Skip Navigation

Federal Communications Commission

English Display Options

Commission Document

Federal-State Universal Service Joint Board Releases Monitoring Report

Download Options

Released: December 29, 2011





UNIVERSAL SERVICE


MONITORING REPORT



CC DOCKET NO. 98-202



2011

(Data Received Through October 2011)







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







Table of Contents





Introduction and Summary ..................................................................…....…...

2 to 4

Service List ...........................................................................................…......….

5 to 9

Status of 2010 Monitoring Report Tables and Charts in the 2011 Report.........

10

New Tables and Charts in the 2011 Monitoring Report.....................................

11

1. Industry Revenues and Contributions .............................................…......…
1-1 to 1-32

2. Program Review ......................................................................…......……….
2-1 to 2-33

3. Subscribership and Penetration ........................................................….…….
3-1 to 3-15

4. Price Indices and Access Charge Rates...............................................…........
4-1 to 4-9

5. Network Usage ……………………................................................................
5-1 to 5-4


1

Universal Service Monitoring Report


CC Docket No. 98-202

2011


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 2011. These reports contain information
designed to monitor the impact of various universal service support mechanisms, and the methods used to
finance them. These mechanisms were adopted by the Federal Communications Commission (Commission),
based on recommendations from the Universal Service Joint Board. These reports are part of a monitoring
program created by the Commission in 1997 to replace a similar program in CC Docket No. 87-339 that
resulted in a series of nineteen Monitoring Reports. 2 The current program incorporates most of the
information that was collected under the previous program, and also new materials from the reports of the
administrator of the universal service support mechanisms, the Universal Service Administrative Company
(USAC). 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
(incumbent LECs, or ILECs). Because smaller carriers generally are exempt from most Commission
reporting requirements, the Monitoring Report incorporates data from several sources, including the National
Exchange Carrier Association (NECA) and 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, contains the only available
comprehensive data on all incumbent local exchange carriers, including data on such matters as the number of
telephone lines, calling volumes, and certain types of costs. It also includes some information on other
carriers.


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.


1
The last report was released in December 2010. Universal Service Monitoring Report, CC Docket No. 98-
202, 2010 (Data Received Through October 2010), 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.
2


This organization is a departure from the 2010 report. Section 9 on quality of service is not included
in this report. The separate sections on the support mechanisms have been combined into a single section,
which describes trends and changes in the support mechanisms since 2010.


Many of the tables that appeared in the 2010 report are no longer included in the published report, but
instead have been placed on the FCC website at www.fcc.gov/wcb/iatd/monitor.html. In general, these
tables are ones of such length that they are best presented as Excel files for ease of search and data
manipulation. Several new tables have been added to both the published report and to the FCC website. A
table at the end of this section lists the tables from the 2010 report and their status in the 2011 report. Another
table lists the new tables in the report.


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 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 at 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.


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.


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


4
Courtyard Level, 445 12th Street, SW, Washington, DC.
3

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) 305-3580

Schools and Libraries Support:


Craig Stroup (Federal) (202) 418-0989
John
Vu
(Federal)
(202)
418-2333
Peter
Pescosolido
(Connecticut)
(860)
827-2671

Rural Health Care Support:


Craig Stroup (Federal) (202) 418-0989
John
Vu
(Federal)
(202)
418-2333
Vicki
Helfrich
(Mississippi)
(601)
359-2660
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















4

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 Mignon Clyburn
Commissioner Michael J. Copps
Joint Board Chair
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 8-B115
445 12th Street SW, Room 8-A302
Washington, DC 20554
Washington, DC 20554
Michael.Copps@fcc.gov
Mignon.Clyburn@fcc.gov


Chairman James H. Cawley
Board Member John D. Burke
Pennsylvania Public Utility Commission
Vermont Public Service Board
400 North Street
112 State Street, 4th Floor
Commonwealth Keystone Building
Montpelier, VT 05620-2701
Harrisburg, PA 17120-3265
John.Burke@state.vt.us
jhc@state.pa.us


Commissioner Ann C. Boyle
Assistant Attorney General Simon ffitch
Nebraska Public Service Commission
Office of the Attorney General
300 The Atrium, 1200 N Street
Public Counsel Section
Lincoln, NE 68508-2020
800 5th Avenue, Suite 2000
Anne.Boyle@nebraska.gov
Seattle, WA 98104-3188

simonf@atg.wa.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@state.pa.us
Montpelier, VT 05620-2701

George.Young@state.vt.us



Brian Mahern
M. Gene Hand
Indiana Utility Regulatory Commission
Nebraska Public Service Commission
101 West Washington Street, Suite 1500 East
300 The Atrium, 1200 N Street
Indianapolis, IN 46204
P.O Box 94927
bmahern@urc.in.gov
Lincoln, NE 68509-4927

Gene.Hand@nebraska.gov


5

Peter Pescosolido
Natelle Dietrich
Connecticut Dept of Public Utility Control
Missouri Public Service Commission
10 Franklin Square
200 Madison Street
New Britain, CT 06051
Governor’s Office Building
Peter.Pescosolido@po.state.ct.us
Jefferson City, MO 65102

Natelle.Dietrich@psc.mo.gov



Robert Haga
Kerri DeYoung Phillips
California Public Utility Commission
Mass. Dept. of Telecommunications & Cable
505 Van Ness Avenue
1000 Washington Street, Suite 820
San Francisco, CA 94102
Boston, MA 02118-6500
RWH@cpuc.ca.gov
Kerri.DeYoung@state.ma.us



Vicki Helfrich
Christine Aarnes
Mississippi Dept. of Information Technology
Kansas Corporation Commission
3771 Eastwood Drive
1500 SW Arrowhead Rd.
Jackson, MS 39211
Topeka, KS 66604
Vicki.Helfrich@its.ms.gov
c.aarnes@kcc.ks.gov



Brad Ramsay
Barrett C. Sheridan
NARUC
Office of Consumer Advocate
1101 Vermont Ave. NW, Suite 200
555 Walnut Street, Forum Place, 5th Floor
Washington, DC 20005
Harrisburg, PA 17101-1923
jramsay@naruc.org
bsheridan@paoca.org



Joel Shifman
Jing Liu
Maine Public Utilities Commission
Washington Utilities & Transportation
242 State Street
Commission
State House Station 18
P.O. Box 47250
Augusta, ME 04333-0018
1300 South Evergreen Park Drive, SW
Joel.Shifman@maine.gov
Olympia, WA 98504-7250

jliu@utc.wa.gov


Angela Kronenberg
Lisa Hone
Office of Commissioner Clyburn
Office of Commissioner Copps
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 8A-302
445 12th Street SW, Room 8-B115C
Washington, DC 20554
Washington, DC 20554
Angela.Kronenberg@fcc.gov
Lisa.Hone@fcc.gov



6

Sharon Gillett, Chief
Carol Mattey, Deputy Chief
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 5-C354
445 12th Street SW, Room 5-C352
Washington, DC 20554
Washington, DC 20554
Sharon.Gillett@fcc.gov
Carol.Mattey@fcc.gov



Rebekah Goodheart, Associate Chief
Patrick Halley, Legal Advisor
Wireline Competition Bureau
Wireline Competition Bureau
Federal Communications Commission
Federal Communications Commission
445 12th Street SW, Room 5-C330
445 12th Street SW, Room 5-C347
Washington, DC 20554
Washington, DC 20554
Rebehah.Goodheart@fcc.gov
Patrick.Halley@fcc.gov



Trent Harkrader, Chief
Amy Bender, Deputy 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-A426
445 12th Street SW, Room 5-B425
Washington, DC 20554
Washington, DC 20554
Trent.Harkrader@fcc.gov
Amy.Bender@fcc.gov



Kimberly Scardino, Deputy Chief
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-B448
445 12th Street SW, Room 5-B438
Washington, DC 20554
Washington, DC 20554
Kimberly.Scardino@fcc.gov
Theodore.Burmeister@fcc.gov



Katie King
Gary Seigel
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-C408
Washington, DC 20554
Washington, DC 20554
Katie.King@fcc.gov
Gary.Seigel@fcc.gov


7


Jamie Susskind
Rebekah Bina
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-B418
445 12th Street SW, Room 5-B521
Washington, DC 20554
Washington, DC 20554
Jamie.Susskind@fcc.gov
Rebekah.Bina@fcc.gov



Alex Minard
Robert (Beau) Finley
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-A340
445 12th Street SW, Room 5-B541
Washington, DC 20554
Washington, DC 20554
Alexander.Minard@fcc.gov
Robert.Finley@fcc.gov


Ken Burnley
Joseph Cavender
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-A333
445 12th Street SW, Room 5-A236
Washington, DC 20554
Washington, DC 20554
Kenneth.Burnley@fcc.gov
Joseph.Cavender@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



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



8

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

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




9

Status of 2010 Monitoring Report Tables and Charts in the 2011 Report

2010
2011

Table/Chart #

Status

Table/Chart # Table/Chart Title

Table 1.1
Report
Table 1.1
Total Telecommunications Industry Revenues
Table 1.2
Report
Table 1.2
Telecommunications Industry Revenues by Service
Table 1.3
Report
Table 1.3
Telecommunications and Interconnected VoIP Revenues Reported by Type of Carrier
Table 1.4
Report
Table 1.4
Contribution Base Revenues By Program: 2009
Table 1.5
Report
Table 1.5
Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale: 2009
Table 1.6
Report
Table 1.6
Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2009
Table 1.7
Report
Table 1.7
Total Revenues: 2009
Table 1.8
Report
Table 1.8
Revenues by Type of Provider: 2009
Table 1.9
Report
Table 1.9
Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2009-2011
Table 1.10
Report
Table 1.10
Universal Service Program Requirements and Contribution Factors for 2010-2011
Table 1.11
Report
Table 1.11
Universal Service Support Mechanisms: 2009 & 2010
Chart 1.1
Report
Chart 1.1
Distribution of Universal Service Payments: 2010
Table 1.12
Report
Table 1.12
Universal Service Support Mechanisms by State: 2010
Tables 1.13 - 1.18
Website
Table 2.1
Report
Table 2.1
Lifeline Subscribers and Link Up Beneficiaries
Table 2.2
Report
Table 2.2
Low-Income Support Payments
Chart 2.1
Deleted
Table 2.3
Report
Table 2.3
Average Lifeline Monthly Support by ILEC Status and by State (December 2010)
Table 2.4
Report
Table 2.6
Low-Income Support Payments by State: 2010 (Years 1998 - 2010 are on the website)
Tables 2.5 - 2.7
Website
Table 2.8
Deleted
Tables 2.9 - 2.10
Website
Table 2.11
Deleted
Table 2.12
Report
Table 2.4
Federal Lifeline Average Benefits by State: 2010
Table 2.12
Report
Table 2.5
Link Up Average Benefits by State: 2010
Table 3.1
Report
Table 2.10
High-Cost Support Fund Disbursement History
Chart 3.1
Report
Chart 2.3
Total High-Cost Support Fund Disbursements and Reserve
Table 3.2
Report
Table 2.11
High-Cost Support Fund Disbursement History - ILECs and CETCs
Chart 3.2
Report
Chart 2.4
Total High-Cost Support Fund Disbursements (ILECs and CETCs) and CETC Reserve
Tables 3.3 - 3.37
Website
Table 4.1
Report
Table 2.19
Schools and Libraries Funding Commitments and Disbursements
Table 4.2
Report
Table 2.20
Schools and Libraries Funding Commitments and Disbursements by State and by Type of Applicant
Tables 4.3 - 4.5
Website
Tables 4.6 - 4.7
Deleted
Chart 4.1
Deleted
Table 5.1
Report
Table 2.21
Rural Health Care Funding Disbursements by Funding Year
Table 5.2
Report
Table 2.22
Rural Health Care Funding Commitments and Disbursements by State
Tables 5.3 - 5.4
Website
Table 6.1
Report
Table 3.1
Household Telephone Subscribership in the United States
Chart 6.1
Deleted
Table 6.2
Report
Table 3.4
Historical Telephone Penetration Estimates
Table 6.3
Report
Table 3.5
Telephone Penetration by Demographic Characteristics
Table 6.4
Report
Table 3.6
Telephone Penetration by State, 2003-2011 (Percentage of Occupied Housing Units with Telephone Service)
Table 6.5
Report
Table 3.7
Telephone Penetration by State, Selected Years (Percentage of Households with a Telephone In Unit)
Charts 6.2 - 6.8
Deleted
Chart 6.9
Report
Chart 3.1
Household Telephone Penetration by Income, 1997-2011
Table 6.6
Deleted
Table 6.7
Report
Table 3.8
Comparison of Penetration Rates by Level of Lifeline Assistance
Table 6.8
Report
Table 3.9
Comparison of Penetration Rates and Level of Lifeline Assistance for States
Tables 6.9 - 6.13
Deleted
Table 6.14
Report
Table 3.10
Household Penetration by State and Income, 2011
Tables 6.15 - 6.20
Deleted
Table 7.1
Report
Table 4.1
Long-Term Changes for Various Price Indices
Chart 7.1
Report
Chart 4.1
CPI All Goods and Services and CPI Telephone Services, 1960-2010
Table 7.2
Report
Table 4.2
Annual Changes in CPI Telephone Service and All Items Indices
Chart 7.2
Report
Chart 4.2
Annual Changes in CPI All Goods and Services and CPI Telephone Services
Table 7.3
Deleted
Chart 7.3
Deleted
Table 7.4
Report
Table 4.3
Monthly Consumer Price Indices
Tables 7.5 - 7.6
Deleted
Table 7.7
Report
Table 4.4
Interstate Per-Line Access Charges
Table 7.8
Report
Table 4.5
Interstate Per-Minute Access Charges
Table 7.9
Report
Table 4.6
Interstate Per-Line Access Charges by Carrier
Table 7.10
Report
Table 4.7
Interstate Per-Minute Access Charges by Carrier
Table 8.1
Report
Table 5.1
Interstate Switched Access Minutes of Use - Incumbent Local Exchange Carriers by Tier
Table 8.2
Deleted
Chart 8.1
Report
Chart 5.1
Interstate Switched Access Minutes for Incumbent Local Exchange Carriers
Table 8.3
Report
Table 5.2
ILEC Interstate Access Minutes by State
Table 8.3
Website
Table 8.4
Deleted
Tables 9.1 - 9.5
Deleted
10

New Tables and Charts in the 2011 Monitoring Report

Table/Chart # Table/Chart Title

Chart 2.1
Lifeline Subscribers and Link Up Beneficiaries
Table 2.7
Low-Income Support Received by ILECs and CETCs
Chart 2.2
Percent of Low-Income Support Received by CETCs
Table 2.8
Low-Income Support by Year-End Holding Company Structure: 2010
Table 2.9
Low-Income Support by Program and Year-End Holding Company Structure: 2010
Table 2.12
High-Cost Support Fund Disbursements - by Mechanism and State: 2010
Table 2.13
High-Cost Support Fund Disbursements by Year-End Holding Company Structure
Table 2.14
High-Cost Support Fund Disbursements by Holding Company: 2010
Table 2.15
Study Areas with the Highest Per-Line High-Cost Support Fund Disbursement: 2010
Table 2.16
High-Cost Support Fund Claims History
Chart 2.5
Total High-Cost Support Fund Claims and Reserve
Table 2.17
High-Cost Support Fund Claim History - ILECs and CETCs
Chart 2.6
Total High-Cost Support Fund Claims (ILECs and CETCs) and CETC Reserve
Table 2.18
High-Cost Support Fund Claims - by Mechanism and State: 2010
Table 3.2
Household Telephone Penetration by Income, 1997-2011
Table 3.3
Nominal Dollar Equivalents by Year
Chart 3.2
Telephone Penetration for Single-Family Households At or Below Multiples of the Federal
Poverty Guidelines (FPG), 1997-2011
11

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.1 Most of the
data for 2009 are from filings of annual Telecommunications Reporting Worksheets (FCC Form 499-A) made
with the Universal Service Administrative Company (USAC), the data collection agent for the FCC, on April
1, 2010. 2, 3 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 2010 and 2011 are
from FCC Form 499-Q quarterly filings.

Revenue Information

The Commission has established several universal service mechanisms, governed by Section 254 of
the Telecommunications Act of 1996, that help ensure that all Americans have access to affordable
telecommunications service. In Section 254(d) of the Telecommunications Act of 1996,4 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."5 The Commission implemented
this mandate in a 1997 Report and Order.6 The Commission subsequently designated USAC as the universal
service fund 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
Portions of this section are based on Industry Analysis and Technology Division, Wireline Competition
Bureau, Federal Communications Commission, Telecommunications Industry Revenues (May 2011).

2
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.

3
Telecommunications providers filed worksheets containing calendar year 2010 revenue data on April 1,
2011. 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 2010 filings
were not available for use in this report, and 2010 and 2011 data were based on the more abbreviated and
less reliable FCC Form 499-Q quarterly filings. April 2010 FCC Form 499-A filings containing 2009
revenues were used to compile the 2009 data. Compilation was based on a database prepared by USAC as
of December 2, 2010. Therefore, revised or new 2010 FCC Form 499-A filings that were received after
December 2, 2010, are not reflected herein.

4
Pub. L. No. 104-104, 110 Stat. 56 codified at 47 U.S.C. §§ 151 et seq.

5
47 U.S.C. § 254(d).

6
See Federal-State Joint Board on Universal Service, CC Docket No. 96-45, Report and Order, 12 FCC Rcd
8776 (1997) (subsequent history omitted).

1 - 1

Virtually all providers of telecommunications must file FCC Form 499-A each year.7 On June 21,
2006, the Commission ruled that providers of interconnected Voice over Internet Protocol (VoIP) service also
must file FCC Form 499-A.8 These filers first provided whole year revenue information starting with their
April 2008 FCC Form 499-A filings.

FCC Form 499-A asks each filer to report total (including intrastate), interstate, and international
revenues in two broad categories: those billed to universal service contributors for resale (carrier's carrier
revenues); and those billed to de minimis and other USF-exempt telecommunications providers and end users
(end-user revenues).9 Filers must provide further breakdowns of local, mobile wireless, and toll services.
(Local and toll services include fixed wireless.) The form also asks each filer to select up to five principal
business types that best describe its operations. These principal business types include:10


Audio Bridge Service Provider

Competitive Access Provider (CAP) or Competitive Local Exchange Carrier (CLEC)

Cellular, Personal Communications Service (PCS) and Specialized Mobile Radio (SMR)
Wireless Telephony Service Provider

Coaxial Cable

Incumbent Local Exchange Carrier (ILEC)

7
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.

8
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).
9
Telecommunications providers are considered de minimis and thus are not required to contribute to
universal service (or file Form 499-Q) if their annual contributions to universal service would be less than
$10,000. For universal service contribution purposes, underlying service providers treat de minimis
providers as end users.

10
The detailed definitions of the filer categories are contained in section III.A of the Instructions to the
Telecommunications Reporting Worksheet, FCC Form 499-A
available at www.fcc.gov/Forms/Form499-
A/499a-2011.pdf. The 2004 through 2006 forms included a category for “All Distance” carriers.

1 - 2


Interconnected VoIP

Interexchange Carrier (IXC)

Local Reseller

Operator Service Provider (OSP)

Other Local Service Provider

Other Mobile Service Provider

Other Toll Service Provider

Paging and Messaging Service Provider

Payphone Provider

Prepaid Calling Card Provider

Private Service Provider

Satellite Service Provider

Shared-Tenant Service Provider

Specialized Mobile Radio - Dispatch

Toll Reseller

Wireless Data Service Provider

The 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. Mobile wireless and
interconnected VoIP providers may use the interim safe harbor percentages to estimate the interstate portion of
their revenues.11

Form 499-A filings sometimes contain inaccurate data. Initial examination of the data occasionally
reveals provider types, revenue amounts and/or revenues reported in service categories inconsistent with the
known operations of the filer. Some corrections have been made based on supplemental filer information or
as a result of audits. Nonetheless, disaggregated data are likely to be less accurate than industry totals.

Table 1.1 shows the major components of telecommunications revenues for 2000 through 2010. This
table was created by aggregating revenue by major service classifications, i.e. local, mobile, and toll, and
separately by intrastate and interstate and international.


Tables 1.2 and 1.3 provide a look at detailed industry revenues over time. Generally, Form 499-A
revenue data can be aggregated in two distinct ways: by type of service provided and by the filer’s principal
business activity.12 Table 1.2 categorizes revenues by type of service and shows, for example, that providers

11
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%.

12
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
1 - 3

reported $118.1 billion in mobile service revenues for 2009. Note that this total includes mobile service
revenues from some providers whose principal business activity is not mobile service. In contrast, Table 1.3
shows that filers whose principal business activity is mobile service reported total revenues of $120.6 billion
for 2009, and this includes some revenues for fixed local and toll services.

Table 1.4 illustrates how data from the Form 499-A are used to develop a funding base for the USF.13
As noted above, providers are considered de minimis for USF purposes if their annual contribution is
expected to be less than $10,000.


Revenue data for individual filers are not available to the public. However, Tables 1.5 through 1.8
present detailed industry subtotals by type of service and type of business. Starting with the 2009 data, roll-up
statistics are presented for the five holding companies with the most end-user telecommunications and
interconnected VoIP revenues. In 2009, the top five providers were AT&T Inc., Deutsche Telekom AG,
Qwest Services Corp., Sprint Nextel Corporation, and Verizon Communications, Inc. In previous reports,
these tables showed detail for the Regional Bell Operating Companies (RBOCs).

Table 1.5 displays carrier’s carrier revenue by detailed service type including each Form 499-A
revenue line item. Table 1.6 displays similar detail for each of the revenue categories used to report
telecommunications service provided to end users.14 Table 1.7 combines data from Tables 1.5 and 1.6 with
data on non-telecommunications revenues to obtain total industry revenues. Table 1.8 presents revenue data
at a higher level of aggregation and includes detail on USF base; intrastate, interstate, international-to-
international, other international; and non-telecommunications revenues.

Table 1.9 presents data from quarterly filings of Form 499-Q for 2009, 2010, and 2011. Form 499-Q
is far less detailed than Form 499-A. Because Form 499-Q filings do not include a business type, filers were
categorized based on the principal business activity selected on their most recent Form 499-A filings. The
quarterly form asks filers to identify revenues as carrier’s carrier, end user, or non-telecommunications and to
indicate the interstate and international shares of each category. Unlike Form 499-A, the quarterly form does
not require filers to classify revenues by types of service. Also, international-to-international revenues are
included with non-telecommunications revenues rather than with end user revenues on the quarterly form.15


As noted above, the universal service rules prohibit the fund administrator from releasing company-
specific information contained in Form 499-A and Form 499-Q worksheets.16 Revenue data for individual
filers are not available to the public.


long distance category of Table 1.2 may contain some switched toll revenues, perhaps significant amounts in
some years.

13
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.

14
The revenue categories presented in Tables 1.5 through 1.7 are explained in the Form 499-A filing instructions.

15
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.

16
47 C.F.R. §54.711(b).

1 - 4

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.17


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.”18


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.19 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 1.10 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.20 This change also addressed
the reason given by service providers with declining revenue for marking up their 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 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.21

17
47 C.F.R. §54.709(a)(3).

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, Further Notice of Proposed Rulemaking and Report and Order, 17 FCC Rcd 3752
(
2002).

19
The Commission reduces the revenue estimates by 1% to account for uncollectibles.

20
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).

21
47 C.F.R. §54.712.
1 - 5



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 1.10
(discussed in more detail below) reflect expected USF contributions for the quarter rather than the industry's
actual contributions from a prior quarter.


Table 1.10 shows the program funding requirements for 2010 and 2011. 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.


Sprint Nextel Corporation and Cellco Partnership d/b/a Verizon Wireless, in separate transactions in
2008, each committed to surrender their high cost universal service support over five years.22 The first
installment of this voluntary commitment occurred in the fourth quarter of 2009.


Table 1.11 shows universal service disbursements on a mechanism-by-mechanism basis for 2009 and
2010.23 Chart 1.1 shows the 2010 information graphically.


