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FCC Releases New Data on Local Telephone Competition

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Released: June 25, 2014
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Local Telephone Competition:

Status as of June 30, 2013

Industry Analysis and Technology Division

Wireline Competition Bureau

June 2014

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 www.fcc.gov/wcb/stats.

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Contents

TEXT

Introduction ............................................................................................................................................. 1

Retail local telephone service ................................................................................................................. 1

Service providers .................................................................................................................................... 3

Interconnected VoIP service ................................................................................................................... 6

Switched access lines .............................................................................................................................. 9

Wholesale relationships for switched access lines .................................................................................. 9

Remainder of the report ........................................................................................................................ 11

Technical Notes .................................................................................................................................... 30

Glossary ................................................................................................................................................ 31

FIGURES

1. Retail Local Telephone Service Connections, 2010 - 2013 ............................................................. 2

2.

Wireline Retail Local Telephone Service Connections by Technology and

Customer Type ................................................................................................................................. 3

3.

Wireline Retail Local Telephone Service Connections by Customer Type and

Regulatory Status ............................................................................................................................. 4

4.

Wireline Retail Local Telephone Service Connections by Technology, Regulatory Status,

and Customer Type .......................................................................................................................... 5

5. Interconnected VoIP Subscribership by Reported Service Features ................................................ 7

6. Technology of Internet Access Connections in Interconnected VoIP Broadband Bundles ............. 8

7. Technology of Retail Switched Access Lines .................................................................................. 9

8. Wholesale Relationships as Reported Respectively by CLECs and ILECs ................................... 10

TABLES

1. Total End-User Switched Access Lines and VoIP Subscriptions .................................................. 12

2. Total End-User Switched Access Lines and VoIP Subscriptions by Customer Type .................... 13

3. End-User Switched Access Lines and VoIP Subscriptions by Customer Type ............................. 14

4. End-User Switched Access Lines and VoIP Subscriptions Reported by Non-ILECs .................... 15

5.

ILEC End-User (Retail) and Wholesale Switched Access Lines, VoIP Subscriptions,

and UNEs ....................................................................................................................................... 16

6.

End-User Switched Access Lines and VoIP Subscriptions by Type of Technology

for Non-ILEC Providers ................................................................................................................. 17

7. Percentage of Switched Access Lines Presubscribed for Long Distance Service .......................... 18

8. Residential and Business Presubscribed Switched Access Lines ................................................... 19

9. Total End-User Switched Access Lines and VoIP Subscriptions by State .................................... 20

10. Residential End-User Switched Access Lines and VoIP Subscriptions by State ........................... 21

U.S. Federal Communications Commission Local Telephone Competition: Status as of June 30, 2013 i

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11. Business End-User Switched Access Lines and VoIP Subscriptions by State ............................... 22

12. Non-ILEC Share of Total End-User Switched Access Lines and VoIP Subscriptions

by State ........................................................................................................................................... 23

13. Non-ILEC Total End-User Switched Access Lines and VoIP Subscriptions by State .................. 24

14. ILEC Total End-User Switched Access Lines and VoIP Subscriptions by State .......................... 25

15. Non-ILEC Methods of Providing Wireline Telephone Services by State ..................................... 26

16. Percentage of End-User Switched Access Lines and VoIP Subscriptions Provided to

Residential Customers by State ...................................................................................................... 27

17. Number of Reporting ILECs, Non-ILECs, and VoIP Providers by State ...................................... 28

18. Mobile Telephone Facilities-based Carriers and Mobile Telephony Subscribers ......................... 29

CHARTS

1. Total End-User Switched Access Lines and VoIP Subscriptions .................................................. 12

2. Percent of Total Lines and VoIP Subscriptions that Serve Residential Customers........................ 13

3. VoIP Share of Total End-User Switched Access Lines and VoIP Subscriptions ........................... 14

4. Non-ILEC End-User Switched Access Lines and VoIP Subscriptions .......................................... 15

5. ILEC Total Lines and the Percent Provided to CLECs .................................................................. 16

6.

End-User Switched Access Lines and VoIP Subscriptions by Type of Technology

for Non-ILEC Providers ................................................................................................................. 17

7. Percent Presubscribed Interstate Long Distance Lines for ILECs.................................................. 18

U.S. Federal Communications Commission Local Telephone Competition: Status as of June 30, 2013 ii

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Local Telephone Competition: Status as of June 30, 2013

Introduction. The Commission has used FCC Form 477 to collect subscribership information from

providers of local telephone service – the incumbent local exchange carriers (ILECs), competitive local

exchange carriers (CLECs), and mobile telephony providers – for more than a decade.1 The Commission

has required interconnected Voice over Internet Protocol (“interconnected VoIP”) service providers to

report subscribership information since December 2008 because the use of VoIP technology is growing

rapidly and it increasingly is used to provide local telephone service.2

This report summarizes the information collected about telephone services as of June 30, 2013. It

demonstrates continued growth in subscribership to interconnected VoIP and mobile telephony services

and continued decline in subscribership to traditional wired telephone services.3

Retail local telephone service. Retail local telephone service customers are served by two wireline

technologies – “end-user” switched access lines and interconnected VoIP “subscriptions” – and by

mobile wireless subscriptions.

In June 2013, there were 90 million end-user switched access lines in service, 45 million

interconnected VoIP subscriptions, and 306 million mobile subscriptions in the United States, or

441 million retail local telephone service connections in total. See Figure 1.

1 See the Technical Notes and the Glossary that appear at the end of this report for more-detailed information about

the Form 477 and the meaning of terms used in this report. For an overview of program history for the telephone

services data, see Local Telephone Competition: Status as of December 31, 2008 (June 2010) at pp. 1-2, available

at file:/C/Users/Ellen.Burton/Desktop/June11data/www.fcc.gov/wcb/iatd/comp.html">www.fcc.gov/wcb/iatd/comp.html. Readers who are interested in historical trends in the data should note the

changes in reporting requirements that were effective in 2008 and earlier, in 2005.

