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FCC Releases 2012 Universal Service Monitoring Report

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Released: March 22, 2013






UNIVERSAL SERVICE


MONITORING REPORT



CC DOCKET NO. 98-202



2012

(Data Received Through October 2012)







Prepared by Federal and State Staff for the


Federal-State Joint Board on Universal Service in


CC Docket No. 96-45








This report is available for reference in the FCC's Reference Information Center, Courtyard Level, 445 12th Street,
SW, Washington, DC. Copies may be purchased by contacting Best Copy and Printing, Inc., 445 12th Street, SW,
Room CY-B402, Washington, DC 20554, telephone (800) 378-3160, or via their website at www.bcpiweb.com.
The report can also be downloaded from the Wireline Competition Bureau Statistical Reports Internet site at
http://www.fcc.gov/wcb/iatd/stats.html">www.fcc.gov/wcb/iatd/stats.html.








Table of Contents





Introduction and Summary ......................................................................................................... 5 to 7

Service List .......................................................................................................................... 8 to 12

2012 Monitoring Report Supplementary Material .............................................................. 13
1. Industry Revenues and Contributions .................................................................................. 1-1 to 1-20
2. Program Review .................................................................................................................... 2-1 to 2-36

Low-Income ......................................................................................................................... 2-1 to 2-11

High-Cost.............................................................................................................................. 2-12 to 2-25

Schools and Libraries ........................................................................................................... 2-26 to 2-30

Rural Health Care ................................................................................................................. 2-31 to 2-36
3. Subscribership and Penetration ............................................................................................ 3-1 to 3-12
4. Price Indices ........................................................................................................................... 4-1 to 4-4
5. Network Usage ...................................................................................................................... 5-1 to 5-4

1


Report Tables



Table 1.1 Overview of Telecommunications Industry Revenues .......................................... 1-6
Table 1.2 Industry Revenues by Service Type: 2000-2010 ................................................... 1-8
Table 1.3 2010 Industry Revenues by Service Type: Top 5 Affiliated Entities vs.

Other Companies .................................................................................................. 1-10
Table 1.4 Estimated Retail (End-User) Telecommunications and Interconnected VoIP

Service Revenues by Region: 2010 ..................................................................... 1-11
Table 1.5 Contribution Base Revenues by Program: 2010 ................................................... 1-12
Table 1.6 Billed Interstate and International Retail Revenues by Top 5 Affiliated Entities

vs. Other Companies ............................................................................................ 1-13
Table 1.7 Carrier Telecommunications Revenue Reported on FCC Form 499-Q:

2010-2012 ............................................................................................................. 1-14
Table 1.8 End-User Telecommunications Revenues by State: 2010.................................... 1-15
Table 1.9 Universal Service Program Requirements and Contribution Factors

for 2012................................................................................................................. 1-16
Table 1.10 Total Universal Service Contributions Divided by Number of Households

Monthly Inflation Adjusted (2012 Dollars) ......................................................... 1-17
Table 1.11 Universal Service Fund Contribution Factor ....................................................... 1-18
Table 1.12 Universal Service Disbursements 2001 - 2011 .................................................... 1-19
Table 1.13 Universal Service Support Mechanisms by State: 2011 ..................................... 1-20

Table 2.1 Lifeline Subscribers and Link Up Beneficiaries .................................................... 2-4
Table 2.2 Low-Income Claims ............................................................................................... 2-5
Table 2.3 Average Lifeline Monthly Claims for ILECs by State (December 2011) ............ 2-6
Table 2.4 Federal Lifeline Average Claims by State: 2011 ................................................... 2-7
Table 2.5 Link Up Average Claims by State: 2011 ............................................................... 2-8
Table 2.6 Low-Income Support Claims by State: 2011 ......................................................... 2-9
Table 2.7 Low-Income Claims Received by ILECs and CETCs.......................................... 2-10
Table 2.8 Low-Income Claims by Affiliated Entities: 2011 ................................................. 2-11
Table 2.9 Low-Income Claims by Program and by Affiliated Entities:

2011 ...................................................................................................................... 2-11
Table 2.10 High-Cost Support Fund Disbursement History ................................................. 2-16
Table 2.11 High-Cost Support Fund Disbursement History - ILECs and CETCs ............... 2-17
Table 2.12 High-Cost Support Fund Disbursements - by Mechanism and State: 2011 ...... 2-18
Table 2.13 High-Cost Support Fund Disbursements by Year-End Holding Company

Structure: 2009 - 2011 .......................................................................................... 2-20
Table 2.14 High-Cost Support Fund Disbursements by Holding Company: 2011 ............. 2-21
Table 2.15 Study Areas that Received $250 Per Month or More in Per-Line High-Cost

Support: 2011 ....................................................................................................... 2-22
Table 2.16 High-Cost Support Fund Claim History ............................................................. 2-23
Table 2.17 High-Cost Support Fund Claim History - ILECs and CETCs ........................... 2-24
Table 2.18 High-Cost Support Fund Claims - by Mechanism and State: 2011 ................... 2-25
Table 2.19 Schools and Libraries Funding Commitments and Disbursements by

Applicant Type and Service Type ....................................................................... 2-27
Table 2.20 Schools and Libraries Funding Commitments and Disbursements by State

and by Type of Applicant ..................................................................................... 2-28
Table 2.21 Rural Health Care Funding Disbursements by Funding Year ............................ 2-33
Table 2.22 Rural Health Care Funding Commitments and Disbursements by State ........... 2-34
2



Table 3.1 Household Telephone Subscribership in the United States .................................. 3-4
Table 3.2 Household Telephone Penetration by Income, 1997-2012 ................................... 3-7
Table 3.3 Nominal Dollar Equivalents by Year ..................................................................... 3-7
Table 3.4 Historical Telephone Penetration Estimates .......................................................... 3-8
Table 3.5 Telephone Penetration by Selected Demographic Characteristics

(Percentage of Households with Telephone Service) .......................................... 3-9
Table 3.6 Telephone Penetration by State, 2006-2011

(Percentage of Occupied Housing Units with Telephone Service) .................... 3-10
Table 3.7 Telephone Penetration by State, Selected Years

(Percentage of Households with a Telephone in Unit) ....................................... 3-11
Table 3.8 Household Penetration by State and Income, 2012 .............................................. 3-12

Table 4.1 Long-Term Changes for Various Price Indices ..................................................... 4-2
Table 4.2 Annual Changes in CPI Telephone Service and All Items Indices ....................... 4-3
Table 4.3 Monthly Consumer Price Indices ........................................................................... 4-4

Table 5.1 Interstate Switched Access Minutes of Use - Incumbent Local Exchange Carriers

by Tier .................................................................................................................... 5-3
Table 5.2 ILEC Interstate Switched Access Minutes of Use by State .................................. 5-4
3


Report Charts


Chart 1.1 Interstate and International Retail Revenues by Top 5 Affiliated Entities

vs. Other Companies ............................................................................................ 1-13
Chart 1.2 Distribution of Universal Service Payments: 2011 .............................................. 1-19

Chart 2.1 Lifeline Subscribers and Link Up Beneficiaries .................................................... 2-5
Chart 2.2 Percent of Low-Income Claims Received by CETCs ........................................... 2-10
Chart 2.3 Total High-Cost Support Fund Disbursements and Reserve ................................ 2-16
Chart 2.4 Total High-Cost Support Fund Disbursements (ILECs and CETCs) and

CETC Reserve ...................................................................................................... 2-17
Chart 2.5 Total High-Cost Support Fund Disbursements - by State: 2011 .......................... 2-19
Chart 2.6 Total High-Cost Support Fund Claims and Reserve............................................. 2-23
Chart 2.7 Total High-Cost Support Fund Claims (ILECs and CETCs) and

CETC Reserve ...................................................................................................... 2-24

Chart 3.1 Household Telephone Penetration by Income, 1997-2012 .................................... 3-5
Chart 3.2 Telephone Penetration for Single-Family Households at or below Multiples

of the Federal Poverty Guidelines (FPG), 1996-2012 .......................................... 3-6

Chart 4.1 CPI All Goods and Services and CPI Telephone Services, 1961-2011 ................ 4-2
Chart 4.2 Annual Changes in CPI All Goods and Services and CPI Telephone Services .... 4-3

Chart 5.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers ..... 5-2
4


Universal Service Monitoring Report


CC Docket No. 98-202


2012


Introduction and Summary



This is the fifteenth report in a series of reports prepared by federal and state staff members for the
Federal-State Joint Board on Universal Service in CC Docket No. 96-45 (Universal Service Joint Board).1
This report is based on information available to us as of October 2012. These reports contain information
designed to monitor the impact of various universal service support mechanisms, and the methods used to
finance them. These reports are part of a monitoring program created by the Federal Communications
Commission in 1997 to replace a similar program in CC Docket No. 87-339 that resulted in a series of
nineteen Monitoring Reports. 2 To enhance our monitoring ability, we have created an open docket,3 which
allows data, materials, comments, and studies to be submitted by any interested party at any time.


The monitoring program has proven to be valuable, not only as a report on the effects of the
Commission’s regulatory policies, but also as a complete census of all incumbent local exchange carriers
(ILECs). For completeness, the Monitoring Report incorporates data from several sources, including the
National Exchange Carrier Association (NECA) and Universal Service Administrative Company (USAC).
USAC collects information from all eligible local exchange carriers (including competitive eligible
telecommunications carriers, or CETCs) to administer the universal service support mechanisms. NECA, at
the direction of the Commission, collects information in order to administer the access charge pools and also
provides information to USAC that is utilized in administering the Universal Service Fund. The Monitoring
Report
, therefore, is the most comprehensive presentation of data on incumbent local exchange carriers,
including data on such matters as the number of telephone lines, calling volumes, and certain types of costs.


This report presents data for the five subject categories selected for monitoring. The first section
provides information on the contributions to the universal service support mechanisms and industry
revenues, on which those contributions are based. The next section provides information on the various
support mechanisms: low-income support; high-cost support; schools and libraries support; and rural health
care support. The remaining three sections provide information on matters that might be affected by the
support mechanisms: subscribership and penetration; price indices and access charge rates; and network
usage and growth. The Monitoring Report is published once a year.


The following is the organization of this report: Section 1 provides an update on industry revenues
and the universal service program requirements and contribution factors. Section 2 includes the latest data
on the low-income, high-cost, schools and libraries, and rural health care support mechanisms. Section 3
includes the most recent Census data on subscribership from the Current Population Survey and the
American Community Survey. It also includes data on telephone penetration by income by state and a
discussion of the impact of Lifeline programs on penetration. Section 4 includes updated Consumer Price

1
The last report was released in December 2011. Universal Service Monitoring Report, CC Docket No. 98-
202, 2011 (Data Received Through October 2011), prepared by the Federal and State Staff for the Federal-
State Joint Board on Universal Service in CC Docket No. 96-45.

2
Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd
8776, 9218, para. 869 (1997) (Universal Service First Report and Order). See 47 C.F.R. § 54.702(i).

3
CC Docket No. 98-202.
5


Index data and updated interstate access rate information. Section 5 includes the latest NECA data on
interstate access minutes.


This entire report is available electronically in page image (.pdf) format through the Wireline
Competition Bureau Statistical Reports Internet site, located athttp://www.fcc.gov/wcb/iatd/monitor.html"> www.fcc.gov/wcb/iatd/monitor.html. The
tables of the report are available separately as spreadsheet files in a single compressed (.zip) format file at
this site also. In addition, information received well in advance of the next Monitoring Report will be made
available on an interim basis in separate staff reports or in raw data files (such as most NECA filings used in
the Monitoring Report) on the Wireline Competition Bureau Statistical Reports Internet site.


Supplementary material is available in a single compressed (.zip) format file at
http://www.fcc.gov/wcb/iatd/monitor.html">www.fcc.gov/wcb/iatd/monitor.html. The supplementary material includes tables too extensive to be
practical for a printed report as well as descriptions of the universal service programs. A table listing the
files available when this file is unzipped is provided at the end of this introduction. Additional data on
Universal Service Fund contributions and support can be found in the Federal Communications Commission
Response to United States House of Representatives Committee on Energy and Commerce Universal
Service Fund Data Request of July 9, 2012 which is available athttp://www.fcc.gov/wcb/iatd/other.html"> www.fcc.gov/wcb/iatd/other.html.


Several changes have been made to this year’s report relative to the 2011 report. The following
tables from the 2011 report do not appear in the 2012 report:

• Tables 1.3 and 1.8 on annual revenues by type of service provider were removed from the report
because the current self-classification by filers according to provider type may yield inconsistent
and therefore unreliable data.
• Tables 1.5 through 1.7 on annual revenues were removed from the report and made available on the
website. These tables were considered too lengthy and of excessive detail for a printed report;
however, since the data reported are informative, they were placed on the website to be available to
those interested.
• Tables 3.8 (Comparison of Penetration Rates by Level of Lifeline Assistance) and 3.9 (Comparison
of Penetration Rates and Level of Lifeline Assistance for States) were not included because the
Commission implemented a flat rate Lifeline amount in 2012.
• Tables 4.4 through 4.7 on interstate access charges were not included because data for the tables
were unavailable as a result of changes to access charges in the USF/ICC Transformation Order.


For ease of public reference, parties submitting materials for this docket should provide a duplicate
copy to the FCC's Reference Information Center,4 where copies of all materials filed in the docket are
available for public reference.




4
Courtyard Level, 445 12th Street, SW, Washington, DC.
6


This report has been prepared by the federal staff listed below and reviewed by the state staff listed below.
These staff members can be contacted for further information:

General Information:



Jay Bennett (Federal) (202) 418-2761






James Eisner (Federal) (202) 418-7302

Industry Revenues and Contributions:

Susan Lee (Federal) (202) 418-1590






James Eisner (Federal) (202) 418-7302






Craig Stroup (Federal) (202) 418-0989

Low-Income Support:



Suzanne Mendez (Federal) (202) 418-0941






James Eisner (Federal) (202) 418-7302






Natelle Dietrich (Missouri) (573) 751-7427






Kimberly Scardino (Federal) (202) 418-1442

High-Cost Support:



Jay Bennett (Federal) (202) 418-2761






James Eisner (Federal) (202) 418-7302






Joel Shifman (Maine) (207) 287-1381






Robert Haga (California) (415) 703-2538






Kerri DeYoung Phillips (Massachusetts) (617) 368-1141

Schools and Libraries Support:

Craig Stroup (Federal) (202) 418-0989






John Vu (Federal) (202) 418-2333

Rural Health Care Support:


Craig Stroup (Federal) (202) 418-0989






John Vu (Federal) (202) 418-2333






Vicki Helfrich (Mississippi) (601) 359-5347






George Young (Vermont) (802) 828-2358

Subscribership and Penetration:

Jay Schwarz (Federal) (202) 418-0948






James Eisner (Federal) (202) 418-7302

Rates and Price Indices:


Jay Schwarz (Federal) (202) 418-0948






James Eisner (Federal) (202) 418-7302






Joel Shifman (Maine) (207) 287-1381






Christine Aarnes (Kansas) (785) 271-3132

Network Usage:



James Eisner (Federal) (202) 418-7302






Suzanne Mendez (Federal) (202) 418-0941






M. Gene Hand (Nebraska) (402) 471-0244















7


SERVICE LIST


All items filed in CC Docket No. 98-202 must be filed with the Secretary, Federal Communications
Commission, 445 12th Street, SW, Room TW-B204, Washington, D.C. 20554, and the following
Commissioners and staff members (e-mail addresses of staff members follow their mailing addresses):

DOCKET NO. 96-45 JOINT BOARD MEMBERS

Commissioner Jessica Rosenworcel
Chairman James H. Cawley
Joint Board Chair
Joint Board State Chair
Federal Communications Commission
Pennsylvania Public Utility Commission
445 12th Street SW, Room 8-A204C
400 North Street
Washington, DC 20554
Commonwealth Keystone Building
Jessica.Rosenworcel@fcc.gov
Harrisburg, PA 17120-3265

jhc@pa.gov

Commissioner Mignon Clyburn
Commissioner Ajit Pai
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 8-A302
445 12th Street SW, Room 8-C302C
Washington, DC 20554
Washington, DC 20554
Mignon.Clyburn@fcc.gov
Ajit.Pai@fcc.gov


Consumer Counsel William Levis
Board Member John D. Burke
Office of Consumer Counsel
Vermont Public Service Board
Colorado Department of Regulatory Agencies
112 State Street, 4th Floor
1560 Broadway, Suite 200
Montpelier, VT 05620-2701
Denver, CO 80202
John.Burke@state.vt.us
bill.levis@state.co.us


Commissioner Anne C. Boyle
Commissioner Randy Mitchell
Nebraska Public Service Commission
South Carolina Public Service Commission
P.O. Box 94927
101 Executive Center Drive
Lincoln, NE 68509-4927
P.O. Drawer 11649
Anne.Boyle@nebraska.gov
Columbia, SC 29211

randy.mitchell@psc.sc.gov


DOCKET NO. 96-45 FEDERAL-STATE JOINT BOARD STAFF

Labros Pilalis
George Young
Pennsylvania Public Utility Commission
Vermont Public Service Board
P.O. Box 3265
Drawer 20
Harrisburg, PA 17105
112 State Street, 4th Floor
lpilalis@pa.gov
Montpelier, VT 05620-2701

George.Young@state.vt.us



8


Doug Pratt
M. Gene Hand
South Carolina Public Service Commission
Nebraska Public Service Commission
101 Executive Center Drive, Suite 100
P.O. Box 94927
Columbia, SC 29210-8412
Lincoln, NE 68509-4927
Douglas.pratt@psc.sc.gov
Gene.Hand@nebraska.gov


Robert W. Haga
Natelle Dietrich
California Public Utilities Commission
Missouri Public Service Commission
505 Van Ness Avenue
200 Madison Street
San Francisco, CA 94102
Governor’s Office Building
RWH@cpuc.ca.gov
Jefferson City, MO 65102
Natelle.Dietrich@psc.mo.gov


Cary B. Hinton
Kerri DeYoung Phillips
Public Service Commission of the District of
Massachusetts Department of
Columbia
Telecommunications & Cable
1333 H Street, NW, East Tower - Suite 729
1000 Washington Street, Suite 820
Washington, D.C. 20005
Boston, MA 02118-6500
CHinton@psc.dc.gov
Kerri.DeYoung@state.ma.us


Kay Marinos

Susan Hardenbergh
Oregon Public Service Commission
Regulatory Commission of Alaska
550 Capitol Street NE Ste 215
701 West 8th Avenue
PO Box 2148
Suite 300
Salem, OR 97308-2148
Anchorage, AK 99501-3469
Kay.Marinos@state.or.us
susan.hardenbergh@alaska.gov


Christine Aarnes
Brad Ramsay
Kansas Corporation Commission
NARUC
1500 SW Arrowhead Rd.
1101 Vermont Ave. NW, Suite 200
Topeka, KS 66604
Washington, DC 20005
c.aarnes@kcc.ks.gov
jramsay@naruc.org



Joel Shifman
Jing Liu
Maine Public Utilities Commission
Washington Utilities & Transportation
State House Station 18
Commission
Augusta, ME 04333-0018
P.O. Box 47250
Joel.Shifman@maine.gov
1300 South Evergreen Park Drive, SW

Olympia, WA 98504-7250
jliu@utc.wa.gov


9


Vicki B. Helfrich

Barrett C. Sheridan
Miss. Wireless Communication Commission
Office of Consumer Advocate
412 East Woodrow Wilson Ave.
555 Walnut Street, Forum Place, 5th Floor
Mail Stop 6601
Harrisburg, PA 17101-1923
Jackson, MS 39216
bsheridan@paoca.org
vhelfrich@wcc.ms.gov




Thomas F. Dixon

Lew Craig
Office of Consumer Counsel
Alaska Department of Law
Colorado Department of Regulatory Agencies
Regulatory Affairs & Public Advocacy
1560 Broadway, Suite 200
701 W. 8th Avenue, Suite 300
Denver, CO 80202
Anchorage, AK 99501
thomas.dixon@state.co.us
lew.craig@alaska.gov



Priscilla Argeris
Angela Kronenberg
Office of Commissioner Rosenworcel
Office of Commissioner Clyburn
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 8-A204
445 12th Street SW, Room 8-A302
Washington, DC 20554
Washington, DC 20554
Priscilla.Argeris@fcc.gov
Angela.Kronenberg@fcc.gov



Nicholas Degani
Julie Veach, Chief
Office of Commissioner Pai
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 8-C302
445 12th Street SW, Room 5-C354
Washington, DC 20554
Washington, DC 20554
Nicholas.Degani@fcc.gov
Julie.Veach@fcc.gov



Carol Mattey, Deputy Chief
Michael Jacobs, Legal Advisor
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 5-C352
445 12th Street SW, Room 5-C347
Washington, DC 20554
Washington, DC 20554
Carol.Mattey@fcc.gov
Patrick.Halley@fcc.gov



Trent Harkrader, Associate Bureau Chief
Kimberly Scardino, Acting Chief
Wireline Competition Bureau
Telecommunications Access Policy Division
Federal Communications Commission
Wireline Competition Bureau
445 12th Street SW, Room 5-A526
Federal Communications Commission
Washington, DC 20554
445 12th Street SW, Room 5-A465
Trent.Harkrader@fcc.gov
Washington, DC 20554

Kimberly.Scardino@fcc.gov


10


Amy Bender, Deputy Chief
Divya Shenoy
Telecommunications Access Policy Division
Telecommunications Access Policy Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 5-A425
445 12th Street SW, Room 5-B510
Washington, DC 20554
Washington, DC 20554
Amy.Bender@fcc.gov
Divya.Shenoy@fcc.gov



Katie King
Ted Burmeister
Telecommunications Access Policy Division
Telecommunications Access Policy Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 5-B544
445 12th Street SW, Room 5-A445
Washington, DC 20554
Washington, DC 20554
Katie.King@fcc.gov
Theodore.Burmeister@fcc.gov



Joseph Cavender, Assistant Chief
Alex Minard, Assistant Chief
Telecommunications Access Policy Division
Telecommunications Access Policy Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 5-A236
445 12th Street SW, Room 5-B442
Washington, DC 20554
Washington, DC 20554
Joseph.Cavender@fcc.gov
Alexander.Minard@fcc.gov



Jonathan Lechter
Garnet Hanly
Telecommunications Access Policy Division
Telecommunications Access Policy Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 5-B438
445 12th Street SW, Room 5-A346
Washington, DC 20554
Washington, DC 20554
Jonathan.Lechter@fcc.fov
Garnet.Hanly@fcc.gov





OTHER FEDERAL STAFF

Jay Bennett
Rodger Woock, Division Chief
Industry Analysis & Technology Division
Industry Analysis & Technology Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 6-C212
445 12th Street SW, Room 6-A224
Washington, DC 20554
Washington, DC 20554
Jay.Bennett@fcc.gov
Rodger.Woock@fcc.gov



11


Jay Schwarz
Kenneth Lynch
Industry Analysis & Technology Division
Industry Analysis & Technology Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 6-A134
445 12th Street SW, Room 6-A103
Washington, DC 20554
Washington, DC 20554
Jay.Schwarz@fcc.gov
Kenneth.Lynch@fcc.gov



Suzanne Mendez
James Eisner
Industry Analysis & Technology Division
Industry Analysis & Technology Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 6-A144
445 12th Street SW, Room 6-A102
Washington, DC 20554
Washington, DC 20554
Suzanne.Mendez@fcc.gov
James.Eisner@fcc.gov



Craig Stroup
John Vu
Industry Analysis & Technology Division
Industry Analysis & Technology Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 6-A104
445 12th Street SW, Room 6-A360
Washington, DC 20554
Washington, DC 20554
Craig.Stroup@fcc.gov
John.Vu@fcc.gov



Susan Lee
Ellen Burton, Assistant Division Chief
Industry Analysis & Technology Division
Industry Analysis & Technology Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 6-B145
445 12th Street SW, Room 6-A233
Washington, DC 20554
Washington, DC 20554
Susan.Lee@fcc.gov
Ellen.Burton@fcc.gov



Cathy Zima, Deputy Division Chief
Chelsea Fallon, Assistant Division Chief
Industry Analysis & Technology Division
Industry Analysis & Technology Division
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 6-A221
445 12th Street SW, Room 6-A234
Washington, DC 20554
Washington, DC 20554
Cathy.Zima@fcc.gov
Chelsea.Fallon@fcc.gov




12


2012 Monitoring Report Supplementary Material

This list provides the names of files provided in the 2012 Monitoring Report Supplementary Material zip
file available athttp://www.fcc.gov/wcb/iatd/monitor.html"> www.fcc.gov/wcb/iatd/monitor.html. Underlined names are folders containing those files
after unzipping the file.


Low Income
LI Support - by State



LI Support - by Study Area

LI Subscribers and Beneficiaries - by State


LI Adjustments - by Study Area







High Cost
Claims
HC Claims - by State



HC Claims - by Study Area



HC ILEC Claims per Line - by State



HC ILEC Claims per Line - by Study Area


Disbursements
HC Disbursements - by State



HC Disbursements - by Study Area



HC ILEC Disbursements per Line - by State

HC ILEC Disbursements per Line - by Study

Area


NECA Support Data
HC NECA ILEC Support Data - by State


HC NECA ILEC Support Data - by Study Area




Schools and Libraries
SL Commitments and Disbursements - by Service Type and State


SL Disbursements - by Service Provider Type



SL Commitments and Disbursements per Student - by State






Rural Health Care
RHC Disbursements - by Speed and State


RHC Disbursements per Person - by State



RHC Pilot Commitments and Disbursements - by Speed and State








End-User Revenue by State
Estimating End-User Revenue by State - 2010 Technical Appendix


Estimating End-User Revenue by State - 2010 Tables



Program Descriptions
Program Description - High Cost Support


Program Description - Low Income Support



Program Description - Rural Health Care Support


Program Description - Schools and Libraries Support

Other
Changes in Local Exchange Carriers

ILEC Interstate Switched Access Minutes of Use - by Study Area

NECA Pool Results

Revenue Details - 2010




13

1. Industry Revenues and Contributions






This section provides a general overview of the revenues of the U.S. telecommunications industry and
the contributions to the universal service support mechanisms that are based on these revenues. The first part
discusses telecommunication revenues based on data filed in FCC Form 499 to the Universal Service
Administrative Company (USAC). The second part discusses contributions and provides an overview of
disbursements.

Revenue Information

Most of the data for 2010 are from filings of annual Telecommunications Reporting Worksheets
(FCC Form 499-A) made with USAC, the data collection agent for the FCC, on April 1, 2011. 1, 2 Revenue
data collected on these worksheets are used to administer contributions to the Universal Service Fund (USF),
Interstate Telecommunications Relay Service (TRS), North American Numbering Plan (NANP), and local
number portability (LNP) programs. Filer revenues also are used to calculate FCC Interstate
Telecommunications Service Provider (ITSP) regulatory fees. Data presented for 2011 and 2012 are from
FCC Form 499-Q quarterly filings.

The Commission has established several universal service mechanisms, governed by section 254 of
the Telecommunications Act of 1996, which help ensure that all Americans have access to affordable
telecommunications service. In section 254(d) of the Telecommunications Act of 1996,3 Congress mandated
that “[e]very telecommunications carrier that provides interstate telecommunications services shall contribute,
on an equitable and nondiscriminatory basis, to the specific, predictable, and sufficient mechanisms
established by the Commission to preserve and advance universal service.” 4 The Commission implemented
this mandate in the 1997 Universal Service First Report and Order.5 The Commission subsequently
designated USAC as the universal service fund (USF) administrator. Telecommunications providers currently
file FCC Form 499-A (due on April 1 of each year for the previous calendar year revenues) and FCC Form
499-Q (due one month after the close of each calendar quarter).


1
Much of the information filed on FCC Form 499-A is proprietary. Publicly available information on
individual providers is available at Consumer and Governmental Affairs Bureau, Federal Communications
Commission, Telecommunications Reporting Worksheet 499-A Search Form at
http://fjallfoss.fcc.gov/cgb/form499/499a.cfm.

2
Telecommunications providers filed worksheets containing calendar year 2011 revenue data on April 1,
2012. The worksheets are filed with USAC, which extensively reviews and validates data.
Telecommunications providers routinely make revised filings. As a result, the data are not considered
reliable enough for publication for several months after the initial filing date. Therefore, the 2011 filings
were not available for use in this report, and 2011 and 2012 data were based on the more abbreviated and
less reliable FCC Form 499-Q quarterly filings. April 2011 FCC Form 499-A filings containing 2010
revenues were used to compile the 2010 data. Compilation was based on a database prepared by USAC as
of February 29, 2012. Therefore, revised or new 2011 FCC Form 499-A filings that were received after
February 29, 2012, are not reflected herein.

3
Pub. L. No. 104-104, 110 Stat. 56 codified at 47 U.S.C. §§ 151 et seq.

4
47 U.S.C. § 254(d).

5
See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd
8776 (1997) (subsequent history omitted) (Universal Service First Report and Order).

1 - 1

Virtually all providers of telecommunications must file FCC Form 499-A each year.6 On June 21,
2006, the Commission ruled that providers of interconnected Voice over Internet Protocol (VoIP) service also
must file FCC Form 499-A.7 These filers first provided whole year revenue information in the April 2008
FCC Form 499-A filings.

Form 499-A instructs filers to report amounts actually billed to customers. This means that filers are
required to report revenues net of discounts, but without making adjustments to reflect uncollectible revenues
or international settlement payments and receipts. Most filers are able to report revenues in this manner using
information contained in their corporate books of account. Some service providers, however, have no
business or regulatory requirements to record intrastate or international revenues separately from interstate
revenues or to use the detailed revenue categories contained in the worksheets. These providers, such as
mobile wireless and interconnected VoIP providers, may use the interim safe harbor percentages to estimate
the interstate portion of their revenues.8

Table 1.1 shows the major components of telecommunications revenues for 2000 through 2011. This
table was created by aggregating revenue by major service classifications, such as local, mobile, and toll;
intrastate and interstate/international; and wholesale (also referred to as “carrier’s carrier”) and retail (also
referred to as “end user”).

6
There are certain exceptions. Providers that offer telecommunications for a fee exclusively on a non-
common carrier basis are not required to file if their total annual contribution to universal service would be
less than $10,000. Government entities that purchase telecommunications services in bulk on their own
behalf, public safety and local government entities licensed under Subpart B of Part 90 of the
Commission’s rules, and entities providing interstate telecommunications exclusively to government or
public safety entities are not required to file. In addition, broadcasters, non-profit schools, non-profit
libraries, non-profit colleges, non-profit universities, and non-profit health care providers are not required
to file. Finally, systems integrators that derive less than 5% of their systems integration revenues from the
resale of telecommunications and entities that provide services only to themselves or to commonly owned
affiliates need not file. However, services provided to exempt entities may be subject to contribution
requirements, and therefore exempt entities may be required to pay USF pass through charges to their
underlying service providers.