Table 1.12 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 2010.24



22
See Applications of Cellco Partnership d/b/a Verizon Wireless and Atlantis Holdings LLC For Consent to
Transfer Control of Licenses, Authorizations, and Spectrum Manager and De Facto Transfer leasing
Arrangements and Petition for Declaratory Ruling that the Transaction is Consistent with Section 310(b)(4)
of the Communications Act, WT Docket No. 08-95, File Nos. 0003463892, et al., ITC-T/C-20080613-
00270, et al., File No. ISP-PDR-20080613-00012, Memorandum Opinion and Order and Declaratory Ruling,
23 FCC Rcd 17444 (2008); Sprint Nextel Corporation and Clearwire Corporation, Applications For Consent
to Transfer Control of Licenses, Leases, and Authorizations, WT Docket No. 08-94, File Nos. 0003462540 et
al.,
Memorandum Opinion and Order, 23 FCC Rcd 17570 (2008).

23
Dollar values in Table 1.11 differ from those in Table 1.10 due to the difference between projected demand
and actual disbursements. The values used in Tables 1.11 and 1.12 include disbursements that were
committed over several years but paid out in the appropriate calendar year. In Section 2, values for the
schools and libraries program and the rural health care program are reported based on fiscal year rather
than calendar year.


24
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 - 6

Table 1.1

Total Telecommunications Industry Revenues 1

(in Millions)

Preliminary 5

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Carrier's Carrier Revenues 2
Local Service 3
$36,621
$40,108
$38,412
$37,742
$38,546
$39,213
$39,392
$38,383
$39,200
$38,285
$42,363
Mobile Service
5,144
6,180
5,020
4,465
4,164
6,334
5,187
5,360
5,630
4,284
5,010
Toll Service
21,849
19,999
16,476
18,205
15,703
16,892
15,101
16,093
13,623
13,003
10,937
Intrastate
25,553
27,848
25,770
24,825
25,852
27,486
24,848
22,566
21,836
20,173
21,167
Interstate and International 4
38,060
38,439
34,138
35,587
32,561
34,953
34,831
37,270
36,617
35,399
37,143
Total
63,613
66,287
59,907
60,412
58,413
62,439
59,679
59,836
58,452
55,571
58,309
End User Revenues 2
Local Service 3
84,526
87,704
88,712
86,474
83,407
82,382
78,215
75,042
72,693
68,460
64,908
Mobile Service
56,857
68,507
76,501
85,254
94,404
100,743
110,096
115,865
118,855
113,861
110,912
Toll Service
87,767
79,302
67,222
58,983
55,511
52,358
49,278
48,709
47,365
43,159
40,702
Intrastate
147,465
155,347
154,815
150,889
153,265
154,310
157,653
158,380
157,737
149,493
144,022
Interstate and International 4
81,685
80,165
77,619
79,822
80,057
81,173
79,937
81,235
81,176
75,988
72,499
Total
229,149
235,513
232,434
230,711
233,322
235,482
237,589
239,615
238,913
225,481
216,521
Total Revenues
Local Service 3
121,147
127,812
127,123
124,216
121,953
121,595
117,607
113,425
111,893
106,745
107,270
Mobile Service
62,000
74,687
81,521
89,718
98,568
107,076
115,283
121,225
124,485
118,145
115,921
Toll Service
109,615
99,301
83,697
77,188
71,214
69,250
64,379
64,802
60,988
56,162
51,639
Intrastate
173,018
183,195
180,585
175,714
179,117
181,796
182,501
180,946
179,573
169,666
165,189
Interstate and International 4
119,745
118,605
111,756
115,409
112,617
116,125
114,768
118,505
117,793
111,387
109,642
Total
$292,762
$301,799
$292,341
$291,123
$291,734
$297,921
$297,268
$299,451
$297,365
$281,052
$274,831
Note: Detail may not add to totals due to rounding.
1 Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements.
2 Carrier's carrier 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 revenues. See Table 1.4 for further details on
contribution bases.
3 Payphone revenues are included with local service revenues in this table.
4 Revenues from calls that both originate and terminate in foreign points are reported as end-user revenues, and are included in this table through 2009, but are not
included in the universal service contribution base. These revenues are not included in preliminary 2010 data.
5 Preliminary 2010 data are based on FCC Form 499-Q quarterly filings through February 28, 2011. 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 2010
are based on type of filer rather than on data filed by service.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 7

Table 1.2

Telecommunications Industry Revenues by Service

(in Millions)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Local Exchange
$69,947
$72,346
$71,320
$70,606
$68,238
$66,506
$63,264
$62,790
$60,871
$56,839
Pay Telephone
1,932
1,585
1,192
1,063
1,002
924
659
470
379
268
Local Private Line
16,864
21,966
23,070
22,415
23,840
25,673
25,448
24,307
26,314
27,098
Other Local
3,249
3,391
3,418
3,242
2,944
3,331
3,884
3,227
3,321
3,531
Subscriber Line Charges
11,563
12,127
12,758
12,136
11,715
11,113
10,827
10,141
9,283
8,363
Access 17,017
15,096
13,955
12,972
12,352
11,822
11,392
10,543
9,776
8,778
Universal Service Surcharges
on Local Service Bills 1
575
1,301
1,410
1,783
1,862
2,227
2,133
1,947
1,948
1,869
Additional Revenues from TRS
Worksheets
Total Local Service and Payphone
121,147
127,812
127,123
124,216
121,953
121,595
117,607
113,425
111,893
106,745
Wireless Service
61,505
74,006
80,678
88,023
96,450
104,489
112,442
117,939
120,934
114,625
Universal Service Surcharges
on Local Service Bills 1
495
681
842
1,696
2,118
2,587
2,841
3,286
3,551
3,520
Additional Revenues from TRS
Worksheets
Total Mobile Service
62,000
74,687
81,521
89,718
98,568
107,076
115,283
121,225
124,485
118,145
Operator 1
11,406
10,389
7,902
6,567
6,542
6,631
5,577
5,874
5,664
4,340
Non-Operator Switched Toll
75,183
65,325
54,475
50,178
46,387
44,876
41,570
42,518
38,959
34,943
Long Distance Private Line
16,189
16,402
15,108
15,316
13,906
13,264
12,739
12,080
11,683
11,649
Other Long Distance
3,372
3,259
2,445
2,222
1,801
2,021
2,154
1,661
2,071
2,708
Universal Service Surcharges
on Local Service Bills 1
3,467
3,927
3,767
2,905
2,577
2,458
2,340
2,669
2,611
2,522
Additional Revenues from TRS
Worksheets
Total Toll Service
109,615
99,301
83,697
77,188
71,214
69,250
64,379
64,802
60,988
56,162
Total Telecommunications
292,762
301,799
292,341
291,122
291,735
297,921
297,269
299,451
297,366
281,052
Non-Telecommunications 42,261
48,036
60,406
65,186
71,493
86,764
101,061
131,615
151,494
158,859
Total Reported Revenues
335,023
349,835
352,747
356,308
363,227
384,685
398,329
431,066
448,860
439,911
Service Reported as:
Intrastate 173,018
183,195
180,585
175,714
179,129
181,796
182,501
180,946
179,573
169,666
Interstate and International
119,745
118,605
111,756
115,409
112,605
116,125
114,768
118,505
117,793
111,387
Total Telecommunications
$292,762
$301,799
$292,341
$291,123
$291,734
$297,921
$297,268
$299,451
$297,365
$281,052
Note: Detail may not add to totals due to rounding. Some data for prior years have been revised.
1 Charges on end-user bills identified as recovering state or federal universal service contributions are reported separately from local, wireless and toll
revenues. Reported amounts are apportioned between local, wireless and toll service based on the proportions of local, wireless and toll intrastate and
interstate revenues by type of carrier.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 8

Table 1.3

Telecommunications and Interconnected VoIP Revenues Reported by Type of Carrier

(in Millions)
Service Provider Category 1
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Incumbent Local Exchange Carriers
$116,158 $117,885 $114,990 $109,480 $105,496 $103,561
$99,997
$93,885
$89,732
$83,451
Competitive Access Providers (CAPs)
and Competitive Local Exchange
Carriers (CLECs)
9,814
12,998
13,043
15,509
15,112
16,930
17,276
17,476
20,980
16,880
Interconnected VoIP
514
2,394
3,541
9,379
Local Resellers
879
1,393
1,538
721
1,215
630
460
594
540
461
Other Local Exchange Carriers
11
329
406
338
245
216
124
181
288
344
Private Service Providers
39
15
281
267
532
770
1,080
1,031
1,051
1,190
Shared-Tenant Service Providers
202
46
42
22
22
22
19
14
39
35
Competitors of Incumbent LECs
10,945
14,781
15,309
16,857
17,126
18,568
19,473
21,690
26,440
28,289
Fixed Local Service Providers
127,103
132,666
130,300
126,337
122,622
122,128
119,470
115,575
116,172
111,740
Payphone Providers
972
836
641
523
445
481
435
388
275
209
Mobile Telephony Including Cellular,
59,823
71,887
78,568
88,168
98,329
107,834
116,971
123,968
127,730
120,007
Personal Communications Service
(PCS) and SMR Telephony Carriers
Paging & Messaging Service
3,102
2,197
1,473
1,007
872
579
555
607
426
361
Specialized Mobile Radio (SMR)
191
188
206
33
46
226
48
188
40
71
Dispatch
Mobile Data Service Providers and
Other Mobile Service Providers
164
324
220
135
218
169
178
180
119
157
Mobile Service Providers
63,280
74,596
80,467
89,342
99,465
108,809
117,752
124,943
128,314
120,597
Interexchange Carriers (IXCs)
87,311
81,272
68,146
61,246
51,589
46,856
44,083
43,701
37,358
32,780
Operator Service Providers (OSPs)
635
611
554
567
523
548
631
595
1,063
940
Prepaid Calling Card Providers
727
133
460
812
1,635
1,828
1,713
2,195
1,999
1,869
Satellite Service Providers
336
373
406
663
721
714
444
708
860
910
Toll Resellers
10,641
8,797
9,279
9,294
12,192
13,362
9,943
8,314
8,256
8,021
Audio Bridge Service Providers
42
58
273
1,185
Other Toll Carriers
1,758
2,516
2,089
2,339
2,543
3,195
2,756
2,973
2,795
2,802
Toll Service Providers
101,407
93,702
80,934
74,920
69,204
66,503
59,611
58,545
52,604
48,507
Total Telecommunications Revenues
$292,762 $301,799 $292,341 $291,123 $291,734 $297,921 $297,268 $299,451 $297,365
$281,052
1 Filers are asked to select for themselves a service provider category that best describes their operations. The choices have changed over the years. For
example, for 2003 through 2005, some filers identified themselves as all distance carriers. These filers have been reclassified to be consistent with prior
classifications. Starting with the 2007 FCC Form 499-A filing, which reported 2006 revenue data, some filers identified themselves as interconnected VoIP
providers and some filers first began reporting revenues for these services.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 9

Table 1.4

Contribution Base Revenues By Program (2009) 1

(in Millions)
2009

Revenues subject to universal service contribution

Billed interstate and international end-user revenues [ Line 412(e) + Line 420(d) + Line 420(e) ]
$75,988
less
revenues for international-to-international services [ Line 412(e) ]
$576
less
international revenues of international-only filers and international revenues that were excluded
$3,393
because of the LIRE exemption 2
less
interstate and other international revenues for 1,775 filers who are de minimis or otherwise exempt
from universal service support requirements
$49
less
uncollectible contribution base revenues [ Line 422(d) + Line 422(e) ]
$1,075
(Does not include uncollectible amounts associated with revenues excluded above.)
equals
$70,895

Revenues subject to TRS contribution

Interstate and international end-user revenues
$75,988
less
interstate and international revenues for 144 filers who identify themselves as private service
445
providers or as shared-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
388
because it was provided to carriers that do not contribute to universal service support
mechanisms [ Line 511(b) ]
equals
$75,155

Revenues subject to NANPA and LNP contribution

Total telecommunications service end-user revenues (including intrastate, interstate and international)
$225,481
less
telecommunications revenues for 533 filers who identify themselves as private service providers,
806
shared-tenant 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
412
was provided to carriers that do not contribute to universal service support mechanisms [ Line 511 (a) ]
equals
$224,262
1 This 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 December 2, 2010.
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.
2 A provider receives the LIRE Exemption, and its international revenues are 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.
Source: FCC Form 499.
1 - 10

Table 1.5

Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale (2009) 1

(in Millions)
Data from FCC Form 499-A

Five Holding Companies

Incumbent Local Exchange Carriers

With Most End-User Revenues

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate International
Total
Fixed local service
303
Monthly service, local calling, connection charges,
vertical features, and other local exchange service
including subscriber line and PICC charges to IXCs
.1 Provided as unbundled network elements (UNEs)
$1,596
$95
$0
$1,691
$142
$13
*
$155
.2 Provided under other arrangements
819
491
27
1,337
67
61
0
128
Total Line 303
2,415
585
27
3,028
209
74
*
283
304
Per-minute charges for originating or terminating calls




.1 Provided under state or federal access tariff
1,838
1,888
0
3,726
1,621
900
2
2,522
.2 Provided as unbundled network elements or other




contract arrangement
445
330
0
775
96
8
*
104
Total Line 304
2,283
2,218
0
4,501
1,717
908
2
2,626
305
Local private line & special access
644
12,547
*
13,191
400
1,995
*
2,395
306
Payphone compensation from toll carriers
8
12
0
19
1
3
*
3
307
Other local telecommunications service revenues
2,079
523
0
2,602
40
12
0
51
308
Universal service support revenues received from
645
960
0
1,605
647
1,991
*
2,639
Federal or state sources












Total fixed local service provided for resale
8,074
16,844
27
24,946
3,013
4,982
2
7,996





Mobile service (including wireless telephony, paging &





messaging, and other mobile services)





309
Monthly, activation, and message charges except toll
2,321
729
0
3,050
28
31
*
59








Total mobile service provided for resale
2,321
729
0
3,050
28
31
*
59




Toll service




310
Operator and toll calls with alternative billing
4
95
2
101
*
*
0
*
arrangements (credit card, collect, international




call-back, etc.)




311
Ordinary long distance (direct dialed MTS, customer
949
2,035
731
3,715
3
1
*
4
toll-free 8xx service, "10-10 calls", associated




monthly account maintenance, PICC pass-through,




and other switched services not reported above)




312
Long distance private line services
90
1,021
18
1,129
6
5
0
10
313
Satellite services
0
*
*
*
*
0
0
*
314
All other long distance services
1
48
57
105
5
*
*
5










Total toll service provided for resale
1,044
3,199
808
5,051
13
6
*
20




315
Total service provided for resale (carrier's carrier)
$11,439
$20,772
$835
$33,047
$3,054
$5,019
$3
$8,075
Note: Amounts may not add to totals due to rounding.
* Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 11

Table 1.5

Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale (2009) 1

Continued

(in Millions)
Data from FCC Form 499-A

CLECs and other Local Competitors

Payphone Providers

Other than Affiliates of the Top Five

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service
303
Monthly service, local calling, connection charges,
vertical features, and other local exchange service
including subscriber line and PICC charges to IXCs
.1 Provided as unbundled network elements (UNEs)
$66
$188
$1
$254
*
*
$0
*
.2 Provided under other arrangements
147
48
*
195
0
0
0
0
Total Line 303
212
236
1
449
*
*
0
*
304
Per-minute charges for originating or terminating calls








.1 Provided under state or federal access tariff
549
514
3
1,066
0
0
0
0
.2 Provided as unbundled network elements or other








contract arrangement
351
123
36
509
0
0
0
0
Total Line 304
900
637
39
1,576
0
0
0
0
305
Local private line & special access
1,346
714
55
2,115
0
0
0
0
306
Payphone compensation from toll carriers
1
2
*
3
22
40
1
63
307
Other local telecommunications service revenues
26
17
*
43
*
*
*
*
308
Universal service support revenues received from
46
42
*
87
*
*
*
*
Federal or state sources
























Total fixed local service provided for resale
2,530
1,648
96
4,274
23
40
1
64








Mobile service (including wireless telephony, paging &








messaging, and other mobile services)








309
Monthly, activation, and message charges except toll
13
4
0
17
0
0
0
0
















Total mobile service provided for resale
13
4
0
17
0
0
0
0








Toll service








310
Operator and toll calls with alternative billing
3
1
*
3
1
1
*
1
arrangements (credit card, collect, international








call-back, etc.)








311
Ordinary long distance (direct dialed MTS, customer
382
602
154
1,139
*
*
0
*
toll-free 8xx service, "10-10 calls", associated








monthly account maintenance, PICC pass-through,








and other switched services not reported above)








312
Long distance private line services
288
540
24
852
0
0
0
0
313
Satellite services
1
184
*
185
0
0
0
0
314
All other long distance services
7
6
*
12
*
*
0
*
















Total toll service provided for resale
680
1,332
179
2,191
1
1
*
1








315
Total service provided for resale (carrier's carrier)
$3,224
$2,983
$274
$6,481
$23
$41
$1
$65
Note: Amounts may not add to totals due to rounding.
* Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 12

Table 1.5

Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale (2009) 1

Continued

(in Millions)
Data from FCC Form 499-A

Mobile Telephony

Other Mobile

Other than Affiliates of the Top Five

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service
303
Monthly service, local calling, connection charges,
vertical features, and other local exchange service
including subscriber line and PICC charges to IXCs
.1 Provided as unbundled network elements (UNEs)
$7
$0
*
$8
*
$0
$0
*
.2 Provided under other arrangements
*
0
0
*
0
0
0
0
Total Line 303
8
0
*
8
*
0
0
*
304
Per-minute charges for originating or terminating calls








.1 Provided under state or federal access tariff
1
2
*
3
*
*
0
*
.2 Provided as unbundled network elements or other








contract arrangement
11
2
0
13
1
*
0
1
Total Line 304
11
4
*
15
1
*
0
1
305
Local private line & special access
28
1
0
29
*
20
*
20
306
Payphone compensation from toll carriers
0
0
0
0
*
*
*
*
307
Other local telecommunications service revenues
2
1
*
2
38
1
*
40
308
Universal service support revenues received from
343
132
0
475
5
*
0
5
Federal or state sources
























Total fixed local service provided for resale
392
137
*
530
44
22
*
66








Mobile service (including wireless telephony, paging &








messaging, and other mobile services)








309
Monthly, activation, and message charges except toll
772
274
4
1,050
43
6
4
52
















Total mobile service provided for resale
772
274
4
1,050
43
6
4
52








Toll service








310
Operator and toll calls with alternative billing
4
1
*
5
0
0
0
0
arrangements (credit card, collect, international








call-back, etc.)








311
Ordinary long distance (direct dialed MTS, customer
66
23
*
89
0
4
2
7
toll-free 8xx service, "10-10 calls", associated








monthly account maintenance, PICC pass-through,








and other switched services not reported above)








312
Long distance private line services
1
*
0
1
0
0
0
0
313
Satellite services
0
0
0
0
0
0
0
0
314
All other long distance services
1
1
*
3
*
*
0
*
















Total toll service provided for resale
72
25
*
98
*
4
2
7








315
Total service provided for resale (carrier's carrier)
$1,236
$436
$5
$1,677
$87
$32
$6
$125
Note: Amounts may not add to totals due to rounding.
* Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 13

Table 1.5

Revenues from Telecommunications and Interconnected VoIP Service Provided for Resale (2009) 1

Continued

(in Millions)
Data from FCC Form 499-A

Toll Carriers

Total All Filers

Other than Affiliates of the Top Five

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service
303
Monthly service, local calling, connection charges,
vertical features, and other local exchange service
including subscriber line and PICC charges to IXCs
.1 Provided as unbundled network elements (UNEs)
$1
*
$0
$1
$1,813
$295
$1
$2,109
.2 Provided under other arrangements
13
8
1
21
1,045
608
28
1,681
Total Line 303
13
8
1
22
2,857
903
30
3,790
304
Per-minute charges for originating or terminating calls








.1 Provided under state or federal access tariff
33
26
*
59
4,041
3,331
5
7,376
.2 Provided as unbundled network elements or other








contract arrangement
*
*
0
*
903
462
36
1,402
Total Line 304
33
27
*
60
4,944
3,793
41
8,778
305
Local private line & special access
152
95
24
270
2,570
15,372
79
18,021
306
Payphone compensation from toll carriers
*
*
1
1
32
56
2
89
307
Other local telecommunications service revenues
13
7
*
20
2,197
561
*
2,759
308
Universal service support revenues received from
27
10
0
37
1,714
3,135
*
4,849
Federal or state sources
























Total fixed local service provided for resale
238
146
26
409
14,314
23,819
152
38,285








Mobile service (including wireless telephony, paging &








messaging, and other mobile services)








309
Monthly, activation, and message charges except toll
34
18
4
56
3,210
1,061
12
4,284
















Total mobile service provided for resale
34
18
4
56
3,210
1,061
12
4,284








Toll service








310
Operator and toll calls with alternative billing
12
37
414
463
23
133
417
574
arrangements (credit card, collect, international








call-back, etc.)