2 The FCC’s rules (at 47 C.F.R. § 9.3) state:

An interconnected Voice over Internet Protocol (VoIP) service is a service that:

(1) Enables real-time, two-way voice communications;

(2) Requires a broadband connection from the user’s location;

(3) Requires Internet protocol-compatible customer premises equipment (CPE); and

(4) Permits users generally to receive calls that originate on the public switched telephone network and to terminate

calls to the public switched telephone network.

We note that the current interpretation of element (4) of the definition excludes the VoIP services that Skype offers

in the United States, and subscribers to those services are not reported on Form 477. Prior to the December 2008

data, companies such as Vonage that solely provide interconnected VoIP service did not file Form 477. Telephone

companies and cable companies that provided local exchange telephone service were required to file Form 477 but

were not required to report interconnected VoIP subscriptions. However, some of these companies chose to include

interconnected VoIP subscriptions in the number of retail (end-user) switched access lines that they reported.

3 The presentation of mobile wireless telephone subscriber counts in this report does not constitute, or imply,

Commission analysis of the extent to which wireline and mobile wireless telephone services are demand substitutes

or complements in general or in any particular situation. In the Form 477 program, commercial mobile radio service

(CMRS) carriers who own or operate wireless networks report both their retail telephone service customers and the

retail customers of mobile wireless telephone service resellers.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 1

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Over the three-year period presented in Figure 1, interconnected VoIP subscriptions increased at

a compound annual growth rate of 16%, mobile telephony subscriptions increased at a compound

annual growth rate of 3%, and retail switched access lines declined at 10% a year.4

Figure 1

Retail Local Telephone Service Connections, 2010 - 2013

(In Thousands)

Of the 135 million wireline retail local telephone service connections (including both switched

access lines and interconnected VoIP subscriptions) in June 2013, 77 million (or 57%) were

residential connections and 58 million (or 43%) were business connections.5 See Figure 2.

4 The compound annual growth rate (CAGR) is a smoothed rate of growth calculated in three steps. First, divide the

ending (June 2013) value by the beginning (June 2010) value. Second, raise the result of that division to a power

equal to one divided by the number of years in the period (in this case, 3 years, so the power is 1/3). Third, subtract

the number one from the result of the second step.

5 FCC Form 477 does not distinguish between residential and business subscribers to mobile telephony service. The

information that Form 477 collects about mobile broadband service is summarized elsewhere; see Internet Access

Services: Status as of June 30, 2013, available athttp://www.fcc.gov/wcb/iatd/comp.html"> www.fcc.gov/wcb/iatd/comp.html.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 2

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Cross-classified by technology and customer type, the 135 million wireline retail local telephone

service connections in June 2013 were: 30% residential switched access lines, 36% business

switched access lines, 27% residential interconnected VoIP subscriptions, and 7% business

interconnected VoIP subscriptions. See Figure 2.

Figure 2

Wireline Retail Local Telephone Service Connections by Technology and

Customer Type as of June 30, 2013 (In Thousands)

Switched Access

Interconnected

Total

Lines

VoIP

Residential

40,946

36,409

77,355

Business

48,890

8,882

57,771

Total

89,836

45,291

135,127

Figures may not add to totals due to rounding.

Service providers. The Form 477 program – and this report – distinguishes ILEC operations from all

other operations.

Cross-classified by customer type (residential or business) and the service retailer’s regulatory

status (ILEC or non-ILEC), the 135 million wireline retail local telephone service connections in

June 2013 were: 34% ILEC residential service, 25% ILEC business service, 24% non-ILEC

residential service, and 18% non-ILEC business service. See Figure 3.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 3

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Figure 3

Wireline Retail Local Telephone Service Connections by Customer Type and

Regulatory Status as of June 30, 2013 (In Thousands)

Residential Business Total

ILEC

45,365 33,172 78,537

Non-ILEC

31,990 24,600 56,590

Total

77,355 57,771 135,127

Figures may not add to totals due to rounding.

Additionally cross-classified by technology, the 77 million wireline residential connections in

June 2013 were: 49.3% ILEC switched access lines, 37.8% non-ILEC interconnected VoIP

subscriptions, 3.6% non-ILEC switched access lines, and 9.3% ILEC interconnected VoIP

subscriptions. Similarly, the 58 million wireline business connections were: 56.0% ILEC

switched access lines, 28.7% non-ILEC switched access lines, 13.9% non-ILEC interconnected

VoIP subscriptions, and 1.4% ILEC interconnected VoIP subscriptions. See Figure 4.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 4

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Figure 4

Wireline Retail Local Telephone Service Connections by Technology, Regulatory Status,

and Customer Type as of June 30, 2013 (In Thousands)

Total

Switched Access

Interconnected

Total

Lines

VoIP

ILEC

70,504

8,033

78,537

Non-ILEC

19,332

37,257

56,590

Total

89,836

45,291

135,127

Residential

ILEC

38,169

7,196

45,365

Non-ILEC

2,777

29,213

31,990

Residential Total

40,946

36,409

77,355

Business

ILEC

32,335

837

33,172

Non-ILEC

16,555

8,045

24,600

Business Total

48,890

8,882

57,771

Figures may not add to totals due to rounding.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 5

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Interconnected VoIP service. Form 477 identifies three types of information about retail

interconnected VoIP service.

First, interconnected VoIP service retailers distinguish between the interconnected VoIP

subscriptions they sell to their broadband Internet access service customers (“broadband bundle”

subscriptions, in this report) and all the other interconnected VoIP subscriptions that they sell

(“standalone” subscriptions).

Second, filers report whether or not interconnected VoIP subscriptions include, as a service

feature, the capability to use the service over any broadband connection to which the customer

has access, for example, at a hotel or vacation residence (“nomadic” functionality).

Third, filers identify the different broadband technologies (for example, cable modem Internet

access service) in the broadband bundle.

