U.S. Department of Commerce

Economics and Statistics Administration

BUREAU OF THE CENSUS

Annual

Survey of

Communication

Services:

1997

BC/97

CURRENT BUSINESS REPORTS
Acknowledgments

Service Sector Statistics Division prepared this report under the general direction of

Thomas E. Zabelsky, Assistant Division Chief for Current Service and Transportation

Programs. Ruth A. Bramblett, Chief, Current Services Branch, supervised the planning, implementation, and compiling of this report with assistance from Michael Armah,

Christine Walker, Jeffrey Barnett, Stacy Furukawa, Theresa Graves, and David

Lassman.

Sarah W. Baumgardner, Assistant Division Chief for Economic Surveys in the

Economic Statistical Methods and Programming Division (ESMPD), supervised the

development of the processing system and computer programs. Barry F. Sessamen,

Chief, Annual Services Branch, directed the development of the processing system and

computer programs with assistance from Jeffery Burton, Tatiana Gallagher, Nga

Nguyen, Harold Bobbitt, Neil Gray, and Matthew Grinberg.

Carl A. Konschnik, former Assistant Division Chief, Research and Methodology,

supervised the sample design and statistical methodology. Jock R. Black, Chief,

Program Research and Development Branch, directed the implementation of the

sample design, including estimation and variance estimation methodology, with assistance from William C. Davie Jr., and M. Christina Cruz. Carol S. King, Chief,

Statistical Methods Branch, supervised the development of sample control, imputation,

quality control procedures, and benchmarking with assistance from Linda Moore.

Judith Petty, Chief, National Processing Center, coordinated the data collection

efforts with assistance from Carlene Bottorff, Chief, Economic Projects Branch, Linda

Broadus, Vicki Miles, Brenda Goodale, and Service Sector Statistics Division’s onsite

analyst, Michael Lutz.

The staff of the Administrative and Customer Services Division, Walter C. Odom,

Chief, performed publication planning, design, composition, editorial review, and

procurement. Nelsa Brown provided publication coordination and editing.

Special acknowledgment also is due to the many businesses whose cooperation was

essential to the publication of this report.

Please send all inquiries concerning this report to Michael Armah, Service Sector

Statistics Division, Bureau of the Census, Washington, DC 20233, telephone 301-457-

2826 or 457-2766.
Annual

Survey of

Communication

Services:

1997

BC/97

Issued January 1999

CURRENT BUSINESS REPORTS

U.S. Department of Commerce

William M. Daley, Secretary

Economics and Statistics Administration

Robert J. Shapiro, Under Secretary

for Economic Affairs

BUREAU OF THE CENSUS

Kenneth Prewitt, Director
SERVICE SECTOR STATISTICS DIVISION

Carole A. Ambler, Chief

SUGGESTED CITATION

U.S. Bureau of the Census, Current Business Reports, BC/97, Annual Survey of

Communication Services: 1997, U.S. Government Printing Office, Washington, DC 1999.

BUREAU OF THE CENSUS

Kenneth Prewitt, Director

Bradford R. Huther, Deputy Director

Paula J. Schneider, Principal Associate

Director for Programs

Frederick T. Knickerbocker, Associate

Director for Economic Programs

Thomas L. Mesenbourg, Assistant Director

for Economic Programs

ECONOMICS

AND STATISTICS

ADMINISTRATION

Economics and Statistics

Administration

Robert J. Shapiro, Under Secretary

for Economic Affairs
Page

Introduction

Coverage ........................................................................................... 1

Dollar Values ....................................................................................... 1

Unpublished Estimates ............................................................................ 1

Census Disclosure Rules.......................................................................... 1

Summary of Data

Telephone Communications ...................................................................... 4

Radio and Television Broadcasting Services..................................................... 10

Cable and Other Pay Television Services ........................................................ 20

Detailed Tables

1. Communications Services (SIC 48)—Summary Statistics, by Kind of Business: 1990

Through 1997 ............................................................................. 2

2. Telephone Communications (SIC 481)—Estimated Operating Revenue and

Expenses: 1990 Through 1997 .......................................................... 5

3. Radiotelephone Communications (SIC 4812)—Estimated Operating Revenue and

Expenses: 1996 and 1997 ............................................................... 6

4. Telephone Communications, Except Radiotelephone (SIC 4813)—Estimated

Operating Revenue and Expenses: 1996 and 1997.................................... 7

5. Telephone Communications, Except Radiotelephone (SIC 4813)—Estimated Local,

Long-Distance, and Network Access Revenue, by Type of Customer and Service:

1996 and 1997 ............................................................................ 8

6. Telephone Communications (SIC 481)—Estimated Cellular and Other

Radiotelephone Revenue, by Type of Service: 1997 .................................. 9

7. Total Broadcasting Services (SIC 483)—Estimated Revenue and Expenses for

Taxable and Tax-Exempt Firms: 1990 Through 1997................................... 11

8. Radio Broadcasting Services (SIC 4832)—Estimated Revenue and Expenses for

Taxable and Tax-Exempt Firms: 1990 Through 1997................................... 12

9. Television Broadcasting Services (SIC 4833)—Estimated Revenue and Expenses

for Taxable and Tax-Exempt Firms: 1990 Through 1997 ............................... 13

10. Total Broadcasting Services (SIC 483)—Estimated Operating Revenue and

Expenses for Taxable Firms: 1991 Through 1997 ...................................... 14

11. Radio Broadcasting Services (SIC 4832)—Components of Estimated Operating

Revenue and Expenses for Taxable Firms: 1991 Through 1997 ...................... 15

12. Television Broadcasting Services (SIC 4833)—Components of Estimated Operating

Revenue and Expenses for Taxable Firms: 1991 Through 1997 ...................... 16

13. Total Broadcasting Services (SIC 483)—Estimated Revenue and Expenses for

Tax-Exempt Firms: 1991 Through 1997 ................................................. 17

14. Radio Broadcasting Services (SIC 4832)—Estimated Revenue and Expenses for

Tax-Exempt Firms: 1991 Through 1997 ................................................. 18

iii

Contents

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
15. Television Broadcasting Services (SIC 4833)—Estimated Revenue and Expenses

for Tax-Exempt Firms: 1991 Through 1997 ............................................. 19

16. Cable and Other Pay Television Services (SIC 4841)—Components of Estimated

Operating Revenue and Expenses for Taxable Firms: 1990 Through 1997 .......... 21

Appendixes

A. Measures of Sampling Variability.......................................................... A-1

B. Explanatory Material ....................................................................... B-1

C. Kind-of-Business Classification ............................................................ C-1

D. Report Forms .............................................................................. D-1

Appendix Tables

A-1. Communications Services (SIC 48)—Estimated Coefficients of Variation for

Summary Statistics, by Kind of Business: 1996 and 1997 ............................. A-2

A-2. Telephone Communications (SIC 481)—Estimated Coefficients of Variation for

Operating Revenue and Expenses: 1996 and 1997.................................... A-3

A-3. Radiotelephone Communications (SIC 4812)—Estimated Coefficients of Variation

for Operating Revenue and Expenses: 1996 and 1997 ................................ A-4

A-4. Telephone Communications, Except Radiotelephone (SIC 4813)— Estimated

Coefficients of Variation for Operating Revenue and Expenses: 1996 and 1997..... A-5

A-5. Telephone Communications, Except Radiotelephone (SIC 4813)—Estimated

Coefficients of Variation for Local, Long-Distance, and Network Access Revenue,

by Type of Customer and Service: 1996 and 1997..................................... A-6

A-6. Telephone Communications (SIC 481)—Estimated Coefficients of Variation for

Cellular and Other Radiotelephone Revenue, by Type of Service: 1997.............. A-7

A-7. Broadcasting Services (SIC 483)—Estimated Coefficients of Variation for Revenue

and Expenses for Taxable and Tax-Exempt Firms, by Kind of Business: 1996 and

1997 ....................................................................................... A-8

A-8. Broadcasting Services (SIC 483)—Estimated Coefficients of Variation for Operating

Revenue and Expenses for Taxable Firms, by Kind of Business: 1996 and 1997 ... A-9

A-9. Broadcasting Services (SIC 483)—Estimated Coefficients of Variation for Revenue

and Expenses for Tax-Exempt Firms, by Kind of Business: 1996 and 1997.......... A-10

A-10. Cable and Other Pay Television Services (SIC 4841)—Estimated Coefficients of

Variation for Components of Operating Revenue and Expenses for Taxable Firms:

1996 and 1997 ............................................................................ A-11

iv

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Introduction

Coverage

This report presents results from the 1997 Annual

Survey of Communication Services. This annual sample

survey covers all employer firms with one or more establishments that are primarily engaged in providing point-topoint communication services, whether by wire or radio

and whether intended to be received aurally or visually.

This covers telephone communications, including cellular

and other radiotelephone services; telegraph and other

message communications such as electronic mail services, facsimile transmission services, telex services, etc;

radio and television broadcasting stations and networks;

cable and other pay television services; and other communication services such as radar station operations, satellite

earth stations, satellite or missile tracking stations, etc.

Statistics in this report are summarized by kind-ofbusiness classification based on the 1987 edition of the

Standard Industrial Classification Manual issued by the

Office of Management and Budget.

Appendix A provides estimated measures of sampling

variability (coefficients of variation) for the dollar volume

estimates and estimates of year-to-year ratios presented in

the report. An explanation of the survey coverage, sampling, and estimation methodology appears in Appendix B.

Appendix C provides a description of each kind of business

included in this report. Extracts of the 1997 report forms are

provided in Appendix D.

Dollar Values

All dollar values presented in this report are expressed

in current dollars, that is, the estimates are not adjusted to

a constant dollar series. Consequently, when comparing

data to prior years, users also should consider price level

changes.

Unpublished Estimates

Additional statistics, such as dollar volume estimates for

some kinds of business not separately shown in this report,

are produced as a byproduct of the regularly published

statistics. These additional estimates have not been included

in this publication because of high sampling variability, poor

response rates, or other factors that result in their failure to

meet Census Bureau standards for publication. The Bureau

of the Census, upon written request, will release such

figures for individual use, though not for publication. It

should be noted that some unpublished figures can be

derived directly from this report by subtracting published

estimates from their respective totals. However, the figures

obtained by such subtraction would be subject to the poor

response rates or high sampling variability described previously for unpublished kinds of business.

Census Disclosure Rules

In accordance with Federal law governing census reports,

no data are published that would disclose the operations of

an individual firm.

1

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table 1. Communications Services (SIC 48) — Summary Statistics, by Kind of Business: 1990 Through 1997

Item

Communications services

(SIC 48)

Telephone

communications

(SIC 481)1

Radiotelephone

communications

(SIC 4812)

Telephone

communications, except

radiotelephone

(SIC 4813)

Radio and

television

broadcasting

(SIC 483)

Radio

broadcasting

(SIC 4832)

Television

broadcasting

(SIC 4833)

Cable and

other pay

television

services

(SIC 4841)

Telegraph and other

communications services,

not elsewhere

classified

(SIC 4822 and

4899)

Total Revenue

Millions of dollars

1997 ............................. 348,482 256,116 35,240 220,876 40,779 10,533 30,246 43,412 8,175

1996 ............................. 322,243 238,063 29,999 208,064 39,182 9,631 29,551 38,488 6,510

1995 ............................. 291,172 216,296 24,149 192,147 35,907 8,795 27,112 33,890 5,079

1994 ............................. 267,237 199,259 (NA) (NA) 32,932 8,089 24,843 30,289 4,757

1993 ............................. 247,221 183,538 (NA) (NA) 30,278 7,402 22,876 29,639 3,766

1992 ............................. 232,241 171,578 (NA) (NA) 29,853 7,019 22,834 27,465 3,345

1991 ............................. 221,466 164,738 (NA) (NA) 28,741 6,890 21,851 24,954 3,033

1990 ............................. 216,294 160,482 (NA) (NA) 29,707 7,173 22,534 23,192 2,913

Percent change

1997/1996 . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 7.6 17.5 6.2 4.1 9.4 2.4 12.8 25.6

1996/1995 ......................... 10.7 10.1 24.2 8.3 9.1 9.5 9.0 13.6 28.2

1995/1994 . . . . . . . . . . . . . . . . . . . . . . . . . 8.9 8.6 (NA) (NA) 9.0 8.7 9.1 11.9 6.8

1994/1993 . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 8.6 (NA) (NA) 8.8 9.3 8.6 2.2 26.3

1993/1992 . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 7.0 (NA) (NA) 1.4 5.5 0.2 7.9 12.6

1992/1991 . . . . . . . . . . . . . . . . . . . . . . . . . 4.9 4.2 (NA) (NA) 3.9 1.9 4.5 10.1 10.3

1991/1990 . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 2.7 (NA) (NA) –3.3 –3.9 –3.0 7.6 4.1

Operating Expenses

Millions of dollars

1997 ............................. 286,218 212,490 27,741 184,749 32,226 8,467 23,759 35,060 6,442

1996 ............................. 260,432 192,349 23,131 169,218 32,216 7,786 24,430 30,471 5,396

1995 ............................. 240,716 180,538 18,168 162,370 29,511 7,251 22,260 26,428 4,239

1994 ............................. 219,432 164,936 (NA) (NA) 27,457 6,853 20,604 23,492 3,547

1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,559 160,273 (NA) (NA) 25,672 6,407 19,265 22,648 2,966

1992 ............................. 193,031 143,033 (NA) (NA) 26,009 6,350 19,659 21,232 2,757

1991 ............................. 186,304 137,593 (NA) (NA) 25,760 6,364 19,396 20,154 2,797

1990 ............................. 179,329 131,493 (NA) (NA) 25,753 6,522 19,231 19,354 2,729

Percent change

1997/1996 . . . . . . . . . . . . . . . . . . . . . . . . . 9.9 10.5 19.9 9.2 (Z) 8.7 –2.7 15.1 19.4

1996/1995 . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 6.5 27.3 4.2 9.2 7.4 9.7 15.3 27.3

1995/1994 . . . . . . . . . . . . . . . . . . . . . . . . . 9.7 9.5 (NA) (NA) 7.5 5.8 8.0 12.5 19.5

1994/1993 . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 2.9 (NA) (NA) 7.0 7.0 7.0 3.7 19.6

1993/1992 . . . . . . . . . . . . . . . . . . . . . . . . . 9.6 12.1 (NA) (NA) –1.3 0.9 –2.0 6.7 7.6

1992/1991 . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 4.0 (NA) (NA) 1.0 –0.2 1.4 5.3 –1.4

1991/1990 . . . . . . . . . . . . . . . . . . . . . . . . . 3.9 4.6 (NA) (NA) (Z) –2.4 0.9 4.1 2.5

Annual Payroll

Millions of dollars

1997 ............................. 61,335 44,524 5,283 39,241 9,285 3,422 5,863 6,027 1,499

1996 ............................. 57,130 42,087 4,327 37,760 8,907 3,170 5,737 5,061 1,075

1995 ............................. 54,499 40,721 3,364 37,357 8,326 2,961 5,365 4,519 933

1994 ............................. 50,408 38,106 (NA) (NA) 7,612 2,752 4,860 3,931 759

1993 ............................. 48,648 37,106 (NA) (NA) 7,046 2,597 4,449 3,824 672

1992 ............................. 47,032 35,900 (NA) (NA) 6,976 2,547 4,429 3,533 623

1991 ............................. 45,600 35,320 (NA) (NA) 6,660 2,492 4,168 2,973 647

1990 ............................. 45,057 34,903 (NA) (NA) 6,680 2,501 4,179 2,816 658

Percent change

1997/1996 . . . . . . . . . . . . . . . . . . . . . . . . . 7.4 5.8 22.1 3.9 4.2 7.9 2.2 19.1 39.4

1996/1995 . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 3.4 28.6 1.1 7.0 7.1 6.9 12.0 15.2

1995/1994 . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 6.9 (NA) (NA) 9.4 7.6 10.4 15.0 22.9

1994/1993 . . . . . . . . . . . . . . . . . . . . . . . . . 3.6 2.7 (NA) (NA) 8.0 6.0 9.2 2.8 12.9

1993/1992 . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 3.4 (NA) (NA) 1.0 2.0 0.5 8.2 7.9

1992/1991 . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 1.6 (NA) (NA) 4.7 2.2 6.3 18.8 –3.7

1991/1990 . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.2 (NA) (NA) –0.3 –0.4 –0.3 5.6 –1.7

Employer Contributions to Social Security

and Other Supplemental Benefits

Millions of dollars

1997 ............................. 13,285 10,263 1,033 9,230 1,484 438 1,046 1,293 245

1996 ............................. 12,451 9,611 825 8,786 1,480 410 1,070 1,150 210

1995 ............................. 11,724 9,184 606 8,578 1,383 381 1,002 1,000 157

1994 ............................. 11,704 9,347 (NA) (NA) 1,287 349 938 915 155

1993 ............................. 11,588 9,379 (NA) (NA) 1,197 357 840 866 146

1992 ............................. 11,715 9,584 (NA) (NA) 1,166 359 807 801 164

1991 ............................. 10,846 8,924 (NA) (NA) 1,074 341 733 667 181

1990 ............................. 9,958 8,121 (NA) (NA) 1,066 340 726 588 183

Percent change

2

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 1. Communications Services (SIC 48) — Summary Statistics, by Kind of Business: 1990 Through 1997

Item

Communications services

(SIC 48)

Telephone

communications

(SIC 481)1

Radiotelephone

communications

(SIC 4812)

Telephone

communications, except

radiotelephone

(SIC 4813)

Radio and

television

broadcasting

(SIC 483)

Radio

broadcasting

(SIC 4832)

Television

broadcasting

(SIC 4833)

Cable and

other pay

television

services

(SIC 4841)

Telegraph and other

communications services,

not elsewhere

classified

(SIC 4822 and

4899)

1997/1996 . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 6.8 25.2 5.1 0.3 6.8 –2.2 12.7 16.7

1996/1995 . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 4.6 36.1 2.4 7.0 7.6 6.8 15.0 33.8

1995/1994 . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 –1.7 (NA) (NA) 7.5 9.2 6.8 9.3 1.3

1994/1993 . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 –0.3 (NA) (NA) 7.5 –2.2 11.7 5.7 6.2

1993/1992 ......................... –1.1 –2.1 (NA) (NA) 2.7 –0.6 4.1 8.1 –11.0

1992/1991 . . . . . . . . . . . . . . . . . . . . . . . . . 8.0 7.4 (NA) (NA) 8.6 5.3 10.1 20.1 –9.4

1991/1990 . . . . . . . . . . . . . . . . . . . . . . . . . 8.9 9.9 (NA) (NA) 0.8 0.3 1.0 13.4 –1.1

NA Not available. Z Less than .05 percent.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. For SIC’s 483, 4832, and 4833, estimates are for taxable and tax-exempt firms and organizations. Appendix A, Table A-1 provides estimated

measures of sampling variability (coefficients of variation).

1

Prior to 1995, revenue for cellular and radiotelephone operations for many of the large wireline carriers were tabulated under their primary industry

(standard industrial classification—SIC 4813). Beginning with the 1996 survey, data collected for 1995 and 1996 were reported separately and tabulated

in their appropriate SIC. Consequently, the 1995 and 1996 estimates for SICs 4812 and 4813 are not comparable to previously published data.

3

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Telephone Communications

SUMMARY OF DATA

Revenue for U.S. telephone firms totaled $256.1 billion

in 1997, an increase of 7.6 percent compared to 1996.

Long-distance service provided 38.5 percent of all telephone industry revenue in 1997, totaling $98.5 billion.

Local service revenue gained 6.9 percent from 1996 to

$57.1 billion in 1997.

Revenue for cellular and radiotelephone services increased

17.3 percent to $33.5 billion in 1997. While contributing

only 13.1 percent of total industry revenue, cellular and

radiotelephone services accounted for 27.3 percent of total

revenue growth in 1997.

Non-residential customers were the source of $113.0

billion in telephone communications, except radiotelephone

(SIC 4813) revenue. They accounted for 58.5 percent of all

revenue for long-distance, local and network access services. In 1997, the portions of total long-distance revenue

and total network access revenue provided by interstate

services were 65.4 percent and 73.3 percent respectively.

Telephone industry expenses reached a total of $212.5

billion in 1997.

Annual payroll reached $44.5 billion in 1997 and accounted

for approximately 21.0 percent of all industry expenses.

Employer contributions to Social Security and other supplemental benefits were $10.3 billion in 1997.

Purchased communications for the industry rose 16.9

percent to $2.4 billion, while purchased advertising rose

24.0 percent to $5.6 billion.

4

U.S. Census Bureau, the Official StatisticsTM Jan. 5, 1999
Table 2. Telephone Communications (SIC 481) — Estimated Operating Revenue and Expenses: 1990 Through

1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991 1990

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

1991/

1990

Operating Revenue

Total ................ 256,116 238,063 216,296 199,259 183,538 171,578 164,738 160,482 7.6 10.1 8.6 8.6 7.0 4.2 2.7

Local service ............. 57,065 53,403 49,349 46,662 45,178 43,341 41,354 40,180 6.9 8.2 5.8 3.3 4.2 4.8 2.9

Long-distance service ....... 98,528 94,039 86,834 81,037 73,923 69,446 69,006 67,698 4.8 8.3 7.2 9.6 6.4 0.6 1.9

Network access ........... 37,447 36,101 34,131 32,988 31,658 30,998 29,947 30,044 3.7 5.8 3.5 4.2 2.1 3.5 –0.3

Cellular and other

radiotelephone .......... 33,453 28,520 22,837 16,848 12,401 9,181 6,870 6,002 17.3 24.9 35.5 35.9 35.1 33.6 14.5

Directory advertising ........ 10,764 10,214 9,850 9,439 9,117 8,923 8,680 8,373 5.4 3.7 4.4 3.5 2.2 2.8 3.7

Other operating revenue ..... 18,859 15,786 13,295 12,285 11,261 9,689 8,881 8,185 19.5 18.7 8.2 9.1 16.2 9.1 8.5

Operating Expenses

Total ................ 212,490 192,349 180,538 164,936 160,273 143,033 137,593 131,493 10.5 6.5 9.5 2.9 12.1 4.0 4.6

Annual payroll ............ 44,524 42,087 40,721 38,106 37,106 35,900 35,320 34,903 5.8 3.4 6.9 2.7 3.4 1.6 1.2

Employer contributions to Social

Security and other

supplemental benefits ...... 10,263 9,611 9,184 9,347 9,379 9,584 8,924 8,121 6.8 4.6 –1.7 –0.3 –2.1 7.4 9.9

Access charges ........... 39,781 36,018 33,748 30,047 27,035 24,539 24,039 23,214 10.4 6.7 12.3 11.1 10.2 2.1 3.6

Depreciation ............. 37,589 32,937 31,651 28,578 25,546 23,623 23,600 22,927 14.1 4.1 10.8 11.9 8.1 0.1 2.9

Lease and rental .......... 5,310 4,492 3,919 4,037 3,608 4,247 3,867 3,543 18.2 14.6 –2.9 11.9 –15.0 9.8 9.1

Purchased repairs ......... 6,533 5,243 4,907 4,413 3,474 2,915 2,954 2,977 24.6 6.8 11.2 27.0 19.2 –1.3 –0.8

Insurance . . . . . . . . . . . . . . . 371 336 304 261 228 222 218 193 10.4 10.5 16.5 14.5 2.7 1.8 13.0

Telephone and other purchased

communication services .... 2,373 2,030 1,858 1,321 946 707 544 504 16.9 9.3 40.7 39.6 33.8 30.0 7.9

Purchased utilities ......... 2,174 1,961 1,770 1,562 1,315 1,178 1,150 1,106 10.9 10.8 13.3 18.8 11.6 2.4 4.0

Purchased advertising ...... 5,624 4,534 3,607 3,835 3,085 2,637 2,546 2,328 24.0 25.7 –5.9 24.3 17.0 3.6 9.4

Taxes ................. 9,021 7,978 7,539 6,603 5,861 5,194 5,233 5,086 13.1 5.8 14.2 12.7 12.8 –0.7 2.9

Other operating expenses .... 48,927 45,122 41,330 36,826 42,690 32,287 29,198 26,591 8.4 9.2 12.2 –13.7 32.2 10.6 9.8

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-2 provides estimated measures of sampling variability (coefficients of variation).