311
Ordinary long distance (direct dialed MTS, customer
597
871
2,659
4,127
1,997
3,536
3,547
9,081
toll-free 8xx service, "10-10 calls", associated








monthly account maintenance, PICC pass-through,








and other switched services not reported above)








312
Long distance private line services
214
385
232
831
599
1,950
274
2,823
313
Satellite services
3
62
83
148
4
246
83
333
314
All other long distance services
11
19
37
67
25
74
94
193
















Total toll service provided for resale
838
1,372
3,426
5,636
2,648
5,939
4,416
13,003








315
Total service provided for resale (carrier's carrier)
$1,110
$1,536
$3,455
$6,101
$20,173
$30,819
$4,579
$55,571
Note: Amounts may not add to totals due to rounding.
* Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 14

Table 1.6

Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2009

(in Millions)
Data from FCC Form 499-A

Five Holding Companies

Incumbent Local Exchange Carriers

With Most End-User Revenues

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service
404
Monthly service, local calling, connection charges,
vertical features, and other local exchange service








charges except for federally tariffed subscriber line








charges and PICC charges:








.1 & .3 Traditional Circuit Switched
$28,584
$17
*
$28,601
$6,318
$19
$0
$6,336
.4 & .5 Interconnected Voice over Internet Protocol
$244
$161
*
$406
*
$1
$0
$2
405
Tariffed subscriber line charges and PICC charges
126
5,547
0
5,673
42
1,540
*
1,581
levied by a local exchange carrier on a no-PIC








customer
















Total local exchange (Line 404 + Line 405)
28,954
5,725
*
34,679
6,360
1,559
*
7,919








406
Local private line and special access service
2,790
3,633
1
6,424
530
469
*
1,000








407
Payphone coin revenues (local and long distance)
61
*
*
61
14
*
*
14








408
Other local telecommunications service revenues
345
10
0
355
26
1
*
27








Line 403 surcharges on fixed local service 1
156
1,060
*
1,216
26
226
0
252
















Total fixed local service provided to end users
32,306
10,428
2
42,735
6,956
2,257
*
9,212








Mobile service (including wireless telephony, paging &








messaging, and other mobile services)
















409
Monthly and activation charges
64,435
19,877
184
84,496
303
55
0
359








410
Message charges including roaming, but excluding
8,480
2,601
118
11,199
29
13
*
42
toll charges
















Line 403 surcharges on mobile service 1
462
2,673
5
3,140
2
8
0
10
















Total mobile service provided to end users
73,377
25,151
307
98,835
334
76
*
410








Toll service








411
Prepaid calling card (including card sales to
48
54
37
138
*
*
*
*
customers and non-carrier distributors) reported at








face value of cards
















412
International calls that both originate and terminate in
0
0
262
262
0
0
0
0
foreign points
















413
Operator and toll calls with alternative billing
150
151
86
386
4
*
*
4
arrangements (credit card, collect, international call-








back, etc.) other than revenues reported on Line 412
















414
Ordinary long distance (direct-dialed MTS, customer
5,839
8,918
2,854
17,611
220
45
3
268
toll-free 8xx service, "10-10" calls, associated








monthly account maintenance, PICC pass-through, and








other switched services not reported above), including








long distance charges bundled with local exchange service








415
Long distance private line services
1,794
4,722
161
6,677
47
4
*
51








416
Satellite services
1
5
8
14
0
0
0
0








417
All other long distance services
93
495
18
607
2
*
0
2








Line 403 surcharges on toll service 1
38
1,733
116
1,887
1
5
*
6
















Total toll service provided to end users
7,963
16,078
3,540
27,581
274
54
3
332








Total telecommunications and interconnected VoIP
113,646
51,657
3,849
169,151
7,564
2,387
3
9,954
service provided to end users
422
Uncollectible revenue/bad debt expense associated
2,007
684
58
2,749
136
30
*
166
with end user revenues other than Line 412
423
Net universal service contribution base revenues
$111,639
$50,973
$3,529
$166,140
$7,428
$2,357
$3
$9,788
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 15

Table 1.6

Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2009

Continued

(in Millions)
Data from FCC Form 499-A

CLECs and other Local Competitors

Payphone Providers

Other than Affiliates of the Top Five

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service
404
Monthly service, local calling, connection charges,
vertical features, and other local exchange service








charges except for federally tariffed subscriber line








charges and PICC charges:








.1 & .3 Traditional Circuit Switched
$5,150
$167
$8
$5,325
*
$0
$0
*
.4 & .5 Interconnected Voice over Internet Protocol
$5,300
$1,312
$154
$6,765
$0
$0
$0
$0
405
Tariffed subscriber line charges and PICC charges
56
986
1
1,043
0
0
0
0
levied by a local exchange carrier on a no-PIC








customer
















Total local exchange (Line 404 + Line 405)
10,505
2,466
163
13,134
*
0
0
*








406
Local private line and special access service
1,054
391
10
1,455
1
*
*
1








407
Payphone coin revenues (local and long distance)
1
*
*
1
86
5
*
91








408
Other local telecommunications service revenues
318
32
1
351
*
1
*
1








Line 403 surcharges on fixed local service 1
59
317
3
378
0
*
0
*
















Total fixed local service provided to end users
11,937
3,206
176
15,318
87
5
*
93








Mobile service (including wireless telephony, paging &








messaging, and other mobile services)
















409
Monthly and activation charges
19
19
1
39
*
*
*
*








410
Message charges including roaming, but excluding
2
4
*
5
*
*
0
*
toll charges
















Line 403 surcharges on mobile service 1
*
3
*
3
0
0
0
0
















Total mobile service provided to end users
21
25
1
47
*
*
*
1








Toll service








411
Prepaid calling card (including card sales to
3
3
7
13
*
*
*
1
customers and non-carrier distributors) reported at








face value of cards
















412
International calls that both originate and terminate in
0
0
51
51
0
0
*
*
foreign points
















413
Operator and toll calls with alternative billing
9
3
2
14
46
4
*
50
arrangements (credit card, collect, international call-








back, etc.) other than revenues reported on Line 412
















414
Ordinary long distance (direct-dialed MTS, customer
1,438
1,795
349
3,582
*
*
*
*
toll-free 8xx service, "10-10" calls, associated








monthly account maintenance, PICC pass-through, and








other switched services not reported above), including








long distance charges bundled with local exchange service








415
Long distance private line services
336
764
59
1,159
0
0
0
0








416
Satellite services
*
7
17
24
*
*
*
*








417
All other long distance services
11
37
2
49
*
*
0
*








Line 403 surcharges on toll service 1
8
290
10
308
0
0
0
0
















Total toll service provided to end users
1,804
2,900
496
5,200
46
4
1
50








Total telecommunications and interconnected VoIP
13,762
6,131
673
20,565
134
9
1
144
service provided to end users
422
Uncollectible revenue/bad debt expense associated
227
87
8
322
1
*
*
1
with end user revenues other than Line 412
423
Net universal service contribution base revenues
$13,535
$6,043
$614
$20,192
$133
$9
$1
$143
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 16

Table 1.6

Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2009

Continued

(in Millions)
Data from FCC Form 499-A

Mobile Telephony

Other Mobile

Other than Affiliates of the Top Five

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service
404
Monthly service, local calling, connection charges,
vertical features, and other local exchange service








charges except for federally tariffed subscriber line








charges and PICC charges:








.1 & .3 Traditional Circuit Switched
$9
*
$0
$9
$11
*
$0
$11
.4 & .5 Interconnected Voice over Internet Protocol
$8
$1
$0
$10
$3
$1
*
$4
405
Tariffed subscriber line charges and PICC charges
0
7
0
7
0
0
0
0
levied by a local exchange carrier on a no-PIC








customer
















Total local exchange (Line 404 + Line 405)
17
9
0
26
13
1
*
14








406
Local private line and special access service
21
1
0
22
20
2
0
21








407
Payphone coin revenues (local and long distance)
0
0
0
0
*
*
*
*








408
Other local telecommunications service revenues
2
*
0
2
13
*
*
13








Line 403 surcharges on fixed local service 1
*
1
0
2
*
*
0
*
















Total fixed local service provided to end users
40
12
0
52
46
3
*
49








Mobile service (including wireless telephony, paging &








messaging, and other mobile services)
















409
Monthly and activation charges
8,779
2,583
15
11,377
334
40
*
374








410
Message charges including roaming, but excluding
1,706
400
17
2,123
9
1
1
11
toll charges
















Line 403 surcharges on mobile service 1
43
310
*
354
1
4
0
5
















Total mobile service provided to end users
10,528
3,293
32
13,853
344
45
1
390








Toll service








411
Prepaid calling card (including card sales to
7
4
5
15
*
*
*
*
customers and non-carrier distributors) reported at








face value of cards
















412
International calls that both originate and terminate in
0
0
6
6
0
0
0
0
foreign points
















413
Operator and toll calls with alternative billing
6
*
1
7
0
0
*
*
arrangements (credit card, collect, international call-








back, etc.) other than revenues reported on Line 412
















414
Ordinary long distance (direct-dialed MTS, customer
80
45
86
211
6
3
4
13
toll-free 8xx service, "10-10" calls, associated








monthly account maintenance, PICC pass-through, and








other switched services not reported above), including








long distance charges bundled with local exchange service








415
Long distance private line services
*
*
*
1
1
3
0
4








416
Satellite services
*
*
0
*
*
*
*
*








417
All other long distance services
*
4
2
7
*
*
0
*








Line 403 surcharges on toll service 1
*
6
1
7
*
*
*
*
















Total toll service provided to end users
93
59
101
253
7
7
4
18








Total telecommunications and interconnected VoIP
10,661
3,364
134
14,159
397
55
5
457
service provided to end users
422
Uncollectible revenue/bad debt expense associated
553
134
2
689
4
*
*
4
with end user revenues other than Line 412
423
Net universal service contribution base revenues
$10,108
$3,230
$125
$13,464
$394
$54
$5
$453
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 17

Table 1.6

Revenues from Telecommunications and Interconnected VoIP Service Provided to End Users: 2009

Continued

(in Millions)
Data from FCC Form 499-A

Toll Carriers

Total All Filers

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service
404
Monthly service, local calling, connection charges,
vertical features, and other local exchange service








charges except for federally tariffed subscriber line








charges and PICC charges:








.1
& .3 Traditional Circuit Switched
$665
$41
*
$706
$40,736
$243
$9
$40,987
.4
& .5 Interconnected Voice over Internet Protocol
$15
$12
*
$27
$5,571
$1,489
$154
$7,213
405
Tariffed subscriber line charges and PICC charges
1
57
0
58
225
8,137
1
8,363
levied by a local exchange carrier on a no-PIC








customer
















Total local exchange (Line 404 + Line 405)
681
109
1
791
46,531
9,869
164
56,563








406
Local private line and special access service
64
69
21
154
4,480
4,565
32
9,077








407
Payphone coin revenues (local and long distance)
9
2
1
12
171
8
1
179








408
Other local telecommunications service revenues
17
5
1
24
721
50
2
772








Line 403 surcharges on fixed local service 1
2
17
2
21
243
1,621
5
1,869
















Total fixed local service provided to end users
774
201
25
1,001
52,146
16,112
203
68,460








Mobile service (including wireless telephony, paging &








messaging, and other mobile services)
















409
Monthly and activation charges
143
55
9
207
74,014
22,628
209
96,851








410
Message charges including roaming, but excluding
88
18
5
111
10,314
3,037
141
13,491
toll charges
















Line 403 surcharges on mobile service 1
1
7
*
9
509
3,005
5
3,520
















Total mobile service provided to end users
232
80
14
326
84,837
28,670
354
113,861








Toll service








411
Prepaid calling card (including card sales to
107
43
1,859
2,008
164
104
1,907
2,175
customers and non-carrier distributors) reported at








face value of cards
















412
International calls that both originate and terminate in
0
0
257
257
0
0
576
576
foreign points
















413
Operator and toll calls with alternative billing
373
114
69
555
587
272
157
1,016
arrangements (credit card, collect, international call-








back, etc.) other than revenues reported on Line 412
















414
Ordinary long distance (direct-dialed MTS, customer
1,525
1,520
1,133
4,178
9,108
12,327
4,428
25,862
toll-free 8xx service, "10-10" calls, associated








monthly account maintenance, PICC pass-through, and








other switched services not reported above), including








long distance charges bundled with local exchange service








415
Long distance private line services
199
410
325
934
2,377
5,903
546
8,826








416
Satellite services
16
129
266
411
17
141
291
449








417
All other long distance services
97
848
124
1,068
203
1,384
145
1,733








Line 403 surcharges on toll service 1
7
281
26
314
55
2,314
153
2,522
















Total toll service provided to end users
2,324
3,344
4,057
9,725
12,511
22,445
8,203
43,159








Total telecommunications and interconnected VoIP
3,330
3,625
4,096
11,052
149,493
67,227
8,761
225,481
service provided to end users
422
Uncollectible revenue/bad debt expense associated
123
62
42
227
3,050
997
110
4,157
with end user revenues other than Line 412
423
Net universal service contribution base revenues
$3,207
$3,564
$3,798
$10,569
$146,443
$66,230
$8,075
$220,748
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 18

Table 1.7

Total Revenues: 2009

(in Millions)
Data from FCC Form 499-A

Five Holding Companies

Incumbent Local Exchange Carriers

With Most End-User Revenues

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service other than payphone
$40,312
$27,261
$29
$67,601
$9,954
$7,235
$2
$17,191
[Lines 303, 304, 305, 307, 308, 404, 405, 406, 408,








and a portion of 403] 1
















Payphone
68
12
*
80
14
3
*
17
[Lines 306 and 407]
















Mobile service
75,698
25,880
307
101,885
362
107
*
469
[Lines 309, 409, 410, and a portion of 403] 1
















Toll service
9,007
19,276
4,348
32,631
287
61
3
351
[Lines 310, 311, 312, 313, 314, 411, 412, 413, 414,








415, 416, 417, and a portion of 403] 1
















Total telecommunications and IVoIP service revenues
125,085
72,429
4,684
202,198
10,617
7,406
6
18,029
















Total telecommunications and IVoIP service provided
11,439
20,772
835
33,047
3,054
5,019
3
8,075
for resale (from Table 5)
















Total telecommunications and IVoIP service provided to
113,646
51,657
3848.6
169,151
7,564
2,387
3
9,954
end users (from Table 6)
















Total telecommunications and IVoIP service revenues
125,085
72,429
4,684
202,198
10,617
7,406
6
18,029








418
Enhanced services, inside wiring maintenance, billing
and collection, customer premises equipment,








published directory, dark fiber, Internet access,








cable TV program transmission, and other








non-telecommunications service revenues
.1 bundled with circuit switched local exchange service
- - -
- - -
- - -
1,385
- - -
- - -
- - -
869
.2 bundled with interconnected VoIP local exchange service
- - -
- - -
- - -
0
- - -
- - -
- - -
*
.3 other
- - -
- - -
- - -
95,289
- - -
- - -
- - -
3,175








419
Gross billed revenues from all sources
- - -
- - -
- - -
298,871
- - -
- - -
- - -
22,073
421
Uncollectible revenue/bad debt expense associated
3,592
281
with gross billed revenues
Total collected revenues from all sources
$295,279
$21,793
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 19

Table 1.7

Total Revenues: 2009

Continued

(in Millions)
Data from FCC Form 499-A

CLECs and other Local Competitors

Payphone Providers

Other than Affiliates of the Top Five

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service other than payphone
$14,465
$4,852
$271
$19,588
$2
$1
*
$2
[Lines 303, 304, 305, 307, 308, 404, 405, 406, 408,








and a portion of 403] 1
















Payphone
2
2
*
4
108
45
1
154
[Lines 306 and 407]
















Mobile service
34
28
1
63
*
*
*
1
[Lines 309, 409, 410, and a portion of 403] 1
















Toll service
2,484
4,232
675
7,391
47
4
1
52
[Lines 310, 311, 312, 313, 314, 411, 412, 413, 414,








415, 416, 417, and a portion of 403] 1
















Total telecommunications and IVoIP service revenues
16,985
9,114
947
27,046
157
50
2
209
















Total telecommunications and IVoIP service provided
3,224
2,983
274
6,481
23
41
1
65
for resale (from Table 5)
















Total telecommunications and IVoIP service provided to
13,762
6,131
673
20,565
134
9
1
144
end users (from Table 6)
















Total telecommunications and IVoIP service revenues
16,985
9,114
947
27,046
157
50
2
209








418
Enhanced services, inside wiring maintenance, billing
and collection, customer premises equipment,








published directory, dark fiber, Internet access,








cable TV program transmission, and other








non-telecommunications service revenues
.1 bundled with circuit switched local exchange service
- - -
- - -
- - -
1,428
- - -
- - -
- - -
0
.2 bundled with interconnected VoIP local exchange service
- - -
- - -
- - -
2,177
- - -
- - -
- - -
0
.3 other
- - -
- - -
- - -
27,316
- - -
- - -
- - -
66








419
Gross billed revenues from all sources
- - -
- - -
- - -
57,968
- - -
- - -
- - -
275
421
Uncollectible revenue/bad debt expense associated
632
4
with gross billed revenues
Total collected revenues from all sources
$57,336
$271
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 20

Table 1.7

Total Revenues: 2009

Continued

(in Millions)
Data from FCC Form 499-A

Mobile Telephony

Other Mobile

Other than Affiliates of the Top Five

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service other than payphone
$432
$149
*
$582
$90
$25
*
$115
[Lines 303, 304, 305, 307, 308, 404, 405, 406, 408,








and a portion of 403] 1
















Payphone
0
0
0
0
*
*
*
*
[Lines 306 and 407]
















Mobile service
11,300
3,567
36
14,903
387
51
4
442
[Lines 309, 409, 410, and a portion of 403] 1
















Toll service
165
84
102
351
7
11
6
25
[Lines 310, 311, 312, 313, 314, 411, 412, 413, 414,








415, 416, 417, and a portion of 403] 1
















Total telecommunications and IVoIP service revenues
11,897
3,800
139
15,836
484
87
11
582
















Total telecommunications and IVoIP service provided
1,236
436
5
1,677
87
32
$6
125
for resale (from Table 5)
















Total telecommunications and IVoIP service provided to
10,661
3,364
134
14,159
397
55
5
457
end users (from Table 6)
















Total telecommunications and IVoIP service revenues
11,897
3,800
139
15,836
484
87
11
582








418
Enhanced services, inside wiring maintenance, billing
and collection, customer premises equipment,








published directory, dark fiber, Internet access,








cable TV program transmission, and other








non-telecommunications service revenues
.1 bundled with circuit switched local exchange service
- - -
- - -
- - -
1,183
- - -
- - -
- - -
18
.2 bundled with interconnected VoIP local exchange service
- - -
- - -
- - -
0
- - -
- - -
- - -
*
.3 other
- - -
- - -
- - -
3,522
- - -
- - -
- - -
792








419
Gross billed revenues from all sources
- - -
- - -
- - -
20,540
- - -
- - -
- - -
1,393
421
Uncollectible revenue/bad debt expense associated
721
6
with gross billed revenues
Total collected revenues from all sources
$19,819
$1,387
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 21

Table 1.7

Total Revenues: 2009

Continued

(in Millions)
Data from FCC Form 499-A

Toll Carriers

Total All Filers

Other than Affiliates of the Top Five

Line
Intrastate
Interstate
International
Total
Intrastate
Interstate
International
Total
Fixed local service other than payphone
$1,003
$345
$49
$1,397
$66,258
$39,867
$352
$106,477
[Lines 303, 304, 305, 307, 308, 404, 405, 406, 408,








and a portion of 403] 1
















Payphone
9
2
2
13
202
63
3
268
[Lines 306 and 407]
















Mobile service
266
98
18
382
88,047
29,732
366
118,145
[Lines 309, 409, 410, and a portion of 403] 1
















Toll service
3,162
4,716
7,483
15,361
15,159
28,384
12,619
56,162
[Lines 310, 311, 312, 313, 314, 411, 412, 413, 414,








415, 416, 417, and a portion of 403] 1
















Total telecommunications and IVoIP service revenues
4,440
5,161
7,552
17,153
169,666
98,047
13,340
281,052
















Total telecommunications and IVoIP service provided
1,110
1,536
3,455
6,101
20,173
30,819
4,579
55,571
for resale (from Table 5)
















Total telecommunications and IVoIP service provided to
3,330
3,625
4,096
11,052
149,493
67,227
8,761
225,481
end users (from Table 6)
















Total telecommunications and IVoIP service revenues
4,440
5,161
7,552
17,153
169,666
98,047
13,340
281,052








418
Enhanced services, inside wiring maintenance, billing
and collection, customer premises equipment,








published directory, dark fiber, Internet access,








cable TV program transmission, and other








non-telecommunications service revenues
.1 bundled with circuit switched local exchange service
- - -
- - -
- - -
142
- - -
- - -
- - - 5,026
.2 bundled with interconnected VoIP local exchange service
- - -
- - -
- - -
21
- - -
- - -
- - -
2,198
.3 other
- - -
- - -
- - -
21,476
- - -
- - -
- - -
151,635








419
Gross billed revenues from all sources
- - -
- - -
- - -
38,792
- - -
- - -
- - -
439,911
421
Uncollectible revenue/bad debt expense associated
335
5,570
with gross billed revenues
Total collected revenues from all sources
$38,458
$434,342
Note: Amounts may not add to totals due to rounding.
*
Denotes values greater than $0 but less than $500,000.
1 Includes a proportionate share of amounts reported on Line 403 as surcharges or other amounts on bills identified as recovering state or federal
universal service contributions.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 22

Table 1.8

Revenues by Type of Provider (2009) 1

(in Millions)
Data from FCC Form 499-A

Telecommunications and

Telecommunications and

Interconnected VoIP Service

Interconnected VoIP Service

Provided for Resale 2

Provided to End Users 2

Fixed

Mobile

Toll

Total

Fixed

Mobile

Toll

Total

Local

Local

Incumbent Local Exchange Carriers (ILECs)
31,196
112
155
31,463
48,947
455
2,586
51,988
Competitive Access Providers (CAPs) and Competitive
Local Exchange Carriers (CLECs)
3,338
1
1,580
4,919
8,969
11
2,980
11,961
Local Resellers
78
14
14
105
248
3
105
356
Private Service Providers
122
2
439
563
126
2
500
627
Shared-Tenant Service Providers
*
0
*
*
27
*
8
35
Coaxial Cable IVoIP Providers
682
*
62
745
5,024
*
1,416
6,441
Interconnected VoIP (IVoIP) Providers
91
0
167
258
1,640
30
265
1,935
Total IVoIP
774
*
229
1,003
6,665
30
1,681
8,376
Other Local Service Providers
154
0
127
281
51
1
11
63
Total Local Competitors
4,465
17
2,390
6,871
16,086
47
5,285
21,417
Fixed Local Service Providers
35,661
129
2,545
38,335
65,032
502
7,871
73,405
Payphone Service Providers
64
0
1
65
93
1
50
144
Mobile Telephony Including Cellular, Personal
Communications Service (PCS) and SMR Telephony
Carriers
791
4,047
99
4,936
90
112,636
2,346
115,071
Paging & Messaging Service Providers
3
8
4
16
3
335
8
345
Specialized Mobile Radio (SMR) Dispatch
13
*
0
14
1
53
3
57
Mobile Data and Other Mobile Service Providers
50
43
2
96
45
9
7
61
Mobile Service Providers
857
4,099
106
5,062
139
113,033
2,364
115,535
Interexchange Carriers (IXCs)
1,543
15
5,874
7,433
2,822
87
22,438
25,348
Operator Service Providers (OSPs)
*
0
34
34
9
0
897
906
Prepaid Calling Card Providers
1
0
370
371
5
129
1,363
1,498
Satellite Service Providers
0
4
291
295
2
23
590
615
Toll Resellers
80
24
1,835
1,939
285
84
5,713
6,082
VoIP Toll Providers
18
0
313
332
8
1
457
466
Audio Bridge Service Providers
7
0
168
175
40
1
969
1,010
Other Toll Carriers
52
13
1,466
1,531
25
1
447
473
Toll Service Providers
1,703
56
10,351
12,110
3,197
326
32,874
36,397
All Filers
$38,285
$4,284
$13,003
$55,571
$68,460
$113,861
$43,159
$225,481
Five Holding Companies with Highest End-User
Revenue
$24,946
$3,050
$5,051
$33,047
$42,735
$98,835
$27,580
$169,151
Note: Amounts may not add to totals due to rounding.
* Denotes values greater than $0 but less than $500,000.
1 Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by a LEC affiliate that identifies itself as an IXC are included
in the table as IXC revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these
bundles were reported as toll revenues on FCC Form 499-A filings of LEC toll affiliates.
2 Telecommunications and interconnected VoIP service provided for resale consists of service provided to other contributors to federal universal service support mechanisms
for resale. Revenues from services provided to firms that are de minimis or exempt from federal universal service are reported as end-user revenues and are subject to
contribution requirements.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 23

Table 1.8

Revenues by Type of Provider (2009) 1

Continued

(in Millions)
Data from FCC Form 499-A

Telecommunications and Interconnected

Universal

VoIP Service Revenues

Other

Total

Service

Revenues

Billed

Contribution

Intrastate

Interstate

International

Other

Total 4

Revenues

Base Revenues

to

International

2, 3

International

Incumbent Local Exchange Carriers (ILECs)
11,263
51,279
32,166
0
6
83,451
26,188
109,639
Competitive Access Providers (CAPs) and
Competitive Local Exchange Carriers (CLECs)
3,984
10,217
6,292
43
329
16,880
7,843
24,723
Local Resellers
104
291
99
*
71
461
216
677
Private Service Providers
430
365
726
5
94
1,190
9,567
10,757
Shared-Tenant Service Providers
9
26
7
0
2
35
89
124
Coaxial Cable IVoIP Providers
1,644
5,286
1,703
*
197
7,185
4,517
11,702
Interconnected VoIP (IVoIP) Providers
1,027
968
975
3
247
2,193
11,003
13,196
Total IVoIP
2,671
6,253
2,678
3
444
9,379
15,520
24,898
Other Local Service Providers
13
189
153
0
1
344
431
775
Total Local Competitors
7,210
17,341
9,955
51
941
28,289
33,666
61,954
Fixed Local Service Providers
18,474
68,620
42,121
51
947
111,740
59,854
171,593
Payphone Service Providers
10
157
50
*
2
209
66
275
Mobile Telephony Including Cellular, Personal
Communications Service (PCS) and SMR Telephony
Carriers
30,306
87,746
30,703
6
1,552
120,007
65,096
185,103
Paging & Messaging Service Providers
43
310
51
0
*
361
176
537
Specialized Mobile Radio (SMR) Dispatch
6
66
4
0
1
71
444
515
Mobile Data and Other Mobile Service Providers
12
115
33
0
9
157
198
355
Mobile Service Providers
30,367
88,237
30,792
6
1,562
120,597
65,914
186,510
Interexchange Carriers (IXCs)
17,599
9,104
19,146
269
4,261
32,780
14,787
47,568
Operator Service Providers (OSPs)
159
737
192
3
8
940
172
1,112
Prepaid Calling Card Providers
1,288
213
72
21
1,563
1,869
213
2,082
Satellite Service Providers
405
46
228
163
472
910
3,793
4,702
Toll Resellers
4,234
2,128
4,253
39
1,601
8,021
3,044
11,065
VoIP Toll Providers
434
149
99
2
548
798
370
1,167
Audio Bridge Service Providers
952
44
898
16
228
1,185
9,805
10,991
Other Toll Carriers
384
230
197
5
1,573
2,004
841
2,846
Toll Service Providers
25,454
12,652
25,084
519
10,253
48,507
33,026
81,533
All Filers
$74,305
$169,666
$98,046
$576
$12,764
$281,052
$158,859
$439,911
Five Holding Companies with Highest End-User
Revenue
$54,502
$125,085
$72,428
$262
$4,422
$202,198
$96,673
$298,871
Note: Amounts may not add to totals due to rounding.
* Denotes values greater than $0 but less than $500,000.
1 Revenues are classified by the primary carrier type of each reporting entity. For example, revenues reported by a LEC affiliate that identifies itself as an IXC are included in the table as IXC
revenues. Many LECs provided both local and long distance services as part of package plans. Most of the revenues for the toll portion of these bundles were reported as toll revenues on FCC
Form 499-A filings of LEC toll affiliates.
2
Telecommunications and interconnected VoIP service provided for resale consists of service provided to other contributors to federal universal service support mechanisms for resale. Revenue
from services provided to firms that are de minimis or exempt from federal universal service are reported as end-user revenues and are subject to contribution requirements.
3
Universal service contribution base revenues consist of all interstate and international end-user telecommunications revenues except for international-to-international revenues reported on Line
412. The totals include revenues from filers who are de minimus or otherwise exempt from contributing. This table also includes international revenues that were exempt from contribution
because of the LIRE Exemption. See Table 4 for details on exempt amounts. Contribution base amounts reported as uncollectible on Line 422 have been removed.
4 Carriers report non-telecommunications service revenues on Line 418. This category includes enhanced services, inside wiring maintenance, billing and collection, customer premises
equipment, published directory, dark fiber, internet, foreign carrier, and other non-U.S. telecommunications service revenues.
Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (May 2011).
1 - 24

