2
 November  97.0  91.0  93.8  6.0  6.2
 1993  March  97.3  91.6  94.2  5.7  5.8
 July  97.9  92.2  94.2  5.7  5.8
 November  98.8  93.0  94.2  5.8  5.8
 1994  March  98.1  92.1  93.9  6.0  6.1
 July  98.6  92.4  93.7  6.2  6.3
 November  99.8  93.7  93.8  6.2  6.2
 1995  March  99.9  93.8  93.9  6.1  6.1
 July  100.0  94.0  94.0  6.0  6.0
 November  100.4  94.2  93.9  6.2  6.1
 1996  March  100.6  94.4  93.8  6.2  6.2
 July  101.2  95.0  93.9  6.1  6.1
 November  101.3  95.1  93.9  6.2  6.1
 1997  March  102.0  95.8  93.9  6.2  6.1
 July  102.3  96.1  93.9  6.2  6.1
 November  102.8  96.5  93.8  6.3  6.2
 1998  March  103.4  97.4  94.1  6.1  5.9
 July  103.4  97.3  94.1  6.1  5.9
 November  104.1  98.0  94.2  6.1  5.8
 1999  March  104.8  98.5  94.0  6.3  6.0
 July  105.1  99.2  94.4  5.9  5.6
 November  105.4  99.1  94.1  6.3  5.9
 2000  March  105.3  99.6  94.6  5.7  5.4
 July  105.8  99.8  94.4  5.9  5.6
 November  106.5  100.2  94.1  6.3  5.9
 Source:  Industry  Analysis  Division,  Telephone  Subscribership  in  the  United  States.
 17  -  3
127
 Table  17.2
 Telephone  Penetration  by  State  (Annual  Average  Percentage  of  Households  with  Telephone  Service)
 State  1984  2000  Change
 Alabama  88.4  %  91.9  %  3.4  %  *
 Alaska  86.5  94.3  7.8  *
 Arizona  86.9  93.9  7.0  *
 Arkansas  86.6  88.6  2.0
 California  92.5  95.8  3.4  *
 Colorado  93.2  96.3  3.0  *
 Connecticut  95.5  96.4  0.9
 Delaware  94.3  96.3  2.0  *
 District  of  Columbia  94.9  93.2  -1.7
 Florida  88.7  92.1  3.4  *
 Georgia  86.2  91.1  4.9  *
 Hawaii  93.5  94.7  1.2
 Idaho  90.7  93.9  3.2  *
 Illinois  94.2  91.5  -2.6  
 Indiana  91.6  94.5  2.9  *
 Iowa  96.2  96.2  0.0
 Kansas  94.3  94.8  0.5
 Kentucky  88.1  93.3  5.2  *
 Louisiana  89.7  92.6  2.9  *
 Maine  93.4  97.9  4.4  *
 Maryland  95.7  95.0  -0.7
 Massachusetts  95.9  94.6  -1.3  
 Michigan  92.8  95.0  2.1  *
 Minnesota  95.8  97.4  1.6  *
 Mississippi  82.4  89.2  6.8  *
 Missouri  91.5  95.8  4.3  *
 Montana  91.0  94.6  3.6  *
 Nebraska  95.7  97.3  1.7  *
 Nevada  90.4  94.0  3.6  *
 New  Hampshire  94.3  97.7  3.3  *
 New  Jersey  94.8  94.6  -0.2
 New  Mexico  82.0  91.2  9.2  *
 New  York  91.8  95.1  3.3  *
 North  Carolina  88.3  93.9  5.6  *
 North  Dakota  94.6  95.8  1.2  *
 Ohio  92.4  94.8  2.4  *
 Oklahoma  90.3  91.2  0.9
 Oregon  90.6  94.8  4.2  *
 Pennsylvania  94.9  96.6  1.8  *
 Rhode  Island  93.6  94.9  1.3
 South  Carolina  83.7  93.2  9.5  *
 South  Dakota  93.2  94.3  1.1
 Tennessee  88.5  95.5  7.0  *
 Texas  88.4  93.5  5.1  *
 Utah  92.5  95.9  3.4  *
 Vermont  92.3  95.6  3.3  *
 Virginia  93.1  95.4  2.3  *
 Washington  93.0  94.9  1.9  *
 West  Virginia  87.7  94.0  6.3  *
 Wisconsin  95.2  94.8  -0.4
 Wyoming  89.9  94.7  4.9  *
 Total  United  States  91.6  %  94.4  %  2.8  %  *
 Note:  Changes  may  not  be  the  same  as  calculated  differences,  due  to  rounding.
 *  Increase  is  statistically  significant  at  the  95%  confidence  level.    Decrease  is  statistically  significant  at  the  95%  confidence  level.
 Source:  Industry  Analysis  Division,  Telephone  Subscribership  in  the  United  States.
 17  -  4
128
 Table  17.3
 Historical  Telephone  Penetration  Estimates
 Percentage  of  Access  Lines
 Households  with  per  100
 Year  Telephones  Population
 1920  35.0  %  9.6
 1930  40.9  12.5
 1940  36.9  12.7
 1950  61.8  21.7
 1960  78.3  27.6
 1970  90.5  35.0
 1980  92.9  46.2
 1990  94.8  54.8
 Sources:  FCC  staff  estimates  based  on  data  from  the  Bureau  of  the  Census,
 Historical  Statistics  of  the  United  States,  Colonial  Times  to  1970  ,
 Part  2,  page  783,  for  all  percentage  data  except  1980  and  1990,  which
 are  from  the  decennial  censuses.  Access  line  data  for  1920  through
 1970  are  estimated  by  multiplying  the  number  of  telephones  by  the
 proportion  of  main  plus  equivalent  main  stations  to  total  telephones
 for  the  Bell  System.  Prior  to  1950,  the  1950  proportion  is  used.
 For  1980  and  1990,  access  lines  reported  by  USTA  are  used.
 17  -  5
129
 Source:  National  Telecommunications  and  Information  Administration  (NTIA)
 and  U.  S.  Census  Bureau,  Current  Population  Surveys.
 93.8
 24.1
 93.8
 38.6
 18.6
 94.1
 42.1
 26.2
 94.6
 51.0
 41.5
 0.0
 10.0
 20.0
 30.0
 40.0
 50.0
 60.0
 70.0
 80.0
 90.0
 100.0
 Chart  17.1
 Percent  of  U.  S.  Households  with  a  Telephone,  Computer,  and
 Internet  Use
 Telephone  93.8  93.8  94.1  94.6
 Computer  24.1  38.6  42.1  51.0
 Internet  Use  18.6  26.2  41.5
 1994  1997  1998  2000
 17  -  6
130
 18-  1
 18  Technology  Development
 1.  Central  Office  Technology
 During  the  1980s,  telephone  companies  replaced  most  of  their  older  electromechanical  switches  with  computerized  equipment.  In  the  telephone  industry,  these  computers  are  referred  to  as  stored
 program  control  switches.  Switches  with  the  most  current  technologies  are  fully  digital.  That  is,  computers  are  used  to  switch  calls  and  telephone  conversations  are  converted  to  a  digital  form  before
 being  passed  through  the  switch  and  later  reconverted  to  their  original  analog  form.  Some  offices  are  of  an  intermediate  variety:  the  switching  function  is  done  by  computer  but  the  calls  continue  to  be
 processed  in  their  analog  form.  The  spread  of  these  technologies  throughout  the  Bell  operating  companies  (BOCs)  is  shown  in  Table  18.1.
 Newer  signaling  systems  have  been  developed  which  permit  calls  to  be  set  up  more  quickly  and  efficiently.  In  the  late  1980s,  telephone  company  switching  offices  began  to  be  converted  to  the  newest
 signaling  system,  Signaling  System  7.  This  was  followed  by  an  integrated  systems  digital  network  (ISDN).  One  of  the  attractions  of  ISDN  is  that  ordinary  local  telephone  lines  (copper  loops)  can
 transport  high-  speed  data  between  computers  and  handle  more  than  one  telephone  conversation  at  a  time.  The  number  of  BOCs  switching  offices  and  the  lines  served  by  offices  with  these  features  are
 shown  in  Table  18.2.  Of  course,  not  all  of  the  lines  served  by  ISDN-  compatible  switching  offices  are  actually  receiving  ISDN  service.
 The  newest  service  available,  xDSL  (digital  subscriber  loop)  service,  offers  broadband  digital  capability  using  special  terminal  equipment  that  enhances  the  capability  of  existing  copper  access  lines.
 Availability  of  ISDN  services  for  Internet  access  along  with  the  availability  of  xDSL  services  should  tend  to  drive  down  the  cost  of  ISDN  services  further.
 2.  Transmission  Technology
 The  BOCs  file  data  on  technology  as  part  of  their  ARMIS  reports.  (ARMIS  is  an  acronym  for  the  Automated  Reporting  Management  Information  System.)  The  data  contained  in  Tables  18.1  -  18.3
 are  from  the  BOC's  ARMIS  43-  07  reports.  The  individual  carrier's  data  can  be  obtained  from  the  ARMIS  web  page  at  <www.  fcc.  gov/  ccb/  armis/  db>.  Selected  holding  company  statistics  from  the
 ARMIS  43-  07  can  be  found  in  our  Infrastructure  report  on  the  FCC-  State  Link  web  page.  Each  telephone  company  has  a  network  of  transmission  paths  or  carrier  links  tying  together  their  switching
 offices.  As  indicated  in  Table  18.3,  fiber  optic  cables  have  rapidly  replaced  copper  to  provide  these  links.  From  1990  to  2000,  the  proportion  of  fiber  has  grown  from  60%  to  97%.
 Although  fiber  technology  was  first  used  for  interoffice  transmission  facilities,  the  technology  is  now  being  deployed  closer  to  customers.  The  number  of  working  channels  provides  an  approximation
 of  the  number  of  transmission  paths  between  customers  and  the  telephone  company  offices  serving  those  customers.  Although  the  number  of  fiber  channels  nearly  tripled  during  the  first  half  of  the  1990s,
 in  2000  copper  wire  still  linked  about  80%  of  customers  to  the  first  point  of  switching.
131
 18-  2
 3.  Equal  Access
 Equal  access  refers  to  a  class  of  service  whereby  all  long  distance  service  providers  receive  equivalent  connections  to  the  local  exchange  carrier's  network.  Where  a  local  exchange  carrier  serves
 customers  using  equal-  access  switches,  those  customers  can  utilize  their  preferred  long  distance  provider  by  dialing  "1"  plus  the  ten-  digit  telephone  number  they  want  to  reach.
 For  equal  access  to  take  place,  the  local  exchange  carrier  had  to  convert  its  lines  to  equal  access.  The  conversion  of  lines  by  local  exchange  carriers  to  equal  access  started  in  1984.  By  the  end
 of  1996,  over  99%  of  the  nation's  lines  had  been  converted  to  equal  access.  A  table  tracing  this  process  though  time  can  be  found  in  the  equal-  access  section  in  the  Trends  report  released  in  July
 1998.
 Despite  the  fact  that  more  than  99%  of  the  nation's  customers  are  now  provided  with  equal  access,  there  still  are  many  central  offices  where  equal  access  is  not  yet  available.  Because  the  non-equal-
 access  offices  tend  to  be  smaller  offices,  the  percentage  of  converted  offices  is  significantly  smaller  than  the  percentage  of  converted  lines.  Table  18.4  shows  the  number  of  central  office  wire
 centers  in  each  state  that  had  been  converted  to  equal  access  as  of  May  1,  2001.  The  table  is  derived  from  NECA's  Tariff  4  database,  which  is  updated  by  local  exchange  carriers.  In  some  cases,  there  is  a
 lag  between  an  office  converting  to  equal  access  and  that  change  being  reflected  in  the  database.  Thus,  in  some  cases,  the  data  continue  to  show  some  offices  not  yet  converted  to  equal  access  even  in  states
 where  equal  access  is  reported  to  be  available  to  all  customers.