5

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 3. Radiotelephone Communications (SIC 4812) — Estimated Operating Revenue and Expenses: 1996 and

1997

Item

Millions of dollars Percent change Percent of total

1997 1996 1997/1996 1997 1996

Operating Revenue

Total1 ......................................... 35,240 29,999 17.5 100.0 100.0

Cellular and other radiotelephone ................... 33,094 28,208 17.3 93.9 94.0

Other operating revenue ........................... 2,133 1,778 20.0 6.1 5.9

Operating Expenses

Total .......................................... 27,741 23,131 19.9 100.0 100.0

Annual payroll .................................... 5,283 4,327 22.1 19.0 18.7

Employer contributions to Social Security and other

supplemental benefits ............................ 1,033 825 25.2 3.7 3.6

Access charges ................................... 1,529 1,453 5.2 5.5 6.3

Depreciation ...................................... 4,900 3,767 30.1 17.7 16.3

Lease and rental .................................. 1,350 911 48.2 4.9 3.9

Purchased repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 357 277 28.9 1.3 1.2

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 76 3.9 0.3 0.3

Telephone and other purchased communication

services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919 660 39.2 3.3 2.9

Purchased utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 154 33.1 0.7 0.7

Purchased advertising ............................. 1,495 1,325 12.8 5.4 5.7

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 402 385 4.4 1.4 1.7

Other operating expenses .......................... 10,189 8,971 13.6 36.7 38.8

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-3 provides estimated measures of sampling variability (coefficients of variation).

Prior to 1995, revenue for cellular and radiotelephone operations for many of the large wireline carriers were tabulated under their primary industry

(standard industrial classification—SIC 4813). Beginning with the 1996 survey, data collected for 1995 and 1996 were reported separately and tabulated

in their appropriate SIC. Consequently, the 1995 and 1996 estimates for SICs 4812 and 4813 are not comparable to previously published data.

1

Includes sources of revenue not shown separately.

6

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 4. Telephone Communications, Except Radiotelephone (SIC 4813) — Estimated Operating Revenue and

Expenses: 1996 and 1997

Item

Millions of dollars Percent change Percent of total

1997 1996 1997/1996 1997 1996

Operating Revenue

Total .......................................... 220,876 208,064 6.2 100.0 100.0

Local service ..................................... 57,061 53,399 6.9 25.8 25.7

Long-distance service .............................. 98,528 94,039 4.8 44.6 45.2

Network access ................................... 37,438 36,092 3.7 16.9 17.3

Cellular and other radiotelephone . . . . . . . . . . . . . . . . . . . (S) (S) (S) (S) (S)

Directory advertising ............................... 10,764 10,214 5.4 4.9 4.9

Other operating revenue ........................... 16,726 14,008 19.4 7.6 6.7

Operating Expenses

Total .......................................... 184,749 169,218 9.2 100.0 100.0

Annual payroll .................................... 39,241 37,760 3.9 21.2 22.3

Employer contributions to Social Security and other

supplemental benefits ............................ 9,230 8,786 5.1 5.0 5.2

Access charges ................................... 38,252 34,565 10.7 20.7 20.4

Depreciation ...................................... 32,689 29,170 12.1 17.7 17.2

Lease and rental .................................. 3,960 3,581 10.6 2.1 2.1

Purchased repairs ................................. 6,176 4,966 24.4 3.3 2.9

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 260 12.3 0.2 0.2

Telephone and other purchased communication

services ......................................... 1,454 1,370 6.1 0.8 0.8

Purchased utilities ................................. 1,969 1,807 9.0 1.1 1.1

Purchased advertising ............................. 4,129 3,209 28.7 2.2 1.9

Taxes ............................................ 8,619 7,593 13.5 4.7 4.5

Other operating expenses .......................... 38,738 36,151 7.2 21.0 21.4

S Data do not meet publication standards because of high sampling variability or poor response quality. Some unpublished estimates can be derived

from this table by subtracting published data from their respective totals. However, the figures obtained by such subtraction are subject to these same

limitations. These unpublished data are for internal use only.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-4 provides estimated measures of sampling variability (coefficients of variation).

Prior to 1995, revenue for cellular and radiotelephone operations for many of the large wireline carriers were tabulated under their primary industry

(standard industrial classification—SIC 4813). Beginning with the 1996 survey, data collected for 1995 and 1996 were reported separately and tabulated

in their appropriate SIC. Consequently, the 1995 and 1996 estimates for SICs 4812 and 4813 are not comparable to previously published data.

7

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 5. Telephone Communications, Except Radiotelephone (SIC 4813) —Estimated Local, Long-Distance, and

Network Access Revenue, by Type of Customer and Service: 1996 and 1997

Item

Dollar volume

Type of customer Type of service

Residential Nonresidential Intrastate Interstate

Local Service

Millions of dollars

1997 ............................................. 57,061 29,209 27,852 56,411 650

1996 ............................................. 53,399 27,099 26,300 52,767 632

Percent change

1997/1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9 7.8 5.9 6.9 2.8

Long-Distance Service

Millions of dollars

1997 ............................................. 98,528 42,771 55,757 34,111 64,417

1996 ............................................. 94,039 40,755 53,284 33,707 60,332

Percent change

1997/1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 4.9 4.6 1.2 6.8

Network Access

Millions of dollars

1997 ............................................. 37,438 8,103 29,335 9,989 27,449

1996 ............................................. 36,092 7,603 28,489 9,547 26,545

Percent change

1997/1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 6.6 3.0 4.6 3.4

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-5 provides estimated measures of sampling variability (coefficients of variation).

Prior to 1995, revenue for cellular and radiotelephone operations for many of the large wireline carriers were tabulated under their primary industry

(standard industrial classification—SIC 4813). Beginning with the 1996 survey, data collected for 1995 and 1996 were reported separately and tabulated

in their appropriate SIC. Consequently, the 1995 and 1996 estimates for SICs 4812 and 4813 are not comparable to previously published data.

8

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 6. Telephone Communications (SIC 481) — Estimated Cellular and Other Radiotelephone Revenue, by

Type of Service: 1997

Item Millions of dollars

Cellular and other radiotelephone revenue1 ............................................................. 33,453

Type of Service

Air time ............................................................................................. 14,738

Basic service ........................................................................................ 10,167

Long-distance service ................................................................................ 1,085

Roaming charges .................................................................................... 3,560

Other services ....................................................................................... 3,903

1

Includes cellular and other radiotelephone revenue for firms primarily engaged in providing radiotelephone services (SIC 4812), and telephone

communications, except radiotelephone (SIC 4813).

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-6 provides estimated measures of sampling variability (coefficients of variation).

9

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Radio and Television Broadcasting Services

SUMMARY OF DATA

Taxable Firms

Total operating revenue for taxable U.S. television and

radio broadcasters combined was $39.0 billion in 1997, an

increase of 3.8 percent from 1996.

Revenue for the television broadcasting industry was

about $28.8 billion in 1997. Sales of television time to

networks, advertisers, and sponsors (station time sales),

representing 55.9 percent of television revenue, was $16.1

billion in 1997. National and regional television advertising

sales increased 2.4 percent while local advertising, which

accounted for 53.7 percent of total station time sales in

1997, increased 3.2 percent from the previous year. Television network times sales fell 1.3 percent from 1996 to

$11.1 billion.

Revenue for the nation’s radio broadcasters rose 9.5

percent to $10.2 billion in 1997. Station time sales accounted

for 91.1 percent of their total revenue. Local advertising,

accounting for 77.5 percent of radio station time sales in

1997, was up 8.4 percent from the previous year.

Operating expenses for the television broadcasting industry were $22.5 billion in 1997. Broadcast rights to first-run

programs, feature films, syndicated programs, and sporting

events accounted for 37.8 percent of total operating expenses

for television broadcasters in 1997, a decrease in dollar

volume of 6.8 percent.

Operating expenses for the radio industry were $8.2

billion in 1997. Annual payroll, $3.3 billion in 1997, was the

largest component of these expenses.

Tax-Exempt Firms

Total revenue for tax-exempt radio and television broadcasters combined was $1.8 billion in 1997, up 9.4 percent

from 1996.

Revenue for tax-exempt television broadcasters increased

10.7 percent. Tax-exempt radio broadcasters’ revenue

increased 4.3 percent in 1997.

Operating expenses for tax-exempt radio and television

broadcasters combined were $1.6 billion in 1997.

10

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table 7. Total Broadcasting Services (SIC 483) — Estimated Revenue and Expenses for Taxable and Tax-Exempt

Firms: 1990 Through 1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991 1990

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

1991/

1990

Total Revenue

Total1 ............... 40,779 39,182 35,907 32,932 30,278 29,853 28,741 29,707 4.1 9.1 9.0 8.8 1.4 3.9 –3.3

Operating Expenses

Total ................ 32,226 32,216 29,511 27,457 25,672 26,009 25,760 25,753 (Z) 9.2 7.5 7.0 –1.3 1.0 (Z)

Annual payroll ............ 9,285 8,907 8,326 7,612 7,046 6,976 6,660 6,680 4.2 7.0 9.4 8.0 1.0 4.7 –0.3

Employer contributions to Social

Security and other

supplemental benefits ...... 1,484 1,480 1,383 1,287 1,197 1,166 1,074 1,066 0.3 7.0 7.5 7.5 2.7 8.6 0.8

Broadcast rights .......... 9,098 9,697 8,592 8,135 8,005 8,564 8,727 8,329 –6.2 12.9 5.6 1.6 –6.5 –1.9 4.8

Music license fees . . . . . . . . . 469 456 407 345 338 371 363 374 2.9 12.0 18.0 2.1 –8.9 2.2 –2.9

Depreciation ............. 1,628 1,532 1,395 1,272 1,258 1,331 1,351 1,404 6.3 9.8 9.7 1.1 –5.5 –1.5 –3.8

Lease and rental . . . . . . . . . . 647 618 577 542 512 490 496 502 4.7 7.1 6.5 5.9 4.5 –1.2 –1.2

Purchased repairs . . . . . . . . . 334 351 322 285 258 242 244 247 –4.8 9.0 13.0 10.5 6.6 –0.8 –1.2

Insurance . . . . . . . . . . . . . . . 174 197 177 174 164 168 157 152 –11.7 11.3 1.7 6.1 –2.4 7.0 3.3

Telephone and other purchased

communication services . . . . 320 336 294 269 255 255 249 259 –4.8 14.3 9.3 5.5 — 2.4 –3.9

Purchased utilities . . . . . . . . . 307 338 308 298 277 279 275 265 –9.2 9.7 3.4 7.6 –0.7 1.5 3.8

Purchased advertising ...... 1,379 1,222 1,141 995 852 827 869 971 12.8 7.1 14.7 16.8 3.0 –4.8 –10.5

Taxes . . . . . . . . . . . . . . . . . 214 234 222 194 183 191 175 178 –8.5 5.4 14.4 6.0 –4.2 9.1 –1.7

Other operating expenses2 . . . 6,887 6,848 6,367 6,049 5,327 5,149 5,120 5,326 0.6 7.6 5.3 13.6 3.5 0.6 –3.9

Z Less than .05 percent.

—Represents zero.

1

Includes non-operating income from tax-exempt firms.

2

Includes network compensation fees.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-7 provides estimated measures of sampling variability (coefficients of variation).

11

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 8. Radio Broadcasting Services (SIC 4832) — Estimated Revenue and Expenses for Taxable and

Tax-Exempt Firms: 1990 Through 1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991 1990

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

1991/

1990

Total Revenue

Total1 ............... 10,533 9,631 8,795 8,089 7,402 7,019 6,890 7,173 9.4 9.5 8.7 9.3 5.5 1.9 –3.9

Operating Expenses

Total ................ 8,467 7,786 7,251 6,853 6,407 6,350 6,364 6,522 8.7 7.4 5.8 7.0 0.9 –0.2 –2.4

Annual payroll ............ 3,422 3,170 2,961 2,752 2,597 2,547 2,492 2,501 7.9 7.1 7.6 6.0 2.0 2.2 –0.4

Employer contributions to Social

Security and other

supplemental benefits . . . . . . 438 410 381 349 357 359 341 340 6.8 7.6 9.2 –2.2 –0.6 5.3 0.3

Broadcast rights . . . . . . . . . . 313 299 315 255 250 218 284 274 4.7 –5.1 23.5 2.0 14.7 –23.2 3.6

Music license fees . . . . . . . . . 250 225 205 183 162 150 152 160 11.1 9.8 12.0 13.0 8.0 –1.3 –5.0

Depreciation . . . . . . . . . . . . . 511 456 416 399 413 460 473 487 12.1 9.6 4.3 –3.4 –10.2 –2.7 –2.9

Lease and rental . . . . . . . . . . 276 250 242 236 214 204 200 208 10.4 3.3 2.5 10.3 4.9 2.0 –3.8

Purchased repairs . . . . . . . . . 91 87 84 81 83 82 84 84 4.6 3.6 3.7 –2.4 1.2 –2.4 —

Insurance . . . . . . . . . . . . . . . 78 81 71 71 67 68 66 66 –3.7 14.1 — 6.0 –1.5 3.0 —

Telephone and other purchased

communication services . . . . 147 141 129 122 118 121 117 120 4.3 9.3 5.7 3.4 –2.5 3.4 –2.5

Purchased utilities . . . . . . . . . 116 116 109 108 100 107 105 103 — 6.4 0.9 8.0 –6.5 1.9 1.9

Purchased advertising . . . . . . 458 410 412 371 315 318 334 372 11.7 –0.5 11.1 17.8 –0.9 –4.8 –10.2

Taxes . . . . . . . . . . . . . . . . . 79 74 74 62 64 66 59 61 6.8 — 19.4 –3.1 –3.0 11.9 –3.3

Other operating expenses2 . . . 2,288 2,067 1,852 1,864 1,667 1,650 1,657 1,746 10.7 11.6 –0.6 11.8 1.0 –0.4 –5.1

—Represents zero.

1

Includes non-operating income from tax-exempt firms.

2

Includes network compensation fees.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-7 provides estimated measures of sampling variability (coefficients of variation).

12

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 9. Television Broadcasting Services (SIC 4833) — Estimated Revenue and Expenses for Taxable and

Tax-Exempt Firms: 1990 Through 1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991 1990

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

1991/

1990

Total Revenue

Total1 ............... 30,246 29,551 27,112 24,843 22,876 22,834 21,851 22,534 2.4 9.0 9.1 8.6 0.2 4.5 –3.0

Operating Expenses

Total ................ 23,759 24,430 22,260 20,604 19,265 19,659 19,396 19,231 –2.7 9.7 8.0 7.0 –2.0 1.4 0.9

Annual payroll ............ 5,863 5,737 5,365 4,860 4,449 4,429 4,168 4,179 2.2 6.9 10.4 9.2 0.5 6.3 –0.3

Employer contributions to Social

Security and other

supplemental benefits ...... 1,046 1,070 1,002 938 840 807 733 726 –2.2 6.8 6.8 11.7 4.1 10.1 1.0

Broadcast rights .......... 8,785 9,398 8,277 7,880 7,755 8,346 8,443 8,055 –6.5 13.5 5.0 1.6 –7.1 –1.1 4.8

Music license fees . . . . . . . . . 219 231 202 162 176 221 211 214 –5.2 14.4 24.7 –8.0 –20.4 4.7 –1.4

Depreciation . . . . . . . . . . . . . 1,117 1,076 979 873 845 871 878 917 3.8 9.9 12.1 3.3 –3.0 –0.8 –4.3

Lease and rental . . . . . . . . . . 371 368 335 306 298 286 296 294 0.8 9.9 9.5 2.7 4.2 –3.4 0.7

Purchased repairs . . . . . . . . . 243 264 238 204 175 160 160 163 –8.0 10.9 16.7 16.6 9.4 — –1.8

Insurance . . . . . . . . . . . . . . . 96 116 106 103 97 100 91 86 –17.2 9.4 2.9 6.2 –3.0 9.9 5.8

Telephone and other purchased

communication services . . . . 173 195 165 147 137 134 132 139 –11.3 18.2 12.2 7.3 2.2 1.5 –5.0

Purchased utilities . . . . . . . . . 191 222 199 190 177 172 170 162 –14.0 11.6 4.7 7.3 2.9 1.2 4.9

Purchased advertising . . . . . . 921 812 729 624 537 509 535 599 13.4 11.4 16.8 16.2 5.5 –4.9 –10.7

Taxes . . . . . . . . . . . . . . . . . 135 160 148 132 119 125 116 117 –15.6 8.1 12.1 10.9 –4.8 7.8 –0.9

Other operating expenses2 . . . 4,599 4,781 4,515 4,185 3,660 3,499 3,463 3,580 –3.8 5.9 7.9 14.3 4.6 1.0 –3.3

—Represents zero.

1

Includes non-operating income from tax-exempt firms.

2

Includes network compensation fees.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-7 provides estimated measures of sampling variability (coefficients of variation).

13

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 10. Total Broadcasting Services (SIC 483) — Estimated Operating Revenue and Expenses for Taxable

Firms: 1991 Through 1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

Operating Revenue

Total ................. 38,985 37,542 34,319 31,315 28,409 27,859 26,845 3.8 9.4 9.6 10.2 2.0 3.8

Station time sales ........ 25,379 24,130 22,450 20,647 18,882 18,580 18,022 5.2 7.5 8.7 9.3 1.6 3.1

Network compensation . 644 631 564 451 440 459 510 2.1 11.9 25.1 2.5 –4.1 –10.0

National/regional

advertising ........... 8,891 8,476 8,166 7,459 6,758 6,733 6,666 4.9 3.8 9.5 10.4 0.4 1.0

Local advertising ....... 15,844 15,023 13,720 12,737 11,684 11,388 10,846 5.5 9.5 7.7 9.0 2.6 5.0

Network time sales ....... 11,701 11,792 10,319 9,459 8,424 8,221 7,645 –0.8 14.3 9.1 12.3 2.5 7.5

Other operating revenue . . 1,905 1,620 1,550 1,209 1,103 1,058 1,178 17.6 4.5 28.2 9.6 4.3 –10.2

Operating Expenses

Total ................. 30,648 30,721 28,038 25,899 23,891 24,135 23,944 –0.2 9.6 8.3 8.4 –1.0 0.8

Annual payroll ........... 8,848 8,497 7,933 7,222 6,664 6,595 6,288 4.1 7.1 9.8 8.4 1.0 4.9

Employer contributions to

Social Security and other

supplemental benefits . . . 1,397 1,400 1,303 1,207 1,120 1,090 1,001 –0.2 7.4 8.0 7.8 2.8 8.9

Broadcast rights ......... 8,801 9,404 8,260 7,723 7,349 7,737 7,922 –6.4 13.8 7.0 5.1 –5.0 –2.3

Music license fees . . . . . . . 467 454 405 344 337 370 361 2.9 12.1 17.7 2.1 –8.9 2.5

Depreciation ............. 1,548 1,455 1,324 1,193 1,185 1,264 1,286 6.4 9.9 11.0 0.7 –6.3 –1.7

Lease and rental . . . . . . . . . 609 590 538 503 476 452 462 3.2 9.7 7.0 5.7 5.3 –2.2

Purchased repairs . . . . . . . . 310 331 300 268 239 226 228 –6.3 10.3 11.9 12.1 5.8 –0.9

Insurance . . . . . . . . . . . . . . . 164 188 168 165 155 158 147 –12.8 11.9 1.8 6.5 –1.9 7.5

Telephone and other

purchased

communication services . 300 319 278 254 236 236 231 –6.0 14.7 9.4 7.6 — 2.2

Purchased utilities . . . . . . . . 280 310 281 269 252 256 252 –9.7 10.3 4.5 6.7 –1.6 1.6

Purchased advertising .... 1,353 1,195 1,115 969 821 797 842 13.2 7.2 15.1 18.0 3.0 –5.3

Taxes . . . . . . . . . . . . . . . . . . 210 229 217 191 180 187 172 –8.3 5.5 13.6 6.1 –3.7 8.7

Other operating expenses1 6,361 6,349 5,916 5,591 4,877 4,767 4,752 (Z) 7.3 5.8 14.6 2.3 0.3

Z Less than .05 percent.

—Represents zero.

1

Includes network compensation fees.

Note: Estimates are obtained from a sample of taxable employer firms only. Estimates for tax-exempt firms and organizations are shown in table 13.

Estimates are not adjusted for price changes. Detail may not add to total due to rounding. Appendix A, Table A-8 provides estimated measures of sampling

variability (coefficients of variation).