Table 1.9

Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2009

(in Millions)
Data from FCC Form 499-Q

Projected Revenues for 2009 1

Historic Revenues Reported for 2009 1

Interstate and International

Intrastate, interstate and International

Interstate and

International

Billed to End Collected from

Implied

Billed to

Billed to End

Billed to End

Total Revenue

Uncollectible

Users 2

End Users 2 3

Resellers 2

Users 2

2

Users 2

Rate 3

($millions)
($millions)
($millions)
($millions)
($millions)
($millions)
Regional Bell Operating Companies 4
$9,226
$9,128
1.0 %
$23,362
$42,608
$65,970
$9,124
Other Incumbent Local Exchange
2,475
2,428
1.9
7,840
10,130
17,970
2,441
Carriers (ILECs)
Total ILECs
11,700
11,555
1.2
31,202
52,738
83,940
11,565
Competitive Access Providers
4,300
4,240
2.5
4,789
11,822
16,611
3,997
(CAPs) and Competitive Local
Exchange Carriers (CLECs)
Local Resellers
90
83
8.4
79
359
437
81
Private Service Providers
448
440
2.2
4,492
605
5,097
418
Shared-Tenant Service Providers
10
10
8.9
11
38
49
10
Coaxial Cable IVoIP Providers 5
Interconnected VoIP (IVoIP) Providers 5
1,364
1,340
4.2
255
3,653
3,907
1,379

Total IVoIP 5
Other Local Service Providers
15
13
2.8
179
56
235
14
Total Local Competitors
7,186
7,072
2.9
10,563
21,113
31,676
7,121
Fixed Local Service Providers
18,887
18,628
1.7
41,765
73,852
115,617
18,686
Payphone Service Providers
16
16
3.7
73
190
263
11
Mobile Telephony Including Cellular,
32,285
31,696
2.0
5,718
118,630
124,349
31,776
Personal Communications Service
(PCS) and SMR Telephony Carriers
Paging & Messaging Service Providers
48
48
12.2
35
360
395
44
Specialized Mobile Radio (SMR) Dispatch
3
3
2.6
11
57
68
4
Mobile Data and Other Mobile Service
13
13
0.3
38
75
113
11
Providers
Mobile Service Providers
32,350
31,761
2.0
5,802
119,122
124,924
31,835
Interexchange Carriers (IXCs)
18,680
18,465
1.2
8,144
24,760
32,904
17,994
Operator Service Providers (OSPs)
199
180
10.9
36
913
948
177
Prepaid Calling Card Providers
1,396
1,386
0.8
262
1,443
1,705
1,277
Satellite Service Providers
365
363
1.1
255
430
685
414
Toll Resellers
4,556
4,382
3.1
1,961
5,845
7,806
4,192
VoIP Toll Provider 5
358
336
4.8
323
361
684
337
Audio Bridge Service Provider 6
906
896
0.7
24
564
588
546
Other Toll Carriers
432
424
1.0
1,515
466
1,369
387
Toll Service Providers
26,891
26,431
1.6
12,520
34,783
47,302
25,324
All Filers
$78,143
$76,835
1.8 %
$60,159
$227,947
$288,107
$75,856
LIRE Exemption 7
($3,331)
Total less LIRE 7
$73,505
See notes at end of table.
1 - 25

Table 1.9

Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2010

Continued

(in Millions)
Data from FCC Form 499-Q

Projected Revenues for 2010 1

Historic Revenues Reported for 2010 1

Interstate and International

Intrastate, interstate and International

Interstate and

International

Billed to End Collected from

Implied

Billed to

Billed to End Total Revenue

Billed to End

Users 2

Uncollectible

End Users 2 3

Resellers 2

Users 2

2

Users 2

Rate 3

($millions)
($millions)
($millions)
($millions)
($millions)
($millions)
Regional Bell Operating Companies 4
$8,796
$8,716
0.9 %
Other Incumbent Local Exchange
2,346
2,307
1.7
Carriers (ILECs)
Total ILECs
11,142
11,023
1.1
$30,998
$47,384
$78,383
$10,755
Competitive Access Providers
4,203
4,139
1.5
5,018
11,808
16,826

4,147

(CAPs) and Competitive Local
Exchange Carriers (CLECs)
Local Resellers
91
86
5.2
130
353
483

102

Private Service Providers
458
450
1.7
5,105
643
5,748

435

Shared-Tenant Service Providers
10
10
2.6
10
33
43

11

Coaxial Cable IVoIP Providers 5
360

2,843

3,203

774

Interconnected VoIP (IVoIP) Providers 5
1,674
1,647
1.6
337

4,019
4,356

1,582


Total IVoIP 5
490

4,563

5,053

1,491

Other Local Service Providers
14
13
1.7
182
68
250
14
Total Local Competitors
7,769
7,648
1.6
11,507
22,041
33,547

7,685

Fixed Local Service Providers
18,910
18,671
1.3
42,505
69,425
111,931

18,439

Payphone Service Providers
11
11
2.4
45
163
207

11

Mobile Telephony Including Cellular,
30,509
29,967
1.8
5,119
110,971
116,090

29,220

Personal Communications Service
(PCS) and SMR Telephony Carriers
Paging & Messaging Service Providers
40
40
0.7
23
297
320

38

Specialized Mobile Radio (SMR) Dispatch
7
7
0.1
15
57
72

9

Mobile Data and Other Mobile Service
14
14
0.9
53
64
117

15

Providers
Mobile Service Providers
30,570
30,028
1.8
5,210
111,388
116,598

29,282

Interexchange Carriers (IXCs)
16,593
16,402
1.2
6,667
23,178
29,846

16,326

Operator Service Providers (OSPs)
164
146
10.9
14
789
803

147

Prepaid Calling Card Providers
1,199
1,182
1.4
413
1,413
1,826

1,027

Satellite Service Providers
386
384
0.6
304
428
733

401

Toll Resellers
4,402
4,250
3.4
1,734
5,775
7,509

4,134

VoIP Toll Provider 5
460
446
3.5
307
515
822

475

Audio Bridge Service Provider 6
900
885
1.6
185
976
1,162

885

Other Toll Carriers
597
592
1.0
1,190
740
1,930

670

Toll Service Providers
24,700
24,287
1.7
10,815
33,815
44,630

24,064

All Filers
$74,192
$72,997
1.6 %
58,575
$
$ 214,791

$ 273,366

$71,796
LIRE Exemption 7
($3,500)
Total less LIRE 7
$69,497
See notes at end of table.
1 - 26

Table 1.9

Carrier Telecommunications Revenues Reported on FCC Form 499-Q: 2011

Continued

(in Millions)
Data from FCC Form 499-Q

Projected Revenues for 2011 1

Historic Revenues Reported for First Half 2011 1

Interstate and International

Intrastate, Interstate and International

Interstate and

International

Billed to End Collected from

Implied

Billed to

Billed to End Total Revenue

Billed to End

Users 2

End Users 2 3

Uncollectible

Resellers 2

Users 2

2

Users 2

Rate 3

($millions)
($millions)
($millions)
($millions)
($millions)
($millions)
Regional Bell Operating Companies 4
%
Other Incumbent Local Exchange
Carriers (ILECs)
Total ILECs
10,225
10,039
1.8
15,904
22,117
38,021
5,095
Competitive Access Providers
4,061
4,003
1.4
2,444
5,669
8,113
1,973
(CAPs) and Competitive Local
Exchange Carriers (CLECs)
Local Resellers
98
94
4.3
78
156
234
49
Private Service Providers
656
476
27.3
2,536
336
2,872
225
Shared-Tenant Service Providers
9
9
3.8
0
13
13
4
Coaxial Cable IVoIP Providers 5
1,750

1,732

1.0

295
3555
3851
925
Interconnected VoIP (IVoIP) Providers 5
1,456

1,431

1.7
147
1,297
1,444
646

Total IVoIP 5
3,206

3,163

1.3
443
4852
5295
1570
Other Local Service Providers
14
14
0.2
104
34
139
7
Total Local Competitors
8,044
7,760
3.5
5,605
11,060
16,665
3,828
Fixed Local Service Providers
18,269
17,799
2.6
21,509
33,177
54,686
8,923
Payphone Service Providers
9
9
0.6
20
75
94
4
Mobile Telephony Including Cellular,
29,814
29,325
1.6
2,846
53,353
56,199
14,550
Personal Communications Service
(PCS) and SMR Telephony Carriers
Paging & Messaging Service Providers
35
34
1.1
11
134
145
17
Specialized Mobile Radio (SMR) Dispatch
6
6
2.0
12
27
39
2
Mobile Data and Other Mobile Service
15
15
0.5
36
30
66
6
Providers
Mobile Service Providers
29,870
29,380
1.6
2,905
53,544
56,449
14,576
Interexchange Carriers (IXCs)
15,018
14,881
0.9
3,277
11,010
14,287
7,830
Operator Service Providers (OSPs)
139
126
9.7
4
411
414
66
Prepaid Calling Card Providers
933
897
3.9
227
587
814
389
Satellite Service Providers
368
365
0.8
103
175
278
157
Toll Resellers
4,327
4,232
2.2
1,040
3,160
4,201
2,155
VoIP Toll Provider 5
390
385
1.2
176
220
396
210
Audio Bridge Service Provider 6
1,009
1,005
0.5
76
528
604
513
Other Toll Carriers
662
660
0.3
570
369
939
327
Toll Service Providers
22,847
22,550
1.3
5,473
16,460
21,934
11,647
All Filers
$70,995
$69,739
1.8 %
$29,907
$103,256
$133,164
$35,151
LIRE Exemption 7
($3,096)
Total less LIRE 7
$66,642
See notes on next page.
1 - 27

Notes for Table 1.9
Note: Amounts may not add to totals due to rounding.
1
Each quarter, telecommunications providers that are required to contribute to universal service support mechanisms must file an FCC Form 499-Q. The FCC Form 499-Q collects
total, interstate and international billed revenues for the most recently completed calendar quarter (historic revenues) and also collects projected interstate and international -- but not
total -- revenues for the upcoming calendar quarter (projected revenues.) Some telecommunications providers file the form even though they are not required to contribute. USAC
estimates revenues for most non-filers.
In order to avoid double assessment, the FCC Form 499-Q distinguishes between revenues for U.S telecommunications and interconnected VoIP service provided for resale, commonly
called "carrier's carrier" revenues, and USF assessable contribution base revenues, commonly called "end-user revenues." Services provided for resale consist of U.S.
telecommunications and interconnected VoIP service provided to another contributing filer for resale as U.S. telecommunications or interconnected VoIP service. Revenues from
telecommunications and interconnected VoIP service provided to non-filers (actual customers) and to firms that are de minimis or otherwise exempt from federal universal service
support mechanisms are reported as end-user revenue.
2
This table does not include revenue from “international-to-international” telephone calls, which are defined as U.S. telecom calls that traverse U.S. territory but both originate and
terminate in foreign points. Such revenues are exempt from universal service contribution and therefore are not included with historical assessable end-user telecommunications
revenues on Line 116 of the FCC Form 499-Q, or with projected gross billed or projected collected revenues on Line 119 or Line 120, respectively. International-to-international
revenues are included with Line 117 - (all other goods and services) and Line 118 - (gross-billed revenues from all sources), but these lines are not summarized in the tables herein.
International-to-international revenues are included with end-user telecommunications revenues on Line 412 of the FCC Form 499-A and are included in contribution bases for
telecommunications relay service, local number portability, and number administration.
3
Filers contribute to USF based on the interstate and international telecommunications revenues that they collect from end users. On the FCC Form 499-Q, filers report interstate and
international billed end-user historical revenues for the most recently completed quarter. Filers also project the amount of contribution base (i.e. interstate and international end-user
revenue) they expect to bill in the upcoming quarter and how much of this billed amount they expect to collect. (For example, the May 2010 filings contain historic revenue data for th
Q1of 2010 and projected revenue data for Q3 of 2010.) The difference between projected billed revenues and projected collected revenues is the implied uncollectible amount.
Projected collected end-user interstate and international revenues form the USF contribution base. Filers report actual billed and uncollectible amounts in their FCC Form 499-A
filings. This information is used to true-up contributions.
4
In 1984, the Regional Bell Operating Companies (RBOCs) consisted of Ameritech, Bell Atlantic, Bell South, NYNEX, Pacific Telesis, Southwestern Bell and US West. As a result of
mergers, by 2009 the RBOCs consisted of AT&T, Qwest, and Verizon. Where operations were sold to other carriers, subsequent revenues are included with ILEC revenues.
Beginning in 2010, RBOC revenues are included with ILEC revenues.
5
The filer category Coaxial Cable was added to the 2004 FCC Form 499-A. The category interconnected Voice over Internet Protocol (“Interconnected VoIP”) was added to the revised
2006 FCC Form 499-A, dated August 2006. By 2009, most firms that self identified as Coaxial Cable reported that most of their local service revenues were derived from
interconnected VoIP service. Information from recent FCC Form 477 filings, FCC Form 499-A filings, and company websites have been used to reclassify companies so that
interconnected VoIP providers that operate using their own coaxial cable TV facilities are classified as “Coaxial Cable.” Filers that self identified as interconnected VoIP but reported
only toll revenue on their FCC Form 499-A filings have been reclassified as “VoIP Toll”.
Note that many filers that self identified as incumbent local exchange carriers (ILECs) or competitive local exchange carriers (CLECs) also reported interconnected VoIP revenues.
The quarterly revenues reported by these entities are included with ILEC and CLEC revenues, not with interconnected VoIP provider revenues in these tables. Prior to Q4 of 2008, a
few audio bridging (teleconferencing) service providers reported their revenues as telecommunications. Starting with Q4 of 2008, all audio bridging service revenues must be reported
as telecommunications.
6
Prior to the fourth quarter of 2008, a few audio bridging (teleconferencing) service providers reported their revenues as telecommunications. Starting with the fourth quarter of 2008,
all audio bridging service revenues must be reported as telecommunications. See Request for Review by InterCall, Inc. of Decision of the Universal Service Administrator, CC Docket
No. 96-45, Order, 23 FCC Rcd 10731(2008).
7
The amounts actually used to calculate contribution factors are shown below. These amounts total less than the total projected collected revenues shown in the table. One reason is
that amounts in the table reflect all amounts shown in the FCC Form 499-Q data base, including estimated amounts for non-filers and amounts reported by filers that are
de minimis or
do not contribute because they provide only international services. In addition, filers are not required to contribute on international revenues if their interstate end-user revenues
represent less than 12% of their combined interstate and international end-user revenues -- a test referred to as the Limited International Revenue Exemption (LIRE) or the "12%" rule.
In addition, the totals shown above include estimated amounts for some carriers. Finally, some difference may be explained by late filings and corrections made to the data base after
the Commission calculated contribution factors.
Contribution bases used to calculate factors
Calendar
Calendar
Calendar
2009
2010
2011
($millions)
($millions)
($millions)
First Quarter
$18,871.0
$17,254.2
$16,674.4
Second Quarter
$18,714.7
$16,637.9
$16,403.5
Third Quarter
$18,032.8
$17,575.6
$16,848.7
Fourth Quarter
$17,164.4
$17,441.4
$16,681.6
Total Projected Collected
$72,783.0
$68,909.1
$66,608.2
Source:
Data filed on FCC Forms 499-Q and 499-A Worksheets. See also: Industry Analysis and Technology Division, Wireline
Competition Bureau, Telecommunications Industry Revenues (May 2011), available at fcc.gov/wcb/iatd/lec.html.
1 - 28

Table 1.10

Universal Service Program Requirements and Contribution Factors for 2010

(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
$358.960
$366.880
$372.500
$369.780
$1,468.120
Local Switching Support
$96.490
$98.220
$99.530
$104.220
$398.460
Interstate Common Line Support
$425.620
$431.950
$450.400
$451.660
$1,759.630
Interstate Access Support Mechanism
$144.820
$142.530
$144.480
$153.370
$585.200
Forward-Looking High Cost Mechanism
$80.420
$79.990
$81.380
$81.580
$323.370
Prior Period True-ups
$23.660
$90.560
$25.000
-$34.930
$104.290
Administrative expenses
$7.610
$7.850
$7.480
$1.990
$24.930
Interest income 1
-$0.260
-$0.140
-$0.040
-$0.120
-$0.560
Sprint & Verizon Wireless Phase Down Recovery 2
-$39.210
-$39.210
-$39.210
-$39.210
-$156.840
Program Total
$1,098.110
$1,178.630
$1,141.520
$1,088.340
$4,506.600
Low Income
Lifeline Assistance
$291.410
$332.080
$334.920
$336.280
$1,294.690
Link-Up
$15.050
$21.630
$18.570
$18.240
$73.490
Incremental Toll Limitation
$3.510
$4.510
$5.720
$7.140
$20.880
Prior Period true-ups
$45.230
$26.570
-$14.170
-$49.750
$7.880
Administrative expenses
$1.100
$1.480
$1.700
-$0.090
$4.190
Interest income 1
-$0.050
-$0.020
-$0.030
-$0.090
-$0.190
Program Total
$356.250
$386.250
$346.710
$311.730
$1,400.940
Rural Health
Rural Health Care Support
$51.760
$52.380
$33.080
$15.670
$152.890
Prior Period True-ups
$3.170
$0.120
-$0.880
-$0.950
$1.460
Administrative expenses
$2.590
$2.820
$3.590
$2.350
$11.350
Interest income 1
-$0.310
-$0.330
-$0.310
-$0.420
-$1.370
Program Total
$57.210
$54.990
$35.480
$16.650
$164.330
Schools & Libraries
Schools and Libraries Support
$562.500
$562.500
$562.500
$562.500
$2,250.000
Prior Period True-ups 3
$36.480
$1.540
-$3.350
-$6.940
$27.730
Administrative expenses
$18.190
$18.920
$23.140
$9.510
$69.760
Interest income 1
-$4.010
-$3.540
-$3.040
-$3.360
-$13.950
Program Total
$613.160
$579.420
$579.250
$561.710
$2,333.540
Grand Total
$2,124.730
$2,199.290
$2,102.960
$1,978.430
$8,405.410
Applicable interstate and international end-user revenues

Reported contribution base revenues
$17,254.235
$16,637.880
$17,575.565
$17,441.382
Circularity Adjustment
Amount carriers will contribute to USF in this quarter.
-$2,106.540
-$2,180.370
-$2,079.820
-$1,968.920
Subtotal
$15,147.695
$14,457.510
$15,495.745
$15,472.462
Adjustment factor for uncollectibles
1.00%
1.00%
1.00%
1.00%
Contribution base at the time the factor was calculated
$14,996.218
$14,312.935
$15,340.788
$15,317.737
Contribution factor
14.1%
15.3%
13.6%
12.9%
Contribution factor times contribution base
$2,114.467
$2,189.879
$2,086.347
$1,975.988
Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2010/
1 Interest income is shown as negative because it is subtracted from expenses to yield the total.
2 The recovery of support for Sprint and Verizon Wireless is consistent with the support phase-down discussion whereby USAC recovers 20% of CETC support over five
years until such time Sprint and Verizon Wireless no longer receive any High Cost support. A discussion of the support phase-downs can be found in DA 08-258 and DA
08-259 released in November 2008. More information can be found in WC 05-337 Released September 2010.
3 For the schools & libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods.
1 - 29

Table 1.10

Universal Service Program Requirements and Contribution Factors for 2011

Continued

(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
$327.700
$328.390
$335.410
$331.390
$1,322.890
Local Switching Support
$95.010
$95.900
$97.030
$95.570
$383.510
Interstate Common Line Support
$403.690
$400.370
$406.360
$414.930
$1,625.350
Interstate Access Support Mechanism
$137.550
$134.020
$131.040
$135.950
$538.560
Forward-Looking High Cost Mechanism
$75.040
$73.840
$72.360
$72.980
$294.220
Prior Period True-ups
$126.280
$23.800
-$13.190
-$33.680
$103.210
Administrative expenses
-$0.150
-$0.130
-$0.390
-$1.400
-$2.070
Interest income 1
$4.310
$4.460
$4.250
$4.270
$17.290
CETC Reserve Pursuant to FCC 10-155 2
$56.850
$65.930
$60.330
$58.700
$241.810
Program Total
$1,226.280
$1,126.580
$1,093.200
$1,078.710
$4,524.770
Low Income
Lifeline Assistance
$341.030
$358.160
$395.600
$488.110
$1,582.900
Link-Up
$23.130
$20.270
$23.510
$34.050
$100.960
Incremental Toll Limitation
$6.560
$5.360
$3.900
$2.920
$18.740
Prior Period true-ups
-$11.890
-$12.390
$3.000
$4.480
-$16.800
Administrative expenses
$1.730
$2.090
$1.640
$2.340
$7.800
Interest income 1
-$0.140
-$0.150
-$0.110
-$0.100
-$0.500
Program Total
$360.420
$373.340
$427.540
$531.800
$1,693.100
Rural Health
Rural Health Care Support
$20.520
$20.290
$23.790
$19.710
$84.310
Prior Period True-ups
$0.040
-$0.480
-$1.300
-$0.270
-$2.010
Administrative expenses
$3.780
$3.670
$3.830
$3.700
$14.980
Interest income 1
-$0.470
-$0.580
-$0.720
-$1.280
-$3.050
Program Total
$23.870
$22.900
$25.600
$21.860
$94.230
Schools & Libraries
Schools and Libraries Support
$562.500
$562.500
$562.500
$562.500
$2,250.000
Prior Period True-ups 3
$43.290
$16.290
-$2.710
$1.410
$58.280
Administrative expenses
$19.190
$19.200
$18.640
$18.300
$75.330
Interest income 1
-$3.880
-$3.970
-$3.970
-$3.760
-$15.580
Program Total
$621.100
$594.020
$574.460
$578.450
$2,368.030
Grand Total
$2,231.670
$2,116.840
$2,120.800
$2,210.820
$8,680.130
Applicable interstate and international end-user revenues

Reported contribution base revenues
$16,674.393
$16,403.461
$16,848.724
$16,681.649
Circularity Adjustment
Amount carriers will contribute to USF in this quarter.
-$2,212.480
-$2,097.640
-$2,102.160
-$2,192.520
Subtotal
$14,461.913
$14,305.821
$14,746.564
$14,489.129
Adjustment factor for uncollectibles
1.00%
1.00%
1.00%
1.00%
Contribution base at the time the factor was calculated
$14,317.294
$14,162.763
$14,599.098
$14,344.238
Contribution factor
15.5%
14.9%
14.4%
15.3%
Contribution factor times contribution base
$2,219.181
$2,110.252
$2,102.270
$2,194.668
Source: Appendix M02 from pertinent filings as shown at http://www.usac.org/about/governance/fcc-filings/2011/
1 Interest income is shown as negative because it is subtracted from expenses to yield the total.
2 The recovery of support for Sprint and Verizon Wireless is consistent with the support phase-down discussion whereby USAC recovers 20% of CETC support over five
years until such time Sprint and Verizon Wireless no longer receive any High Cost support. A discussion of the support phase-downs can be found in DA 08-258 and DA
08-259 released in November 2008. More information can be found in WC 05-337 Released September 2010.
3 For the schools & libraries mechanism, periodic true-ups include applications of unused fund balance from prior periods.
1 - 30

Table 1.11

Universal Service Support Mechanisms: 2009 & 2010

(Dollars in Millions)
2009
2010

Disbursements

Percent of

Disbursements

Percent of

Mechanism

Total

Total

High-Cost Support

$4,292
59.1 %
$4,268
53.7 %
High-Cost Loop Support
1,424
19.6
1,297
16.3
Safety Net Additive Support
53
0.7
76
1.0
Safety-Valve
5
0.1
6
0.1
High-Cost Model Support
331
4.6
310
3.9
Interstate Common Line Support
1,537
21.2
1,675
21.1
Interstate Access Support
563
7.8
545
6.9
Local Switching Support
381
5.2
359
4.5

Low-Income Support

1,025
14.1
1,316
16.5

School and Libraries

1,878
25.9
2,282
28.7

Rural Health Care

61
0.8
86
1.1

All Universal Service Support

$7,256
100.0 %
$7,952
100.0 %
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 (2009 or 2010)
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.
Source: Universal Service Administration Company (USAC).