 4.  Telecommunications  Patents
 Another  measure  of  developing  technology  is  the  number  of  U.  S.  patents.  The  U.  S.  Patent  and  Trademark  Office  maintains  a  file  of  over  6  million  distinct  U.  S.  patents  granted.  These  patents  are
 categorized  by  technology.  Chart  18.1  shows  the  number  of  patents  granted  for  telecommunications  from  1990  to  2000.  The  information  presented  profiles  U.  S.  patent  activity  in  the  general  field  of
 telecommunications.  It  includes  all  U.  S.  patent  documents,  excepting  reissued  patents,  granted  between  January  1990  and  December  31,  2000,  which  have  been  classified  as  follows:
 Class  370,  Multiplex  Communications,  is  the  generic  class  for  multiplexing  or  duplexing  systems,  methods,  or  apparatus.
 Class  375,  Pulse  or  Digital  Communications,  is  the  generic  class  for  pulse  or  digital  communication  systems  using  electrical  or  electromagnetic  signals.  Such  communication
 includes  transmitting  an  intelligence-  bearing  signal  from  one  point  to  another  in  the  form  of  discrete  variations  in  some  parameter  of  the  electrical  or  electromagnetic  signal.
 Class  379,  Telephonic  Communications,  includes  systems,  processes  and  instruments  for  the  two-  way  electrical  transmission  of  intelligible  audio  information  having  arbitrary
 content  over  a  link  including  an  electrical  conductor,  between  spaced  apart  locations,  so  as  to  enable  conversation  therebetween,  and  intended  for  the  private  use  of  a  listener  or
 a  group  of  listeners.  Also  included  are  switching,  signaling  or  signal  transmission  systems,  processes  and  instruments  peculiar  to,  or  specified  as  for  a  telephone  or  a
 telephone  system.
132
 18-  3
 Class  455,  Telecommunications,  is  the  generic  class  for  modulated  carrier  wave  communications.
 Data  for  prior  years  differ  from  the  March  2000  Trends  report.  Revisions  to  prior-  year  data  reflect  annual  reclassification  of  patent  categories.  For  example,  if  a  patent  type  was  reclassified  in
 1998,  the  data  for  prior  years  have  been  recalculated  based  on  this  reclassification.
133
 18-  4
134
 Table  18.1
 Central  Offices  and  Access  Lines  by  Technology
 (Bell  Operating  Companies)
 Year  End  Total  Electromechanical  Analog  Stored  Digital  Stored
 Offices  Offices  Program  Controlled  Program  Controlled
 Offices  Offices
 1980  9,195  6,842  74.4  %  2,353  25.6  %  0  0.0  %
 1981  9,198  6,647  72.3  2,527  27.5  24  0.3
 1982  9,173  6,357  69.3  2,736  29.8  80  0.9
 1983  9,156  6,075  66.3  2,910  31.8  171  1.9
 1984  9,102  5,714  62.8  3,041  33.4  347  3.8
 1985  9,124  5,244  57.5  3,020  33.1  860  9.4
 1986  9,167  4,604  50.2  2,943  32.1  1,620  17.7
 1987  9,190  3,819  41.6  2,833  30.8  2,538  27.6
 1988  9,300  3,031  32.6  2,692  28.9  3,577  38.5
 1989  9,338  2,416  25.9  2,519  27.0  4,403  47.2
 1990  9,872  1,646  16.7  2,410  24.4  5,816  58.9
 1991  9,951  1,148  11.5  2,167  21.8  6,636  66.7
 1992  10,069  615  6.1  1,924  19.1  7,530  74.8
 1993  10,089  296  2.9  1,554  15.4  8,239  81.7
 1994  10,023  95  0.9  1,133  11.3  8,795  87.7
 1995  10,051  60  0.6  976  9.7  9,015  89.7
 1996  9,966  1  0.0  718  7.2  9,247  92.8
 1997  9,965  0  0.0  548  5.5  9,417  94.5
 1998  9,791  0  0.0  431  4.4  9,360  95.6
 1999  1/  9,968  0  0.0  320  3.2  9,648  96.8
 2000  2/  15,092  0  0.0  203  1.3  14,889  98.7
 Access  Lines  Served  by  Type  of  Office
 (Thousands)
 Year  End  All  Electromechanical  Analog  Stored  Digital  Stored
 Offices  Offices  Program  Controlled  Program  Controlled
 Offices  Offices
 1980  81,032  44,930  55.4  %  36,092  44.5  %  10  0.0  %
 1981  82,581  40,425  49.0  42,099  51.0  57  0.1
 1982  83,819  36,813  43.9  46,803  55.8  203  0.2
 1983  86,186  32,652  37.9  52,919  61.4  615  0.7
 1984  88,630  30,074  33.9  56,404  63.6  2,151  2.4
 1985  91,455  24,778  27.1  58,532  64.0  8,145  8.9
 1986  93,630  19,491  20.8  59,252  63.3  14,886  15.9
 1987  96,593  14,205  14.7  59,442  61.5  22,946  23.8
 1988  99,564  8,707  8.7  60,364  60.6  30,493  30.6
 1989  102,684  5,646  5.5  58,846  57.3  38,192  37.2
 1990  105,641  3,216  3.0  56,973  53.9  45,452  43.0
 1991  107,389  1,876  1.7  53,450  49.8  52,062  48.5
 1992  109,995  717  0.7  48,959  44.5  60,324  54.8
 1993  113,368  264  0.2  41,912  37.0  71,192  62.8
 1994  117,345  115  0.1  33,191  28.3  84,040  71.6
 1995  122,266  63  0.1  29,031  23.7  93,172  76.2
 1996  125,846  1  0.0  24,561  19.5  101,283  80.5
 1997  131,722  0  0.0  21,219  16.1  110,503  83.9
 1998  136,426  0  0.0  16,688  12.2  119,738  87.8
 1999  1/  141,763  0  0.0  11,925  8.4  129,838  91.6
 2000  2/  160,925  0  0.0  7,317  4.5  153,609  95.5
 Note:  Because  of  different  sources,  the  data  for  1989  and  earlier  years  may  not  be  consistent  with  the
 data  for  1990  and  later  years.
 1/  Southern  New  England  Telephone  Company  merged  with  SBC  Communications  October  26,  1998.
 Their  data  are  included  in  this  table  starting  with  1999.
 2/  Large  increase  in  2000  due  to  the  merger  of  Bell  Atlantic  and  GTE.
 Sources:  1980-  1989  reported  in  CC  Docket  89-  624.
 1990-  2000  reported  in  ARMIS  43-  07.
 18  -  5
135
 Table  18.2
 Features  Available  in  Central  Offices
 (Bell  Operating  Companies)
 Year  End  Total  Equal  Access  Signaling  System  7  ISDN  Offices  2/
 Offices  Offices  Offices  1/
 1980  9,195  0  0.0  %  0  0.0  %  0  0.0  %
 1981  9,198  0  0.0  0  0.0  0  0.0
 1982  9,173  0  0.0  0  0.0  0  0.0
 1983  9,156  0  0.0  0  0.0  0  0.0
 1984  9,102  124  1.4  0  0.0  0  0.0
 1985  9,124  1,891  20.7  0  0.0  0  0.0
 1986  9,167  3,623  39.5  0  0.0  0  0.0
 1987  9,190  4,823  52.5  29  0.3  4  0.0
 1988  9,300  6,071  65.3  435  4.7  82  0.9
 1989  9,338  6,788  72.7  931  10.0  179  1.9
 1990  9,872  7,950  80.5  2,428  24.6  600  6.1
 1991  9,951  8,601  86.4  3,670  36.9  920  9.2
 1992  10,069  9,281  92.2  5,392  53.6  1,219  12.1
 1993  10,089  9,697  96.1  6,688  66.3  1,874  18.6  1994  10,023  9,933  99.1  8,334  83.1  2,400  23.9
 1995  10,051  9,978  99.3  8,977  89.3  2,868  28.5
 1996  9,966  9,845  98.8  9,286  93.2  3,329  33.4
 1997  9,965  9,936  99.7  9,688  97.2  3,902  39.2
 1998  9,791  9,768  99.8  9,646  98.5  4,146  42.3
 1999  3/  9,968  9,864  99.0  9,844  98.8  4,426  44.4
 2000  4/  15,092  15,053  99.7  14,837  98.3  5,415  35.9
 Equipped  Access  Lines  by  Type  of  Office
 (Thousands)
 Year  End  All  Equal  Access  Signaling  System  7  ISDN  Offices  2/
 Offices  Offices  Offices  1/
 1980  81,032  0  0.0  %  0  0.0  %  0  0.0  %
 1981  82,581  0  0.0  0  0.0  0  0.0
 1982  83,819  0  0.0  0  0.0  0  0.0
 1983  86,186  146  0.2  0  0.0  0  0.0
 1984  88,630  9,350  10.5  0  0.0  0  0.0
 1985  91,455  49,241  53.8  0  0.0  0  0.0
 1986  93,630  70,543  75.3  0  0.0  0  0.0
 1987  96,593  81,743  84.6  1,035  1.1  12  0.0
 1988  99,564  91,809  92.2  10,325  10.4  47  0.0
 1989  102,684  97,410  94.9  21,917  21.3  111  0.1
 1990  105,641  102,429  97.0  40,026  37.9  13,970  13.2
 1991  107,389  105,415  98.2  57,322  53.4  20,565  19.2
 1992  109,995  109,007  99.1  76,486  69.5  28,376  25.8
 1993  113,368  112,993  99.7  92,493  81.6  39,875  35.2
 1994  117,345  117,266  99.9  109,465  93.3  56,546  48.2
 1995  122,266  122,210  100.0  116,568  95.3  71,274  58.3
 1996  125,846  125,845  100.0  122,344  97.2  85,435  67.9
 1997  131,722  131,722  100.0  130,778  99.3  95,956  72.8
 1998  136,426  136,426  100.0  135,981  99.7  106,834  78.3
 1999  3/  141,763  141,763  100.0  141,685  99.9  113,999  80.4
 2000  4/  160,925  160,925  100.0  160,608  99.8  132,848  82.6
 Note:  Because  of  different  sources,  the  data  for  1989  and  earlier  years  may  not  be  entirely  consistent
 with  the  data  for  1990  and  later  years.
 1/  Signaling  System  7  Switch  (SS7-  317).
 2/  ISDN  basic  access  line  capacity  reported  for  1990-  2000.
 3/  Southern  New  England  Telephone  Company  merged  with  SBC  Communications  October  26,  1998.  Their
 data  are  included  in  this  table  starting  with  1999.
 4/  Large  increase  in  2000  due  to  the  merger  of  Bell  Atlantic  and  GTE.
 Sources:  1980-  1989  reported  in  CC  Docket  89-  624.
 1990-  2000  reported  in  ARMIS  43-  07.
 18  -  6
136
 Table  18.3
 Local  Transmission  Technology  (Bell  Operating  Companies)
 Digital  Transmission  Links
 Year  End  Total  Copper  Fiber  Radio
 1990  1/  2,895,117  1,092,041  37.7  %  1,737,984  60.0  %  65,092  2.2  %
 1991  3,271,023  1,039,316  31.8  2,154,043  65.9  77,664  2.4
 1992  3,564,847  864,931  24.3  2,610,185  73.2  89,731  2.5
 1993  4,159,574  805,290  19.4  3,264,106  78.5  90,175  2.2
 1994  4,495,728  568,197  12.6  3,846,394  85.6  81,137  1.8
 1995  5,828,645  485,909  8.3  5,274,173  90.5  68,563  1.2
 1996  7,955,574  433,758  5.5  7,477,395  94.0  44,421  0.6
 1997  10,067,498  413,204  4.1  9,610,601  95.5  43,693  0.4
 1998  13,558,832  420,488  3.1  13,099,829  96.6  38,515  0.3
 1999  17,662,105  518,331  2.9  17,104,970  96.8  38,804  0.2
 2000  2/  24,334,009  771,385  3.2  23,523,610  96.7  39,014  0.2
 1/  1990  contains  some  analog  links.
 2/  Large  increase  in  2000  due  to  the  merger  of  Bell  Atlantic  and  GTE.