The Form 477 data cross-classify the first two of these three sets of information. See Figure 5.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 6

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Figure 5

Interconnected VoIP Subscribership by Reported Service Features

as of June 30, 2013 (In Thousands)

Total

Broadband

Standalone

Total

Bundle

VoIP

Nomadic

868

4,326

5,194

Not nomadic

38,322

1,774

40,096

Total

39,191

6,100

45,291

ILEC

Nomadic

38

21

58

Not nomadic

7,972

3

7,975

ILEC Total

8,010

24

8,033

Non-ILEC

Nomadic

830

4,306

5,136

Not nomadic

30,351

1,771

32,122

Non-ILEC Total 31,181

6,076

37,257

Figures may not add to totals due to rounding.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 7

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Form 477 collects the third type of information about retail interconnected VoIP service – the technology

of the Internet access connection – for broadband bundles but not for standalone interconnected VoIP.

See Figure 6.6

Figure 6

Technology of Internet Access Connections in Interconnected VoIP

Broadband Bundles as of June 30, 2013 (In Thousands)

Technology

ILEC Non-ILEC Total

DSL or Other Wireline

4,126

3,098

7,224

FTTP

3,883

975

4,858

Cable Modem

1

26,825

26,826

Terrestrial Fixed Wireless

1

54

55

Other

0

230

230

Total

8,010

31,181

39,191

Figures may not add to totals due to rounding.

6 Internet Access Services: Status as of June 30, 2013 discusses types of Internet access connections in greater

detail. The report is available atfile:/C/Users/Ellen.Burton/Desktop/June11data/www.fcc.gov/wcb/iatd/comp.html"> www.fcc.gov/wcb/iatd/comp.html.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 8

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Switched access lines. ILECs as a group predominantly deliver retail switched access lines over

copper local loops. This appears also to be the case for those non-ILECs who report retail switched

access lines. See Figure 7.

Figure 7

Technology of Retail Switched Access Lines

as of June 30, 2013 (In Thousands)

Technology

ILEC Non-ILEC Total

FTTP

3,450

1,994

5,443

Coaxial Cable

160

1,623

1,784

Terrestrial Fixed Wireless

15

45

60

Copper Local Loop

66,879

15,670

82,549

Total

70,504

19,332

89,836

Figures may not add to totals due to rounding.

Wholesale relationships for switched access lines. ILECs typically own the communications facilities

over which they provide retail services. By contrast, CLECs use a range of methods: equipping ILEC

UNE loops (“UNE-L”) as CLEC switched access lines,7 reselling services (for example, reselling ILEC

7 CLECs (as opposed to non-ILECs more generally) have certain regulatory rights to obtain ILEC local loops at cost-

based UNE rates, which the CLEC may use to provide retail switched access lines or retail broadband Internet access

connections. See C.F.R. § 51.307.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 9

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switched access lines obtained at wholesale rates or reselling ILEC lines obtained under commercial

agreements that replaced the UNE-Platform (“UNE-P”)), equipping leased ILEC special access circuits

as switched access lines, and equipping local loops that the CLEC owns.

CLECs reported using several methods to provide their 19.3 million retail switched access lines

in June 2013. They reported providing 41% of lines (or 8.0 million lines) by reselling ILEC

wholesale or retail services. They reported providing 33% of lines (or 6.3 million lines) over

ILEC facilities leased at regulated, cost-based rates (that is, as unbundled network elements, or

UNEs). And they provided the remaining 26% of lines (or 5.0 million lines) over local loops that

they owned. However, the information about wholesale relationships differs as reported by

CLECs and by ILECs, as discussed in Figure 8.

Figure 8

Wholesale Relationships as Reported Respectively by CLECs and ILECs

as of June 30, 2013 (In Thousands)

CLEC

ILEC

Difference

Retail Switched

Access Lines

provisioned over

ILEC Services

(reported by CLECs)

Wholesale Switched

Access Lines and

UNEs provided to

CLECs

(reported by ILECs)

Resold ILEC services1

7,984

3,957

4,028

UNE-P2

937

1

935

UNE-L3

5,383

2,787

2,597

Total ILEC UNEs

6,320

2,788

3,532

Total ILEC services

14,304

6,744

7,560

Figures may not add to totals due to rounding.

1 Resold ILEC services include switched access lines made available to CLECs at wholesale rates, resold Centrex,

Integrated Services Digital Network (ISDN), or other ILEC services, ILEC special access circuits channelized to

provide CLEC retail switched access lines, and ILEC switched access lines provided to CLECs under commercial

agreements that replaced UNE-P. (See note 2, below.) Filers are instructed to count the number of voice-grade

channels the retail customer purchased, not the theoretical capacity of the circuit over which the service was delivered.

ILECs generally do not know (and do not report) which ILEC leased special access circuits or other high-capacity

circuits are being used to provide CLEC retail switched access lines (which the CLECs do report).

2 UNE-P was the combination of ILEC loop UNE, switching UNE, and transport UNE. The Commission directed

CLECs to migrate their retail customers served by UNE-P to an alternative arrangement within 12 months of the

effective data of the Triennial Review Remand Order, that is, by March 11, 2006. See C.F.R. § 51.319(d)(2)(ii).

3 ILECs report the number of UNE-L they provide to CLECs but do not convert any high-capacity UNE-L, such as

DS1 UNE loops, into voice-grade equivalents. By contrast, CLECs report the number of switched access lines their

retail customers purchase which the CLEC provisioned over UNE-L obtained from ILECs. Note, however, that a

CLEC might use UNE-L only to provide broadband Internet access connections.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 10

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Remainder of the report. The remainder of the report consists of tables and charts that summarize

national and state-specific data.