14

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 11. Radio Broadcasting Services (SIC 4832) — Components of Estimated Operating Revenue and Expenses for Tax

Through 1997

Item

Millions of dollars Percent change Pe

1997 1996 1995 1994 1993 1992 1991

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991 1997 1996 1995 

Operating Revenue

Total ................. 10,193 9,305 8,518 7,827 7,159 6,795 6,671 9.5 9.2 8.8 9.3 5.4 1.9 100.0 100.0 100.0 

Station time sales .......... 9,287 8,476 7,779 7,199 6,601 6,275 6,104 9.6 9.0 8.1 9.1 5.2 2.8 91.1 91.1 91.3 

Network compensation . . . . . 85 81 71 75 75 95 98 4.9 14.1 –5.3 — –21.1 –3.1 0.8 0.9 0.8 

National/regional advertising . 2,002 1,750 1,765 1,551 1,390 1,313 1,433 14.4 –0.8 13.8 11.6 5.9 –8.4 19.6 18.8 20.7 Local advertising ......... 7,200 6,645 5,943 5,573 5,136 4,867 4,573 8.4 11.8 6.6 8.5 5.5 6.4 70.6 71.4 69.8 

Network time sales . . . . . . . . . 553 498 464 402 314 276 312 11.0 7.3 15.4 28.0 13.8 –11.5 5.4 5.4 5.4 

Other operating revenue . . . . . 353 331 275 226 244 244 255 6.6 20.4 21.7 –7.4 0.0 –4.3 3.5 3.6 3.2 Operating Expenses

Total ................. 8,154 7,499 6,997 6,610 6,177 6,137 6,157 8.7 7.2 5.9 7.0 0.7 –0.3 100.0 100.0 100.0 

Annual payroll ............ 3,304 3,065 2,864 2,661 2,512 2,469 2,413 7.8 7.0 7.6 5.9 1.7 2.3 40.5 40.9 40.9 

Employer contributions to Social

Security and other supplemental benefits . . . . . . . . . . . . . 416 389 361 331 339 343 326 6.9 7.8 9.1 –2.4 –1.2 5.2 5.1 5.2 5.2 

Broadcast rights . . . . . . . . . . . 303 287 304 244 239 209 274 5.6 –5.6 24.6 2.1 14.4 –23.7 3.7 3.8 4.3 

Music license fees . . . . . . . . . 249 224 204 183 162 149 151 11.2 9.8 11.5 13.0 8.7 –1.3 3.1 3.0 2.9 

Depreciation . . . . . . . . . . . . . 491 440 403 385 400 449 463 11.6 9.2 4.7 –3.8 –10.9 –3.0 6.0 5.9 5.8 

Lease and rental . . . . . . . . . . 266 239 226 221 203 191 189 11.3 5.8 2.3 8.9 6.3 1.1 3.3 3.2 3.2 Purchased repairs . . . . . . . . . 81 78 76 75 76 77 79 3.8 2.6 1.3 –1.3 –1.3 –2.5 1.0 1.0 1.1 

Insurance . . . . . . . . . . . . . . . 76 79 69 69 65 66 64 –3.8 14.5 — 6.2 –1.5 3.1 0.9 1.1 1.0 Telephone and other purchased

communication services . . . . . 140 134 123 116 112 116 112 4.5 8.9 6.0 3.6 –3.4 3.6 1.7 1.8 1.8 

Purchased utilities . . . . . . . . . 110 110 104 102 95 102 100 — 5.8 2.0 7.4 –6.9 2.0 1.3 1.5 1.5 

Purchased advertising . . . . . . . 454 407 409 368 311 314 330 11.5 –0.5 11.1 18.3 –1.0 –4.8 5.6 5.4 5.8 

Taxes . . . . . . . . . . . . . . . . . 78 71 71 60 63 65 58 9.9 — 18.3 –4.8 –3.1 12.1 1.0 0.9 1.0 

Other operating expenses1 . . . 2,186 1,976 1,783 1,795 1,600 1,587 1,598 10.6 10.8 –0.7 12.2 0.8 –0.7 26.8 26.4 25.5 

—Represents zero.1Includes network compensation fees.

Note: Estimates are obtained from a sample of taxable employer firms only. Estimates for tax-exempt firms and organizations are shown in table 14. Estimates a

Detail may not add to total due to rounding. Appendix A, Table A-8 provides estimated measures of sampling variability (coefficients of variation).

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 12. Television Broadcasting Services (SIC 4833) — Components of Estimated Operating Revenue and Expenses fo

Through 1997

Item

Millions of dollars Percent change Pe

1997 1996 1995 1994 1993 1992 1991

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991 1997 1996 1995 

Operating Revenue

Total ................. 28,792 28,237 25,801 23,488 21,250 21,064 20,174 2.0 9.4 9.8 10.5 0.9 4.4 100.0 100.0 100.0 

Station time sales .......... 16,092 15,654 14,671 13,448 12,281 12,305 11,918 2.8 6.7 9.1 9.5 –0.2 3.2 55.9 55.4 56.9 

Network compensation . . . . . 559 550 493 376 365 364 412 1.6 11.6 31.1 3.0 0.3 –11.7 1.9 1.9 1.9 

National/regional advertising . 6,889 6,726 6,401 5,908 5,368 5,420 5,233 2.4 5.1 8.3 10.1 –1.0 3.6 23.9 23.8 24.8 Local advertising ......... 8,644 8,378 7,777 7,164 6,548 6,521 6,273 3.2 7.7 8.6 9.4 0.4 4.0 30.0 29.7 30.1 

Network time sales ......... 11,148 11,294 9,855 9,057 8,110 7,945 7,333 –1.3 14.6 8.8 11.7 2.1 8.3 38.7 40.0 38.2 

Other operating revenue ..... 1,552 1,289 1,275 983 859 814 923 20.4 1.1 29.7 14.4 5.5 –11.8 5.4 4.6 4.9 

Operating Expenses

Total ................. 22,494 23,222 21,041 19,289 17,714 17,998 17,787 –3.1 10.4 9.1 8.9 –1.6 1.2 100.0 100.0 100.0 

Annual payroll ............ 5,544 5,432 5,069 4,561 4,152 4,126 3,875 2.1 7.2 11.1 9.9 0.6 6.5 24.6 23.4 24.1 

Employer contributions to Social

Security and other supplemental benefits . . . . . . . . . . . . . 981 1,011 942 876 781 747 675 –3.0 7.3 7.5 12.2 4.6 10.7 4.4 4.4 4.5 

Broadcast rights ........... 8,498 9,117 7,956 7,479 7,110 7,528 7,648 –6.8 14.6 6.4 5.2 –5.6 –1.6 37.8 39.3 37.8 

Music license fees . . . . . . . . . 218 230 201 161 175 221 210 –5.2 14.4 24.8 –8.0 –20.8 5.2 1.0 1.0 1.0 Depreciation ............. 1,057 1,015 921 808 785 815 823 4.1 10.2 14.0 2.9 –3.7 –1.0 4.7 4.4 4.4 

Lease and rental . . . . . . . . . . 343 351 312 282 273 261 273 –2.3 12.5 10.6 3.3 4.6 –4.4 1.5 1.5 1.5 

Purchased repairs . . . . . . . . . 229 253 224 193 163 149 149 –9.5 12.9 16.1 18.4 9.4 — 1.0 1.1 1.1 Insurance . . . . . . . . . . . . . . . 88 109 99 96 90 92 83 –19.3 10.1 3.1 6.7 –2.2 10.8 0.4 0.5 0.5 

Telephone and other purchased

communication services . . . . . 160 185 155 138 124 120 119 –13.5 19.4 12.3 11.3 3.3 0.8 0.7 0.8 0.7 

Purchased utilities . . . . . . . . . 170 200 177 167 157 154 152 –15.0 13.0 6.0 6.4 1.9 1.3 0.8 0.9 0.8 

Purchased advertising . . . . . . . 899 788 706 601 510 483 512 14.1 11.6 17.5 17.8 5.6 –5.7 4.0 3.4 3.4 

Taxes . . . . . . . . . . . . . . . . . 132 158 146 131 117 122 114 –16.5 8.2 11.5 12.0 –4.1 7.0 0.6 0.7 0.7 

Other operating expenses1 . . . 4,175 4,373 4,133 3,796 3,277 3,180 3,154 –4.5 5.8 8.9 15.8 3.1 0.8 18.6 18.8 19.6 

—Represents zero.1Includes network compensation fees.

Note: Estimates are obtained from a sample of taxable employer firms only. Estimates for tax-exempt firms and organizations are shown in table 15. Estimates a

Detail may not add to total due to rounding. Appendix A, Table A-8 provides estimated measures of sampling variability (coefficients of variation).

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 13. Total Broadcasting Services (SIC 483) — Estimated Revenue and Expenses for Tax-Exempt Firms:

1991 Through 1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

Total Revenue

Total1 ............... 1,794 1,640 1,588 1,617 1,869 1,994 1,896 9.4 3.3 –1.8 –13.5 –6.3 5.2

Operating Expenses

Total ................ 1,578 1,495 1,473 1,558 1,781 1,874 1,816 5.6 1.5 –5.5 –12.5 –5.0 3.2

Annual payroll . . . . . . . . . . . 437 410 393 390 382 381 372 6.6 4.3 0.8 2.1 0.3 2.4

Employer contributions to

Social Security and other

supplemental benefits . . . 87 80 80 80 77 76 73 8.8 — — 3.9 1.3 4.1

Broadcast rights . . . . . . . . . (S) (S) (S) 412 656 827 805 (S) (S) (S) –37.2 –20.7 2.7

Music license fees . . . . . . . (S) (S) (S) (S) (S) (S) (S) (S) (S) (S) (S) (S) (S)

Depreciation . . . . . . . . . . . . . 80 77 71 79 73 67 65 3.9 8.5 –10.1 8.2 9.0 3.1

Lease and rental . . . . . . . . . 38 28 39 39 36 38 34 35.7 –28.2 — 8.3 –5.3 11.8

Purchased repairs . . . . . . . . 24 20 22 17 19 16 16 20.0 –9.1 29.4 –10.5 18.8 —

Insurance ............... 10 9 9 9 9 10 10 11.1 — — — –10.0 —

Telephone and other

purchased

communication services . 20 17 16 15 19 19 18 17.6 6.3 6.7 –21.1 — 5.6

Purchased utilities . . . . . . . . 27 28 27 29 25 23 23 –3.6 3.7 –6.9 16.0 8.7 —

Purchased advertising . . . . 26 27 26 26 31 30 27 –3.7 3.8 — –16.1 3.3 11.1

Taxes . . . . . . . . . . . . . . . . . . (S) (S) (S) (S) (S) (S) (S) (S) (S) (S) (S) (S) (S)

Other operating expenses2 526 499 451 458 450 382 368 5.4 10.6 –1.5 1.8 17.8 3.8

S Data do not meet publication standards because of high sampling variability or poor response quality. Some unpublished estimates can be derived

from this table by subtracting published data from their respective totals. However, the figures obtained by such subtraction are subject to these same

limitations. These unpublished data are for internal use only.

—Represents zero.

1

Includes all government subsidies used to offset operating or capital deficits; private gifts, loans, contributions, and grants; sale of securities, real

estate; etc. 2

Includes network compensation fees.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-9 provides estimated measures of sampling variability (coefficients of variation).

17

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 14. Radio Broadcasting Services (SIC 4832) — Estimated Revenue and Expenses for Tax-Exempt Firms:

1991 Through 1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

Total Revenue

Total1 . . . . . . . . . . . . . . . 340 326 277 262 243 224 219 4.3 17.7 5.7 7.8 8.5 2.3

Operating Expenses

Total . . . . . . . . . . . . . . . . 313 287 254 243 230 213 207 9.1 13.0 4.5 5.7 8.0 2.9

Annual payroll . . . . . . . . . . . 118 105 97 91 85 78 79 12.4 8.2 6.6 7.1 9.0 –1.3

Employer contributions to

Social Security and other

supplemental benefits . . . 22 21 20 18 18 16 15 4.8 5.0 11.1 — 12.5 6.7

—Represents zero.

1

Includes all government subsidies used to offset operating or capital deficits; private gifts, loans, contributions, and grants; sale of securities, real

estate; etc.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-9 provides estimated measures of sampling variability (coefficients of variation).

18

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Table 15. Television Broadcasting Services (SIC 4833) — Estimated Revenue and Expenses for Tax-Exempt

Firms: 1991 Through 1997

Item

Millions of dollars Percent change

1997 1996 1995 1994 1993 1992 1991

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

Total Revenue

Total1 ............... 1,454 1,314 1,311 1,355 1,626 1,770 1,677 10.7 0.2 –3.2 –16.7 –8.1 5.5

Operating Expenses

Total ................ 1,265 1,208 1,219 1,315 1,551 1,661 1,609 4.7 –0.9 –7.3 –15.2 –6.6 3.2

Annual payroll . . . . . . . . . . . 319 305 296 299 297 303 293 4.6 3.0 –1.0 0.7 –2.0 3.4

Employer contributions to

Social Security and other

supplemental benefits . . . 65 59 60 62 59 60 58 10.2 –1.7 –3.2 5.1 –1.7 3.4

1

Includes all government subsidies used to offset operating or capital deficits; private gifts, loans, contributions, and grants; sale of securities, real

estate; etc.

Note: Estimates are obtained from a sample of employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to

rounding. Appendix A, Table A-9 provides estimated measures of sampling variability (coefficients of variation).

19

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Cable and Other Pay Television Services

SUMMARY OF DATA

Revenue for the nation’s cable television industry rose

12.8 percent from 1996 to $43.4 billion in 1997.

Cable system operators reported basic service

revenue, the largest component of industry revenue, of

$21.1 billion. Pay-per-view and other premium service

revenue showed a 3.7 percent increase from 1996.

Cable television networks reported revenue from

programming services of $6.3 billion in 1997, an increase

of 16.1 percent from 1996. Advertising revenue for the

cable industry reached $5.6 billion in 1997, up 12.4

percent from 1996.

Total operating expenses rose 15.1 percent from 1996 to

$35.1 billion in 1997. Program and production costs, which

accounted for 36.6 percent of total operating expenses in

1997, increased 14.2 percent from 1996 to $12.8 billion.

Depreciation expenses were $6.1 billion in 1997, accounting for 17.4 percent of total operating expenses. In 1997,

annual payroll increased 19.1 percent from 1996, while

employer contributions to Social Security and other supplemental benefits rose 12.4 percent.

20

U.S. Census Bureau, the Official StatisticsTM Jan. 5, 1999
Table 16. Cable and Other Pay Television Services (SIC 4841) — Components of Estimated Operating Revenue and Expe

1990 Through 1997

Item

Millions of dollars Percent change Pe

1997 1996 1995 1994 1993 1992 1991 1990

1997/

1996

1996/

1995

1995/

1994

1994/

1993

1993/

1992

1992/

1991

1991/

1990 1997 1996 1995 19

Operating Revenue

Total1 ............. 43,412 38,488 33,890 30,289 29,639 27,465 24,954 23,192 12.8 13.6 11.9 2.2 7.9 10.1 7.6 (X) (X) (X) 

Total cable and other pay

television revenue ...... 41,499 37,027 32,541 29,304 28,769 26,653 23,895 22,165 12.1 13.8 11.0 1.9 7.9 11.5 7.8 100.0 100.0 100.0 10

Advertising .......... 5,627 5,007 4,466 3,597 2,981 2,491 2,100 1,882 12.4 12.1 24.2 20.7 19.7 18.6 11.6 13.6 13.5 13.7 1

Program revenue ...... 6,313 5,438 4,843 4,714 4,440 4,423 4,112 3,816 16.1 12.3 2.7 6.2 0.4 7.6 7.8 15.2 14.7 14.9 1

Basic service revenue . . . 21,134 18,621 16,310 14,547 14,904 13,532 11,985 10,933 13.5 14.2 12.1 –2.4 10.1 12.9 9.6 50.9 50.3 50.1 4

Pay-per-view and other

premium service revenue ............. 5,906 5,696 5,068 4,662 4,880 4,708 4,465 4,351 3.7 12.4 8.7 –4.5 3.7 5.4 2.6 14.2 15.4 15.6 1

Installation fees . . . . . . . 555 508 445 427 417 390 324 302 9.3 14.2 4.2 2.4 6.9 20.4 7.3 1.3 1.4 1.4 

Other cable revenue .... 1,964 1,757 1,409 1,357 1,147 1,109 909 881 11.8 24.7 3.8 18.3 3.4 22.0 3.2 4.7 4.7 4.3 

Operating Expenses

Total ............. 35,060 30,471 26,428 23,492 22,648 21,232 20,154 19,354 15.1 15.3 12.5 3.7 6.7 5.3 4.1 100.0 100.0 100.0 10

Annual payroll ......... 6,027 5,061 4,519 3,931 3,824 3,533 2,973 2,816 19.1 12.0 15.0 2.8 8.2 18.8 5.6 17.2 16.6 17.1 1

Employer contributions to

Social Security and othersupplemental benefits . . . 1,293 1,150 1,000 915 866 801 667 588 12.4 15.0 9.3 5.7 8.1 20.1 13.4 3.7 3.8 3.8 

Plans required under Federal and State legislation 504 413 381 354 341 326 256 239 22.0 8.4 7.6 3.8 4.6 27.3 7.1 1.4 1.4 1.4 Other fringe benefit plans 789 737 619 561 525 475 411 349 7.1 19.1 10.3 6.9 10.5 15.6 17.8 2.3 2.4 2.3 

Program and production

costs2 .............. 12,839 11,239 9,442 8,333 7,644 6,763 6,317 5,926 14.2 19.0 13.3 9.0 13.0 7.1 6.6 36.6 36.9 35.7 3

Depreciation . . . . . . . . . . 6,117 4,990 4,433 3,934 3,848 3,704 3,634 3,611 22.6 12.6 12.7 2.2 3.9 1.9 0.6 17.4 16.4 16.8 1

Buildings, offices, and

structures . . . . . . . . . . (S) (S) (S) (S) (S) (S) 229 232 (S) (S) (S) (S) (S) (S) –1.3 (S) (S) (S) 

Transmission systems . . 4,730 3,745 3,230 2,814 2,792 2,678 2,668 2,622 26.3 15.9 14.8 0.8 4.3 0.4 1.8 13.5 12.3 12.2 1Vehicles, machinery and

equipment, and othertangible assets ...... 1,136 914 765 773 747 769 737 757 24.3 19.5 –1.0 3.5 –2.9 4.3 –2.6 3.2 3.0 2.9 

Lease and rental . . . . . . . . 836 764 682 648 631 589 516 513 9.4 12.0 5.2 2.7 7.1 14.1 0.6 2.4 2.5 2.6 

Buildings, offices, and

structures . . . . . . . . . . 350 297 258 237 237 237 193 185 17.8 15.1 8.9 — — 22.8 4.3 1.0 1.0 1.0 

Transmission systems . . 373 350 318 310 300 270 240 241 6.6 10.1 2.6 3.3 11.1 12.5 –0.4 1.1 1.1 1.2 Vehicles, and other

machinery and equipment . . . . . . . . . . . . . 113 117 106 101 94 82 83 87 –3.4 10.4 5.0 7.4 14.6 –1.2 –4.6 0.3 0.4 0.4 

Purchased repairs . . . . . . . 648 615 555 459 432 373 341 343 5.4 10.8 20.9 6.3 15.8 9.4 –0.6 1.8 2.0 2.1 

Buildings, offices, and

structures . . . . . . . . . . 68 62 60 49 45 37 33 33 9.7 3.3 22.4 8.9 21.6 12.1 — 0.2 0.2 0.2 

Transmission systems . . 376 375 345 277 255 214 198 193 0.3 8.7 24.5 8.6 19.2 8.1 2.6 1.1 1.2 1.3 Vehicles, and other

machinery and equipment . . . . . . . . . . . . . 204 178 150 133 132 122 110 117 14.6 18.7 12.8 0.8 8.2 10.9 –6.0 0.6 0.6 0.6 

Insurance . . . . . . . . . . . . 213 190 175 162 165 145 115 110 12.1 8.6 8.0 –1.8 13.8 26.1 4.5 0.6 0.6 0.7 Telephone and other purchased communication

services . . . . . . . . . . . . 350 321 283 225 191 158 139 133 9.0 13.4 25.8 17.8 20.9 13.7 4.5 1.0 1.1 1.1 

Purchased utilities . . . . . . . 265 241 215 210 220 220 201 188 10.0 12.1 2.4 –4.5 — 9.5 6.9 0.8 0.8 0.8 Purchased advertising .... 1,153 1,062 891 708 601 537 472 467 8.6 19.2 — 17.8 11.9 13.8 1.1 3.3 3.5 3.4 

Taxes . . . . . . . . . . . . . . . 470 436 429 424 423 408 332 310 7.8 1.6 1.2 0.2 3.7 22.9 7.1 1.3 1.4 1.6 

Other operating expenses . 4,849 4,402 3,804 3,543 3,803 4,001 4,447 4,349 10.2 15.7 7.4 –6.8 –4.9 –10.0 2.3 13.8 14.4 14.4 1

X Not applicable. S Data do not meet publication standards because of high sampling variability or poor response quality. Some unpublished estimates c

subtracting published data from their respective totals. However, the figures obtained by such subtraction are subject to these same limitations. These unpublish

—Represents zero.

1Includes sources of revenue not shown separately.2Includes program and production costs from basic cable services, pay-per-view or premium services, in-house programs, and other program and production 

Note: Estimates are obtained from a sample of taxable employer firms only. Estimates are not adjusted for price changes. Detail may not add to total due to 

provides estimated measures of sampling variability (coefficients of variablity).

U.S. Census Bureau, the Official StatisticsTM Dec. 30, 1998
Appendix A. Measures of Sampling Variability

RELIABILITY OF THE ESTIMATES

An estimate based on a sample survey potentially

contains two types of errors - sampling and nonsampling.

Sampling error occurs because characteristics differ among

sampling units and because only a subset of the entire

population is measured in a sample survey. Nonsampling

error encompasses all other factors that contribute to the

total error of a sample survey estimate. The accuracy of a

survey result may be affected by these two types of errors.

Sampling and nonsampling errors are often measured

by the quantities bias and variance. Bias is the difference,

averaged over all possible samples of the same size and

design, between an estimator and its true (unknown)

population value. Any systematic error that affects all

samples taken under a specified design with the same

constant error may bias the resulting estimates. Variance is

the squared difference, averaged over all possible samples

of the same size and design, between an estimator and its

average value.

Descriptions of sampling and nonsampling errors for the

Annual Survey of Communication Services are provided in

the following sections.

Sampling Error

Because the estimates are based on a sample, exact

agreement with the results that would be obtained from a

complete enumeration of firms on the sampling frame

using the same enumeration procedures is not expected.