 Working  Telecommunications  Channels
 (Thousands)
 Year  End  Total  Copper  Fiber  Radio
 1990  122,564  1/  106,373  86.8  %  3,546  2.9  %  0  0.0  %
 1991  118,654  114,047  96.1  4,605  3.9  2  0.0
 1992  120,848  114,609  94.8  6,238  5.2  1  0.0
 1993  124,191  115,496  93.0  8,694  7.0  1  0.0
 1994  130,192  118,437  91.0  11,754  9.0  0  0.0
 1995  136,231  122,975  90.3  13,255  9.7  0  0.0
 1996  142,824  125,595  87.9  17,228  12.1  1  0.0
 1997  149,429  128,436  86.0  20,992  14.0  0  0.0
 1998  160,621  131,867  82.1  28,753  17.9  0  0.0
 1999  2/  171,079  135,569  79.2  35,510  20.8  0  0.0
 2000  3/  196,414  153,624  78.2  42,575  21.7  215  0.1
 1/  Includes  some  other  channels.
 2/  Southern  New  England  Telephone  Company  merged  with  SBC  Communications  October  26,  1998.
 Their  data  are  included  in  this  table  starting  with  1999.
 3/  Large  increase  in  2000  due  to  the  merger  of  Bell  Atlantic  and  GTE.
 Source:  ARMIS  43-  07  report.
 18  -  7
137
 Table  18.4
 Central  Offices  Converted  to  Equal  Access  1/
 (As  of  August  1,  2000)
 ILEC  CLEC  All  Central  Offices  Central  Offices  Central  Offices
 Equal  Non-  Equal  %  Equal  Equal  Non-  Equal  %  Equal  Total  %  Equal  Access  Access  Access  Access  Access  Access  Offices  Access
 Alabama  358  4  98.9  %  34  6  85.0  %  402  97.5  %
 Alaska  53  201  20.9  0  0  NA  254  20.9
 Arizona  239  9  96.4  23  4  85.2  275  95.3
 Arkansas  405  2  99.5  25  2  92.6  434  99.1
 California  992  18  98.2  320  35  90.1  1,365  96.1
 Colorado  276  9  96.8  27  4  87.1  316  95.9
 Connecticut  130  0  100.0  22  2  91.7  154  98.7
 Delaware  33  0  100.0  3  2  60.0  38  94.7
 District  of  Columbia  19  0  100.0  22  2  91.7  43  95.3
 Florida  475  2  99.6  236  18  92.9  731  97.3
 Georgia  417  10  97.7  103  12  89.6  542  95.9
 Guam  18  0  100.0  0  0  NA  18  100.0
 Hawaii  93  0  100.0  1  0  100.0  94  100.0
 Idaho  171  15  91.9  8  1  88.9  195  91.8
 Illinois  1,007  26  97.5  86  13  86.9  1,132  96.6
 Indiana  574  2  99.7  35  10  77.8  621  98.1
 Iowa  807  3  99.6  32  7  82.1  849  98.8
 Kansas  561  9  98.4  15  5  75.0  590  97.6
 Kentucky  375  18  95.4  13  7  65.0  413  93.9
 Louisiana  328  2  99.4  36  4  90.0  370  98.4
 Maine  248  10  96.1  6  1  85.7  265  95.8
 Maryland  213  0  100.0  37  5  88.1  255  98.0
 Massachusetts  277  2  99.3  63  5  92.6  347  98.0
 Michigan  695  17  97.6  37  7  84.1  756  96.8
 Minnesota  707  4  99.4  90  10  90.0  811  98.3
 Mississippi  260  8  97.0  15  4  78.9  287  95.8
 Missouri  650  48  93.1  53  9  85.5  760  92.5
 Montana  274  1  99.6  15  4  78.9  294  98.3
 Nebraska  460  4  99.1  11  4  73.3  479  98.3
 Nevada  103  15  87.3  25  2  92.6  145  88.3
 New  Hampshire  152  2  98.7  15  1  93.8  170  98.2
 New  Jersey  234  0  100.0  42  8  84.0  284  97.2  New  Mexico  148  39  79.1  3  1  75.0  191  79.1
 New  York  824  16  98.1  95  16  85.6  951  96.6
 North  Carolina  493  12  97.6  67  15  81.7  587  95.4
 North  Dakota  270  20  93.1  12  3  80.0  305  92.5
 Ohio  814  39  95.4  80  9  89.9  942  94.9
 Oklahoma  502  23  95.6  20  2  90.9  547  95.4
 Oregon  282  5  98.3  22  4  84.6  313  97.1
 Pennsylvania  806  32  96.2  99  13  88.4  950  95.3
 Puerto  Rico  86  0  100.0  1  0  100.0  87  100.0
 Rhode  Island  30  0  100.0  5  1  83.3  36  97.2
 South  Carolina  276  2  99.3  17  5  77.3  300  97.7
 South  Dakota  245  9  96.5  5  2  71.4  261  95.8
 Tennessee  355  9  97.5  38  4  90.5  406  96.8
 Texas  1,483  26  98.3  583  26  95.7  2,118  97.5
 Utah  147  18  89.1  9  4  69.2  178  87.6
 Vermont  132  2  98.5  2  0  100.0  136  98.5
 Virgin  Islands  5  0  100.0  0  0  NA  5  100.0
 Virginia  461  7  98.5  49  10  83.1  527  96.8
 Washington  359  8  97.8  58  5  92.1  430  97.0
 West  Virginia  228  6  97.4  6  2  75.0  242  96.7
 Wisconsin  635  5  99.2  46  6  88.5  692  98.4
 Wyoming  63  23  73.3  2  2  50.0  90  72.2
 Total  United  States  20,248  742  96.5  %  2,669  324  89.2  %  23,983  95.6  %
 NA  -  Not  Applicable.
 1/  Some  companies  do  not  report  information  on  their  remote  switches  in  Tariff  No.  4.  As  a  result,  central  office  counts  may  be  lower  than  reported  in  other  sources.
 Source:  NECA  FCC  Tariff  No.  4  database.
 18  -  8
138
 Chart  18.1
 Note:  1996  total  reflects  one-  time  change  in  law  affecting  patents.
 Source:  U.  S.  Patent  and  Trademark  Office,  Technology  Profile  Report  -  Telecommunications,
 Classes  370,  375,  379  and  455.
 1990  1991  1992  1993  1994  1995  1996  1997  1998  1999  2000
 2,326  2,404
 2,598  2,997
 3,834
 4,553
 5,659  5,140
 7,927
 8,711
 9,170
 0
 500
 1,000
 1,500
 2,000
 2,500
 3,000
 3,500
 4,000
 4,500
 5,000
 5,500
 6,000
 6,500
 7,000
 7,500
 8,000
 8,500
 9,000
 9,500
 Patents
 Granted
 Telecommunications  Patents
 18  -  9
139
 19-  1
 19  Telephone  Numbers
 In  1994,  many  area  codes  were  nearing  exhaustion  as  demand  for  telephone  numbers  continued  to  rise.  Adding  new  area  codes  was  difficult  because  some  older  telephone  equipment  was  designed  to
 recognize  only  area  codes  with  a  middle  digit  of  0  or  1,  and  the  supply  of  those  area  codes  was  dwindling.  On  January  1,  1995,  the  restriction  on  the  middle  digit  was  removed,  and  640  new  area
 codes  were  made  available.  During  1995,  fourteen  new  area  codes  were  assigned  --  the  largest  single-year  expansion  of  area  codes  in  decades.  Nineteen  area  codes  were  added  in  1996,  forty-  three  in
 1997,  twenty  in  1998,  twenty-  four  codes  in  1999,  thirteen  in  2000,  and  sixteen  codes  have  been  added  in  2001.  The  above  counts  of  area  code  activation  are  for  the  contiguous  United  States,  offshore
 points,  Canada,  and  the  Caribbean.  The  changes  in  area  codes  from  1984  to  2001  are  shown  in  Table  19.1.  Area  codes  are  assigned  by  the  North  American  Numbering  Plan  Administration  (NANPA),
 which  is  part  of  Neustar,  Inc.
 Toll-  free  service  was  first  introduced  in  1967  by  AT&  T.  On  May  1,  1993,  procedures  for  routing  toll-  free  (800)  calls  were  changed  and  800  numbers  were  made  "portable."  The  new  system
 enables  customers  to  change  service  providers  while  still  retaining  the  same  800  number.  There  has  been  tremendous  growth  in  the  toll-  free  market.  The  growth  of  toll-  free  telephone  numbers  is  shown  in
 Table  19.2.  In  March  1996,  a  second  toll-  free  calling  code  --  888  --  was  placed  in  service;  the  third  toll-  free  calling  code  --  877  --  went  into  effect  April  4,  1998;  and  the  fourth  toll-  free  calling  code    866
 went  into  effect  July  29,  2000.  The  next  toll-  free  code  scheduled  for  service  is  855,  which  was  scheduled  for  November  18,  2000,  but  has  been  delayed.  Database  Service  Management,  Inc.,  a
 subsidiary  of  Telcordia  Technologies,  Inc.,  maintains  the  database  on  toll-  free  numbers.
 Dialing  patterns  differ  from  state  to  state.  For  instance,  in  some  states,  callers  making  local  calls  within  an  area  code  are  required  to  only  dial  the  7-  digit  phone  number.  In  other  states,  callers  making
 local  calls  must  dial  the  ten-  digit  phone  number  (area  code  plus  the  phone  number).  Finally,  in  some  states,  local  callers  must  dial  a  1  before  dialing  the  area  code  plus  the  phone  number.  Each  states
 public  utilities  commission  (or  public  service  commission)  determines  the  calling  pattern  for  each  area  code  in  their  state.  The  dialing  pattern  for  area  codes  are  listed  in  area  code  planning  letters,  which  are
 available  on  the  North  American  Numbering  Plan  Administrators  web  site  at  <www.  nanpa.  com>.
 For  both  local  and  domestic  toll  calls,  there  are  two  basic  types  of  calls:  those  within  an  area  code  and  those  between  area  codes.  Table  19.3  shows  the  dialing  patterns  for  all  four  types  of  calls.
 The  last  column  of  Table  19.3  indicates  whether  all  toll  calls  in  that  state  require  callers  to  dial  a  1  before  the  telephone  number.