* * * *

We invite users of this information to provide suggestions for improved analysis of data presented in this

report by using the attached customer response form or by sending comments to IATDreports@fcc.gov

for subject: June 2013 local telephone data. We encourage users of this information to provide

suggestions for improved data collection by participating in any formal proceedings undertaken by the

Commission to solicit comments for improvement of FCC Form 477.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 11

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Table 1

Total End-User Switched Access Lines and VoIP Subscriptions1

(In Thousands)

Date

Provided by

ILEC

Non-ILEC

Total

Non-ILEC Share

Dec 2008

118,496

44,267

162,763

27.2

Jun 2009

112,748

44,351

157,098

28.2

Dec 2009

107,018

45,927

152,945

30.0

Jun 2010

102,395

49,077

151,472

32.4

Dec 2010

97,497

52,155

149,652

34.9

Jun 2011

93,394

52,820

146,214

36.1

Dec 2011

89,427

53,892

143,319

37.6

Jun 2012

85,848

55,744

141,592

39.4

Dec 2012

82,114

56,481

138,595

40.8

Jun 2013

78,537

56,590

135,127

41.9

Some previously published data have been revised.

1 Mandatory reporting by interconnected VoIP service providers started in December 2008. Previously, individual ILECs and CLECs included

VoIP subscribers in reported switched access lines to a varying and largely unknown degree. Interconnected VoIP is distinguished from VoIP

service more generally by permitting users to receive calls that originate on the public switched telephone network and

to terminate calls to the

public switched telephone network. See

47 C.F.R. § 9.3. Form 477 counts both switched access lines and interconnected VoIP subscriptions

as the maximum number of calls that may be active, simultaneously, from the end user’s location under the purchased service plan.

Chart 1

Total End-User Switched Access Lines and VoIP Subscriptions

(In Millions)

180

160

140

120

100

80

60

40

20

0

Dec 2008

Jun 2009

Dec 2009

Jun 2010

Dec 2010

Jun 2011

Dec 2011

Jun 2012

Dec 2012

Jun 2013

Non-ILEC

44.3

44.4

45.9

49.1

52.2

52.8

53.9

55.7

56.5

56.6

ILEC

118.5

112.7

107.0

102.4

97.5

93.4

89.4

85.8

82.1

78.5

ILEC

Non-ILEC

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 12

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Table 2

Total End-User Switched Access Lines and VoIP Subscriptions by Customer Type1

(In Thousands)

Reporting ILECs

Reporting Non-ILECs

Date

Residential % Residential

Business

Residential

Business

% Residential

Dec 2008

72,786

45,711

61.4

25,049

19,218

56.6

Jun 2009

68,581

44,166

60.8

24,769

19,582

55.8

Dec 2009

64,613

42,405

60.4

26,793

19,134

58.3

Jun 2010

61,579

40,816

60.1

27,899

21,178

56.8

Dec 2010

58,194

39,303

59.7

28,851

23,304

55.3

Jun 2011

55,365

38,029

59.3

29,272

23,548

55.4

Dec 2011

52,530

36,897

58.7

30,285

23,607

56.2

Jun 2012

50,165

35,683

58.4

31,109

24,635

55.8

Dec 2012

47,639

34,476

58.0

31,641

24,839

56.0

Jun 2013

45,365

33,172

57.8

31,990

24,600

56.5

Some previously published data have been revised.

1 The December 2008 data are the first for which comprehensive reporting of interconnected VoIP subscribers was required. See

footnote 1, Table 1.

Chart 2

Percent of Total Lines and VoIP Subscriptions that Serve Residential Customers

62%

61%

60%

59%

58%

57%

56%

55%

54%

53%

52%

Dec 2008

Jun 2009

Dec 2009

Jun 2010

Dec 2010

Jun 2011

Dec 2011

Jun 2012

Dec 2012

Jun 2013

ILECs

61.4%

60.8%

60.4%

60.1%

59.7%

59.3%

58.7%

58.4%

58.0%

57.8%

Non-ILECs

56.6%

55.8%

58.3%

56.8%

55.3%

55.4%

56.2%

55.8%

56.0%

56.5%

ILECs

Non-ILECs

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 13

image17-00.jpg612x792

Table 3

End-User Switched Access Lines and VoIP Subscriptions by Customer Type

(In Thousands)

End-User Switched Access Lines

VoIP Subscriptions

Total

Date

Residential

Business

Total

Residential

Business

Total

Residential

Business

Total

Dec 2008

78,180

62,839

141,019

19,655

2,090

21,744

97,835

64,929

162,763

Jun 2009

73,093

60,015

133,109

20,257

3,733

23,990

93,350

63,748

157,098

Dec 2009

68,614

58,335

126,949

22,793

3,204

25,996

91,406

61,539

152,945

Jun 2010

64,463

58,152

122,615

25,015

3,842

28,857

89,478

61,994

151,472

Dec 2010

60,010

57,874

117,884

27,036

4,733

31,768

87,045

62,607

149,652

Jun 2011

56,019

56,428

112,447

28,617

5,150

33,767

84,637

61,577

146,214

Dec 2011

51,920

54,729

106,649

30,895

5,775

36,670

82,815

60,504

143,319

Jun 2012

48,337

53,495

101,832

32,937

6,823

39,760

81,274

60,318

141,592

Dec 2012

44,573

51,565

96,138

34,707

7,750

42,457

79,280

59,315

138,595

Jun 2013

40,946

48,890

89,836

36,409

8,882

45,291

77,355

57,771

135,127

Some previously published data have been revised. Figures may not sum to totals due to rounding.