However, because each firm on the sampling frame has a

known probability of being selected into the sample, it is

possible to estimate the sampling variability of the survey

estimates.

The particular sample used in this survey is one of a

large number of samples of the same size that could have

been selected using the same design. If all possible

samples had been surveyed, under the same conditions,

an estimate of an unknown population value could have

been obtained from each sample. These samples give rise

to a distribution of estimates for the unknown population

value. A statistical measure of the variability among these

estimates is the standard error, which can be approximated

from any one sample. The standard error is defined as the

square root of the variance. The coefficient of variation (or

relative standard error) of an estimate is the standard error

of the estimate divided by the estimate. Note that measures of sampling variability, such as the standard error or

coefficient of variation, are estimated from the sample and

are also subject to sampling variability. (Technically, we

should refer to the estimated standard error or the estimated coefficient of variation of an estimator. However, for

the sake of brevity we have omitted this detail.) It is

important to note that the standard error and coefficient of

variation only measure sampling variability. They do not

capture any systematic biases in the estimates. Estimated

coefficients of variation for dollar volume estimates and

estimated ratios are shown in Tables A-1 through A-10. (All

coefficients of variation are expressed as percents.)

The estimate from a particular sample and the approximate standard error associated with the estimate can be

used to construct a confidence interval. A confidence

interval is a range about a given estimator that has a

specified probability of containing the estimator’s corresponding, unknown population value. Associated with each

interval is a percentage of confidence, which is interpreted

as follows. If, for each possible sample, an estimate of an

unknown population value and its approximate standard

error were obtained, then:

1. For approximately 90 percent of the possible samples,

the interval from 1.65 standard errors below to 1.65

standard errors above the estimate would include the

unknown population value.

2. For approximately 95 percent of the possible samples,

the interval from two standard errors below to two

standard errors above the estimate would include the

unknown population value.

Nonsampling Error

Nonsampling error encompasses all other factors that

contribute to the total error of a sample survey estimate

and may also occur in censuses. It is often helpful to think

of nonsampling error as arising from deficiencies or mistakes at some point in the survey process. In the Annual

Survey of Communication Services, nonsampling error can

be attributed to many sources: (1) inability to obtain information about all cases in the sample, (2) response errors,

(3) differences in the interpretation of the questions, (4)

mistakes in coding or keying the data obtained, and (5)

other errors of collection, response, coverage, and processing. Although no direct measurement of the potential

biases due to nonsampling error has been obtained, precautionary steps were taken in all phases of the collection,

processing, and tabulation of the data in an effort to

minimize their influence.

A major source of bias in the estimates is due to

imputing data for nonrespondents and for data which fail

edit. For all kinds of business combined, imputed revenue

amounts to about 10 percent of the national revenue

estimate.

A-1

U.S. Census Bureau, the Official StatisticsTM Jan. 7, 1999
Table A-1. Communications Services (SIC 48) — Estimated Coefficients of Variation for Summary Statistics, by

Kind of Business: 1996 and 1997

Item

Communications

services

(SIC 48)

Telephone

communications

(SIC 481)

Radiotelephone

communications

(SIC

4812)

Telephone

communications,

except

radiotelephone

(SIC

4813)

Radio and

television

broadcasting

(SIC 483)

Radio

broadcasting

(SIC

4832)

Television

broadcasting

(SIC

4833)

Cable and

other pay

television

services

(SIC

4841)

Telegraph

and other

communications

services,

not

elsewhere

classified

(SIC 4822

and 4899)

Total Revenue

Dollar volume

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.5 1.4 1.8 1.5 3.0 1.8 2.1 5.5

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 1.1 1.5 1.2 1.3 3.3 1.3 2.3 3.0

Year-to-year ratio 1997/1996 . . . . . . . 0.6 0.7 1.0 0.8 0.9 1.4 1.1 1.0 3.9

Operating Expenses

Dollar volume

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 1.6 1.2 1.9 1.7 3.1 2.0 2.1 4.9

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 1.1 1.2 1.3 1.4 3.6 1.5 2.3 3.1

Year-to-year ratio 1997/1996 . . . . . . . 0.7 0.8 0.9 1.0 0.8 1.5 0.9 1.3 3.5

Annual Payroll

Dollar volume

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.8 1.4 0.9 1.9 3.5 2.2 1.9 9.3

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.7 1.4 0.8 2.2 4.2 2.5 2.0 5.7

Year-to-year ratio 1997/1996 . . . . . . . 0.4 0.5 1.3 0.5 0.7 1.6 0.7 1.0 5.1

Employer Contributions to Social

Security and Other

Supplemental Benefits

Dollar volume

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 1.1 1.3 1.2 2.1 4.0 2.5 1.6 6.5

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 0.8 1.0 0.8 1.9 4.1 2.1 1.7 3.8

Year-to-year ratio 1997/1996 . . . . . . . 0.7 0.8 0.9 0.9 1.3 2.9 1.5 0.9 4.4

A-2

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-2. Telephone Communications (SIC 481) — Estimated Coefficients of Variation for Operating Revenue

and Expenses: 1996 and 1997

Item

Dollar volume

Year-to-year ratio

1997 1996 1997/1996

Operating Revenue

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 1.1 0.7

Local service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 0.6 0.4

Long-distance service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 2.4 1.7

Network access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.5 0.6

Cellular and other radiotelephone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 1.4 1.0

Directory advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 0.6 0.3

Other operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 3.0 2.3

Operating Expenses

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6 1.1 0.8

Annual payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 0.7 0.5

Employer contributions to Social Security and other supplemental benefits 1.1 0.8 0.8

Access charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 3.5 1.5

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 0.8 0.5

Lease and rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 7.4 7.5

Purchased repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 1.3 0.5

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 2.8 1.8

Telephone and other purchased communication services . . . . . . . . . . . . . . . 4.5 5.6 4.5

Purchased utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 0.8 0.5

Purchased advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 3.6 1.9

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 1.8 1.1

Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 1.1 1.1

A-3

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-3. Radiotelephone Communications (SIC 4812) — Estimated Coefficients of Variation for Operating

Revenue and Expenses: 1996 and 1997

Item

Dollar volume

Year-to-year

ratio 1997/1996

Percent of total

1997 1996 1997 1996

Operating Revenue

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 1.5 1.0 (X) (X)

Cellular and other radiotelephone . . . . . . . . . . . . . . . . . . . 1.3 1.4 1.0 0.4 0.4

Other operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0 7.6 5.6 6.4 7.0

Operating Expenses

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.2 0.9 (X) (X)

Annual payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 1.4 1.3 0.4 1.0

Employer contributions to Social Security and other

supplemental benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 1.0 0.9 0.3 0.6

Access charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 2.0 2.5 1.5 2.4

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.8 1.0 0.4 0.9

Lease and rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 3.0 2.8 1.1 2.4

Purchased repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 2.3 1.2 1.4 1.4

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0 2.6 4.1 4.4 2.6

Telephone and other purchased communication

services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.9 4.6 4.0 4.7 4.2

Purchased utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.9 1.0 1.0 1.2

Purchased advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.1 0.6 0.5 0.7

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 1.5 1.0 0.7 0.9

Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 1.4 1.0 0.6 0.7

X Not applicable.

A-4

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-4. Telephone Communications, Except Radiotelephone (SIC 4813) — Estimated Coefficients of Variation

for Operating Revenue and Expenses: 1996 and 1997

Item

Dollar volume

Year-to-year

ratio 1997/1996

Percent of total

1997 1996 1997 1996

Operating Revenue

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 1.2 0.8 (X) (X)

Local service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 0.6 0.4 1.4 1.0

Long-distance service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 2.4 1.7 1.9 1.4

Network access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.5 0.6 1.7 1.5

Cellular and other radiotelephone . . . . . . . . . . . . . . . . . . . (S) (S) (S) (S) (S)

Directory advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.8 0.6 0.3 1.4 1.0

Other operating revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 3.3 2.5 3.9 3.4

Operating Expenses

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9 1.3 1.0 (X) (X)

Annual payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 0.8 0.5 1.3 0.8

Employer contributions to Social Security and other

supplemental benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 0.8 0.9 1.7 1.0

Access charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8 3.6 1.5 3.2 2.6

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 0.9 0.6 1.5 1.1

Lease and rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.0 9.2 9.4 1.4 9.1

Purchased repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 1.3 0.6 1.6 1.3

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0 3.6 2.0 3.0 3.3

Telephone and other purchased communication

services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.7 8.0 6.4 6.4 7.8

Purchased utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 0.9 0.6 1.5 1.2

Purchased advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 5.0 2.5 5.8 4.2

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.8 1.9 1.1 1.5 1.4

Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . 1.8 1.4 1.4 1.0 1.2

X Not applicable. S Data do not meet publication standards because of high sampling variability or poor response quality.

A-5

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-5. Telephone Communications, Except Radiotelephone (SIC 4813) — Estimated Coefficients of Variation

for Local, Long-Distance, and Network Access Revenue, by Type of Customer and Service: 1996 and

1997

Item

Dollar volume

Type of customer Type of service

Residential Nonresidential Intrastate Interstate

Local Service

Dollar volume

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.9 0.7 1.2 0.9 6.3

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 0.6 0.8 0.6 7.1

Year-to-year ratio 1997/1996 . . . . . . . . . . . . . . . . . . . . . . . 0.4 0.4 0.5 0.4 5.4

Long-Distance Service

Dollar volume

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 6.8 3.2 3.5 3.5

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 4.0 2.6 2.3 2.5

Year-to-year ratio 1997/1996 . . . . . . . . . . . . . . . . . . . . . . . 1.7 2.8 2.0 1.8 1.6

Network Access

Dollar volume

1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 5.0 1.3 2.7 1.4

1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 4.9 1.0 2.2 1.3

Year-to-year ratio 1997/1996 . . . . . . . . . . . . . . . . . . . . . . . 0.6 1.5 0.7 1.1 0.5

A-6

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-6. Telephone Communications (SIC 481) — Estimated Coefficients of Variation for Cellular and Other

Radiotelephone Revenue, by Type of Service: 1997

Item 1997

(Dollar volume)

Cellular and other radiotelephone revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4

Type of Service

Air time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1

Basic service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6

Long-distance service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3

Roaming charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3

Other services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4

A-7

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-7. Broadcasting Services (SIC 483) — Estimated Coefficients of Variation for Revenue and Expenses for

Taxable and Tax-Exempt Firms, by Kind of Business: 1996 and 1997

Item

Total broadcasting

(SIC 483)

Radio

(SIC 4832)

Television

(SIC 4833)

Dollar volume Year-toyear ratio

1997/1996

Dollar volume Year-toyear ratio

1997/1996

Dollar volume Year-toyear ratio

1997 1996 1997 1996 1997 1996 1997/1996

Total Revenue

Total . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 1.3 0.9 3.0 3.3 1.4 1.8 1.3 1.1

Operating Expenses

Total . . . . . . . . . . . . . . . . . . . . . . . . . 1.7 1.4 0.8 3.1 3.6 1.5 2.0 1.5 0.9

Annual payroll . . . . . . . . . . . . . . . . . . . . 1.9 2.2 0.7 3.5 4.2 1.6 2.2 2.5 0.7

Employer contributions to Social

Security and other supplemental

benefits . . . . . . . . . . . . . . . . . . . . . . . . 2.1 1.9 1.3 4.0 4.1 2.9 2.5 2.1 1.5

Broadcast rights . . . . . . . . . . . . . . . . . . 2.6 2.3 1.1 7.2 5.1 3.3 2.7 2.4 1.2

Music license fees . . . . . . . . . . . . . . . . 1.7 1.7 1.2 3.0 2.9 2.0 1.1 1.8 1.3

Depreciation . . . . . . . . . . . . . . . . . . . . . 2.9 2.6 2.3 5.7 6.7 5.1 3.4 2.4 2.4

Lease and rental . . . . . . . . . . . . . . . . . 4.2 4.4 2.3 5.5 6.8 3.5 6.1 5.8 3.3

Purchased repairs . . . . . . . . . . . . . . . . 3.2 2.1 2.1 5.0 3.9 3.3 4.0 2.5 2.6

Insurance . . . . . . . . . . . . . . . . . . . . . . . 2.6 2.9 3.0 3.9 6.3 6.3 3.6 2.2 2.4

Telephone and other purchased

communication services . . . . . . . . . . 2.7 2.4 1.2 4.9 5.2 1.7 2.8 1.7 1.9

Purchased utilities . . . . . . . . . . . . . . . . 3.1 3.7 3.3 5.0 5.1 2.8 4.0 5.0 4.9

Purchased advertising . . . . . . . . . . . . 4.8 4.0 1.7 3.2 2.9 2.5 7.0 5.9 2.2

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 2.4 3.3 6.4 4.3 6.5 3.5 2.8 3.5

Other operating expenses . . . . . . . . . 1.9 1.4 1.9 3.2 3.5 3.4 2.3 1.3 2.2

A-8

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-8. Broadcasting Services (SIC 483) — Estimated Coefficients of Variation for Operating Revenue and

Expenses for Taxable Firms, by Kind of Business: 1996 and 1997

Item

Total broadcasting

(SIC 483)

Radio

(SIC 4832)

Television

(SIC 4833)

Dollar volume

Yearto-year

ratio

1997/

1996

Dollar volume

Yearto-year

ratio

1997/

1996

Percent of total Dollar volume

Yearto-year

ratio

1997/

1996

Percent of total

1997 1996 1997 1996 1997 1996 1997 1996 1997 1996

Operating Revenue

Total . . . . . . . . . . . . . . . . . 1.6 1.3 0.9 3.2 3.5 1.5 (X) (X) 1.8 1.3 1.1 (X) (X)

Station time sales . . . . . . . . 2.1 2.0 1.4 2.8 3.4 1.9 0.6 0.5 2.9 2.4 1.9 1.6 1.2

Network compensation . 5.3 5.1 5.3 3.6 4.2 3.5 3.4 4.6 6.0 5.9 6.1 5.6 5.1

National/regional

advertising . . . . . . . . . . . 2.3 2.1 1.9 4.5 5.0 2.7 2.4 2.4 2.6 2.3 2.4 1.3 1.2

Local advertising . . . . . . . 2.2 2.1 1.4 2.6 3.3 2.1 1.1 0.9 3.3 2.6 1.8 2.1 1.7

Network time sales . . . . . . . 1.9 1.2 0.7 9.3 5.6 5.3 6.6 3.6 2.0 1.2 0.7 2.2 1.7

Other operating revenue . . 4.0 3.4 3.7 8.7 12.6 12.4 6.4 11.6 4.5 2.8 3.4 4.0 2.3

Operating Expenses

Total . . . . . . . . . . . . . . . . . 1.8 1.5 0.8 3.3 3.8 1.6 (X) (X) 2.1 1.5 1.0 (X) (X)

Annual payroll . . . . . . . . . . . 2.0 2.3 0.8 3.6 4.4 1.6 0.9 1.2 2.3 2.5 0.8 1.6 2.1

Employer contributions to

Social Security and other

supplemental benefits . . . 2.2 1.9 1.4 4.3 4.1 3.0 2.8 2.7 2.6 2.1 1.6 1.8 2.0

Broadcast rights . . . . . . . . . 2.7 2.4 1.2 7.5 5.4 3.4 5.7 3.6 2.8 2.5 1.2 1.6 1.4

Music license fees . . . . . . . 1.7 1.7 1.2 3.0 3.0 2.0 2.3 2.3 1.1 1.8 1.3 1.9 2.0

Depreciation . . . . . . . . . . . . . 3.1 2.7 2.4 6.1 7.1 5.3 5.7 5.2 3.5 2.4 2.6 3.7 2.9

Lease and rental . . . . . . . . . 4.6 4.7 2.5 5.9 7.3 3.6 4.0 4.9 6.8 6.2 3.5 6.9 6.1

Purchased repairs . . . . . . . . 3.4 2.2 2.2 5.6 4.6 4.0 4.4 3.2 4.2 2.5 2.7 3.6 2.3

Insurance . . . . . . . . . . . . . . . 2.7 3.1 3.1 4.1 6.6 6.5 3.0 6.2 3.7 2.3 2.6 3.4 2.3

Telephone and other

purchased

communication services . 2.9 2.5 1.3 5.3 5.6 1.8 3.3 2.8 2.9 1.6 2.0 1.7 1.3

Purchased utilities . . . . . . . . 2.9 3.9 3.6 5.6 5.8 3.0 4.2 3.8 3.1 5.2 5.3 3.2 5.8

Purchased advertising . . . . 4.9 4.1 1.7 3.2 2.9 2.5 2.6 2.2 7.1 6.1 2.2 5.4 5.0

Taxes . . . . . . . . . . . . . . . . . . 3.3 2.4 3.3 6.5 4.5 6.8 6.3 3.5 3.5 2.8 3.5 3.9 2.4

Other operating expenses . 2.1 1.5 2.0 3.4 3.8 3.6 1.8 2.0 2.6 1.4 2.5 1.6 1.5

X Not applicable.

A-9

U.S. Census Bureau, the Official StatisticsTM Feb. 3, 1999
Table A-9. Broadcasting Services (SIC 483) — Estimated Coefficients of Variation for Revenue and Expenses for

Tax-Exempt Firms, by Kind of Business: 1996 and 1997

Item

Total broadcasting

(SIC 483)

Radio

(SIC 4832)

Television

(SIC 4833)

Dollar volume Year-toyear ratio

1997/1996

Dollar volume Year-toyear ratio

1997/1996

Dollar volume Year-toyear ratio

1997 1996 1997 1996 1997 1996 1997/1996

Total Revenue

Total . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 3.5 1.5 12.1 13.4 2.8 2.8 2.9 1.7

Operating Expenses

Total . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 3.3 0.5 12.4 12.7 1.2 2.8 2.8 0.6

Annual payroll . . . . . . . . . . . . . . . . . . . . 4.3 3.9 0.8 11.5 9.7 2.0 4.1 4.1 0.7

Employer contributions to Social

Security and other supplemental

benefits . . . . . . . . . . . . . . . . . . . . . . . . 4.6 4.4 0.8 12.5 11.5 1.3 4.5 4.3 1.1

Broadcast rights . . . . . . . . . . . . . . . . . . (S) (S) (S) (NA) (NA) (NA) (NA) (NA) (NA)

Music license fees . . . . . . . . . . . . . . . . (S) (S) (S) (NA) (NA) (NA) (NA) (NA) (NA)

Depreciation . . . . . . . . . . . . . . . . . . . . . 5.8 5.5 1.9 (NA) (NA) (NA) (NA) (NA) (NA)

Lease and rental ................. 10.3 10.4 9.0 (NA) (NA) (NA) (NA) (NA) (NA)

Purchased repairs . . . . . . . . . . . . . . . . 6.7 8.0 6.4 (NA) (NA) (NA) (NA) (NA) (NA)

Insurance . . . . . . . . . . . . . . . . . . . . . . . 3.7 4.8 2.6 (NA) (NA) (NA) (NA) (NA) (NA)

Telephone and other purchased

communication services . . . . . . . . . . 4.9 7.8 3.1 (NA) (NA) (NA) (NA) (NA) (NA)

Purchased utilities ................ 18.2 13.2 6.0 (NA) (NA) (NA) (NA) (NA) (NA)

Purchased advertising . . . . . . . . . . . . 2.7 3.6 3.5 (NA) (NA) (NA) (NA) (NA) (NA)

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . (S) (S) (S) (NA) (NA) (NA) (NA) (NA) (NA)

Other operating expenses . . . . . . . . . 3.0 3.4 1.1 (NA) (NA) (NA) (NA) (NA) (NA)

S Data do not meet publication standards because of high sampling variability or poor response quality. NA Not available.

A-10

U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Table A-10. Cable and Other Pay Television Services (SIC 4841) — Estimated Coefficients of Variation for

Components of Operating Revenue and Expenses for Taxable Firms: 1996 and 1997

Item

Dollar volume

Year-to-year ratio

1997/1996

Percent of total

1997 1996 1997 1996

Operating Revenue

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 2.3 1.0 (X) (X)

Total cable and other pay television revenue . . . . . . . . . . . . . . . . . . . . 2.1 2.4 0.9 (X) (X)

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0 5.1 0.7 4.4 4.2

Program revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 3.4 1.5 4.3 4.1

Basic service revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 2.6 1.1 1.2 1.0

Pay-per-view and other premium service revenue . . . . . . . . . . . . . . . 6.6 6.1 2.7 5.3 5.0

Installation fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.9 7.6 6.5 3.5 7.3

Other cable revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9 3.4 2.5 1.6 2.1

Operating Expenses

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 2.2 1.4 (X) (X)

Annual payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.9 1.8 1.0 0.9 1.3

Employer contributions to Social Security and other supplemental benefits 1.6 1.7 0.9 1.4 1.5

Plans required under Federal and State legislation . . . . . . . . . . . . . . 2.0 2.0 1.5 1.9 1.9

Other fringe benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 1.7 0.7 1.3 1.4

Program and production costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.7 2.7 1.1 1.3 1.2

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.0 3.8 3.1 2.2 2.3

Buildings, offices, and structures . . . . . . . . . . . . . . . . . . . . . . . . . . (S) (S) (S) (S) (S)

Transmission systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 4.3 3.4 2.3 2.8

Vehicles, machinery and equipment, and other tangible assets . . . . . . 4.6 6.7 8.0 4.7 7.3

Lease and rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 5.8 6.2 3.9 5.3

Buildings, offices, and structures . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 3.1 2.7 2.6 2.7

Transmission systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 10.3 9.5 8.1 9.9

Vehicles, and other machinery and equipment . . . . . . . . . . . . . . . . . 4.4 8.8 10.0 4.9 8.6

Purchased repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 2.6 2.1 2.1 2.2

Buildings, offices, and structures . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8 5.5 2.9 6.1 4.3

Transmission systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 3.1 2.8 2.6 3.0

Vehicles, and other machinery and equipment . . . . . . . . . . . . . . . . . 2.1 3.3 2.3 2.4 3.0

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 2.7 3.8 3.4 2.2

Telephone and other purchased communication services . . . . . . . . . . . 5.6 2.1 5.2 5.5 1.7

Purchased utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3 3.5 1.2 2.2 2.5

Purchased advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.6 1.4 1.4 1.6 1.9

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.9 2.9 2.1 2.3 2.2

Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.8 2.9 2.2 2.4 1.8

X Not applicable. S Data do not meet publication standards because of high sampling variability or poor response quality.