140
 19-  2
141
 Table  19.1
 Area  Code  Assignments  (1984-  2001)
 Location  Date  Previous  Added
 Code  Code
 California  1/  84  213  818
 New  York  9/  84  212  718
 Colorado  3/  88  303  719
 Florida  4/  88  305  407
 Massachusetts  7/  88  617  508
 Illinois  11/  89  312  708
 New  Jersey  11/  90  201  908
 Texas  11/  90  214  903
 California  9/  91  415  510
 Maryland  10/  91  301  410
 California  11/  91  213  310
 New  York  1/  92  212  917
 New  York  1/  92  718  917
 Georgia  5/  92  404  706
 New  York  7/  92  212  718
 Texas  11/  92  512  210
 California  11/  92  714  909
 Ontario  10/  93  416  905
 North  Carolina  11/  93  919  910
 Michigan  12/  93  313  810
 Pennsylvania  1/  94  215  610
 Alabama  1/  95  205  334
 Washington  1/  95  206  360
 Arizona  3/  95  602  520
 Colorado  4/  95  303  970
 Florida  (Tampa)  5/  95  813  941
 Virginia  7/  95  703  540
 Georgia  (Atlanta)  8/  95  404  770
 Connecticut  8/  95  203  860
 Florida  (Miami)  9/  95  305  954
 Tennessee  9/  95  615  423
 Bermuda  10/  95  809  441
 Oregon  11/  95  503  541
 South  Carolina  12/  95  803  864
 Florida  (North)  12/  95  904  352
 Missouri  1/  96  314  573
 Illinois  (Chicago)  1/  96  708  847
 Puerto  Rico  3/  96  809  787
 Ohio  3/  96  216  330
 Minnesota  3/  96  612  320
 Antigua  4/  96  809  268
 Florida  (Southeast)  5/  96  407  561
 Barbados  7/  96  809  246
 St.  Lucia  7/  96  809  758
 Virginia  7/  96  804  757
 19  -  3
142
 Table  19.1
 Area  Code  Assignments  --  Continued  (1984-  2001)
 Location  Date  Previous  Added
 Code  Code
 Montserrat  7/  96  809  664
 Illinois  (Chicago)  8/  96  708  630
 Cayman  Islands  9/  96  809  345
 Texas  (Dallas)  9/  96  214  972
 Ohio  9/  96  513  937
 Bahamas  10/  96  809  242
 St.  Kitts  &  Nevis  10/  96  809  869
 Illinois  10/  96  312  773
 British  Columbia  10/  96  604  250
 Texas  (Houston)  11/  96  713  281
 California  (Southern)  1/  97  310  562
 Indiana  2/  97  317  765
 California  3/  97  619  760
 Anguilla  3/  97  809  264
 Arkansas  4/  97  501  870
 Washington  State  4/  97  206  253
 Washington  State  4/  97  206  425
 Jamaica  5/  97  809  876
 Michigan  5/  97  810  248
 Texas  5/  97  817  254
 Texas  5/  97  817  940
 Turks  &  Caicos  6/  97  809  649
 Trinidad/  Tobago  6/  97  809  868
 Maryland  6/  97  301  240
 Maryland  6/  97  410  443
 New  Jersey  6/  97  201  973
 New  Jersey  6/  97  908  732
 U.  S.  Virgin  Islands  6/  97  809  340
 California  6/  97  818  626
 Florida  6/  97  904  850
 Guam  7/  97  NA  671
 Commonwealth  of  the
 Northern  Mariana  Islands  7/  97  NA  670
 Texas  7/  97  210  830
 Texas  7/  97  210  956
 Kansas  7/  97  913  785
 Wisconsin  7/  97  414  920
 California  8/  97  415  650
 Ohio  8/  97  216  440
 Massachusetts  9/  97  617  781
 Massachusetts  9/  97  508  978
 Tennessee  9/  97  615  931
 Mississippi  9/  97  601  228
 Utah  9/  97  801  435
 Dominica  10/  97  809  767
 British  Virgin  Islands  10/  97  809  284
 19  -  4
143
 Table  19.1
 Area  Code  Assignments  --  Continued  (1984-  2001)
 Location  Date  Previous  Added
 Code  Code
 Missouri  10/  97  816  660
 Yukon  &  Northwest  Territories  10/  97  403  867
 Yukon  &  Northwest  Territories  10/  97  819  867
 Grenada  10/  97  809  473
 California  11/  97  916  530
 Oklahoma  11/  97  405  580
 Ohio  12/  97  614  740
 Michigan  12/  97  313  734
 North  Carolina  12/  97  910  336
 Georgia  (Atlanta)  1/  98  770  678
 Pennsylvania  2/  98  412  724
 Florida  3/  98  305  786
 California  3/  98  510  925
 South  Carolina  3/  98  803  843
 North  Carolina  3/  98  704  828
 North  Carolina  3/  98  919  252
 Alabama  3/  98  205  256
 California  4/  98  714  949
 Colorado  2/  98  303  720
 St.  Vincent  &  the  Grenadines  6/  98  809  784
 California  (Los  Angeles)  6/  98  213  323
 Quebec  6/  98  514  450
 Florida  7/  98  813  727
 California  7/  98  408  831
 Minnesota  7/  98  612  651
 Louisiana  8/  98  504  225
 California  11/  98  209  559
 Pennsylvania  12/  98  717  570
 Nevada  12/  98  702  775
 Texas  (Houston)  1/  99  281  832
 Texas  (Houston)  1/  99  713  832
 Alberta  1/  99  403  780
 California  2/  99  805  661
 Texas  2/  99  512  361
 Arizona  3/  99  602  480
 Arizona  3/  99  602  623
 Kentucky  4/  99  502  270
 Mississippi  4/  99  601  662
 Missouri  5/  99  314  636
 Michigan  6/  99  616  231
 Pennsylvania  6/  99  215  267
 Pennsylvania  6/  99  610  484
 California  6/  99  619  858
 New  Jersey  6/  99  609  856
 New  York  (Manhattan)  7/  99  212  646
 Texas  (Dallas)  7/  99  214  469
 19  -  5
144
 Table  19.1
 Area  Code  Assignments  --  Continued  (1984-  2001)
 Location  Date  Previous  Added
 Code  Code
 Texas  (Dallas)  7/  99  972  469
 Florida  9/  99  941  863
 Wisconsin  9/  99  414  262
 Louisiana  10/  99  318  337
 Florida  11/  99  407  321
 New  York  11/  99  516  631
 Tennessee  11/  99  423  865
 Texas  2/  00  409  936
 Texas  2/  00  409  979
 Minnesota  2/  00  612  763
 Minnesota  2/  00  612  952
 Virginia  3/  00  703  571
 Kentucky  4/  00  606  859
 New  York  6/  00  914  845
 California  7/  00  515  641
 Georgia  8/  00  912  478
 Georgia  8/  00  912  229
 Oregon  10/  00  503  971
 Texas  10/  00  817  682
 Ohio  10/  00  234  330
 Kansas  2/  01  316  620
 Tennessee  2/  01  901  731
 Louisiana  2/  01  504  985
 Florida  2/  01  904  386
 Ontario  3/  01  416  647
 Iowa  3/  01  319  563
 North  Carolina  4/  01  704  980
 Michigan  4/  01  517  989
 Massachusetts  5/  01  781  339
 Massachusetts  5/  01  978  351
 Massachusetts  5/  01  508  774
 Massachusetts  5/  01  617  857
 Virginia  6/  01  804  434
 Ontario  6/  01  905  289
 Alabama  6/  01  334  251
 Arizona  6/  01  520  928
 Source:  North  American  Numbering  Plan  Administration  (NANPA).
 19  -  6
145
 Table  19.2
 Telephone  Numbers  Assigned  for  Toll-  Free  Service  *
 (Summary  December  1993  -  2000  and  July  2001)