Chart 3

VoIP Share of Total End-User Switched Access Lines and VoIP Subscriptions

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Dec

Jun

Dec

Jun

Dec

Jun

Dec

Jun

Dec

Jun

2008

2009

2009

2010

2010

2011

2011

2012

2012

2013

Residential

20.1%

21.7%

24.9%

28.0%

31.1%

33.8%

37.3%

40.5%

43.8%

47.1%

Business

3.2%

5.9%

5.2%

6.2%

7.6%

8.4%

9.5%

11.3%

13.1%

15.4%

Total

13.4%

15.3%

17.0%

19.1%

21.2%

23.1%

25.6%

28.1%

30.6%

33.5%

Residential

Business

Total

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 14

image18-00.jpg612x792

Table 4

End-User Switched Access Lines and VoIP Subscriptions Reported by Non-ILECs1

(Lines and Subscriptions in Thousands)

End-User Switched Access

Lines

End-User

Percent

Acquired from

Reporting

Switched

other LECs

Date

Non-

Access Lines

CLEC-

VoIP

ILECs

and VoIP

owned

Resold

Subscriptions

ILEC

local

Resold

CLEC-

LEC

LEC

ILEC

owned

loops 3

service

UNEs 2

local

VoIP

service

UNEs

loops

Dec 2008

705

44,267

7,083

9,612

6,359

21,216

16.0

21.7

14.4

47.9

Jun 2009

720

44,351

6,799

8,516

6,005

23,032

15.3

19.2

13.5

51.9

Dec 2009

758

45,927

7,100

8,029

5,993

24,802

15.5

17.5

13.0

54.0

Jun 2010

787

49,077

8,249

7,701

6,231

26,895

16.8

15.7

12.7

54.8

Dec 2010

809

52,155

8,634

7,313

7,294

28,912

16.6

14.0

14.0

55.4

Jun 2011

834

52,820

8,492

6,950

7,242

30,136

16.1

13.2

13.7

57.1

Dec 2011

874

53,892

8,201

6,769

6,937

31,978

15.2

12.6

12.9

59.3

Jun 2012

879

55,744

8,139

6,654

7,006

33,948

14.6

11.9

12.6

60.9

Dec 2012

920

56,481

7,696

6,890

6,300

35,593

13.6

12.2

11.2

63.0

Jun 2013

940

56,590

7,984

6,320

5,023

37,257

14.1

11.2

8.9

65.8

Some previously published data have been revised. Figures may not sum to totals due to rounding.

1

See footnote 1, Table 1.

2 Includes unbundled network element (UNE) loops leased from an unaffiliated ILEC on a stand-alone basis and also UNE loops leased

in combination with UNE switching or any other unbundled network element.

3 Lines provided over CLEC-owned "last-mile" facilities.

Chart 4

Non-ILEC End-User Switched Access Lines and VoIP Subscriptions as of June 30, 2013

Resold LEC service

14.1%

ILEC UNEs

11.2%

VoIP

CLEC-owned local

65.8%

loops

8.9%

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 15

image19-00.jpg612x792

Table 5

ILEC End-User (Retail) and Wholesale Switched Access Lines, VoIP Subscriptions, and UNEs1

(Lines, Subscriptions, and UNEs in Thousands)

End-User

Switched Access Lines and UNEs Provided to CLECs

Reporting

ILEC

Date

Total

Switched

UNEs

Total

UNEs &

Resold

Lines

ILECs2

VoIP

Resold

% of

Lines3

Access

Lines

Without

With

Total

Total

Lines

Switching

Switching4

UNEs

Lines

Dec 2008

777

128,288

117,968

529

3,209

3,844

2,740

6,583

9,792

7.6

Jun 2009

777

121,879

111,790

958

3,008

3,580

2,543

6,123

9,131

7.5

Dec 2009

766

116,070

105,824

1,194

2,988

3,668

2,396

6,063

9,051

7.8

Jun 2010

763

110,798

100,433

1,962

5,023

3,254

127

3,381

8,403

7.6

Dec 2010

754

105,386

94,641

2,856

4,712

3,124

53

3,177

7,889

7.5

Jun 2011

756

101,056

89,763

3,631

4,578

3,081

4

3,085

7,662

7.6

Dec 2011

755

96,890

84,735

4,692

4,366

3,028

68

3,097

7,463

7.7

Jun 2012

755

93,033

80,036

5,812

4,059

3,005

121

3,126

7,185

7.7

Dec 2012

754

89,067

75,250

6,864

4,038

2,913

1

2,914

6,953

7.8

Jun 2013

754

85,282

70,504

8,033

3,957

2,787

1

2,788

6,744

7.9

Some previously published data have been revised.

1 See footnote 1, Table 1.

2 Fewer ILECs were counted after mid-year 2007 primarily because FCC staff identified additional common-control relationships.

3 Sum of ILEC-reported end-user (retail) switched access lines, ILEC interconnected VoIP subscriptions, and ILEC wholesale switched

access lines and UNEs provided to CLECs.

4 ILEC loops provided with ILEC switching, including the combination of ILEC loop UNE, switching UNE, and transport UNE,

collectively referred to as the UNE-Platform ("UNE-P"). In the Triennial Review Remand Order, which was adopted on December 15,

2004, the Commission directed CLECs to migrate their retail customers served by these methods to alternative arrangements by March 11,

2006, i.e., within 12 months of the date the order went into effect. See C.F.R. § 51.319(d)(2)(ii).

Chart 5

ILEC Total (Retail and Wholesale) Lines and Lines Provided to CLECs for Resale

140,000

30,000

120,000

25,000

100,000

20,000

80,000

15,000

60,000

10,000

40,000

20,000

5,000

0

0

Dec 2008

Jun 2009

Dec 2009

Jun 2010

Dec 2010

Jun 2011

Dec 2011

Jun 2012

Dec 2012

Jun 2013

ILEC Total Lines

Lines Provided to CLECs for Resale

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 16

image20-00.jpg612x792

Table 6

End-User Switched Access Lines and VoIP Subscriptions

by Type of Technology for Non-ILEC Providers1

(In Thousands)

Percent Coaxial

Date

Coaxial Cable2

Other Technology

Total

Cable

Dec 2008

20,108

24,158

44,267

45.4

Jun 2009

21,547

22,804

44,351

48.6

Dec 2009

23,171

22,756

45,927

50.5

Jun 2010

24,339

24,738

49,077

49.6

Dec 2010

25,877

26,278

52,155

49.6

Jun 2011

26,645

26,175

52,820

50.4

Dec 2011

27,776

26,116

53,892

51.5

Jun 2012

28,541

27,203

55,744

51.2

Dec 2012

29,317

27,164

56,481

51.9

Jun 2013

30,205

26,384

56,590

53.4

Some previously published data have been revised.