7
See Universal Service Contribution Methodology; Federal-State Joint Board on Universal Service, 1998
Biennial Regulatory Review – Streamlined Contributor Reporting Requirements Associated with
Administration of Telecommunications Relay Service, North American Numbering Plan, Local Number
Portability, and Universal Service Support Mechanisms, Telecommunications Services for Individuals with
Hearing and Speech Disabilities, and the Americans with Disabilities Act of 1990, Administration of the
North American Numbering Plan and North American Numbering Plan Cost Recovery Contribution
Factor and Fund Size, Number Resource Optimization, Telephone Number Portability, Truth-in-Billing
and Billing Format
, WC Docket No. 06-122, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-
116, 98-170, Report and Order and Notice of Proposed Rulemaking and Report and Order, 21 FCC Rcd
7518 (2006) (2006 Contribution Methodology Reform Order).
8
See Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A Section III.C.3.,
available at www.fcc.gov/Forms/Form499-A/499a-2011.pdf. In 2001 and 2002, the interim safe harbor for
mobile wireless carriers was 15%. In December 2002, the Commission raised the mobile wireless interim safe
harbor to 28.5%. Mobile wireless carriers began reporting revenues based on the higher interim safe harbor
percent on the FCC Form 499-Q due on February 1, 2003, and began contributing on this basis in April 2003.
In the 2006 Contribution Methodology Reform Order, the Commission raised the mobile wireless interim safe
harbor to 37.1%. Mobile wireless carriers began reporting revenues based on this higher interim safe harbor
percent in the FCC Form 499-Q due on August 1, 2006. The safe harbor for interconnected VoIP providers is
64.9%.

1 - 2



Table 1.2 provides a look at detailed industry revenues for 2000 to 2010 and categorizes revenues by
type of service and shows, for example, that providers reported $111.6 billion in mobile service revenues for
2010. 9 Table 1.3 separates the 2010 numbers from Table 1.2 into two categories: the top five affiliated
entities (combined) based on all revenues reported, and all other companies (combined).10 In the case of
mobile service revenues, for example, the $111.6 billion total for all companies is broken down to $96.1
billion revenue for the top five and $15.6 billion for everyone else. Thus, breaking up the data illustrates that
a few companies contribute most of the revenues in the USF.


Table 1.4 looks at how much retail revenue comes from each region of the country, as well as the
concentration of revenue among the five largest companies by region. These data are derived from Form 499-
A data on how much of each filer’s revenue comes from each state and dividing revenues from each state into
revenues by the top five affiliated entities and revenues by other filers.

Table 1.5 illustrates how data from the Form 499-A are used to develop a funding base for the USF,
TRS, and NANPA and LNP.11 As noted above, providers are considered de minimis for USF purposes if their
annual contribution is expected to be less than $10,000.

Table 1.6 provides interstate and international retail revenue over time, from 2009 to the first two
quarters of 2012. Data for 2009 and 2010 came from Form 499-A, and data for 2011 and 2012 came from
Form 499-Q. These data are also broken up into revenues from top five affiliated entities and other filers.
Since the USF contribution base is calculated based on interstate and international retail revenues, this table
gives an idea of how the base has changed over time and how much of the money comes from the largest
companies versus other telecommunications companies.

Table 1.7 presents data from quarterly filings of Form 499-Q for 2010 to 2012. It shows both
projections of interstate and international retail revenue and the historical data later collected. Note that
international-to-international revenues are included with non-telecommunications revenues rather than with
end user revenues on the quarterly form.12


We estimate state-level end-user telecommunication revenues using information from several
sources, including FCC Form 477, tariff access filings with the FCC and National Exchange Carrier
Association (NECA) minutes of use data. 13 Estimates of interstate end-user revenues by state are
reported in Table 1.8.

9
Each year, many filers erroneously report substantial amounts of switched toll revenues as other long distance
revenues. The data are examined and some revenues are reclassified based on staff research. Even so, the other
long distance category of Table 1.2 may contain some switched toll revenues, perhaps significant amounts in
some years.

10 In 2010, the top five affiliated entities were, in alphabetical order, AT&T Inc., Deutsche Telekom AG,
Qwest Services Corp., Sprint Nextel Corporation, and Verizon Communications, Inc.

11
See Telecommunications Industry Revenues (May 2011), available at www.fcc.gov/wcb/iatd/lec.html for a
comparison with the funding bases used for the TRS, NANPA, and LNPA support mechanisms.

12
Filers record international-to-international revenues for calls that they receive outside the United States and
that they carry to points outside the United States where the filer is operating as a U.S. carrier.


13
For a discussion of the methodology used to estimate revenues by state, see the Technical Appendix at
1 - 3



As noted above, the universal service rules prohibit the USF administrator from releasing company-
specific information contained in Form 499-A and Form 499-Q worksheets.14 Detailed industry subtotals by
type of service and type of business are posted at www.fcc.gov/wcb/iatd/monitor.html. Roll-up statistics are
presented for the five affiliated entities with the most end-user telecommunications and all the remaining
filers.



Program Requirements and Contribution Factors


Contributors make payments into the USF based on their interstate and international end user
telecommunications revenues. Contributors report their revenue data to USAC, which collects the data and
reports them to the Commission. The Commission reviews program requirements and the revenue data, and
determines the appropriate contribution factor. The Commission’s Office of Managing Director releases a
public notice stating the proposed contribution factor for the upcoming quarter. If, after 14 days, the
Commission takes no action regarding the proposed contribution factor, the factor becomes final.15


In February 2002, the Commission issued an order that, in part, eliminated from the contribution base
charges identified on customers’ bills as amounts recovering contributions to the universal service support
mechanisms, i.e., USF pass through surcharges. This change was intended to prevent double assessment of
the pass through surcharges, a situation known as “circularity.”16


Prior to these changes, providers filed historic revenue information each quarter, including revenue
derived from pass through surcharges, and the Commission would use these revenue totals along with total
estimated program requirements to calculate the contribution factor.17 In anticipation of this double
assessment, providers would frequently inflate their reported USF pass through surcharges (reported on Line
403) above the contribution factor.


The elimination of circularity was implemented in the third quarter of 2002. It reduced each
provider’s contribution base by the amount that the provider paid into USF during the prior quarter. The line
item “Circularity Adjustment” in Table 1.9 accounts for this change. This eliminated circularity as a reason
for providers to inflate pass through charges.


In December 2002, the Commission adopted an order that changed the basis for contribution
assessments from historic gross-billed revenues to projected collected revenues.18 This change also addressed

www.fcc.gov/wcb/iatd/monitor.html.

14
47 C.F.R. §54.711(b).

15
47 C.F.R. §54.709(a)(3).

16
See Federal-State Joint Board on Universal Service, et al, CC Docket Nos. 96-45, 98-171, 90-571, 92-237,
99-200, 95-116, 98-170, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752
(2002).

17
The Commission reduces the revenue estimates by 1% to account for uncollectibles.

18
See Federal-State Joint Board on Universal Service, et al, CC Docket Nos. 96-45, 98-171, 90-571, 92-237,
99-200, 95-116, 98-170, Report and Order and Second Further Notice of Proposed Rulemaking, 17 FCC
Rcd 24952 (2002).

1 - 4

the reason given by service providers with declining revenue for marking up their USF pass through charges.
These service providers argued that they had to contribute based on historic amounts that were greater than
their current period billings, resulting in the need to mark up their pass through charges. This change was
fully implemented in the second quarter of 2003.


Having addressed circularity and changing the contribution assessment methodology to address
declining revenues -- the two main reasons cited by providers for marking up their USF pass through charges -
- the Commission adopted a rule requiring those contributors that recover their universal service contributions
through a universal service line item to limit their recovery to the interstate portion of the customer’s bill times
the relevant contribution factor.19


Form 499-Q filers now file information on billed revenues for the previous quarter and both
projected billed revenues and projected collected revenues for the upcoming quarter. Projected collected
revenues, which are projected billed revenues less an allowance for uncollectible revenues, form the basis
for USF contribution assessments. Projected collected revenues are then adjusted to eliminate circularity.
Starting with the second quarter of 2003, the “Circularity Adjustment” amounts shown in Table 1.9 (discussed
in more detail below) reflect expected USF contributions for the quarter rather than the industry's actual
contributions from a prior quarter.


Table 1.9 shows the program funding requirements for 2012. For each program and for each quarter,
the table lists projected program demand, administrative costs, interest income, and periodic true-ups. The
table also shows the revenue base and contribution factors for each quarter. As explained above, the
contribution base is 1% less than reported revenues to reflect the fact that some contribution assessments may
prove uncollectible. Table 1.10 implements the Commission’s directive in the USF/ICC Transformation
Order
and Lifeline Reform Order to report performance measures relating to contribution burden for the
high-cost and low-income programs.20 Table 1.11 shows the contribution factor by quarter since the
second quarter of 2003.


Table 1.12 shows universal service disbursements on a mechanism-by-mechanism basis from 2001
and 2011. Chart 1.2 shows the 2011 information graphically.


Table 1.13 shows, on a state-by-state basis, the total amount of funding disbursements for each of
the universal service mechanisms, estimated contributions towards universal service, and the net
estimated dollar flow (disbursements less estimated contributions) for 2011.21



19
47 C.F.R. §54.712.

20
Lifeline and Link Up Reform and Modernization, et al., WC Dkt. Nos. 11-42 et al., CC Dkt. No. 96-45,
Report and Order and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656 (2012) (Lifeline Reform
Order
) and Connect America Fund; A National Broadband Plan for Our Future; Establishing Just and
Reasonable Rates for Local Exchange Carriers; High-Cost Universal Service Support; Developing a
Unified Intercarrier Compensation Regime; Federal-State Joint Board on Universal Service; Lifeline and
Link-Up; Universal Service Reform—Mobility Fund
; WC Docket Nos. 10-90, 07-135, 05-337, 03-109, CC
Docket Nos. 01-92, 96-45, GN Docket No. 09-51, WT Docket No. 10-208, Report and Order and Further
Notice of Proposed Rulemaking, FCC 11-161 (rel. Nov. 18, 2011) (USF/ICC Transformation Order and
FNPRM
).
21
For a discussion of the methodology used to estimate contributions per state, see the Technical Appendix at
www.fcc.gov/wcb/iatd/monitor.html.
1 - 5

Table 1.1

Overview of Telecommunications Industry Revenues1

(Dollar amounts shown in millions)

Preliminary16

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Local Service3,4
$36,621
$40,108
$38,412
$37,742
$38,546
$39,213
$39,392
$38,383
$39,200
$38,285
$37,955
$37,277
Mobile Service5
5,144
6,180
5,020
4,465
4,164
6,334
5,187
5,360
5,630
4,284
5,006

6,111

Wholesale
(Carrier's

Toll Service6
21,849
19,999
16,476
18,205
15,703
16,892
15,101
16,093
13,843
13,003
15,549

17,342

Carrier)

Intrastate7
25,553
27,848
25,770
24,825
25,852
27,486
24,848
22,566
21,836
20,173
22,484

23,609

Revenues2

Interstate and International8,9
38,060
38,439
34,138
35,587
32,561
34,953
34,831
37,270
36,837
35,399
36,026

37,121

Total Wholesale Revenues

$63,613
$66,287
$59,907
$60,412
$58,413
$62,439
$59,679
$59,836
$58,672
$55,571
$58,510
$60,730
Local Service3,10
$83,951
$86,403
$87,302
$84,691
$81,545
$80,155
$76,082
$73,095
$70,598
$66,591
$64,892
$58,674
Mobile Service11
56,362
67,826
75,659
83,558
92,286
98,156
107,255
112,579
115,304
110,341
106,637

107,380

Retail (End
Toll Service12
84,300
75,375
63,455
56,078
52,934
49,900
46,938
46,040
44,681
40,637
34,457

39,092

User)

Universal Service Surcharges13
4,537
5,909
6,019
6,384
6,557
7,272
7,314
7,902
8,110
7,911
8,662

-

Revenues

Intrastate14
147,465
155,347
154,815
150,889
153,265
154,310
157,653
158,380
157,737
149,493
142,356

135,184

Interstate and International8,15
81,685
80,165
77,619
79,822
80,057
81,173
79,937
81,235
80,956
75,988
72,292

69,963

Total Retail Revenues

$229,149
$235,513
$232,434
$230,711
$233,322
$235,482
$237,589
$239,615
$238,693
$225,481
$214,648
205,146

Local Service3
$120,572
$126,511
$125,713
$122,433
$120,091
$119,368
$115,474
$111,478
$109,798
$104,876
$102,847
$95,951
Mobile Service
61,505
74,006
80,679
88,022
96,450
104,489
112,442
117,939
120,934
114,625
111,643

113,491

Total
Toll Service
106,148
95,374
79,930
74,283
68,637
66,792
62,039
62,133
58,523
53,640
50,006

56,435

Revenues

(Wholesale +
Universal Service Surcharges
4,537
5,909
6,019
6,384
6,557
7,272
7,314
7,902
8,110
7,911
8,662

-

Retail)

Intrastate
173,018
183,195
180,585
175,714
179,117
181,796
182,501
180,946
179,573
169,666
164,840

158,793

Interstate and International8
119,745
118,605
111,756
115,409
112,617
116,125
114,768
118,505
117,793
111,387
108,318

107,083

Total Telecommunications Revenues

$292,762
$301,799
$292,341
$291,123
$291,734
$297,921
$297,268
$299,451
$297,365
$281,052
$273,158
265,87

6
1 - 6

Footnotes to Table 1.1

1Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements.
2Wholesale revenues are reported on the FCC Form 499-A as sales to other universal service contributors for resale. This includes, for example, access services that local
exchange carriers provide to toll carriers. Sales to de minimis resellers, end-user customers, governments, non-profits, and any other non-contributors are treated as end-
user revenues. Filers contribute to the universal service funding mechanisms based on their end-user interstate revenues. See Table 1.5 for further details on contribution
bases.
3Payphone revenues are included with local service revenues in this table.
4Dollar amounts are calculated using the sum of Lines 303a to 308a from Form 499-A.
5Dollar amounts are calculated using Line 309a from Form 499-A.
6Dollar amounts are calculated using the sum of Lines 310a to 314a from Form 499-A.
7Dollar amounts are calculated using the sum of Lines 303a to 314a, minus the sum of Lines 303d to 314d, minus the sum of Lines 303e to 314e from Form 499-A.
8Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues and are included in this table through 2010, but are not included
in the universal service contribution base. These revenues are not included in preliminary 2011 data.
9Dollar amounts are calculated using the sum of Lines 303d to 314d, plus the sum of Lines 303e to 314e from Form 499-A.
10Dollar amounts are calculated using the sum of Lines 404a to 408a from Form 499-A.
11Dollar amounts are calculated using the sum of Lines 409a and 410a from Form 499-A.
12Dollar amounts are calculated using the sum of Lines 411a to 417a from Form 499-A.
13Dollar amounts are calculated using Line 403a from Form 499-A.
14Dollar amounts are calculated using the sum of Lines 403a to 417a, minus the sum of Lines 403d to 417d, minus the sum of Lines 403e to 417e from Form 499-A.
15Dollar amounts are calculated using the sum of Lines 403d to 417d, plus the sum of Lines 403e to 417e from Form 499-A.
16Preliminary 2011 data are based on FCC Form 499-Q quarterly filings through February 2012. Companies that do not contribute to universal service are not required to
make these filings. The quarterly filings include preliminary data for the just closed quarter and projections for the coming quarter and therefore are not as accurate as the
subsequent annual filings. Also, FCC Form 499-Q filers do not separate revenue by type of service. Therefore, revenue totals by service type for 2011 are based on type
of filer rather than on data filed by service. In addition, FCC Form 499-Q does not require filers to report universal service surcharge separately from other revenues, and
therefore the surcharge is reflected in local, mobile, and toll service revenues.
Note: Detail may not add to totals due to rounding.
Source: FCC Form 499-A and Form 499-Q.
1 - 7

Table 1.2

Industry Revenues by Service Type: 2000-2010

(Dollar Amounts Shown in Millions)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Local Exchange1
$69,947
$72,346
$71,320
$70,606
$68,238
$66,506
$63,264
$62,790
$60,721
$56,839
$56,993
Pay Telephone2
1,932
1,585
1,192
1,063
1,002
924
659
470
379
268
197

Local

Local Private Line3
16,864
21,966
23,070
22,415
23,840
25,673
25,448
24,307
26,314
27,098
26,809

Service and

Payphone

Other Local4
3,249
3,391
3,418
3,242
2,944
3,331
3,884
3,227
3,321
3,531
3,032

Revenues

Subscriber Line Charges5
11,563
12,127
12,758
12,136
11,715
11,113
10,827
10,141
9,283
8,363
7,481
Access6
17,017
15,096
13,955
12,972
12,352
11,822
11,392
10,543
9,776
8,778
8,336

Total Local Service and Payphone Revenues

120,572
126,511
125,713
122,434
120,091
119,368
115,474
111,478
109,795
104,876
102,847

Mobile

Revenues Total Mobile Service Revenues7

61,505
74,006
80,678
88,023
96,450
104,489
112,442
117,939
120,934
114,625
111,643
Operator8
11,406
10,389
7,902
6,567
6,542
6,631
5,577
5,874
5,444
4,340
3,585

Toll

Non-Operator Switched Toll 9
75,183
65,325
54,475
50,178
46,387
44,876
41,570
42,518
39,329
34,943
27,132

Service

Long Distance Private Line10
16,189
16,402
15,108
15,316
13,906
13,264
12,739
12,080
11,683
11,649
14,344

Revenues

Other Long Distance11
3,372
3,259
2,445
2,222
1,801
2,021
2,154
1,661
2,071
2,708
4,945

Total Toll Service Revenues

106,149
95,374
79,930
74,283
68,637
66,792
62,039
62,133
58,527
53,640
50,006

Total Service Revenues Subtotal

288,226
295,891
286,322
284,739
285,177
290,649
289,954
291,549
289,255
273,141
264,496
Universal Service Surcharges12,13
4,537
5,908
6,019
6,383
6,557
7,273
7,314
7,902
8,110
7,911
8,662

Total Telecommunications Revenues Subtotal14

292,762
301,799
292,341
291,122
291,735
297,921
297,269
299,451
297,365
281,052
273,158
Total Non-Telecommunications Revenues15
42,261
48,036
60,406
65,186
71,493
86,764
101,061
131,615
151,494
158,859
173,228

Total Reported Revenues

$335,023
$349,835
$352,747
$356,308
$363,227
$384,685
$398,329
$431,066
$448,860
$439,911
$446,386
1 - 8

Footnotes to Table 1.2

1Dollar amounts are calculated using the sum of Lines 303a, 308a, and 404a from Form 499-A.
2Dollar amounts are calculated using the sum of Lines 306a and 407a from Form 499-A.
3Dollar amounts are calculated using the sum of Lines 305a and 406a from Form 499-A.
4Dollar amounts are calculated using the sum of Lines 307a and 408a from Form 499-A.
5Dollar amounts are calculated using Line 405a from Form 499-A.
6Dollar amounts are calculated using Line 304a from Form 499-A.
7Dollar amounts are calculated using the sum of Lines 309a, 409a, and 410a from Form 499-A.
8Dollar amounts are calculated using the sum of Lines 310a, 411a, 412a, and 413a from Form 499-A.
9Dollar amounts are calculated using the sum of Lines 311a and 414a from Form 499-A.
10Dollar amounts are calculated using the sum of Lines 312a and 415a from Form 499-A.
11Dollar amounts are calculated using the sum of Lines 313a, 314a, 416a, and 417a from Form 499-A.
12The surcharge figure indicates only surcharges that have been explicitly reported as such in Form 499-A and does not account
for implicit surcharge revenues where carriers collect the surcharge through higher prices.
13Dollar amounts are calculated using Line 403a from Form 499-A.
14Subtotal includes surcharge.
15Dollar amounts are calculated using Line 418a from Form 499-A.
Note: Detail may not add to totals due to rounding.
Source: FCC Form 499-A.
1 - 9

Table 1.3

2010 Industry Revenues by Service Type: Top 5 Affiliated Entities vs. Other Companies
(Dollar Amounts Shown in Millions)

Top 5 Affiliated Other Companies

Total

Entities1

Local Exchange2
$30,838
$21,274
$52,112
Pay Telephone3
48
148
197
Local Private Line4
17,972
8,837
26,809

Local Service

Other Local5
2,487
544
3,032
and Payphone

Revenues

Federal and State USF Support6
1,439
3,441
4,880
Subscriber Line Charges7
4,668
2,813
7,481
Access8
4,029
4,307
8,336

Total Local Service and Payphone Revenues

61,482
41,365
102,847

Mobile

Revenues

Total Mobile Service Revenues9

96,039
15,604
111,643
Operator10
851
2,734
3,585
Non-Operator Switched Toll11
15,899
11,233
27,132

Toll Service

Revenues

Long Distance Private Line12
7,115
7,228
14,344
Other Long Distance13
597
4,348
4,945

Total Toll Service Revenues

24,463
25,544
50,006

Total Service Revenues

181,984
82,512
264,496
Universal Service Surcharges14,15
6,681
1,981
8,662
188,665
84,493
273,158

Total Telecommunications Revenues

Total Non-Telecommunications Revenues16
107,665
65,563
173,228

Total Reported Revenues

$296,330
$150,056
$446,386
1The "Top 5 Affiliated Entities" are those with the greatest revenues as defined by Line 419a, which includes Lines 303a to 314a and Lines 403a to 418a.
These companies are (in alphabetlical order): AT&T Inc., Deutsche Telekom AG, Qwest Services Corp., Sprint Nextel Corporation, and Verizon
Communications.
2Dollar amounts are calculated using the sum of Lines 303a and 404a from Form 499-A.
3Dollar amounts are calculated using the sum of Lines 306a to 407a from Form 499-A.
4Dollar amounts are calculated using the sum of Lines 305a to 406a from Form 499-A.
5Dollar amounts are calculated using the sum of Lines 307a to 408a from Form 499-A.
6Dollar amounts are calculated using Line 308a from Form 499-A.
7Dollar amounts are calculated using Line 405a from Form 499-A.
8Dollar amounts are calculated using Line 304a from Form 499-A.
9Dollar amounts are calculated using the sum of Lines 309a, 409a, and 410a from Form 499-A.
10Dollar amounts are calculated using the sum of Lines 310a, 411a, 412a, and 413a from Form 499-A.
11Dollar amounts are calculated using the sum of Lines 311a and 414a from Form 499-A.
12Dollar amounts are calculated using the sum of Lines 312a and 415a from Form 499-A.
13Dollar amounts are calculated using the sum of Lines 313a, 314a, 416a, and 417a from Form 499-A.
14The surcharge figure indicates only surcharges that have been explicitly reported as such in Form 499-A and does not account for all the surcharge
revenues collected for universal service.
15Dollar amounts are calculated using Line 403a from Form 499-A.
16Dollar amounts are calculated using Line 418a from Form 499-A.
Note: Detail may not add to totals due to rounding.
Source: FCC Form 499-A.
1 - 10

Table 1.4

Estimated Retail (End-User) Telecommunications and Interconnected VoIP Service Revenues By Region1,2: 2010

(Dollar Amounts Shown in Millions)

Top 5

Other

Total End-User Region as % of

Region

States

Affiliated

Companies

Revenue4

Total

Entities3

Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi,

Southeast:

North Carolina, Puerto Rico, South Carolina, Tennessee, and
the U.S. Virgin Islands
$32,595
$14,095
$46,690
21.8%
Alaska, Arizona, Colorado, Idaho, Iowa, Minnesota, Montana,

Western:

Nebraska, New Mexico, North Dakota, Oregon, South Dakota,
Utah, Washington, and Wyoming
19,168
7,790
26,958
12.6%

West Coast:

California, Hawaii, Nevada, American Samoa, Guam, Northern
Mariana Islands, and Wake Island
23,328
5,874
29,203
13.6%

Mid-Atlantic:

Delaware, District of Columbia, Maryland, New Jersey,
Pennsylvania, Virginia, and West Virginia
21,723
6,261
27,984
13.0%

Mid-West:

Illinios, Indiana, Michigan, Ohio, and Wisconsin
20,829
8,936
29,765
13.9%

Northeast:

Connecticut, Maine, Massachusetts, New Hampshire, New
York, Rhode Island, and Vermont
18,141
6,787
24,928
11.6%

Southwest:

Arkansas, Kansas, Missouri, Oklahoma, and Texas
21,367
6,177
27,544
12.8%
Filers that did not provide revenue information by region1
15
1,562
1,577
0.7%

Total

$157,167
$57,481
$214,648
100.0%
1Filers that are exempt from contributing to local number portability administration are not required to provide a breakout by region of the country.
2Surcharges (Line 403) and international-to-international revenues (Line 412) are included in the revenue figures.
3The "Top 5 Affiliated Entities" are those with the greatest revenues as defined by Line 419a, which is the sum of Lines 303a to 314a and Lines 403a to 418a.
These companies are (in alphabetical order): AT&T Inc., Deutsche Telekom AG, Qwest Services Corp., Sprint Nextel Corporation, and Verizon Communications.
4Totals for each region are calculated using the sum of Lines 403a to 417a, multiplied by the percentage of the company's end-user revenues for that region, from
Form 499-A.
Note: Detail may not add to totals due to rounding.
Source: FCC Form 499-A.
1 - 11

Table 1.5

Contribution Base Revenues By Program1: 2010

(Dollar Amounts Shown in Millions)
2010

Revenues subject to universal service contribution

Billed interstate and international end-user revenues (includes Universal Service Surcharge)
$72,292
[Line 403 to Line 417, parts (d) and (e)]
less
revenues for international - to - international services [ Line 412(e) ]
469
less
international revenues of international-only filers and international revenues that were excluded because of the
3,326
LIRE Exemption2
less
interstate and other international revenues for 1,775 filers who are de minimis or otherwise exempt from
34
universal service support requirements
less
uncollectible contribution base revenues [ Line 422(d) + Line 422(e) ]
960
(Does not include uncollectible amounts associated with revenues excluded above.)
equals
$67,503

Revenues subject to TRS contribution

Interstate and international end-user revenues
$72,292
less
interstate and international revenues for filers who identify themselves as private service providers or as shared-
291
tenant service providers and who therefore are exempt from telecommunications relay service (TRS)
contribution requirements if they provide no carrier services
less
interstate and international revenues for services provided for resale but reported as end user because it was
472
provided to carriers that do not contribute to universal service support mechanisms [ Line 511(b) ]
equals
$71,528

Revenues subject to NANPA and LNP contribution

Total telecommunications service end-user revenues (including intrastate, interstate and international)
$214,648
less
telecommunications revenues for filers who identify themselves as private service providers, shared-tenant
891
service providers or payphone service providers and who therefore are exempt from North American
Numbering Plan Administration (NANPA) and local number portability administration (LNP) contribution
requirements if they provide no carrier services
less
telecommunications revenues for services provided for resale but reported as end user because it was provided
500
to carriers that do not contribute to universal service support mechanisms [ Line 511 (a) ]
equals
$213,256
1This table shows how contribution bases differ for different programs and provides relative magnitudes, but does not provide the actual amounts used for
determining contributions. Amounts shown represent the amounts contained in the FCC Form 499-A database as of February 29, 2012. The universal
service administrator continues to receive additional and corrected filings. Exempt amounts were based on revenues and the filer type (i.e., principal
business activity) information contained in the FCC Form 499-A filings. The fund administrators may use carrier type, revenue type, Line 603 exemption
certifications, and additional information requested from filers to determine which filers are required to contribute. The universal service fund administrator
bills delinquent filers based on estimated revenues and may, in some instances, include estimated revenue amounts in contribution base amounts. The
universal service contribution factors are set quarterly based on FCC Form 499-Q filings. FCC Form 499-A data are used for true-up and auditing purposes.
Local number portability contribution amounts are determined by region of the country rather than on a nationwide basis. As a result of these factors, actual
contribution bases have been based on different amounts than those shown.
2A provider receives the Limited International Revenue Exemption (LIRE) and its international revenues excluded from the contribution base if the total
amount of interstate end-user revenues for the filing entity consolidated with all affiliates is less than 12% of the total of interstate and international end-user
revenues for the filing entity consolidated with all affiliates. See 47 C.F.R. § 54.706(c). The threshold was increased from 8% to 12% in 2002. See Federal-
State Joint Board on Universal Service, et al., CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-166, 98-170, Further Notice of Proposed
Rulemaking and Report and Order, 17 FCC Rcd 3752, 3806, para. 125 (2002). In addition, filers that provide only international services are exempt
regardless of services offered by affiliates.
Note: Detail may not add to totals due to rounding.
Source: FCC Form 499-A.
1 - 12

Table 1.6

Billed Interstate and International Retail Revenues1 by

Top 5 Affiliated Entities vs. Other Companies

(Dollar Amounts Shown in Millions)

Preliminary3

2009
2010
2011

First Half 2012

Top 5 Affiliated Entities2

$54,503
$51,655
$50,334
$25,203

Other Companies

21,485
20,637
19,628
9,988

Total

$75,988
$72,292
$69,963
$35,191
1Current year revenues are calculated as the sum of Lines 403d to 417d, plus the sum of Lines 403e to 417e,
minus Lines 412e, 422d, and Line 422e.
2The "Top 5 Affiliated Entities" are the five affiliated entities with the greatest revenues as defined by Line 419a,
which is the sum of Lines 303a to 314a and Lines 403a to 418a. In 2009 and 2010, these companies were (in
alphabetical order): AT&T Inc., Deutsche Telekom AG, Qwest Services Corp., Sprint Nextel Corporation, and
Verizon Communications. In 2011 and 2012, these companies were (in alphabetical order): AT&T Inc.,
CenturyLink, Deutsche Telekom AG, Sprint Nextel Corporation, and Verizon Communications.
3Preliminary revenues are calculated using Line 116b plus Line 116c for each quarter in FCC Form 499-Q.
Note: Detail may not add to totals due to rounding.
Source: 2009-2010 from FCC Form 499-A; 2011-2012 from FCC Form 499-Q.

Chart 1.1

Interstate and International Retail Revenues by Top 5 Affiliated Entities vs.