 Working  Miscellaneous  Total  Spare  Toll-  Free
 Year  Month  Toll-  Free  Toll-  Free  Toll-  Free  Numbers
 Numbers  Numbers  1/  Numbers  Still
 Assigned  Available
 1993  December  3,155,955  731,438  3,887,393  3,822,607
 1994  December  4,948,605  763,235  5,711,840  1,998,160
 1995  December  6,700,576  286,487  6,987,063  722,937
 1996  December  9,527,982  945,671  10,473,653  5,216,347
 1997  December  12,980,714  996,449  13,977,163  1,712,837
 1998  December  16,200,883  965,466  17,166,349  6,503,651
 1999  December  19,677,001  1,101,964  20,778,965  2,891,035
 2000  December  23,022,015  1,178,096  24,200,111  7,449,889
 2001  July  23,035,980  1,422,494  24,458,474  7,191,526
 19  -  7
146
 Table  19.2
 Telephone  Numbers  Assigned  for  Toll-  Free  Service  *
 800  Toll-  Free  Service
 Working  Miscellaneous  Total  Spare  800
 Year  Month  800  800  800  Numbers
 Numbers  Numbers  1/  Numbers  Still
 Assigned  Available
 1993  April  2,448,985  642,725  3,091,710  4,618,290
 May  2,511,933  708,192  3,220,125  4,489,875
 June  2,589,123  722,006  3,311,129  4,398,871
 July  2,675,483  705,416  3,380,899  4,329,101
 August  2,738,259  701,009  3,439,268  4,270,732
 September  2,818,262  639,547  3,457,809  4,252,191
 October  2,891,994  660,544  3,552,538  4,157,462
 November  3,083,250  728,514  3,811,764  3,898,236
 December  3,155,955  731,438  3,887,393  3,822,607
 1994  January  3,257,540  580,216  3,837,756  3,872,244
 February  3,381,646  731,005  4,112,651  3,597,349
 March  3,516,620  743,813  4,260,433  3,449,567
 April  3,659,129  699,212  4,358,341  3,351,659
 May  3,793,865  738,767  4,532,632  3,177,368
 June  3,933,037  792,698  4,725,735  2,984,265
 July  4,099,174  699,803  4,798,977  2,911,023
 August  4,312,486  807,881  5,120,367  2,589,633
 September  4,506,014  841,381  5,347,395  2,362,605
 October  4,611,014  871,684  5,482,698  2,227,302
 November  4,817,854  875,416  5,693,270  2,016,730
 December  4,948,605  763,235  5,711,840  1,998,160
 1995  January  5,096,646  807,294  5,903,940  1,806,060
 February  5,278,800  811,221  6,090,021  1,619,979
 March  5,528,723  793,771  6,322,494  1,387,506
 April  5,741,780  797,902  6,539,682  1,170,318
 May  5,980,848  843,093  6,823,941  886,059
 June  6,340,534  481,633  6,822,167  887,833
 July  6,402,785  443,717  6,846,502  863,498
 August  6,428,120  442,270  6,870,390  839,610
 September  6,503,018  437,215  6,940,233  769,767
 October  6,583,344  396,605  6,979,949  730,051
 November  6,647,880  310,043  6,957,923  752,077
 December  6,700,576  286,487  6,987,063  722,937
 1996  January  6,766,607  297,001  7,063,608  646,392
 February  6,861,093  335,557  7,196,650  513,350
 March  6,907,098  293,244  7,200,342  509,658
 April  6,934,085  280,927  7,215,012  494,988
 May  6,943,620  333,140  7,276,760  433,240
 June  6,986,821  324,899  7,311,720  398,280
 July  7,022,309  339,900  7,362,209  347,791
 August  7,074,772  311,273  7,386,045  323,955
 September  7,119,167  310,562  7,429,729  280,271
 October  7,185,135  325,088  7,510,223  199,777
 November  7,242,377  337,502  7,579,879  130,121
 December  7,272,819  343,905  7,616,724  93,276
 19  -  8
147
 Table  19.2
 Telephone  Numbers  Assigned  for  Toll-  Free  Service  *  --  Continued
 800  Toll-  Free  Service
 Working  Miscellaneous  Total  Spare  800
 Year  Month  800  800  800  Numbers
 Numbers  Numbers  1/  Numbers  Still
 Assigned  Available
 1997  January  7,333,632  323,804  7,657,436  52,564
 February  7,388,696  318,571  7,707,267  2,733
 March  7,402,769  305,362  7,708,131  1,869
 April  7,411,118  296,925  7,708,043  1,957
 May  7,411,291  294,320  7,705,611  4,389
 June  7,415,591  293,802  7,709,393  607
 July  7,421,288  283,794  7,705,082  4,918
 August  7,430,733  276,024  7,706,757  3,243
 September  7,427,717  280,668  7,708,385  1,615
 October  7,433,483  276,490  7,709,973  27
 November  7,423,662  276,576  7,700,238  9,762
 December  7,429,160  267,429  7,696,589  13,411
 1998  January  7,431,789  264,143  7,695,932  14,068
 February  7,445,338  257,493  7,702,831  7,169
 March  7,455,240  249,964  7,705,204  4,796
 April  7,464,692  232,462  7,697,154  12,846
 May  7,476,270  228,409  7,704,679  5,321
 June  7,480,468  227,041  7,707,509  2,491
 July  7,485,866  221,078  7,706,944  3,056
 August  7,483,417  224,242  7,707,659  2,341
 September  7,489,271  219,080  7,708,351  1,649
 October  7,479,005  229,889  7,708,894  1,106
 November  7,478,913  228,892  7,707,805  2,195
 December  7,487,529  215,267  7,702,796  7,204
 1999  January  7,498,435  194,520  7,692,955  17,045
 February  7,504,256  192,068  7,696,324  13,676
 March  7,498,527  204,515  7,703,042  6,958
 April  7,506,452  202,241  7,708,693  1,307
 May  7,504,523  204,751  7,709,274  726
 June  7,502,118  207,061  7,709,179  821
 July  7,512,928  196,345  7,709,273  727
 August  7,514,686  194,434  7,709,120  880
 September  7,523,302  185,363  7,708,665  1,335
 October  7,493,898  215,756  7,709,654  346
 November  7,499,343  210,266  7,709,609  391
 December  7,505,737  202,416  7,708,153  1,847
 2000  January  7,486,650  223,367  7,710,017  N.  A.
 February  7,490,980  198,506  7,689,486  20,514
 March  7,516,391  193,246  7,709,637  363
 April  7,531,395  177,779  7,709,174  826
 May  7,547,157  158,776  7,705,933  4,067
 June  7,570,082  139,444  7,709,526  474
 July  7,576,696  132,065  7,708,761  1,239
 August  7,558,277  151,720  7,709,997  3
 September  7,752,091  (42,295)  7,709,796  204
 October  7,578,617  131,366  7,709,983  17
 November  7,563,824  135,636  7,699,460  10,540
 December  7,566,810  132,887  7,699,697  10,303
 2001  January  7,483,975  215,316  7,699,291  10,709
 February  7,450,121  248,257  7,698,378  11,622
 March  7,434,621  264,967  7,699,588  10,412
 April  7,407,530  292,123  7,699,653  10,347
 May  7,410,426  261,585  7,672,011  37,989
 June  7,357,279  242,106  7,599,385  110,615
 July  7,336,672  222,085  7,558,757  151,243
 19  -  9
148
 Table  19.2
 TelephoneNumbers  Assigned  for  Toll-  Free  Service  *  --  Continued
 888  Toll-  Free  Service
 Working  Miscellaneous  Total  Spare  888
 Year  Month  888  888  888  Numbers
 Numbers  Numbers  1/  Numbers  Still
 Assigned  Available
 1996  February  67,399  560,598  627,997  7,352,003
 March  267,874  568,574  836,448  7,143,552
 April  442,005  565,402  1,007,407  6,972,593
 May  707,374  542,428  1,249,802  6,730,198
 June  922,849  544,079  1,466,928  6,513,072
 July  1,157,770  549,845  1,707,615  6,272,385
 August  1,437,660  576,399  2,014,059  5,965,941
 September  1,641,519  590,345  2,231,864  5,748,136
 October  1,886,663  629,365  2,516,028  5,463,972
 November  2,074,600  622,375  2,696,975  5,283,025
 December  2,255,163  601,766  2,856,929  5,123,071
 1997  January  2,457,250  591,533  3,048,783  4,931,217
 February  2,654,984  629,997  3,284,981  4,695,019
 March  2,857,608  661,164  3,518,772  4,461,228
 April  3,097,015  646,709  3,743,724  4,236,276
 May  3,399,856  657,615  4,057,471  3,922,529
 June  3,660,984  681,981  4,342,965  3,637,035
 July  3,990,769  696,331  4,687,100  3,292,900
 August  4,345,910  742,755  5,088,665  2,891,335
 September  4,776,688  774,431  5,551,119  2,428,881
 October  5,139,455  726,515  5,865,970  2,114,030
 November  5,353,989  699,223  6,053,212  1,926,788
 December  5,551,554  729,020  6,280,574  1,699,426
 1998  January  5,760,023  719,289  6,479,312  1,500,688
 February  5,968,391  723,679  6,692,070  1,287,930
 March  6,167,479  728,415  6,895,894  1,084,106
 April  6,373,603  690,041  7,063,644  916,356
 May  6,493,156  672,776  7,165,932  814,068
 June  6,591,764  665,496  7,257,260  722,740
 July  6,705,902  661,085  7,366,987  613,013
 August  6,790,315  669,486  7,459,801  520,199
 September  6,898,718  612,254  7,510,972  469,028
 October  7,012,860  573,695  7,586,555  393,445
 November  7,054,472  572,759  7,627,231  352,769
 December  7,146,159  515,009  7,661,168  318,832
 19  -  10
149
 Table  19.2
 Telephone  Numbers  Assigned  for  Toll-  Free  Service  *  --  Continued
 888  Toll-  Free  Service
 Working  Miscellaneous  Total  Spare  888
 Year  Month  888  888  888  Numbers
 Numbers  Numbers  1/  Numbers  Still
 Assigned  Available
 1999  January  7,196,336  510,057  7,706,393  273,607
 February  7,249,001  493,132  7,742,133  237,867
 March  7,278,531  495,904  7,774,435  205,565
 April  7,324,847  234,588  7,559,435  420,565
 May  7,385,748  216,196  7,601,944  378,056
 June  7,428,424  231,697  7,660,121  319,879
 July  7,487,759  231,884  7,719,643  260,357
 August  7,546,299  233,286  7,779,585  200,415
 September  7,601,867  211,318  7,813,185  166,815
 October  7,542,131  341,720  7,883,851  96,149
 November  7,592,293  342,918  7,935,211  44,789
 December  7,643,158  324,405  7,967,563  12,437
 2000  January  7,615,927  363,960  7,979,887  113
 February  7,627,138  247,788  7,874,926  105,074
 March  7,685,423  230,035  7,915,458  64,542
 April  7,717,002  229,345  7,946,347  33,653
 May  7,758,684  157,984  7,916,668  63,332
 June  7,789,986  140,658  7,930,644  49,356
 July  7,820,147  141,713  7,961,860  18,140  August  7,806,064  167,935  7,973,999  6,001
 September  7,806,252  173,588  7,979,840  160
 October  7,804,668  175,332  7,980,000  0  November  7,795,241  172,827  7,968,068  11,932
 December  7,789,188  177,328  7,966,516  13,484
 2001  January  7,647,783  324,097  7,971,880  8,120
 February  7,628,543  345,775  7,974,318  5,682
 March  7,616,189  355,451  7,971,640  8,360
 April  7,601,821  344,060  7,945,881  34,119
 May  7,573,372  264,492  7,837,864  142,136
 June  7,548,761  270,198  7,818,959  161,041
 July  7,540,276  254,940  7,795,216  184,784
 19  -  11
150
 Table  19.2
 Telephone  Numbers  Assigned  for  Toll-  Free  Service  *  --  Continued
 877  Toll-  Free  Service
 Working  Miscellaneous  Total  Spare  877
 Year  Month  877  877  877  Numbers
 Numbers  Numbers  1/  Numbers  Still
 Assigned  Available
 1998  April  168,300  276,169  444,469  7,535,531
 May  354,303  256,712  611,015  7,368,985
 June  552,037  209,967  762,004  7,217,996
 July  759,971  179,830  939,801  7,040,199
 August  918,956  201,087  1,120,043  6,859,957
 September  1,072,046  206,714  1,278,760  6,701,240
 October  1,259,620  277,038  1,536,658  6,443,342
 November  1,386,726  292,264  1,678,990  6,301,010
 December  1,567,195  235,190  1,802,385  6,177,615
 1999  January  1,712,675  233,863  1,946,538  6,033,462
 February  1,920,715  299,430  2,220,145  5,759,855
 March  2,141,228  329,044  2,470,272  5,509,728
 April  2,410,517  403,711  2,814,228  5,165,772
 May  2,678,075  407,450  3,085,525  4,894,475
 June  2,899,466  410,026  3,309,492  4,670,508
 July  3,140,981  491,644  3,632,625  4,347,375
 August  3,472,534  456,372  3,928,906  4,051,094
 September  3,755,361  436,433  4,191,794  3,788,206
 October  4,008,681  486,968  4,495,649  3,484,351
 November  4,304,159  505,179  4,809,338  3,170,662
 December  4,528,106  575,143  5,103,249  2,876,751
 2000  January  4,882,111  573,482  5,455,593  2,524,407
 February  5,118,387  659,479  5,777,866  2,202,134
 March  5,436,297  598,702  6,034,999  1,945,001
 April  5,764,078  520,951  6,285,029  1,694,971
 May  6,098,025  469,486  6,567,511  1,412,489
 June  6,317,507  402,858  6,720,365  1,259,635
 July  6,608,186  391,545  6,999,731  980,269
 August  6,636,282  385,065  7,021,347  958,653
 September  6,539,180  496,015  7,035,195  944,805
 October  6,475,202  622,384  7,097,586  882,414
 November  6,436,613  657,271  7,093,884  886,116
 December  6,391,285  719,333  7,110,618  869,382
 2001  January  6,425,413  612,539  7,037,952  942,048
 February  6,369,360  559,994  6,929,354  1,050,646
 March  6,289,079  469,980  6,759,059  1,220,941
 April  6,249,330  537,570  6,786,900  1,193,100
 May  6,191,049  611,661  6,802,710  1,177,290
 June  6,094,898  715,097  6,809,995  1,170,005
 July  6,147,253  602,984  6,750,237  1,229,763
 19  -  12
151
 Table  19.2
 Telephone  Numbers  Assigned  for  Toll-  Free  Service  *  --  Continued
 866  Toll-  Free  Service
 Working  Miscellaneous  Total  Spare  866
 Year  Month  866  866  866  Numbers
 Numbers  Numbers  1/  Numbers  Still
 Assigned  Available
 2000  July  8,714  135,238  143,952  7,836,048
 August  384,164  213,442  597,606  7,382,394
 September  672,250  155,646  827,896  7,152,104
 October  931,620  161,091  1,092,711  6,887,289
 November  1,200,025  139,026  1,339,051  6,640,949
 December  1,274,732  148,548  1,423,280  6,556,720
 2001  January  1,485,551  190,096  1,675,647  6,304,353
 February  1,597,785  224,368  1,822,153  6,157,847
 March  1,652,602  361,888  2,014,490  5,965,510
 April  1,726,291  356,526  2,082,817  5,897,183
 May  1,868,490  345,639  2,214,129  5,765,871
 June  1,944,520  362,880  2,307,400  5,672,600
 July  2,011,779  342,485  2,354,264  5,625,736
 *  Toll-  free  (800)  service  was  initially  offered  by  AT&  T  in  1967.  On  May  3,  1993,  procedures  for  routing
 toll-  free  calls  were  changed  and  800  numbers  were  made  "portable"  so  customers  who  switched  service
 providers  could  retain  their  numbers.  Due  to  the  growth  in  toll-  free  numbers,  a  new  toll-  free  calling  code,
 888,  was  added  in  March  1996  giving  the  ability  to  assign  about  8  million  new  toll-  free  numbers.  A  third
 toll-  free  calling  code,  877,  was  added  in  April  1998  and  a  fourth  toll-  free  code,  866,  was  added  in  Nov.
 2000.
 1/  Miscellaneous  numbers  include  those  in  the  800,  888,  877,  and  866  service  management  systems
 maintained  by  Database  Service  Management,  Inc.,  and  categorized  as  reserved,  assigned  but  not  yet
 activated,  recently  disconnected,  or  suspended.
 19  -  13
152
 Table  19.3  Dialing  Patterns  of  the  United  States
 Number  of  Digits  Necessary  to  Dial  Local  and  Toll  Calls  (As  of  March  2001)
 Local  Calls  Local  Calls  Toll  Calls  Toll  Calls  Toll  Calls
 Within  Same  Between  Within  Same  Between  Require
 State  Area  Code  Area  Codes  Area  Code  Area  Codes  Dialing  1  +
 Alabama  7  7  1  1  +  10  1  +  10  Yes
 Alaska  7  1  +  10  1  +  10  1  +  10  Yes
 Arizona  7  10  2  1  +  10  1  +  10  Yes
 Arkansas  7  7  1  +  10  1  +  10  Yes
 California  7  1  +  10  7  1  +  10  No
 Colorado  7  3  10  4  1  +  10  1  +  10  Yes
 Connecticut  7  5  10  1  +  10  1  +  10  Yes
 Delaware  7  10  1  +  10  1  +  10  Yes
 District  of  Columbia  7  10  NA  1  +  10  Yes
 Florida  7  6  10  1  +  10  1  +  10  Yes
 Georgia  7  7  10  1  +  10  1  +  10  Yes
 Hawaii  7  NA  1  +  10  1  +  10  Yes
 Idaho  7  7  1  +  10  1  +  10  Yes
 Illinois  7  8  1  +  10  1  +  10  1  +  10  Yes
 Indiana  7  7  1  +  10  1  +  10  Yes
 Iowa  7  10  9  1  +  10  1  +  10  Yes
 Kansas  7  7  10  1  +  10  1  +  10  Yes
 Kentucky  7  7  1  +  10  1  +  10  Yes
 Louisiana  7  1  +  10  11  1  +  10  1  +  10  Yes
 Maine  7  1  +  10  1  +  10  1  +  10  Yes
 Maryland  10  10  1  +  10  1  +  10  Yes
 Massachusetts  10  12  10  1  +  10  1  +  10  Yes
 Michigan  7  13  1  +  10  14  1  +  10  1  +  10  Yes
 Minnesota  7  10  15  1  +  10  1  +  10  Yes
 Mississippi  7  7  1  +  10  1  +  10  Yes
 Missouri  7  16  1+  10  17  10  18  1  +  10  No
 Montana  7  7  1  +  10  1  +  10  Yes
 Nebraska  7  7  1  +  10  1  +  10  Yes
 Nevada  7  1  +  10  1  +  10  1  +  10  Yes
 New  Hampshire  7  1  +  10  7  1  +  10  No
 New  Jersey  7  19  1  +  10  7  19  1  +  10  No
 New  Mexico  7  7  1  +  10  1  +  10  Yes
 New  York  7  1  +  10  7  1  +  10  No
 North  Carolina  10  10  1  +  10  1  +  10  Yes
 North  Dakota  7  7  1  +  10  1  +  10  Yes
 Ohio  7  20  1  +  10  21  1  +  10  1  +  10  Yes
 Oklahoma  7  7  1  +  10  1  +  10  Yes
 Oregon  10  22  10  22  1  +  10  1  +  10  Yes
 Pennsylvania  10  23  10  24  7  23  1  +  10  No
 Rhode  Island  7  1  +  10  7  1  +  10  No
 South  Dakota  7  7  1  +  10  1  +  10  Yes
 Tennessee  7  7  25  1  +  10  1  +  10  Yes
 Texas  7  26  10  1  +  10  1  +  10  Yes
 Utah  7  10  27  1  +  10  1  +  10  Yes
 Virginia  7  28  10  29  1  +  10  1  +  10  Yes
 Washington  7  30  10  31  1  +  10  1  +  10  Yes
 West  Virginia  7  1  +  10  1  +  10  1  +  10  Yes
 Wisconsin  7  1  +  10  1  +  10  1  +  10  Yes
 Wyoming  7  7  1  +  10  1  +  10  Yes
 NA  -  Not  Applicable.