1 See footnote 1, Table 1.

2

Reported end-user switched access lines and interconnected VoIP connections that terminate on coaxial cable at the end user's

premises. Starting, systematically, with the December 2008 data, interconnected VoIP service providers report subscriptions they sold

in a bundle with cable modem Internet access service. For December 2008 and later dates, FCC staff used other Form 477 data to

estimate the number of standalone VoIP subscriptions that terminated on coaxial cable at the end user's premises.

Chart 6

End-User Switched Access Lines and VoIP Subscriptions

by Type of Technology for Non-ILEC Providers

(In Thousands)

35000

30000

25000

20000

15000

10000

5000

0

Dec 2008

Jun 2009

Dec 2009

Jun 2010

Dec 2010

Jun 2011

Dec 2011

Jun 2012

Dec 2012

Jun 2013

Coaxial Cable

Other Technology

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 17

image21-00.jpg612x792

Table 7

Percentage of Switched Access Lines Presubscribed for Long Distance Service

ILEC

CLEC

Total

Residential

Dec 2008

68

80

69

Jun 2009

69

80

70

Dec 2009

70

76

71

Jun 2010

70

76

71

Dec 2010

69

77

69

Jun 2011

69

78

70

Dec 2011

68

78

69

Jun 2012

66

76

66

Dec 2012

65

78

66

Jun 2013

65

79

66

Business

Dec 2008

44

70

51

Jun 2009

43

72

51

Dec 2009

43

71

51

Jun 2010

44

73

53

Dec 2010

50

76

59

Jun 2011

52

80

62

Dec 2011

52

75

59

Jun 2012

51

74

59

Dec 2012

51

73

59

Jun 2013

52

70

58

Total

Dec 2008

59

73

61

Jun 2009

59

74

61

Dec 2009

60

72

62

Jun 2010

60

74

62

Dec 2010

61

76

64

Jun 2011

62

80

66

Dec 2011

61

75

64

Jun 2012

59

75

62

Dec 2012

59

74

62

Jun 2013

59

71

62

Some previously published data have been revised.

Chart 7

Percent Presubscribed Interstate Long Distance Lines for ILECs

80%

70%

60%

50%

40%

30%

20%

10%

0%

Dec

Jun

Dec

Jun

Dec

Jun

Dec

Jun

Dec

Jun

2008

2009

2009

2010

2010

2011

2011

2012

2012

2013

Residential

Business

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 18

image22-00.jpg612x792

Table 8

Residential and Business Presubscribed Switched Access Lines

(In Thousands)

June 30, 2013

ILEC

CLEC

Total

Residential

Presubscribed

24,732

2,186

26,917

Not Presubscribed

13,437

592

14,029

All Lines

38,169

2,777

40,946

Percent Presubscribed

65%

79%

66%

Business

Presubscribed

16,830

11,531

28,361

Not Presubscribed

15,505

5,023

20,528

All Lines

32,335

16,555

48,890

Percent Presubscribed

52%

70%

58%

Total

Presubscribed

41,562

13,717

55,279

Not Presubscribed

28,942

5,615

34,557

All Lines

70,504

19,332

89,836

Percent Presubscribed

59%

71%

62%

December 31, 2012

ILEC Total

CLEC

Total

Residential

Presubscribed

27,127

2,386

29,513

Not Presubscribed

14,378

682

15,060

All Lines

41,505

3,068

44,573

Percent Presubscribed

65%

78%

66%

Business

Presubscribed

17,281

13,095

30,377

Not Presubscribed

16,464

4,724

21,188

All Lines

33,746

17,820

51,565

Percent Presubscribed

51%

73%

59%

Total

Presubscribed

44,408

15,482

59,889

Not Presubscribed

30,842

5,406

36,249

All Lines

75,250

20,888

96,138

Percent Presubscribed

59%

74%

62%

Some previously published data have been revised. Figures may not sum to totals due to rounding.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 19

image23-00.jpg612x792

Table 9

Total End-User Switched Access Lines and VoIP Subscriptions by State as of June 30, 2013

(In Thousands)