Other Companies

100%
90%
80%
70%
60%
50%
40%

Percentage

30%
20%
10%
0%
2009
2010
2011
First Half 2012

Year

Top 5 Affiliated Entities
Other Companies
1 - 13

Table 1.7

Carrier Telecommunications Revenue Reported on FCC Form 499-Q: 2010-2012

(Dollar Amounts Shown in Millions)

LIRE

Total Less

Data from FCC Form 499-Q

All Filers

Exemption

LIRE

$74,192
Billed to End Users

Projected Revenues

Interstate and
72,997
(3,500)
69,497
Collected from End Users
for 2010
International
1.6%
Implied Uncollectible Rate
58,575
Billed to Resellers
Intrastate, Interstate,
214,791
Billed to End Users
and International
273,366

Historical Revenues

Total Revenue

Reported for 2010

Billed to End Users
71,796
Interstate and
International
70,995
Billed to End Users

Projected Revenues

Interstate and
69,739
(3,096)
66,642
Collected from End Users
for 2011
International
1.8%
Implied Uncollectible Rate
60,730
Billed to Resellers
Intrastate, Interstate,
205,146
Billed to End Users
and International
265,876

Historical Revenues

Total Revenue

Reported for 2011

Billed to End Users
69,963
Interstate and
International
Billed to End Users1
70,141

Projected Revenues

Interstate and
Collected from End Users2,3
69,125
(2,892)
66,233
for 2012
International
1.4%
Implied Uncollectible Rate
Billed to Resellers4
30,156
Intrastate, Interstate, Billed to End Users5
100,692
and International

Historical Revenues

130,847
Total Revenue

Reported for First

Billed to End Users6
35,191

Half of 2012

Interstate and
International
1Dollar amounts for projected revenues billed to end users are calculated using the sum of Lines 119b and 119c from Form 499-Q.
2Dollar amounts for projected revenues collected from end users including All Filers are calculated using the sum of Lines 120b and 120c from
Form 499-Q.
3Dollar amounts for projected LIRE exempt revenues are calculated using the sum of Lines 120b and 120c from those filers who are LIRE-
exempt based on Form 499-Q filings.
4Dollar amounts for historical revenues billed to resellers is calculated using Line 115a from Form 499-Q.
5Dollar amounts for historical revenues billed to end users is calculated using Line 116a from Form 499-Q.
6Dollar amounts for interstate and international historical revenues billed to end users is calculated using the sum of Lines 116b and 116c from
Form 499-Q.
Note: Detail may not add to totals due to rounding.
Source: FCC Form 499-Q.
1 - 14

Table 1.8

End-User Telecommunications Revenues by State: 2010

(Dollar Amounts Shown in Millions)

Interstate and

Intrastate

International

Total

% of Total
Alabama
$2,085
$1,146
$3,231
1.51%
Alaska
328
190
518
0.24
American Samoa
12
6
17
0.01
Arizona
2,621
1,406
4,027
1.88
Arkansas
1,210
635
1,845
0.86
California
17,737
7,892
25,630
11.94
Colorado
2,336
1,290
3,626
1.69
Connecticut
1,742
962
2,704
1.26
Delaware
452
259
711
0.33
District of Columbia
720
352
1,072
0.50
Florida
8,740
4,681
13,421
6.25
Georgia
4,350
2,339
6,688
3.12
Guam
68
40
107
0.05
Hawaii
609
413
1,022
0.48
Idaho
639
357
996
0.46
Illinois
5,960
2,921
8,882
4.14
Indiana
2,729
1,381
4,111
1.92
Iowa
1,271
656
1,927
0.90
Kansas
1,227
621
1,848
0.86
Kentucky
1,820
960
2,780
1.30
Louisiana
1,976
1,007
2,983
1.39
Maine
598
318
915
0.43
Maryland
2,945
1,610
4,555
2.12
Massachusetts
3,336
1,700
5,036
2.35
Michigan
4,328
2,045
6,373
2.97
Minnesota
2,377
1,163
3,541
1.65
Mississippi
1,139
636
1,775
0.83
Missouri
2,659
1,382
4,041
1.88
Montana
416
241
657
0.31
Nebraska
792
416
1,208
0.56
Nevada
1,208
628
1,836
0.86
New Hampshire
615
332
947
0.44
New Jersey
4,553
2,407
6,960
3.24
New Mexico
830
455
1,285
0.60
New York
9,630
4,834
14,464
6.74
North Carolina
4,188
2,217
6,404
2.98
North Dakota
309
165
475
0.22
N. Mariana Islands
20
10
30
0.01
Ohio
5,137
2,497
7,634
3.56
Oklahoma
1,564
784
2,348
1.09
Oregon
1,637
854
2,491
1.16
Pennsylvania
5,990
3,024
9,014
4.20
Puerto Rico
1,237
740
1,977
0.92
Rhode Island
476
242
718
0.33
South Carolina
1,957
1,079
3,037
1.41
South Dakota
358
186
544
0.25
Tennessee
2,912
1,490
4,403
2.05
Texas
10,704
5,010
15,714
7.32
Utah
1,054
531
1,585
0.74
Vermont
279
171
450
0.21
Virgin Islands
62
55
118
0.05
Virginia
3,977
2,192
6,169
2.87
Washington
2,978
1,485
4,464
2.08
West Virginia
759
494
1,252
0.58
Wisconsin
2,452
1,243
3,695
1.72
Wyoming
247
142
389
0.18
Total
$142,356
$72,292
$214,648
100.00%
Note: Figures may not add to totals due to rounding.
Source: FCC/WCB staff estimates. For methodology end-user revenue per state, see the the
Technical Appendix at www.fcc.gov/wcb/monitor.html.
1 - 15

Table 1.9

Universal Service Program Requirements and Contribution Factors for 2012

(in Millions)
First
Second Third
Fourth
Full
Quarter
Quarter
Quarter
Quarter
Year
All Support Mechanisms
Projections of demand and administrative expenses
at the time the contribution factors were adopted
High Cost
High Cost Loop Support
$314.330
$211.440
$208.450
$208.470
$942.690
Local Switching Support1
$87.730
$57.020
$144.750
Interstate Common Line Support
$417.560
$226.210
$216.740
$216.620
$1,077.130
Interstate Access Support Mechanism
$131.120
$131.120
Forward-Looking High Cost Model Support
$69.300
$69.300
Frozen High Cost Support2
$256.550
$258.640
$258.560
$773.750
Frozen Competitive ETC Support3
$254.650
$220.960
$220.880
$696.490
Reserves Pursuant to FCC 10-155 and 11-1614
$77.000
$119.130
$220.210
$145.470
$561.810
Connect America Fund Phase I - Incremental Support5
$75.000
$75.000
Prior Period Adjustment
$98.670
$5.970
$13.120
-$3.070
$114.690
Administrative Expenses
$4.590
$4.980
$5.120
$3.900
$18.590
Interest Income6
-$2.040
-$3.100
-$1.240
-$1.540
-$7.920
Program Total
$1,198.260
$1,132.850
$1,142.000
$1,124.290
$4,597.400
Low Income
Lifeline Assistance
$535.170
$573.210
$542.790
$724.860
$2,376.030
Link-Up
$45.870
$46.110
$0.710
$0.230
$92.920
Incremental Toll Limitation
$3.070
$2.690
$2.160
$1.980
$9.900
Prior Period true-ups
$71.160
-$6.120
-$48.150
-$63.660
-$46.770
Administrative expenses
$2.220
$2.150
$2.150
$1.090
$7.610
Interest Income6
-$0.030
-$0.170
-$0.110
-$0.230
-$0.540
Program Total
$657.460
$617.870
$499.550
$664.270
$2,439.150
Rural Health
Rural Health Care Support
$22.530
$35.740
$28.390
$31.140
$117.800
Prior Period True-ups
$0.860
-$0.220
-$0.390
-$0.240
$0.010
Administrative expenses
$3.460
$3.510
$3.550
$2.950
$13.470
Interest Income6
-$1.440
-$2.210
-$0.690
-$0.640
-$4.980
Program Total
$25.410
$36.820
$30.860
$33.210
$126.300
Schools & Libraries
Schools and Libraries Support
$562.500
$562.500
$562.500
$562.500
$2,250.000
Inflation adjustment7
$40.680
$15.320
$24.490
$80.490
Prior Period True-ups
$49.500
$10.640
-$7.560
-$4.250
$48.330
Administrative expenses
$20.030
$18.190
$18.970
$16.960
$74.150
Interest Income6
-$3.050
-$1.540
-$4.410
-$4.390
-$13.390
Program Total
$628.980
$630.470
$584.820
$595.310
$2,439.580
Grand Total
$2,510.110
$2,418.010
$2,257.230
$2,417.080
$9,602.430
Applicable interstate and international end-user revenues

Reported contribution base revenues
$16,609.415
$16,392.277
$16,697.469
$16,410.687
Circularity Adjustment
Amount carriers will contribute to USF in this quarter.
-2,490.080
-2,399.820
-2,238.260
-2,400.120
Subtotal
$14,119.335
$13,992.457
$14,459.209
$14,010.567
Adjustment factor for uncollectibles
1.0%
1.0%
1.0%
1.0%
Contribution base at the time the factor was calculated
$13,978.142
$13,852.532
$14,314.617
$13,870.461
Contribution factor
17.9%
17.4%
15.7%
17.4%
Contribution factor times contribution base
$2,502.087
$2,410.341
$2,247.395
$2,413.460
Source: Support mechanism data are from USAC Appendix M02 from pertinent filings as shown at http://www.usac.org/about/tools/fcc/filings/default.aspx. Contribution factor information is available at
https://www.fcc.gov/encyclopedia/contribution-factor-quarterly-filings-universal-service-fund-usf-management-support. Because the purpose of this table is to show the demand filings on which the
contribution factors were set, figures in this table are based on the initial M02 rather than the revised one (which was filed after the USF/ICC Transformation Order ). Any differences between the
initially filed M02 and the revised one would ultimately appear as a prior period adjustment in a subsequent quarter.
1 In the USF/ICC Transformation Order , the Commission froze LSS at 2011 levels for rate-of-return carriers, effective January 1, 2012, and eliminated it effective July 1, 2012. See USF/ICC
Transformation Order
, paras. 253-57.
2 In the USF/ICC Transformation Order , the Commission converted support received by Price Cap carriers and their rate-of-return affiliates, including IAS, HCMS, ICLS, LSS, and HCLS, to Frozen
High Cost Carrier Support. USF/ICC Transformation Order , paras. 128-57.
3 In the USF/ICC Transformation Order , the Commission froze support received by competitive ETCs, including IAS, HCMS, ICLS, LSS, and HCLS at 2011 levels, effective January 1, 2012, and began
phasing the frozen support down effective July 1, 2012. USF/ICC Transformation Order, paras. 498-32.
4 In the Corr Wireless Order (FCC 10-155), the Commission ordered USAC to reserve excess competitive ETC support for future uses. In the USF/ICC Transformation Order (11-161), the Commission
provided instructions for utilizing the remaining funds in the reserve created by the Corr Wireless Order . USF/ICC Transformation Order , paras. 564-67. At the same time, the Commission created the
Connect America reserve to be used to manage fluctuations in high-cost demand. Id., paras. 547-56.
5 Incremental Support is designed to provide an immediate boost to broadband deployment in areas that are unserved by any broadband provider (See USF/ICC Transformation Order , para. 137).
6 Interest income is shown as negative because it is subtracted from expenses to yield the total.
7 In FCC 11-161, the FCC directed USAC to include the inflation adjustments to the E-rate cap in the Schools and Library Support Mechanism demand projection.
1 - 16

Table 1.10

Total Universal Service Contributions Divided by Number of Households

Monthly

Inflation Adjusted (2012 Dollars)

Total Contribution

Average Residential Contribution

Per-

Per-

Per-Line

Per-Line

Year

High-Cost

Low-Income

Rural Health

Schools and

Household

Household

Low

High

Support

Support

Care

Libraries

Total

Low Estimate High Estimate

Estimate

Estimate

2011
$3.21
$1.20
$0.07
$1.68
$6.15
$2.77
$3.38
$0.99
$1.21
2012
$3.15
$1.67
$0.09
$1.67
$6.58
$2.96
$3.62
$1.02
$1.25
Notes: Performance measures reported pursuant to the USF/ICC Transformation Order and Lifeline Reform Order . Figures do not represent the average amount
individual households see on their bills because universal service contribution data do not separate business from residential contributions. The Commission does not
currently collect data that would allow the residential or per-line contribution amount to be calculated accurately. FCC staff, using data from FCC Form 499 and third
party reports, estimates that contributions based on services typically sold to residential users represent roughly one-half of overall contributions; the third party data
sources used in creating these estimates are the 2013 Telecommunications Industry Association (TIA) Market Forecast and Review and the U.S. Census. FCC staff
believe that the residential portion of the total contribution is between 45% (low estimate) and 55% (high estimate). The per-bill amount is a fraction of this per-
household amount because many households have multiple phone lines. FCC staff, using TIA and U.S. Census data, estimates that on average U.S. households had 2.8
telephone lines in 2011 and 2.9 in 2012. Using the 2012 estimate for example, the average 2012 per-line contribution would be at 45% about $1.02 and at 55% about
$1.25. Figures may not add due to rounding. Rural Health Care support includes both the primary and pilot programs.
Source: Universal service contributions in 2011 from Table 1.10 of the 2011 Monitoring Report and for 2012 from Table 1.9. Inflation adjusted using CPI values
reported for July of each year in Table 4.3. Household data as reported in Table 3.1 were used to calculate per household amount.
1 - 17

Table 1.11

Universal Service Fund Contribution Factor 1

Year

Quarter

Factor

2003
Second Quarter
9.1
Third Quarter
9.5
Fourth Quarter
9.2
2004
First Quarter
8.7
Second Quarter
8.7
Third Quarter
8.9
Fourth Quarter
8.9
2005
First Quarter
10.7
Second Quarter
11.1
Third Quarter
10.2
Fourth Quarter
10.2
2006
First Quarter
10.2
Second Quarter
10.9
Third Quarter
10.5
Fourth Quarter
9.1
2007
First Quarter
9.7
Second Quarter
11.7
Third Quarter
11.3
Fourth Quarter
11.0
2008
First Quarter
10.2
Second Quarter
11.3
Third Quarter
11.4
Fourth Quarter
11.4
2009
First Quarter
9.5
Second Quarter
11.3
Third Quarter
12.9
Fourth Quarter
12.3
2010
First Quarter
14.1
Second Quarter
15.3
Third Quarter
13.6
Fourth Quarter
12.9
2011
First Quarter
15.5
Second Quarter
14.9
Third Quarter
14.4
Fourth Quarter
15.3
2012
First Quarter
17.9
Second Quarter
17.4
Third Quarter
15.7
Fourth Quarter
17.4
1 Beginning with the second quarter of 2003, carriers contribute based on projected, collected, end-user
interstate and international telecommunications revenues. Previously, carriers contributed on historical,
gross billed revenues.
Source: Quarterly Public Notices on universal service contribution factors are in CC Docket 96-45. See
http://www.fcc.gov/omd/contribution-factor.html.
1 - 18

Table 1.12

Universal Service Disbursements 2001-2011

(in Million of Dollars)

High-Cost

Low-Income

Rural Health

Schools and

Year

Support

Support

Care

Libraries

Total
2001
$2,602
$584
$8
$1,464
$4,659
2002
2,978
673
16
1,683
5,351
2003
3,273
713
3
1,644
5,633
2004
3,488
759
1
1,076
5,324
2005
3,824
809
26
1,862
6,520
2006
4,096
820
41
1,669
6,626
2007
4,287
823
37
1,808
6,955
2008
4,478
819
49
1,760
7,106
2009
4,292
1,025
72
1,878
7,268
2010
4,268
1,316
110
2,282
7,976
2011
4,031
1,751
141
2,233
8,156
Notes: Figures may not add due to rounding. The figures used in this table are for the calendar year and
include disbursements that were committed over several years but paid out in the respective calendar year.
In Section 2, figures for the Schools and Libraries program and the Rural Health Care program are reported
based on fiscal year rather than calendar year. Rural Health Care support includes both the primary and
pilot programs.
Source: Universal Service Administration Company (USAC).

Chart 1.2

Distribution of Universal Service Payments: 2011

High-Cost Support
Schools and
49%
Libraries
27%
Rural Health Care
Low-Income
2%
Support
22%
1 - 19

Table 1.13

Universal Service Support Mechanisms by State: 2011

(Annual Payments and Contributions in Thousands)

Payments from USF to Service Providers 1



High-Cost Low-Income Schools &

Rural Health

Estimated Net

Support

Support

Libraries

Care 2

Total

Estimated Contributions 3

Dollar Flow 4

Amount

% of Total

Amount

% of Total
Alabama
$90,341
$33,263
$58,891
$1,416
$183,912
2.26%
$130,998
1.59%
$52,914
Alaska
202,518
25,585
30,142
43,925
302,169
3.71%
21,675
0.26%
280,494
American Samoa
1,813
85
3,553
103
5,554
0.07%
659
0.01%
4,896
Arizona
71,292
23,112
60,428
1,541
156,373
1.92%
160,732
1.95%
-4,359
Arkansas
89,481
40,472
18,068
1,303
149,323
1.83%
72,615
0.88%
76,709
California
90,587
163,314
321,118
1,360
576,380
7.07%
902,067
10.92%
-325,687
Colorado
70,990
2,184
29,108
2,267
104,548
1.28%
147,494
1.79%
-42,946
Connecticut
453
11,561
21,103
0
33,116
0.41%
109,984
1.33%
-76,868
Delaware
221
3,258
2,225
0
5,706
0.07%
29,619
0.36%
-23,913
Dist. of Columbia
0
3,540
9,020
0
12,560
0.15%
40,248
0.49%
-27,688
Florida
54,708
112,350
76,928
572
244,557
3.00%
534,994
6.47%
-290,437
Georgia
111,272
78,190
91,205
3,422
284,089
3.48%
267,295
3.23%
16,794
Guam
20,037
288
188
127
20,639
0.25%
4,526
0.05%
16,113
Hawaii
60,971
485
3,557
312
65,326
0.80%
47,171
0.57%
18,154
Idaho
49,662
3,313
9,620
348
62,943
0.77%
40,844
0.49%
22,099
Illinois
65,133
67,690
92,605
7,134
232,561
2.85%
333,870
4.04%
-101,308
Indiana
78,417
9,401
34,463
1,803
124,084
1.52%
157,861
1.91%
-33,777
Iowa
129,905
5,453
12,853
6,982
155,193
1.90%
74,992
0.91%
80,202
Kansas
190,681
7,006
15,149
482
213,318
2.62%
70,926
0.86%
142,392
Kentucky
101,168
7,953
41,830
833
151,784
1.86%
109,749
1.33%
42,035
Louisiana
114,460
98,331
54,564
167
267,522
3.28%
115,048
1.39%
152,474
Maine
30,004
11,478
6,995
669
49,145
0.60%
36,294
0.44%
12,851
Maryland
3,351
42,822
23,816
2
69,991
0.86%
183,965
2.23%
-113,974
Massachusetts
2,088
29,693
26,292
129
58,203
0.71%
194,274
2.35%
-136,071
Michigan
42,111
65,634
51,144
1,542
160,432
1.97%
233,709
2.83%
-73,277
Minnesota
98,883
5,944
26,728
3,192
134,746
1.65%
132,974
1.61%
1,773
Mississippi
245,674
34,913
23,507
214
304,308
3.73%
72,677
0.88%
231,631
Missouri
98,065
26,325
40,135
747
165,273
2.03%
157,903
1.91%
7,370
Montana
88,018
3,636
3,993
2,685
98,333
1.21%
27,537
0.33%
70,796
Nebraska
90,350
1,619
9,636
15,981
117,586
1.44%
47,560
0.58%
70,027
Nevada
20,640
6,329
6,819
116
33,905
0.42%
71,752
0.87%
-37,847
New Hampshire
9,381
2,215
2,601
18
14,215
0.17%
37,958
0.46%
-23,743
New Jersey
1,501
41,176
57,174
0
99,851
1.22%
275,112
3.33%
-175,261
New Mexico
81,869
13,785
33,342
1,018
130,014
1.59%
51,967
0.63%
78,046
New York
41,715
130,928
148,954
783
322,379
3.95%
552,494
6.69%
-230,114
North Carolina
68,469
67,098
68,387
1,326
205,280
2.52%
253,340
3.07%
-48,060
North Dakota
96,987
2,134
4,226
1,327
104,675
1.28%
18,867
0.23%
85,808
Northern Mariana Is.
2,905
232
765
0
3,902
0.05%
1,179
0.01%
2,723
Ohio
32,959
77,816
67,352
13,159
191,285
2.35%
285,423
3.45%
-94,138
Oklahoma
144,443
121,524
57,561
1,054
324,582
3.98%
89,629
1.08%
234,953
Oregon
75,941
6,641
16,066
4,513
103,161
1.26%
97,596
1.18%
5,565
Pennsylvania
66,245
43,916
64,226
1,391
175,778
2.16%
345,641
4.18%
-169,863
Puerto Rico
165,376
58,904
9,317
0
233,596
2.86%
84,591
1.02%
149,004
Rhode Island
29
3,425
9,014
0
12,468
0.15%
27,646
0.33%
-15,178
South Carolina
111,731
13,736
45,553
1,788
172,808
2.12%
123,368
1.49%
49,440
South Dakota
64,856
1,268
2,293
2,359
70,776
0.87%
21,312
0.26%
49,464
Tennessee
63,407
49,262
56,249
464
169,383
2.08%
170,329
2.06%
-946
Texas
247,012
97,773
234,844
2,335
581,964
7.14%
572,609
6.93%
9,355
Utah
22,290
3,988
19,508
1,846
47,632
0.58%
60,641
0.73%
-13,009
Vermont
18,298
2,477
1,827
46
22,647
0.28%
19,567
0.24%
3,080
Virgin Islands
18,944
111
10,537
82
29,673
0.36%
6,309
0.08%
23,364
Virginia
69,503
29,207
41,004
505
140,219
1.72%
250,548
3.03%
-110,329
Washington
81,100
22,563
32,322
114
136,099
1.67%
169,777
2.05%
-33,677
West Virginia
53,037
14,260
13,436
1,314
82,047
1.01%
56,427
0.68%
25,620
Wisconsin
136,230
20,660
27,006
5,944
189,839
2.33%
142,019
1.72%
47,821
Wyoming
43,746
403
3,294
250
47,695
0.58%
16,273
0.20%
31,422
Total
$4,031,268 $1,750,728
$2,232,539
$141,013
$8,155,548
100.00%
$8,262,633
100.00%
-$107,085
Notes: Figures may not add due to rounding. USF is an abbreviation for the Universal Service Fund.
1 Data are from USAC.
2 Includes both the primary and pilot programs.
3 Contributions include administrative cost of approximately $107 million, as shown in USAC's Annual Report.
Allocation of contributions among states is an FCC/WCB staff estimate.
4 Net dollar flow is positive when payments from USF to carriers exceed contributions to USF. Total is negative because of administrative expenses.
1 - 20

2. Program Review

Section 2 includes the latest data on the low-income (Lifeline and Link Up), high-cost, schools
and libraries, and rural health care support programs through 2011. The data provided in this section are
supplemented by additional tables athttp://www.fcc.gov/wcb/iatd/monitor.html"> www.fcc.gov/wcb/iatd/monitor.html. This website location also
provides more details on the history and operation of each of the four support programs.


Low-Income Support Program: Lifeline and Link Up


The Lifeline program promotes increased telephone subscribership by providing low-income
households with discounts on the monthly cost of telephone service. Link Up provides qualified
subscribers with a one-time discount off of the initial installation fee for one traditional, wireline phone
service at the primary residence or the activation fee for one wireless phone service.

The Lifeline program was created in 1984, and Link Up rules were created in 1987. In June
2000, the Commission further expanded Lifeline and Link Up to address the needs of households on
Tribal lands.1


On February 6, 2012, the Commission released the Lifeline Reform Order, which took significant
steps to reform the low-income program.2 These reforms include establishing a new interim flat Lifeline
support amount of $9.25 per subscriber per-month in non-Tribal areas;3 restricting Link Up support to
only Eligible Telecommunications Carriers (ETCs) receiving high cost support on Tribal lands;4 capping
Toll Limitation Support at $3.00 per-month and eliminating support by the end of 2013;5 directing USAC
to continue with in-depth data validations; and requiring consumers to provide proof of eligibility, certify
their eligibility at sign up and recertify eligibility on an annual basis.6 The Lifeline Reform Order also
establishes a pilot program to provide broadband service to low-income consumers as well as a savings
target of $200 million as compared to what would have been spent in the absence of reform.7 Through
these and other reforms, the Commission sought to eliminate waste and inefficiency, and increase
accountability. The Lifeline Reform Order represents another step in the Commission’s ongoing efforts
to overhaul all USF programs to promote the availability of modern networks and the capability of all

1
Federal-State Joint Board on Universal Service; Promoting Deployment and Subscribership in Unserved
and Underserved Areas, Including Tribal and Insular Areas,
Twelfth Report and Order, and Further Notice
of Proposed Rulemaking, CC Docket No. 96-45, FCC 00-208, 15 FCC Rcd 12,208 (2000).

2
Lifeline and Link Up Reform and Modernization, et al., WC Dkt. Nos. 11-42 et al., CC Dkt. No. 96-45,
Report and Order and Further Notice of Proposed Rulemaking, 27 FCC Rcd 6656 (2012) (Lifeline Reform
Order
).

3
See 47 C.F.R. § 54.403(a)(1).

4
See 47 C.F.R. § 54.413(a).

5
See 47 C.F.R. § 54.403(c).

6
See Lifeline Reform Order 27 FCC Rcd at 6747, para. 211; 47 C.F.R. § 54.410. In-depth data validations
are a process through which USAC obtains subscriber lists from ETCs and directs ETCs to de-enroll
duplicative subscribers.

7
See Lifeline Reform Order 27 FCC Rcd at 6794-6811, paras. 321-360.

2 - 1



American consumers to access and use those networks. The changes to the low-income program as a
result of the 2012 Lifeline Reform Order are not reflected in the data in this year’s report, which covers
the period through 2011.

The low-income program grew between 2008 and 2011.8 As shown in Table 2.1, lifeline
subscribers increased 104% from 6.7 million subscribers in 2008 to 13.7 million subscribers in 2011.9
Similarly, as shown in Table 2.2, low-income support (the sum of Lifeline and Link Up support)
increased 118% from $822 million in 2008 to $1.79 billion in 2011.10 Chart 2.1 shows the growth in
low-income subscribers and beneficiaries graphically.

Table 2.3 reports federal and state average Lifeline monthly support for incumbent local
exchange carriers (ILECs) by state in December 2011, and indicates the additional contribution from the
federal program to reduce local rates where states have authorized statewide or carrier-specific intrastate
local rate reductions. The table indicates the average monthly non-Tribal support provided by carriers in
each state for ILECs. In December 2011, average monthly nationwide combined federal and state
support for ILECs was $12.00.


Table 2.4 reports average monthly federal Lifeline support per subscriber by state and average
monthly Tribal Lifeline support by state for 2011.11 Table 2.5 reports the average Link Up support per
beneficiary by state for both Tribal and non-Tribal beneficiaries.


Table 2.6 shows low-income support payments by state for Lifeline and Link Up for 2011.
American Indian and Native American Tribal Lifeline Tier 4 and Link Up data are also reported. Total
carrier payments data include the carrier’s incremental cost of providing toll-limitation services (TLS) in
each state.



Competitive eligible telecommunication carriers (CETCs) have received a growing share of total
low-income support over the past 10 years and now receive substantially more support than ILECs.
Support received by CETCs increased from $147 million in 2008 (18% of total) to $1.23 billion (69% of
total) in 2011. In contrast, ILEC support declined from $675 million in 2008 to $558 million in 2011.
Table 2.7 shows annual low-income support since 1998 for both ILECs and CETCs, and Chart 2.2 shows
the increase in CETC share of total support since 1998.

The five largest telecommunications companies (when including their affiliated entities)
combined accounted for greater than two-thirds of low-income support payments in 2011.12 Table 2.8

8
Low-income information reported in this section is based on claims data submitted to USAC by carriers on

FCC Form 497.

9
Table 2.1 reports Tribal and non-Tribal Lifeline subscriber and Link Up beneficiary data for years 1987
through 2011.

10
Table 2.2 reports annual low-income claims for years 1988 through 2011.

11
Lifeline support includes Tiers 1-3 support. Tribal support is Tier 4 support. See the program appendix for
an explanation of Tiers 1-4 support. The Lifeline Reform Order replaced Tiers 1-3 with a $9.25 flat rate
support amount.

12
América Móvil owns TracFone and Puerto Rico Telephone Company.


2 - 2



reports low-income support by company for the top 10 recipients of low-income support in 2011. Table
2.9 breaks these figures out by Lifeline, Link Up, and TLS support.

Additional data on the low-income support program have been posted at
http://www.fcc.gov/wcb/iatd/monitor.html">www.fcc.gov/wcb/iatd/monitor.html. These data include Lifeline subscribership and Link Up
beneficiaries by state since 1998, low-income support claims data by state and study area since 1998, as
well as low-income adjustments by study area for 2011.






2 - 3



Table 2.1

Lifeline Subscribers and Link Up Beneficiaries

(in Thousands)

Lifeline

Link Up

Year

Non-Tribal

Tribal

Total

Non-Tribal

Tribal

Total

1987
1,063
8
1988
1,829
106
1989
2,115
207
1990
2,467
513
1991
2,984
640
1992
3,440
743
1993
3,972
737
1994
4,423
838
1995
4,914
824
1996
5,233
808
1997 1
5,111
NA
1998
5,376
0
5,376
2,195
0
2,195
1999
5,638
0
5,638
1,835
0
1,835
2000
5,856
4
5,861
1,690
2
1,692
2001
6,088
53
6,140
1,670
23
1,694
2002
6,393
111
6,504
1,657
30
1,687
2003
6,352
146
6,498
1,662
23
1,685
2004
6,612
176
6,788
1,670
42
1,712
2005
6,829
234
7,063
1,672
90
1,762
2006
6,634
287
6,921
1,553
101
1,654
2007
6,615
328
6,943
1,382
112
1,494
2008
6,382
350
6,732
1,510
118
1,627
2009
7,666
371
8,038
1,751
111
1,862
2010
9,892
382
10,274
2,530
126
2,657
2011
13,286
463
13,749
4,012
286
4,297
NA - Not available.
Note: The reported subscribers and beneficiaries represent USAC data for the time period January through December
which include true-ups for Lifeline subscribers and Link-Up beneficiaries through March of the following year.
Data for 1998-2010 were revised.
1 Subscriber data were not collected in 1997. Lifeline subscribership data were estimated by USAC.
Source: Universal Service Administrative Company.
2 - 4

Table 2.2

Low-Income Claims

(in Thousands)

Lifeline

Link Up

Total

Year

General

Tribal

2
TLS 3

PICC

4

Total

Non-Tribal

Tribal

Total

1988
$31,952
$0
$0
$0
$31,952
$1,991
$0
$1,991
$33,943
1989
50,878
0
0
0
50,878
4,480
0
4,480
55,358
1990
62,464
0
0
0
62,464
11,351
0
11,351
73,815
1991
79,104
0
0
0
79,104
13,705
0
13,705
92,809
1992
93,766
0
0
0
93,766
15,342
0
15,342
109,108
1993
109,083
0
0
0
109,083
17,019
0
17,019
126,102
1994
123,284
0
0
0
123,284
18,573
0
18,573
141,857
1995
137,277
0
0
0
137,277
18,392
0
18,392
155,670
1996
148,186
0
0
0
148,186
18,247
0
18,247
166,433
1997
147,579
0
0
0
147,579
13,711
0
13,711
161,290
1998 1
416,504
0
2,700
2,802
422,006
42,461
0
42,461
464,467
1999
438,578
0
3,134
4,450
446,162
33,988
0
33,988
480,150
2000
482,052
522
2,846
3,168
488,588
30,411
30
30,441
519,029
2001
548,419
6,960
3,195
0
558,574
30,314
475
30,788
589,362
2002
623,350
17,955
3,779
0
645,083
30,323
700
31,022
676,106
2003
657,095
24,167
4,425
0
685,687
30,170
515
30,686
716,373
2004
695,188
30,502
5,111
0
730,800
30,898
1,230
32,129
762,929
2005
716,133
45,124
6,215
0
767,472
31,715
2,788
34,503
801,975
2006
703,958
61,524
8,885
0
774,367
29,832
2,869
32,701
807,068
2007
710,180
73,145
8,514
0
791,839
27,816
3,575
31,391
823,230
2008
695,016
80,914
8,634
0
784,564
30,682
6,578
37,260
821,824
2009
868,112
88,062
8,959
0
965,133
40,812
7,485
48,297
1,013,430
2010
1,126,616
92,878
22,504
0
1,241,999
67,905
9,798
77,703
1,319,702
2011
1,526,073
118,147
11,091
0
1,655,311
113,064
21,566
134,630
1,789,941
Note: Data for 2006-2010 were revised. Beginning in 2011, some claims for 2011 and earlier years were recovered due to audits or other corrections. This amounts to $8.1 million
recovered in 2011, of which $4.3 million came from the Lifeline program, $3.7 million came from the Link Up program, and $28,000 came from the TLS program.
1 Effective in 1998, the federal Lifeline support mechanism was expanded so that a basic level of assistance would be provided in all states. Additional federal support is also provided
wherever a state chooses to provide matching assistance. Prior to the expansion, states were required to match all federal support with their own state support, and if the state provided
no support, then no federal support was available in that state. The basic level of federal support was also increased in 1998.
2 Tribal support is Tier 4 support only. Tiers 1 to 3 support for Tribal beneficiaries is included under General.
3 TLS is an abbreviation for toll limitation service.
4 Carriers no longer charge a residential Presubscribed Interexchange Carrier Charge (PICC) as of July 1, 2000.
Source: Universal Service Administrative Company.