 Source:  Planning  letters  for  individual  area  codes.  Planning  letters  are  available  at  <www.  nanpa.  com>.
 19  -  14
153
 Notes  to  Table  19.3
 1  In  area  code  251  1+  10-  digit  dialing  is  used.
 2  In  area  code  520  7-  digit  dialing  is  used.
 3  In  area  codes  303  and  720,  10-  digit  dialing  is  used.
 4  In  area  code  970  7-  digit  dialing  is  used.
 5  In  area  codes  475  and  959,  10-  digit  dialing  is  used.
 6  In  area  codes  305,  321,  407  and  786,  10-  digit  dialing  is  used.
 7  In  area  codes  404,  470,  678  and  770,  10-  digit  dialing  is  used.
 8  In  area  codes  224,  331,  464  and  847,  10-  digit  dialing  is  used.
 9  In  area  codes  319  and  712,  7-  digit  dialing  is  used.
 10  In  area  codes  316  and  620,  10-  digit  dialing  is  used.
 11  In  area  codes  504  and  985,  10-  digit  dialing  is  used
 12  In  area  code  413  7-  digit  dialing  is  used.
 13  In  area  codes  679  and  947,  10-  digit  dialing  is  used.
 14  In  area  code  989  10-  digit  dialing  is  used.
 15  In  area  codes  218,  330  and  507,  7-  digit  dialing  is  used.
 16  In  area  codes  557  and  975,  10-  digit  dialing  is  used.
 17  In  area  codes  314,  557  and  975,  10-  digit  dialing  is  used.
 18  In  area  codes  557  and  975,  1+  10-  digit  dialing  is  used.
 19  In  area  codes  551,  848  and  862,  10-  digit  dialing  is  used.
 20  In  area  codes  234,  330,  419  and  567,  10-  digit  dialing  is  used.
 21  In  area  codes  419  and  567,  10-  digit  dialing  is  used.
 22  In  area  code  541  7-  digit  dialing  is  used.
 23  In  area  codes  412,  570,  717,  724  and  814,  7-  digit  dialing  is  used.
 24  In  area  codes  412,  570,  717,  724  and  814,  1+  10-  digit  dialing  is  used.
 25  In  area  code  731  10-  digit  dialing  is  used.
 26  In  area  codes  214,  281,  469,  682,  713,  817,  832  and  972,  10-  digit  dialing  is  used.
 27  In  area  code  435,  7-  digit  dialing  is  used.
 28  In  area  codes  571  and  703,  10-  digit  dialing  is  used.
 29  In  area  code  434,  10-  digit  dialing  is  used.
 30  In  area  codes  360  and  564,  10-  digit  dialing  is  used.
 31  In  area  code  509,  7-  digit  dialing  is  used.
 19  -  15
154
 20-  1
 20  Universal  Service
 The  high-  cost  support  mechanisms  enable  areas  with  very  high  costs  to  recover  some  of  these  costs  from  the  support  mechanisms,  leaving  a  smaller  remainder  of  the  costs  to  be  recovered  through
 end-  user  rates.  In  this  manner,  the  high-  cost  support  mechanisms  are  intended  to  hold  down  rates  and  thereby  further  one  of  the  most  important  goals  of  federal  and  state  regulation  --  the  preservation  and
 advancement  of  universal  telephone  service.
 There  currently  are  five  high-  cost  support  mechanisms.  These  include  three  existing  mechanisms  for  embedded  high-  cost  loop  (HCL)  support  1  ,  long-  term  support  (LTS),  and  local  switching  support
 (LSS).  Two  new  mechanisms  have  been  added  since  our  last  report.  These  are  the  forward-  looking  high-  cost  model  support  and  the  interstate  access  universal  service  support.
 The  universal  service  fund  (USF)  high-  cost  loop  support  provides  assistance  to  companies  with  above  average  non-  traffic-  sensitive  local  loop  costs  --  a  term  that  refers  to  the  costs  of  providing  the
 loop  connection  between  the  customers  and  the  central  office.  The  second  high-  cost  support  mechanism,  LTS,  is  also  related  to  non-  traffic-  sensitive  costs.  LTS  provides  support  to  members  of  the
 NECA  common  line  pool,  to  allow  them  to  charge  a  below-  cost  carrier  common  line  rate.  The  third  high-  cost  support  mechanism,  LSS,  is  related  to  traffic-  sensitive  local  switching  costs.  LSS  provides
 support  to  LECs  with  study  areas  of  50,000  or  fewer  access  lines  to  help  defray  the  higher  switching  cost  of  small  LECs.
 In  October  1999,  the  Commission  adopted  the  fourth  mechanism,  a  new  high-  cost  support  mechanism  for  non-  rural  carriers.  The  new  mechanism  is  based  on  the  forward-  looking  costs  of
 providing  supported  services  as  determined  by  the  Commission's  cost  model.  For  each  state,  the  cost  model  calculates  the  wire  center  average  forward-  looking  cost  per  line  incurred  by  non-  rural  carriers  to
 provide  supported  services.  These  wire  center  average  costs  are  then  averaged  at  the  statewide  level  to  determine  the  statewide  average  forward-  looking  cost  per  line.  The  forward-  looking  support
 mechanism  provides  support  to  non-  rural  carriers  in  those  states  that  have  a  statewide  average  forward-looking  cost  per  line  greater  than  the  national  benchmark,  which  is  set  at  135  percent  of  the  national
 average  forward-  looking  cost  per  line.  2
 On  May  31,  2000,  the  Commission  established  the  fifth  mechanism,  an  explicit  interstate  access  universal  service  support  mechanism  for  price-  cap  carriers  to  replace  the  implicit  support  previously
 collected  through  interstate  access  charges.  Like  LTS,  the  purpose  of  this  new  mechanism  is  to
 1  This  was  formerly  referred  to  as  the  Universal  Service  Fund,  and  still  bears  that  name  in  the  Commission
 rules.  It  is  now  referred  to  as  High-  Cost  Loop  support  to  avoid  confusion  with  the  new,  more  comprehensive  universal  service  support  mechanisms  that  the  Commission  developed  to  implement  the
 1996  Act.  See  47  CFR    36.601.
 2  But  cf.  Qwest  Corp.  v.  FCC,  2001  WL  864222  (10  th  Cir.  July  31,  2001)  (reversing  and  remanding  the
 Ninth  Order  of  the  FCC  because  it  does  not  provide  sufficient  reasoning  or  record  evidence  to  support  [the]  reasonableness  [of  its  decision].)
155
 20-  2
 provide  explicit  support  to  ensure  reasonably  affordable  interstate  rates.  This  is  in  contrast  to  the  Commission's  other  high-  cost  support  mechanisms,  which  provide  support  to  enable  states  to  ensure
 reasonably  affordable  and  comparable  intrastate  rates.
 Table  20.1  shows  USF,  LTS,  LSS,  forward-  looking  high-  cost  model  support,  and  interstate  access  universal  service  support  payments  from  1986  to  2000.  Table  20.2  shows  projected  payments
 by  state  for  2000.  It  should  be  noted  that  these  projections  do  not  include  subsequent  quarterly  true-ups.
 Eligible  schools  and  libraries  receive  telecommunications  services,  Internet  access,  and  internal  connections  at  discounts  that  range  from  20  percent  to  90  percent.  The  level  of  the  discount  is  based
 on  eligibility  for  the  national  school  lunch  program,  location  in  a  rural  area,  and  the  total  amount  of  money  requested  by  all  schools  and  libraries.  These  schools  and  libraries  are  eligible  to  receive  support
 for  services  that  qualify  as  telecommunications  services,  Internet  access,  or  internal  connections.
 The  portion  of  universal  service  support  designated  for  health  care  providers  is  designed  to  allow  rural  health  care  providers  to  purchase  telecommunications  services  at  the  same  rates  that  health
 care  providers  located  in  urban  areas  pay  for  these  services.  The  Commission's  universal  service  rules  permit  eligible  health  care  providers  to  receive  support  for  any  telecommunications  service  and  for
 distance  charges  for  the  distance  between  the  rural  health  care  provider  and  the  nearest  large  city.  The  Commission  defined  "nearest  large  city"  as  the  closest  city  in  the  state  with  a  population  of  at  least
 50,000.  In  addition,  any  health  care  provider  that  cannot  obtain  toll-  free  Internet  access  is  entitled  to  receive  the  lesser  of  $180  of  toll  charges  per  month,  or  the  toll  charges  incurred  for  30  hours  per  month,
 for  telecommunications  access  to  an  Internet  service  provider.
 Table  20.3  shows,  on  a  state-  by-  state  basis,  funding  commitments  to  schools  and  libraries  for  the  July  1,  1999  -  June  30,  2000  funding  year.  The  commitments  are  broken  down  by  type  of  service
 that  was  funded.  Table  20.4  shows,  on  a  state-  by-  state  basis,  funding  commitments  and  funding  authorizations  to  rural  health  care  providers  for  the  same  period.  Funding  authorizations  represent  the
 penultimate  step  before  actual  disbursement  of  funds,  and  reflect  actual  disbursements  to  providers  in  those  states.
 Carriers  contribute  to  universal  service  based  on  their  end-  user  revenues.  Since  November  1999,  all  contributions  to  USF  are  based  on  interstate  end-  user  revenues.  Table  20.5  shows  interstate
 and  intrastate  contribution  rates  since  the  first  quarter  of  1998.
156
 Year  High-  Cost  Loop  Support  Long-  Term  Support  Switching  Support  New  High-  Cost  Model  Support  Interstate  Access  Support  Total  Support  Cumulative  Payments
 1986  $56  $0  NA  $0  $0  $56  $56
 1987  126  0  NA  0  0  126  181
 1988  183  0  NA  0  0  183  365
 1989  265  236  NA  0  0  500  865
 1990  339  263  NA  0  0  602  1,467
 1991  485  272  NA  0  0  757  2,223
 1992  609  306  NA  0  0  915  3,138
 1993  705  323  $311  0  0  1,339  4,477
 1994  725  347  304  0  0  1,376  5,853
 1995  750  382  325  0  0  1,457  7,310
 1996  763  426  348  0  0  1,536  8,846
 1997  794  470  351  0  0  1,614  10,460
 1998  827  473  413  0  0  1,712  12,173
 1999  864  473  383  0  0  1,720  13,893
 2000  872  479  391  219  276  2,237  16,130
 NA  -  Not  Available.
 Sources:  Industry  Analysis  Division,  Monitoring  Report  and  USAC  filings.