Chart 1.1

Distribution of Universal Service Payments: 2010




Rural Health Care

Schools & Libraries

1.1%
28.7%

Low Income

High Cost

16.5%
53.7%
1 - 31

Table 1.12

Universal Service Support Mechanisms by State: 2010

(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

Total

Estimated Contributions 2

Dollar Flow 3

Amount

% of Total

Amount

% of Total
Alabama
$93,551
$41,473
$43,944
$354
$179,322
2.26%
$127,668
1.58%
$51,653
Alaska
218,970
26,839
22,217
49,749
317,775
4.00%
22,302
0.28%
295,473
American Samoa
3,831
82
1,588
228
5,729
0.07%
631
0.01%
5,098
Arizona
67,545
20,868
59,031
1,575
149,019
1.87%
155,754
1.93%
-6,735
Arkansas
105,255
12,565
20,788
917
139,526
1.75%
74,492
0.92%
65,033
California
91,824
174,727
348,702
1,233
616,486
7.75%
885,312
10.99%
-268,826
Colorado
75,866
2,323
18,003
249
96,441
1.21%
144,377
1.79%
-47,935
Connecticut
489
8,196
19,928
0
28,613
0.36%
106,098
1.32%
-77,485
Delaware
265
1,789
2,230
0
4,284
0.05%
29,049
0.36%
-24,765
Dist. of Columbia
0
1,945
14,842
0
16,786
0.21%
38,199
0.47%
-21,413
Florida
67,693
88,201
107,719
226
263,839
3.32%
526,991
6.54%
-263,152
Georgia
115,569
50,387
73,008
1,571
240,535
3.02%
262,777
3.26%
-22,242
Guam
16,082
287
260
74
16,703
0.21%
4,369
0.05%
12,335
Hawaii
61,772
504
2,552
102
64,930
0.82%
42,275
0.52%
22,655
Idaho
51,785
3,445
6,746
281
62,257
0.78%
39,526
0.49%
22,732
Illinois
71,898
35,665
64,416
1,139
173,118
2.18%
331,196
4.11%
-158,078
Indiana
79,290
4,233
41,433
846
125,802
1.58%
154,930
1.92%
-29,128
Iowa
129,222
3,894
12,442
613
146,172
1.84%
72,772
0.90%
73,400
Kansas
195,307
4,569
16,958
278
217,112
2.73%
71,094
0.88%
146,018
Kentucky
103,799
12,221
28,806
450
145,276
1.83%
104,924
1.30%
40,352
Louisiana
136,480
35,609
61,258
44
233,390
2.94%
115,153
1.43%
118,237
Maine
24,540
8,472
11,159
58
44,229
0.56%
35,731
0.44%
8,498
Maryland
3,767
11,037
14,082
0
28,887
0.36%
177,736
2.21%
-148,849
Massachusetts
2,258
25,912
31,368
130
59,668
0.75%
186,951
2.32%
-127,282
Michigan
49,571
56,642
49,821
2,841
158,876
2.00%
228,772
2.84%
-69,896
Minnesota
105,707
6,356
22,052
3,125
137,240
1.73%
126,964
1.58%
10,276
Mississippi
260,553
12,392
32,993
180
306,118
3.85%
71,859
0.89%
234,259
Missouri
107,372
11,429
41,875
571
161,247
2.03%
154,834
1.92%
6,413
Montana
85,810
3,762
4,822
838
95,231
1.20%
26,757
0.33%
68,474
Nebraska
88,657
1,874
10,647
1,612
102,790
1.29%
45,830
0.57%
56,960
Nevada
24,440
3,065
3,236
58
30,800
0.39%
72,752
0.90%
-41,952
New Hampshire
9,671
1,519
2,622
13
13,825
0.17%
39,195
0.49%
-25,370
New Jersey
1,538
24,950
58,819
0
85,308
1.07%
272,827
3.39%
-187,519
New Mexico
81,692
13,717
34,328
660
130,397
1.64%
50,327
0.62%
80,069
New York
44,148
95,938
193,945
43
334,074
4.20%
531,331
6.59%
-197,257
North Carolina
79,631
61,403
57,235
351
198,620
2.50%
248,017
3.08%
-49,397
North Dakota
97,567
2,632
4,560
945
105,704
1.33%
17,796
0.22%
87,908
Northern Mariana Is.
1,214
184
996
0
2,394
0.03%
1,335
0.02%
1,059
Ohio
38,943
59,808
77,572
769
177,091
2.23%
275,361
3.42%
-98,270
Oklahoma
148,877
79,107
50,527
797
279,308
3.51%
86,716
1.08%
192,592
Oregon
74,972
5,967
14,686
335
95,960
1.21%
96,174
1.19%
-214
Pennsylvania
61,902
34,697
89,139
97
185,834
2.34%
335,559
4.16%
-149,725
Puerto Rico
208,626
39,974
23,227
0
271,828
3.42%
77,558
0.96%
194,269
Rhode Island
35
3,003
6,618
0
9,655
0.12%
26,781
0.33%
-17,125
South Carolina
118,547
10,776
41,287
14
170,624
2.15%
114,968
1.43%
55,656
South Dakota
90,096
2,184
4,936
680
97,897
1.23%
19,408
0.24%
78,489
Tennessee
60,695
41,962
56,980
350
159,986
2.01%
165,016
2.05%
-5,030
Texas
247,395
101,728
234,544
1,691
585,358
7.36%
563,784
7.00%
21,574
Utah
23,190
3,727
16,012
804
43,733
0.55%
59,616
0.74%
-15,883
Vermont
20,999
2,590
2,116
59
25,764
0.32%
19,450
0.24%
6,314
Virgin Islands
19,539
84
10,562
22
30,207
0.38%
5,701
0.07%
24,506
Virginia
71,362
21,345
31,634
1,002
125,341
1.58%
235,958
2.93%
-110,617
Washington
91,282
16,177
31,770
80
139,309
1.75%
167,202
2.08%
-27,893
West Virginia
53,396
5,851
12,725
199
72,171
0.91%
53,890
0.67%
18,281
Wisconsin
131,007
15,189
32,854
7,588
186,638
2.35%
139,941
1.74%
46,697
Wyoming
52,256
453
3,881
113
56,703
0.71%
15,373
0.19%
41,329
Total
$4,267,746
$1,315,734
$2,282,499
$85,952
$7,951,931
100.00%
$8,057,357
100.00%
-$105,426
Notes: Figures may not add due to rounding. USF is an abbreviation for the Universal Service Fund.
1 Data are from USAC.
2 Contributions are preliminary and include administrative cost of approximately $105 million, as shown in USAC's Annual Report.
Allocation of contributions among states is an FCC staff estimate.
3 Net dollar flow is positive when payments from USF to carriers exceed contributions to USF. Total is negative because of administrative expenses.
1 - 32

2. Program Review

Section 2 includes the latest data on the low-income, high-cost, schools and libraries, and rural
health care support programs. The data provided in this section are supplemented by additional tables at
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 (up to a maximum of $30) 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



The low-income support programs grew substantially between 2008 and 2010. Lifeline
subscribers increased 54% from 6.9 million subscribers in 2008 to 10.6 million subscribers in 2010.
Table 2.1 reports Tribal and non-Tribal Lifeline subscriber and Link Up beneficiary data for years 1987
through 2010. Similarly, low-income support (the sum of Lifeline and Link Up support) increased 61%
from $822 million in 2008 to $1.32 billion in 2010. Table 2.2 reports annual low-income support
payments for years 1988 through 2010. Chart 2.1 shows the growth in low-income subscribers and
beneficiaries graphically.

Table 2.3 reports federal and state Lifeline monthly support by state in December 2010, 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 both incumbent local exchange carriers
(ILECs) and competitive eligible telecommunications carriers (CETCs). In December 2010, CETCs
average monthly nationwide combined federal and state support was $12.61 as compared to $11.95 for
ILECs.


Table 2.4 reports average monthly federal Lifeline support per subscriber by state and average
monthly Tribal Lifeline support by state for 2010.2 Table 2.5 reports the average Link Up support per
beneficiary for both Tribal and non-Tribal beneficiaries.


Table 2.6 reports low-income support payments by state for Lifeline and Link Up for 2010.
American Indian and Native American Tribal Lifeline Tier 4 and Link Up data are also reported. Total

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 support includes Tiers 1-3 support. Tribal support is Tier 4 support. See the program appendix
for an explanation of Tiers 1-4 support.


2 - 1

carrier payments data include the carrier's incremental cost of providing toll-limitation services (TLS) in
each state.



The growth in low-income support between 2008 and 2010 is due to competitive eligible
telecommunication carriers receiving substantially more support. Support received by CETCs increased
from $147 million in 2008 to $725 million in 2010. In contrast, incumbent local exchange carriers
(ILECs) support declined from $675 million in 2008 to $596 million in 2010. 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.

América Móvil and AT&T combined accounted for just over 50% of low-income support
payments in 2010.3 Table 2.8 reports low-income support by holding company for the top 10 recipients
of low-income support in 2010. Table 2.9 breaks it out by Lifeline, Link Up and TLS support.

Additional data on the low-income support program have been posted at
www.fcc.gov/wcb/iatd/monitor.html. These data include Lifeline subscribership and Link Up
beneficiaries by state since 2000 and low-income support data by state and study area since 1998.











3
América Móvil owns TracFone and Puerto Rico Telephone Company.


2 - 2

Table 2.1

Lifeline Subscribers and Link Up Beneficiaries


Lifeline Link

Up

Year

Non-Tribal

Tribal

Total

Non-Tribal

Tribal

Total

1987
1,063,443
7,953
1988
1,828,862
105,758
1989
2,115,288
206,656
1990
2,466,513
513,155
1991
2,984,290
639,645
1992
3,440,216
743,285
1993
3,971,937
737,362
1994
4,423,119
837,964
1995
4,914,056
823,679
1996
5,233,425
808,354
1997 1
5,110,537
NA
1998
5,380,726
2,195,417
1999
5,640,094
1,834,766
2000
5,856,551
18,688
5,875,239
1,689,867
2,038
1,691,905
2001
6,087,269
56,820
6,144,089
1,670,260
23,355
1,693,615
2002
6,406,176
112,191
6,518,367
1,656,768
29,901
1,686,669
2003
6,343,411
147,203
6,490,614
1,653,301
22,289
1,675,590
2004
6,616,305
176,390
6,792,695
1,669,888
41,034
1,710,922
2005
6,883,048
236,458
7,119,506
1,653,101
86,857
1,739,958
2006
6,648,267
289,249
6,937,516
1,560,348
99,179
1,659,527
2007
6,617,969
329,386
6,947,355
1,385,440
110,495
1,495,935
2008
6,500,374
353,274
6,853,648
1,505,833
116,905
1,622,738
2009
8,168,902
387,623
8,556,525
1,826,921
109,275
1,936,196
2010
10,160,724
419,612
10,580,336
2,504,026
125,865
2,629,891
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.
1 Subscriber data were not collected in 1997. Lifeline subscribership data were estimated by USAC.
Source: Universal Service Administrative Company.
2 - 3

Table 2.2

Low-Income Support Payments

(in Thousands)

Total

Lifeline Link

Up

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
710,183
73,148
8,514
0
791,846
27,816
3,575
31,391
823,237
2008
695,022
80,922
8,634
0
784,579
30,682
6,578
37,260
821,839
2009
868,134
88,088
8,959
0
965,182
40,812
7,485
48,298
1,013,479
2010
1,127,768
92,930
22,519
0
1,243,217
67,759
9,789
77,548
1,320,765
Note: Data for 1998-2009 were revised.
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)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Lifeline
5,381
5,640
5,875
6,144
6,518
6,491
6,793
7,120
6,938
6,947
6,854
8,557
10,580
Link Up
2,195
1,835
1,692
1,694
1,687
1,676
1,711
1,740
1,660
1,496
1,623
1,936
2,630
2 - 4

Table 2.3

Average Lifeline Monthly Support by ILEC Status and by State

(December 2010)

ILECs

CETCs

All Carriers

Basic
Total
Basic
Total
Basic
Total
Federal
State
Federal Federal
Federal
State
Federal Federal
Federal
State
Federal Federal
Support1 Support2
Match Support3
Total
Support1 Support2
Match Support3
Total
Support1 Support2
Match Support3
Total
Alabama
$8.25
$3.50
$1.75
$10.00
$13.50
$8.34
$3.49
$1.74
$10.09
$13.58
$8.33
$3.49
$1.75
$10.07
$13.56
Alaska
8.25
3.50
1.75
10.00
13.50
8.25
3.46
1.73
9.98
13.43
8.25
3.46
1.73
9.98
13.45
American Samoa
8.25
0.00
0.00
8.25
8.25
8.25
3.50
1.75
10.00
13.50
8.25
0.04
0.02
8.27
8.31
Arizona
8.01
1.22
0.61
8.62
9.84
8.25
3.50
1.75
10.00
13.50
8.14
2.42
1.21
9.34
11.76
Arkansas
7.42
2.34
1.17
8.59
10.93
7.09
3.49
1.74
8.84
12.33
7.16
3.24
1.62
8.78
12.03
California
6.60
3.42
1.71
8.31
11.74
8.03
3.50
1.75
9.78
13.28
6.61
3.43
1.71
8.32
11.75
Colorado
8.21
3.49
1.75
9.96
13.46
8.25
3.50
1.75
10.00
13.50
8.21
3.49
1.75
9.96
13.46
Connecticut
7.48
1.18
0.59
8.07
9.25
7.48
3.50
1.75
9.23
12.73
7.48
2.55
1.28
8.76
11.31
Delaware
8.13
0.00
0.00
8.13
8.13
8.13
3.50
1.75
9.88
13.38
8.13
3.23
1.61
9.74
12.97
District of Columbia
5.59
3.50
1.75
7.34
10.84
5.59
3.47
1.73
7.32
10.79
5.59
3.48
1.74
7.33
10.80
Florida
8.19
3.50
1.75
9.94
13.44
8.19
3.50
1.75
9.94
13.44
8.19
3.50
1.75
9.94
13.44
Georgia
8.25
3.38
1.69
9.94
13.32
8.25
3.50
1.75
10.00
13.49
8.25
3.47
1.73
9.98
13.45
Guam
8.25
3.50
1.75
10.00
13.50
NA
NA
NA
NA
NA
8.25
3.50
1.75
10.00
13.50
Hawaii
8.25
0.00
0.00
8.25
8.25
NA
NA
NA
NA
NA
8.25
0.00
0.00
8.25
8.25
Idaho
8.16
3.47
1.74
9.90
13.37
8.25
2.93
1.46
9.71
12.64
8.17
3.42
1.71
9.88
13.30
Illinois
6.57
0.00
0.00
6.57
6.57
6.43
1.84
0.92
7.35
9.20
6.45
1.52
0.76
7.22
8.74
Indiana
7.51
0.00
0.00
7.51
7.51
7.93
3.45
1.72
9.66
13.11
7.54
0.26
0.13
7.68
7.94
Iowa
7.08
0.00
0.00
7.08
7.08
7.17
0.00
0.00
7.17
7.17
7.09
0.00
0.00
7.09
7.09
Kansas
7.25
3.50
1.75
9.00
12.50
7.05
2.24
1.12
8.17
10.41
7.16
2.93
1.46
8.62
11.55
Kentucky
8.19
3.47
1.74
9.92
13.39
8.55
3.49
1.75
10.30
13.79
8.31
3.48
1.74
10.05
13.53
Louisiana
8.25
0.00
0.00
8.25
8.25
8.30
2.37
1.19
9.49
11.86
8.29
2.16
1.08
9.38
11.54
Maine
7.99
3.50
1.75
9.74
13.24
8.02
3.50
1.75
9.77
13.28
8.00
3.50
1.75
9.75
13.25
Maryland
7.36
3.41
1.71
9.07
12.48
7.40
3.50
1.75
9.15
12.65
7.40
3.49
1.75
9.15
12.64
Massachusetts
8.10
3.50
1.75
9.85
13.35
8.10
3.50
1.75
9.85
13.35
8.10
3.50
1.75
9.85
13.35
Michigan
7.26
2.22
1.11
8.38
10.60
7.47
2.83
1.41
8.88
11.71
7.44
2.75
1.37
8.81
11.56
Minnesota
7.21
1.74
0.87
8.08
9.82
7.14
0.61
0.31
7.45
8.06
7.21
1.70
0.85
8.06
9.76
Mississippi
8.25
3.34
1.67
9.92
13.26
8.25
3.48
1.74
9.99
13.47
8.25
3.43
1.71
9.97
13.39
Missouri
7.32
3.48
1.74
9.06
12.54
7.15
2.67
1.34
8.48
11.15
7.24
3.12
1.56
8.81
11.93
Montana
8.25
2.47
1.24
9.49
11.96
8.25
3.50
1.75
10.00
13.50
8.25
2.73
1.37
9.62
12.35
Nebraska
7.09
3.35
1.67
8.76
12.11
6.65
3.50
1.75
8.40
11.90
6.98
3.39
1.69
8.67
12.06
Nevada
6.11
3.33
1.66
7.78
11.11
5.62
3.39
1.69
7.32
10.70
5.95
3.35
1.67
7.63
10.98
New Hampshire
7.95
0.00
0.00
7.95
7.95
7.92
3.50
1.75
9.67
13.17
7.93
2.60
1.30
9.23
11.83
New Jersey
7.99
3.48
1.74
9.73
13.21
8.00
3.50
1.75
9.75
13.25
7.99
3.49
1.75
9.74
13.23
New Mexico
8.25
3.23
1.61
9.86
13.09
8.25
3.50
1.75
10.00
13.50
8.25
3.30
1.65
9.90
13.20
New York
8.01
3.30
1.65
9.65
12.95
8.10
3.49
1.75
9.85
13.34
8.07
3.44
1.72
9.79
13.23
North Carolina
7.86
3.50
1.75
9.61
13.11
8.05
3.50
1.75
9.80
13.30
8.01
3.50
1.75
9.76
13.26
North Dakota
8.25
1.94
0.97
9.22
11.17
8.25
2.89
1.44
9.70
12.58
8.25
1.99
0.99
9.25
11.23
N. Mariana Islands
8.25
0.00
0.00
8.25
8.25
8.26
0.00
0.00
8.26
8.26
8.25
0.00
0.00
8.25
8.25
Ohio
7.27
3.49
1.75
9.02
12.51
7.38
3.50
1.75
9.13
12.63
7.34
3.50
1.75
9.09
12.58
Oklahoma
7.41
0.39
0.20
7.60
8.00
7.14
0.95
0.48
7.62
8.57
7.21
0.81
0.41
7.62
8.43
Oregon
8.22
3.48
1.74
9.96
13.45
8.25
3.50
1.75
10.00
13.50
8.23
3.49
1.74
9.97
13.46
Pennsylvania
7.65
0.76
0.38
8.02
8.78
7.60
3.50
1.75
9.35
12.85
7.62
2.40
1.20
8.82
11.22
Puerto Rico
8.25
3.50
1.75
10.00
13.50
8.25
3.50
1.75
10.00
13.50
8.25
3.50
1.75
10.00
13.50
Rhode Island
8.10
3.50
1.75
9.85
13.35
8.14
3.50
1.75
9.89
13.39
8.12
3.50
1.75
9.87
13.37
South Carolina
8.22
3.50
1.75
9.97
13.47
8.84
3.50
1.75
10.59
14.08
8.39
3.50
1.75
10.13
13.63
South Dakota
8.31
0.09
0.05
8.36
8.45
8.17
0.00
0.00
8.17
8.17
8.30
0.08
0.04
8.34
8.42
Tennessee
8.16
3.20
1.60
9.76
12.96
8.16
3.50
1.75
9.90
13.40
8.16
3.43
1.72
9.87
13.30
Texas
7.26
3.49
1.75
9.00
12.50
7.84
3.49
1.75
9.59
13.08
7.37
3.49
1.75
9.12
12.62
Utah
8.07
3.50
1.75
9.82
13.32
8.25
3.50
1.75
10.00
13.50
8.08
3.50
1.75
9.83
13.32
Vermont
7.98
3.50
1.75
9.73
13.23
NA
NA
NA
NA
NA
7.98
3.50
1.75
9.73
13.23
Virgin Islands
8.25
3.50
1.75
10.00
13.50
NA
NA
NA
NA
NA
8.25
3.50
1.75
10.00
13.50
Virginia
7.22
3.25
1.62
8.84
12.09
7.82
3.49
1.74
9.56
13.05
7.78
3.47
1.74
9.51
12.99
Washington
7.70
2.65
1.32
9.02
11.67
8.10
0.82
0.41
8.51
9.32
7.77
2.31
1.15
8.93
11.24
West Virginia
8.27
0.00
0.00
8.27
8.28
8.25
3.48
1.74
9.99
13.47
8.25
3.28
1.64
9.89
13.16
Wisconsin
7.39
2.42
1.21
8.60
11.02
7.00
2.65
1.33
8.33
10.98
7.14
2.57
1.28
8.42
10.99
Wyoming
8.25
3.50
1.75
10.00
13.50
8.25
3.50
1.75
10.00
13.50
8.25
3.50
1.75
10.00
13.50
Total
$7.33
$3.08
$1.54
$8.87
$11.95
$7.83
$3.19
$1.59
$9.42
$12.61
$7.61
$3.14
$1.57
$9.18
$12.32
Notes: This table reflects only non-Tribal support. All averages are weighted averages. NA: Not Applicable. ILECs is an abbreviation for incumbent local exchange
carriers and CETCs is an abbreviation for competitive eligible telecommunications carriers.
1 Basic federal support includes both Tier 1 and Tier 2 support. See text 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 Lifeline subscribers are from different USAC data sources.
Source: Universal Service Administrative Company.
2 - 5

Table 2.4

Federal Lifeline Average Benefits by State: 2010

State

Support in Thousands

Subscribers

Support per Month

General

Tribal

Non-Tribal

Tribal

General1

Tribal

Alabama
$31,758
$3
268,743
26
$9.85
$8.22
Alaska
8,651
17,885
0
100,747
$7.16
14.79
American Samoa
66 0 660 0
8.36