Chart 2.1

Lifeline Subscribers and Link Up Beneficiaries

(in Thousands)
20,000
18,000
16,000
14,000
12,000
10,000


8,000
6,000
4,000
2,000
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Lifeline
5,861
6,140
6,504
6,498
6,788
7,063
6,921
6,943
6,732
8,038
10,274
13,749
Link Up
1,692
1,694
1,687
1,685
1,712
1,762
1,654
1,494
1,627
1,862
2,657
4,297
2 -5

Table 2.3

Average Lifeline Monthly Claims for ILECs by State

(December 2011)
Basic Federal
Support1
State Support2
Federal Match
Total Federal Support3
Total
Alabama
$8.23
$3.50
$1.75
$9.98
$13.48
Alaska
8.25
3.50
1.75
10.00
13.50
American Samoa
8.25
0.00
0.00
8.25
8.25
Arizona
8.01
1.23
0.61
8.62
9.85
Arkansas
7.44
1.87
0.94
8.38
10.25
California
6.60
3.50
1.75
8.35
11.85
Colorado
8.18
3.50
1.75
9.93
13.42
Connecticut
7.50
1.17
0.59
8.09
9.26
Delaware
8.15
0.00
0.00
8.15
8.15
District of Columbia
5.60
3.50
1.75
7.35
10.85
Florida
8.17
3.50
1.75
9.92
13.41
Georgia
8.23
3.38
1.69
9.92
13.30
Guam
8.25
1.70
0.85
9.10
10.81
Hawaii
8.25
0.00
0.00
8.25
8.25
Idaho
8.15
3.47
1.73
9.89
13.35
Illinois
6.58
0.00
0.00
6.58
6.58
Indiana
7.52
0.00
0.00
7.52
7.52
Iowa
7.06
0.00
0.00
7.06
7.06
Kansas
7.26
3.50
1.75
9.01
12.50
Kentucky
8.18
3.47
1.74
9.92
13.39
Louisiana
8.23
0.00
0.00
8.23
8.23
Maine
7.98
3.50
1.75
9.73
13.23
Maryland
7.38
3.41
1.71
9.08
12.50
Massachusetts
8.11
3.50
1.75
9.86
13.36
Michigan
7.28
2.24
1.12
8.40
10.64
Minnesota
7.18
1.97
0.99
8.17
10.14
Mississippi
8.23
3.32
1.66
9.89
13.21
Missouri
7.33
3.49
1.74
9.07
12.56
Montana
8.25
2.43
1.21
9.46
11.89
Nebraska
7.03
3.35
1.67
8.71
12.06
Nevada
6.12
3.34
1.67
7.79
11.14
New Hampshire
7.94
0.00
0.00
7.94
7.94
New Jersey
8.01
3.48
1.74
9.75
13.23
New Mexico
8.25
3.22
1.61
9.86
13.08
New York
8.02
3.30
1.65
9.67
12.97
North Carolina
7.85
3.50
1.75
9.60
13.10
North Dakota
8.25
1.95
0.98
9.23
11.18
Northern Mariana Islands
8.25
3.33
1.67
9.92
13.25
Ohio
7.28
3.49
1.75
9.03
12.52
Oklahoma
7.43
0.40
0.20
7.63
8.03
Oregon
8.21
3.48
1.74
9.95
13.44
Pennsylvania
7.66
0.75
0.38
8.03
8.78
Puerto Rico
8.25
3.50
1.75
10.00
13.50
Rhode Island
8.11
3.50
1.75
9.86
13.36
South Carolina
8.20
3.50
1.75
9.95
13.45
South Dakota
8.20
0.10
0.05
8.25
8.34
Tennessee
8.14
3.19
1.59
9.73
12.92
Texas
7.28
3.49
1.75
9.02
12.52
Utah
8.09
3.50
1.75
9.83
13.33
Vermont
7.97
3.50
1.75
9.72
13.22
Virgin Islands
8.25
3.49
1.74
9.99
13.48
Virginia
7.16
3.24
1.62
8.78
12.02
Washington
7.70
2.62
1.31
9.01
11.62
West Virginia
8.24
0.01
0.00
8.25
8.25
Wisconsin
7.39
2.35
1.18
8.56
10.91
Wyoming
8.25
3.50
1.75
10.00
13.50
Total
$7.35
$3.10
$1.55
$8.90
$12.00
Notes: This table reflects only non-Tribal support. All averages are weighted averages. ILECs is an abbreviation for incumbent local exchange carriers.
1 Basic federal support includes both Tier 1 and Tier 2 support. See the Low-Income Support Program Technical Appendix for definitions.
2 Includes only state support (Tier 3) that is matched by federal support.
3 Total federal support reported in Table 2.3 is different from Table 2.4 since Table 2.3 reports a rate as of December 2011 and Table 2.4 reports an
annual rate for 2011.
Source: Universal Service Administrative Company.
2 - 6

Table 2.4

Federal Lifeline Average Claims by State: 2011

State

Support in Thousands

Subscribers

Support per Month

General

Tribal

Non-Tribal

Tribal

General1

Tribal

Alabama
$35,560
$3
296,451
27
$10.00
$8.30
Alaska
8,179
17,391
0
67,115
10.16
21.59
American Samoa
69
0
690
0
8.33
-
Arizona
9,783
13,001
37,365
49,480
9.39
21.90
Arkansas
30,819
0
287,738
3
8.93
5.95
California
157,623
44
1,559,817
676
8.42
5.40
Colorado
2,161
1
18,155
4
9.92
14.29
Connecticut
11,535
0
107,847
0
8.91
-
Delaware
3,263
0
27,687
0
9.82
-
District of Columbia
3,491
0
39,637
0
7.34
-
Florida
111,457
1
937,538
6
9.91
9.53
Georgia
73,849
0
619,504
0
9.93
-
Guam
248
0
2,222
0
9.31
-
Hawaii
522
0
5,007
0
8.68
-
Idaho
3,072
198
25,226
737
9.86
22.37
Illinois
57,457
0
636,741
0
7.52
-
Indiana
9,283
0
88,538
0
8.74
-
Iowa
5,099
0
55,618
1
7.64
19.00
Kansas
6,032
2
59,011
23
8.52
6.71
Kentucky
8,400
0
70,973
0
9.86
-
Louisiana
79,977
0
691,658
0
9.64
-
Maine
10,723
47
91,105
481
9.76
8.11
Maryland
32,995
0
299,612
0
9.18
-
Massachusetts
29,825
0
251,932
0
9.87
-
Michigan
62,887
59
590,085
313
8.88
15.78
Minnesota
5,611
271
55,864
1,548
8.15
14.60
Mississippi
29,569
5
246,781
16
9.98
25.00
Missouri
22,629
1
213,268
33
8.84
2.85
Montana
1,675
1,938
7,265
7,341
9.56
22.00
Nebraska
1,522
82
14,258
421
8.64
16.25
Nevada
5,779
24
61,716
600
7.73
3.37
New Hampshire
2,186
0
19,442
0
9.37
-
New Jersey
40,226
0
343,997
0
9.74
-
New Mexico
7,772
5,810
43,122
22,698
9.84
21.33
New York
130,511
1
1,107,491
11
9.82
10.17
North Carolina
66,315
1
566,754
5
9.75
13.85
North Dakota
1,615
513
11,444
3,075
9.27
13.90
Northern Mariana Islands
223
0
1,871
0
9.92
-
Ohio
75,415
0
687,110
0
9.15
-
Oklahoma
28,182
74,700
3,585
292,790
7.92
21.26
Oregon
6,629
34
55,059
209
10.00
13.46
Pennsylvania
44,277
0
412,237
0
8.95
-
Puerto Rico
56,753
0
472,153
0
10.02
-
Rhode Island
3,271
0
27,599
0
9.88
-
South Carolina
12,707
9
106,459
112
9.94
6.35
South Dakota
908
354
6,892
2,325
8.21
12.71
Tennessee
48,204
0
410,012
0
9.80
-
Texas
93,731
19
850,234
324
9.18
4.79
Utah
3,753
224
30,877
915
9.84
20.42
Vermont
2,295
0
19,385
0
9.87
-
Virgin Islands
112
0
871
0
10.70
-
Virginia
29,483
0
258,178
0
9.52
-
Washington
18,838
3,158
160,069
10,805
9.19
24.36
West Virginia
12,704
0
106,232
0
9.97
-
Wisconsin
18,515
210
182,903
813
8.40
21.52
Wyoming
353
47
2,749
194
10.00
20.17
Total
$1,526,073
$118,147
13,286,032
463,099
$9.25
$21.26
Notes: General support includes Tier 1 to 3 support. Tribal Lifeline rates are just for Tier 4 payments. Tribal
Lifeline subscribers also qualify for Tier 1 to 3 support, which is included in General. These calculations
exclude TLS.
1 Total federal support reported in Table 2.3 is different from Table 2.4 since Lifeline subscribers in Table 2.3 include only ILEC
subscribers for December 2011 and subscribers in Table 2.4 are average 2011 subscribers.
Source: Universal Service Administrative Company.
2 - 7

Table 2.5

Link Up Average Claims by State: 2011

State

Support in Thousands

Beneficiaries

Support per Beneficiary

Non-Tribal

Tribal

Non-Tribal

Tribal

Non-Tribal

Tribal

Alabama
$1,889
$0
63,702
0
$29.66
-
Alaska
0
70
2
3,613
18.50
19.26
American Samoa
1
0
21
0
30.00
-
Arizona
107
168
6,334
8,402
16.90
19.97
Arkansas
11,866
0
396,332
0
29.94
-
California
4,274
0
179,575
1
23.80
20.00
Colorado
28
0
1,627
0
17.46
-
Connecticut
20
0
741
0
26.91
-
Delaware
1
0
59
0
18.00
-
District of Columbia
62
0
2,490
0
24.97
-
Florida
929
0
29,253
0
31.77
-
Georgia
9,869
0
337,686
0
29.22
-
Guam
34
0
1,313
0
26.01
-
Hawaii
9
0
590
0
14.94
-
Idaho
27
0
1,787
13
14.84
14.31
Illinois
14,512
0
485,889
0
29.87
-
Indiana
158
0
6,693
0
23.54
-
Iowa
387
0
14,039
0
27.56
-
Kansas
1,284
0
43,214
0
29.71
-
Kentucky
471
0
18,363
0
25.66
-
Louisiana
23,298
0
778,184
0
29.94
-
Maine
436
1
16,184
53
26.95
22.70
Maryland
11,713
0
390,848
0
29.97
-
Massachusetts
3
0
491
0
6.86
-
Michigan
2,475
0
84,634
29
29.24
11.83
Minnesota
48
2
4,552
88
10.48
19.58
Mississippi
3,682
0
120,563
0
30.54
-
Missouri
7,084
0
238,008
6
29.77
7.50
Montana
10
17
731
1,084
13.46
15.33
Nebraska
16
0
971
1
15.97
17.00
Nevada
1,000
1
34,850
33
28.68
17.36
New Hampshire
4
0
181
0
19.43
-
New Jersey
1,082
0
36,754
0
29.43
-
New Mexico
131
74
7,272
3,680
17.96
20.24
New York
97
0
3,663
0
26.41
-
North Carolina
1,247
0
43,401
0
28.73
-
North Dakota
13
6
806
227
15.72
26.37
Northern Mariana Islands
14
0
584
0
23.32
-
Ohio
1,290
0
139,122
0
9.28
-
Oklahoma
35
21,176
1,703
266,759
20.65
79.38
Oregon
38
0
4,325
6
8.76
8.33
Pennsylvania
408
0
19,125
0
21.32
-
Puerto Rico
2,050
0
85,697
0
23.92
-
Rhode Island
359
0
12,655
0
28.39
-
South Carolina
760
0
27,321
0
27.84
-
South Dakota
7
1
566
92
12.42
14.67
Tennessee
948
0
35,067
0
27.02
-
Texas
3,619
1
144,017
31
25.13
19.48
Utah
26
4
2,102
172
12.60
20.35
Vermont
19
0
1,332
0
14.25
-
Virgin Islands
1
0
222
0
5.55
-
Virginia
31
0
1,485
0
21.08
-
Washington
760
43
34,983
1,428
21.71
29.91
West Virginia
2,307
0
76,967
0
29.97
-
Wisconsin
2,124
3
72,252
236
29.40
13.04
Wyoming
4
0
205
10
17.47
17.90
Total
$113,064
$21,566
4,011,533
285,964
$28.18
$75.41
Source: Universal Service Administrative Company.
2 - 8

Table 2.6

Low-Income Claims by State: 2011

(in Thousands)
State or Jurisdiction

Lifeline

Link Up

TLS

Total

General

Tribal

Non-Tribal

Tribal

Alabama
$35,560
$3
$1,889
$0
$1,229
$38,681
Alaska
8,179
17,391
0
70
51
25,691
American Samoa
69
0
1
0
0
70
Arizona
9,783
13,001
107
168
34
23,094
Arkansas
30,819
0
11,866
0
109
42,794
California
157,623
44
4,274
0
93
162,034
Colorado
2,161
1
28
0
4
2,194
Connecticut
11,535
0
20
0
0
11,555
Delaware
3,263
0
1
0
0
3,265
District of Columbia
3,491
0
62
0
0
3,553
Florida
111,457
1
929
0
542
112,929
Georgia
73,849
0
9,869
0
70
83,787
Guam
248
0
34
0
0
282
Hawaii
522
0
9
0
0
531
Idaho
3,072
198
27
0
6
3,302
Illinois
57,457
0
14,512
0
144
72,112
Indiana
9,283
0
158
0
4
9,444
Iowa
5,099
0
387
0
7
5,493
Kansas
6,032
2
1,284
0
63
7,381
Kentucky
8,400
0
471
0
350
9,222
Louisiana
79,977
0
23,298
0
928
104,203
Maine
10,723
47
436
1
4
11,211
Maryland
32,995
0
11,713
0
0
44,709
Massachusetts
29,825
0
3
0
0
29,829
Michigan
62,887
59
2,475
0
407
65,828
Minnesota
5,611
271
48
2
4
5,936
Mississippi
29,569
5
3,682
0
441
33,697
Missouri
22,629
1
7,084
0
100
29,814
Montana
1,675
1,938
10
17
4
3,644
Nebraska
1,522
82
16
0
8
1,627
Nevada
5,779
24
1,000
1
1
6,804
New Hampshire
2,186
0
4
0
0
2,189
New Jersey
40,226
0
1,082
0
1
41,309
New Mexico
7,772
5,810
131
74
22
13,809
New York
130,511
1
97
0
248
130,857
North Carolina
66,315
1
1,247
0
680
68,242
North Dakota
1,615
513
13
6
1
2,148
Northern Mariana Islands
223
0
14
0
0
236
Ohio
75,415
0
1,290
0
570
77,275
Oklahoma
28,182
74,700
35
21,176
3,503
127,596
Oregon
6,629
34
38
0
7
6,708
Pennsylvania
44,277
0
408
0
3
44,688
Puerto Rico
56,753
0
2,050
0
0
58,803
Rhode Island
3,271
0
359
0
0
3,630
South Carolina
12,707
9
760
0
373
13,850
South Dakota
908
354
7
1
1
1,271
Tennessee
48,204
0
948
0
191
49,343
Texas
93,731
19
3,619
1
844
98,214
Utah
3,753
224
26
4
13
4,020
Vermont
2,295
0
19
0
1
2,315
Virgin Islands
112
0
1
0
0
113
Virginia
29,483
0
31
0
0
29,514
Washington
18,838
3,158
760
43
18
22,817
West Virginia
12,704
0
2,307
0
0
15,012
Wisconsin
18,515
210
2,124
3
12
20,863
Wyoming
353
47
4
0
0
404
Total
$1,526,073
$118,147
$113,064
$21,566
$11,091
$1,789,941
Notes: These dollars represent submitted claims to USAC for the time period January 2011 through December 2011, including true-ups reported
through August 2012. General Lifeline support is Tier 1 to 3 support for all subscribers, including Tribal subscribers. Tribal Lifeline support is
Tier 4 support only. For Lifeline, "General" payments are made to all Lifeline subscribers and "Tribal" payments are additional payments to Tribal
Lifeline subscribers only. For Link Up, the payments and subscribers for the two categories of recipients are kept separate.
Source: Universal Service Administrative Company.
2 - 9

Table 2.7

Low-Income Claims Received by ILECs and CETCs

(in Thousands)

ILECs

CETCs

Total

Percent CETCs

1998
$464,207
$260
$464,467
0.1 %
1999
479,353
796
480,150
0.2
2000
517,901
1,128
519,029
0.2
2001
585,790
3,572
589,362
0.6
2002
663,009
13,097
676,106
1.9
2003
693,378
22,994
716,373
3.2
2004
723,580
39,349
762,929
5.2
2005
734,344
67,631
801,975
8.4
2006
707,135
99,933
807,068
12.4
2007
701,990
121,240
823,230
14.7
2008
674,805
147,019
821,824
17.9
2009
643,217
370,213
1,013,430
36.5
2010
596,115
723,557
1,319,702
54.8
2011
557,815
1,232,126
1,789,941
68.8
Notes: ILECs is an abbreviation for incumbent local exchange carriers. CETCs is an abbreviation for
competitive eligible telecommunications carriers. CETCs include both wireless and wireline carriers.
Source: Universal Service Administrative Company.

Chart 2.2

Percent of Low-Income Claims Received by CETCs

80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2 - 10

Table 2.8

Low-Income Claims by Affiliated Entities: 2011

(in Thousands)

Low-Income

Percent

Cumulative

Rank Affiliated Entity Name1

Support

of Total

Percent of Total

1
América Móvil
$451,833
25.2%
25.2%
2
AT&T Inc.
280,052
15.6
40.9
3
Sprint Nextel Corporation
273,466
15.3
56.2
4
Nexus Communications, Inc.
116,178
6.5
62.7
5
Verizon Communications Inc.
109,186
6.1
68.8
6
CenturyLink, Inc.
52,124
2.9
71.7
7
True Wireless, LLC
37,167
2.1
73.7
8
Budget Prepay Inc.
33,725
1.9
75.6
9
TerraCom, Inc.
33,558
1.9
77.5
10
Amvensys Telecom Holdings
32,652
1.8
79.3
Other Carriers
369,999
20.7
100.0
All Holding Companies
$1,789,941
100.0%
100.0%

Table 2.9

Low-Income Claims by Program and by Affiliated Entities: 2011

(in Thousands)

Link Up

Rank Affiliated Entity Name1

Lifeline Support

Support

TLS Support

1
América Móvil
$451,704
$130
$0
2
AT&T Inc.
274,855
4,998
199
3
Sprint Nextel Corporation
273,466
0
0
4
Nexus Communications, Inc.
96,162
20,000
17
5
Verizon Communications Inc.
108,200
945
41
6
CenturyLink, Inc.
51,401
655
67
7
True Wireless, LLC
27,795
9,372
0
8
Budget Prepay Inc.
20,545
12,536
644
9
TerraCom, Inc.
26,857
6,175
526
10
Amvensys Telecom Holdings
23,868
7,409
1,376
Other Carriers
289,367
72,410
8,221
All Holding Companies
$1,644,220
$134,630
$11,091
1 Affiliated entities include all commonly-controlled or commonly-owned affiliates as of 2011.
2 - 11


High-Cost Support Program

The high-cost support mechanisms enable eligible telecommunications carriers (ETCs) serving
areas with very high costs to recover some of these costs from the federal universal service fund, leaving
a smaller remainder of the costs to be recovered through end-user rates or state universal service support
mechanisms. In this manner, the high-cost support mechanisms are intended to ensure reasonably
comparable local rates and thereby further one of the most important goals of federal and state regulation
-- the preservation and advancement of universal telephone service. This section of the report outlines the
high-cost support mechanisms and provides data for these mechanisms. Until recently, the high-cost
support mechanisms included high-cost loop support (HCLS),13 safety net additive support (SNAS),
safety valve support (SVS), interstate common line support (ICLS),14 which generally went to rate-of-
return carriers,15 forward-looking non-rural high-cost model support (HCMS), interstate access support
(IAS) for price-cap carriers, and local switching support (LSS) for carriers that serve study areas with
50,000 or fewer access lines.

On October 27, 2011, the Commission adopted the USF/ICC Transformation Order, which
comprehensively reformed and modernized the universal service and intercarrier compensation systems,
creating a new Connect America Fund to ensure that robust voice and broadband services are available to
Americans throughout the nation.16 Among other things, the Commission eliminated certain high-cost
support mechanisms, modified others, and established a new framework for distributing high-cost funding
in the most efficient and technologically neutral manner possible, through market-based mechanisms such
as competitive bidding. Some reforms took effect for support in 2012, while others will be implemented
in 2013 or later. Accordingly, some data available in 2012 reflect the effect of reforms, but data
reflecting the full effect of the reforms will not be available until later years. In January 2012, two
transitional mechanisms were introduced for price cap carriers and their rate-of-return affiliates: frozen
high-cost support, which replaced the existing support mechanisms for those carriers, and incremental
support, which provides additional support for those carriers that elect to receive it to extend broadband-
capable networks in unserved areas. In July 2012, the Connect America Fund intercarrier compensation
(CAF-ICC) mechanism was introduced. Further description of these transitional mechanisms can be
found in the program description of the high-cost support program at
www.fcc.gov/wcb/iatd/monitor.html.

13
This was formerly referred to as the Universal Service Fund, and still bears that name in the Commission
rules. It is now referred to as high-cost loop support to avoid confusion with the universal service support
mechanisms that the Commission developed to implement the 1996 Act. See 47 C.F.R. § 36.601. See also
47 C.F.R. Part 54.
14
Effective July 1, 2004, long term support (LTS) was merged into ICLS. Any LTS amounts reported in
subsequent years are out-of-year adjustments for prior payments. Such adjustments occurred for ILECs
only in 2005, but continued for some CETCs through 2008.

15
A number of mid-sized carriers elected to convert to price-cap regulation in recent years and received ICLS
that was frozen at a per-line amount. See, e.g., Windstream Petition for Conversion to Price Cap
Regulation and for Limited Waiver Relief
, WC Docket No. 07-171, Order, 23 FCC Rcd 5294 (2008).

16
See generally Connect America Fund; A National Broadband Plan for Our Future; Establishing Just and
Reasonable Rates for Local Exchange Carriers; High-Cost Universal Service Support; Developing a
Unified Intercarrier Compensation Regime; Federal-State Joint Board on Universal Service; Lifeline and
Link-Up; Universal Service Reform—Mobility Fund
; WC Docket Nos. 10-90, 07-135, 05-337, 03-109, CC
Docket Nos. 01-92, 96-45, GN Docket No. 09-51, WT Docket No. 10-208, Report and Order and Further
Notice of Proposed Rulemaking, FCC 11-161 (rel. Nov. 18, 2011) (USF/ICC Transformation Order and
FNPRM
).
2 - 12



High-Cost Disbursements

Table 2.10 summarizes the annual disbursements17 for the high-cost support mechanisms from
2003 through 2012. 18 The table is based on information provided by the Universal Service
Administrative Company (USAC). The values in Table 2.10 are the amounts disbursed in each year. For
each year, the values include prior period adjustments disbursed in that year in support of these
mechanisms for prior years. Chart 2.3 plots the total annual disbursements since 2003. Chart 2.3 and all
subsequent high-cost bar charts also include reserve fund dollars for 2010 through 2012; the high-cost
tables do not include these reserves. 19 Representing over 40% of total support in 2012, frozen high-cost
support has become the largest high-cost support mechanism. The mechanisms in place prior to 2012 are
estimated to show substantial percentage drops in disbursements from 2011, notably ICLS (43%), HCLS
(31%), LSS (71%), and SNAS (56%). HCMS and IAS disbursements apart from true-ups stopped in
2012. Only SVS disbursements displayed an estimated increase, consistent with the trend since 2008.
Incremental support represented about 3% of all disbursements. CAF-ICC represented 5% of all
disbursements; CAF-ICC was initiated midway through 2012. LSS was eliminated in July 2012 as a
result of its incorporation into CAF-ICC at that time, resulting in a substantial reduction of LSS
disbursements in 2012. 20

Table 2.11 compares the annual amounts of support received by ILECs and by CETCs for each
support mechanism. Chart 2.4 shows the total disbursement to ILECs and CETCs since 2003. Over 90%
of CETC disbursements in 2012 are estimated to be from frozen high cost support. Historically, most
CETC disbursements were in areas served by price cap carriers and their rate-of-return affiliates. Table
2.11 shows that about 65% of the total decline in HCLS and ICLS in 2012 was due to CETCs receiving
frozen support instead of HCLS and ICLS. HCLS and ICLS disbursements to CETCs in 2012 were less
than 10% of those in 2011. The decline in ICLS for ILECs in 2012 is due to price cap ILECs and their
rate-of-return affiliates receiving frozen support instead of ICLS. Similarly, over 75% of the reduction in
HCLS for ILECs in 2012 was due to price cap carriers and their rate-of-return affiliates receiving frozen
support instead of HCLS.

Table 2.12 lists high-cost disbursements by mechanism within each state in 2011. Chart 2.5 is a
map of total high-cost disbursements within each state for 2011. Texas received the most disbursements
in 2011 ($247 million); its support was primarily in the HCLS mechanism ($113 million, the most of any
state and more than the total support of all but eight other states). Mississippi received almost as much in

17
A “disbursement” is the distribution of funds in a specified time period. These funds were distributed in
support of high-cost mechanisms in that period and possibly in support of earlier time periods. The
disbursements in support of earlier time periods are the result of true-ups to resolve differences between
initial payments and disbursements necessitated by revisions to supporting data. It is possible for
disbursements to be negative
, thus requiring the recipient to return dollars to the high-cost fund.

18
Disbursements for 2012 were extrapolated based on disbursements from January through August. In prior
reports, this extrapolation was performed using a linear multiplier of all disbursements in those months.
Because of changes in the funding process in July 2012, a different extrapolation calculation was used in
this report. The table values for annual disbursements for 2012 are the sum of disbursements in the first
half of 2012 added to 3 times the disbursements made in July and August 2012. The same calculation
process was used for claim values in 2012.

19
The reserve funds are described in Table 1.10.

20
CETCs in Remote Alaska and Standing Rock continued to receive a deferred phase down of LSS in the
second half of 2012.

2 - 13



disbursements as Texas ($246 million); over 70% of the support was in HCMS ($188 million, more than
60% of all HCMS and more than the total support of all but three other states). Alaska ($203 million),
Kansas ($191 million), and Puerto Rico (($165 million) were third, fourth, and fifth respectively in total
disbursements. Puerto Rico and Alaska were the leading recipients of disbursements for ICLS; all of
Puerto Rico’s disbursements were for ICLS while Alaska received disbursements of $97 million for
ICLS. Alaska was also the leading recipient of LSS ($27 million). Over half of Kansas support was for
HCLS ($99 million), the most of any other state aside from Texas. No other state or jurisdiction received
more than $150 million dollars in disbursements.

Table 2.13 lists total high-cost disbursements received by the top 10 affiliated entity recipients
from 2009 through 2011. As a whole, these affiliated entities received 49% of disbursements in this time
period. Verizon led all affiliated entities in disbursements in 2009, but a continual drop in its
disbursements has moved AT&T to the top in 2010 and 2011.

Table 2.14 provides a breakdown by mechanism of disbursements to affiliated entities for 2011 as well as
an analysis of disbursements per supported line for affiliated entities. As a group, these 25 affiliated
entities accounted for 94% of all supported lines, but only 54% of all disbursements. AT&T and Verizon
had the most supported lines in 2011; together they accounted for 53% of supported lines with only 16%
of total disbursements. Disbursements per supported line are highly variable; among these 25 affiliated
entities, they range from over $10,000 per line (Sandwich Isles Communications) to less than $10 per line
(Qwest and Sprint Nextel, Verizon Communications, and Deutsche Telekom AG). AT&T received the
most disbursements for HCMS ($153 million). Century Link received the most disbursements for IAS
($128 million) and HCLS ($75 million). Telephone and Data Systems received the most disbursements
for ICLS ($124 million). Table 2.15 lists the 26 study areas with monthly disbursements per supported
line exceeding $250 in 2011.

High-Cost Claims

High-cost claims21 are strongly correlated with disbursements. The difference is their relation to
time. Disbursement dollars are aligned with the time that funds are distributed to the recipients. Claim
dollars are aligned with the time period that the funds support. While disbursement dollars for a time
period do not change in subsequent reports, it is possible for claim dollars in a time period to change
because of subsequent true-ups especially in more recent years.22

Tables 2.16 through 2.18 and Charts 2.6 and 2.7 are claims versions of Tables 2.10 through 2.12
and Charts 2.3 and 2.4. In general, the differences between the claims and disbursements views are
minor. Table 2.16 shows a steady decrease in total claim dollars (to date) since 2009; however, Chart 2.6

21
A “claim” is the distribution of funds in support of a specified time period. These funds were distributed in
that period and possibly a later time period. The disbursements in later time periods are the result of true-
ups to resolve differences between initial payments and disbursements necessitated by revisions to
supporting data made at that later date. Claims are always positive values. The claim data used in this
report does not include true-ups for 2011 and 2012.

22
Example: In December 2009, D dollars were distributed to a recipient; of these D dollars, DP dollars were
distributed in support of lines in December 2009 (initial payment) and DT dollars were distributed in
support of lines in November 2009 (true-up). In January 2010, J dollars were distributed to the recipient; of
these J dollars, JP dollars were distributed in support of lines in January 2010 (initial payment) and JT
dollars were distributed in support of lines in December 2009 (true-up). Disbursement dollars for
December 2009 and January 2010 were D and J dollars respectively. Claim dollars for December 2009 and
January 2010 were DP + JT and JP dollars respectively (assuming no future true-ups for December 2009 and
January 2010).
2 - 14



shows a steady increase from 2009 when the reserve is included. Table 2.17 and Chart 2.7 show that
ILEC claim dollars (to date) are expected to increase in 2012 after staying virtually constant since 2009
while CETC claim dollars are expected to continue their decrease since 2009.