 (In  Millions  of  Dollars)
 Table  20.1
 Universal  Service  Fund  Payment  History
 20  -  3
157
 Table  20.2
 Projected  High-  Cost  Support  Payments  by  State:  2000  (In  Thousands  of  Dollars)
 High-  Cost  Loop
 Support
 Long-  Term
 Loop  Support
 Local  Switching
 Support
 New  High-  Cost
 Model  Support
 Interstate
 Access  Support  Total  Support
 Alabama  $13,188  $7,335  $6,554  $51,744  $8,830  $87,650  Alaska  38,841  16,954  15,444  0  0  71,240
 American  Somoa  0  258  333  0  0  591  Arizona  19,902  3,111  10,327  0  2,075  35,414
 Arkansas  46,309  15,394  7,767  0  3,417  72,887  California  28,553  13,271  7,454  0  16,413  65,692
 Colorado  28,096  12,112  4,031  0  8,130  52,369  Connecticut  0  163  723  0  0  886
 Delaware  0  0  0  0  195  195  District  of  Columbia  0  0  0  0  0  0
 Florida  10,582  5,321  3,756  0  30,807  50,466  Georgia  42,691  17,863  12,907  0  6,066  79,527
 Guam  1,319  1,946  0  0  0  3,266  Hawaii  379  159  786  0  732  2,055
 Idaho  18,866  3,459  6,609  0  6,916  35,850  Illinois  6,704  6,212  11,884  0  6,593  31,393
 Indiana  4,921  5,134  9,040  0  11,637  30,731  Iowa  4,381  7,237  15,023  0  3,790  30,431
 Kansas  38,856  11,452  13,599  0  3,336  67,243  Kentucky  9,496  4,899  4,965  1,212  9,033  29,606
 Louisiana  43,967  16,729  6,710  0  5,441  72,848  Maine  6,038  6,009  7,474  10,776  417  30,713
 Maryland  0  91  461  0  1,842  2,394  Massachusetts  21  102  470  0  675  1,269
 Michigan  21,791  9,821  7,869  0  90  39,571  Minnesota  16,598  12,154  17,305  0  2,037  48,094
 Mississippi  14,507  5,076  3,802  103,707  5,959  133,052  Missouri  39,819  10,660  8,185  0  7,715  66,380
 Montana  25,241  10,009  9,332  1,542  267  46,391  Nebraska  8,071  3,861  11,089  0  599  23,621
 Nevada  4,420  916  6,354  0  2,990  14,680  New  Hampshire  1,147  1,512  4,893  0  992  8,544
 New  Jersey  0  0  970  0  2,534  3,504  New  Mexico  18,576  6,160  9,122  0  3,843  37,701
 New  York  14,992  6,806  18,518  0  12,706  53,021  North  Carolina  10,577  12,053  5,935  0  5,739  34,304
 North  Dakota  7,991  5,982  10,478  0  517  24,969  Northern  Mariana  Islands  2,457  0  727  0  126  3,310
 Ohio  5,822  5,213  4,654  0  3,897  19,587  Oklahoma  32,957  16,412  13,178  0  3,395  65,942
 Oregon  22,444  9,254  7,366  0  7,824  46,888  Pennsylvania  1,095  14,137  7,010  0  6,570  28,812
 Puerto  Rico  51,970  91,622  0  0  0  143,591  Rhode  Island  0  0  0  0  25  25
 South  Carolina  20,182  11,098  10,728  0  8,334  50,342  South  Dakota  5,946  5,040  9,934  0  33  20,953
 Tennessee  11,913  10,393  7,550  0  4,496  34,352  Texas  69,832  29,651  18,153  0  18,810  136,446
 Utah  3,908  1,488  5,367  0  1,584  12,347  Vermont  3,397  2,389  4,836  15,104  188  25,913
 Virgin  Islands  16,947  7,206  0  0  0  24,153  Virginia  4,369  3,342  4,096  0  25,319  37,126
 Washington  23,499  13,268  5,845  0  8,646  51,259  West  Virginia  17,540  1,061  3,534  31,235  9,691  63,061
 Wisconsin  17,633  12,832  22,103  0  1,292  53,860  Wyoming  13,730  4,501  5,584  3,612  2,959  30,386
 Total  $872,481  $479,134  $390,833  $218,931  $275,523  $2,236,901
 Sources:  Industry  Analysis  Division,  Monitoring  Report  and  USAC  filings.
 20  -  4
158
 Table  20.3  Schools  and  Libraries  Funding  Commitments  by  State  and  by  Type  of  Service
 (Funding  Period:  July  1,  1999  Through  June  30,  2000
 Funds  Committed  Through  February  24,  2001)  1
 Internal  Connections  Internet  Access  Telecom.  &  Dedicated  Totals
 Funds  Funding  Funds  Funding  Funds  Funding  Funds  Funding
 State/  Territory  Committed  Commitments  Committed  Commitments  Committed  Commitments  Committed  Commitments
 Alabama  $16,458,562  696  $3,272,547  216  $6,476,305  730  $26,207,413  1,642
 Alaska  3,450,841  211  621,959  57  7,499,734  356  11,572,535  624
 American  Samoa  1,179,617  2  1,046,886  2  477,318  1  2,703,821  5
 Arizona  30,888,694  775  1,233,584  168  6,026,777  657  38,149,055  1,600
 Arkansas  3,298,168  260  2,579,882  34  4,437,482  644  10,315,531  938
 California  177,529,778  4,028  8,413,523  459  49,520,150  2,298  235,463,452  6,785
 Colorado  3,820,026  280  658,597  185  7,873,912  972  12,352,535  1,437
 Connecticut  24,219,918  370  1,590,919  146  6,298,082  617  32,108,919  1,133
 Delaware  33,192  14  35,155  8  1,303,015  157  1,371,361  179
 District  of  Columbia  4,990,872  88  449,666  60  3,987,419  360  9,427,956  508
 Florida  40,661,640  2,267  4,954,982  161  28,085,059  1,184  73,701,681  3,612
 Georgia  66,763,537  1,302  4,631,124  162  19,651,987  652  91,046,648  2,116
 Hawaii  3,502,481  621  281,952  16  1,542,166  623  5,326,598  1,260
 Idaho  2,528,245  151  367,141  109  1,832,226  314  4,727,611  574
 Illinois  132,720,646  1,668  3,571,923  505  25,070,170  2,581  161,362,739  4,754
 Indiana  9,375,757  356  1,922,715  177  11,503,616  1,601  22,802,089  2,134
 Iowa  3,659,353  586  910,413  421  3,380,352  1,249  7,950,118  2,256
 Kansas  7,541,237  305  1,485,631  346  5,902,400  940  14,929,268  1,591
 Kentucky  42,424,395  1,731  1,423,001  115  13,068,542  1,042  56,915,938  2,888
 Louisiana  22,981,410  1,482  4,876,371  208  9,734,905  1,008  37,592,687  2,698
 Maine  1,447,201  268  247,379  26  1,919,460  503  3,614,040  797
 Maryland  10,477,378  209  827,698  84  10,743,738  347  22,048,815  640
 Massachusetts  19,271,003  574  1,575,100  273  12,152,732  945  32,998,835  1,792
 Michigan  51,093,826  1,895  5,491,306  495  22,285,146  2,108  78,870,278  4,498
 Minnesota  14,413,890  628  1,380,954  196  13,601,737  1,237  29,396,581  2,061
 Mississippi  16,660,744  1,276  2,027,063  217  11,910,503  962  30,598,310  2,455
 Missouri  9,105,392  1,330  9,284,241  2,402  10,375,549  1,178  28,765,182  4,910
 Montana  1,349,474  171  586,848  266  1,783,877  642  3,720,198  1,079
 Nebraska  919,884  97  512,112  193  5,259,355  1,121  6,691,352  1,411
 Nevada  117,670  5  87,282  14  2,932,278  95  3,137,231  114
 New  Hampshire  185,136  61  204,434  77  878,973  331  1,268,543  469
 New  Jersey  24,854,126  804  2,574,228  364  16,474,573  1,379  43,902,927  2,547
 New  Mexico  22,916,532  221  740,844  83  5,448,714  214  29,106,091  518
 New  York  104,860,594  2,878  15,486,192  799  72,256,892  5,499  192,603,678  9,176
 North  Carolina  18,499,774  725  3,711,385  298  14,466,076  1,011  36,677,235  2,034
 North  Dakota  657,866  239  216,656  83  1,311,431  444  2,185,954  766
 Northern  Mariana  Is.  0  0  9,757  1  85,643  15  95,401  16
 Ohio  21,800,665  973  4,938,518  1,075  16,408,561  1,828  43,147,744  3,876
 Oklahoma  20,376,022  999  3,596,435  425  9,953,398  1,963  33,925,855  3,387
 Oregon  4,226,385  415  592,420  105  6,106,533  664  10,925,337  1,184
 Pennsylvania  34,306,167  754  3,501,410  556  18,463,096  2,416  56,270,673  3,726
 Puerto  Rico  42,178,990  155  8,248,795  113  16,851,991  204  67,279,777  472
 Rhode  Island  4,004,239  184  401,588  37  3,418,082  201  7,823,910  422
 South  Carolina  16,625,160  878  229,899  17  11,801,061  312  28,656,120  1,207
 South  Dakota  586,268  175  519,169  163  1,008,608  333  2,114,045  671
 Tennessee  31,132,713  2,786  18,395,529  282  13,236,277  597  62,764,519  3,665
 Texas  88,424,026  2,656  5,364,396  654  41,147,783  2,330  134,936,206  5,640
 Utah  428,430  53  2,028,688  91  3,271,463  309  5,728,582  453
 Vermont  199,444  81  280,625  99  1,108,464  454  1,588,533  634
 Virgin  Islands  2,044,407  11  220,321  7  82,789  9  2,347,516  27
 Virginia  10,109,017  460  1,832,619  194  13,235,293  704  25,176,929  1,358
 Washington  19,717,373  1,110  543,581  110  12,505,611  1,067  32,766,565  2,287
 West  Virginia  4,540,641  2,023  2,294,972  1,095  2,524,791  1,905  9,360,404  5,023
 Wisconsin  10,092,504  467  2,985,766  378  12,983,446  1,111  26,061,716  1,956
 Wyoming  2,941,437  126  180,353  75  1,846,414  275  4,968,205  476
 Totals  $1,208,592,749  42,880  $145,446,537  14,902  $603,511,956  52,699  $1,957,551,242  110,481
 1  Because  of  the  appeals  process,  funding  commitments  have  been  made  after  the  program  year  ended  on  June  30,  2000.
 Source:  USAC  data.  Rollups  performed  by  the  Industry  Analysis  Division,  FCC.
 20  -  5
159
 Table  20.4
 Rural  Health  Care  Funding  Commitments  and  Authorizations  for  Payment  by  State
 (Funding  Period:  July  1,  1999  Through  June  30,  2000
 Activity  Through  December  31,  2000)
 Total  Commitments  Total  Authorizations
 Funds  to  Funds  Authorized  for
 State  Committed  Providers  for  Payment  Providers
 Alabama  $0  0  $0  0
 Alaska  4,662,920  120  1,271,530  36
 Arizona  171,961  21  34,138  10
 Arkansas  85,194  25  10,731  10
 California  87,663  14  85,711  13
 Colorado  48,531  10  0  0
 Connecticut  0  0  0  0
 Delaware  0  0  0  0
 District  of  Columbia  0  0  0  0
 Florida  0  0  0  0
 Georgia  0  0  0  0
 Hawaii  86,491  10  85,358  9
 Idaho  26,501  6  8,975  1
 Illinois  64,289  12  0  0
 Indiana  0  0  0  0
 Iowa  20,070  14  3,551  2
 Kansas  138,223  51  82,598  46
 Kentucky  0  0  0  0
 Louisiana  3,958  1  0  0
 Maine  0  0  0  0
 Maryland  0  0  0  0
 Massachusetts  0  0  0  0
 Michigan  112,672  15  4,430  1
 Minnesota  229,771  56  35,224  8
 Mississippi  30,023  9  4,034  2
 Missouri  36,550  7  16,371  4
 Montana  135,713  27  71,124  13
 Nebraska  264,679  13  224,613  9
 Nevada  0  0  0  0
 New  Hampshire  18,463  5  0  0
 New  Jersey  0  0  0  0
 New  Mexico  135,942  40  26,289  7
 New  York  168  1  0  0
 North  Carolina  81,856  14  37,036  8
 North  Dakota  53,647  16  4,155  1
 Ohio  31,761  8  24,946  5
 Oklahoma  9,931  3  9,931  3
 Oregon  4,993  3  4,993  3
 Pennsylvania  0  0  0  0
 Rhode  Island  0  0  0  0
 South  Carolina  9,943  2  4,636  1
 South  Dakota  37,725  22  15,435  6
 Tennessee  5,052  3  0  0
 Texas  93,606  18  6,821  7
 Utah  0  0  0  0
 Vermont  29  1  0  0
 Virginia  3,608  1  0  0
 Washington  18,095  10  8,660  6
 West  Virginia  804  2  0  0
 Wisconsin  4,157  6  0  0
 Wyoming  715  1  0  0
 Totals  $6,715,704  567  $2,081,290  211
 Source:  USAC  data.  Rollups  performed  by  the  Industry  Analysis  Division,  FCC.