-
Arizona
8,460
12,156
28,807
46,741
9.33
21.67
Arkansas
8,791
0
99,286
3
7.38
5.44
California
171,490
36
1,698,086
585
8.41
5.13
Colorado
2,306
1
19,327
5
9.94
12.73
Connecticut
8,191 0
78,054 0
8.74

-
Delaware
1,793 0
15,301 0
9.76

-
District of Columbia
1,888 0
21,347 0
7.37

-
Florida
82,790
0
740,114
2
9.32
3.13
Georgia
45,808 0
398,062 0
9.59

-
Guam
280 0 2,295 0
10.15

-
Hawaii
482
0
4,730
0
8.49
-
Idaho
3,301
172
27,158
661
9.89
21.69
Illinois
29,883 0
351,270 0
7.09

-
Indiana
4,040
0
47,821
0
7.04
-
Iowa
3,782
0
44,370
2
7.10
10.75
Kansas
3,888
2
38,091
26
8.50
6.54
Kentucky
9,261 0
79,047 0
9.76

-
Louisiana
24,287
0
250,418
0
8.08
-
Maine
8,090
65
69,766
548
9.59
9.83
Maryland
9,832 0
112,453 0
7.29

-
Massachusetts
25,938 0
218,545 0
9.89

-
Michigan
52,121
56
510,235
329
8.51
14.27
Minnesota
5,973
334
60,590
1,826
7.98
15.22
Mississippi
10,209
5
109,899
18
7.74
25.23
Missouri
9,879
2
95,534
54
8.61
2.35
Montana
1,774
1,964
7,993
7,418
9.59
22.06
Nebraska
1,741
85
16,287
466
8.66
15.14
Nevada
3,069
23
36,653
314
6.92
5.98
New Hampshire
1,506 0
13,636 0
9.20

-
New Jersey
23,245 0
222,487 0
8.71

-
New Mexico
8,059
5,528
46,168
21,770
9.89
21.16
New York
95,757
1
815,426
11
9.79
9.75
North Carolina
54,893
1
472,938
4
9.67
14.63
North Dakota
1,834
764
12,929
4,771
8.64
13.34
Northern Mariana Islands
168 0 1,699 0
8.25

-
Ohio
58,911
0
539,987
0
9.09
-
Oklahoma
20,118
48,606
6,472
210,700
7.72
19.22
Oregon
5,617
39
47,486
244
9.81
13.43
Pennsylvania
34,419 0
325,067 0
8.82

-
Puerto Rico
39,190 0
341,502 0
9.56

-
Rhode Island
3,029 0
25,666 0
9.83

-
South Carolina
7,925
7
69,671
95
9.47
6.38
South Dakota
1,199
996
7,583
6,623
7.03
12.54
Tennessee
40,182 0
342,895 0
9.77

-
Texas
93,260
71
882,414
1,136
8.80
5.19
Utah
3,439
232
28,112
949
9.86
20.36
Vermont
2,533 0
21,375 0
9.87

-
Virgin Islands
83 0 640 0
10.81

-
Virginia
21,371 0
187,599 0
9.49

-
Washington
12,486
3,617
106,309
12,452
8.76
24.21
West Virginia
5,337 0
47,936 0
9.28

-
Wisconsin
12,988
227
140,703
868
7.65
21.81
Wyoming
393
54
3,082
218
9.94
20.49
Total
$1,127,768
$92,930
10,160,724
419,612
$8.88
$18.46
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 are from different USAC
data sources.
Source: Universal Service Administrative Company.
2 - 6

Table 2.5

Link Up Average Benefits by State: 2010

State

Support in Thousands

Beneficiaries

Support per Beneficiary

Non-Tribal

Tribal

Non-Tribal

Tribal

Non-Tribal

Tribal

Alabama
$5,517
$0
185,789
0
$29.70
-
Alaska
0
72
3
3,717
$52.00
19.40
American Samoa
1
0
18
0
45.00
-
Arizona
70
162
4,515
7,947
15.41
20.35
Arkansas
3,185
0
107,554
0
29.61
-
California
2,970
0
143,202
5
20.74
19.20
Colorado
33
0
1,877
0
17.50
-
Connecticut
29
0
1,145
0
25.52
-
Delaware
2
0
89
0
18.00
-
District of Columbia
48
0
1,958
0
24.45
-
Florida
3,656
0
124,143
0
29.45
-
Georgia
4,063
0
155,936
0
26.06
-
Guam
10
0
554
0
17.51
-
Hawaii
3
0
114
0
22.76
-
Idaho
37
0
2,481
8
14.95
14.63
Illinois
5,494
0
187,389
0
29.32
-
Indiana
222
0
9,423
0
23.60
-
Iowa
72
0
4,109
0
17.44
-
Kansas
540
0
18,923
0
28.51
-
Kentucky
1,644 0
57,714 0
28.48

-
Louisiana
8,638
0
281,284
0
30.71
-
Maine
164
1
7,359
49
22.35
24.22
Maryland
1,402 0
47,283 0
29.66

-
Massachusetts
4
0
654
0
6.85
-
Michigan
3,886
0
132,555
23
29.32
12.22
Minnesota
63
2
5,884
123
10.72
16.05
Mississippi
3,032
0
111,060
0
27.30
-
Missouri
1,382
0
54,402
9
25.40
7.22
Montana
13
6
977
482
13.49
12.86
Nebraska
24
0
1,476
2
16.10
17.00
Nevada
66
1
3,390
40
19.37
18.10
New Hampshire
7
0
354
0
19.54
-
New Jersey
1,707 0
57,799 0
29.53

-
New Mexico
57
55
3,818
2,798
14.86
19.75
New York
88
0
3,347
0
26.30
-
North Carolina
3,701
0
125,458
0
29.50
-
North Dakota
16
7
1,026
297
15.92
24.28
Northern Mariana Islands
13
0
624
0
20.53
-
Ohio
808
0
37,124
0
21.76
-
Oklahoma
51
9,403
2,264
107,292
22.36
87.64
Oregon
68
0
7,735
12
8.73
13.33
Pennsylvania
600
0
30,017
0
19.99
-
Puerto Rico
812
0
32,271
0
25.16
-
Rhode Island
7
0
3,385
0
2.11
-
South Carolina
2,252
0
83,466
0
26.98
-
South Dakota
10
4
805
242
12.38
16.71
Tennessee
2,344
0
97,019
0
24.16
-
Texas
5,874
4
240,366
189
24.44
19.45
Utah
35
3
2,815
142
12.54
19.75
Vermont
19
0
1,325
0
14.26
-
Virgin Islands
0
0
11
0
27.45
-
Virginia
37
0
1,916
0
19.32
-
Washington
530
64
33,785
2,134
15.68
29.83
West Virginia
584
0
19,604
0
29.78
-
Wisconsin
1,864
4
64,094
342
29.08
13.08
Wyoming
6
0
338
12
17.81
20.33
Total
$67,759
$9,789
2,504,026
125,865
$27.06
$77.78
Source: Universal Service Administrative Company.
2 - 7

Table 2.6

Low-Income Support Payments by State: 2010

(in Thousands)
State or Jurisdiction

Lifeline

Link Up

TLS

Total

General

Tribal

Non-Tribal

Tribal

Alabama
$31,758
$3
$5,517
$0
$4,417
$41,695
Alaska
8,651
17,885
0
72
61
26,670
American Samoa
66
0
1
0
0
67
Arizona
8,460
12,156
70
162
50
20,896
Arkansas
8,791
0
3,185
0
517
12,493
California
171,490
36
2,970
0
136
174,632
Colorado
2,306
1
33
0
4
2,344
Connecticut
8,191
0
29
0
0
8,220
Delaware
1,793
0
2
0
0
1,794
District of Columbia
1,888
0
48
0
0
1,936
Florida
82,790
0
3,656
0
2,184
88,629
Georgia
45,808
0
4,063
0
94
49,966
Guam
280
0
10
0
0
289
Hawaii
482
0
3
0
0
485
Idaho
3,301
172
37
0
7
3,518
Illinois
29,883
0
5,494
0
378
35,755
Indiana
4,040
0
222
0
5
4,268
Iowa
3,782
0
72
0
7
3,861
Kansas
3,888
2
540
0
94
4,523
Kentucky
9,261
0
1,644
0
1,261
12,166
Louisiana
24,287
0
8,638
0
3,237
36,162
Maine
8,090
65
164
1
5
8,325
Maryland
9,832
0
1,402
0
0
11,234
Massachusetts
25,938
0
4
0
1
25,943
Michigan
52,121
56
3,886
0
491
56,555
Minnesota
5,973
334
63
2
5
6,377
Mississippi
10,209
5
3,032
0
380
13,627
Missouri
9,879
2
1,382
0
156
11,419
Montana
1,774
1,964
13
6
4
3,762
Nebraska
1,741
85
24
0
12
1,862
Nevada
3,069
23
66
1
1
3,159
New Hampshire
1,506
0
7
0
0
1,513
New Jersey
23,245
0
1,707
0
1
24,953
New Mexico
8,059
5,528
57
55
25
13,725
New York
95,757
1
88
0
7
95,854
North Carolina
54,893
1
3,701
0
2,706
61,301
North Dakota
1,834
764
16
7
2
2,623
Northern Mariana Islands
168
0
13
0
0
181
Ohio
58,911
0
808
0
228
59,947
Oklahoma
20,118
48,606
51
9,403
3,095
81,273
Oregon
5,617
39
68
0
8
5,733
Pennsylvania
34,419
0
600
0
4
35,023
Puerto Rico
39,190
0
812
0
0
40,002
Rhode Island
3,029
0
7
0
0
3,037
South Carolina
7,925
7
2,252
0
770
10,954
South Dakota
1,199
996
10
4
1
2,210
Tennessee
40,182
0
2,344
0
240
42,767
Texas
93,260
71
5,874
4
1,849
101,058
Utah
3,439
232
35
3
15
3,725
Vermont
2,533
0
19
0
1
2,553
Virgin Islands
83
0
0
0
0
83
Virginia
21,371
0
37
0
0
21,408
Washington
12,486
3,617
530
64
22
16,719
West Virginia
5,337
0
584
0
0
5,921
Wisconsin
12,988
227
1,864
4
36
15,120
Wyoming
393
54
6
0
0
454
Total
$1,127,768
$92,930
$67,759
$9,789
$22,519
$1,320,765
Notes: These dollars represent submitted claims to USAC for the time period January 2010 through December 2010, including true-ups reported
through August 2011. 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 - 8

Table 2.7

Low-Income Support 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
121,247
823,237
14.7
2008
674,805
147,034
821,839
17.9
2009
643,220
370,259
1,013,479
36.5
2010
595,858
724,907
1,320,765
54.9
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 Support Received by CETCs

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
2 - 9

Table 2.8

Low-Income Support by Year-End Holding Company Structure: 2010

(in Thousands)

Low-Income

Percent

Cumulative

Rank Holding Company Name

Support

of Total

Percent of Total

1
América Móvil
$362,919
27.5%
27.5%
2
AT&T Inc.
321,650
24.4
51.8
3
Verizon Communications Inc.
122,941
9.3
61.1
4
Sprint Nextel Corporation
72,342
5.5
66.6
5
Nexus Communications, Inc.
63,163
4.8
71.4
6
Associated Telecommunications Management Services, LLC
40,079
3.0
74.4
7
Qwest Communications International, Inc.
33,422
2.5
77.0
8
CenturyLink, Inc.
24,333
1.8
78.8
9
Smith Bagley, Inc.
22,874
1.7
80.5
10
Frontier Communications Corporation
20,571
1.6
82.1
Other Carriers
236,472
17.9
100.0
All Holding Companies
$1,320,765
100.0%
100.0%

Table 2.9

Low-Income Support by Program and Year-End Holding Company Structure: 2010

(in Thousands)

Link Up

Rank Holding Company Name

Lifeline Support

Support

TLS Support

1
América Móvil
$362,769
$150
$0
2
AT&T Inc.
309,494
11,798
358
3
Verizon Communications Inc.
121,101
1,789
51
4
Sprint Nextel Corporation
72,342
0
0
5
Nexus Communications, Inc.
45,447
17,693
23
6
Associated Telecommunications Management Services, LLC
17,751
11,250
11,078
7
Qwest Communications International, Inc.
32,629
714
79
8
CenturyLink, Inc.
24,057
276
0
9
Smith Bagley, Inc.
22,662
212
0
10
Frontier Communications Corporation
20,249
273
50
Other Carriers
192,198
33,394
10,879
All Holding Companies
$1,220,697
$77,548
$22,519
2 - 10

High-Cost Support Program

The high-cost support mechanisms enable 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 hold down 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. The high-cost support mechanisms include embedded high-cost loop support (HCLS),4
safety net additive support (SNAS), safety valve support (SVS), forward-looking non-rural high-cost
model support (HCMS), interstate common line support (ICLS) 5 for rate-of-return carriers,6 interstate
access support (IAS) for price-cap carriers, and local switching support (LSS) for carriers that serve
50,000 or fewer access lines.

On October 27, 2011, the Commission adopted the USF/ICC Transformation Order, which
comprehensively reforms and modernizes the universal service and intercarrier compensation systems
into a new Connect America Fund (CAF) to ensure that robust, affordable voice and broadband services
are available to Americans throughout the nation.7 Among other things, the Commission eliminates
certain high-cost support mechanisms, modifies others, and establishes 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 take effect for support in 2012, while others will
be implemented in 2013 or later. Accordingly, some data available in 2012 will reflect the effect of
reforms, but data reflecting the full effect of the reforms will not be available until later years.


4
This was formerly referred to as the Universal Service Fund, and still bears that name in the Commission
rules. It is now referred to as high-cost loop support to avoid confusion with the new, more comprehensive
universal service support mechanisms that the Commission developed to implement the 1996 Act. See 47
C.F.R. § 36.601. See also 47 C.F.R. Part 54.
5
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.

6
A number of mid-sized carriers have elected to convert to price-cap regulation in recent years and receive
ICLS that is 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).

7
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 - 11


High-Cost Disbursements

Table 2.10 summarizes the annual disbursements8 for the high-cost support mechanisms from
2003 through 2011. The table values for annual disbursements for 2011 are estimates extrapolated from
disbursements made from January through August 2011. 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.
The table and chart show that total disbursements peaked in 2008 at $4.5 billion. Chart 2.3 and all
subsequent high-cost charts also include reserve fund dollars for 2010 and 2011; these funds are described
in Table 1.10. The high-cost tables do not include these funds.

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.

Table 2.12 lists high-cost disbursements within each state in 2010. Mississippi received the most
disbursements in 2010 ($261 million) with over 70% in HCMS ($188 million, the most of any state).
Texas received almost as much disbursements as Mississippi ($247 million), but its support was primarily
in the HCLS mechanism ($113 million, the most of any state). Alaska ($219 million) and Puerto Rico
($209 million) were third and fourth respectively in total disbursements. They were the leading recipients
of disbursements for ICLS; all of Puerto Rico’s disbursements were for ICLS while Alaska received
disbursements of $104 million for ICLS. Kansas had the fifth highest total disbursements among states in
2010 ($195 million) with over half for HCLS ($101 million). No other state or jurisdiction received more
than $150 million dollars in disbursements.

Table 2.13 lists total high-cost disbursement received from 2008 through 2010 by holding
company for the top 10 recipients in 2008, 2009 or 2010. As a whole, these holding companies received
51% of disbursements in this time period. Verizon/Alltel led all holding companies in disbursements in
2008 and 2009, but a sharp drop in their disbursements in 2010 moved AT&T to the top in 2010.

Table 2.14 provides a breakdown by mechanism of disbursements to holding companies for 2010
as well as an analysis of disbursements per supported line for holding companies. As a group, these 25
holding companies accounted for 94% of all supported lines, but only 57% of all disbursements. AT&T
and Verizon had the most supported lines and total disbursements in 2010; together they accounted for
57% of supported lines with only 20% of total disbursements. Disbursements per supported line are
highly variable; among these 25 holding companies, they range from the thousands of dollars per line
(Sandwich Isles Communications and Valley Telephone Cooperative) to less than $10 per line (Qwest
and Sprint Nextel). AT&T received the most disbursements for HCMS ($168 million) and ICLS ($120
million). Verizon received the most disbursements for IAS ($135 million). CenturyLink received the
most disbursements for HCLS ($99 million).

Table 2.15 lists the 10 study areas with the highest disbursements per supported line in 2010.
Sandwich Isles Communications is noteworthy for its relatively large number of supported lines in this
group and consequently large disbursement in 2010.


8
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.

2 - 12


High-Cost Claims

High-cost claims9 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. Disbursements are useful for the analysis
of the flow of money in and out of the fund while claim dollars are useful for the analysis of the
justification for support dollars with respect to the recipient’s needs. 10

Tables 2.16 through 2.18 and Charts 2.3 and 2.4 are claims versions of Tables 2.10 through 2.12
and Charts 2.5 and 2.6. In general, the differences between the claims and disbursements views are
minor. Table 2.16 and Chart 2.3 show that total claims (to date) were higher in 2010 than in 2009, but are
expected to be lower in 2011. Table 2.17 shows that CETC claims (to date) were higher in 2010 than in
2009, but are expected to be lower in 2011.

Table 2.18 lists high-cost claims within each state in 2010. Mississippi had the highest claims in
2010 ($272 million) with over 70% for HCMS ($193 million, the most of any state). Texas had claims
almost as high as Mississippi ($259 million), but its support was primarily in the HCLS mechanism ($117
million). Kansas had the third highest total claims among states in 2010 ($227 million) with over half for
HCLS ($121 million, highest of any state). Alaska ($195 million) and Puerto Rico ($180 million) were
fourth and fifth 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.




9
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 except for ICLS and LSS in 2009.

10
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 - 13


Table 2.10

High-Cost Support Fund Disbursement History

(in Millions)

Interstate

Year

High-Cost Safety Net

Safety

High-Cost

Common

Interstate

Local

Loop

Additive

Valve

Model

Long-Term

Line

Access

Switching

Total

Support

Support

Support

Support

Support

Support

Support

Support

Support

2003
$1,085
$9
$0
$234
$504
$399
$622
$420
$3,273
2004
1,137
12
0
273
275
727
642
422
3,488
2005
1,219
15
4
292
0
1,178
691
425
3,824
2006
1,309
29
1
358
4
1,266
681
448
4,096
2007
1,402
38
3
346
0
1,392
645
460
4,287
2008
1,457
48
2
351
0
1,621
585
416
4,478
2009
1,424
53
5
331
0
1,537
563
381
4,292
2010
1,297
76
6
310
0
1,675
545
359
4,268
2011*
1,185
93
8
283
0
1,600
528
310
4,008
Note: Detail may not appear to add to totals due to rounding.


* Estimate for 2011 extrapolated from payments through August 2011.
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
lla
$3,000
o
f
D
$2,500
o
s
n
$2,000
illio
M
$1,500
$1,000
$500
$0
2003
2004
2005
2006
2007
2008
2009
2010
2011
Reserve
$157 $242
Disbursement
$3,273
$3,488
$3,824
$4,096
$4,287
$4,478
$4,292
$4,268
$4,008
Note: The reserve consists of the 2010 Sprint and Verizon Wireless recovery and the 2011 CETC reserve (see Table 1.10).
2 - 14

Table 2.11

High-Cost Support Fund Disbursement History - ILECs and CETCs

(in Millions)

High-Cost

Safety Net

High-Cost

Interstate

Interstate

Local

Year

Companies

Loop

Additive

Safety Valve

Model

Long-Term

Common

Access

Switching

Total

Support

Support

Support

Support

Support

Line Support

Support

Support

Support

ILECs
$1,058.2
$8.8
$0.0
$207.2
$479.1
$382.0
$604.9
$401.6
$3,141.8
2003
CETCs
26.5
0.3
0.0
26.8
25.0
17.4
16.9
18.5
131.4
Total
1,084.6
9.1
0.0
234.0
504.1
399.4
621.7
420.2
3,273.2
ILECs
1,055.4
10.5
0.0
218.9
243.8
645.0
596.0
384.8
3,154.5
2004
CETCs
81.3
1.1
0.0
54.5
31.0
82.0
45.7
37.5
333.1
Total
1,136.6
11.6
0.0
273.4
274.8
727.1
641.7
422.3
3,487.6
ILECs
1,052.1
12.3
3.8
221.3
0.0
953.9
581.9
360.4
3,185.7
2005
CETCs
166.8
2.9
0.6
70.6
-0.2
224.4
109.1
64.4
638.5
Total
1,218.9
15.2
4.4
291.8
-0.2
1,178.3
691.0
424.8
3,824.2
ILECs
1,046.0
24.3
0.3
207.8
0.0
941.9
540.4
355.7
3,116.4
2006
CETCs
263.0
5.1
0.4
149.7
4.5
323.9
140.8
92.5
979.9
Total
1,309.0
29.4
0.7
357.5
4.5
1,265.8
681.2
448.2
4,096.3
ILECs
1,049.8
27.6
1.9
197.6
0.0
979.8
504.1
347.4
3,108.2
2007
CETCs
352.7
10.9
1.1
148.6
0.0
412.1
140.9
112.3
1,178.5
Total
1,402.5
38.5
3.0
346.3
0.0
1,391.9
645.0
459.7
4,286.7
ILECs
1,034.3
34.1
1.5
185.1
0.0
1,063.4
473.3
301.6
3,093.3
2008
CETCs
422.2
13.4
0.3
165.5
0.1
557.2
111.3
114.4
1,384.5
Total
1,456.6
47.5
1.8
350.6
0.1
1,620.6
584.6
415.9
4,477.8
ILECs
1,006.5
38.2
4.9
169.0
0.0
1,066.1
456.3
277.2
3,018.2
2009
CETCs
417.6
14.4
0.1
161.6
0.0
470.6
106.3
103.5
1,273.9
Total
1,424.1
52.5
5.0
330.6
0.0
1,536.6
562.6
380.7
4,292.2
ILECs
959.8
58.9
4.9
156.7
0.0
1,141.4
457.6
275.8
3,055.1
2010
CETCs
336.8
17.1
1.3
153.1
0.0
533.2
87.8
83.4
1,212.7
Total
1,296.6
76.0
6.1
309.8
0.0
1,674.6
545.4
359.2
4,267.7
ILECs
903.4
74.8
5.4
147.0
0.0
1,118.2
437.0
237.2
2,923.1
2011*
CETCs
282.0
18.4
2.2
136.3
0.0
482.0
91.1
72.7
1,084.6
Total
1,185.5
93.2
7.6
283.3
0.0
1,600.2
528.2
309.8
4,007.7
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 2011 extrapolated from payments through August 2011.
Source: Universal Service Administrative Company.