ILECs

Non-ILECs

VoIP purchased as

VoIP purchased as

State

Switched

Switched

Non-ILEC

Access

Bundled

with

Internet

Bundled

with

Internet

Total

Stand-

Total

Access

Total

% of Total

Stand-

Lines

alone

Lines

alone

Alabama

1,055

0

81

1,136

329

67

300

696

1,832

38

Alaska

224

0

#

224

*

2

1

*

*

*

American Samoa

9

0

0

9

0

0

0

0

9

0

Arizona

1,147

0

1

1,149

525

139

662

1,326

2,475

54

Arkansas

657

0

37

694

104

26

140

270

964

28

California

9,448

2

1,063

10,513

2,030

928

3,365

6,323

16,836

38

Colorado

1,137

0

0

1,137

340

121

640

1,101

2,238

49

Connecticut

866

#

152

1,018

178

80

600

858

1,876

46

Delaware

210

#

63

273

52

22

119

194

467

41

District of Columbia

507

#

23

530

232

29

110

371

901

41

Florida

3,840

3

652

4,495

1,288

533

2,239

4,059

8,554

47

Georgia

2,133

#

213

2,346

793

210

758

1,761

4,107

43

Guam

38

0

0

38

*

*

*

*

*

*

Hawaii

379

#

8

387

42

9

93

144

531

27

Idaho

351

0

0

351

70

21

79

170

521

33

Illinois

2,959

0

365

3,324

572

291

1,253

2,116

5,440

39

Indiana

1,473

0

124

1,597

201

97

515

814

2,411

34

Iowa

782

#

#

782

162

33

183

378

1,161

33

Kansas

566

0

44

610

188

42

217

447

1,057

42

Kentucky

1,033

0

43

1,076

207

32

312

551

1,627

34

Louisiana

1,009

0

85

1,094

259

63

359

681

1,775

38

Maine

352

0

#

353

136

16

148

300

653

46

Maryland

1,491

2

449

1,942

354

147

579

1,079

3,021

36

Massachusetts

1,417

1

317

1,735

533

185

1,069

1,786

3,521

51

Michigan

1,886

0

238

2,124

363

216

1,093

1,672

3,796

44

Minnesota

1,282

#

2

1,284

456

82

620

1,158

2,443

47

Mississippi

614

#

41

655

79

29

125

233

889

26

Missouri

1,451

0

169

1,620

233

69

351

653

2,273

29

Montana

272

0

#

272

44

8

104

156

428

36

Nebraska

421

0

0

421

186

27

149

362

783

46

Nevada

599

0

17

617

115

71

334

521

1,137

46

New Hampshire

262

0

1

263

92

44

257

393

656

60

New Jersey

1,863

3

556

2,423

598

220

1,615

2,432

4,855

50

New Mexico

493

0

0

493

61

25

115

201

694

29

New York

3,846

6

871

4,722

1,482

313

3,248

5,043

9,765

52

North Carolina

2,274

#

100

2,374

739

145

891

1,774

4,148

43

North Dakota

198

0

0

198

75

4

40

119

317

38

Northern Mariana Isl.

15

0

0

15

0

0

0

0

15

0

Ohio

2,623

0

196

2,819

424

131

1,050

1,604

4,423

36

Oklahoma

769

0

47

816

219

57

304

580

1,396

42

Oregon

792

0

0

792

214

85

420

719

1,511

48

Pennsylvania

3,179

3

491

3,672

1,254

284

1,353

2,891

6,563

44

Puerto Rico

560

0

0

560

98

19

134

250

810

31

Rhode Island

165

#

72

237

139

29

102

270

507

53

South Carolina

1,061

0

76

1,136

298

72

321

691

1,827

38

South Dakota

192

0

#

192

133

5

73

212

404

52

Tennessee

1,306

0

115

1,421

597

102

532

1,231

2,653

46

Texas

5,104

1

772

5,877

1,109

378

1,474

2,961

8,838

34

Utah

472

0

0

472

146

62

303

512

984

52

Vermont

211

0

#

211

41

13

78

132

343

39

Virgin Islands

45

0

0

45

0

*

0

*

*

*

Virginia

1,936

2

414

2,352

710

210

735

1,655

4,006

41

Washington

1,437

#

1

1,438

334

182

867

1,382

2,819

49

West Virginia

537

0

0

537

95

17

171

283

820

34

Wisconsin

1,417

#

111

1,528

265

81

497

844

2,372

36

Wyoming

139

0

1

140

16

5

67

88

228

39

Nationwide

70,504

24

8,010

78,537

19,332

6,076

31,181

56,590

135,127

42

# = Rounds to zero. * = Data withheld to maintain firm confidentiality.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 20

image24-00.jpg612x792

Table 10

Residential End-User Switched Access Lines and VoIP Subscriptions by State as of June 30, 2013

(In Thousands)

ILECs

Non-ILECs

VoIP purchased as

VoIP purchased as

State

Switched

Switched

Total

Non-ILEC

Access

Bundled

with

Internet

Stand-

Total

Access

Bundled

with

Internet

Stand-

Total

% of Total

Lines

Lines

alone

alone

Alabama

643

0

74

718

68

53

241

362

1,079

33

Alaska

105

0

0

105

*

2

1

*

*

*

American Samoa

4

0

0

4

0

0

0

0

4

0

Arizona

657

0

0

657

224

92

393

708

1,365

52

Arkansas

386

0

33

419

10

18

106

133

552

24

California

4,628

2

929

5,559

392

594

2,407

3,394

8,952

38

Colorado

683

0

0

683

13

77

498

588

1,271

46

Connecticut

440

#

135

575

34

57

526

617

1,192

52

Delaware

100

#

60

160

3

16

111

130

290

45

District of Columbia

89

#

15

105

11

11

48

69

174

40

Florida

2,101

3

594

2,697

38

386

1,959

2,383

5,080

47

Georgia

1,149

#

182

1,331

67

154

618

839

2,170

39

Guam

22

0

0

22

*

*

*

*

*

*

Hawaii

197

0

0

197

#

6

84

90

287

31

Idaho

209

0

0

209

17

12

54

83

291

28

Illinois

1,394

0

301

1,695

50

200

1,051

1,301

2,995

43

Indiana

823

0

114

938

34

65

449

548

1,486

37

Iowa

497

#

#

498

59

25

110

194

691

28

Kansas

309

0

39

347

66

27

143

236

583

40

Kentucky

628

0

26

654

43

21

271

336

989

34

Louisiana

558

0

74

632

59

48

258

365

997

37

Maine

252

0

0

252

8

11

133

152

404

38

Maryland

662

2

427

1,092

59

95

458

612

1,704

36

Massachusetts

678

1

304

983

43

127

1,004

1,173

2,156

54

Michigan

939

0

204

1,143

61

172

984

1,217

2,360

52

Minnesota

862

#

#

862

88

60

406

553

1,415

39

Mississippi

348

0

36

384

17

22

108

147

530

28

Missouri

850

0

147

997

23

51

269

343

1,340

26

Montana

171

0

#

171

13

4

72

90

261

34

Nebraska

234

0

0

234

77

17

87

180

415

44

Nevada

338

0

15

353

2

50

249

302

654

46

New Hampshire

169

0

0

169

2

32

243

277

447

62

New Jersey

856

3

524

1,382

49

154

1,383

1,586

2,968

53

New Mexico

311

0

0

311

7

17

86

110

421

26

New York

1,927

6

815

2,748

150

174

2,626

2,950

5,698

52

North Carolina

1,366

#

88

1,454

21

107

754

882

2,336

38

North Dakota

125

0

0

125

39

3

7

49

175

28

Northern Mariana Isl.

