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Annual Adjustment of Revenue Thresholds

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Released: May 7, 2013

PUBLIC NOTICE

Federal Communications Commission
445 12th St., SW

News Media Information 202 / 418-0500

Internet: http://www.fcc.gov

Washington, DC 20554

TTY: 1-888-835-5322

DA 13-1008

Released: May 7, 2013

WIRELINE COMPETITION BUREAU ANNOUNCES ANNUAL ADJUSTMENT OF

REVENUE THRESHOLDS

This notice announces the inflation-adjusted 2012 revenue thresholds used for classifying carrier
categories for various accounting and reporting purposes: (1) distinguishing Class A carriers from Class
B carriers;1 and (2) distinguishing larger Class A carriers from mid-sized carriers.2 The revenue threshold
between Class A carriers and Class B carriers is increased to $150.5 million.3 The revenue threshold
between larger Class A carriers and mid-sized carriers is increased to $8.92 billion.4 The revenue
thresholds for 2012 were determined as follows:
Class A to Class B Larger Class A to Mid-size
Threshold
Threshold
(1)
GDP-CPI Base (2005=100)
77.1465
91.1446
(2)
2012 GDP-CPI7
116.085
116.085
(3)
Inflation Factor (line 2 ÷ 1)
1.505
1.274
(4)
Original Revenue Threshold
$100 million
$7 billion


1 See 47 C.F.R. §§ 32.11, 43.21, 43.43, 64.903.
2 See 47 C.F.R. § 32.9000.
3 Section 402(c) of the Telecommunications Act of 1996 Act mandates that we adjust this revenue threshold
annually to reflect the effects of inflation since October 19, 1992, at which time the threshold was $100 million.
Pub. L. No. 104-104, § 402(c), 110 Stat. 56, 130 (1996). In accordance with the statute, we adjust the threshold
based on the ratio of the gross domestic product chain-type price index (GDP-CPI) in the revenue year and the GDP-
CPI for October 19, 1992.
4 In the Phase 2 Report and Order released November 5, 2001, the Commission concluded that it would begin
annually indexing for inflation the $7 billion threshold used to separate the larger Class A carriers and the mid-sized
carriers using the GDP-CPI index factor. Because this Order was released in 2001, in the past we have used the
December 31, 2001, GDP-CPI as the base. See 2000 Biennial Regulatory Review – Comprehensive Review of the
Accounting Requirements and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers: Phase 2;
Amendments to the Uniform System of Accounts for Interconnection; Jurisdictional Separations Reform and
Referral to the Federal-State Joint Board; Local Competition and Broadband Reporting
, CC Docket No. 00-199,
Report and Order in CC Docket Nos. 00-199, 97-212, and 80-286; Further Notice of Proposed Rulemaking in CC
Docket Nos. 00-199, 99-301, and 80-286, 16 FCC Rcd 19913 (2001) (Phase 2 Report and Order). However, in
2010, the Bureau of Economic Analysis changed the base year to 2005.
5 GDP-CPI adjusted to October 19, 1992 (2005 = 100).
6 GDP-CPI for December 31, 2001 (2005 = 100).
7 National Income and Product Accounts Table, Bureau of Economic Analysis, April 2013, Table 1.1.4.

(5)
2012 Revenue Threshold8 (line 3 * 4)
$150.5 million
$8.92 billion
-FCC-


8 Rounded to the nearest million.
2

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