Chart 2.4

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

(in Millions)
$3,500
$3,000
$2,500
$2,000
$1,500

Support

$1,000
$500
ILECs
$0
CETCs
2003
2004
2005
2006
2007
2008
2009
2010
2011
CETC Reserve
Note: The reserve consists of the 2010 Sprint and Verizon Wireless recovery and the 2011 CETC reserve (see Table 1.10).
2 - 15

Table 2.12

High-Cost Support Fund Disbursements - by Mechanism and State: 2010

(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
$16,147
$785
$0 $36,380 $19,773 $17,026 $3,440 $93,551
Alaska
88,530
1,243
0
0
103,990
0
25,206
218,970
American Samoa
3 0 0 0
2,921 0
907
3,831
Arizona
28,341
772
0
0
15,500
15,591
7,342
67,545
Arkansas
51,961
152
0
0
46,275
234
6,633
105,255
California
23,437
597 0 0
26,264
37,279
4,247
91,824
Colorado
30,330
198 0 0
22,944
17,814
4,580
75,866
Connecticut
0 0 0 0 0
489 0
489
Delaware
0 0 0 0 0
265 0
265
District of Columbia
0 0 0 0 0 0 0 0
Florida
4,969
137 0 0
11,025
48,871
2,691
67,693
Georgia
31,471 3,107
0
0 51,335 19,508 10,148
115,569
Guam
3,061 0 0 0
12,173 0
848
16,082
Hawaii
39,850
0
0
0
18,153
2,047
1,721
61,772
Idaho
20,937
97
0
0
13,168
12,171
5,412
51,785
Illinois
20,408
564 0 0
32,480
9,339
9,107
71,898
Indiana
25,644
2,136
0
0
29,032
15,646
6,832
79,290
Iowa
33,298
3,157
146
0
59,501
10,640
22,480
129,222


Kansas
101,286 1,300 5,775
0
67,409 5,863
13,673
195,307
Kentucky
32,570 2,880
0 14,728 33,272 15,048 5,300
103,799
Louisiana
76,267 1,988
0
0
41,897
11,587 4,741
136,480
Maine
3,129
412
0
1,770
13,371
52
5,805
24,540
Maryland
144 0 0 0
928
2,319
376
3,767
Massachusetts
7
41
0
0
221
1,460
529
2,258
Michigan
17,497
802 0 0
21,995
515
8,762
49,571
Minnesota
30,718 4,189
21
0
53,932 2,541
14,306
105,707
Mississippi
29,416
741
0
188,392 17,354 20,857 3,792
260,553
Missouri
50,885 1,690
0
0
39,921
10,209 4,667
107,372
Montana
32,484
183
0
13,863
32,102
756
6,422
85,810


Nebraska
27,511
598
0 7,059 32,508 5,846 15,135 88,657
Nevada
5,375
648
0
0
5,174
9,111
4,132
24,440
New Hampshire
91
414
0
0
3,872
2,275
3,019
9,671
New Jersey
0 1 0 0
354
260
924
1,538
New Mexico
33,373
564
0
0
27,747
6,988
13,020
81,692
New York
4,321
2,197
0
0
14,377
12,274
10,979
44,148
North Carolina
9,827
302 0 0
40,673
22,916
5,913
79,631
North Dakota
34,129
8,377
19
0
42,681
658
11,703
97,567
Northern Mariana Islands
0 0 0 0 0
92
1,122
1,214
Ohio
10,156
781
0
0
15,702
9,646
2,658
38,943
Oklahoma
64,015 9,641
0
0
54,697 3,367
17,158
148,877
Oregon
25,609
625 0 0
27,670
14,991
6,077
74,972
Pennsylvania
1,402
103 0 0
35,386
19,004
6,007
61,902
Puerto Rico
0 0 0 0
208,626 0 0
208,626
Rhode Island
0 0 0 0 0
35 0
35
South Carolina
32,694 8,715
0
0
59,023 9,259 8,856
118,547
South Dakota
40,132
3,274
138
2,184
36,227
122
8,018
90,096
Tennessee
13,235 4,320
0
0
28,817 8,902 5,422
60,695
Texas
112,949
2,633
0
0
78,284
35,494
18,034
247,395
Utah
5,631
94
8
0
12,097
2,063
3,296
23,190
Vermont
2,591 400
0 6,085 6,106 2,790 3,026
20,999
Virgin Islands
5,255 0 0 0
14,284 0 0
19,539
Virginia
3,083
522 0 0
9,964
54,387
3,406
71,362
Washington
22,278
196 0 0
37,235
24,556
7,018
91,282
West Virginia
2,508
6
0
28,285 3,613
17,607 1,377
53,396
Wisconsin
33,042 4,181
34
0 75,248
123 18,379
131,007
Wyoming
14,573 203
0
11,041
17,336 4,528 4,575
52,256
Total
$1,296,572 $75,965
$6,142 $309,789
$1,674,636 $545,419 $359,222
$4,267,746
Source: Universal Service Administrative Company.
2 - 16

Table 2.13

High-Cost Support Fund Disbursements by Year-End Holding Company Structure

(in Thousands)

Rank Holding Company Name 1

2008
2009
2010

Total

1
Verizon Communications Inc. 2, 6
$308,584 $679,881 $359,758 $1,348,223
2
AT&T
Inc.
426,412 435,421 473,158 1,334,992
3
CenturyLink, Inc. 3
278,575 351,860 303,992 934,427
4
Telephone and Data Systems, Inc.
231,869
236,141
235,943
703,952
5
Alltel Corporation 2
413,875
-
-
413,875
6
Windstream
Corporation
97,073 110,335 114,626 322,035
7
Frontier Communications Corporation 4, 6
81,045 70,029
155,930 307,004
8
Telapex, Inc. 5
74,187 77,227 78,765 230,179
9
América
Móvil
98,343 28,342 92,006 218,691
10
Qwest Communications International, Inc.
70,234
66,519
66,567
203,320
11
Sprint Nextel Corporation 2
90,479 49,962 46,862 187,303
12
FairPoint Communications, Inc.
55,863
48,389
42,090
146,343
13
Alaska Communications Systems Holdings, Inc.
41,709
45,629
55,953
143,291
14
Embarq 3
97,041 -
-
97,041
1 Holding company name indicates common control/common ownership of carriers. Carriers appear on this list if
they are in the top ten for any of the presented years.
2 Verizon Communications Inc. acquired Alltel Corporation from Atlantis Holdings LLC (Atlantis) on January 9,
2009 (http://news.vzw.com/news/2009/01/pr2009-01-09.html, retrieved March 5, 2009). 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 is reclaiming that support in 2010
and 2011.
3 CenturyTel merged with Embarq on July 1, 2009. See
http://www.centurytelembarqmerger.com/pdf/pressreleases/News_Release_Legal_Close_06-30-09_FINAL.pdf.
CenturyTel, Inc. offically changed their name to CenturyLink, Inc. on May 20, 2010. See
http://news.centurylink.com/index.php?s=43&item=2313.
4 Citizens Communications Company changed their name to Frontier Communications Corporation on July 31, 2008.
5 Telapex, Inc. owns Cellular South.
6 Frontier Communications purchased study areas in 14 states from Verizon Communications on July 1, 2010.
2 - 17

Table 2.14

High-Cost Support Fund Disbursements by Holding Company: 2010

High-Cost

Safety Net

Safety

High-Cost

Interstate

Interstate

Local

Total

Loop

Additive

Valve

Model

Common Line

Access

Switching

Total

Supported Support

Rank Holding Company Name

Support

Support

Support

Support

Support

Support

Support

Support

Lines

per Line
(in Thousands)
1
AT&T Inc.
$59,437
$1,671
$4
$167,813
$119,979
$114,466
$9,788
$473,158
37,266
$12.70
2
Verizon Communications Inc.
86,662
6,839
118
12,173
96,747
134,966
22,252
359,758
34,894
10.31
3
CenturyLink, Inc.
99,175
691
21
10,275
92,958
84,629
16,243
303,992
7,337
41.44
4
Telephone and Data Systems, Inc.
65,945
10,557
199
4,247
110,152
14,602
30,241
235,943
3,994
59.07
5
Frontier Communications Corporation
2,390
1,907
0
18,230
19,234
99,728
14,440
155,930
5,844
26.68
6
Windstream Corporation
10,777
7,192
0
5,876
65,186
16,172
9,423
114,626
3,310
34.63
7
América Móvil
0
0
0
0
92,006
0
0
92,006
1,527
60.25
8
Telapex, Inc.
16,745
341
0
46,148
9,659
3,673
2,200
78,765
787
100.12
9
Qwest Communications International, Inc.
589
0
0
22,688
0
42,748
542
66,567
8,418
7.91
10
Alaska Communications Systems Holdings, Inc.
19,520
96
0
0
30,579
0
5,757
55,953
324
172.63
11
Sprint Nextel Corporation
7,502
120
0
5,496
15,830
15,650
2,263
46,862
10,100
4.64
12
General Communication, Inc.
15,342
130
0
0
25,425
0
5,891
46,787
226
207.25
13
FairPoint Communications, Inc.
8,575
166
0
7,325
16,595
5,076
4,353
42,090
1,432
29.40
14
Rural Telephone Service Company, Inc.
21,396
195
3,715
0
14,889
153
331
40,680
65
629.23
15
American Broadband Communications et al.
19,309
266
0
80
10,467
93
5,603
35,818
49
733.20
16
Farmers Telephone Cooperative, Inc.
15,598
1,458
0
0
14,403
0
835
32,295
79
408.46
17
Deutsche Telekom AG
244
245
0
114
27,554
1,962
204
30,323
2,341
12.95
18
Matanuska Telephone Association, Inc.
15,474
0
0
0
13,544
0
1,253
30,271
68
444.75
19
Coral Wireless, LLC
19,526
0
0
0
9,545
50
910
30,031
50
595.53
20
Consolidated Communications, Inc.
9,859
0
0
0
18,371
0
1,503
29,734
247
120.37
21
EATEL Corp., Inc.
17,553
1,018
0
0
10,804
0
269
29,644
34
871.28
22
Sandwich Isles Communications, Inc.
17,405
0
0
0
7,431
0
748
25,583
2 12,371.11
23
Valley Telephone Cooperative, Inc.
13,726
214
0
0
6,794
47
1,781
22,562
15
1,473.87
24
Pioneer Telephone Cooperative (OK)
5,622
1,839
0
0
11,231
0
2,280
20,972
77
274.00
25
Golden West Telecommunications Cooperative, Inc.
10,197
1,178
0
0
8,531
0
1,043
20,950
40
527.02
Other Carriers
738,002
39,839
2,084
9,326
826,721
11,405
219,068
1,846,445
7,220
255.73
Total
1,296,572
75,965
6,142
309,789
1,674,636
545,419
359,222
4,267,746
125,745
33.94
2 - 18

Table 2.15

Study Areas with the Highest Per-Line High-Cost Support Fund Disbursement: 2010


Supported

Annual Support

Rank Incumbent ETC

State

Holding Company1

Support2

Lines3

per Line
1
Westgate Communications LLC d/b/a Weavtel
Washington
Westgate Communications LLC
$375,858
16
$23,491
2
Adak Tel Utility
Alaska
Adak Eagle Enterprises, LLC
2,784,558
165
16,876
3
Beaver Creek Telephone Company
Washington
May, Bott et al.
465,690
28
16,632
4
Border To Border
Texas
Border to Border Communications, Inc.
1,828,017
135
13,541
5
Sandwich Isles Comm.
Hawaii
Sandwich Isles Communications, Inc.
25,583,457
2,068
12,371
6
Allband Communications Cooperative
Michigan
Allband Communications Cooperative
1,030,962
96
10,739
7
Accipiter Comm.
Arizona
Accipiter Communications, Inc.
3,340,878
360
9,280
8
Terral Tel. Co.
Oklahoma
Terral Telephone Company
2,060,376
250
8,242
9
South Park Tel. Co.
Colorado
American Broadband Communications et al.
1,126,056
180
6,256
10
Dell Tel. Co-Op. - TX
Texas
Dell Telephone Cooperative, Inc.
4,480,362
769
5,826
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. The Federal Communications Commission now receives the
number of supported lines at the end of each quarter. The number of lines in 2010 was based on the total number of supported lines as of June 30, 2010.
2 - 19

Table 2.16

High-Cost Support Fund Claim History

(in Millions)

Interstate

Year

High-Cost Safety Net

Safety

High-Cost Common

Interstate

Local

Loop

Additive

Valve

Model

Line

Access

Switching

Total

Support

Support

Support

Support

Support

Support

Support

Support

2009
$1,420
$52
$3
$332
$1,428
$598
$389
$4,221
2010
1,360
76
6
320
1,695
577
405
4,440
2011*
1,207
94
7
294
1,637
535
380
4,155
Notes: Detail may not appear to add to totals due to rounding. Claims are initial payments except for true-ups in ICLS and
LSS in 2009.
* Estimate for 2011 extrapolated from claims through August 2011.
Source: Universal Service Administrative Company.

Chart 2.5

Total High-Cost Support Fund Claims and Reserve

$5,000
$4,500
$4,000
$3,500
$3,000
Dollars
$2,500
$2,000
Millions of
$1,500
$1,000
$500
$0
2009
2010
2011
Reserve
$157 $242
Claims
$4,221
$4,440
$4,155
Note: The reserve consists of the 2010 Sprint and Verizon Wireless recovery and the 2011 CETC reserve (see Table 1.10).
2 - 20

Table 2.17

High-Cost Support Fund Claim History - ILECs and CETCs

(in Millions)

Interstate

High-Cost

Safety Net

High-Cost

Common

Interstate

Local

Year

Companies

Loop

Additive

Safety Valve

Model

Line

Access

Switching

Total

Support

Support

Support

Support

Support

Support

Support

Support

ILECs
$1,008.8
$37.9
$2.6
$169.1
$1,069.4
$473.0
$284.5
$3,045.3
2009
CETCs
411.2
13.8
0.2
163.0
358.7
124.7
104.3
1,175.8
Total
1,420.0
51.6
2.7
332.2
1,428.1
597.7
388.7
4,221.1
ILECs
961.5
58.7
4.8
156.2
1,117.7
472.4
297.9
3,069.3
2010
CETCs
398.9
17.7
1.2
164.1
577.1
104.1
107.1
1,370.4
Total
1,360.4
76.4
6.0
320.2
1,694.9
576.6
405.1
4,439.7
ILECs
901.9
74.9
4.9
147.0
1,128.4
457.6
288.5
3,003.3
2011*
CETCs
304.9
19.0
2.1
147.3
509.0
77.8
91.2
1,151.3
Total
1,206.8
93.9
7.0
294.3
1,637.4
535.4
379.7
4,154.6
Notes: 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 2011 extrapolated from claims through August 2011.
Source: Universal Service Administrative Company.

Chart 2.6

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

(in Millions)
$3,500
$3,000
$2,500
t
$2,000
$1,500

Suppor

$1,000
$500
$0
ILECs
2009
2010
2011
CETCs
CETC Reserve
Note: The reserve consists of the 2010 Sprint and Verizon Wireless recovery and the 2011 CETC reserve (see Table 1.10).
2 - 21

Table 2.18

High-Cost Support Fund Claims - by Mechanism and State: 2010

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
$16,541
$786
$0 $37,878 $20,450 $18,225 $4,711 $98,591
Alaska
80,961
1,187
0
0
90,294
0
23,198
195,640
American Samoa
0
0
0
0
3,049
0
1,307
4,356
Arizona
28,387
783
0
0
15,497
16,443
8,147
69,256
Arkansas
65,160
191
0
0
60,344
300
9,277
135,272
California
26,681
587
0
0
27,574
38,725
4,614
98,181
Colorado
30,191
176
0
0
22,538
18,511
4,520
75,938


Connecticut
0 0 0 0 0
514 0
514


Delaware
0 0 0 0 0
262 0
262


District
of
Columbia
0 0 0 0 0 0 0 0
Florida
5,463
140
0
0
10,879
54,199
3,204
73,884
Georgia
33,129
3,109
0
0
53,755
21,296
11,530
122,819
Guam
3,618
0
0
0
12,402
0
521
16,541
Hawaii
40,175
0
0
0
19,200
2,128
2,121
63,624
Idaho
21,036
78
0
0
13,151
12,692
5,786
52,742
Illinois
20,605
563
0
0
32,384
9,648
10,805
74,004
Indiana
25,817
2,102
0
0
27,185
16,451
7,939
79,495
Iowa
35,033
3,750
137
0
64,511
9,457
24,550
137,437


Kansas
120,733 1,594 5,805
0
76,986 6,294
15,672
227,083
Kentucky
33,123
2,788
0
14,791
33,314
15,445
5,537
104,998
Louisiana
81,947
2,063
0
0
44,831
13,027
5,982
147,851
Maine
3,103
440
0
1,770
14,824
29
6,605
26,772


Maryland
142 0 0 0
899
2,410
440
3,891
Massachusetts
7
41
0
0
197
1,525
520
2,291
Michigan
20,062
860
0
0
25,889
592
10,256
57,659
Minnesota
38,674
4,436
9
0
69,578
3,170
19,198
135,065
Mississippi
30,662
809
0
193,486
20,855
21,687
4,634
272,133
Missouri
48,415
1,645
0
0
39,221
10,492
5,955
105,728
Montana
31,596
180
0
14,514
31,188
790
6,843
85,111
Nebraska
34,431
744
0
9,500
41,685
7,166
19,677
113,203
Nevada
5,733
669
0
0
6,199
9,983
5,867
28,452
New Hampshire
87
421
0
0
4,110
1,553
3,871
10,042
New Jersey
0
1
0
0
361
269
814
1,445
New Mexico
33,194
554
0
0
22,980
8,372
10,336
75,437
New York
4,578
2,228
0
0
14,330
12,767
12,917
46,819
North Carolina
10,530
332
0
0
39,721
24,784
6,164
81,531
North Dakota
33,053
8,118
19
0
42,102
688
13,996
97,976
Northern Mariana Islands
0
0
0
0
0
99
1,044
1,142
Ohio
10,130
797
0
0
14,315
10,089
3,261
38,592
Oklahoma
63,918
9,144
0
0
54,702
3,876
17,951
149,591
Oregon
25,860
514
0
0
27,204
15,575
8,510
77,664
Pennsylvania
1,382
104
0
0
34,827
19,763
5,323
61,399


Puerto
Rico
0 0 0 0
180,129 0 0
180,129


Rhode
Island
0 0 0 0 0
36 0
36
South Carolina
32,913
8,550
0
0
53,249
9,702
7,783
112,198
South Dakota
41,171
3,074
57
1,886
34,742
148
9,428
90,507


Tennessee
13,255 4,447
0
0
29,407 9,241 5,981
62,331
Texas
117,101
2,719
0
0
81,266
38,483
19,553
259,122
Utah
5,927
94
7
0
10,939
2,132
3,837
22,935


Vermont
2,559 418
0 6,085 6,496 1,927 2,902
20,387
Virgin Islands
5,733
0
0
0
13,266
0
0
18,999
Virginia
3,238
532
0
0
10,664
57,912
3,977
76,322
Washington
21,657
227
0
0
38,758
24,208
7,782
92,632
West Virginia
2,308
0
0
29,025
3,329
18,661
2,535
55,857
Wisconsin
35,754
4,272
0
0
82,868
148
22,093
145,136
Wyoming
14,640
177
0
11,308
16,234
4,681
5,602
52,641
Total
$1,360,414
$76,444
$6,034
$320,243 $1,694,880
$576,573
$405,076 $4,439,664
Source: Universal Service Administrative Company.
2 - 22

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 supports 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

Total commitments to the E-rate program dropped from $2.9 billion in funding year 2009 to $2.6
billion in funding year 2010. Disbursements in funding year 2009 were $2.0 billion as compared to $1.8
billion in funding year 2008. 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 2008 through 2010. 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.

2 - 23

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
$1,695,012 $65,830 $110,223 $1,285,356 $233,603
$885,866 $134,137 $675,009
1999
2,147,209
66,061
180,570
1,597,896
302,682
1,364,921
148,772
633,517
2000
2,071,427
65,853
109,936
1,685,832
209,807
1,133,546
218,756
719,124
2001
2,185,325
57,824
164,419
1,748,575
214,508
1,183,555
224,800
776,970
2002
2,230,278
60,324
159,532
1,760,487
249,935
1,119,707
249,987
860,584
2003
2,698,267
63,237
200,097
2,173,434
261,499
1,514,385
276,043
907,839
2004
2,161,565
54,303
157,396
1,694,919
254,946
969,207
246,034
946,324
2005
2,106,764
54,367
150,151
1,695,026
207,220
871,833
259,084
975,846
2006
1,965,834
63,712
128,818
1,523,559
249,745
621,250
287,239 1,057,345
2007
2,437,477
60,647
173,791
1,962,667
240,372
958,351
308,637 1,170,489
2008
2,511,708
75,906
145,962
2,030,356
259,484
894,608
336,529 1,280,571
2009
2,885,700
83,880
194,027
2,336,048
271,746
1,204,238
348,851 1,332,611
2010
2,584,190
89,809
221,579
1,998,929
273,872
815,803
392,335 1,376,051

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
1,653,985
47,456
140,254
1,268,763
197,512
1,105,506
95,499
452,980
2000
1,649,809
43,600
88,521
1,385,363
132,325
1,035,185
133,463
481,161
2001
1,697,981
41,940
117,157
1,400,704
138,181
1,007,845
149,542
540,594
2002
1,596,827
42,100
105,786
1,283,825
165,116
812,661
170,995
613,171
2003
1,946,264
44,327
135,759
1,594,000
172,179
1,083,404
203,699
659,161
2004
1,530,664
39,723
107,140
1,203,719
180,082
649,298
192,945
688,421
2005
1,609,147
48,603
109,910
1,274,881
175,753
624,857
214,559
769,731
2006
1,541,025
45,932
95,983
1,196,955
202,155
460,011
235,301
845,713
2007
1,897,374
47,976
134,911
1,510,610
203,877
707,412
258,103
931,860
2008
1,824,458
57,937
109,959
1,441,091
215,471
529,210
273,598 1,021,651
2009
2,014,291
66,136
142,560
1,591,671
213,924
698,395
280,871 1,035,025
2010
906,671
38,391
74,581
721,405
72,295
243,285
186,071
477,315
Note: Activity through June 30, 2011. 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 - 24