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U.S. Census Bureau, the Official StatisticsTM Jan. 15, 1999
Appendix B. Explanatory Material

DEFINITION OF TERMS

Firm. A firm is a business entity consisting of one or more

domestic establishments/locations under common ownership or control.

Federal income tax status. Firms that indicate all or part

of their income are exempt from Federal income tax under

provision of Section 501 or 521 of the Internal Revenue

Service and are classified as tax-exempt. Firms indicating

no such exemption are classified as taxable. For firms that

do not respond, the tax status classification is based upon

administrative records.

Revenue

Operating Revenue. Billings for services rendered and

any sales of merchandise during the survey year, even

though payments may be received at a later date. Excludes

income from interest, investments, gifts, loans, contributions or grants; the sale of securities, real estate, etc.; sales

taxes or other taxes collected from customers and remitted

directly by the firm to a local, State, or Federal tax agency;

revenue from the sale of merchandise and equipment from

retail establishments; and revenue from a domestic parent

organization, or from franchise locations owned by others

and any franchise or license fees.

Total Revenue. For tax-exempt firms, it includes all government subsidies used to offset operating or capital

deficits, private gifts, loans, contributions or grants, and all

other non-operating receipts such as income from investments, the sale of securities, and real estate. Total revenue

also includes any operating revenue incurred by the taxexempt firm.

Telephone Services

Local service revenue. Revenue from services provided

within the basic service area. This includes extended area

revenue; local private line revenue; customer premises

revenue; revenue from public telephone services provided

within the basic service area; and other local exchange

revenue, such as directory assistance, touch-tone line

services, call forwarding, and call waiting. Excludes cellular

and other mobile services revenue.

Long-distance service revenue. Revenue for providing

message services that terminate beyond the basic service

area. This includes message services that utilize the public

long-distance switching network and the basic subscriber

access line, and operator assistance or special billings

directly related to these calls; and revenue received from

international calls originating in the U.S., including that

portion paid to foreign companies for access to their

networks.

Network access revenue. Revenue for providing exchange

access services to an interexchange carrier or to an

end-user of telecommunications services beyond the exchange

carrier’s network and access revenue for calls originating in

foreign countries.

Cellular and other radiotelephone revenue. Revenue

from cellular and general radio telecommunications, including radio paging, mobile dispatching, and signalling services. Excludes revenue from installation fees and equipment sales.

Directory advertising revenue. Revenue from alphabetical and classified sections of directories, including amounts

charged for additional and bold face listings, marginal

displays, inserts and other advertisements. Excludes other

directory revenue (i.e. revenue from sale of directories,

charges for unlisted numbers, etc.).

Other operating revenue. Includes revenue from the sale

or lease of communication equipment (the fair sales value

of merchandise marketed under capital, finance, or ‘‘full

payout’’ leases); revenue from the rental of telecommunications plant or equipment furnished apart from services

rendered; operating and maintenance activities provided

for others; special billing arrangements for customers;

billing and collection services provided to other telecommunications firms; directory revenue from other than advertising services; installation fees; and services such as

general accounting, financial, legal, etc. provided to firms

under a license, general contract, or other agreement, as

well as the sale of merchandise and equipment. Excludes

the sale of merchandise and equipment from retail establishments, sales or other taxes collected from customers

and paid directly to a taxing authority, and nonoperating

revenue such as the sale of investments, securities, real

estate, etc.

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U.S. Census Bureau, the Official StatisticsTM Jul. 20, 1998
Radio and Television Broadcasting

Network compensation. Revenue from the sale of station time to networks. Excludes compensation paid to

stations owned by the network.

National/regional advertising revenue. Revenue from

the sale of station time to national and regional advertisers

or sponsors. This includes trade-outs and barter, and

political advertising revenue. Commissions paid to agency

representatives and brokers are excluded.

Local advertising revenue. Revenue from the sale of

station time to local advertisers or sponsors. This includes

trade-outs and barter, and political advertising revenue.

Commissions paid to agency representatives and brokers

are excluded.

Network time sales: Advertising revenue (networks

only). Network revenue from advertising sales. Commissions paid to agency representatives and brokers are

excluded.

Other operating revenue. Includes revenue from retransmission consent; the use of talent services, and technical

facilities; management fees; and revenue from the production and/or distribution of programs, except when the

production/distribution is provided by separate establishments of the company. Also includes satellite truck rental

revenue. Excludes tower rental revenue.

Cable Television and Other Services

Advertising revenue. Revenue from the sale of time to

advertisers or sponsors for national, spot and local advertising; classified channels; and program guides and other

printed material. Commissions paid to agency representatives and brokers are excluded.

Program revenue. Revenue received from system operators and other customers for programming services.

Basic revenue. Subscription fees received from residential and commercial customers for basic services.

Pay-per-view and other premium service revenue. Revenue from pay-per-view and other premium services, such

as movie channels.

Installation fees. Revenue from the installation of basic,

pay-per-view, and other premium services. Includes all

reconnect fees.

Other cable and pay TV revenue. Revenue from all other

cable and pay television services, such as service charges,

rental or lease of channel capacity, etc. Includes system

operator’s revenue from shop-at-home programs.

Telegraph and other message communication revenue. Revenue from telegraph and other message communications, such as electronic mail, facsimile transmissions, telegram and telex, and paging services.

Other communication services revenue. Revenue from

all other point-to-point communication services, including

satellite communications and radar station operations.

Operating Expenses

Costs incurred during the survey year even though

payment may be made at a later date. Exceptions are

annual payroll and employer contributions for employee

benefits, which are reported on a cash basis. Excludes

interest on loans and sales taxes and other taxes collected

from customers and paid directly to a taxing authority.

Annual payroll. All salaries, wages, commissions, bonuses,

and allowances for vacation, holiday, and sick leave paid to

employees during the survey year. For corporations, it

includes amounts paid to officers and executives; for

unincorporated businesses, it does not include payments

to proprietors or partners. Annual payroll is reported on a

cash basis before employee deductions for Social Security,

withholding taxes, insurance, union dues, etc.

Employer contributions for employee benefit plans

(reported on a cash basis)

Plans required under Federal and State legislation. The

employer’s cost for all legally required programs, such as

Social Security and Medicare (FICA), worker’s compensation insurance, unemployment tax, State disability insurance programs, etc.

Other fringe benefit plans. The employer’s cost for programs not required by law such as pension plans, stock

purchase plans, union-negotiated benefits, life insurance

benefits, insurance premiums for hospital and medical

plans, etc.

Access charges (telephone firms only). Payments to

local exchange carriers for access to their networks. Includes

fees for leased facilities, interconnection fees for cellular

phone services, and access charges paid to foreign companies for international calls originating in the United

States.

Broadcast rights (radio and television broadcasting

firms only). The cost of broadcast rights to feature films,

syndicated programming, sport events, etc.

Music license fees (radio and television broadcasting

firms only). The cost of music license fees payable to

music licensing organizations.

B-2

U.S. Census Bureau, the Official StatisticsTM Jul. 20, 1998
Network compensation fees (radio and television networks only). The cost of programming time purchased

from affiliated and independent stations. Excludes the cost

of programming time purchased from stations owned by

the network.

Program and production costs (cable television firms

only). The costs for providing basic cable services, pay or

premium television services, original programs produced

or developed in-house, talent fees, music license fees, the

value of bartered programming, and all other costs of

programming and production.

Retransmission consent fees (cable television firms

only). Fees paid by cable companies for the retransmission of broadcast signals. Includes the fair-market value

(not the actual costs) of reciprocal non-cash exchanges,

such as bartered advertising time, promotions, and carriage of new local and national cable channels.

Depreciation. Depreciation charges on assets owned by

the company. Includes depreciation on assets rented or

leased to others by the company under an operating lease

agreement. Also includes depreciation against assets owned

by the company within leaseholds and assets obtained

through capital lease agreements. Excludes depreciation

on intangible assets and assets leased to others by the

company under a capital lease agreement. These charges

are not adjusted for the value of depreciable assets sold or

traded for replacement purposes.

Buildings, offices, and structures. Depreciation charges on

buildings, offices, and structures owned by the company

(except those included as part of communication or transmission systems defined below).

Communication systems (telephone firms only). Depreciation charges on communication systems, including optical

fiber, digital and/or microwave switching equipment, satellite transmission, radio systems, terminal equipment, poles,

cable, etc.

Transmission systems (except telephone firms). Depreciation charges on transmission systems, including towers,

antennas, cables, wires, transmitters, transmission lines,

converters, tap offs, power supplies, microwave equipment, master control equipment, and other transmitting

equipment.

Vehicles, machinery and equipment, and other tangible

assets. Depreciation charges on vehicles, machinery and

equipment, and other tangible assets.

Lease and rental. Payments made to other companies for

the rental and leasing of assets owned by them. Excludes

payments to a parent company or organization or any of its

subsidiaries, and installment payments for assets obtained

through capital lease agreements.

Buildings, offices, and structures. Payments made to other

companies for the rental or leasing of buildings, offices, and

structures (except those included as part of communication

or transmission systems defined below).

Communication systems (telephone firms only). Payments

made to other companies for the rental or leasing of

communication systems including optical fiber, switching

equipment, satellite transmission, radio systems, terminal

equipment, poles, cable, etc.

Transmission systems (except telephone firms). Payments

made to other companies for the rental or leasing of

transmission systems, including towers, antennas, cables,

wires, transmitters, transmission lines, converters, tap offs,

power supplies, microwave equipment, master control equipment, and other transmitting equipment.

Vehicles, machinery and equipment. Payments made to

other companies for the rental or leasing of vehicles and

other machinery and equipment.

Purchased repairs. Payments made to other companies

for repairs. Excludes repair costs included as part of a

lease or rental agreement, improvements for which depreciation accounts are maintained, and repairs performed by

employees of the company or its subsidiaries.

Buildings, offices, and structures. Payments made to other

companies for repairs (including charges for parts and

labor) to buildings, offices, and structures (except those

included as part of communication or transmission systems

defined below).

Communication systems (telephone firms only). Payments

made to other companies for the repair of communication

systems, including optical fiber, switching equipment, satellite transmission, radio systems, terminal equipment,

poles, cables, etc.

Transmission systems (except telephone firms). Payments

made to other companies for the repair of transmission

systems, including towers, antennas, cables, wires, transmitters, transmission lines, converters, tap offs, power

supplies, microwave equipment, master control equipment,

and other transmitting equipment.

Vehicles, machinery and equipment. Payments made to

other companies for the repair of vehicles and other

machinery and equipment.

Insurance. The cost of all commercial insurance used to

protect the company against losses or damages to buildings, structures, and machinery and equipment caused by

fire, flood, wind, boiler explosion, or any other cause. Also

B-3

U.S. Census Bureau, the Official StatisticsTM Jul. 20, 1998
includes premiums on fidelity bonds of employees, insurance to protect against liability for deaths or injuries of

persons, and damages to property of others. Excludes cost

of premiums for worker’s compensation.

Telephone and other purchased communication services. The cost of nonrevenue-generating purchased communication services such as telephone, telex, telegraph,

teletype, etc.

Purchased utilities. The cost of purchased utilities, including electricity; fuels consumed for heat, power or generating electricity; water; sewer; and refuse removal. Excludes

payments for these utility services if included as part of a

lease or rental agreement.

Purchased advertising. The cost of purchased advertising including payments to other firms for printing, media,

and other services and materials used for advertising.

Taxes and licenses. The cost of taxes and licenses,

including business license fees, real estate and personal

property taxes (such as taxes on motor vehicles, machinery, equipment, and inventories), and special assessments. Also includes FCC license fees. Excludes income,

sales, payroll, excise taxes, and other taxes collected from

customers and paid to local, State, or Federal government

agencies.

Other operating expenses. All other operating expenses

not reported above, including billing services; news gathering services; rating services; travel expenses; dues and

subscriptions; accounting and legal fees; office supplies;

and data processing expenses, including the cost of computer software purchased under licensing agreements.

Excludes interest on loans, income taxes, and local sales

and excise taxes.

Sample Design

Introduction

The Annual Survey of Communication Services (ASCS)

is a probability sample of employer firms engaged in

providing point-to-point communication services, as defined

by Major Group 48 of the 1987 Standard Industrial Classification (SIC) Manual. By firm, we mean a business organization consisting of one or more establishments under

common ownership or control. (An establishment is a

single physical location where business is conducted or

where services are performed.) The sample covers both

taxable firms and firms exempt from Federal income taxes.

Firms without employees, or nonemployers, are not included

in the estimates.

Initial Sampling

The sampling frame for the ASCS was constructed from

the Census Bureau’s Standard Statistical Establishment

List (SSEL) as of December 31, 1994. The SSEL is a

multi-relational database that contains a record for each

known establishment connected with an employer firm. A

firm can be classified as either a multiunit or a singleunit

firm. A multiunit firm is a firm which owns or operates two or

more establishments, whereas a single-unit firm is a firm

which owns or operates only one establishment. Establishments that are owned by the same multiunit firm are linked

using a unique six-digit identification number, called an

alpha number, assigned by the Census Bureau. A link

between each establishment and its corresponding Employer

Identification Number (EIN) is also maintained. The EIN is

a number assigned by the IRS to any legal entity that

anticipates hiring employees. Under the Federal Insurance

Contributions Act (FICA), each firm with paid employees

must have an EIN. The EIN is used by the firm as an

identifier to report social security payments for its employees to the IRS.

There is a simple structure that connects an employer

firm with its establishments via the EIN. Essentially an

employer firm is a cluster of one or more EINs and EINs are

clusters of one or more establishments. Each employer

firm is associated with at least one EIN and only one firm

can use a given EIN. However, an employer firm may use

several different EINs for reporting to the IRS. Similarly

there is a one-to-many relationship between EINs and

establishments. Each EIN is associated with one or more

establishments, but each establishment is associated with

only one EIN.

The sampling frame for the ASCS contains two types of

sampling units — alpha numbers and EINs. Both sampling

units represent clusters of one or more establishments.

The primary stratification of the frame is by kind-of-business

group. We further stratify (substratify) the sampling units

within kind-of-business groups by a measure of size related

to their annual receipts or revenue as reported in the 1992

Census of Transportation, Communications, and Utilities

Industries. To reduce the variance of the estimates, the

sampling units with the largest measures of size are

selected ‘‘with certainty.’’ This means they are sure to be

selected and will represent only themselves (i.e., have a

selection probability of one and a sampling weight of one).

Within each kind of business a substratum boundary (or

cutoff) that divides the certainty units from the noncertainty

units is determined. These cutoffs are based on a statistical

analysis of data from the 1992 Census of Transportation,

Communications, and Utilities Industries. Accordingly, the

cutoffs are on a 1992 receipts (or revenue) basis. This

analysis is also used to allocate the sample among the

kind-of-business groups. The allocation results in the minimum sample size required to achieve specified sampling

variability constraints for receipts (or revenue) estimates

for different kind-of-business groups.

B-4

U.S. Census Bureau, the Official StatisticsTM Jul. 20, 1998
The first step in the sample selection identified certainty

firms. If a firm had receipts or revenue (for 1994 adjusted to

a 1992 basis) greater than the certainty cutoff for its major

kind of business, the firm was selected into the sample with

certainty. For multiunit firms selected with certainty, the

sampling unit is the alpha number. For singleunit firms

selected with certainty, the sampling unit is the EIN. If a firm

was selected with certainty and had more than one establishment at the time of sampling, any new establishments

that the firm acquires, even if under new or different EINs,

are included in the sample with certainty. This is because

the firm was selected using its unique six-digit alpha

number. However, if a single-unit firm was selected with

certainty, only future establishments associated with that

firm’s EIN are included with certainty; any new EINs that

might later be associated with that firm are subjected to

sampling through the quarterly birth-selection procedure

(described later).

All firms not selected with certainty were subjected to

sampling on an EIN basis. If a firm had more than one EIN,

each of its EINs was treated as a separate sampling unit.

To be eligible for the initial sampling, an EIN had to have

nonzero payroll in 1994. The EINs were then stratified

according to their major kind of business and their estimated receipts or revenue (on a 1992 basis). Within each

noncertainty stratum, a simple random sample of EINs was

selected. The sampling rates for the EINs selected from the

noncertainty strata varied between 1 in 1.1 and 1 in 150.

Sampling New Employer Firms (Births)

Periodically, we update the sample to represent new

EINs issued since the initial sample selection. These new

EINs, called births, are new EINs recently assigned by the

IRS, on the latest available IRS mailing list for FICA

taxpayers, and assigned a kind-of-business classification

(if possible) by the Social Security Administration (SSA).

EIN births are sampled on a quarterly basis (in November

of the survey year and in February, May, and August of the

year following the survey year) using a two-phase selection

procedure. In the first phase, births are stratified by kind of

business and a measure of size based on expected

employment or quarterly payroll. A relatively large sample

is drawn and canvassed to obtain a more reliable measure

of size, consisting of receipts (or revenue) in two recent

months, and a more detailed kind-of-business code, if

needed.

Using this more reliable information, the selected births

from the first phase are subjected to probability proportionalto-size sampling with overall probabilities equivalent to

those used in drawing the initial sample from the 1994

SSEL. Because of the time it takes for a new employer firm

to acquire an EIN from the IRS, and because of the time

needed to accomplish the two-phase birth-selection procedure, EIN births are added to the sample approximately six

to nine months after they begin operation.

The EIN births that are selected in the quarterly birthselection procedure in November of the survey year are

included in the main mailing of the ASCS questionnaires in

January of the following year.

To better represent all EIN births in the survey year, and

specifically to account for the coverage lag in the birthselection procedure, we add EIN births that are selected in

the year following the survey year. We mail survey forms to

these births in June and August to supplement the main

survey mailing.

If a selected EIN ceases to be an employer, it becomes

inactive. An inactive EIN is not mailed if it becomes inactive

prior to the initial mailout of the survey year. An inactive EIN

that resumes being an employer becomes a reactivation

and is mailed during the initial mailing (if active at the time)

or as part of one of the two supplemental mailings.

Estimation Procedure

To be eligible for the sample canvass and tabulation in a

given year, a noncertainty EIN must meet both of the

following requirements:

• It must be on the latest available IRS mailing list for FICA

taxpayers from the previous quarter.

• It must have been selected from the SSEL in either the

initial sampling or during the quarterly birth-selection

procedure.

EINs selected into the sample with certainty are not

dropped from canvass and tabulation if they are no longer

on the IRS mailing list. Rather, the firm that used the EIN is

contacted, and if a successor EIN is found, it is added to

the survey. For both inactive and reactivated EINs, data are

tabulated for only the portion of the survey period that EIN

reported payroll to the IRS.

Estimates from the ASCS are based on the summation

of weighted data (reported and imputed), where the weight

for a given sampling unit is the inverse of its probability of

selection.

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U.S. Census Bureau, the Official StatisticsTM Jul. 20, 1998
Appendix C. Kind-of-Business Classification

The communication industries included in the report are

classified in accordance with the 1987 edition of the

Standard Industrial Classification Manual, issued by the

Office of Management and Budget for purposes of providing a standard for the classification and presentation of

data by all Federal agencies. Each establishment, firm, and

organizations owned and operated by Federal, State, or

organization is classified according to the major service

(determined by the volume of revenue) it provides. Establishments, firms, and organizations owned and operated by

Federal, State, or local governments are excluded. A

description of each kind-of-business classification presented in this report follows.

COMMUNICATIONS SERVICES

(SIC MAJOR GROUP 48)

Establishments furnishing point-to-point communication

services, whether intended to be received aurally or visually; and radio and television broadcasting. Establishments

engaged in providing paging and beeper services and

those leasing telephone lines or other methods of telephone transmission, such as optical fiber lines and microwave or satellite facilities, and reselling the use of such

methods to others. Excludes establishments primarily engaged

in furnishing telephone answering services.

Radiotelephone Communications (SIC 4812)

Establishments primarily engaged in providing two-way

radiotelephone communication services, such as cellular

telephone services. Also includes telephone paging and

beeper service and those engaged in leasing telephone

lines or other methods of telephone transmission, such as

microwave or satellite facilities and fiber optic lines, and

reselling the use of such methods to others. Excludes

establishments primarily engaged in furnishing telephone

answering services.

Telephone Communications, Except

Radiotelephone (SIC 4813)

Establishments primarily engaged in furnishing telephone voice and data communications, except radiotelephone and telephone answering services. Also includes

establishments engaged in leasing telephone lines or other

methods of telephone transmission, such as microwave or

satellite facilities and fiber optic lines, and reselling the use

of such methods to others. Excludes establishments primarily engaged in furnishing radiotelephone communications and those furnishing telephone answering services.

Telegraph and Other Message Communications

(SIC 4822)

Establishments primarily engaged in furnishing telegraph and other nonvocal message communications services, such as cablegram, electronic mail, and facsimile

transmission services.

Radio Broadcasting Stations (SIC 4832)

Establishments primarily engaged in broadcasting aural

programs by radio to the public. Included in this industry

are commercial, religious, educational, and other radio

stations as well as establishments engaged in radio broadcasting and the production of radio program materials.

Excludes separate establishments primarily engaged in

producing radio program materials.

Television Broadcasting Stations (SIC 4833)

Establishments primarily engaged in broadcasting visual

programs by television to the public except cable and other

pay television services. Included in this industry are commercial, religious, educational, and other television stations

as well as establishments engaged in television broadcasting and the production of taped television program materials. Excludes separate establishments primarily engaged

in furnishing cable and other pay television services or

producing taped television program materials.

Cable and Other Pay Television Services

(SIC 4841)

Establishments primarily engaged in the dissemination

of visual and textual television programs on a subscription

or fee basis. Included in this industry are establishments

which primarily engage in cablecasting and which also

produce taped program materials. Excludes separate establishments primarily engaged in producing taped television

or motion picture program materials.

Communications Services, Not Elsewhere

Classified (SIC 4899)

Establishments primarily engaged in furnishing communications services, not elsewhere classified. Excludes establishments primarily engaged in providing online information

retrieval services on a contract or fee basis.

C-1

U.S. Census Bureau, the Official StatisticsTM Jul. 20, 1998
Appendix D. Report Forms

D-1

U.S. Census Bureau, the Official StatisticsTM Feb. 2, 1999
B-516

Read ALL instructions carefully, including the survey coverage below. Instructions

accompanying each item number are abbreviated. For complete details, see the

"COVERAGE AND REPORTING INSTRUCTIONS" SHEET ON THE THIRD PANEL OF THIS

FORM. If book figures are not available, carefully prepared estimates are acceptable.