Table 2.18 lists high-cost claims within each state in 2011. Mississippi had the highest claims in
2011 ($256 million) with over 70% for HCMS ($181 million, the most of any state). Texas had claims
almost as high as Mississippi ($249 million), but its support was primarily in the HCLS mechanism ($112
million, the most of any state). Alaska had the third highest total claims among states in 2011 ($216
million) with almost half for ICLS ($104 million). Kansas ($198 million), Puerto Rico ($173 million),
and Oklahoma ($152 million) were fourth fifth, and sixth respectively in total claims. No other state or
jurisdiction had more than $150 million dollars in claims.

Additional data on the high-cost program have been posted at
www.fcc.gov/wcb/iatd/monitor.html. These data include 1) high-cost disbursement and claims by
mechanism, study area, and state, 2) ILEC support data by study area and state, 3) changes in local
exchange carriers, and 4) nationwide pool results provided by National Exchange Carrier Association,
Inc. (NECA). The website also contains further details about the history and operation of the high-cost
program.



2 - 15


Table 2.10

High-Cost Support Fund Disbursement History

(in Millions)

Interstate

Connect

High-Cost Safety Net

Safety

High-Cost

Common

Interstate

Local

Frozen

America Fund

Year

Loop

Additive

Valve

Model

Long-Term

Line

Access

Switching High-Cost Incremental

Intercarrier

Total

Support

Support

Support

Support

Support

Support

Support

Support

Support

Support

Compensation

Support

2003
$1,085
$9
$0
$234
$504
$399
$622
$420
$0
$0
$0
$3,273
2004
1,137
12
0
273
275
727
642
422
0
0
0
3,488
2005
1,219
15
4
292
0
1,178
691
425
0
0
0
3,824
2006
1,309
29
1
358
4
1,266
681
448
0
0
0
4,096
2007
1,402
38
3
346
0
1,392
645
460
0
0
0
4,287
2008
1,457
48
2
351
0
1,621
585
416
0
0
0
4,478
2009
1,424
53
5
331
0
1,537
563
381
0
0
0
4,292
2010
1,297
76
6
310
0
1,675
545
359
0
0
0
4,268
2011
1,187
95
8
280
0
1,609
522
330
0
0
0
4,031
2012*
818
42
9
1
0
921
-8
95
1,920
115
214
4,127
Note: Detail may not appear to add to totals due to rounding.


* Estimate for 2012 extrapolated from payments through August 2012.
Source: Universal Service Administrative Company.

Chart 2.3

Total High-Cost Support Fund Disbursements and Reserve

$5,000
$4,500
$4,000
$3,500

rs
l
a
$3,000
Dol
$2,500
s of
n
$2,000
l
lio
Mi
$1,500
$1,000
$500
$0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Reserve
$108
$398
$562
Total
$3,273
$3,488
$3,824
$4,096
$4,287
$4,478
$4,292
$4,268
$4,031
$4,127
Source: Universal Service Administrative Company.
2 - 16

Table 2.11

High-Cost Support Fund Disbursement History - ILECs and CETCs

(in Millions)

Interstate

Connect

High-Cost

Safety Net

High-Cost

Common

Interstate

Local

Frozen High-

America Fund

Year

Companies

Loop

Additive

Safety Valve

Model

Long-Term

Line

Access

Switching

Cost

Incremental

Intercarrier

Total

Support

Support

Support

Support

Support

Support

Support

Support

Support

Support

Compensation

Support

ILECs
$1,058.2
$8.8
$0.0
$207.2
$479.1
$382.0
$604.9
$401.6
$0.0
$0.0
$0.0
$3,141.8
2003
CETCs
26.5
0.3
0.0
26.8
25.0
17.4
16.9
18.5
0.0
0.0
0.0
131.4
Total
1,084.6
9.1
0.0
234.0
504.1
399.4
621.7
420.2
0.0
0.0
0.0
3,273.2
ILECs
1,055.4
10.5
0.0
218.9
243.8
645.0
596.0
384.8
0.0
0.0
0.0
3,154.5
2004
CETCs
81.3
1.1
0.0
54.5
31.0
82.0
45.7
37.5
0.0
0.0
0.0
333.1
Total
1,136.6
11.6
0.0
273.4
274.8
727.1
641.7
422.3
0.0
0.0
0.0
3,487.6
ILECs
1,052.1
12.3
3.8
221.3
0.0
953.9
581.9
360.4
0.0
0.0
0.0
3,185.7
2005
CETCs
166.8
2.9
0.6
70.6
-0.2
224.4
109.1
64.4
0.0
0.0
0.0
638.5
Total
1,218.9
15.2
4.4
291.8
-0.2
1,178.3
691.0
424.8
0.0
0.0
0.0
3,824.2
ILECs
1,046.0
24.3
0.3
207.8
0.0
941.9
540.4
355.7
0.0
0.0
0.0
3,116.4
2006
CETCs
263.0
5.1
0.4
149.7
4.5
323.9
140.8
92.5
0.0
0.0
0.0
979.9
Total
1,309.0
29.4
0.7
357.5
4.5
1,265.8
681.2
448.2
0.0
0.0
0.0
4,096.3
ILECs
1,049.8
27.6
1.9
197.6
0.0
979.8
504.1
347.4
0.0
0.0
0.0
3,108.2
2007
CETCs
352.7
10.9
1.1
148.6
0.0
412.1
140.9
112.3
0.0
0.0
0.0
1,178.5
Total
1,402.5
38.5
3.0
346.3
0.0
1,391.9
645.0
459.7
0.0
0.0
0.0
4,286.7
ILECs
1,034.3
34.1
1.5
185.1
0.0
1,063.4
473.3
301.6
0.0
0.0
0.0
3,093.3
2008
CETCs
422.2
13.4
0.3
165.5
0.1
557.2
111.3
114.4
0.0
0.0
0.0
1,384.5
Total
1,456.6
47.5
1.8
350.6
0.1
1,620.6
584.6
415.9
0.0
0.0
0.0
4,477.8
ILECs
1,006.5
38.2
4.9
169.0
0.0
1,066.1
456.3
277.2
0.0
0.0
0.0
3,018.2
2009
CETCs
417.6
14.4
0.1
161.6
0.0
470.6
106.3
103.5
0.0
0.0
0.0
1,273.9
Total
1,424.1
52.5
5.0
330.6
0.0
1,536.6
562.6
380.7
0.0
0.0
0.0
4,292.2
ILECs
959.8
58.9
4.9
156.7
0.0
1,141.4
457.6
275.8
0.0
0.0
0.0
3,055.1
2010
CETCs
336.8
17.1
1.3
153.1
0.0
533.2
87.8
83.4
0.0
0.0
0.0
1,212.7
Total
1,296.6
76.0
6.1
309.8
0.0
1,674.6
545.4
359.2
0.0
0.0
0.0
4,267.7
ILECs
909.0
75.5
5.9
144.5
0.0
1,129.4
439.6
254.5
0.0
0.0
0.0
2,958.3
2011
CETCs
278.1
19.8
2.3
135.5
0.0
479.7
82.2
75.3
0.0
0.0
0.0
1,072.9
Total
1,187.2
95.3
8.1
280.0
0.0
1,609.1
521.8
329.8
0.0
0.0
0.0
4,031.3
ILECs
784.0
41.5
8.3
0.1
0.0
888.8
-8.4
90.2
1,034.4
114.8
214.3
3,168.0
2012*
CETCs
34.3
0.7
0.4
0.8
0.0
32.2
0.6
5.1
885.2
0.0
0.0
959.3
Total
818.3
42.2
8.7
0.8
0.0
921.0
-7.8
95.4
1,919.6
114.8
214.3
4,127.4
Note: Details may not appear to add to totals due to rounding. ILECs are incumbent local exchange carriers. CETCs are competitive eligible telecommunications carriers.
* Estimate for 2012 extrapolated from payments through August 2012.
Source: Universal Service Administrative Company.

Chart 2.4

Total High-Cost Support Fund Disbursements (ILECs and CETCs) and Reserve

(in Millions)
$3,500
rs)
$3,000
$2,500
$2,000
$1,500
ILECs
$1,000
CETCs
$500
Reserve

Support (Millions of Dolla

$0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: Universal Service Administrative Company.
2 - 17

Table 2.12

High-Cost Support Fund Disbursements - by Mechanism and State: 2011

(in Thousands)

Interstate

High-Cost Safety Net

Safety

High-Cost Common

Interstate

Local

Loop

Additive

Valve

Model

Line

Access

Switching

Total

State

Support

Support

Support

Support

Support

Support

Support

Support

Alabama
$14,479
$1,643
$0
$31,917
$20,468
$16,743
$5,091
$90,341
Alaska
77,579
1,331
0
0
96,648
0
26,959
202,518
American Samoa
4
0
0
0
1,225
0
585
1,813
Arizona
29,452
950
0
0
17,036
15,415
8,439
71,292
Arkansas
36,522
599
0
0
45,914
243
6,203
89,481
California
23,994
710
0
0
26,949
35,101
3,834
90,587
Colorado
26,605
606
0
0
22,175
17,128
4,477
70,990
Connecticut
0
0
0
0
0
453
0
453
Delaware
0
0
0
0
0
221
0
221
District of Columbia
0
0
0
0
0
0
0
0
Florida
3,806
106
0
0
9,826
38,258
2,712
54,708
Georgia
30,969
4,537
0
0
49,077
17,422
9,267
111,272
Guam
886
0
0
0
18,103
0
1,048
20,037
Hawaii
33,801
0
0
0
21,486
2,332
3,353
60,971
Idaho
19,323
158
0
0
13,700
10,843
5,637
49,662
Illinois
17,893
522
0
0
30,258
9,297
7,162
65,133
Indiana
28,622
2,980
0
0
27,655
14,331
4,828
78,417
Iowa
36,382
4,651
180
0
60,878
7,873
19,941
129,905
Kansas
99,457
1,651
7,789
0
67,838
5,634
8,311
190,681
Kentucky
28,652
4,230
0
14,350
32,654
15,858
5,423
101,168
Louisiana
60,490
1,743
0
0
36,067
12,235
3,925
114,460
Maine
3,352
756
0
1,639
17,508
18
6,731
30,004
Maryland
5
0
0
0
824
2,247
274
3,351
Massachusetts
1
40
0
0
166
1,435
446
2,088
Michigan
12,182
1,009
0
0
21,276
379
7,265
42,111
Minnesota
28,300
4,464
82
0
50,992
2,353
12,692
98,883
Mississippi
26,330
1,090
0
173,672
19,187
22,483
2,912
245,674
Missouri
44,793
1,857
0
0
36,671
10,264
4,480
98,065
Montana
35,401
1,934
0
10,447
33,562
716
5,958
88,018
Nebraska
31,300
702
0
5,906
32,499
6,146
13,796
90,350
Nevada
4,390
1,312
0
0
4,266
7,211
3,462
20,640
New Hampshire
49
380
0
0
4,447
1,429
3,076
9,381
New Jersey
0
1
0
0
428
253
819
1,501
New Mexico
36,803
1,438
0
0
26,054
9,140
8,434
81,869
New York
3,325
2,289
0
0
13,569
11,703
10,829
41,715
North Carolina
6,237
309
0
0
34,195
22,623
5,106
68,469
North Dakota
31,773
9,977
1
0
44,900
616
9,720
96,987
Northern Mariana Islands
0
0
0
0
0
259
2,646
2,905
Ohio
8,070
210
0
0
12,630
9,111
2,937
32,959
Oklahoma
59,831
9,544
0
0
56,765
3,789
14,514
144,443
Oregon
25,609
936
0
0
28,370
15,500
5,528
75,941
Pennsylvania
847
113
0
0
40,786
18,028
6,471
66,245
Puerto Rico
0
0
0
0
165,376
0
0
165,376
Rhode Island
0
0
0
0
0
29
0
29
South Carolina
34,638
9,489
0
0
51,084
8,541
7,978
111,731
South Dakota
27,981
3,199
66
1,218
27,076
69
5,248
64,856
Tennessee
12,020
5,810
0
0
32,107
8,469
5,001
63,407
Texas
112,631
4,288
0
0
81,549
35,049
13,496
247,012
Utah
5,370
294
16
0
11,394
1,975
3,242
22,290
Vermont
1,595
-2
0
5,525
5,762
1,863
3,554
18,298
Virgin Islands
3,744
0
0
0
15,200
0
0
18,944
Virginia
2,407
441
0
0
10,153
52,954
3,547
69,503
Washington
12,967
191
0
0
37,110
24,087
6,745
81,100
West Virginia
1,560
43
0
26,267
3,638
19,798
1,731
53,037
Wisconsin
33,572
6,327
-5
0
76,427
102
19,806
136,230
Wyoming
11,156
455
0
9,014
15,143
3,790
4,189
43,746
Total
$1,187,157
$95,315
$8,128
$279,956 $1,609,072
$521,812
$329,828 $4,031,268
Source: Universal Service Administrative Company.
2 - 18

Chart 2.5

Total High-Cost Support Fund Disbursements - by State: 2011

Note: Gray indicates a state or jurisdiction with zero or negative disbursements.
Source: Universal Service Administrative Company.
2-19

Table 2.13

Annual High-Cost Payments by Year-End Affiliated Entity: 2009-2011

CETC Share of

Rank Affiliated Entity Name 1

2009
2010
2011

Total

3 -Year Total 2
1
AT&T Inc.
$435,421,362 $473,158,310 $418,943,049 $1,327,522,721
58.8%
2
Verizon Communications Inc. 3, 4
679,881,325
359,758,095
216,126,405
1,255,765,825
65.0
3
CenturyLink, Inc. 5
351,860,073
303,991,570
345,604,713
1,001,456,356
0.0
4
Telephone and Data Systems, Inc.
236,140,788
235,942,687
248,772,943
720,856,418
63.9
5
Frontier Communications Corporation 4
70,029,154
155,930,004
151,268,270
377,227,428
0.0
6
Windstream Corporation
110,335,446
114,626,457
94,590,699
319,552,602
0.1
7
Telapex, Inc. 6
77,227,146
78,765,128
83,899,889
239,892,163
91.0
8
América Móvil
28,341,587
92,006,490
80,737,851
201,085,928
53.3
9
Alaska Communications Systems Holdings, Inc.
45,629,130
55,952,788
41,929,021
143,510,939
52.9
10
Qwest Communications International, Inc. 5
66,519,241
66,566,906
-
133,086,147
0.0
11
FairPoint Communications, Inc.
48,389,394
42,090,134
39,988,208
130,467,736
0.0
12
Sprint Nextel Corporation 3
49,962,331
46,861,658
29,216,245
126,040,234
100.0
13
Rural Telephone Service Company, Inc.
40,236,855
40,679,869
45,049,551
125,966,275
40.6
14
General Communication, Inc.
14,984,868
46,787,378
51,432,111
113,204,357
90.1
1 Affiliated entities include all commonly-controlled or commonly-owned affiliates. Affiliated entities appear on this list if they are in the top ten for
any of the presented years.
2 In the USF/ICC Transformation Order , the Commission eliminated the rule providing identical support to competitive ETCs, determining the rule
did not provide an "appropriate level of support for the efficient deployment of mobile services in areas that do not support a private business case for
mobile voice and broadband." Connect America Fund et al. , WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed
Rulemaking, 26 FCC Rcd 17666, 17851-59, para. 502 (2011), pets. for review pending sub nom. In re: FCC 11-161, No. 11-9900 (10th Cir. Filed
Dec. 8, 2011). The Commission, however, transitioned the elimination of that support over five years, beginning on July 1, 2012. See USF/ICC
Transformation Order
, 26 FCC Rcd at 17853, para. 513.
3 Verizon Wireless and Sprint Nextel, in separate transactions in 2008, each committed to phase down their CETC high-cost universal service support
in 20 percent increments over five years, beginning in 2009. These commitments were not implemented until the Commission released an Order on
August 31, 2010 providing guidance to the Universal Service Administrative Company regarding the methodology to achieve those commitments.
High-Cost Universal Service Support, Federal-State Joint Board on Universal Service, Request for Review of Decision of Universal Service
Administrator by Corr Wireless Communications, LLC,
WC Docket No. 05-337, CC Docket No. 96-45, Order and Notice of Proposed Rulemaking,
25 FCC Rcd 12854 (2010). To the extent that Verizon Wireless received support prior to the August 31, 2010 Order that should have been
surrendered under its commitment, USAC reclaimed that support in 2010 and 2011.
4 Frontier Communications purchased study areas in 14 states from Verizon Communications on July 1, 2010.
5 CenturyTel, Inc. offically changed their name to CenturyLink, Inc. on May 20, 2010. See http://news.centurylink.com/index.php?s=43&item=2313.
CenturyLink merged with Qwest on April 1, 2011. See http://news.centurylink.com/index.php?s=43&item=2226.
6 Telapex, Inc. owns Cellular South.
Source: Universal Service Administrative Company.
2-20

Table 2.14

High-Cost Support Fund Disbursements by Affiliated Entity1: 2011

High-Cost

Safety Net

Safety

High-Cost

Interstate

Interstate

Local

Total

Loop

Additive

Valve

Model

Common Line

Access

Switching

Total

Supported Support

Rank Affiliated Entity Name

Support

Support

Support

Support

Support

Support

Support

Support

Lines

per Line
(in Thousands)
1
AT&T Inc.
$41,116
$3,520
-$9
$153,033
$98,528
$112,929
$9,826
$418,943
33,536
$12.49
2
CenturyLink, Inc.
74,765
931
2
29,868
93,484
127,738
18,817
345,605
14,022
24.65
3
Telephone and Data Systems, Inc.
61,037
12,644
235
4,330
123,867
14,722
31,939
248,773
4,387
56.71
4
Verizon Communications Inc.
38,109
4,445
957
2,396
50,450
111,069
8,699
216,126
29,867
7.24
5
Frontier Communications Corporation
1,399
1,911
0
16,164
23,285
92,877
15,632
151,268
5,269
28.71
6
Windstream Corporation
5,438
7,453
0
5,852
49,124
16,738
9,986
94,591
3,050
31.01
7
Telapex, Inc.
16,701
415
0
48,228
12,262
5,009
1,286
83,900
802
104.59
8
América Móvil
0
0
0
0
80,738
0
0
80,738
1,605
50.30
9
General Communication, Inc.
16,059
172
0
0
27,269
0
7,933
51,432
279
184.43
10
Rural Telephone Service Company, Inc.
23,932
311
4,317
0
16,144
188
157
45,050
72
626.96
11
Alaska Communications Systems Holdings, Inc.
11,346
158
0
0
24,788
0
5,637
41,929
291
144.22
12
FairPoint Communications, Inc.
6,485
408
0
6,625
18,732
3,245
4,494
39,988
1,222
32.72
13
Deutsche Telekom AG
2,680
694
0
203
27,167
6,799
965
38,507
4,145
9.29
14
American Broadband Communications et al.
16,900
148
0
72
10,481
133
5,232
32,966
52
630.08
15
Sprint Nextel Corporation
3,404
80
0
3,372
10,052
11,050
1,259
29,216
12,610
2.32
16
Farmers Telephone Cooperative, Inc.
14,321
810
0
0
13,176
0
847
29,154
76
385.96
17
Coral Wireless, LLC
15,968
0
0
0
11,030
59
1,582
28,640
56
506.91
18
EATEL Corp., Inc.
16,705
706
0
0
10,763
0
421
28,595
43
662.21
19
Consolidated Communications, Inc.
6,370
0
0
0
17,772
0
1,346
25,488
229
111.11
20
Sandwich Isles Communications, Inc.
15,071
0
0
0
8,564
0
1,473
25,108
2 10,705.76
21
Smithville Holding Company, Inc.
12,068
1,517
0
0
10,401
0
300
24,286
26
933.36
22
Matanuska Telephone Association, Inc.
12,021
0
0
0
11,045
0
1,041
24,107
62
387.93
23
Valley Telephone Cooperative, Inc.
13,032
389
0
0
7,062
54
1,623
22,161
14
1,578.26
24
Big Bend Telephone Co., Inc.
13,277
118
0
0
5,557
0
1,401
20,353
6
3,622.73
25
Golden West Telecommunications Cooperative, Inc.
9,904
1,458
0
0
7,840
0
972
20,174
38
526.77
Other Carriers
739,051
57,028
2,625
9,813
839,492
19,201
196,960
1,864,171
7,255
256.96

Total
1,187,157
95,315
8,128
279,956
1,609,072
521,812
329,828
4,031,268
119,017
33.87
1 Affiliated Entities include all commonly-controlled or commonly-owned affiliates.
Source: Universal Service Administrative Company.
2 - 21

Table 2.15

Study Areas that Received $250 Per Month or More in Per-Line High-Cost Support : 2011


Supported

Annual Support

Rank Incumbent ETC

State

Holding Company1

Support2

Lines3

per Line
1
BEAVER CREEK TELEPHONE COMPANY
Washington
May, Bott et al.
$537,546
29
$18,861
2
ADAK TEL UTILITY
Alaska
Adak Eagle Enterprises, LLC
2,678,285
151
17,796
3
BORDER TO BORDER
Texas
Border to Border Communications, Inc.
1,474,885
91
16,208
4
WESTGATE COMMUNICATIONS LLC D/B/A WEAVTEL
Washington
Westgate Communications LLC
294,060
19
15,477
5
SANDWICH ISLES COMM.
Hawaii
Sandwich Isles Communications, Inc.
25,107,678
2,345
10,706
6
ALLBAND COMMUNICATIONS COOPERATIVE
Michigan
Allband Communications Cooperative
1,427,412
134
10,652
7
ACCIPITER COMM.
Arizona
Accipiter Communications, Inc.
3,374,538
406
8,312
8
TERRAL TEL CO
Oklahoma
Terral Telephone Company
1,875,222
237
7,912
9
DELL TEL. CO-OP - TX
Texas
Dell Telephone Cooperative, Inc.
5,341,676
796
6,711
10
SOUTH PARK TEL. CO.
Colorado
American Broadband Communications et al.
1,090,902
173
6,306
11
S. CENTRAL TEL - OK
Oklahoma
South Central Telephone Association, Inc.
1,576,008
295
5,342
12
PINE TEL SYSTEM INC.
Oregon
Pine Communications, LLC
4,378,464
962
4,550
13
SUMMIT TEL & TEL -AK
Alaska
Remote Control, Inc.
1,040,472
263
3,956
14
AGATE MUTUAL TEL CO
Colorado
Agate Mutual Telephone Cooperative Association
459,060
116
3,949
15
MUTUAL TEL CO
Kansas
Mutual Telephone Company (KS)
1,727,661
446
3,874
16
LA HARPE TEL CO INC
Kansas
LaHarpe Telephone Company, Inc.
1,253,121
335
3,746
17
BEEHIVE TEL CO - UT
Utah
Beehive Telephone Companies
3,416,200
919
3,717
18
BIG BEND TEL CO INC
Texas
Big Bend Telephone Co., Inc.
20,353,401
5,618
3,623
19
BEEHIVE TEL CO - NV
Nevada
Beehive Telephone Companies
450,744
129
3,494
20
NORTH STATE TEL CO.
Oregon
May, Bott et al.
1,599,962
487
3,285
21
SACRED WIND
New Mexico
Sacred Wind Communications, Inc.
7,596,588
2,385
3,185
22
ST JOHN TEL CO
Washington
St. John Telephone Company
1,908,342
601
3,175
23
BACA VALLEY TEL CO
New Mexico
Baca Valley Telephone Company, Inc.
2,155,101
682
3,160
24
MIDVALE-AZ
Arizona
Midvale Telephone Exchange
3,954,642
1,275
3,102
25
PINNACLES TEL CO
California
Bryan Family Inc.
792,990
257
3,086
26
MESCALERO APACHE
New Mexico
Mescalero Apache Telecom, Inc.
3,589,215
1,179
3,046
1 Holding company name indicates common control/common ownership of carriers.
2 Calendar year disbursements include prior period adjustments.
3 Supported lines is the number of lines in service that are receiving support, not the number of homes in the study area. Supported Lines is the average of the quarterly supported line figures.
Source: Universal Service Administrative Company.
2 - 22

Table 2.16

High-Cost Support Fund Claim History

(in Millions)

Interstate

Connect

Year

High-Cost Safety Net

Safety

High-Cost Common

Interstate

Local

Frozen

America Fund

Loop

Additive

Valve

Model

Line

Access

Switching High-Cost Incremental

Intercarrier

Total

Support

Support

Support

Support

Support

Support

Support

Support

Support

Compensation

Support

2009
$1,398
$51
$5
$329
$1,594
$566
$389
$0
$0
$0
$4,332
2010
1,317
77
7
311
1,640
549
383
0
0
0
4,283
2011*
1,218
95
8
290
1,656
537
381
0
0
0
4,186
2012**
825
42
6
0
927
0
125
1,925
115
214
4,180
Notes: Detail may not appear to add to totals due to rounding.
* Initial claims for 2011 without true-ups.
** Estimate for 2012 extrapolated from claims through August 2012.
Source: Universal Service Administrative Company.

Chart 2.6

Total High-Cost Support Fund Claims and Reserve

$5,000
$4,500
$4,000
$3,500

r
s
$3,000
lla
f
Do
$2,500
o
s
n
$2,000
illio
M
$1,500
$1,000
$500
$0
2009
2010
2011
2012
Reserve
$108
$398
$562
Total
$4,332
$4,283
$4,186
$4,180
Source: Universal Service Administrative Company.
2 - 23

Table 2.17

High-Cost Support Fund Claim History - ILECs and CETCs

(in Millions)

Interstate

Connect

Year

Companies

High-Cost

Safety Net

High-Cost

Common

Interstate

Local

Frozen High-

America Fund

Loop

Additive

Safety Valve

Model

Line

Access

Switching

Cost

Incremental

Intercarrier

Total

Support

Support

Support

Support

Support

Support

Support

Support

Support

Compensation

Support

ILECs
$1,007.3
$37.7
$4.9
$169.3
$1,069.4
$456.1
$288.4
$0.0
$0.0
$0.0
$3,033.0
2009
CETCs
390.6
13.6
0.5
159.4
524.2
109.9
100.3
0.0
0.0
0.0
1,298.5
Total
1,397.9
51.4
5.3
328.6
1,593.6
565.9
388.7
0.0
0.0
0.0
4,331.5
ILECs
961.5
60.0
5.7
155.8
1,116.1
455.2
287.3
0.0
0.0
0.0
3,041.6
2010
CETCs
355.3
17.0
1.2
154.9
523.9
94.2
95.2
0.0
0.0
0.0
1,241.6
Total
1,316.8
77.1
6.9
310.6
1,639.9
549.4
382.6
0.0
0.0
0.0
4,283.3
ILECs
909.1
75.1
5.5
144.5
1,137.7
457.2
289.0
0.0
0.0
0.0
3,017.9
2011*
CETCs
309.3
20.0
2.3
146.0
518.3
79.5
92.4
0.0
0.0
0.0
1,167.9
Total
1,218.4
95.1
7.8
290.5
1,656.0
536.7
381.4
0.0
0.0
0.0
4,185.8
ILECs
793.0
41.4
6.2
0.0
891.7
0.0
114.0
1,034.4
114.8
214.3
3,209.7
2012**
CETCs
32.5
0.5
0.0
0.0
35.3
0.0
11.3
890.7
0.0
0.0
970.3
Total
825.5
41.9
6.2
0.0
927.0
0.0
125.4
1,925.1
114.8
214.3
4,180.0
Notes: Details may not appear to add to totals due to rounding. ILECs are incumbent local exchange carriers.
CETCs are competitive eligible telecommunications carriers.
* Initial claims for 2011 without true-ups.
** Estimate for 2012 extrapolated from claims through August 2012.
Source: Universal Service Administrative Company.

Chart 2.7

Total High-Cost Support Fund Claims (ILECs and CETCs) and Reserve

$3,500
)

r
s

$3,000
l
a

$2,500
dol
of
n

$2,000
i
l
l
i
os

ILECs
$1,500
m
t
(

CETCs
$1,000
Reserve
uppor
$500

S

$0
2009
2010
2011
2012
Source: Universal Service Administrative Company.
2 - 24

Table 2.18

High-Cost Support Fund Claims - by Mechanism and State: 2011

(Thousands of Dollars)

Interstate

High-Cost Safety Net

Safety

High-Cost

Common

Interstate

Local

Loop

Additive

Valve

Model

Line

Access

Switching

Total

State

Support

Support

Support

Support

Support

Support

Support

Support

Alabama
$14,501
$1,625
$0
$32,822
$19,461
$17,108
$5,595
$91,113
Alaska
81,218
1,323
0
0
103,577
0
29,603
215,720
American Samoa
0
0
0
0
2,769
0
1,146
3,915
Arizona
27,395
851
0
0
16,534
14,786
9,006
68,573
Arkansas
42,144
627
0
0
49,874
254
7,239
100,138
California
23,877
695
0
0
28,216
36,583
4,374
93,744
Colorado
26,851
499
0
0
22,578
17,785
4,622
72,335
Connecticut
0
0
0
0
0
476
0
476
Delaware
0
0
0
0
0
234
0
234
District of Columbia
0
0
0
0
0
0
0
0
Florida
3,693
97
0
0
10,229
44,147
3,138
61,304
Georgia
29,265
4,176
0
0
49,593
18,442
11,293
112,770
Guam
0
0
0
0
14,120
0
934
15,054
Hawaii
35,149
0
0
0
20,309
2,322
2,980
60,760
Idaho
19,253
128
0
0
13,717
11,364
5,437
49,899
Illinois
18,152
534
0
0
31,665
9,010
9,611
68,972
Indiana
28,603
2,992
0
0
27,687
14,859
6,175
80,316
Iowa
36,867
4,530
123
0
61,203
9,534
21,992
134,249
Kansas
102,184
1,805
7,616
0
70,057
5,696
10,945
198,302
Kentucky
29,264
4,253
0
14,568
34,660
15,644
5,289
103,679
Louisiana
64,960
1,780
0
0
39,982
12,061
5,359
124,141
Maine
3,325
767
0
1,646
16,909
14
7,216
29,876
Maryland
0
0
0
0
878
2,353
438
3,669
Massachusetts
0
41
0
0
193
1,498
492
2,225
Michigan
13,165
991
0
0
23,711
430
8,691
46,987
Minnesota
29,393
5,038
0
0
56,179
2,413
14,080
107,103
Mississippi
27,148
1,089
0
181,066
20,625
21,665
4,339
255,931
Missouri
47,618
1,893
0
0
38,907
10,519
5,595
104,532
Montana
35,411
1,908
0
10,950
33,530
728
6,772
89,298
Nebraska
31,934
579
0
7,133
33,848
5,866
15,324
94,683
Nevada
4,621
1,309
0
0
5,362
8,248
4,417
23,956
New Hampshire
40
380
0
0
4,461
1,486
3,448
9,816
New Jersey
0
1
0
0
405
262
845
1,512
New Mexico
36,535
1,312
0
0
24,770
8,261
7,754
78,631
New York
3,317
2,281
0
0
14,130
12,030
13,012
44,770
North Carolina
6,106
304
0
0
35,533
22,927
5,637
70,507
North Dakota
32,763
9,882
0
0
44,577
643
11,759
99,625
Northern Mariana Islands
0
0
0
0
0
119
1,483
1,602
Ohio
8,049
254
0
0
13,455
9,498
3,414
34,670
Oklahoma
60,960
9,575
0
0
59,319
3,733
18,510
152,096
Oregon
25,728
949
0
0
28,713
15,539
7,646
78,574
Pennsylvania
825
87
0
0
39,992
18,799
6,598
66,301
Puerto Rico
0
0
0
0
173,155
0
0
173,155
Rhode Island
0
0
0
0
0
31
0
31
South Carolina
34,884
9,678
0
0
52,849
8,982
8,752
115,146
South Dakota
32,421
3,360
0
1,502
29,871
46
8,507
75,708
Tennessee
11,927
5,852
0
0
31,716
8,846
5,761
64,102
Texas
112,338
4,224
0
0
80,498
35,796
16,060
248,915
Utah
5,336
286
14
0
11,285
1,975
3,971
22,869
Vermont
1,545
26
0
5,554
6,383
1,890
3,705
19,104
Virgin Islands
3,545
0
0
0
11,897
0
0
15,442
Virginia
2,462
455
0
0
10,743
55,054
4,005
72,718
Washington
15,064
196
0
0
38,878
24,154
8,282
86,574
West Virginia
1,898
40
0
26,406
3,561
18,573
2,539
53,018
Wisconsin
34,799
5,985
0
0
77,685
112
22,185
140,766
Wyoming
11,882
440
0
8,816
15,769
3,922
5,380
46,209
Total
$1,218,415
$95,095
$7,753
$290,464 $1,656,015
$536,717
$381,355 $4,185,814
Source: Universal Service Administrative Company.
2 - 25


Schools and Libraries (E-rate) Program

Eligible schools, school districts, libraries, and consortia that include schools and libraries may
receive discounts for eligible services under the schools and libraries universal service support
mechanism, also known as the E-rate program. The discounts range from 20 percent to 90 percent. The
level of the discount is based on the percentage of students in the school or school district that are eligible
for the national school lunch program (or a federally approved alternative mechanism) and location in a
rural area.