 20  -  6
160
 Year  Period
 High-  Cost  &
 Low-  Income
 Support
 Schools,
 Libraries,  &
 Rural  Health
 Care  Support
 All  Support
 High-  Cost  &
 Low-  Income
 Support
 Schools,
 Libraries,  &
 Rural  Health
 Care  Support
 All  Support
 1998  First  Quarter  3.19  %  0.72  %  3.91  %  0.00  %  0.72  %  0.72  %
 Second  Quarter  3.14  0.76  3.90  0.00  0.76  0.76
 Third  Quarter  3.14  0.75  3.89  0.00  0.75  0.75
 Fourth  Quarter  3.18  0.75  3.93  0.00  0.75  0.75
 1999  First  Quarter  3.18  0.58  3.76  0.00  0.58  0.58
 Second  Quarter  3.05  0.57  3.62  0.00  0.57  0.57
 Third  Quarter  2.94  0.99  3.93  0.00  0.99  0.99
 Fourth  Quarter  2.89  1.10  3.99  0.00  1.10  1.10
 2000  First  Quarter  3.27  2.61  5.88  0.00  0.00  0.00
 Second  Quarter  3.21  2.50  5.71  0.00  0.00  0.00
 Third  Quarter  3.77  1.77  5.54  0.00  0.00  0.00
 Fourth  Quarter  3.88  1.79  5.67  0.00  0.00  0.00
 2001  First  Quarter  4.07  2.61  6.68  0.00  0.00  0.00
 Second  Quarter  4.18  2.70  6.88  0.00  0.00  0.00
 Third  Quarter  4.15  2.74  6.89  0.00  0.00  0.00
 Source:  Quarterly  public  notices  on  universal  service  contribution  factors  in  CC  Docket  96-  45.
 Factors  for  Intrastate  End-  User  Revenues  Factors  for  Interstate  End-  User  Revenues
 Universal  Service  Fund  Factors
 Table  20.5
 0%  1%
 2%  3%
 4%  5%
 6%  7%
 1998Q1  1998Q3  1999Q1  1999Q3  2000Q1  2000Q3  2001Q1  2001Q3
 Chart  20.1
 Interstate  Universal  Service  Fund  Factors
 High-  Cost  &  Low-  Income  Support  Schools,  Libraries,  &  Rural  Health  Care  Support
 0%
 1%
 2%
 3%
 4%
 5%
 6%
 7%
 1998Q1  1998Q3  1999Q1  1999Q3  2000Q1  2000Q3  2001Q1  2001Q3
 Chart  20.2
 Intrastate  Universal  Service  Fund  Factors
 High-  Cost  &  Low-  Income  Support  Schools,  Libraries,  &  Rural  Health  Care  Support
 20  -  7
161
 21-  A
 21  Appendix  A    Sources  of  Telecommunications  Information
 The  information  in  this  report  and,  in  many  cases,  more  detailed  information  can  be  downloaded  from  the  FCC-  State  Link  Internet  site  at  <www.  fcc.  gov/  ccb/  stats>.
 Printed  copies  of  various  statistical  reports  are  available  for  reference  in  the  FCC's  Reference  Information  Center,  Courtyard  Level,  445  12th  Street,  S.  W.,  and  from  the  Commission's  duplicating
 contractor,  International  Transcription  Services,  Inc.  (ITS),  202-  857-  3800.
 Additional  information  on  regulated  carriers,  including  investments,  revenues,  expenses,  and  earnings,  is  contained  in  the  annual  Statistics  of  Communications  Common  Carriers.  The  60th
 Anniversary  edition  (1999/  2000)  can  be  purchased  from  the  U.  S.  Government  Printing  Office  (202-  512-  1800)  and  can  be  found  on  the  FCC-  State  Link.
 Filings  with  the  Securities  and  Exchange  Commission,  such  as  the  annual  reports  on  Form  10-  K,  can  be  downloaded  from  the  Edgar  Internet  site  at  <www.  sec.  gov>.
 The  names,  addresses  and  telephone  numbers  for  companies  in  the  telephone  industry  are  published  in  the  Industry  Analysis  Division's  Carrier  Locator,  which  can  also  be  downloaded  from  the
 FCC-  State  Link.
 The  information  on  consumer  expenditures  (Table  3.1),  employment  (Tables  5.1  and  5.2),  and  price  indices  (Tables  13.1  -  13.3)  comes  from  the  Bureau  of  Labor  Statistics  and  can  be  found  on  the
 Internet  at  <www.  bls.  gov/  blshome.  htm>.
 FCC  rules  require  carriers  to  provide  more  detailed  traffic  data  about  international  telephone  service  than  about  domestic  service.  Because  of  delays  in  international  settlements,  such  information  is
 typically  received  by  the  Commission  much  later  than  domestic  data  and  is  usually  published  separately.  Tables  6.1  -  6.5  contain  summary  information  on  international  telephone  service.  More  detailed
 international  data  are  available  from  International  Telecommunications  Data  and  Trends  in  the  International  Telecommunications  Industry,  both  of  which  are  published  by  the  Industry  Analysis
 Division  and  can  also  be  found  on  the  FCC-  State  Link.
 Table  10.5,  on  carrier  identification  codes,  and  Table  19.1,  on  area  codes,  come  from  the  North  American  Numbering  Plan  Administration  (NANPA),  which  is  part  of  Neustar,  Inc.  Additional
 information  on  NANPA  can  be  found  on  the  Internet  at  <www.  nanpa.  com>.
 The  information  on  wireless  telephone  service  shown  in  Tables  12.2  and  12.3  was  prepared  from  data  received  from  the  Cellular  Telecommunications  &  Internet  Association  (CTIA),  1133  21st
 Street  N.  W.,  Washington,  D.  C.  20036,  202-  785-  0081.  CTIA  can  be  found  on  the  Internet  at  <www.  wow-  com.  com>.
 TNS  Telecoms  (TNS)  has  donated  databases  containing  information  on  residential  phone  usage  to  the  Commission.  TNS  has  granted  the  Commission  permission  to  use  these  databases  for  research
162
 21-  B
 purposes  and  to  publish  the  results.  The  1995  survey  is  known  as  Bill  Harvesting  II  and  the  1996  survey,  Bill  Harvesting  III.  The  expanded  1997  survey,  which  contains  over  twice  as  many
 observations,  was  conducted  by  both  TNS  Telecoms  and  by  Market  Facts,  Inc.  and  is  known  as  TLC  MarketShare  Monitor.  Tables  10.9  10.10,  and  15.1  -  15.6  come  from  these  databases.  For
 additional  information,  TNS  Telecoms  can  be  contacted  by  phone  at  (215)  886-  9200,  and  by  e-  mail  at  info@  pnr.  com.  Their  address  is  101  Greenwood  Avenue,  Suite  502,  Jenkinstown,  PA  19046.
 Copies  of  NTIAs  report  Falling  Through  the  Net:  Toward  Digital  Inclusion  can  be  obtained  through  NTIAs  web  site  at  <www.  ntia.  doc.  gov>  or  by  contacting  NTIAs  Office  of  Public
 Affairs  at  (202)  482-  7002.
 Tables  18.1-  18.3  contain  information  from  the  ARMIS  43-  07  reports  for  the  BOCs.  Individual  carrier  information  can  be  obtained  from  the  ARMIS  web  page  at  <www.  fcc.  gov/  ccb/  armis/  db>.
 Chart  18.1  shows  the  number  of  patents  granted  for  telecommunications.  Additional  information  on  U.  S.  patents  can  be  found  on  the  Internet  at  <www.  uspto.  gov>.
 The  United  States  Telecom  Association  (USTA)  (1401  H  Street  N.  W.,  Washington,  D.  C.  20005,  202-  326-  7300)  represents  most  incumbent  local  telephone  companies.  Like  many  trade
 associations,  it  collects  information  from  each  of  its  members.  Annually,  it  publishes  and  sells  statistical  publications  such  as  Statistics  of  the  Local  Exchange  Carriers.  USTA  can  be  found  on  the  Internet
 at  www.  usta.  org>.
 The  Alliance  for  Local  Telecommunications  Services  (ALTS)  (888  17  th  Street  N.  W.,  Suite  900,  Washington,  D.  C.  20006,  202-  969-  2587)  represents  many  of  the  competitive  local  exchange  carriers.
 They  can  be  found  on  the  Internet  at  <www.  alts.  org>.  Their  annual  report,  The  State  of  Local  Competition  2001,  is  also  available  on  their  web  site.
163
 22-  A
 22  Appendix  B    Contacting  the  Report  Authors
 Trends  in  Telephone  Service  was  prepared  by  the  Industry  Analysis  Division,  Common  Carrier  Bureau,  Federal  Communications  Commission.  Principal  authors  of  the  report  can  be  contacted
 at  their  electronic  mail  addresses  or  by  calling  the  Industry  Analysis  Division  at  202-  418-  0940.  Users  of  TTY  equipment  should  call  202-  418-  0484.
 Access  Charges  ..........................................................................................................  Robert  Cavazos  Advanced  Services
 .................................................................................  Robert  Cavazos  or  Jim  Eisner  Consumer  Expenditures  ....................................................................................................  Keith  Brown
 Rate  of  Return  .................................................................................................................  Katie  Rangos  Employment
 ....................................................................................................................  Katie  Rangos  International  Statistics  ....................................................................................  Linda  Blake  or  Jim  Lande
 Lifeline  ............................................................................................  Suzanne  McCrary  or  Larry  Povich  Lines
 ........................................................................................................  Alex  Belinfante  or  Jim  Eisner  Local  Competition.  ........................................................................................  Ellen  Burton  or  Jim  Eisner
 Market  Shares  .......................................................................................  Keith  Brown  or  Katie  Rangos  Mobile  Wireless
 ...................................................................................................................  Jim  Eisner  Minutes  .........................................................................................................................  Alex  Belinfante
 Prices  and  Rates  ..............................................................................................................  Keith  Brown  Residential  Telephone  Usage
 ................................................................................................  Jim  Eisner  Revenues  ...................................................................................................  Jim  Lande  or  Katie  Rangos
 Subscribership  and  Penetration  .............................................................................  Alexander  Belinfante  Technology
 ............................................................................................................  Jonathan  Kraushaar  Universal  Service  .....................................................................................  Jim  Eisner  or  Alex  Belinfante
 Electronic  mail  addresses  are
 Alex  Belinfante  .........................................................................................................  abelinfa@  fcc.  gov  Linda  Blake
 .................................................................................................................  lblake@  fcc.  gov  Keith  Brown  ............................................................................................................  ksbrown@  fcc.  gov
 Ellen  Burton  ..............................................................................................................  eburton@  fcc.  gov  Robert  Cavazos
 .......................................................................................................  rcavazos@  fcc.  gov  Jim  Eisner  ...................................................................................................................  jeisner@  fcc.  gov
 Jonathan  Kraushaar  ..................................................................................................  jkrausha@  fcc.  gov  Jim  Lande
 ....................................................................................................................  jlande@  fcc.  gov  Suzanne  McCrary  ...................................................................................................  smccrary@  fcc.  gov
 Larry  Povich  ..............................................................................................................  lpovich@  fcc.  gov  Katie  Rangos
 ............................................................................................................  krangos@  fcc.  gov  Craig  Stroup  ..............................................................................................................  cstroup@  fcc.  gov
164
 Customer  Response
 Publication:  Trends  in  Telephone  Service    August  2001
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