(Please correct any error in name, address, and ZIP Code)

Item 1 NUMBER OF LOCATIONS

OMB No. 0607-0706: Approval Expires 09/30/99

BEFORE

COMPLETING

YOUR REPORT

This report covers regulated and nonregulated domestic locations operated by your

company and its subsidiaries primarily engaged in providing telephone communication

services (including local, long-distance, alternate access, cellular, beeper, and paging services)

as listed on the "Coverage and Reporting Instructions" on the third panel of this form.

SURVEY COVERAGE

If your activities do not appear to be covered by this survey, please describe your

kind of business in the "Remarks" section on page 4 of this form.

Item 2 ORGANIZATIONAL STATUS — Mark (X) the ONE box which best describes this company during 1997.

Corporation

Individual proprietorship

Partnership

0

1

2

5 Governmental — Specify 9 Other — Specify

CONTINUE WITH ITEM 3 ON PAGE 2

1997

ANNUAL SURVEY OF

COMMUNICATION

SERVICES

FORM

(1-23-98)

U.S. DEPARTMENT OF COMMERCE BUREAU OF THE CENSUS

B-516

TELEPHONE AND

WIRELESS SERVICES

BUREAU OF THE CENSUS

1201 East 10th Street

Jeffersonville, IN 47132-0001

RETURN TO

Any questions call 1–800–772–7851

081

1997

Number

CENSUS

USE

In correspondence pertaining to this report, please refer 011 012

to the IDENTIFICATION NUMBER shown below.

Key

code

601

NOTICE – Response to this inquiry is required by law (title 13, U.S. Code). By the same law, your

report to the Census Bureau is confidential. It may be seen only by sworn Census employees and may

be used for statistical purposes. The law also provides that copies retained in your files are immune

from legal process.

Enter the total number of telephone communication locations operated by this company 

as of December 31, 1997. A location is defined as an establishment 

with paid company personnel.

D-2
a. Local service revenue 602

603

604

Item 3 OPERATING REVENUE Estimates are acceptable if book figures

are not available. Key

code

1997

Bil. Mil. Thou. Dol.

Line a — Report cellular and other mobile

services revenue in line d.

b. Long-distance service revenue

c. Network access revenue

d. Cellular and other radiotelephone revenue

e. Directory advertising revenue

Line d — Report installation fees and the sale

of equipment in line f.

Line e — Report other directory revenue (i.e.,

revenue from the sale of directories, charges for

unlisted telephone numbers, etc.) in line f.

Line f — Exclude the sale of merchandise and

equipment from retail locations. Also exclude

sales or other taxes collected from customers and

paid directly to a taxing authority, and

nonoperating revenue such as income from

investments, the sale of securities, real estate, etc.

NOTE — If the amount reported on this line is

greater than 50 percent of the total operating

revenue reported in line g, indicate the source

of this revenue in the "Remarks" section on

page 4 of this form.

f. Other operating revenue

g. TOTAL OPERATING REVENUE

Page 2

Item 5 ANALYSIS OF REVENUE

Other customers

Key

code

100%

100%

%

%

%

%

%

%

%

613

614

TOTAL

(2)

(1) Residential customers

(1) Air time

(2) Basic service

(3) Long-distance service

(4) Roaming charges

(5) Other

TOTAL

Line 5c – Firms providing cellular and other

radiotelephone services: Report in lines c(1)

through c(5) respectively, the percentage of

cellular and other radiotelephone revenue

(reported in item 3d) from the sale of air time;

basic and other services, such as call waiting 

and voice mail; long-distance services;

intercarrier nonhome-subscriber traffic services

(roaming charges); and all other sources, such 

as radio paging, mobile dispatching, and

signaling services.

FORM B-516 (1-23-98)

Percentage of

long-distance

service revenue

Percentage of

network access

revenue

See the attached "Coverage and Reporting

Instructions" sheet before completing this

section.

608

Interstate service

Key

code

100%

%

%

%

%

617

618

TOTAL

(2)

(1) Intrastate service

Enter "0" in items where applicable. Do not

combine data for two or more detail lines.

What were the percentages of local

service, long-distance service, and

network access revenue by type 

of customer?

NOTE – The sum of lines c(1) through c(5)

should equal 100 percent.

Percentage of cellular and other 

radiotelephone revenue from:

5c.

619

620

621

622

623

1997 Key

code

1997 Key

code

100%

%

%

611

612

Key

code

100%

615

616

%

%

Key

code

100%

625

626

Percentage of 

long-distance 

service revenue

Percentage of 

network access revenue

Percentage of

local service revenue

1997

1997 1997 1997

5a.

What were the percentages of

local service, long-distance

service, and network access

revenue by type of service?

5b.

605

606

607

Key

code

100%

%

%

609

610

Percentage of 

local service 

revenue

1997

Item 4 SALES TAXES AND OTHER TAXES

Were sales taxes or other taxes collected directly

from customers and forwarded directly to taxing

authorities? Exclude sales taxes on your purchases

that were remitted directly to taxing authorities.

Mil. Thou. Dol.

1 YES – Report the amount of such taxes

2 NO – Continue with item 5

1997

099

624

Bil.

Key

code

D-3
Key

code

1997

Bil. Mil. Thou. Dol.

Line e — Exclude payments by your firm to

the parent company or organization, or any of

its subsidiaries, for use of assets owned by

them; and installment payments for assets

obtained by your company through capital lease

agreements.

Line f — Exclude repair costs included as part

of a lease or rental agreement, improvements

for which depreciation accounts are maintained,

and repairs performed by employees of your

company and its subsidiaries.

Estimates are acceptable if book

figures are not available.

e. Lease and rental costs

Line g — Exclude worker’s compensation

premiums. Report these costs in line b(1).

Line i — Exclude the cost of utility services if

included as part of a lease or rental agreement.

f.

(1) Buildings, offices, and structures

(2) Communication systems

Vehicles, and other machinery 

and equipment

(3)

FORM B-516 (5-23-98) Page 3

PAYROLL AND OTHER

OPERATING EXPENSES Item 6

Line k — Exclude income, payroll, sales, and

other taxes collected from customers and paid

directly to local, State, or Federal government

agencies.

Lines l and m — See the attached "Coverage

and Reporting Instructions" sheet to calculate

Other Operating Expenses and Total Operating

Expenses as they pertain to this survey.

Cost of purchased repairs

(1) Buildings, offices, and structures

(2) Communication systems

Vehicles, and other machinery and

equipment

(3)

g. Cost of insurance

h. Cost of telephone and other

purchased communication services

i. Cost of purchased utilities

j. Cost of purchased advertising

k. Taxes and licenses

l. Other operating expenses

m. TOTAL OPERATING EXPENSES

Item 7 INTEREST EXPENSE

Key

code

1997

Bil. Mil. Thou. Dol.

Report all interest expense, including capitalized interest. 

Estimates are acceptable if book figures are not available. 645

a.

b.

c.

(1)

(2)

d. Depreciation and amortization charges

(1) Buildings, offices, and structures

(2) Communication systems

Vehicles, machinery and

equipment, and other 

tangible assets

(3)

Access charges

Plans required under Federal and

State legislation (including Social

Security and Medicare (FICA),

worker’s compensation 

insurance, etc.)

Other fringe benefit plans

(including medical insurance, 

life insurance, etc.)

Annual payroll

Employer contributions to employee

benefit plans

CONTINUE WITH ITEM 8 ON PAGE 4

Line a — Report, on a cash basis, the gross

earnings paid to employees prior to deductions.

If an unincorporated concern, exclude

payments to proprietors or partners.

Line b — Report, on a cash basis, in line b(1)

employer’s cost for legally required programs.

Report, on a cash basis, in line b(2) employer’s

cost for programs not required by law. Report in

line b(1) and line b(2) the amounts actually

contributed.

Line c — Firms providing cellular phone

service, report interconnection fees here.

Line d — Exclude depreciation on intangible

assets and assets leased to others by you under

a capital lease agreement. Do not adjust for the

value of depreciable assets sold or traded for

replacement purposes.

See the attached "Coverage and Reporting

Instructions" sheet before completing this

section.

Enter "0" in items where applicable. Do not

combine data for two or more detail lines.

NOTE — If the amount reported on line l is

greater than 50 percent of the total operating

expenses reported in line m, indicate the

source of these expenses in the "Remarks"

section on page 4 of this form.

634

635

636

637

638

639

640

641

642

643

644

646

647

627

628

629

630

631

632

633

D-4
Page 4 FORM B-516 (1-23-98)

Item 8 REPORT PERIOD

Item 9

Mark (X) the one box which best describes 

the period covered by your report.

1 Calendar year — 

Go to item 9

Fiscal year

Less than 12 months







2

3

OWNERSHIP OR CONTROL

Key

code

1997

From

Month Day Year

To

648

649

a. Does another company own more than 

50 percent of the voting stock or have

the power to control the management

and policies of this company?

1

2

Yes

No – Continue with item 9b

Name of owning or controlling company

Number and street

City, State, and ZIP Code

EIN

Name of company acquired or merged with

Number and street

City, State, and ZIP Code

Date of merger

or acquisition 

Month Year

b. Did this company acquire or merge with 

another company in 1997?

1

2

Yes

No – Continue with item 10

–

–

Item 10 CERTIFICATION — This report is substantially accurate and was prepared in accordance with instructions.

CENSUS USE

Name of person completing this report Telephone

Area code Number Extension

Title Date

Signature of authorized person

Address (Number and street, city, State, ZIP Code)

REMARKS – Please use this space for any explanations that may be essential in understanding your reported data.

If the data reported in items 3 through 7 are for

a period other than the "calendar year," please

enter the beginning and ending dates.

FAX

Area code Number

EIN

091

084

087

093

096

094

092

095

098

Extension

Detach the instruction sheet and return the completed form in the enclosed envelope.

If you prefer, you may fax the completed form to 1–800–447–4613.

085

086

088

089 090

D-5
REPORTING INSTRUCTIONS

Please read all instructions and complete all items in this report.

This will save on costly and time-consuming follow-up.

• Report only for those locations primarily engaged in the activities

 defined in the coverage section above.

• For locations sold or acquired during 1997, report only 

 for the period that the locations were operated by this company.

• Regulated common carriers, report data on a financial reporting

 basis.

• Report all charges or billings for services rendered and any sales

 of merchandise during 1997, even though payments may 

 be received at a later date. Do not deduct allowances for 

 uncollectable accounts. Exclude revenue collected on behalf of 

 another company and nonoperating revenue such as income 

 from investments, the sale of securities or real estate, etc. Exclude 

revenue from a domestic parent organization (intracompany 

 transfers), or from franchise locations owned by others and any 

 franchise or license fees. Exclude sales or other taxes collected 

 from customers and paid directly to a taxing authority.

• Report dollar values in whole dollars (omit cents).

• If book figures are not available, carefully prepared estimates are

 acceptable.

• Prorate revenue derived from services provided on a contractual 

 basis according to the work accomplished. (Only include the

 amounts applicable to the report period.)

• Report data for calendar year 1997. If calendar year 

 records are not available, data for the latest fiscal year are 

 acceptable. Indicate the period covered in item 8. Please note, 

 however, that estimates for calendar year 1997 are preferable

 book figures covering a different time period.

Item 3 — OPERATING REVENUE

Enter "0" in items where applicable. Do not combine data for

two or more detail lines.

Line a — Report local service revenue, including extended area

revenue. Include local private line revenue; customer premises

revenue; revenue from public telephone services provided within

the basic service area; and other local exchange revenue, such 

as directory assistance, touch-tone line services, call forwarding, 

and call waiting. Report cellular and other mobile services 

revenue in item 3d.

Line b — Report revenue derived from message services that

terminate beyond the basic service area. Include message services

that utilize the public long-distance switching network and the basic

subscriber access line. Also, include any charges for operator

assistance or special billings directly related to these calls.

Report all revenue received from international calls originating in

the United States, including the portion paid to foreign companies

for accessing their network.

Line c — Report revenue from providing exchange access services

to an interexchange carrier or to an end-user of telecommunications

services beyond the exchange carrier’s network. Include access

revenue for calls originating in foreign countries.

Line e — Report revenue derived from alphabetical and classified

sections of directories, including amounts charged for additional

and bold face listings, marginal displays, inserts and other

advertisements. Report other directory revenue (i.e., revenue

from the sale of directories, charges for unlisted telephone

numbers, etc.) in item 3f.

Line f — Report other operating revenue including revenue from

the sale or lease of communication equipment (include fair sales

value of merchandise marketed in 1997 under capital, finance, or

"full payout" leases). Also, include revenue from the rental of

telecommunications plant or equipment furnished apart from

services rendered; operating and maintenance activities for others;

special billing arrangements for customers; billing and collection

services provided to other telecommunications firms; directory

revenue from other than advertising services; installation fees; and

services such as general accounting, financial, legal, etc. provided

to firms under a license, general contract, or other agreement.

Include sales of merchandise and equipment. Exclude the sale of

merchandise and equipment from retail locations. Also, exclude

sales or other taxes collected from customers and paid directly to a

taxing authority, and nonoperating revenue such as the sale of

investments, securities, real estate, etc. NOTE — If the amount

reported on this line is greater than 50 percent of the total

operating revenue reported in item 3g, indicate the source of

this revenue in the "Remarks" section on page 4 of this form.

Line g — Report the sum of items 3a through 3f.

Item 5 — ANALYSIS OF REVENUE

Line d — Report revenue from cellular and general radio

telecommunications systems, including radio paging, mobile

dispatching, and signaling services. Report installation fees and

the sale of equipment in item 3f.

Line b — Report in lines b(1) and b(2) the percentage of local

service, long-distance service, and network access revenue

(reported in items 3a, 3b, and 3c respectively) by type of service.

NOTE — The sum of lines b(1) and b(2) should equal 100

percent.

NOTE — Round percentage items to the nearest whole

percent. Enter "0" in items where applicable. Do not

combine data for two or more detail lines.

FORM B-516 (1-23-98)

WHEN COMPLETING THIS REPORT, PLEASE READ THESE INSTRUCTIONS CAREFULLY — Detach this panel before returning your report.

NOTE — The sum of lines a(1) and a(2) should equal 100

percent.

Line a — Report in lines a(1) and a(2) the percentage of local

service, long-distance service, and network access revenue

(reported in items 3a, 3b, and 3c respectively) by type of customer.

SPECIFIC SURVEY COVERAGE

1997 ANNUAL SURVEY OF COMMUNICATION SERVICES

TELEPHONE AND WIRELESS SERVICES 

COVERAGE AND REPORTING INSTRUCTIONS

Exclude subsidiaries or operating units which are requested to

submit separate 1997 Annual Survey of Communication Services

reports to the Bureau of the Census.

• Radiotelephone Communications — Locations, including 

 radio common carriers, satellite common carriers, and 

 wireline companies, primarily engaged in providing two-way 

 radiotelephone communications services, such as cellular

 telephone services. Also includes locations primarily engaged

 in providing telephone paging and beeper services and those

 engaged in leasing telephone lines or other methods of 

 telephone transmission, such as optical fiber lines and 

 microwave or satellite facilities, and reselling the use of such 

 methods to others.

• Other Telephone Communications — Locations primarily

 engaged in furnishing telephone voice and data communications. 

 Transmission can be via wireline, optical fiber, coaxial cable, 

 microwave or satellite. Includes common carriers furnishing 

If your activities do not appear to be covered by this survey,

please describe your kind of business in the " Remarks"

section on page 4 of this form.

Line c — Firms providing cellular and other radiotelephone

services: Report in lines c(1) through c(5) respectively, the

percentage of cellular and other radiotelephone revenue (reported

in item 3d) from the sale of air time; basic and other services, such

as call waiting and voice mail; long-distance services; intercarrier

nonhome-subscriber traffic services (roaming charges); and all

other sources, such as radio paging, mobile dispatching, and

signaling services.

NOTE — The sum of lines c(1) through c(5) should equal 100

percent.

Include data for auxiliary facilities of your company primarily 

engaged in furnishing supporting services to your communication 

business activities, such as central administrative offices, garages,

warehouses, and locations providing maintenance and repairs

of your machinery and equipment.

Please retain a copy of the completed form for your records.

 domestic local and long-distance services and international 

 services, specialized long-distance carriers and resellers of these

 services.

D-6
REPORTING INSTRUCTIONS — Continued

Item 6 — PAYROLL AND OTHER OPERATING EXPENSES

Line d — Report in line d(1) the amount of depreciation and

amortization charges against buildings, offices, and structures

owned by your firm. Report in line d(2) the amount of depreciation

on communication systems (optical fiber, digital and/or microwave

switching, satellite transmission, etc.). Report in line d(3) the

amount of depreciation and amortization charges against other

tangible assets owned by your firm. Include depreciation on assets

rented or leased to others by you under an operating lease

agreement. Include depreciation on assets owned and used by your

firm within leaseholds, and assets obtained through capital lease

agreements. Exclude depreciation on intangible assets and assets

leased to others by you under a capital lease agreement. Do not

adjust for the value of depreciable assets sold or traded for

replacement purposes.

FORM B-516 (1-23-98)

Line e — Report in line e(1) the cost of renting or leasing buildings,

offices, and structures. Report in line e(2) the cost of renting or

leasing communication systems (optical fiber, digital and/or

microwave switching, satellite transmissions, etc.). Report in line e(3)

the cost of renting or leasing vehicles and other machinery and

equipment. Exclude payments by your firm to the parent company

or organization, or any of its subsidiaries, for use of assets owned by

them; and installment payments for assets obtained by your

company through capital lease agreements.

Line f — Report in line f(1) the cost of purchased repairs (including

charges for parts and labor) to buildings, offices, and structures.

Report in line f(2) the cost of purchased repairs to communication

systems (optical fiber, digital and/or microwave switching, satellite

transmissions, and other transmitting equipment). Report in line f(3)

purchased repairs to vehicles, and other machinery and

equipment. Exclude repair costs included as part of a lease or

rental agreement, improvements for which depreciation accounts

are maintained, and repairs performed by employees of your

company and its subsidiaries.

Line h — Report the cost of nonrevenue-generating purchased

communication services, including telephone, telex, telegraph,

teletype, etc.

Line i — Report the cost of purchased utilities, including the cost of

purchased electricity, and purchased fuels consumed for heat,

power or generating electricity. Include water, sewer, and refuse

removal. Exclude the cost of utility services if included as part of a

lease or rental agreement.

Line j — Report the cost of purchased advertising, including

payments to other firms for printing, media, and other services and

materials used for advertising. Also, include the cost of

telemarketing services.

Line k — Report the cost of taxes and licenses, including business

license fees, real and personal property taxes (such as taxes on real

estate, motor vehicles, machinery, equipment, and inventories), and

special assessments. Exclude income, sales, payroll, excise taxes,

and other taxes collected from customers and paid to local, State,

or Federal government agencies.

Total operating expenses (from income statement)

+ Taxes — If not included in operating expenses, 

see item 6k on page 3.

+ [Annual payroll (cash basis) + Employer contributions

 (cash basis)]

– [Annual payroll (accrual basis) + Employer contributions

 (accrual basis)]

= TOTAL OPERATING EXPENSES — Place in item 6m

• Other operating expenses — If other operating expenses are

 unavailable, calculate them as follows —

TOTAL OPERATING EXPENSES FOR SURVEY 

(as calculated in item 6m)

– (Items 6a through 6k on survey report form)

= OTHER OPERATING EXPENSES — Place in item 6l.

Other operating expenses include billing services, travel expenses,

accounting and legal fees, dues and subscriptions, office supplies,

data processing expenses, etc. Include the cost of computer

software purchased under licensing agreements. Exclude income

taxes, and local sales and excise taxes.

Line g — Report the cost of all commercial insurance, including

that used to protect the company against losses or damages to

buildings, structures, and machinery and equipment caused by fire,

flood, wind, boiler explosion, or any other cause. Include premiums

on fidelity bonds of employees, and insurance to protect against

liability for deaths or injuries of persons and damages to the

property of others. Exclude workers’s compensation

premiums. Report these costs in line b(1). 

Lines l and m

• Total operating expenses — Will not match to the company’s

 income statement due to the cash and accrual methods requested

 for this survey. As a guide, compute total operating expenses as

 follows:

Line a — Report, on a cash basis, the gross earnings paid to

employees prior to such deductions as employees’ Social Security

contributions, withholding taxes, group insurance premiums, union

dues, savings bonds, etc. Include all wages, salaries, commissions

to own employees, dismissal pay, paid bonuses, vacation and sick

leave pay, and employee contributions to qualified pension plans

whether or not subject to income or FICA tax. If a corporation,

include salaries of officers; if an unincorporated concern, exclude

payments to proprietors or partners.

Line b — Report, on a cash basis, in line b(1) employer’s cost for

legally required programs, such as Social Security and Medicare

(FICA) , worker’s compensation insurance, unemployment tax, and

State disability insurance programs. Report, on a cash basis, in line

b(2) employer’s cost for programs not required by law, such as

pension plans, stock purchase plans, union-negotiated benefits, life

insurance benefits and insurance premiums for hospital and

medical plans. Report in line b(1) and line b(2) the amounts actually

contributed.

Line c — Report payments to local exchange carriers for access to

their networks. Also, include fees for leased facilities. Firms

providing cellular phone service, report interconnection fees

here. Include access charges paid to foreign companies for

international calls originating in the United States.

• Report costs incurred during 1997 even though payments may

 be made at a later date. Exclude sales taxes or other taxes 

 collected from customers and paid directly to a taxing authority.

• Definitions for annual payroll are the same as those used on the

 Employer’s Quarterly Federal Tax Return, Treasury Form 941.

Enter "0" in items where applicable. Do not combine data for

two or more detail lines.

NOTE — If the amount reported on line l is greater than 

50 percent of the total operating expenses reported in 

line m, indicate the source of these expenses in the

"Remarks" section on page 4 of this form.

Public reporting burden for this collection of information is estimated to average 8.0 hours per response, including the

time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and

completing and reviewing the collection of information. Send comments regarding this burden estimate or any other

aspect of this collection of information, including suggestions for reducing this burden, to the Associate Director for

Administration/Controller, Attn: Paperwork Reduction Project 0607-0706, Room 3104, FB 3, Bureau of the Census,

Washington, DC 20233-0001. PLEASE INCLUDE FORM NAME AND NUMBER IN ALL CORRESPONDENCE. Respondents

are not required to respond to any information collection unless it displays a valid approval number from the Office of

Management and Budget. This 8-digit number appears in the top right corner on the front of this form.