On September 28, 2010, the FCC released an order revising the E-rate program to maximize the
utilization of broadband and eliminate rules that no longer serve their intended purpose. The revisions
adopted by the FCC fall into three conceptual categories. First, the FCC enabled schools and libraries to
better serve students, teachers, librarians, and their communities by providing more flexibility to select
and make available the most cost-effective broadband and other communications services. Specifically,
the FCC allowed applicants to lease fiber from the most cost-effective provider, including not-for-profit
entities, so that applicants can choose the services that best meet their needs from a broad set of
competitive options and in the most cost-effective manner available in the marketplace. The FCC also
changed its rules to permit schools to allow community use of E-rate funded services outside of school
hours and support broadband connections to the residential portion of schools that serve students with
special circumstances. Additionally, the FCC established a pilot program to establish best practices to
support off-campus wireless connectivity for portable learning devices outside of regular school or library
operating hours.11 Further, the FCC indexed E-rate’s funding cap of $2.25 billion annually to inflation to
preserve the purchasing power of the E-rate program. As a result, the cap for funding year 2011 was
increased to $2,290,682,250.12 For funding year 2012, the cap was increased to $2,338,786,577.13

Table 2.19 shows commitments and disbursements by funding year since 1998. Table 2.20
summarizes commitments and disbursements by state and by type of applicant for funding years 2009
through 2011. Additional data on the E-rate program have been posted at
www.fcc.gov/wcb/iatd/monitor.html.


11
Schools and Libraries Universal Service Support Mechanism, A National Broadband Plan for our Future,
CC Docket No. 02-6, GN Docket No. 09-51, Sixth Report and Order, FCC 10-175 (rel. Sept. 28, 2010) (Sixth
Report and Order
).

12
See Wireline Competition Bureau Announces E-rate Inflation-based Cap for Funding Year 2011, CC
Docket No. 02-6, Public Notice, DA 11-1345 (rel. Aug. 5, 2011), available at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-11-1345A1.pdf.

13
See Wireline Competition Bureau Announces E-rate Inflation-based Cap for Funding Year 2012, CC
Docket No. 02-6, Public Notice, DA 12-791 (rel. May 18, 2012), available at
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-791A1.pdf


2 - 26

Table 2.19

Schools and Libraries Funding Commitments and Disbursements

by Applicant Type and Service Type

Funding Commitments

(Dollar Amounts in Thousands)
Total
School
Other
Internal
Internet
Year Commitments Libraries
Schools
Districts
Consortia Connections
Access
Telecom
1998
$1,694,765 $65,830 $110,223 $1,285,108 $233,603
$885,852 $134,129 $674,784
1999
2,147,079
66,061
180,580
1,597,757
302,682
1,364,861
148,723
633,496
2000
2,071,912
65,853
110,503
1,685,749
209,807
1,134,093
218,750
719,069
2001
2,185,345
57,824
164,417
1,748,596
214,508
1,183,620
224,794
776,931
2002
2,232,022
60,324
203,552
1,718,210
249,935
1,118,441
253,107
860,473
2003
2,640,303
63,278
200,619
2,114,865
261,541
1,456,530
276,040
907,733
2004
2,193,034
54,303
158,523
1,725,261
254,946
996,431
246,244
950,360
2005
2,133,566
54,385
152,793
1,711,618
214,769
885,426
259,873
988,267
2006
1,986,309
59,790
130,255
1,535,634
260,630
623,276
290,607 1,072,426
2007
2,454,098
60,627
175,116
1,975,075
243,279
959,740
308,903 1,185,454
2008
2,536,888
75,802
148,616
2,051,264
261,205
900,440
338,086 1,298,361
2009
2,858,816
84,127
196,226
2,305,260
273,204
1,145,368
351,918 1,361,531
2010
3,057,164
92,056
211,339
2,454,718
299,051
1,201,060
402,322 1,453,782
2011
2,249,846
93,607
194,754
1,683,449
278,035
423,012
446,680 1,380,153

Funding Disbursements

(Dollar Amounts in Thousands)
Total
School
Other
Internal
Internet
Year Disbursements Libraries
Schools
Districts
Consortia Connections
Access
Telecom
1998
$1,398,927 $49,870
$83,335 $1,069,681 $196,041
$796,535
$94,824 $507,567
1999
1,653,987
47,456
140,257
1,268,761
197,512
1,105,502
95,499
452,985
2000
1,649,791
43,600
88,526
1,385,340
132,325
1,035,181
133,463
481,147
2001
1,698,016
41,940
117,375
1,400,521
138,181
1,007,689
149,542
540,786
2002
1,594,248
42,088
105,951
1,281,077
165,133
809,984
171,008
613,256
2003
1,937,844
44,327
135,730
1,584,889
172,899
1,074,010
203,688
660,146
2004
1,532,619
39,723
107,168
1,205,647
180,082
650,520
192,934
689,165
2005
1,616,814
48,602
110,092
1,281,073
177,047
628,916
214,505
773,393
2006
1,553,425
46,318
96,397
1,207,734
202,976
468,307
235,862
849,256
2007
1,935,734
47,968
135,870
1,543,796
208,100
732,187
258,488
945,059
2008
1,877,763
58,024
113,119
1,487,248
219,373
561,835
276,501 1,039,428
2009
2,188,274
68,151
149,716
1,746,743
223,664
815,334
285,844 1,087,097
2010
2,030,370
70,117
142,943
1,601,086
216,223
585,634
320,807 1,123,929
2011
793,274
38,188
63,990
622,906
68,191
104,853
215,870
472,551
Note: Activity through June 30, 2012. Because of the appeals process, funding commitments and disbursements
can be made after the end of the program year. Also, disbursements may continue beyond the end of the program
year in the event of delayed internal connections installation. Other adjustments and corrections may also be made.
Source: Raw data provided by the Universal Service Administrative Company, rollups performed by Industry
Analysis and Technology Division, Wireline Competition Bureau, FCC.
2 - 27

Table 2.20

Schools and Libraries Funding Commitments and Disbursements by State and by Type of Applicant

Funding Year 2009: July 1, 2009 through June 30, 2010


Library/Library Consortium
Schools
School Districts
Other Consortium
Totals
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
State/Territory
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Alabama
$979,976
$732,627
$1,026,307
$720,819
$54,959,677
$46,704,260
$7,214,269
$7,158,400
$64,180,229
$55,316,105
Alaska
178,248
140,514
263,632
220,213
26,598,879
23,499,161
0
0
27,040,760
23,859,889
American Samoa
0
0
0
0
0
0
4,967,160
4,287,290
4,967,160
4,287,290
Arizona
1,019,216
853,753
10,294,361
7,158,243
67,049,037
54,166,311
1,617,962
1,452,203
79,980,576
63,630,510
Arkansas
305,276
244,911
509,940
474,860
13,665,231
9,513,275
11,833,538
7,989,260
26,313,984
18,222,306
California
7,486,147
5,363,527
12,732,093
8,717,768
392,047,301
263,915,802
16,666,240
10,661,898
428,931,780
288,658,995
Colorado
949,976
746,226
796,303
589,841
20,825,715
15,976,829
1,124,991
1,035,534
23,696,984
18,348,430
Connecticut
170,928
146,978
1,553,261
1,110,739
14,378,282
12,754,186
6,698,373
6,204,111
22,800,844
20,216,015
Delaware
296,981
296,862
170,590
141,211
786,648
710,287
1,307,702
1,299,343
2,561,921
2,447,703
District of Columbia
554,819
413,989
1,901,709
1,451,602
6,575,610
921,756
1,596,237
358,037
10,628,374
3,145,384
Florida
2,930,786
2,709,006
17,784,787
15,593,649
95,413,887
85,580,344
2,998,486
2,723,950
119,127,946
106,606,948
Georgia
4,789,355
4,297,666
2,882,380
2,521,974
90,915,559
69,697,912
10,175,961
9,289,607
108,763,255
85,807,160
Guam
13,246
0
12,242
1,834
757,840
258,361
0
0
783,328
260,196
Hawaii
236,466
221,476
2,922,949
2,081,681
1,280,314
1,186,392
0
0
4,439,730
3,489,549
Idaho
165,302
147,511
153,324
131,747
6,349,095
5,652,237
4,948,222
652,911
11,615,943
6,584,406
Illinois
2,066,212
1,822,880
5,680,810
3,978,421
84,130,935
59,530,329
2,079,623
1,949,342
93,957,580
67,280,972
Indiana
3,754,178
3,425,615
2,828,381
2,462,529
21,108,448
17,165,386
9,379,372
8,143,866
37,070,379
31,197,396
Iowa
177,341
123,599
1,084,982
891,166
8,916,416
7,134,898
4,669,649
4,119,432
14,848,388
12,269,096
Kansas
918,322
716,157
551,566
444,034
15,080,732
12,743,654
2,007,271
1,965,948
18,557,891
15,869,793
Kentucky
698,695
574,090
295,134
169,764
41,675,089
32,408,446
9,978,790
8,992,671
52,647,708
42,144,971
Louisiana
4,946,714
4,310,878
2,065,394
1,660,141
51,344,734
44,282,618
1,382,405
1,139,687
59,739,247
51,393,323
Maine
73,044
66,085
957,607
768,651
5,508,168
4,429,699
3,118,623
2,966,436
9,657,442
8,230,871
Maryland
1,076,909
253,558
1,759,194
1,154,751
22,413,288
18,229,216
724,252
668,680
25,973,642
20,306,205
Massachusetts
3,888,731
3,181,947
3,473,496
2,757,020
30,763,446
26,573,767
531,423
458,024
38,657,095
32,970,758
Michigan
1,800,861
1,635,395
3,057,955
2,413,256
43,560,997
34,456,645
8,031,848
6,425,767
56,451,661
44,931,063
Minnesota
1,333,869
1,249,931
2,446,056
1,901,250
14,053,940
11,861,098
6,276,710
5,855,579
24,110,576
20,867,859
Mississippi
1,747,187
1,560,116
2,006,333
1,834,152
26,389,710
21,846,837
5,296,410
4,819,430
35,439,640
30,060,535
Missouri
1,257,721
1,188,697
1,740,604
1,138,505
28,449,542
22,908,118
9,944,940
8,342,767
41,392,807
33,578,087
Montana
50,419
40,093
227,328
191,507
4,451,413
3,700,485
16,375
12,638
4,745,535
3,944,724
Nebraska
160,496
143,705
395,457
313,294
8,672,117
7,922,803
1,628,470
1,541,309
10,856,538
9,921,112
Nevada
291,989
257,033
838,524
795,610
7,345,465
5,860,405
0
0
8,475,979
6,913,048
New Hampshire
7,047
6,847
523,869
399,227
2,214,118
1,855,208
65,097
58,713
2,810,131
2,319,996
New Jersey
2,081,461
1,459,997
10,253,994
8,250,117
63,400,906
49,849,248
633,442
398,786
76,369,802
59,958,148
New Mexico
167,573
142,516
4,631,645
2,306,757
37,972,263
28,796,068
949,722
642,366
43,721,203
31,887,708
New York
11,078,328
8,283,259
42,056,878
32,518,315
232,323,445
128,795,374
32,808,124
26,703,243
318,266,776
196,300,190
North Carolina
1,786,665
1,660,167
2,359,165
1,714,840
63,025,859
51,369,351
3,272,896
1,408,618
70,444,584
56,152,976
North Dakota
7,754
6,562
364,279
298,233
2,942,174
2,699,341
2,461,943
2,313,874
5,776,150
5,318,011
Northern Mariana Isl
0
0
13,377
13,228
976,888
906,975
0
0
990,265
920,203
Ohio
3,420,419
3,100,277
9,710,412
7,426,560
64,483,322
54,481,677
4,166,614
3,872,802
81,780,768
68,881,315
Oklahoma
2,389,336
2,117,769
2,667,490
2,236,374
77,712,730
64,313,677
108,763
89,251
82,878,319
68,757,070
Oregon
362,658
325,017
574,754
445,170
14,549,825
12,399,149
2,341,027
1,379,383
17,828,264
14,548,718
Pennsylvania
3,164,019
2,935,394
9,920,319
6,870,892
69,463,650
58,615,965
14,261,301
13,582,894
96,809,290
82,005,145
Puerto Rico
6,484,476
4,308,189
4,636,318
3,365,187
42,708
28,241
0
0
11,163,502
7,701,617
Rhode Island
141,544
130,362
891,909
850,070
4,956,204
4,233,460
2,563,998
2,465,999
8,553,655
7,679,891
South Carolina
541,318
421,751
2,148,370
1,300,334
32,914,534
24,362,540
14,599,577
13,909,410
50,203,799
39,994,035
South Dakota
5,801
4,932
1,924,619
1,098,512
2,233,908
1,743,336
1,776,969
1,704,052
5,941,296
4,550,831
Tennessee
913,517
804,670
1,359,155
876,046
59,605,247
50,551,764
3,054,545
2,548,440
64,932,464
54,780,920
Texas
2,509,208
1,667,248
10,091,261
7,975,858
269,425,141
206,002,148
11,751,189
7,475,356
293,776,800
223,120,610
Utah
234,590
153,849
154,742
102,361
7,643,286
6,662,735
15,856,283
10,785,447
23,888,901
17,704,392
Vermont
15,915
12,147
871,592
582,662
1,566,963
1,167,811
45,864
40,091
2,500,334
1,802,710
Virgin Islands
25,980
0
2,061,355
1,597,034
43,740
43,740
6,075,391
5,733,059
8,206,466
7,373,833
Virginia
2,240,287
1,896,957
1,401,581
1,181,589
33,864,338
28,822,432
389,801
376,924
37,896,007
32,277,902
Washington
1,464,413
1,197,188
2,441,065
2,196,339
29,095,449
24,002,687
4,724,619
3,920,367
37,725,545
31,316,580
West Virginia
265,169
204,269
83,091
62,822
11,976,445
9,505,415
4,155,912
3,073,481
16,480,618
12,845,987
Wisconsin
470,574
423,135
2,411,765
2,075,527
16,188,226
13,026,069
8,552,475
8,527,867
27,623,040
24,052,598
Wyoming
29,369
23,351
259,906
181,563
1,170,665
917,178
2,373,514
2,139,740
3,833,454
3,261,832
Totals
$84,126,830
$68,150,682
$196,225,609
$149,715,850
$2,305,259,549
$1,746,743,105
$273,204,366
$223,664,279
$2,858,816,354
$2,188,273,916
Note: Activity through June 30, 2012. Because of the appeals process, funding commitments and disbursements can be made after the end of the program year. Also, disbursements may continue beyond
the end of the program year in the event of delayed internal connections installation. Other adjustments and corrections may also be made.
Source: Raw data provided by the Universal Service Administrative Company, rollups performed by Industry Analysis and Technology Division, Wireline Competition Bureau, FCC.
2 - 28

Table 2.20

Schools and Libraries Funding Commitments and Disbursements by State and by Type of Applicant

Funding Year 2010: July 1, 2010 through June 30, 2011


Library/Library Consortium
Schools
School Districts
Other Consortium
Totals
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
State/Territory
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Alabama
$926,057
$786,461
$1,199,446
$719,442
$57,890,535
$41,811,428
$10,755,848
$6,397,459
$70,771,887
$49,714,789
Alaska
168,074
154,111
172,747
139,691
31,393,483
28,149,189
0
0
31,734,305
28,442,991
American Samoa
0
0
0
0
0
0
1,560,647
725,942
1,560,647
725,942
Arizona
1,286,831
1,033,608
11,258,536
7,114,462
65,686,030
45,237,091
1,413,156
672,552
79,644,553
54,057,713
Arkansas
357,837
286,616
335,333
182,697
20,606,927
14,349,247
13,423,261
7,480,164
34,723,358
22,298,723
California
8,831,496
6,326,566
15,122,098
10,196,275
362,729,645
224,968,412
22,142,737
9,538,561
408,825,976
251,029,813
Colorado
956,963
765,728
979,849
706,777
44,483,034
28,194,204
1,451,357
1,261,308
47,871,203
30,928,017
Connecticut
184,353
165,825
1,703,173
1,200,080
22,112,377
15,436,794
4,236,397
3,729,171
28,236,301
20,531,871
Delaware
301,642
298,276
176,708
124,522
1,426,274
1,012,212
1,433,214
856,917
3,337,838
2,291,928
District of Columbia
1,475,380
404,921
2,651,136
1,454,226
8,177,024
2,130,957
1,368,185
229,486
13,671,725
4,219,591
Florida
3,698,612
3,136,483
6,585,920
4,783,731
75,890,645
60,247,072
909,407
717,787
87,084,583
68,885,073
Georgia
4,408,218
4,312,235
2,597,244
1,871,992
86,876,479
63,287,043
10,072,862
9,928,811
103,954,803
79,400,080
Guam
25,033
0
21,561
15,919
0
0
0
0
46,594
15,919
Hawaii
90,275
76,430
3,382,111
1,522,771
3,563,072
614,152
0
0
7,035,458
2,213,352
Idaho
145,781
132,006
608,444
525,811
8,115,516
5,912,510
4,898,383
2,645,575
13,768,124
9,215,902
Illinois
2,125,477
1,869,764
5,221,834
3,435,972
105,832,223
79,055,625
5,550,744
4,948,135
118,730,278
89,309,496
Indiana
4,185,998
3,557,725
4,662,004
3,464,104
33,492,362
27,485,131
535,959
393,257
42,876,323
34,900,217
Iowa
163,545
117,628
1,081,229
681,759
10,291,855
7,451,767
4,398,154
4,299,442
15,934,782
12,550,596
Kansas
840,850
745,278
602,785
372,156
17,192,634
13,262,000
2,480,249
937,570
21,116,518
15,317,004
Kentucky
721,533
611,246
490,690
272,682
48,914,460
35,004,255
9,623,107
8,832,566
59,749,791
44,720,749
Louisiana
5,633,534
4,668,769
2,927,699
2,233,012
51,257,896
42,526,250
2,922,711
2,054,436
62,741,840
51,482,466
Maine
80,596
56,514
499,098
334,298
6,111,409
3,025,368
3,859,699
3,256,077
10,550,802
6,672,257
Maryland
535,117
448,111
2,164,876
1,197,953
35,165,810
19,545,537
762,860
717,233
38,628,663
21,908,834
Massachusetts
1,831,271
1,637,452
4,149,913
2,707,299
26,278,871
19,284,824
388,152
373,706
32,648,208
24,003,281
Michigan
2,259,110
1,581,665
3,216,049
2,010,542
49,487,619
34,282,909
8,680,285
6,506,379
63,643,062
44,381,494
Minnesota
1,373,582
1,318,572
2,764,136
2,024,103
24,455,560
19,171,598
6,291,936
5,213,504
34,885,214
27,727,776
Mississippi
1,939,579
1,679,339
1,229,150
1,063,750
25,447,085
21,607,598
7,415,946
1,823,121
36,031,760
26,173,808
Missouri
1,418,472
1,332,820
4,977,827
1,304,797
24,778,970
18,897,342
11,368,530
8,873,857
42,543,799
30,408,816
Montana
56,694
51,049
201,979
181,708
4,848,301
4,091,711
23,273
18,265
5,130,247
4,342,732
Nebraska
223,439
201,230
462,579
407,590
8,868,708
8,228,103
1,518,843
1,483,359
11,073,570
10,320,282
Nevada
304,318
242,765
621,859
527,933
7,348,630
5,509,018
0
0
8,274,807
6,279,716
New Hampshire
7,670
5,720
825,329
566,305
2,603,709
2,107,957
63,858
60,989
3,500,566
2,740,971
New Jersey
1,864,178
1,043,270
9,887,995
6,809,982
67,527,356
43,377,739
499,807
355,920
79,779,335
51,586,911
New Mexico
980,089
302,384
4,427,813
2,407,899
38,700,056
26,354,568
3,199,403
1,409,650
47,307,360
30,474,501
New York
9,712,481
6,881,791
47,368,882
36,299,468
201,816,114
68,177,893
33,148,723
26,203,931
292,046,200
137,563,083
North Carolina
2,053,176
1,829,111
3,325,133
2,210,882
80,385,254
61,242,779
3,260,922
1,663,890
89,024,485
66,946,662
North Dakota
9,458
8,169
440,906
325,585
1,167,502
919,408
2,399,623
2,379,140
4,017,489
3,632,301
Northern Mariana Isl
63
0
15,261
15,082
969,234
910,753
0
0
984,558
925,834
Ohio
3,572,994
3,267,908
10,293,951
7,337,581
74,493,975
57,564,488
3,807,132
2,767,795
92,168,051
70,937,772
Oklahoma
2,140,058
1,917,708
1,859,326
1,288,612
69,704,742
47,682,806
138,246
119,606
73,842,373
51,008,733
Oregon
338,897
288,849
1,148,484
792,564
19,408,230
14,144,602
1,598,964
1,373,696
22,494,575
16,599,711
Pennsylvania
3,322,399
2,946,219
14,849,255
8,673,746
55,173,882
41,273,175
14,641,853
13,031,267
87,987,389
65,924,406
Puerto Rico
11,698,723
6,474,464
5,361,621
4,128,504
30,272
18,697
90,763
28,813
17,181,380
10,650,479
Rhode Island
137,434
104,828
638,260
350,753
7,322,340
4,806,376
3,308,211
3,011,797
11,406,246
8,273,754
South Carolina
527,781
376,010
1,825,915
852,594
36,052,862
22,862,156
16,861,763
15,577,701
55,268,322
39,668,460
South Dakota
5,117
3,694
1,876,937
1,168,161
2,153,116
1,743,310
2,143,763
1,083,333
6,178,933
3,998,498
Tennessee
1,017,045
899,819
2,780,491
2,193,337
59,626,879
43,181,194
4,427,034
3,677,614
67,851,450
49,951,963
Texas
3,506,776
1,884,773
13,598,692
9,129,060
340,205,472
181,085,957
12,499,042
8,960,618
369,809,982
201,060,408
Utah
165,951
120,387
677,023
270,764
7,899,592
5,913,781
19,499,501
11,552,557
28,242,068
17,857,488
Vermont
21,196
14,664
916,613
539,582
1,946,211
1,346,505
43,632
42,167
2,927,651
1,942,918
Virgin Islands
0
0
1,161,341
782,370
0
0
9,690,868
6,998,209
10,852,209
7,780,578
Virginia
2,100,764
1,786,244
1,242,280
1,055,288
47,603,654
36,952,331
434,424
411,582
51,381,123
40,205,443
Washington
1,577,759
1,300,562
1,033,766
685,669
29,598,296
22,217,310
4,531,915
4,104,647
36,741,736
28,308,188
West Virginia
255,509
216,710
105,292
81,651
19,118,039
10,880,451
6,594,190
2,910,629
26,073,029
14,089,440
Wisconsin
462,826
421,750
3,405,970
2,119,769
19,602,322
14,328,996
14,361,059
12,393,363
37,832,177
29,263,877
Wyoming
28,236
22,852
204,011
80,000
2,885,420
2,213,755
2,320,439
2,189,667
5,438,105
4,506,273
Totals
$92,056,247
$70,117,075
$211,338,561
$142,943,258
$2,454,717,964
$1,601,086,333
$299,051,038
$216,223,220
$3,057,163,810
$2,030,369,886
Note: Activity through June 30, 2012. Because of the appeals process, funding commitments and disbursements can be made after the end of the program year. Also, disbursements may continue beyond
the end of the program year in the event of delayed internal connections installation. Other adjustments and corrections may also be made.
Source: Raw data provided by the Universal Service Administrative Company, rollups performed by Industry Analysis and Technology Division, Wireline Competition Bureau, FCC.
2 - 29

Table 2.20

Schools and Libraries Funding Commitments and Disbursements by State and by Type of Applicant

Funding Year 2011: July 1, 2011 through June 30, 2012


Library/Library Consortium
Schools
School Districts
Other Consortium
Totals
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
Funds
State/Territory
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Committed
Disbursed
Alabama
$948,238
$293,385
$997,922
$336,338
$34,265,834
$16,455,528
$8,172,933
$2,927,639
$44,384,927
$20,012,889
Alaska
736,717
110,612
248,848
198,362
25,086,132
17,253,700
0
0
26,071,697
17,562,674
American Samoa
0
0
0
0
0
0
1,623,983
0
1,623,983
0
Arizona
1,911,801
377,374
7,719,094
2,695,338
44,279,986
14,097,895
1,507,187
148,945
55,418,068
17,319,552
Arkansas
445,288
258,126
416,662
81,688
16,309,863
6,223,471
209,777
113,932
17,381,590
6,677,217
California
10,011,774
3,810,603
16,309,547
6,196,328
336,565,099
106,257,492
17,618,703
3,363,361
380,505,124
119,627,784
Colorado
968,060
223,504
1,439,832
529,866
20,089,048
6,372,274
503,056
161,049
22,999,996
7,286,693
Connecticut
233,642
34,851
2,159,135
681,903
15,309,971
7,812,673
2,073,297
1,126,680
19,776,045
9,656,107
Delaware
310,770
220,306
302,013
57,048
1,039,246
53,146
1,323,342
0
2,975,371
330,500
District of Columbia
836,129
0
1,685,202
295,526
5,461,041
1,395,946
2,646
2,646
7,985,017
1,694,117
Florida
4,388,129
1,067,436
8,091,981
4,138,488
63,951,396
24,700,309
918,830
159,800
77,350,336
30,066,032
Georgia
5,000,010
4,206,141
2,069,651
381,779
65,578,280
31,155,960
10,148,845
3,148,199
82,796,787
38,892,079
Guam
0
0
18,027
15,976
603,417
460,024
0
0
621,444
476,000
Hawaii
188,592
27,751
2,598,503
455,926
3,610,734
339,661
0
0
6,397,829
823,339
Idaho
576,499
415,444
236,771
137,911
7,218,770
1,405,244
6,292,800
4,967,543
14,324,839
6,926,142
Illinois
2,394,236
550,981
5,239,347
1,363,401
100,120,828
38,499,941
1,366,564
577,605
109,120,975
40,991,928
Indiana
4,502,950
2,830,214
3,060,933
1,319,981
33,107,347
17,151,133
353,975
230,215
41,025,206
21,531,542
Iowa
152,768
104,106
681,272
384,325
10,544,004
5,790,479
5,852,946
4,070,663
17,230,990
10,349,573
Kansas
824,500
258,130
449,522
153,894
15,474,660
6,930,278
2,410,223
196,900
19,158,905
7,539,201
Kentucky
850,728
409,389
385,909
236,677
27,927,738
8,354,924
9,989,991
0
39,154,366
9,000,990
Louisiana
5,182,614
3,072,482
2,516,255
1,187,630
39,186,720
20,884,189
10,129,547
496,428
57,015,135
25,640,728
Maine
71,864
7,913
332,903
71,470
3,561,561
668,441
4,219,679
3,174,279
8,186,008
3,922,103
Maryland
881,992
297,140
2,173,614
436,889
23,424,982
5,531,891
718,337
330,640
27,198,924
6,596,560
Massachusetts
906,542
538,662
2,908,131
974,638
19,036,532
7,407,040
254,984
83,805
23,106,189
9,004,145
Michigan
2,421,795
897,669
3,967,156
1,055,910
35,933,923
15,483,479
7,650,336
4,102,806
49,973,210
21,539,865
Minnesota
1,320,141
489,603
2,438,371
874,723
14,533,317
2,767,009
7,042,674
4,323,377
25,334,502
8,454,711
Mississippi
2,083,418
1,088,023
383,748
75,634
27,439,649
10,731,879
742,883
149,489
30,649,698
12,045,025
Missouri
1,480,179
571,711
3,749,438
727,375
22,501,325
6,799,150
13,771,502
4,672,605
41,502,443
12,770,841
Montana
56,005
30,998
181,160
109,119
4,816,591
2,835,408
26,179
14,188
5,079,935
2,989,713
Nebraska
168,160
108,100
387,129
254,628
9,339,784
6,202,216
1,320,737
855,043
11,215,810
7,419,987
Nevada
325,898
2,519
507,309
321,167
8,013,728
792,408
0
0
8,846,935
1,116,094
New Hampshire
7,197
1,416
480,391
74,809
2,623,524
491,801
104,966
35,295
3,216,078
603,321
New Jersey
1,788,027
543,851
10,824,492
2,225,629
50,441,377
9,318,065
389,638
263,897
63,443,535
12,351,442
New Mexico
336,434
114,009
3,626,418
746,105
16,936,798
3,452,335
4,479,237
1,811,203
25,378,887
6,123,652
New York
10,204,457
3,599,936
45,914,838
14,834,829
42,673,854
9,484,254
28,003,495
3,776,306
126,796,645
31,695,325
North Carolina
2,116,916
1,052,685
2,620,414
857,008
56,169,523
22,656,169
4,683,719
3,962
65,590,572
24,569,824
North Dakota
9,126
4,655
375,220
167,173
1,070,754
552,463
3,695,418
2,412,564
5,150,518
3,136,855
Northern Mariana Isl
36,248
2,647
17,111
12,401
639,797
537,136
0
0
693,156
552,183
Ohio
3,614,880
766,919
14,992,620
4,735,349
62,948,882
27,304,323
3,100,674
1,391,620
84,657,057
34,198,211
Oklahoma
2,292,256
1,162,146
1,831,719
819,435
53,217,002
25,069,730
154,683
95,584
57,495,661
27,146,895
Oregon
293,284
29,801
589,145
205,854
13,885,639
4,746,307
1,451,874
85,803
16,219,942
5,067,765
Pennsylvania
3,803,356
1,501,574
14,216,908
3,683,650
45,031,434
14,373,095
10,983,561
4,542,495
74,035,260
24,100,813
Puerto Rico
8,624,770
4,284,722
4,897,558
3,021,731
22,731
20,559
32,617
0
13,577,675
7,327,012
Rhode Island
315,129
143,371
965,478
235,160
3,383,318
1,377,947
0
0
4,663,924
1,756,477
South Carolina
595,039
181,756
677,258
139,168
17,015,754
4,183,312
20,090,762
0
38,378,815
4,504,236
South Dakota
9,029
3,888
1,248,935
401,236
2,341,640
1,099,141
2,298,947
15,063
5,898,551
1,519,329
Tennessee
1,516,750
526,129
863,194
519,375
51,917,706
31,126,756
3,646,514
2,496,282
57,944,163
34,668,542
Texas
2,493,907
855,964
8,875,707
3,119,638
134,119,754
43,308,715
11,539,766
5,858,232
157,029,134
53,142,548
Utah
61,491
28,189
219,255
34,321
5,006,235
388,610
22,546,906
0
27,833,887
451,120
Vermont
51,270
7,084
861,475
284,509
2,110,181
647,558
50,371
21,146
3,073,297
960,297
Virgin Islands
0
0
2,254,211
330,294
0
0
5,190,133
2,583,128
7,444,344
2,913,422
Virginia
2,176,488
557,315
1,044,647
299,257
32,325,949
13,106,612
500,634
34,145
36,047,718
13,997,330
Washington
1,988,751
368,649
830,169
388,868
24,527,565
7,742,716
5,655,216
0
33,001,701
8,500,234
West Virginia
206,901
79,472
102,247
46,075
12,281,959
3,262,572
7,387,802
3,217,362
19,978,910
6,605,481
Wisconsin
860,762
61,993
2,394,892
881,923
16,991,681
7,439,181
23,023,038
148,823
43,270,373
8,531,919
Wyoming
25,480
6,636
374,294
176,018
1,434,721
403,410
2,779,341
0
4,613,837
586,064
Totals
$93,607,387
$38,187,979
$194,753,984
$63,989,752
$1,683,449,282
$622,905,956
$278,035,271
$68,190,746
$2,249,845,923
$793,274,434
Note: Activity through June 30, 2012. Because of the appeals process, funding commitments and disbursements can be made after the end of the program year. Also, disbursements may continue beyond
the end of the program year in the event of delayed internal connections installation. Other adjustments and corrections may also be made.
Source: Raw data provided by the Universal Service Administrative Company, rollups performed by Industry Analysis and Technology Division, Wireline Competition Bureau, FCC.
2 - 30


Rural Health Care Support










The portion of the 1996 Telecommunications Act that covers universal service support for rural
health care providers states that “[a] telecommunications carrier shall . . . provide telecommunications
services . . . to any public or non-profit health care provider . . . at rates that are reasonably comparable to
rates charged for similar services in urban areas in that state.”13 The Commission's universal service rules
permit eligible health care providers to receive support for any telecommunications service.14, 15 Additionally,
the 1996 Act directs the Commission to establish competitively neutral rules – to enhance, to the extent
technically feasible and economically reasonable, access to advanced telecommunications and information
services for all public and nonprofit . . . health care providers.16

Table 2.21 shows rural health care disbursements by service speed for each funding year from 1998
through 2011.17 Table 2.22 shows commitments and disbursements on a state-by-state basis for 2009, 2010,
and 2011. The figures in these tables do not include any of the commitments or disbursements made under
the rural health care pilot program discussed below. Additional rural health care data, including
disbursements by speed and by state and disbursements per person in rural areas, have been posted at
www.fcc.gov/wcb/iatd/monitor.html.