7

0

0

7

0

0

0

0

7

0

Ohio

1,473

0

165

1,638

48

81

890

1,019

2,657

38

Oklahoma

435

0

42

476

96

34

212

342

818

42

Oregon

497

0

0

497

12

56

365

433

931

47

Pennsylvania

1,904

3

458

2,365

103

203

1,190

1,496

3,862

39

Puerto Rico

411

0

0

411

1

11

106

119

529

22

Rhode Island

92

#

71

163

64

18

69

150

313

48

South Carolina

657

0

63

721

43

43

268

353

1,074

33

South Dakota

119

0

#

119

71

4

65

139

258

54

Tennessee

784

0

98

882

67

76

446

589

1,470

40

Texas

2,554

1

664

3,219

141

246

1,134

1,521

4,740

32

Utah

273

0

0

273

17

35

184

236

509

46

Vermont

147

0

0

147

4

11

73

88

234

37

Virgin Islands

28

0

0

28

0

*

0

*

*

*

Virginia

1,020

2

385

1,406

131

134

487

752

2,158

35

Washington

877

#

#

877

18

132

765

914

1,791

51

West Virginia

349

0

0

349

12

13

155

180

529

34

Wisconsin

765

0

92

856

37

64

424

525

1,382

38

Wyoming

66

0

1

67

3

3

46

52

119

44

Nationwide

38,169

23

7,173

45,365

2,777

4,123

25,089

31,990

77,355

41

# = Rounds to zero. * = Data withheld to maintain firm confidentiality.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 21

image25-00.jpg612x792

Table 11

Business End-User Switched Access Lines and VoIP Subscriptions by State as of June 30, 2013

(In Thousands)

ILECs

Non-ILECs

VoIP purchased as

VoIP purchased as

State

Switched

Switched

Total

Non-ILEC

Access

Bundled

with

Internet

Stand-

Total

Access

Bundled

with

Internet

Stand-

Total

% of Total

Lines

Lines

alone

alone

Alabama

411

0

7

418

261

14

59

334

752

44%

Alaska

120

0

#

120

*

#

#

*

*

*

American Samoa

4

0

0

4

0

0

0

0

4

0

Arizona

490

0

1

492

301

47

270

618

1,109

56

Arkansas

271

0

4

275

95

8

34

137

412

33

California

4,820

0

135

4,955

1,638

334

958

2,930

7,884

37

Colorado

454

0

0

454

327

44

142

513

967

53

Connecticut

426

0

17

443

144

23

74

241

684

35

Delaware

110

0

3

113

49

6

8

63

177

36

District of Columbia

418

0

7

425

221

19

62

302

727

42

Florida

1,739

#

58

1,797

1,250

146

280

1,676

3,473

48

Georgia

984

0

31

1,015

726

56

140

922

1,937

48

Guam

16

0

0

16

*

0

*

*

*

*

Hawaii

182

#

8

190

42

3

9

54

244

22

Idaho

142

0

0

142

53

9

26

88

230

38

Illinois

1,565

0

64

1,629

523

91

202

816

2,444

33

Indiana

649

0

10

659

167

32

66

266

925

29

Iowa

285

#

#

285

104

8

73

184

469

39

Kansas

258

0

5

263

122

15

74

211

474

45

Kentucky

405

0

17

422

164

11

41

215

637

34

Louisiana

451

0

11

462

200

16

101

316

778

41

Maine

100

0

#

100

128

5

16

148

249

60

Maryland

829

0

21

850

295

52

120

467

1,317

35

Massachusetts

739

0

14

752

490

58

65

613

1,365

45

Michigan

947

0

34

981

302

44

109

455

1,436

32

Minnesota

420

#

2

423

369

22

214

605

1,028

59

Mississippi

266

#

6

272

62

8

17

87

358

24

Missouri

601

0

23

623

210

17

82

310

933

33

Montana

101

0

0

101

31

4

32

67

167

40

Nebraska

187

0

0

187

109

10

62

182

368

49

Nevada

261

0

2

264

113

21

85

219

483

45

New Hampshire

92

0

1

93

90

12

15

116

209

55

New Jersey

1,008

0

33

1,040

549

66

232

846

1,886

45

New Mexico

182

0

0

182

54

8

29

91

273

33

New York

1,919

0

56

1,975

1,332

139

622

2,093

4,067

51

North Carolina

908

#

13

920

718

37

136

892

1,812

49

North Dakota

72

0

0

72

36

1

32

70

142

49

Northern Mariana Isl.

8

0

0

8

0

0

0

0

8

0

Ohio

1,150

0

31

1,181

376

50

160

586

1,767

33

Oklahoma

335

0

5

340

124

23

92

238

578

41

Oregon

295

0

0

295

202

30

55

286

580

49

Pennsylvania

1,275

0

32

1,307

1,151

81

163

1,394

2,701

52

Puerto Rico

149

0

0

149

97

7

27

132

281

47

Rhode Island

73

0

1

74

76

11

34

120

194

62

South Carolina

403

0

12

415

255

29

53

338

753

45

South Dakota

73

0

#

73

63

1

9

73

146

50

Tennessee

523

0

17

540

530

26

86

643

1,182

54

Texas

2,550

0

108

2,658

968

132

340

1,439

4,098

35

Utah

199

0

0

199

129

28

119

276

475

58

Vermont

64

0

#

64

37

3

5

44

108

41

Virgin Islands

18

0

0

18

0

*

0

*

*

*

Virginia

917

#

29

946

579

76

249

903

1,849

49

Washington

560

#

#

560

316

50

102

467

1,028

45

West Virginia

188

0

0

188

83

4

16

103

291

35

Wisconsin

652

#

20

672

228

17

74

319

991

32

Wyoming

73

0

0

73

12

2

22

36

109

33

Nationwide

32,335

#

836

33,172

16,555

1,953

6,092

24,600

57,772

43

# = Rounds to zero. * = Data withheld to maintain firm confidentiality.

U.S. Federal Communications Commission

Local Telephone Competition: Status as of June 30, 2013 22