D-7
B-518

1997 ANNUAL

SURVEY OF

COMMUNICATION

SERVICES

FORM

(1-30-98)

B-518

NUMBER OF LOCATIONS 1997 

Number

OMB No. 0607-0706: Approval Expires 09/30/99

RADIO AND TELEVISION

BROADCASTING

Enter the total number of broadcasting locations

operated by this company as of December 31, 1997.

A location is defined as an establishment with paid

company personnel. a. Radio stations

Key

code

701

Enter the total number of –

b. Television stations

c. Other broadcasting locations

TOTAL NUMBER OF BROADCASTING

LOCATIONS/STATIONS – Sum of 

lines a through c

d.

This report covers all domestic locations operated by your company and its subsidiaries primarily engaged in providing radio and

television broadcasting services as listed on the "Coverage and Reporting Instructions" on the third panel of this form.

SURVEY COVERAGE

If your activities do not appear to be covered by this survey, please describe your kind of business in the "Remarks"

section on page 4 of this form.

Line a – Report the number of radio stations covered

by this survey.

Line b – Report the number of television stations

covered by this survey.

Line c – Report the number of other broadcasting

locations covered by this survey. (Include network

broadcasting locations.)

Line d – Report the total number of broadcasting

locations and stations covered by this report. Sum of

lines a through c.

702

703

601

ORGANIZATIONAL STATUS — Mark (X) the ONE box which best describes this company during 1997.

Corporation

Individual proprietorship

Partnership

0

1

2

5 Governmental — Specify 9 Other — Specify

Item 1

Item 2

© NOTE – If you reported both radio and television stations in items 1a and 1b above, ©

continue with item 1e. Otherwise, SKIP to item 2.

1997 

Percent

(1)

(2)

Radio stations?

Television stations?

Key

code

716

717

What percentage of this firm’s total operating

revenue was from –

Line e – Report the percentage of this firm’s total

operating revenue (item 4g, page 2) from all radio

stations reported in item 1a and all television stations

reported in item 1b.

e.

TOTAL

%

%

NOTE – The sum of lines e(1) and e(2) should

equal 100 percent.

Read ALL instructions carefully, including the survey coverage below. Instructions

accompanying each item number are abbreviated. For complete details, see the "COVERAGE

AND REPORTING INSTRUCTIONS" ON THE THIRD PANEL OF THIS FORM. If book figures are

not available, carefully prepared estimates are acceptable.

U.S. DEPARTMENT OF COMMERCE BUREAU OF THE CENSUS

(Please correct any error in name, address, and ZIP Code)

BEFORE

COMPLETING

YOUR REPORT

BUREAU OF THE CENSUS

1201 East 10th Street

Jeffersonville, IN 47132-0001

RETURN TO

Any questions call 1–800–772–7851

©

081

NOTICE – Response to this inquiry is required by law (title 13, U.S. Code). By the same law, your

report to the Census Bureau is confidential. It may be seen only by sworn Census employees and may

be used for statistical purposes. The law also provides that copies retained in your files are immune

from legal process.

CENSUS

USE

011 012 In correspondence pertaining to this report, please refer

to the IDENTIFICATION NUMBER shown below.

100%

D-8
See the attached "Coverage and Reporting

Instructions" sheet before completing this

section.

Item 6

Line a — Report, on a cash basis, the gross

earnings paid to employees prior to deductions. If

an unincorporated concern, exclude payments to

proprietors or partners.

Estimates are acceptable if book

figures are not available.

a. Network compensation

b. National/regional advertising revenue (net)

d. TOTAL STATION TIME SALES (net) — 

Sum of lines a through c.

Page 2 FORM B-518 (1-30-98)

Item 4 REVENUE

704

705

706

707

1997

Bil. Mil. Thou. Dol.

Line a – Exclude network compensation paid to

stations owned by your company.

Lines b and c – Deduct commissions paid to

agency representatives and brokers.

Line e – (Networks only) Deduct commissions paid

to agency representatives and brokers.

OTHER OPERATING REVENUE

Line f – Include satellite truck rental revenue, but

exclude tower rental revenue. NOTE – If the

amount reported on this line is greater than 50

percent of total operating revenue reported in

line g, indicate the source of this revenue in

the "Remarks" section on page 4 of this form.

TAXABLE ORGANIZATIONS – SKIP now to item 5.

STATION TIME SALES

c. Local advertising revenue (net)

e. Advertising revenue (net)

f. OTHER OPERATING REVENUE 607

g. TOTAL OPERATING REVENUE 608

NONOPERATING INCOME (Tax-exempt

organizations only; all others SKIP to item 5.)

NONOPERATING INCOME

709

h. Subsidies, gifts, loans, contributions, 

and grants

Line i – NOTE – If the amount reported on this

line is greater than 50 percent of the total

revenue reported in line j, indicate the source

of this revenue in the "Remarks" section on

page 4 of this form.

Line j – Tax-exempt organizations only. Report

the sum of items 4g through 4i.

i. Other nonoperating income 710

j. TOTAL REVENUE 711

Line b — Report, on a cash basis, in line b(1)

employer’s cost for legally required programs.

Report, on a cash basis, in line b(2) employer’s cost

for programs not required by law. Report in line b(1)

and line b(2) the amounts actually contributed.

a. Annual payroll

b. Employer contributions to employee

benefit plans

627

628

629

712

713

1997

(1) Plans required under Federal and State

legislation (including Social Security and

Medicare (FICA), worker’s compensation 

insurance, etc.)

(2) Other fringe benefit plans (including

medical insurance, life insurance, etc.)

c. Broadcast rights

d. Music license fees

1997

Bil. Mil. Thou. Dol.

Enter "0" in items where applicable. Do not

combine data for two or more detail lines.

See the attached "Coverage and Reporting

Instructions" sheet before completing this

section.

Enter "0" in items where applicable. Do not

combine data for two or more detail lines.

© ©

708

TAX STATUS

a. Is this firm or organization operated on a not-for-profit basis?

b. Was all or part of the income of this firm or organization

exempt from Federal income taxes under section 501 of the

Internal Revenue Code?

1 YES 2 NO

1 YES 2 NO

© NOTE – If you answered "NO" to item 3a, SKIP to item 4, otherwise continue with item 3b. ©

Item 3

STATION TIME SALES

NETWORK TIME SALES (Networks only)

NETWORK TIME SALES

007

009

Key

code

PAYROLL AND OTHER 

OPERATING EXPENSES Bil. Mil. Thou. Dol.

Estimates are acceptable if book 

figures are not available.

SUBTOTAL — Sums of lines a through d. 

Please enter these totals here and on next page.

Item 5 SALES TAXES AND OTHER TAXES

Were sales taxes or other taxes collected from

customers and forwarded directly to taxing

authorities? Exclude sales taxes on your purchases

that were remitted directly to taxing authorities.

Mil. Thou. Dol. 1 YES – Report the amount of such taxes

2 NO – Continue with item 6

1997

099

Key

code

Key

code

Bil.

Key

code

624

D-9
PAYROLL AND OTHER OPERATING

EXPENSES — Continued Item 6

FORM B-518 (1-30-98) Page 3

Line h — Exclude repair costs included as part of a

lease or rental agreement, improvements for which

depreciation accounts are maintained, and repairs

performed by employees of your company and its

subsidiaries.

Estimates are acceptable if 

book figures are not available.

h. Cost of purchased repairs

(1) Buildings, offices, and structures 637

(2) Transmission systems 638

i. Cost of insurance 640

j. Cost of telephone and other purchased

communication services 641

k. Cost of purchased utilities 642

Line i — Exclude worker’s compensation

premiums. Report these costs in line b(1).

Line m — Exclude income, payroll, sales, and

other taxes collected from customers and paid

directly to local, State, or Federal government

agencies.

(3) Vehicles, and other machinery and 

equipment 639

l. Cost of purchased advertising 643

m. Taxes and licenses 644

n. Other operating expenses 646

o. TOTAL OPERATING EXPENSES 647

Item 7 INTEREST EXPENSE

645

1997

Bil. Mil. Thou. Dol.

Key

code

Report all interest expense, including capitalized interest.

Estimates are acceptable if book figures are not available.

Item 8 REPORT PERIOD

Mark (X) the one box which best describes 

the period covered by your report.

1 Calendar year — 

Go to item 9

Fiscal year

Less than 12 months







2

3

1997

From

Month Day Year

To

648

649

Lines n and o — See the attached "Coverage and

Reporting Instructions" sheet to calculate Other

Operating Expenses and Total Operating Expenses

as they pertain to this survey.

Line k — Exclude the cost of utility services if

included as part of a lease or rental agreement.

Key

code

Line g — Exclude payments by your firm to the

parent company or organization, or any of its

subsidiaries, for use of assets owned by them; and

installment payments for assets obtained by your

company through capital lease agreements.

g. Lease and rental costs

(1) Buildings, offices, and structures 634

(2) Transmission systems 635

636

(3) Vehicles, and other machinery and 

equipment

If the data reported in items 4 through 7 are for

a period other than the "calendar year," please

enter the beginning and ending dates.

NOTE — If the amount reported on line n is

greater than 50 percent of the total operating

expenses reported in line o, indicate the

source of these expenses in the "Remarks"

section on page 4 of this form.

Line e — (Networks only) Exclude the cost of

programming time purchased from stations owned

by your company.

Line f — Exclude depreciation on intangible assets

and assets leased to others by you under a capital

lease agreement. Do not adjust for the value of

depreciable assets sold or traded for replacement

purposes.

e. Network compensation fees 714

f. Depreciation and amortization

charges

(1) Buildings, offices, and structures 631

(2) Transmission systems 632

(3) Vehicles, machinery and equipment,

and other tangible assets 633

1997 Key

code Bil. Mil. Thou. Dol.

BEFORE continuing — Enter

subtotals for lines a through d

from previous page.

D-10
Page 4 FORM B-518 (1-30-98)

Item 10 CERTIFICATION — This report is substantially accurate and was prepared in accordance with instructions.

CENSUS USE

Name of person completing this report Telephone

Area code Number Extension

Title Date

Signature of authorized person

Address (Number and street, city, State, ZIP Code)

FAX

Area code Number

093

092

096

095

098

094

Extension

REMARKS — Please use this space for any explanations that may be essential in understanding your reported data.

091

Item 9 OWNERSHIP OR CONTROL

a. Does another company own more than 

50 percent of the voting stock or have

the power to control the management

and policies of this company?

1

2

YES

NO — Continue with item 9b

Name of owning or controlling company

Number and street

City, State, and ZIP Code

EIN

Name of company acquired or merged with

Number and street

City, State, and ZIP Code

Date of merger

or acquisition 

Month Year

EIN

b. Did this company acquire or merge with 

another company in 1997?

1

2

YES

NO — Continue with item 10

–

–

084

087

Detach the instruction sheet and return the completed form in the enclosed envelope.

If you prefer, you may fax the completed form to 1–800–447–4613.

085

089

088

090

086

D-11
Please read all instructions and complete all items in this report.

This will save on costly and time-consuming follow-up.

• Report only for those locations primarily engaged in the

activities defined in the coverage section above.

• For locations sold or acquired during 1997, report only for the

period that the locations were operated by this company.

• Report data for calendar year 1997. If calendar year records are

not available, data for the latest fiscal year are acceptable.

Indicate the period covered in item 8. Please note, however, that

estimates for calendar year 1997 are preferable to book figures

covering a different time period.

Item 4 — REVENUE

Enter "0" in items where applicable. Do not combine data for

two or more detail lines.

FORM B-518 (1-30-98)

WHEN COMPLETING THIS REPORT, PLEASE READ THESE INSTRUCTIONS CAREFULLY — Detach this panel before returning your report.

• Report all charges or billings for services rendered and any sales

of merchandise during 1997, even though payments may be

received at a later date. Do not deduct allowances for

uncollectable accounts. Exclude revenue from a domestic

parent organization (intracompany transfers), or from franchise

locations owned by others and any franchise or license fees.

Exclude sales and other taxes collected from customers and

paid directly to a taxing authority.

• Trade-outs and barter — Estimate spots exchanged for

program material at a fair value consistent with purchases of

other program material of similar quality and quantity. Estimate

spots exchanged for merchandise or services as the amount the

station would pay for the merchandise or service received.

• Report costs incurred during 1997 even though payments may be

made at a later date. Exclude sales or other taxes collected from

customers and paid directly to a taxing authority.

• Definitions for annual payroll are the same as those used on

the Employer’s Quarterly Federal Tax Return, Treasury Form

941.

• Report dollar values in whole dollars (omit cents).

• If book figures are not available, carefully prepared estimates

are acceptable.

• Prorate revenue derived from services provided on a contractual

basis according to the work accomplished. (Only include the

amounts applicable to the report period.)

Line a — Report the sale of station time to networks. (Networks —

Exclude network compensation paid to stations owned by your

company.)

Line b — Report the sale of station time to national and regional

advertisers or sponsors. Include trade-outs and barter, and political

advertising revenue. Deduct commissions paid to agency

representatives and brokers.

Line c — Report the sale of station time to local advertisers or

sponsors. Include trade-outs and barter, and political advertising

revenue. Deduct commissions paid to agency representatives and

brokers.

Line d — Report the sum of items 4a through 4c.

OTHER OPERATING REVENUE

Line f — Report other operating revenue. Include revenue from

retransmission consent; the use of talent services, and technical

facilities; and management fees. Include revenue from the

production and/or distribution of programs, except when the

production/distribution is provided by separate locations of this

company. Include satellite truck rental revenue, but exclude tower

rental revenue. NOTE — If the amount reported on this line is

greater than 50 percent of total operating revenue reported

in item 4g, indicate the source of this revenue in the

"Remarks" section on page 4 of this form.

TOTAL OPERATING REVENUE

Line g — Report the sum of items 4d through 4f.

NONOPERATING INCOME (Tax-exempt organizations only)

Line h — Report all government subsidies used to offset operating

or capital deficits, private gifts, loans, contributions, or grants.

Line i — Report other nonoperating receipts, such as income from

investments, the sale of securities, real estate, etc.

NOTE — If the amount reported on this line is greater than

50 percent of the total revenue reported in item 4j, indicate

the source of this revenue in the "Remarks" section on 

page 4 of this form.

Line j — Tax-exempt organizations — Report the sum of items

4g through 4i.

Item 6 — PAYROLL AND OTHER OPERATING EXPENSES

Line a — Report, on a cash basis, the gross earnings paid to

employees prior to such deductions as employees’ Social Security

contributions, withholding taxes, group insurance premiums, union

dues, savings bonds, etc. Include all wages, salaries, commissions

to own employees, dismissal pay, paid bonuses, vacation and sick

leave pay, and employee contributions to qualified pension plans

whether or not subject to income or FICA tax. If a corporation,

include salaries of officers; if an unincorporated concern, exclude

payments to proprietors or partners.

Line b — Report, on a cash basis, in line b(1) employer’s cost for

legally required programs, such as Social Security and Medicare

(FICA), worker’s compensation insurance, unemployment tax, and

State disability insurance programs. Report, on a cash basis, in line

b(2) employer’s cost for programs not required by law, such as

pension plans, stock purchase plans, union-negotiated benefits, life

insurance benefits, and insurance premiums for hospital and

medical plans. Report in line b(1) and line b(2) the amounts actually

contributed.

Line e — (Networks only) Report network revenue from advertising

sales. Deduct commissions paid to agency representatives and

brokers.

REPORTING INSTRUCTIONS

SPECIFIC SURVEY COVERAGE

1997 ANNUAL SURVEY OF COMMUNICATION SERVICES

RADIO AND TELEVISION BROADCASTING

COVERAGE AND REPORTING INSTRUCTIONS

Exclude subsidiaries or operating units which are requested to

submit separate 1997 Annual Survey of Communication Services

reports to the Bureau of the Census.

• Radio Broadcasting Stations and Networks — Locations

 primarily engaged in broadcasting aural programs by radio to the

 public. Included are commercial, religious, educational and other

 radio stations, as well as locations primarily engaged in radio

 broadcasting and which produce radio program materials. Also

 included are radio networks.

• Television Broadcasting Stations and Networks — Locations

 primarily engaged in broadcasting visual programs by television to

 the public. Included are commercial, religious, educational and

 other television stations, as well as locations primarily engaged in 

 television broadcasting and which produce television program 

 materials. Also included are television networks.

Include data for auxiliary facilities of your company primarily

engaged in furnishing supporting services to your communication

business activities, such as central administrative offices, garages,

warehouses, and locations providing maintenance and repairs of

your machinery and equipment. Also, include revenue and expense

data for offices of your company engaged in soliciting advertising.

If your activities do not appear to be covered by this survey,

please describe your kind of business in the "Remarks"

section on page 4 of this form.

Enter "0" in items where applicable. Do not combine data for

two or more detail lines.

Please retain a copy of the completed form for your records.

STATION TIME SALES

NETWORK TIME SALES

D-12
REPORTING INSTRUCTIONS — Continued

Item 6 — PAYROLL AND OTHER OPERATING EXPENSES —

Continued

Line i — Report the cost of all commercial insurance, including that

used to protect the company against losses or damages to

buildings, structures, and machinery and equipment caused by fire,

flood, wind, boiler explosion, or any other cause. Include premiums

on fidelity bonds of employees and insurance to protect against

liability for deaths or injuries of persons and damages to property

of others. Exclude worker’s compensation premiums. Report

these costs in line b(1).

FORM B-518 (1-30-98)

Total operating expenses (from income statement)

+ Taxes — If not included in operating expenses,

see item 6m on page 3.

+ [Annual payroll (cash basis) + Employer contributions

 (cash basis)]

– [Annual payroll (accrual basis) + Employer contributions

 (accrual basis)]

= TOTAL OPERATING EXPENSES — Place in item 6o

• Other operating expenses — If other operating expenses are

 unavailable, calculate them as follows —

TOTAL OPERATING EXPENSES FOR SURVEY 

(as calculated in item 6o)

– (Items 6a through 6m on survey report form)

= OTHER OPERATING EXPENSES — Place in item 6n.

Other operating expenses include billing services, travel expenses,

accounting and legal fees, dues and subscriptions, office supplies,

data processing expenses, etc. Include the cost of computer

software purchased under licensing agreements. Exclude income

taxes, and local sales and excise taxes.

• Total operating expenses — Will not match to the company’s

 income statement due to the cash and accrual methods requested

 for this survey. As a guide, compute total operating expenses as

 follows:

Line j — Report the cost of nonrevenue-generating purchased

communication services, including telephone, telex, telegraph,

teletype, etc.

Line k — Report the cost of purchased utilities, including the cost

of purchased electricity, and purchased fuels consumed for heat,

power or generating electricity. Include water, sewer, and refuse

removal. Exclude the cost of utility services if included as part of a

lease or rental agreement.

Line l — Report the cost of purchased advertising, including

payments to other firms for printing, media, and other services and

materials used for advertising.

Line m — Report the cost of taxes and licenses including business

license fees, real and personal property taxes (such as taxes on real

estate, motor vehicles, machinery, equipment, and inventories), and

special assessments. Include FCC license fees. Exclude income,

sales, payroll, excise taxes, and other taxes collected from

customers and paid to local, State, or Federal government

agencies.

Lines n and o

Line f — Report in line f(1) the amount of depreciation and

amortization charges against buildings, offices, and structures

owned by your firm. Report in line f(2) the amount of depreciation

and amortization charges against transmission systems (towers,

antennas, transmitters, transmission lines, microwave equipment,

master control equipment, and other transmitting equipment)

owned by your firm. Report in line f(3) the amount of depreciation

and amortization charges against vehicles, machinery and

equipment, and other tangible assets owned by your firm. Include

depreciation on assets rented or leased to others by you under an

operating lease agreement. Include depreciation on assets owned

and used by your firm within leaseholds, and assets obtained

through capital lease agreements. Exclude depreciation on

intangible assets and assets leased to others by you under a capital

lease agreement. Do not adjust for the value of depreciable assets

sold or traded for replacement purposes.

Line g — Report in line g(1) the cost of renting or leasing buildings,

offices, and structures. Report in line g(2) the cost of renting or

leasing transmission systems (towers, antennas, transmitters,

transmission lines, microwave equipment, master control

equipment, and other transmitting equipment). Report in line g(3)

the cost of renting or leasing vehicles, and other machinery and

equipment. Exclude payments by your firm to the parent company

or organization, or any of its subsidiaries, for use of assets owned

by them; and installment payments for assets obtained by your

company through capital lease agreements.

Line h — Report in line h(1) the cost of purchased repairs

(including charges for parts and labor) to buildings, offices, and

structures. Report in line h(2) the cost of purchased repairs to

transmission systems (towers, antennas, transmitters, transmission

lines, microwave equipment, master control equipment, and other

transmitting equipment). Report in line h(3) purchased repairs to

vehicles, and other machinery and equipment. Exclude repair

costs included as part of a lease or rental agreement,

improvements for which depreciation accounts are maintained, and

repairs performed by employees of your company and its

subsidiaries.

Line c — Report the cost of broadcast rights to feature films,

syndicated programming, sports events, etc.

Line d — Report the cost of music license fees payable to music

licensing organizations.

Line e — (Networks only) Report the cost of programming time

purchased from affiliated and independent stations. (Exclude the

cost of programming time purchased from stations owned by your

company.)

NOTE — If the amount reported on line n is greater than 

50 percent of the total operating expenses reported in line o,

indicate the source of these expenses in the "Remarks"

section on page 4 of this form.

Public reporting burden for this collection of information is estimated to average 5.0 hours per response, including the

time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and

completing and reviewing the collection of information. Send comments regarding this burden estimate or any other

aspect of this collection of information, including suggestions for reducing this burden, to the Associate Director for

Administration/Controller, Attn: Paperwork Reduction Project 0607-0706, Room 3104, FB 3, Bureau of the Census,

Washington, DC 20233-0001. PLEASE INCLUDE FORM NAME AND NUMBER IN ALL CORRESPONDENCE. Respondents

are not required to respond to any information collection unless it displays a valid approval number from the Office of

Management and Budget. This 8-digit number appears in the top right corner on the front of this form.

D-13
B-520

FORM

(2-03-98)

B-520

Item 1 NUMBER OF LOCATIONS

OMB No. 0607-0706: Approval Expires 09/30/99

CABLE TV AND 

OTHER SERVICES

Enter the total number of cable television and other communication services locations

operated by this company as of December 31, 1997. A location is defined as an

establishment with paid company personnel.

Key

code

601

This report covers all domestic locations operated by your company and its subsidiaries primarily engaged in providing cable and

other pay television services and other communication services (including telegraph, cablegram, electronic mail, and telex services;

and radar satellite, and missile tracking stations) as listed on the "Coverage and Reporting Instructions" on the third panel of this form.