In September 2006, the FCC established the rural health care pilot program to provide funding to
stimulate deployment of the broadband infrastructure necessary to support innovative telehealth and
telemedicine services to those areas of the country where the need for these benefits is most acute.18
Specifically, the pilot program provides funding to support the design and construction of state or regional
broadband networks dedicated to health care and the advanced services provided over those networks, as well
as connecting those networks to Internet2, National LambdaRail, Inc. (both dedicated nationwide
backbones), or the public Internet.19




13
47 U.S.C. § 254(h)(1)(A).
14
47 C.F.R. § 54.601.
15
A 1.544 Mbps (T1) maximum bandwidth cap was employed in Funding Years 1 and 2. See Federal-State
Joint Board on Universal Service,
CC Docket No. 96-45, Report and Order, 12 FCC Rcd 8776, 9101-04
(1997), paras. 620-624. The Commission removed the bandwidth cap for year three and beyond. See Federal-
State Joint Board on Universal Service,
CC Docket Nos. 97-21 and 96-45, Sixth Order on Reconsideration in
CC Docket No. 97-21, Fifteenth Order on Reconsideration in CC Docket No. 96-45, 14 FCC Rcd 18756,
18767-72, paras. 17 – 24 (1999) (Fifteenth Order on Reconsideration).

16
47 U.S.C. § 254(h)(2)(A).

17
Because of the appeals process, funding commitments and disbursements may be made after the funding
year ended.

18
Rural Health Care Support Mechanism, WC Docket No. 02-60, Order, 21 FCC Rcd 11111 (2006) (Rural
Health Care Pilot Program Order)
.

19
Rural Health Care Support Mechanism, WC Docket No. 02-60, Order, 22 FCC Rcd 20360, 20361 (2007)
(Rural Health Care Pilot Program Selection Order).

2 - 31


In 2007, the Commission selected 69 applicants covering 42 states and three U.S. territories to
participate in the pilot program.20 The Commission made available to these participants approximately
$139 million in rural health care support per funding year for three years.21 Rural health care pilot program
commitments and disbursements by speed and by state have been posted at
www.fcc.gov/wcb/iatd/monitor.html.

In 2012, the FCC released a staff report on the rural health care pilot program summarizing key
observations from the Pilot Program. It is available at http://www.fcc.gov/document/rural-health-care-pilot-
program-evaluation-staff-report. For more information on the pilot program, visit the pilot program
website.22
In December 2012, the Commission released a Report and Order that created the Healthcare
Connect Fund to reform, expand, and modernize the Rural Health Care Program. The Healthcare
Connect Fund, which will be implemented in 2013, will provide support for high-capacity broadband
connectivity to eligible health care providers (HCPs).23

20
Rural Health Care Pilot Program Selection Order. Following mergers, there are now 61 projects in the
pilot program. See www.fcc.gov/encyclopedia/rural-health-care-pilot-program.

21
See RHCPP Selection Order at 20372-73, paras. 32-33. USAC did not issue a pilot program funding
commitment for the first funding year (Funding Year 2007 of the existing rural health care program).
Unused pilot program support, however, was carried over to the next pilot program funding year. See
Letter from Dana Shaffer, FCC, to Scott Barash, USAC, CC Docket No. 02-60 (Jan. 17, 2008). USAC
reported that it rolled forward the Funding Year 2007 demand estimate and commitment cap of $139.26
million to Funding Year 2008, except for $0.53 million, which was committed and invoiced for Funding
Year 2007. Universal Service Administrative Company, Federal Universal Service Support Mechanisms
Fund Size Projections for the Fourth Quarter 2009
at 21.

22
See Rural Health Care Pilot Program at www.fcc.gov/encyclopedia/rural-health-care-pilot-program.

23
Rural Health Care Support Mechanism, WC Docket No. 02-60, FCC 12-150, Report and Order (rel. Dec.
21, 2012).

2 - 32

Table 2.21

Rural Health Care Funding Disbursements by Funding Year

Voice Grade

Broadband

Other Service

Funding

56K to
200K to
1.5Mb to
4.0Mb
or Speed

Year

199K
1.49Mb
3.99Mb
and faster

Unknown

Total

1998
$98,339
$201,476
$3,075,590
$0
$0
$3,375,405
1999
178,433
778,169
3,289,825
0
58,132
4,304,559
2000
242,640
451,643
9,559,894
59,994
0
10,314,172
2001
288,619
204,066
17,964,276
98,382
0
18,555,343
2002
406,711
146,886
20,492,887
573,644
0
21,620,128
2003
440,617
760,318
23,189,835
1,473,855
7,559
25,872,184
2004
570,681
2,741,730
25,265,034
2,283,207
141,133
31,001,784
2005
874,374
3,061,965
32,608,427
3,054,174
527,767
40,126,707
2006
1,059,618
3,101,332
34,029,394
2,918,913
4,169,755
45,279,013
2007
1,247,809
3,052,342
44,555,019
5,301,065
811,323
54,967,558
2008
1,509,074
2,690,625
51,456,004
8,995,383
513,589
65,164,676
2009
1,700,058
2,776,906
52,989,821
10,975,804
3,006,421
71,449,009
2010
2,711,143
5,981,325
46,433,595
12,341,770
13,867,317
81,335,150
2011
458,700
524,703
7,965,895
4,167,180
8,684,740
21,801,218
Note: Disbursements through June 30, 2012. Because of the appeals process, funding commitments and
disbursements may be made after the program year ended. Figures do not include any commitments or
disbursements made under the Rural Health care Pilot Program.
Source: USAC data. Rollups performed by the Industry Analysis and Technology Division, Wireline
Competition Bureau, FCC.
2 - 33

Table 2.22

Rural Health Care Funding Commitments and Disbursements by State

Funding Year 2009: July 1, 2009 through June 30, 2010

Total
Providers
Total
Providers
Funds
Receiving
Funds
Receiving
State
Committed
Commitments
Disbursed
Support
Alabama
$354,564
87
$340,713
86
Alaska
38,244,709
248
37,895,141
248
American Samoa
220,158
1
220,158
1
Arizona
1,486,437
67
1,456,336
67
Arkansas
726,908
107
718,715
107
California
1,106,803
118
1,053,070
116
Colorado
251,624
24
251,624
24
Connecticut
0
0
0
0
Delaware
0
0
0
0
District of Columbia
0
0
0
0
Florida
356,659
23
356,659
23
Georgia
2,073,247
121
2,032,856
121
Guam
14,333
1
14,333
1
Hawaii
164,653
18
164,653
18
Idaho
384,794
42
378,873
42
Illinois
1,147,085
99
1,124,074
97
Indiana
852,010
65
821,151
65
Iowa
529,885
92
521,198
92
Kansas
341,380
63
330,119
60
Kentucky
586,051
71
571,638
71
Louisiana
58,298
24
58,298
24
Maine
66,039
9
60,995
9
Maryland
0
0
0
0
Massachusetts
130,624
2
130,624
2
Michigan
1,960,705
101
1,936,875
100
Minnesota
3,067,618
222
2,969,689
221
Mississippi
190,369
34
189,050
34
Missouri
616,711
60
612,134
60
Montana
765,072
82
758,862
82
Nebraska
1,594,238
120
1,560,708
119
Nevada
48,711
14
48,711
14
New Hampshire
15,003
6
15,003
6
New Jersey
0
0
0
0
New Mexico
795,514
52
774,757
52
New York
114,136
31
111,736
29
North Carolina
359,753
58
357,503
58
North Dakota
1,042,275
108
1,031,992
108
Northern Mariana Is.
0
0
0
0
Ohio
720,431
42
720,431
42
Oklahoma
767,805
69
746,444
68
Oregon
329,072
22
329,072
22
Pennsylvania
59,726
20
56,126
19
Puerto Rico
0
0
0
0
Rhode Island
0
0
0
0
South Carolina
20,717
11
20,717
11
South Dakota
1,067,265
73
978,165
73
Tennessee
396,636
44
385,547
44
Texas
1,635,426
88
1,601,486
86
Utah
851,084
54
846,526
54
Vermont
62,043
18
60,777
16
Virgin Islands
56,451
11
56,451
11
Virginia
743,676
146
743,676
146
Washington
107,816
37
103,199
37
West Virginia
210,088
25
210,068
25
Wisconsin
5,651,474
302
5,617,893
302
Wyoming
115,870
15
104,183
14
Totals
$72,461,949
3,147
$71,449,009
3,127
Note: Disbursements through June 30, 2012. Because of the appeals process, funding commitments and disbursements may
be made after the program year ended. Figures do not include any commitments or disbursements made under the Rural
Health care Pilot Program.
Source: USAC data. Rollups performed by the Industry Analysis and Technology Division, Wireline Competition Bureau,
FCC.
2 - 34

Table 2.22

Rural Health Care Funding Commitments and Disbursements by State

Funding Year 2010: July 1, 2010 through June 30, 2011

Total
Providers
Total
Providers
Funds
Receiving
Funds
Receiving
State
Committed
Support
Disbursed
Support
Alabama
$612,147
85
$452,940
31
Alaska
46,489,267
247
43,133,451
247
American Samoa
351,250
1
262,500
1
Arizona
1,779,930
70
988,321
51
Arkansas
889,401
121
756,583
99
California
4,780,883
160
4,114,365
104
Colorado
301,043
29
251,197
24
Connecticut
0
0
0
0
Delaware
0
0
0
0
District of Columbia
0
0
0
0
Florida
302,503
24
279,709
24
Georgia
2,269,933
127
2,181,726
118
Guam
147,141
2
145,870
2
Hawaii
105,629
17
85,042
14
Idaho
513,650
44
265,781
33
Illinois
1,982,724
132
1,712,448
116
Indiana
923,893
68
835,270
66
Iowa
654,041
96
546,327
84
Kansas
481,863
69
453,108
55
Kentucky
759,664
117
729,578
106
Louisiana
95,040
36
85,482
30
Maine
48,752
6
42,186
3
Maryland
7,845
4
7,689
4
Massachusetts
131,647
2
128,502
1
Michigan
2,124,179
122
1,835,062
115
Minnesota
3,370,975
206
3,056,687
192
Mississippi
220,275
41
189,830
37
Missouri
785,382
86
582,562
62
Montana
772,421
87
682,736
71
Nebraska
1,618,393
122
1,561,419
118
Nevada
52,676
17
25,085
9
New Hampshire
15,037
2
15,037
2
New Jersey
0
0
0
0
New Mexico
789,298
51
565,450
37
New York
81,807
15
56,042
12
North Carolina
485,696
69
447,793
65
North Dakota
1,361,744
110
1,049,157
101
Northern Mariana Is.
0
0
0
0
Ohio
920,942
65
823,988
49
Oklahoma
1,242,418
80
1,082,248
48
Oregon
343,638
25
235,057
14
Pennsylvania
135,118
35
125,968
34
Puerto Rico
0
0
0
0
Rhode Island
0
0
0
0
South Carolina
50,691
25
25,985
18
South Dakota
628,750
50
579,699
43
Tennessee
444,269
40
422,882
38
Texas
2,682,959
140
2,450,312
137
Utah
916,585
47
463,433
32
Vermont
55,531
17
50,784
15
Virgin Islands
66,890
12
66,890
12
Virginia
1,657,145
159
660,112
64
Washington
145,957
32
73,601
11
West Virginia
165,959
21
147,347
20
Wisconsin
6,823,736
340
6,393,063
336
Wyoming
221,699
18
208,845
17
Totals
$91,808,417
3,491
$81,335,150
2,922
Note: Disbursements through June 30, 2012. Because of the appeals process, funding commitments and disbursements may
be made after the program year ended. Figures do not include any commitments or disbursements made under the Rural
Health care Pilot Program.
Source: USAC data. Rollups performed by the Industry Analysis and Technology Division, Wireline Competition Bureau,
FCC.
2 - 35

Table 2.22

Rural Health Care Funding Commitments and Disbursements by State

Funding Year 2011: July 1, 2011 through June 30, 2012

Total
Providers
Total
Providers
Funds
Receiving
Funds
Receiving
State
Committed
Support
Disbursed
Support
Alabama
$499,905
23
$442,157
17
Alaska
29,361,908
156
10,799,635
74
American Samoa
310,200
1
310,200
1
Arizona
464,172
36
181,161
19
Arkansas
1,164,182
61
771,487
32
California
5,050,497
87
864,181
24
Colorado
227,943
15
82,338
4
Connecticut
0
0
0
0
Delaware
0
0
0
0
District of Columbia
0
0
0
0
Florida
263,423
18
171,513
9
Georgia
2,219,164
91
1,034,285
38
Guam
18,000
1
0
0
Hawaii
0
0
0
0
Idaho
80,572
13
42,892
8
Illinois
1,355,345
63
412,709
24
Indiana
553,413
39
180,878
23
Iowa
248,864
24
24,887
8
Kansas
428,742
30
280,875
14
Kentucky
732,512
73
147,346
14
Louisiana
123,194
19
96,429
8
Maine
0
0
0
0
Maryland
0
0
0
0
Massachusetts
99,817
1
0
0
Michigan
606,117
29
61,130
9
Minnesota
1,237,198
73
264,672
22
Mississippi
252,670
28
168,742
19
Missouri
389,330
46
141,760
19
Montana
548,311
56
77,090
11
Nebraska
1,429,083
90
787,477
65
Nevada
10,347
2
9,524
1
New Hampshire
0
0
0
0
New Jersey
0
0
0
0
New Mexico
574,886
28
391,416
9
New York
37,137
10
29,983
5
North Carolina
182,256
22
129,592
10
North Dakota
716,529
32
453,318
24
Northern Mariana Is.
0
0
0
0
Ohio
145,665
12
77,295
2
Oklahoma
816,706
38
289,330
17
Oregon
240,281
7
179,995
7
Pennsylvania
25,907
6
18,819
2
Puerto Rico
0
0
0
0
Rhode Island
0
0
0
0
South Carolina
4,602
7
1,227
1
South Dakota
299,285
17
237,618
16
Tennessee
425,331
30
185,254
18
Texas
2,669,136
90
1,529,906
55
Utah
289,438
12
235,634
8
Vermont
30,166
5
0
0
Virgin Islands
47,943
12
36,555
12
Virginia
811,510
124
38,953
4
Washington
70,695
10
10,734
5
West Virginia
137,697
19
51,762
12
Wisconsin
2,055,715
133
247,807
27
Wyoming
363,048
12
302,654
4
Totals
$57,618,843
1,701
$21,801,218
701
Note: Disbursements through June 30, 2012. Because of the appeals process, funding commitments and disbursements may
be made after the program year ended. Figures do not include any commitments or disbursements made under the Rural
Health care Pilot Program.
Source: USAC data. Rollups performed by the Industry Analysis and Technology Division, Wireline Competition Bureau,
FCC.
2 - 36


3. Subscribership and Penetration

Sources of Data

Continuing analysis of telephone penetration statistics allows one to examine the aggregate
effects of Commission actions and industry evolution on households' decisions to maintain, acquire or
drop telephone service. This chapter presents comprehensive data on telephone penetration statistics
collected by the Bureau of the Census primarily through the American Community Survey (ACS) and the
Current Population Survey (CPS). Along with telephone penetration statistics for the nation and each of
the states, data are provided on penetration for various demographic characteristics. In particular,
attention is given to penetration rates for lower income households given the Commission’s various low
income programs such as Lifeline.

To provide regular, high-quality data on telephone penetration, the Commission requested that the
Census Bureau include questions on telephone availability as part of its CPS, which monitors
demographic trends between decennial censuses. The CPS is a staggered panel survey in which the
people residing at particular addresses are included in the survey for four consecutive months in one year
and the same four months in the following year. Use of the CPS has several advantages: it is conducted
every month by an independent and expert agency, the sample is large, and the questions are consistent.
Thus, changes in the results can be compared over time with a reasonable degree of confidence.

In addition to the CPS, the ACS also provides data for calculating a measure of telephone
penetration. The ACS has replaced the decennial census long form and thus also provides a wealth of
data and large sample sizes, though on a less frequent basis than the CPS. Whereas the CPS reports
household penetration, the ACS follows the design of past decennial censuses and reports telephone
penetration for occupied housing units. In this chapter, penetration measures from the CPS, the ACS, and
decennial censuses (prior to the ACS) are reported as complements to each other.1

The specific questions regarding telephone availability asked in the CPS are: "Does this house,
apartment, or mobile home have telephone service from which you can both make and receive calls?
Please include cell phones, regular phones, and any other type of telephone." And, if the answer to the
first question is "no," this is followed up with: "Is there a telephone elsewhere on which people in this
household can be called?" If the answer to the first question is "yes," the household is counted as having
a telephone "in unit." If the answer to either the first or second question is "yes," the household is
counted as having a telephone "available." In contrast to the CPS, the ACS simply asks: “Does this
house, apartment, or mobile home have telephone service from which you can both make and receive
calls? Include cell phones.” Thus, the ACS question is most similar to the CPS’s “in unit” rather than
“available” penetration rate.

Although the CPS is conducted every month, not all questions are asked every month. The
telephone questions are asked once every four months, in the month that a household is first included in
the sample and in the month that the household re-enters the sample a year later. Since the sample is

1
Penetration statistics derived from the CPS cannot be directly compared with the penetration estimates
based on the responses to the long forms of the 1990 and 2000 decennial censuses or the ACS. This is due
to differences in sampling techniques and survey methodologies as well as differences in the context in
which the questions are asked. For example, the 2011 ACS reported 97.4% of all occupied housing units in
the United States had telephone service available, whereas the March 2011 CPS data showed a household
penetration rate of 96.0%. This difference is statistically significant and may indicate that the CPS value is
on the low side and the ACS value is on the high side, with the most probable value lying somewhere in
between.
3 - 1



staggered, the reported information for any given month actually reflects responses over the preceding
four months. Aggregated summaries of the responses are reported to the Commission, based on the
surveys conducted through March, July, and November of each year. The ACS provides annual
telephone penetration statistics based on data collected monthly throughout the year.

The CPS data are based on a nationwide sample of about 50 to 60 thousand households in the 50
states and the District of Columbia. The CPS does not cover outlying areas that are not states, such as
Puerto Rico, Guam, American Samoa, the Virgin Islands, and the Northern Mariana Islands.2 The ACS
form is sent to approximately 250 thousand addresses per month, for a total of about 3 million addresses
per year. The ACS covers the states, the District of Columbia, and Puerto Rico.

Statistical Tables and Charts

Table 3.1 provides a general overview of the national penetration rate since November 1983
using March, July, and November CPS statistics. The national penetration rate has tended to increase and
the absolute number of households without a telephone available has declined.

Table 3.2 provides national telephone penetration rates over time for each income category since
1997, the year before the current Lifeline mechanism was in place. Chart 3.1 plots these same data.
Between 1997 and 2012, there was a statistically significant increase in the penetration rate for all
households. There also were statistically significant increases in penetration rates in the two lowest
income categories over this time period. For other income categories, the penetration rates have remained
roughly flat since 1997. Note that the increases in the national telephone penetration rate for the lower
income categories cannot be attributed primarily to increases in real income, because real-income
increases are reflected in the movement of households between categories. Thus, penetration changes
within each income category represent changes while holding real income constant. For reference, Table
3.3 shows the nominal dollar equivalents for each 1984 dollar amount used in classifying income
categories.

Chart 3.2 provides an alternative look at lower income telephone penetration. Here, penetration
rates are plotted for households at or below various multiples of the Federal Poverty Guidelines (FPG).
Not surprisingly, penetration rates are higher as households below higher multiples of the FPGs are
included. Similarly to Chart 3.1, low income household telephone penetration has tended to increase over
time.

Note that in both Charts 3.1 and 3.2, a change in the CPS question is noted for March 2005.
Through November 2004, this question had been worded: "Is there a telephone in this house/apartment?"
Because of the increasing number of households that have wireless only, there was some concern that
some of these households may not think of their mobile phones when asked if they have a telephone.
Consequently, beginning in December 2004, CPS changed its telephone question to the current wording,
discussed above. The values since March 2005 reflect the new question. While there is an apparent drop
in the penetration rate between November 2004 and March 2005, at least some of this drop may be
attributable to households that responded to the previous form of the question by reporting phones that
were not in service.


2
Annual data for Puerto Rico have been available from the ACS starting with 2005. The latest available
value for Puerto Rico from that survey is 93.8% for 2011, compared to a national average (for the 50 states
and the District of Columbia) of 97.4% using the ACS.
3 - 2



Table 3.4 combines several data sources to show longer-term telephone penetration rates as far
back as 1920. In this table, ACS (using occupied housing units) and CPS (using households) results are
compared for more recent years.

Table 3.5 uses CPS data to show penetration rates for households with various demographic
characteristics such as the number of persons in the household, the age of the householder, and the race of
the householder.

Tables 3.6 and 3.7 complement each other by reporting, for the states and District of Columbia,
penetration rates using ACS (3.6) and CPS (3.7) data. Note, however, that only the ACS provides a
penetration rate for Puerto Rico. In Table 3.6, rates are reported since 2006. Refer to previous
monitoring reports for earlier state-level ACS results. In Table 3.7, only selected years are shown. The
Wireline Competition Bureau’s Telephone Subscribership in the United States provides similar statistics
for each year.

Table 3.8 reports for each state and the District of Columbia the most recent penetration rates by
income category.




3 - 3


Table 3.1

Household Telephone Subscribership in the United States

Households
Percentage
Households
Percentage
with
with
without
without
Date
Households
Telephones
Telephones
Telephones
Telephones
(millions)
(millions)
(millions)
November
1983
85.8
78.4
91.4 %
7.4
8.6 %
November
1984
87.4
79.9
91.4
7.5
8.6
November
1985
88.8
81.6
91.9
7.2
8.1
November
1986
89.9
83.1
92.4
6.8
7.6
November
1987
91.3
84.3
92.3
7.0
7.7
November
1988
92.6
85.7
92.5
6.9
7.5
November
1989
93.9
87.3
93.0
6.6
7.0
November
1990
94.7
88.4
93.3
6.3
6.7
November
1991
95.7
89.4
93.4
6.3
6.6
November
1992
97.0
91.0
93.8
6.0
6.2
November
1993
98.8
93.0
94.2
5.8
5.8
November
1994
99.8
93.7
93.8
6.2
6.2
November
1995
100.4
94.2
93.9
6.2
6.1
November
1996
101.3
95.1
93.9
6.2
6.1
November
1997
102.8
96.5
93.8
6.3
6.2
November
1998
104.1
98.0
94.2
6.1
5.8
November
1999
105.4
99.1
94.1
6.3
5.9
November
2000
106.5
100.2
94.1
6.3
5.9
November
2001
107.7
102.2
94.9
5.5
5.1
March
2002
108.3
103.4
95.5
4.8
4.5
July
2002
108.5
103.2
95.1
5.3
4.9
November
2002
109.0
104.0
95.3
5.1
4.7
March
2003
112.1
107.1
95.5
5.0
4.5
July
2003
112.1
106.8
95.2
5.3
4.8
November
2003
113.1
107.1
94.7
6.0
5.3
March
2004
112.9
106.4
94.2
6.5
5.8
July
2004
113.5
106.5
93.8
7.1
6.2
November
2004
113.8
106.4
93.5
7.4
6.5
March
2005
114.5
105.8
92.4
8.7
7.6
July
2005
114.4
107.5
94.0
6.8
6.0
November
2005
115.2
107.0
92.9
8.2
7.1
March
2006
115.5
107.2
92.8
8.4
7.2
July
2006
116.2
109.9
94.6
6.3
5.4
November
2006
116.4
108.8
93.4
7.6
6.6
March
2007
117.1
110.8
94.6
6.4
5.4
July
2007
117.7
111.7
95.0
5.9
5.0
November
2007
118.2
112.2
94.9
6.0
5.1
March
2008
117.8
112.2
95.2
5.6
4.8
July
2008
118.0
112.6
95.4
5.5
4.6
November
2008
118.6
112.7
95.0
5.9
5.0
March
2009
118.4
113.2
95.6
5.2
4.4
July
2009
118.4
113.3
95.7
5.1
4.3
November
2009
119.2
114.0
95.7
5.1
4.3
March
2010
118.3
113.6
96.0
4.7
4.0
July
2010
118.3
113.5
96.0
4.8
4.0
November
2010
119.4
114.0
95.5
5.4
4.5
March
2011
119.8
114.9
95.9
4.9
4.1
July
2011
119.3
114.1
95.6
5.2
4.4
November
2011
119.7
114.4
95.6
5.3
4.4
March
2012
121.9
117.0
96.0
4.9
4.0
July
2012
121.7
117.0
96.1
4.7
3.9
Source: U.S. Census Bureau, Current Population Survey.
3 - 4

Chart 3.1
Household Telephone Penetration by Income, 1997-2012
Income Groups in 1984 Dollars
100
Mar. 2005: Revised CPS Question
98
96

e
at
94
R
i
on
92
r
at
enet
90
88
ephone P
el
T
86
84
82
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$9,999 or less
$10,000 - $19,999
$20,000 - $29,999
$30,000 - $39,999
$40,000 or more
All Households
3 - 5

Chart 3.2
Telephone Penetration for Single-Family Households at or below Multiples of the Federal Poverty
Guidelines (FPG), 1996-2012
100
Mar. 2005: Revised CPS Question
98
96

e
at
94
i
on R
r
at
92
enet
90
ephone P
88
el
T
86
84
82
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
1 x FPG
1.35 x FPG
1.5 x FPG
2 x FPG
All Households
3 - 6

Table 3.2

Household Telephone Penetration by Income, 1997-2012

$9,999 or $10,000 - $20,000 - $30,000 - $40,000 or
All
Year
Less
$19,000
$29,999
$39,999
Greater
Households
1997
86.0% 93.0%
96.5% 97.6% 98.2%
94.0%
1998
85.7
93.7
96.1
97.4
98.2
94.1
1999
85.5
92.9
96.0
97.2
98.2
94.0
2000
87.5
93.3
96.1
97.3
98.0
94.5
2001
87.6
93.4
95.9
97.1
97.8
94.4
2002
89.1
94.3
96.9
98.1
98.8
95.5
2003
89.2
94.6
97.0
98.1
98.8
95.5
2004
88.0
93.2
95.3
96.7
97.7
94.2
2005
86.4
91.2
94.1
95.2
96.0
92.5
2006
86.3
91.8
94.4
95.4
96.5
92.9
2007
88.4
94.1
95.9
96.8
97.9
94.6
2008
89.7
94.3
96.2
97.4
98.3
95.2
2009
90.4
95.2
96.6
97.3
98.3
95.6
2010
91.9
95.8
96.9
97.7
98.6
96.1
2011
91.5
95.9
96.8
97.8
98.3
95.9
2012
92.0
95.3
96.9
97.8
98.3
95.9
Source: U.S. Census Bureau, Current Population Survey (March CPS Supplement).
Note: Income groups classified by 1984 dollars. Total penetration rates may differ
slightly from those in Table 3.1 due to sampling differences between the March CPS
and the March CPS Supplement.