Item 3 TAX STATUS

a. Is this firm or organization operated on a not-for-profit basis?

b. Was all or part of the income of this firm or organization exempt from Federal income taxes

under section 501 of the Internal Revenue Code?

NOTE — If you answered "NO" to item 3a, SKIP to item 4, otherwise continue with item 3b.

1 YES 2 NO

1 YES 2 NO

If your activities do not appear to be covered by this survey, please describe your kind of business in the "Remarks"

section on page 4 of this form.

Item 2 ORGANIZATIONAL STATUS — Mark (X) the ONE box which best describes this company during 1997.

0 Corporation

1 Individual proprietorship

2 Partnership

5 Governmental — Specify 9 Other – Specify

© ©

1997 ANNUAL

SURVEY OF

COMMUNICATION

SERVICES

SURVEY COVERAGE

Read ALL instructions carefully, including the survey coverage below. Instructions

accompanying each item number are abbreviated. For complete details, see the "COVERAGE

AND REPORTING INSTRUCTIONS" ON THE THIRD PANEL OF THIS FORM. If book figures are

not available, carefully prepared estimates are acceptable.

U.S. DEPARTMENT OF COMMERCE BUREAU OF THE CENSUS

(Please correct any error in name, address, and ZIP Code)

BEFORE

COMPLETING

YOUR REPORT

BUREAU OF THE CENSUS

1201 East 10th Street

Jeffersonville, IN 47132-0001

RETURN TO

Any questions call 1–800–772–7851

©

081

007

009

1997

Number

CONTINUE WITH ITEM 4 ON PAGE 2

CENSUS

USE

In correspondence pertaining to this report, please refer 011 012

to the IDENTIFICATION NUMBER shown below.

NOTICE – Response to this inquiry is required by law (title 13, U.S. Code). By the same law, your

report to the Census Bureau is confidential. It may be seen only by sworn Census employees and may

be used for statistical purposes. The law also provides that copies retained in your files are immune

from legal process.

D-14
h. Telegraph and other message

communication revenue 808

809

607

608

Key

code

1997

Bil. Mil. Thou. Dol.

Other communication services

revenue i.

j.

TOTAL OPERATING 

REVENUE

k.

Subsidies, gifts, loans,

contributions, and grants

l.

m. Other nonoperating income

OTHER COMMUNICATION

SERVICES REVENUE

OTHER OPERATING REVENUE

Line j — Exclude nonoperating revenue such as

income from investments, the sale of securities, or

real estate, etc. 

TAXABLE ORGANIZATIONS — SKIP now to item 5.

Line m — NOTE — If the amount reported on

this line is greater than 50 percent of the total

revenue reported in line n, indicate the source

of this revenue in the "Remarks" section on

page 4 of this form.

Line n — Tax-exempt organizations only. Report

the sum of items 4k through 4m.

n. TOTAL REVENUE

709

710

NONOPERATING INCOME

Page 2 FORM B-520 (2-03-98)

NONOPERATING INCOME (Tax-exempt

organizations only; all others SKIP to item 5) Key

code

1997

Bil. Mil. Thou. Dol.

e. Installation fees 805

f. Other cable and pay TV revenue

TOTAL CABLE AND OTHER

PAY TELEVISION REVENUE

g.

806

807

Line e — System operators report here. — Include

all reconnect fees.

Line f — System operators and program

providers report here. — Include revenue from

shop-at-home programs.

OTHER OPERATING 

REVENUE

© ©

d. Pay-per-view and other premium

service revenue 804

711

Line d — System operators report here.

a.

b. 

c.

Advertising revenue (net) 

Program revenue 

801

802

Item 4 REVENUE

Enter "0" in items where applicable. Do not

combine data for two or more detail lines.

Estimates are acceptable if book

figures are not available.

Line a — System operators and program

providers report here. — Deduct commissions

paid to agency representatives.

Line b — Program providers report revenue from

system operators and other customers for

programming services. System operators report

revenue from customers for programming services.

CABLE AND OTHER PAY TELEVISION

REVENUE

CABLE AND OTHER PAY

TELEVISION REVENUE

See the attached "Coverage and Reporting

Instructions" sheet before completing this

section.

Line c — System operators report here — Include

subscription fees received for basic and non-premium

service tiers from residential and commercial

customers.

Basic service revenue 803

CONTINUE WITH ITEM 6 ON PAGE 3

NOTE — If the amount reported on this line is

greater than 50 percent of the total operating

revenue reported in line k, indicate the source

of this revenue in the "Remarks" section on

page 4 of this form.

Item 5 SALES TAXES AND OTHER TAXES

Mil. Thou. Dol.

1 YES – Report the amount of such taxes

2 NO – Continue with item 6

1997

Were sales taxes or other taxes collected directly 099

from customers and forwarded directly to taxing

authorities? Exclude sales taxes on your purchases

that were remitted directly to taxing authorities. 624

Bil.

Key

code

D-15
Line h — Exclude worker’s compensation

premiums. Report these costs in line b(1).

Line j — Exclude the cost of utility services if

included as part of a lease or rental agreement. h. Cost of insurance

i. Cost of telephone and other purchased

communication services

Line l — Exclude income, payroll, sales, and other

taxes collected from customers and paid directly to

local, State, or Federal government agencies.

j. Cost of purchased utilities

Taxes and licenses

FORM B-520 (2-03-98) Page 3

640

641

642

l. 644

k. 643 Cost of purchased advertising

m. Other operating expenses 646

n. 647 TOTAL OPERATING EXPENSES

g. Cost of purchased repairs

(1) 637 Buildings, offices, and structures

(2) 638 Transmission systems

Vehicles, and other machinery and

equipment

(3)

639

Line g — Exclude repair costs included as part of a

lease or rental agreement, improvements for which

depreciation accounts are maintained, and repairs

performed by employees of your company and its

subsidiaries.

Lines m and n — See the attached "Coverage and

Reporting Instructions" sheet to calculate Other

Operating Expenses and Total Operating Expenses

as they pertain to this survey.

f. Lease and rental costs

(1) 634 Buildings, offices, and structures

(2) Transmission systems 635

Vehicles, and other machinery and

equipment

(3)

636

Line f — Exclude payments by your firm to the

parent company or organization, or any of its

subsidiaries, for use of assets owned by them; and

installment payments for assets obtained through

capital lease agreements.

NOTE — If the amount reported on line m is

greater than 50 percent of the total operating

expenses reported in line n, indicate the

source of these expenses in the "Remarks"

section on page 4 of this form.

Line e — Exclude depreciation on intangible assets

and assets leased to others by you under a capital

lease agreement. Do not adjust for the value of

depreciable assets sold or traded for replacement

purposes.

d. Retransmission consent fee 

(1) 631 Buildings, offices, and structures

(2) 632 Transmission systems

Vehicles, machinery and equipment,

and other tangible assets

(3)

633

Line d – System operators report the cost for the

retransmission of broadcast signals. Include the

fair-market value (not the actual cost) of reciprocal

non-cash exchanges, such as bartered advertising

time, promotions, and carriage of new local and

national cable channels, etc. Estimate services

exchanged for retransmission consent as the

amount your company would ordinarily charge for

such services.

Depreciation and amortization charges

815

e.

PAYROLL AND OTHER 

OPERATING EXPENSES

Line a — Report, on a cash basis, the gross

earnings paid to employees prior to deductions. If

an unincorporated concern, exclude payments to

proprietors or partners.

Line b — Report, on a cash basis, in line b(1)

employer’s cost for legally required programs.

Report, on a cash basis, in line b(2) employer’s cost

for programs not required by law. Report in line b(1)

and line b(2) the amounts actually contributed.

Estimates are acceptable if book

figures are not available.

a. Annual payroll

b. Employer contributions to employee

benefit plans

Line c — Program and production costs

(1)

(2)

Plans required under Federal and State

legislation (including Social Security

and Medicare (FICA), worker’s

compensation insurance, etc.)

Other fringe benefit plans (including

medical insurance, life insurance, etc.)

c. Program and production costs

(including program service cost, such

as basic cable service and

pay-per-view or premium TV services;

in house programs; and other program

and production costs

627

628

629

1997

Bil. Mil. Thou. Dol.

Key

code

Include talent and music license fees, the value of

bartered programming, and all other costs of

programming and production. Exclude payroll and

employer contributions to employee benefit

programs.

See the attached "Coverage and Reporting

Instructions" sheet before completing this

section.

Enter "0" in items where applicable. Do not

combine data for two or more detail lines.

System operators include cost of all local

origination programming. Include public access

costs and fees.

Item 6

Program providers include costs of all original

programming produced or developed in-house.

106

D-16
Page 4 FORM B-520 (2-03-98)

REMARKS — Please use this space for any explanations that may be essential in understanding your reported data.

Item 10 CERTIFICATION — This report is substantially accurate and was prepared in accordance with instructions.

CENSUS USE

Name of person to completing this report Telephone

Area code Number Extension

Title Date

Signature of authorized person

Address (Number and street, city, State, ZIP Code)

FAX

Area code Number

091

093 094

096

095

098

092

Item 9 OWNERSHIP OR CONTROL

a. Does another company own more than 

50 percent of the voting stock or have

the power to control the management

and policies of this company?

1

2

YES

NO — Continue with item 9b

Name of owning or controlling company

Number and street

City, State, and ZIP Code

EIN

Name of company acquired or merged with

Number and street

City, State, and ZIP Code

Date of merger

or acquisition 

Month Year

EIN

b. Did this company acquire or merge with 

another company in 1997?

1

2

YES

NO — Continue with item 10

–

–

084

087

085

086

088

089 090

Item 7 INTEREST EXPENSE

Report all interest expense, including capitalized interest.

Estimates are acceptable if book figures are not available.

Item 8 REPORT PERIOD

Mark (X) the one box which best describes 

the period covered by your report. 1 Calendar year — Go to item 9

Fiscal year

Less than 12 months







2

3

1997

From

Month Day Year

To

648

649

1997

Bil. Mil. Thou. Dol.

Key

code

645

Key

code

If the data reported in items 4 through 7 are for

a period other than the "calendar year," please

enter the beginning and ending dates.

D-17
Please read all instructions and complete all items in this report.

This will save on costly and time-consuming follow-up.

• Report only for those locations primarily engaged in the activities

 defined in the coverage section above.

• For locations sold or acquired during 1997, report only for the 

 period that the locations were operated by this company.

• Report all charges or billings for services rendered and any sales 

 of merchandise during 1997, even though payments may be 

 received at a later date. Do not deduct allowances for 

 uncollectable accounts. Exclude revenue from a domestic parent 

 organization (intracompany transfers), or from franchise locations 

 owned by others and any franchise or license fees. Exclude sales 

 or other taxes collected from customers and paid directly to a 

 taxing authority.

• Report costs incurred during 1997 even though payments 

 may be made at a later date. Exclude sales or other taxes 

 collected from customers and paid directly to a taxing 

 authority.

• Definitions for annual payroll are the same as those used on the

 Employer’s Quarterly Federal Tax Return, Treasury Form 941.

• Report dollar values in whole dollars (omit cents).

• If book figures are not available, carefully prepared estimates are

 acceptable.

• Prorate revenue derived from services provided on a contractual

 basis according to the work accomplished. (Only include the 

 amounts applicable to the report period.)

• Report data for calendar year 1997. If calendar year records are 

 not available, data for the latest fiscal year are acceptable. 

 Indicate the period covered in item 8. Please note, however, that 

 estimates for calendar year 1997 are preferable to book figures 

 covering a different time period.

Item 4 — REVENUE

Enter "0" in items where applicable. Do not combine data for

two or more detail lines.

Line a — System operators and program providers — Report

the revenue from the sale of time to advertisers or sponsors for

national, spot and local advertising; classified channels; and

program guides and other printed material. Deduct commissions

paid to agency representatives.

Line b — Program providers report revenue from system

operators and other customers for programming services. System

operators report revenue from customers for programming

services.

Line c — System operators — Report subscription fees received

for basic and non-premium service tiers from residential and

commercial customers.

Line e — System operators — Report installation fees for

providing basic, pay-per-view, and other premium services. Include

all reconnect fees here.

Line f — System operators and program providers — Report

all other cable and pay television revenue, such as service charges,

rental or lease of channel capacity, etc. System operators — Include

revenue from shop-at-home programs.

Line g — Report the sum of items 4a through 4f.

Line d — System operators — Report revenue from pay-per-view

and other premium services, such as movie channels.

Item 6 — PAYROLL AND OTHER OPERATING EXPENSES

Line a — Report, on a cash basis, the gross earnings paid to

employees prior to such deductions as employees’ Social Security

contributions, withholding taxes, group insurance premiums, union

dues, savings bonds, etc. Include all wages, salaries, commissions

to own employees, dismissal pay, paid bonuses, vacation and sick

leave pay, and employee contributions to qualified pension plans

whether or not subject to income or FICA tax. If a corporation,

include salaries of officers; if an unincorporated concern, exclude

payments to proprietors or partners.

FORM B-520 (2-03-98)

WHEN COMPLETING THIS REPORT, PLEASE READ THESE INSTRUCTIONS CAREFULLY — Detach this panel before returning your report.

• Trade-outs and barter — Estimate spots exchanged for program

 material at a fair value consistent with purchases of other

 program material of similar quality and quantity. Estimate spots 

 exchanged for merchandise or services as the amount your

 company would pay for the merchandise or service received.

OTHER COMMUNICATION SERVICES REVENUE

OTHER OPERATING REVENUE

NONOPERATING INCOME (Tax-exempt organizations only)

Line l — Report all government subsidies used to offset operating

or capital deficits, private gifts, loans, contributions, or grants.

Line m — Report other nonoperating receipts, such as income from

investments; the sale of securities, real estate, etc. NOTE — If the

amount reported on this line is greater than 50 percent of the

total revenue reported in item 4n, indicate the source of this

revenue in the "Remarks" section on page 4 of this form.

Line n — Tax-exempt organizations — Report the sum of items

4k through 4m.

Line j — Report other operating revenue, including sales of

merchandise, rental revenue, etc. Exclude nonoperating revenue

such as income from investments, the sale of securities, or real

estate, etc. NOTE — If the amount reported on this line is

greater than 50 percent of the total operating revenue

reported in item 4k, indicate the source of this revenue in

the "Remarks" section on page 4 of this form.

Line h — Report revenue from telegraph and other message

communications, such as electronic mail, facsimile transmission,

telegram and telex, and paging services.

Line i — Report revenue from all other point-to-point

communication services, including satellite communications and

radar station operations.

Line k — Report the sum of items 4g through 4j.

CABLE AND OTHER PAY TELEVISION REVENUE

Exclude subsidiaries or operating units which are requested to

submit separate 1997 Annual Survey of Communication Services

reports to the Bureau of the Census. 

Include data for auxiliary facilities of your company primarily

engaged in furnishing supporting services to your communication

business activities, such as central administrative offices, garages,

warehouses, and locations providing maintenance and repairs of

your machinery and equipment. Also, include revenue and expense

data for offices of your company engaged in soliciting advertising.

If your activities do not appear to be covered by this survey,

please describe your kind of business in the "Remarks"

section on page 4 of this form.

• Cable and Other Pay Television Services — Locations

 primarily engaged in the dissemination of visual and textual

 television programs, on a subscription or fee basis. Also

 included are locations which are primarily engaged in

 cablecasting and which also produce taped program materials;

 and included are locations providing the following services: 

 closed circuit television, direct broadcast satellite (DBS),

 multipoint distribution systems (MDS), and satellite master

 antenna systems (SMATV).

• Telegraph and Other Message Communications — Locations 

 primarily engaged in furnishing telegraph and other nonvocal 

 message communications services, such as cablegram, electronic

 mail, and facsimile transmission, photography transmission, 

 teletypewriter and telex services.

• Other Communications Services — Locations primarily 

 engaged in providing other communication services such as

 radar station operation, radio broadcasting operated by cab 

REPORTING INSTRUCTIONS

SPECIFIC SURVEY COVERAGE

1997 ANNUAL SURVEY OF COMMUNICATION SERVICES

CABLE TV AND OTHER SERVICES

COVERAGE AND REPORTING INSTRUCTIONS

Enter "0" in items where applicable. Do not combine data for

two or more detail lines.

Please retain a copy of the completed form for your records.

 companies, satellite earth stations, satellite or missile tracking 

 stations, operated on a contract basis, and missile tracking by 

 telemetry and photography on a contract basis.

D-18
REPORTING INSTRUCTIONS — Continued

FORM B-520 (2-03-98)

Line f — Report in line f(1) the cost of renting or leasing buildings,

offices, and structures. Report in line f(2) the cost of renting or

leasing transmission systems (cables, wires, amps, satellite

transmissions, converters, tap offs, power supplies, and other

transmitting equipment). Report in line f(3) the cost of renting or

leasing vehicles, and other machinery and equipment. Exclude

payments by your firm to the parent company or organization, or

any of its subsidiaries for use of assets owned by them; and

installment payments for assets obtained by your company through

capital lease agreements.

Line g — Report in line g(1) the cost of purchased repairs

(including charges for parts and labor) to buildings, offices, and

structures. Report in line g(2) the cost of purchased repairs to

transmission systems (cables, wires, amps, satellite transmissions,

converters, tap offs, and other transmitting equipment). Report in

line g(3) the cost of purchased repairs to vehicles, and other

machinery and equipment. Exclude repair costs included as part of

a lease or rental agreement, improvements for which depreciation

accounts are maintained, and repairs performed by employees of

your company and its subsidiaries.

Line i — Report the cost of nonrevenue-generating purchased

communication services, including telephone, telex, telegraph,

teletype, etc.

Line j — Report the cost of purchased utilities, including the cost of

purchased electricity and purchased fuels consumed for heat,

power or generating electricity. Include water, sewer, and refuse

removal. Exclude the cost of these utility services if included as

part of a lease or rental agreement.

Line k — Report the cost of purchased advertising, including

payments to other firms for printing, media, and other services and

materials used for advertising.

Line l — Report the cost of taxes and licenses including business

license fees, real and personal property taxes (such as taxes on real

estate, motor vehicles, machinery, equipment, and inventories), and

special assessments. Also include FCC license fees. Exclude

income, sales, payroll, excise taxes, and other taxes collected from

customers and paid to local, State, or Federal government

agencies.

Total operating expenses (from income statement)

+ Taxes —

+ [Annual payroll (cash basis) + Employer contributions

 (cash basis)]

– [Annual payroll (accrual basis) + Employer contributions

 (accrual basis)]

= TOTAL OPERATING EXPENSES — Place in item 6n

• Other operating expenses — If other operating expenses are

 unavailable, calculate them as follows —

TOTAL OPERATING EXPENSES FOR SURVEY 

(as calculated in item 6n)

– (Items 6a through 6l on survey report form)

= OTHER OPERATING EXPENSES — Place in item 6m.

NOTE — If the amount reported on line m is greater than 50

percent of the total operating expenses reported in line n,

indicate the source of these expenses in the "Remarks"

section on page 4 of this form.

Line h — Report the cost of all commercial insurance, including

that used to protect the company against losses or damages to

buildings, structures, and machinery and equipment caused by fire,

flood, wind, boiler explosion, or any other cause. Include premiums

on fidelity bonds of employees, and insurance to protect against

liability for deaths or injuries of persons and damages to property

of others. Exclude worker’s compensation premiums. Report

these costs in line b(1).

Lines m and n

• Total operating expenses — Will not match to the company’s

income statement due to the cash and accrual methods

requested for this survey. As a guide, compute total operating

expenses as follows —

If not included in operating expenses,

see item 6l on page 3.

Item 6 — PAYROLL AND OTHER OPERATING EXPENSES–

Continued

Line b — Report, on a cash basis, in line b(1) employer’s cost for

legally required programs, such as Social Security and Medicare

(FICA), worker’s compensation insurance, unemployment tax, and

State disability insurance programs. Report, on a cash basis, in line

b(2) employer’s cost for programs not required by law, such as

pension plans, stock purchase plans, union-negotiated benefits, life

insurance benefits, and insurance premiums for hospital and

medical plans. Report in line b(1) and line b(2) the amounts actually

contributed.

Line c — Program and production costs

System operators —

Report the programming costs for providing basic cable

services. Including programming costs for providing

pay-per-view or premium TV services. Include the cost of local

origination program, include public access costs and fees.

System operators and program providers —

Include talent fees, music license fees, the value of bartered

programming, and all other costs of programming and

production. Exclude payroll and employer contributions to

employee benefit programs

•

•

•

Line e — Report in line e(1) the amount of depreciation and

amortization charges against buildings, offices, and structures owned

by your firm. Report in line e(2) the amount of depreciation and

amortization charges against transmission systems (cables, wires,

amps, satellite transmissions, converters, tap offs, power supplies,

and other transmitting equipment) owned by your firm. Report in line

e(3) the amount of depreciation and amortization charges against

vehicles, machinery and equipment, and other tangible assets owned

by your firm. Include depreciation on assets rented or leased to

others by you under an operating lease agreement. Include

depreciation on assets owned and used by your firm within

leaseholds and assets obtained through capital lease agreements.

Exclude depreciation on intangible assets and assets leased to others

by you under a capital lease agreement. Do not adjust for the value of

depreciable assets sold or traded for replacement purposes.

Line d — System operators – Report the cost for the

retransmission of broadcast signals. Include the fair-market value

(not the actual cost) of reciprocal non-cash exchanges, such as

bartered advertising time, promotions, and carriage of new local

and national cable channels, etc. Estimate services exchanged for

retransmission consent as the amount your company would

ordinarily charge for such services.

Other operating expenses include billing services, travel expenses,

accounting and legal fees, dues and subscriptions, office supplies,

data processing expenses, etc. Include the cost of computer

software purchased under licensing agreements. Exclude income

taxes, and local sales and excise taxes.

Program operators —

Report the cost of all original programs produced or developed

in-house.

Public reporting burden for this collection of information is estimated to average 3.0 hours per response, including the

time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and

completing and reviewing the collection of information. Send comments regarding this burden estimate or any other

aspect of this collection of information, including suggestions for reducing this burden, to the Associate Director for

Administration/Controller, Attn: Paperwork Reduction Project 0607-0798, Room 3104, FB 3, Bureau of the Census,

Washington, DC 20233-0001. PLEASE INCLUDE FORM NAME AND NUMBER IN ALL CORRESPONDENCE. Respondents

are not required to respond to any information collection unless it displays a valid approval number from the Office of

Management and Budget. This 8-digit number appears in the top right corner on the front of this form.

D-19