Table 3.3

Nominal Dollar Equivalents by Year

(in 1984 Dollars)
Year
$10,000
$20,000
$30,000
$40,000
1997
$15,595
$31,190
$46,785
$62,380
1998
15,809
31,618
47,427
63,236
1999
16,082
32,164
48,246
64,328
2000
16,686
33,372
50,058
66,744
2001
17,173
34,346
51,519
68,692
2002
17,427
34,854
52,281
69,708
2003
17,953
35,906
53,859
71,812
2004
18,265
36,530
54,795
73,060
2005
18,840
37,680
56,520
75,360
2006
19,474
38,948
58,422
77,896
2007
20,015
40,030
60,045
80,060
2008
20,812
41,624
62,436
83,248
2009
20,732
41,464
62,196
82,928
2010
21,212
42,423
63,635
84,846
2011
21,780
43,561
65,341
87,122
2012
22,358
44,716
67,074
89,432
Note: All numbers based on CPI non-adjusted series, March
1984 base of 102.6
3 - 7

Table 3.4

Historical Telephone Penetration Estimates

Percentage of Occupied

Percentage of

Year

Housing Units with

Households with

Telephone Service1

Telephone Service2

1920
35.0 %
1930
40.9
1940
36.9
1950
61.8
1960
78.3
1970
90.5
1980
92.9
1990
94.8
93.3 %
2000
97.6
94.4
2001
96.9
94.9
2002
96.6
95.3
2003
96.2
95.1
2004
95.7
93.8
2005
94.8
93.1
2006
94.1
93.6
2007
94.6
94.8
20083
98.2
95.2
2009
97.7
95.7
2010
97.5
95.8
2011
97.4
95.7
2012
NA4
96.1
1 Housing Unit penetration statistics are from the U.S. Census Bureau's Historical
Statistics of the United States, Colonial Times to 1970
, Part 2, page 783 (1920 -
1970); the decennial censuses (1980 - 2000); and the Census Bureau's American
Community Survey (ACS) 1-year estimates (2001 - 2012).
2 Household penetration data (1990 - 2012) are annual averages from the U.S.
Census based on the Current Population Survey. For 2012, July CPS data are used.
3 Errata #53: released April 12, 2010, regarding 2008 ACS 1-year and 2006-2008
ACS 3-year estimates for household kitchen facilities and telephone service. Two
errors were found affecting the 2008 ACS 1-year data and the 2006-2008 ACS 3-
year data for telephone service. The errors involve the last two items in Question 8
on the housing section of the 2008 ACS questionnaire which asks whether the
housing unit has telephone service (including cell phones). The error involved the
incorrect capture of the responses to those items. It affected the estimates of
householders who reported no telephone service, resulting in an underestimate of
"no" responses and an increased imputation rate for both items. At the national
level, the percent of households reporting no telephone service in 2008 was 1.8
percent; however, after correcting the data capture error, the percent reporting no
telephone service is approximately 2.8 percent.
4 At the time of publication, 2012 ACS statistics were not available.
3 - 8

Table 3.5

Telephone Penetration by Selected Demographic Characterisitcs

(Percentage of Households with Telephone Service)

Characteristic

2009
2010
2011
2012
Persons in Household
1
93.5%
93.9%
93.7%
94.0%
2 - 3
96.4
96.5
96.5
96.8
4 - 5
96.9
96.6
96.7
97.0
6 +
96.1
95.8
95.6
96.2
Age of Householder
15 - 24 Yrs Old
92.0
93.5
93.4
94.3
25 - 54 Yrs Old
95.2
95.5
95.5
95.9
55 - 59 Yrs Old
96.6
96.6
95.9
96.3
60 - 64 Yrs Old
97.0
96.2
96.4
96.4
65 - 69 Yrs Old
97.2
96.8
96.6
96.7
70 - 99 Yrs Old
96.9
96.7
96.5
96.6
Race of Householder
White
96.3
96.4
96.3
96.6
Black
92.1
92.7
92.5
93.2
Hispanic Origin
92.6
93.1
92.7
93.1
United States Total
95.7
95.8
95.7
96.1
Source: U.S. Census Bureau, Current Population Survey. Note that 2009 to 2011 values are
annual averages. For 2012, values are July 2012 figures since complete 2012 figures were
unavailable at the time of publication.
3 - 9

Table 3.6

Telephone Penetration by State, 2006-2011

(Percentage of Occupied Housing Units with Telephone Service)

State

2006
2007
2008*
2009
2010
2011
Alabama
92.6 %
93.9 %
98.0 %
97.5 %
97.4 %
97.2 %
Alaska
96.3
97.7
98.1
98.1
98.3
98.1
Arizona
93.6
93.7
97.0
96.4
97.0
97.0
Arkansas
90.3
91.3
97.6
97.1
96.9
96.6
California
96.6
96.7
98.7
98.3
97.9
97.9
Colorado
94.6
94.3
98.2
97.7
97.7
97.5
Connecticut
96.5
96.8
99.1
98.8
98.3
98.5
Delaware
97.0
95.8
98.7
98.6
98.2
98.2
District of Columbia
94.5
92.6
97.8
96.7
96.7
96.7
Florida
92.4
93.4
97.9
97.6
97.2
96.6
Georgia
90.9
92.7
97.1
97.1
96.9
96.4
Hawaii
95.7
94.9
98.1
97.6
97.5
97.4
Idaho
94.2
94.2
99.0
98.3
97.4
96.5
Illinois
93.7
94.8
98.6
97.9
97.7
97.7
Indiana
93.4
94.2
98.4
97.2
97.1
96.6
Iowa
94.9
95.3
98.9
98.2
97.4
96.9
Kansas
92.7
93.8
98.9
97.9
97.5
97.6
Kentucky
91.9
93.1
97.8
96.8
96.9
96.9
Louisiana
91.6
92.5
97.3
96.5
96.8
97.2
Maine
95.7
95.9
98.8
98.5
97.8
98.2
Maryland
95.3
95.6
99.0
98.5
97.6
97.5
Massachusetts
95.5
96.1
98.8
98.7
98.4
98.3
Michigan
92.1
93.0
98.6
97.5
97.2
97.0
Minnesota
95.8
95.4
99.2
98.6
98.2
98.0
Mississippi
88.4
91.2
96.9
97.2
96.9
96.9
Missouri
93.6
94.3
98.5
97.7
97.3
97.3
Montana
93.6
93.7
97.5
97.2
97.0
97.1
Nebraska
94.4
94.5
99.0
98.3
98.0
97.8
Nevada
94.6
94.3
97.6
97.7
97.7
97.8
New Hampshire
97.0
97.5
98.6
98.5
98.3
98.2
New Jersey
95.3
95.1
97.9
97.9
97.9
97.6
New Mexico
91.7
92.4
95.7
94.7
95.3
94.9
New York
94.8
95.0
97.9
97.4
97.2
97.2
North Carolina
93.2
93.4
98.1
97.6
97.6
97.5
North Dakota
94.7
94.8
99.2
98.0
98.4
98.1
Ohio
94.2
94.6
98.1
97.1
97.2
97.1
Oklahoma
92.9
93.2
98.0
97.8
97.8
97.5
Oregon
95.2
94.9
98.7
97.9
97.7
97.2
Pennsylvania
95.9
95.9
98.8
98.2
98.0
97.8
Rhode Island
95.6
96.0
97.8
97.9
97.2
97.5
South Carolina
92.0
93.2
97.2
96.6
97.1
97.2
South Dakota
96.0
95.3
98.6
98.2
98.0
97.3
Tennessee
92.8
93.7
98.1
97.6
97.2
97.1
Texas
92.6
93.5
98.0
97.7
97.4
97.2
Utah
96.2
96.0
99.3
98.3
97.8
97.6
Vermont
97.2
96.9
98.8
98.0
97.8
98.2
Virginia
95.2
95.2
98.3
97.6
97.4
97.5
Washington
96.2
96.3
99.0
98.1
97.8
97.9
West Virginia
93.8
93.6
96.9
96.4
96.3
96.0
Wisconsin
95.6
96.1
99.0
98.4
98.0
97.7
Wyoming
93.4
95.0
98.7
98.0
97.7
97.8
Total United States
94.1 %
94.6 %
98.2 %
97.7 %
97.5 %
97.4 %
Puerto Rico
73.6 %
80.6 %
91.9 %
92.4 %
93.5 %
93.8 %
* See footnote 3 on Table 3.4.
Source: U.S. Census Bureau, American Community Survey. US Total does not include Puerto Rico.
3 - 10

Table 3.7

Telephone Penetration by State, Selected Years

(Percentage of Households with a Telephone in Unit)

State

1984
1996
2000
2006
2011
Alabama
88.4 %
92.2 %
91.9 %
90.4 %
96.2 %
Alaska
86.5
94.4
94.3
95.7
96.2
Arizona
86.9
93.1
93.9
92.5
95.6
Arkansas
86.6
86.9
88.6
90.0
95.2
California
92.5
95.0
95.8
95.6
95.7
Colorado
93.2
95.5
96.3
94.7
97.3
Connecticut
95.5
97.5
96.4
95.2
97.8
Delaware
94.3
96.1
96.3
93.5
97.2
District of Columbia
94.9
93.0
93.2
91.2
93.1
Florida
88.7
93.1
92.1
92.7
93.2
Georgia
86.2
89.7
91.1
90.5
93.5
Hawaii
93.5
94.8
94.7
95.5
94.9
Idaho
90.7
92.9
93.9
95.5
95.9
Illinois
94.2
93.0
91.5
90.8
95.3
Indiana
91.6
93.7
94.5
89.3
92.5
Iowa
96.2
96.6
96.2
96.1
98.2
Kansas
94.3
93.9
94.8
94.3
97.9
Kentucky
88.1
92.3
93.3
91.3
94.8
Louisiana
89.7
91.1
92.6
93.9
97.9
Maine
93.4
96.5
97.9
96.3
98.2
Maryland
95.7
96.7
95.0
95.4
95.8
Massachusetts
95.9
95.7
94.6
95.3
97.5
Michigan
92.8
95.0
95.0
94.2
97.2
Minnesota
95.8
97.1
97.4
97.6
97.8
Mississippi
82.4
87.5
89.2
90.5
95.6
Missouri
91.5
95.3
95.8
94.9
96.4
Montana
91.0
94.3
94.6
93.3
95.5
Nebraska
95.7
96.0
97.3
93.5
97.5
Nevada
90.4
93.5
94.0
93.0
97.3
New Hampshire
94.3
96.1
97.7
96.4
98.1
New Jersey
94.8
93.6
94.6
94.9
95.4
New Mexico
82.0
86.2
91.2
88.5
92.9
New York
91.8
93.4
95.1
91.6
94.1
North Carolina
88.3
93.5
93.9
93.3
96.0
North Dakota
94.6
96.3
95.8
96.5
98.2
Ohio
92.4
94.5
94.8
94.7
96.6
Oklahoma
90.3
91.3
91.2
92.2
95.8
Oregon
90.6
96.0
94.8
96.7
97.8
Pennsylvania
94.9
96.9
96.6
96.3
97.8
Rhode Island
93.6
95.7
94.9
94.4
97.4
South Carolina
83.7
91.3
93.2
92.5
95.4
South Dakota
93.2
93.3
94.3
96.4
97.7
Tennessee
88.5
94.0
95.5
92.5
92.8
Texas
88.4
91.0
93.5
91.5
95.1
Utah
92.5
96.7
95.9
96.6
97.1
Vermont
92.3
95.9
95.6
96.0
98.1
Virginia
93.1
94.9
95.4
94.1
95.4
Washington
93.0
94.5
94.9
96.9
98.4
West Virginia
87.7
92.9
94.0
93.0
95.9
Wisconsin
95.2
97.0
94.8
95.6
97.1
Wyoming
89.9
95.0
94.7
96.1
97.7
Total United States
91.6 %
93.9 %
94.4 %
93.6 %
95.7 %
Source: U.S. Census Bureau, Current Population Survey.
3 - 11

Table 3.8

Household Penetration by State and Income, 2012

$9,999 or
$10,000 to
$19,999 to
$30,000 to
$40,000 or
All
State
Less
$19,999
$29,999
$39,999
More
Households
Alabama
92.4 %
95.1 %
96.4 %
99.2 %
99.3 %
95.9 %
Alaska
93.7
94.3
97.5
99.2
98.0
96.5
Arizona
85.5
96.6
99.3
98.9
99.8
95.6
Arkansas
91.2
97.0
97.7
96.3
97.5
95.5
California
92.5
94.6
96.9
96.9
98.4
95.9
Colorado
94.6
96.9
98.1
99.5
99.8
97.9
Connecticut
95.2
99.5
97.6
98.2
99.6
98.3
Delaware
97.1
96.5
97.7
98.5
98.5
97.6
District of Columbia
92.1
96.7
97.7
96.0
96.0
95.4
Florida
90.9
93.9
94.7
97.5
93.8
93.7
Georgia
89.3
92.4
93.7
99.5
97.4
93.7
Hawaii
92.1
91.5
97.4
94.5
99.3
95.4
Idaho
93.9
96.3
98.1
97.1
99.7
97.0
Illinois
91.0
94.1
94.7
96.4
97.7
94.7
Indiana
89.2
91.0
94.2
95.6
97.1
92.9
Iowa
95.5
97.1
98.2
99.6
98.7
97.7
Kansas
92.9
97.1
99.3
98.2
99.7
97.2
Kentucky
90.2
95.6
96.7
98.0
99.2
95.2
Louisiana
93.4
97.3
98.4
98.3
97.7
96.5
Maine
97.4
98.6
99.1
97.9
99.1
98.5
Maryland
93.3
96.3
93.8
99.0
99.1
96.9
Massachusetts
93.7
97.1
99.6
100.0
98.8
97.8
Michigan
93.5
96.2
98.9
100.0
98.8
97.1
Minnesota
92.4
97.0
98.7
99.1
100.0
97.6
Mississippi
94.5
97.0
97.4
96.0
99.4
96.7
Missouri
93.0
97.2
98.6
98.4
98.9
96.8
Montana
91.5
93.3
97.4
96.0
98.2
94.7
Nebraska
96.1
97.5
97.7
99.2
98.3
97.7
Nevada
94.3
94.9
98.8
97.4
98.5
96.5
New Hampshire
93.9
96.4
97.9
99.6
99.7
97.9
New Jersey
93.0
96.1
97.8
96.5
98.8
96.9
New Mexico
91.3
90.2
91.9
97.0
98.5
93.2
New York
89.1
92.0
94.8
97.0
96.9
93.6
North Carolina
94.0
97.2
98.9
98.9
99.8
97.5
North Dakota
94.9
97.7
98.3
100.0
98.1
97.7
Ohio
92.0
96.3
97.4
97.4
99.4
96.2
Oklahoma
97.9
96.6
95.9
96.0
97.4
96.9
Oregon
97.1
98.6
99.3
100.0
99.5
98.9
Pennsylvania
96.9
98.7
99.4
98.5
99.6
98.6
Rhode Island
92.2
96.7
97.2
99.5
98.5
96.4
South Carolina
90.5
95.8
97.7
96.2
98.9
95.2
South Dakota
93.9
97.6
98.9
99.6
99.4
97.6
Tennessee
84.6
93.0
92.6
91.1
94.9
90.8
Texas
92.0
95.5
97.0
97.6
97.8
95.8
Utah
98.4
97.3
98.4
99.4
97.9
98.1
Vermont
94.9
97.1
99.7
98.3
98.9
97.8
Virginia
89.1
95.0
99.0
99.2
99.2
96.6
Washington
95.6
95.9
98.5
98.9
99.2
97.7
West Virginia
91.6
93.9
95.4
98.0
96.1
94.4
Wisconsin
90.5
94.3
99.0
98.8
98.6
96.1
Wyoming
95.2
98.2
97.7
100.0
100.0
98.2
United States
92.0 %
95.3 %
96.9 %
97.8 %
98.3 %
95.9 %
Source: U.S. Census Bureau, Current Population Survey (March CPS Supplement).
3 - 12


4.

Price

Indices








This section contains information on telephone price indices using data from the Consumer Price
Index (CPI) maintained by the Bureau of Labor Statistics (BLS).


The BLS collects information on telephone service as part of the CPI. Monthly CPI data can be
found on the Internet at www.bls.gov/cpi/. The monthly price indices represent prices sampled in the
middle of the month.


A CPI for telephone services was first published in 1935.1 Since then, telephone prices have
tended to increase at a slower pace than most other prices. Table 4.1 shows long-term changes in the
indices for all items, all services, telephone services, each of the seven major categories that currently
constitute the overall CPI, and several services that are often characterized as public utilities. The price of
telephone service has increased less rapidly than the prices of most of these categories when viewed over
a long period of time. Chart 4.1 shows the levels of the overall CPI and the CPI for telephone services
over time.



The CPI for telephone services is based on a "market basket" intended to represent the
telephone-related expenditures of a typical urban household. It includes both land-line telephone service
and wireless telephone service. The annual rate of change during recent years is shown in Table 4.2 for
the overall CPI (which measures the impact of inflation on consumers), and the CPI for telephone
services. Chart 4.2 shows the changes in the overall CPI and the CPI for telephone services since 1999.


For 2011, the nation's overall level of prices (measured by the CPI for all items) rose by 3.0% and
the CPI for telephone services declined by 0.3%. The land-line telephone service index increased by
1.9% during 2011, while the wireless telephone index decreased by 2.3%. Monthly data for these indices
are shown in Table 4.3.

In January 2010, BLS discontinued collecting four land-line telephone indices, including local
charges, long distance charges, interstate toll calls, and intrastate toll calls. These four indices were
combined into a single land-line telephone service index, which began in December 2009.

The Producer Price Index (PPI), also published by BLS, continues to release sub-indices for
telephone services. We no longer include them in this report because they have become less meaningful
as the bundling of telephone services has become more common in the land-line telephone industry.2


1
BLS publishes two sets of Consumer Price Indices. The CPI-U, used herein, is based on expenditures of all
urban consumers. The CPI-W series is based on expenditures of urban wage earners and clerical workers.

2
PPI data are available on the BLS website at www.bls.gov/ppi/.
4 - 1

Table 4.1

Long-Term Changes for Various Price Indices

(Average Annual Rates of Change)
1961-2011
2001-2011
CPI All Items (SA0)
4.1 %
2.4 %
CPI All Services (SAS)
4.9
2.8
CPI Telephone Services (SEED)
1.6
0.3
CPI Major Categories:
- Food & Beverages (SAF)
*
2.8
- Housing (SAH)
*
2.4
- Apparel (SAA)
2.0
-0.5
- Transportation (SAT)
4.0
3.1
- Medical Care (SAM)
5.9
4.0
- Recreation (SAR)
*
0.9
- Other Goods & Services (SAG)
*
3.5
CPI Public Transportation (SETG)
5.1
2.4
CPI Utility (Piped) Gas Service (SEHF02)
5.1
4.0
CPI Electricity (SEHF01)
3.9
4.0
CPI Water & Sewerage Maint. (SEHG01)
5.7
5.3
CPI Postage (SEEC01)
4.8
3.4
* Series not established until after 1960.
Note: The CPI Telephone Services index was revised in December of 1997. To calculate values in this table,
Series MUUR0000SE270A is used for periods prior to this revision and CUUR0000SEED is used for periods
after the revision. After each row, the series ID is provided and should be preceeded by CUUR0000 when
referencing the series. Source: Bureau of Labor Statistics.

Chart 4.1

CPI All Goods and Services and CPI Telephone Services, 1961-2011

Base Period: 1997 = 100

160
140
120
evel 100

I
L

80

P
C

60
40
20
0
1961
1965
1969
1973
1977
1981
1985
1989
1993
1997
2001
2005
2009

Year

CPI - All Goods and Services
CPI - Telephone Services
4 - 2

Table 4.2

Annual Changes in CPI Telephone Services and All Items Indices

All Goods and Services

Telephone Services

1999
2.7
0.4
2000
3.4
-2.3
2001
1.6
1.3
2002
2.4
0.2
2003
1.9
-2.7
2004
3.3
-2.5
2005
3.4
0.4
2006
2.5
1.7
2007
4.1
2.1
2008
0.1
2.9
2009
2.7
1.0
2010
1.5
-0.9
2011
3.0
-0.3

Note: Values report the percent change from December of the previous year through December of
the year shown. Sources: Bureau of Labor Statistics and Bureau of Economic Analysis.

Chart 4.2

Annual Changes in CPI All Goods and Services and CPI

Telephone Services

r

a

10
e
r
Y

r
i
o

5

P
m
o

fr

0
e
g
n
a
h

-5
t C
n
e

-10
r
c
e

1999
2001
2003
2005
2007
2009
2011

P

Year

All Goods and Services
Telephone Services
4 - 3

Table 4.3

Monthly Consumer Price Indices

(December 2009 = 100)

All Goods and

Land-line

Wireless Telephone

Telephone Services

Services

Telephone Services

Services

BLS Series ID

CUUR0000SA0
CUUR0000SEED
CUUR0000SEED04 CUUR0000SEED03
2009 January
97.8
99.2
*
101.1
February
98.3
99.2
*
101.2
March
98.5
99.3
*
101.2
April
98.7
99.4
*
101.2
May
99.0
99.6
*
101.2
June
99.9
99.5
*
101.2
July
99.7
99.9
*
101.2
August
99.9
100.0
*
101.2
September
100.0
100.3
*
101.2
October
100.1
100.2
*
101.2
November
100.2
99.8
*
100.0
December
100.0
100.0
100.0
100.0
2010 January
100.3
100.0
101.0
99.2
February
100.4
99.6
101.1
98.3
March
100.8
99.6
101.1
98.3
April
101.0
99.7
101.4
98.3
May
101.0
99.7
101.4
98.2
June
100.9
99.6
101.4
98.1
July
101.0
99.8
101.6
98.2
August
101.1
99.8
101.8
98.2
September
101.2
99.9
102.0
98.2
October
101.3
99.8
102.1
97.8
November
101.3
99.6
102.2
97.5
December
101.5
99.1
102.2
96.4
2011 January
102.0
98.7
103.0
95.2
February
102.5
98.6
103.0
95.0
March
103.5
98.6
103.1
94.8
April
104.1
98.5
102.9
94.9
May
104.6
98.5
102.9
94.8
June
104.5
98.5
103.0
94.8
July
104.6
98.3
103.3
94.1
August
104.9
98.3
103.4
94.1
September
105.1
98.4
103.6
94.1
October
104.8
98.6
103.9
94.1
November
104.8
98.6
103.9
94.1
December
104.5
98.7
104.1
94.2
2012 January
105.0
99.0
104.9
94.2
February
105.4
99.0
105.0
94.2
March
106.2
99.1
105.2
94.2
April
106.5
99.2
105.4
94.2
May
106.4
99.3
105.5
94.3
June
106.3
99.4
105.7
94.3
July
106.1
98.9
105.6
93.6
Notes: Series values for All Goods and Services are converted from the 1982-1984 base index series reported by the Bureau of Labor
Statistics (BLS). Series values for Telephone Services and Wireless Telephone Services are converted from the December 1997 base index
series reported by BLS. Land-line Telephone Services index began in December 2009. Series are not seasonally adjusted. Series may be
referenced via the BLS website with the Series ID listed at the top of each column.
4 - 4

5. Network Usage











To monitor use of the public switched telephone network, the National Exchange Carrier
Association (NECA) provides quarterly reports to the Commission on the volume of interstate access
minutes of use (MOU) passing through the local switches. The data reported in this section include new
annual data for 2011 as well as revisions of the data that were contained in our previous reports.1 The
minutes reported here are those minutes that pass through the incumbent local exchange carriers' switches.


The following descriptions of minutes of use measures are based on information provided by
NECA:


Access MOU are "earned MOU" which are derived by dividing the earned revenues by the
corresponding rate. Access minutes of use generating revenues have been discounted, which can
produce distortions in revenue amounts. Further, revenues are normalized to account for
differences in terminating/originating and percent interstate use factors, billing adjustments, and the
imputations of access charges (where applicable). Revenues are also calendarized, which will
change derived minutes.


Access MOU include only the domestic portion of international calls. Similarly, WATS and toll-
free (800/888/877/866) calls are counted only on one end of the call.2 Finally, minutes include time
for incomplete calls and setup time.

Chart 5.1 and Table 5.1 present NECA information on local access minutes for interstate traffic that
pass through the incumbent LECs’ switches. In Table 5.1, data are shown for totals of the tier 1 carriers, the
non-tier 1 carriers, and the industry.3 These figures do not include the minutes from the closed end of
WATS or toll-free calls.

Table 5.2 presents interstate access minutes of use data by state from 2007-2011. Annual study
area data for the years 2007 through 2011 are posted athttp://www.fcc.gov/wcb/iatd/monitor.html"> www.fcc.gov/wcb/iatd/monitor.html.





1
The FCC routinely posts quarterly MOU data ahttp://www.fcc.gov/wcb/iatd/neca.html">t www.fcc.gov/wcb/iatd/neca.html.
2
WATS calls usually generate access minutes only at the terminating end of the call and toll-free calls usually
generate access minutes only at the originating end of the call; both types of minutes are counted in the
terminating minutes.
3
Tier 1 carriers are non-NECA pool incumbent local exchange carriers with annual operating revenues of
$148 million or more in 2011.
5 - 1

Chart 5.1
Interstate Switched Access Minutes of Use for Incumbent Local Exchange Carriers
(in Billions)
600
500
400
300

200
100


0


1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: National Exchange Carrier Association, various filings.


5 - 2

Table 5.1

Interstate Switched Access Minutes of Use

Incumbent Local Exchange Carriers by Tier

(in Millions)

Tier 1

Non Tier 1

Industry

Year

Total

Total

Total

1987
203,204
12,508
215,712
1988
230,398
14,211
244,609
1989
259,529
17,530
277,058
1990
287,442
20,006
307,448
1991
306,376
21,661
328,036
1992
327,172
22,577
349,749
1993
347,021
24,220
371,240
1994
374,173
27,230
401,403
1995
401,536
30,389
431,925
1996
434,718
33,378
468,097
1997
461,461
35,837
497,299
1998
481,078
37,749
518,828
1999
512,729
39,585
552,314
2000
523,928
42,990
566,917
2001
495,491
44,200
539,691
2002
442,684
43,958
486,642
2003
399,579
44,384
443,963
2004
377,832
44,531
422,363
2005
356,992
43,953
400,945
2006
335,651
43,560
379,211
2007
308,924
39,937
348,861
2008
280,110
35,857
315,968
2009
246,226
32,081
278,307
2010
212,214
27,760
239,974
2011
183,874
24,668
208,542
Source: National Exchange Carrier Association, various filings.
5 - 3

Table 5.2

ILEC Interstate Switched Access Minutes of Use by State

(in Millions)

State

2007
2008
2009
2010
2011
Alabama
5,699
5,562
4,971
4,256
3,612
Alaska
1,135
1,344
958
723
604
American Samoa
19
19
18
19
19
Arizona
6,573
6,059
5,286
4,629
4,013
Arkansas
3,434
3,099
2,791
2,346
1,988
California
35,521
31,441
27,664
23,588
20,212
Colorado
6,695
6,116
5,371
4,563
4,086
Connecticut
5,425
4,795
4,178
3,718
3,133
Delaware
1,487
1,392
1,216
1,010
911
District of Columbia
1,857
1,720
1,616
1,444
1,343
Florida
24,812
22,234
19,039
15,892
13,351
Georgia
11,757
10,992
9,672
8,270
7,133
Guam
262
221
166
149
134
Hawaii
1,594
1,927
1,887
1,999
1,628
Idaho
2,050
1,860
1,629
1,402
1,247
Illinois
14,860
13,699
11,931
10,083
8,205
Indiana
6,968
6,459
5,477
4,694
3,941
Iowa
4,200
3,120
2,729
2,386
2,126
Kansas
3,264
2,816
2,431
2,016
1,790
Kentucky
4,555
4,092
3,645
3,303
2,893
Louisiana
4,654
4,250
3,714
3,224
2,687
Maine
1,573
1,394
1,336
1,133
1,003
Maryland
8,615
7,729
7,043
6,296
5,583
Massachusetts
7,356
6,514
5,726
5,044
4,646
Michigan
8,855
7,930
6,758
5,735
4,662
Minnesota
5,039
4,624
4,031
3,539
3,183
Mississippi
3,500
3,230
2,860
2,521
2,106
Missouri
7,293
6,674
5,904
5,169
4,594
Montana
1,362
1,244
1,119
953
860
Nebraska
1,929
1,796
1,614
1,437
1,397
Nevada
4,130
3,475
2,907
2,301
1,902
New Hampshire
1,916
1,649
1,462
1,052
940
New Jersey
12,478
10,742
9,856
8,007
7,058
New Mexico
2,571
2,297
1,972
1,712
1,517
New York
19,369
17,185
15,360
13,540
12,277
North Carolina
10,900
10,090
8,738
7,733
6,874
North Dakota
728
685
609
549
548
Northern Mariana Islands
52
48
47
37
32
Ohio
11,632
10,549
9,104
7,889
6,617
Oklahoma
3,579
3,185
2,901
2,539
2,169
Oregon
4,277
3,786
3,270
2,721
2,329
Pennsylvania
13,896
12,686
11,172
9,698
8,825
Puerto Rico
3,419
3,426
3,214
3,177
3,131
Rhode Island
896
814
734
660
604
South Carolina
5,603
5,143
4,518
3,983
3,470
South Dakota
1,119
848
639
555
496
Tennessee
7,075
6,453
5,630
4,834
3,985
Texas
21,985
20,184
17,607
15,169
13,119
Utah
2,548
2,323
1,915
1,619
1,503
Vermont
1,167
1,028
960
789
663
Virgin Islands
379
372
354
332
297
Virginia
10,456
9,560
9,111
8,031
7,294
Washington
6,905
6,174
5,382
4,447
3,832
West Virginia
2,903
2,760
2,490
2,272
1,860
Wisconsin
5,662
5,407
4,951
4,245
3,635
Wyoming
875
746
626
543
477
Total
348,861
315,968
278,307
239,974
208,542
Source: National Exchange Carrier Association, March 2012 filing
5 - 4

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Document Outline

  • LowIncome2012.pdf
    • LowIncome2012Tables.pdf
  • mr12s2 High Cost.pdf
    • HighCost2012.pdf
  • Section 2C - Schools and Libraries.pdf
    • Section 2C - Schools and Libraries Program Tables.pdf
  • Section 2D - Rural Health Care.pdf
    • Section 2D - Rural Health Care Support Tables.pdf
  • Section 3 Subscribership.pdf
    • MR2012_Chapter3.pdf
  • Section 4 Price Indices.pdf
    • mr12-4rate-tables.pdf
  • Section 5 - Network Usage.pdf
    • Section 5 - Network Usage charts.pdf
  • Section 5 - Network Usage.pdf
    • Section 5 - Network Usage charts.pdf
  • mr12s0 Introduction.pdf
    • CC Docket No. 98-202
    • OTHER FEDERAL STAFF

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