Table 2.20

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

Funding Year 2008: July 1, 2008 through June 30, 2009


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
$715,346
$637,018
$798,412
$633,532
$31,102,333
$27,318,996
$8,004,806
$6,494,136
$40,620,898
$35,083,683
Alaska
137,097
113,902
290,496
259,640
25,615,191
21,163,158
0
0
26,042,784
21,536,700
American Samoa
0
0
0
0
0
0
1,593,682
1,058,945
1,593,682
1,058,945
Arizona
1,354,263
1,150,278
8,319,323
6,750,355
52,885,049
37,726,130
266,321
243,248
62,824,956
45,870,010
Arkansas
321,923
277,111
105,108
85,000
11,845,772
7,566,865
11,885,021
8,648,377
24,157,824
16,577,353
California
8,132,572
5,180,686
8,544,540
5,726,183
361,959,492
256,853,255
14,284,470
9,059,314
392,921,073
276,819,439
Colorado
837,728
588,813
908,890
505,212
18,447,823
14,102,144
532,641
1,147,911
20,727,082
16,344,081
Connecticut
178,012
148,994
1,954,986
1,417,491
15,014,749
12,347,026
9,259,558
8,315,699
26,407,305
22,229,210
Delaware
5,507
2,923
191,492
134,516
758,767
696,026
0
0
955,767
833,465
District of Columbia
859,807
439,223
1,577,428
997,355
6,729,207
5,122,392
1,421,205
195,695
10,587,648
6,754,665
Florida
3,100,569
2,546,114
5,224,096
3,735,417
67,134,106
58,994,259
13,176,627
11,748,445
88,635,398
77,024,235
Georgia
4,981,119
4,404,142
1,679,471
1,344,859
65,730,993
54,660,341
10,110,799
9,385,070
82,502,382
69,794,413
Guam
17,172
13,331
19,550
11,855
873,516
482,338
0
0
910,238
507,525
Hawaii
0
0
2,024,130
1,152,650
1,190,971
744,394
138,025
49,239
3,353,126
1,946,283
Idaho
130,474
113,462
413,053
349,695
5,245,124
4,420,749
45,943
42,787
5,834,594
4,926,692
Illinois
1,714,636
1,499,758
5,335,178
4,286,404
78,547,249
51,139,398
1,568,235
1,411,352
87,165,298
58,336,912
Indiana
2,870,343
2,470,197
1,274,053
974,845
18,916,718
15,571,695
7,413,843
6,723,856
30,474,957
25,740,593
Iowa
174,715
130,389
630,731
426,594
7,627,311
6,105,140
3,790,662
3,641,234
12,223,419
10,303,357
Kansas
716,195
635,415
392,374
341,400
14,339,015
12,133,827
1,938,036
1,802,680
17,385,620
14,913,322
Kentucky
755,163
481,818
204,938
143,652
23,280,077
18,991,116
9,360,964
9,244,464
33,601,142
28,861,051
Louisiana
4,840,552
4,008,654
3,253,036
2,965,212
30,981,909
26,357,436
4,438,315
3,218,240
43,513,811
36,549,542
Maine
84,198
78,645
797,005
647,674
4,459,102
3,712,431
3,051,415
2,866,196
8,391,719
7,304,946
Maryland
309,922
260,424
1,790,289
1,286,856
10,162,088
9,292,597
194,944
194,944
12,457,243
11,034,820
Massachusetts
1,565,297
1,452,787
3,376,492
2,741,240
25,420,004
18,667,300
649,468
600,741
31,011,261
23,462,068
Michigan
1,565,300
1,320,119
2,988,830
2,384,092
40,371,074
32,576,746
6,363,854
5,393,233
51,289,058
41,674,189
Minnesota
1,473,757
938,298
2,287,521
1,704,731
13,257,548
10,848,229
5,353,416
5,151,302
22,372,242
18,642,560
Mississippi
1,637,326
1,383,779
1,250,693
989,973
25,918,152
20,948,665
5,799,816
4,812,564
34,605,986
28,134,982
Missouri
1,835,007
1,703,037
1,425,892
756,483
21,744,361
17,192,872
8,469,478
7,647,669
33,474,739
27,300,062
Montana
63,316
48,314
417,433
348,616
5,043,919
4,266,975
9,326
7,146
5,533,994
4,671,051
Nebraska
239,279
133,489
416,733
337,471
8,119,656
7,620,733
1,342,794
1,263,899
10,118,461
9,355,592
Nevada
365,929
320,412
338,738
281,988
4,361,624
3,577,835
0
0
5,066,292
4,180,235
New Hampshire
7,901
6,477
344,809
222,646
2,404,004
1,954,208
64,206
57,380
2,820,921
2,240,711
New Jersey
1,394,704
1,194,647
5,885,616
4,565,674
47,055,975
36,073,901
1,441,972
283,855
55,778,266
42,118,076
New Mexico
180,563
162,562
3,810,845
2,508,868
28,155,327
21,343,286
616,848
550,010
32,763,583
24,564,726
New York
10,469,709
5,890,119
31,654,782
24,214,821
298,759,282
104,082,979
31,087,407
25,302,012
371,971,181
159,489,931
North Carolina
1,787,535
1,548,460
1,562,661
1,112,326
58,459,108
51,747,891
1,603,641
1,169,428
63,412,944
55,578,104
North Dakota
8,009
6,239
344,740
292,168
939,188
781,951
2,530,550
2,435,791
3,822,487
3,516,149
Northern Mariana Isl
11,636
0
13,419
13,089
906,720
893,081
0
0
931,774
906,170
Ohio
3,059,554
2,812,586
9,368,418
6,811,416
58,986,628
42,800,360
4,074,458
3,787,252
75,489,059
56,211,614
Oklahoma
2,053,907
1,532,963
2,229,480
1,694,990
37,080,968
31,264,311
118,558
103,189
41,482,913
34,595,453
Oregon
273,334
157,511
880,619
588,909
14,157,900
12,008,212
2,469,505
1,314,996
17,781,358
14,069,627
Pennsylvania
2,979,277
2,650,162
9,933,881
7,235,322
62,743,283
53,234,520
14,234,499
12,940,586
89,890,940
76,060,589
Puerto Rico
3,287,829
2,655,820
4,904,369
3,355,739
8,451,122
7,364,156
0
0
16,643,319
13,375,716
Rhode Island
94,670
87,637
614,769
552,476
3,229,875
2,904,076
2,035,484
2,004,913
5,974,798
5,549,101
South Carolina
447,532
349,102
420,268
376,171
22,717,249
16,911,152
15,876,902
15,061,518
39,461,950
32,697,944
South Dakota
6,951
5,767
1,598,914
1,349,066
3,277,028
2,613,182
2,032,697
1,858,977
6,915,591
5,826,992
Tennessee
1,009,455
881,307
901,287
842,448
54,038,215
47,559,906
4,513,317
1,975,864
60,462,274
51,259,526
Texas
3,338,718
1,866,492
8,311,801
6,565,434
241,379,223
169,028,787
7,447,665
4,825,081
260,477,407
182,285,795
Utah
223,103
123,603
141,414
101,601
5,541,011
4,455,584
14,094,840
9,267,220
20,000,369
13,948,007
Vermont
21,914
16,682
553,440
377,124
1,406,226
1,119,165
50,189
42,968
2,031,769
1,555,938
Virgin Islands
0
0
446,494
413,082
71,144
60,823
6,157,966
5,058,585
6,675,603
5,532,491
Virginia
1,556,884
1,416,678
943,163
691,147
29,468,236
26,269,071
455,241
444,940
32,423,525
28,821,836
Washington
1,590,670
1,162,068
1,088,603
915,592
28,235,722
24,535,686
4,431,459
3,873,682
35,346,454
30,487,028
West Virginia
135,857
109,701
53,449
41,037
9,897,113
7,718,061
2,910,211
2,736,217
12,996,629
10,605,017
Wisconsin
954,501
790,740
1,493,311
1,239,025
14,230,683
11,757,323
8,233,044
7,907,733
24,911,539
21,694,821
Wyoming
29,408
28,321
230,590
158,113
1,681,522
1,407,765
2,539,590
2,100,373
4,481,111
3,694,572
Totals
$75,906,148
$57,937,172
$145,962,052
$109,959,275
$2,030,355,653
$1,441,090,506
$259,483,913
$215,470,956
$2,511,707,765 $1,824,457,910

Note: Activity through June 30, 2011. 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 - 25

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
$720,679
$55,909,298
$40,452,531
$7,214,269
$7,158,400
$65,129,849
$49,064,236
Alaska
178,248
140,514
263,632
216,854
24,775,165
22,012,997
0
0
25,217,046
22,370,366
American Samoa
0
0
0
0
0
0
4,967,160
2,758,238
4,967,160
2,758,238
Arizona
1,019,216
853,753
10,724,960
6,993,927
65,031,575
50,486,413
1,617,962
1,452,203
78,393,713
59,786,296
Arkansas
305,276
239,984
509,940
475,400
13,550,503
9,377,367
11,833,538
7,587,213
26,199,257
17,679,964
California
7,486,147
5,262,851
12,697,844
8,375,821
395,822,581
217,791,422
15,775,940
6,997,328
431,782,511
238,427,423
Colorado
949,976
746,226
799,291
571,184
21,954,895
15,136,086
439,883
350,556
24,144,045
16,804,051
Connecticut
170,928
146,978
1,500,024
1,049,604
14,272,010
12,573,091
6,698,373
6,113,126
22,641,335
19,882,799
Delaware
296,981
296,862
145,794
95,718
786,648
530,295
1,307,702
1,299,343
2,537,124
2,222,217
District of Columbia
554,819
413,989
1,923,691
1,137,944
1,353,825
875,301
1,596,237
318,609
5,428,572
2,745,843
Florida
2,930,786
2,689,691
17,378,836
13,884,544
95,448,183
81,989,920
2,998,486
2,613,611
118,756,290
101,177,766
Georgia
4,789,355
4,297,666
2,882,380
2,521,974
77,934,768
61,318,589
10,175,961
9,289,607
95,782,464
77,427,837
Guam
13,246
0
12,242
1,834
757,840
258,361
0
0
783,328
260,196
Hawaii
236,466
221,476
2,925,391
2,046,060
1,265,194
749,481
0
0
4,427,052
3,017,017
Idaho
165,302
143,697
153,324
131,747
6,368,243
5,593,955
4,948,222
652,911
11,635,091
6,522,310
Illinois
2,066,767
1,845,053
5,824,270
3,817,615
82,304,825
51,817,234
2,079,623
1,949,342
92,275,484
59,429,244
Indiana
3,755,124
3,425,817
2,828,381
2,437,622
21,108,448
17,197,753
9,379,372
8,143,866
37,071,325
31,205,058
Iowa
177,341
123,599
1,084,982
828,262
8,917,196
7,131,712
4,669,649
4,119,432
14,849,168
12,203,006
Kansas
918,322
716,157
553,186
444,034
14,956,827
12,549,542
3,538,919
1,965,948
19,967,254
15,675,681
Kentucky
698,695
559,605
324,303
169,764
41,756,996
29,159,960
9,978,790
8,992,671
52,758,784
38,882,001
Louisiana
4,947,146
4,250,431
2,060,226
1,653,178
50,358,710
42,277,568
1,382,405
1,139,687
58,748,487
49,320,864
Maine
73,044
66,085
957,607
768,651
5,509,997
4,323,320
3,118,623
2,966,436
9,659,272
8,124,492
Maryland
1,151,869
253,558
1,789,126
1,147,686
16,640,909
9,733,092
724,252
668,680
20,306,155
11,803,016
Massachusetts
3,888,731
3,181,947
3,448,485
2,602,644
31,958,421
25,687,653
531,423
458,024
39,827,060
31,930,267
Michigan
1,800,861
1,637,324
3,083,370
2,305,950
43,460,536
33,333,077
8,203,110
6,238,916
56,547,877
43,515,267
Minnesota
1,333,869
1,249,931
2,446,056
1,893,437
14,197,192
11,739,743
5,421,943
5,074,615
23,399,060
19,957,727
Mississippi
1,747,187
1,560,116
2,049,445
1,651,456
27,071,979
21,871,295
5,296,410
4,819,430
36,165,021
29,902,297
Missouri
1,257,721
1,188,697
1,898,240
1,129,145
28,452,145
22,401,471
9,944,940
8,337,939
41,553,046
33,057,251
Montana
50,419
38,543
226,711
188,087
4,451,413
3,613,175
16,375
8,850
4,744,918
3,848,657
Nebraska
160,496
143,705
395,457
313,294
8,672,117
7,920,829
1,628,470
1,541,309
10,856,538
9,919,138
Nevada
291,989
257,033
838,524
795,610
7,345,465
4,950,739
0
0
8,475,979
6,003,382
New Hampshire
7,047
6,847
523,869
399,227
2,263,953
1,850,844
65,097
58,713
2,859,966
2,315,631
New Jersey
2,053,621
1,386,680
9,800,571
7,944,126
62,333,048
45,430,163
562,222
315,504
74,749,462
55,076,472
New Mexico
167,573
142,516
4,252,863
2,140,895
36,514,374
24,730,175
2,601,522
559,906
43,536,332
27,573,492
New York
11,027,373
6,887,509
40,740,902
30,516,781
232,471,343
126,830,674
32,318,760
26,069,564
316,558,378
190,304,528
North Carolina
1,786,665
1,660,167
2,359,525
1,695,519
63,444,002
49,196,453
3,272,896
1,408,618
70,863,088
53,960,757
North Dakota
7,754
6,562
369,016
283,760
2,942,174
2,699,341
3,464,736
2,313,874
6,783,680
5,303,538
Northern Mariana Isl
0
0
13,377
13,228
976,888
906,975
0
0
990,265
920,203
Ohio
3,420,419
3,092,173
9,371,160
7,385,320
64,662,281
51,987,627
4,166,614
3,872,802
81,620,474
66,337,921
Oklahoma
2,389,336
2,102,477
2,667,555
2,235,450
78,381,869
48,391,736
108,763
89,251
83,547,522
52,818,913
Oregon
362,658
325,017
574,754
445,170
14,371,654
12,045,835
2,341,027
1,379,383
17,650,093
14,195,405
Pennsylvania
3,029,019
2,800,394
9,207,346
6,354,586
69,402,087
58,404,644
14,077,516
13,477,980
95,715,968
81,037,604
Puerto Rico
6,492,576
4,291,971
4,636,318
3,365,187
42,708
28,241
0
0
11,171,602
7,685,399
Rhode Island
141,544
130,362
891,909
850,070
4,956,204
4,083,881
2,563,998
2,465,999
8,553,655
7,530,313
South Carolina
541,318
418,153
3,067,402
958,616
33,032,670
21,317,588
14,599,577
13,909,410
51,240,967
36,603,767
South Dakota
5,801
4,932
1,924,619
1,097,375
2,234,452
1,743,336
1,776,969
1,704,052
5,941,841
4,549,695
Tennessee
913,517
804,670
1,359,155
875,096
60,062,986
49,382,879
3,054,545
2,269,123
65,390,203
53,331,769
Texas
2,391,095
1,574,694
9,829,459
7,684,810
325,669,375
186,794,330
9,106,090
6,622,579
346,996,019
202,676,412
Utah
234,590
153,849
154,742
102,361
7,643,286
6,002,115
15,856,283
10,790,356
23,888,901
17,048,681
Vermont
15,915
12,147
871,592
582,258
1,566,963
1,167,373
45,864
40,091
2,500,334
1,801,869
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
1,802,857
1,401,581
1,173,789
33,947,848
28,708,138
389,801
376,924
37,979,518
32,061,709
Washington
1,464,413
1,197,188
2,441,065
2,196,339
27,326,301
22,391,160
4,724,619
3,920,367
35,956,397
29,705,053
West Virginia
265,169
204,269
83,091
62,822
12,004,655
9,197,217
4,159,379
2,862,180
16,512,294
12,326,488
Wisconsin
470,574
423,489
2,411,765
2,049,071
16,188,226
12,582,602
8,552,475
8,527,867
27,623,040
23,583,028
Wyoming
29,369
23,351
259,906
181,563
1,170,665
900,277
2,373,514
2,139,740
3,833,454
3,244,931
Totals
$83,879,914
$66,136,195
$194,026,920
$142,560,177
$2,336,047,656
$1,591,671,316
$271,745,693
$213,923,629
$2,885,700,183 $2,014,291,317

Note: Activity through June 30, 2011. 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 - 26

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
$927,170
$160,300
$835,623
$284,462
$44,727,465
$16,575,555
$10,755,848
$377,433
$57,246,106
$17,397,750
Alaska
168,074
112,143
172,747
121,766
27,404,578
16,316,470
0
0
27,745,400
16,550,380
American Samoa
0
0
0
0
0
0
1,560,647
2,080
1,560,647
2,080
Arizona
1,382,208
399,287
8,424,276
3,997,263
53,028,282
17,470,446
1,130,684
125,502
63,965,450
21,992,498
Arkansas
357,837
197,507
232,953
129,796
19,261,965
5,967,569
13,200,151
214,601
33,052,906
6,509,473
California
9,335,170
3,414,886
13,957,052
6,696,390
319,515,810
109,016,123
21,120,348
5,311,512
363,928,379
124,438,911
Colorado
921,793
298,065
932,985
466,263
33,159,176
11,559,660
627,713
425,408
35,641,667
12,749,396
Connecticut
184,353
80,438
1,506,053
388,902
18,008,588
8,926,278
4,119,729
3,113,946
23,818,724
12,509,564
Delaware
301,642
267,759
202,436
40,605
947,827
26,582
1,433,214
0
2,885,119
334,947
District of Columbia
1,269,572
94,774
2,356,863
463,924
8,065,579
432,388
1,368,185
2,646
13,060,198
993,732
Florida
3,675,133
827,929
54,090,144
2,989,264
57,600,381
25,213,340
905,761
298,691
116,271,420
29,329,225
Georgia
4,376,816
3,776,102
1,758,041
953,693
68,002,545
29,304,084
10,072,862
2,481,906
84,210,265
36,515,785
Guam
25,033
0
5,179
3,819
0
0
0
0
30,212
3,819
Hawaii
90,275
0
3,083,399
293,550
3,475,072
628
0
0
6,648,746
294,177
Idaho
145,781
31,954
491,637
405,695
5,988,975
684,626
4,898,383
2,349,611
11,524,776
3,471,885
Illinois
2,128,206
833,239
4,293,499
1,023,034
98,101,177
40,542,816
5,229,702
184,830
109,752,585
42,583,920
Indiana
4,182,785
2,662,570
3,624,132
2,248,657
36,706,319
14,094,563
420,060
181,415
44,933,295
19,187,205
Iowa
163,545
102,639
832,021
467,106
8,564,879
3,801,850
4,565,942
3,484,012
14,126,388
7,855,607
Kansas
846,269
326,865
229,418
83,716
14,283,941
6,114,961
2,480,249
186,441
17,839,877
6,711,983
Kentucky
740,316
360,433
348,263
210,306
35,798,966
15,280,151
8,961
0
36,896,506
15,850,890
Louisiana
5,599,203
3,057,515
2,767,936
1,262,509
48,357,113
25,173,929
3,045,096
424,525
59,769,348
29,918,478
Maine
80,596
9,043
479,572
108,794
3,695,349
879,438
3,859,699
2,023,455
8,115,216
3,020,730
Maryland
539,165
220,615
2,073,282
423,981
24,928,617
2,934,748
1,091,892
516,068
28,632,956
4,095,412
Massachusetts
1,833,010
1,395,102
3,337,143
1,651,770
24,133,341
13,616,796
388,152
278,464
29,691,646
16,942,133
Michigan
2,275,239
843,153
2,697,421
912,824
38,698,573
9,769,805
6,696,291
3,990,723
50,367,525
15,516,505
Minnesota
1,373,582
407,089
2,627,653
1,058,673
21,883,459
3,348,077
5,304,332
3,578,980
31,189,026
8,392,819
Mississippi
1,929,032
1,002,797
1,220,503
721,312
25,332,665
10,112,551
7,415,946
457,211
35,898,146
12,293,871
Missouri
1,493,714
662,435
3,560,936
674,212
22,464,632
6,563,827
11,751,432
4,361,802
39,270,713
12,262,277
Montana
56,694
32,421
196,118
151,872
4,747,853
2,826,523
23,273
9,736
5,023,939
3,020,552
Nebraska
219,647
113,284
462,579
302,561
8,774,308
5,574,874
1,315,000
882,627
10,771,534
6,873,345
Nevada
304,318
9,393
621,859
336,443
7,034,663
771,702
0
0
7,960,841
1,117,539
New Hampshire
7,670
1,413
659,312
288,374
2,433,958
664,323
63,858
34,593
3,164,799
988,704
New Jersey
1,830,304
414,020
8,805,800
3,477,879
54,290,596
9,061,712
499,807
160,363
65,426,506
13,113,973
New Mexico
606,598
95,247
3,338,991
1,375,621
29,009,864
11,335,829
3,083,418
366,028
36,038,871
13,172,725
New York
9,389,540
3,510,837
39,218,013
16,665,659
172,578,086
38,018,356
25,042,209
2,985,950
246,227,848
61,180,802
North Carolina
2,023,181
1,106,631
2,399,952
1,432,977
74,361,942
29,309,971
3,260,922
327,986
82,045,997
32,177,565
North Dakota
9,458
6,146
440,665
215,992
1,250,193
627,266
3,528,447
2,297,693
5,228,763
3,147,097
Northern Mariana Isl
63
0
15,261
7,539
969,234
798,986
0
0
984,558
806,525
Ohio
3,508,430
561,416
9,492,526
4,802,814
63,034,107
28,617,588
3,747,001
1,419,972
79,782,063
35,401,790
Oklahoma
2,081,182
1,520,108
1,699,388
1,021,852
57,273,236
31,080,008
138,246
62,129
61,192,052
33,684,098
Oregon
331,100
72,406
785,142
532,318
13,731,001
3,365,160
1,111,946
95,146
15,959,189
4,065,030
Pennsylvania
3,405,750
1,832,372
11,202,274
3,777,864
52,697,847
17,359,177
12,539,899
7,928,351
79,845,770
30,897,764
Puerto Rico
10,536,262
4,781,443
4,107,628
3,052,516
882,486
14,952
28,813
21,000
15,555,189
7,869,911
Rhode Island
282,643
81,594
390,551
186,778
5,456,306
3,349,898
3,308,211
2,891,085
9,437,712
6,509,354
South Carolina
466,328
153,309
836,416
286,660
21,729,753
7,082,615
21,861,763
8,347,678
44,894,260
15,870,262
South Dakota
5,117
2,760
1,012,703
452,951
2,012,074
1,056,671
2,213,208
16,377
5,243,102
1,528,759
Tennessee
1,006,576
389,274
1,546,978
1,286,585
52,025,755
31,279,201
4,591,482
137,145
59,170,790
33,092,205
Texas
2,654,145
739,498
11,031,778
4,112,489
202,657,339
63,236,858
9,412,297
4,771,985
225,755,560
72,860,831
Utah
165,951
1,458
240,245
31,756
7,036,646
2,220,805
19,132,001
0
26,574,843
2,254,019
Vermont
21,196
7,285
887,336
163,829
1,857,899
451,579
43,632
22,165
2,810,063
644,857
Virgin Islands
0
0
934,424
654,624
0
0
9,690,868
2,666,948
10,625,292
3,321,571
Virginia
2,120,029
612,517
1,236,121
169,324
41,912,474
18,568,381
434,424
15,914
45,703,048
19,366,136
Washington
1,682,062
321,026
731,537
336,369
25,181,884
8,171,095
4,531,915
30,421
32,127,398
8,858,911
West Virginia
255,820
123,549
100,763
46,840
15,303,229
5,284,055
4,171,720
2,200,012
19,831,531
7,654,456
Wisconsin
465,526
348,730
2,899,859
1,257,986
16,622,950
6,349,473
14,328,196
232,287
34,316,531
8,188,475
Wyoming
28,236
8,292
143,610
70,139
1,928,303
1,200,334
2,318,435
0
4,418,583
1,278,765
Totals
$89,809,343
$38,391,070
$221,578,994
$74,580,899
$1,998,929,260
$721,404,651
$273,872,272
$72,294,852
$2,584,189,869
$906,671,472
Note: Activity through June 30, 2011. 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

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 2010.17 Table 2.22 shows commitments and disbursements on a state-by-state basis for 2008, 2009,
and 2010. 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 - 28

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. For more information on the pilot program, visit the pilot program
website.22

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, is 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.

2 - 29

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
3,049,342
44,555,019
5,285,465
811,323
54,948,958
2008
1,488,543
2,415,259
50,626,720
8,363,711
490,049
63,384,282
2009
1,651,030
2,461,900
50,077,883
9,435,294
2,524,360
66,150,466
2010
579,253
428,728
22,156,169
3,967,741
2,356,299
29,488,190
Note: Disbursements through June 30, 2011. 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 - 30

Table 2.22

Rural Health Care Funding Commitments and Disbursements by State

Funding Year 2008: July 1, 2008 through June 30, 2009

Total
Providers
Total
Providers
Funds
Receiving
Funds
Receiving
State
Committed
Commitments
Disbursed
Support
Alabama
$292,149
73
$277,619
71
Alaska
35,176,871
233
34,685,598
229
American Samoa
141,191
1
141,191
1
American Somoa
0
0
0
0
Arizona
1,351,112
68
1,147,749
63
Arkansas
625,143
68
507,342
61
California
1,027,177
117
987,959
110
Colorado
256,696
24
227,144
22
Connecticut
0
0
0
0
Delaware
350
2
350
2
District of Columbia
0
0
0
0
Florida
477,243
22
210,519
17
Georgia
1,720,183
99
1,541,901
96
Guam
87,800
2
71,528
2
Hawaii
148,487
18
148,487
18
Idaho
303,596
32
286,135
30
Illinois
1,176,600
74
1,110,897
67
Indiana
885,715
60
688,373
56
Iowa
559,794
72
544,671
71
Kansas
289,699
56
271,288
51
Kentucky
518,703
77
481,253
69
Louisiana
70,440
24
47,359
21
Maine
21,865
7
20,833
7
Maryland
0
0
0
0
Massachusetts
151,250
3
146,564
3
Michigan
1,557,579
110
1,369,115
105
Minnesota
2,723,473
200
2,502,176
196
Mississippi
179,100
24
172,861
23
Missouri
591,082
65
565,551
61
Montana
876,559
80
836,439
79
Nebraska
1,528,465
113
1,484,746
110
Nevada
91,924
14
91,924
14
New Hampshire
14,658
2
14,658
2
New Jersey
0
0
0
0
New Mexico
756,947
60
697,058
57
New York
70,059
23
55,308
17
North Carolina
335,257
53
307,078
51
North Dakota
1,235,010
103
1,119,502
103
Northern Mariana Is.
0
0
0
0
Ohio
389,297
36
323,363
33
Oklahoma
627,662
49
543,625
48
Oregon
300,256
21
284,631
17
Pennsylvania
103,740
14
67,299
13
Puerto Rico
0
0
0
0
Rhode Island
0
0
0
0
South Carolina
11,453
5
9,748
4
South Dakota
1,408,740
90
1,383,304
87
Tennessee
205,404
21
177,949
19
Texas
1,040,762
63
1,015,258
59
Utah
756,173
54
721,283
51
Vermont
108,390
22
108,195
21
Virgin Islands
46,404
10
46,404
10
Virginia
770,336
145
725,214
143
Washington
68,045
33
58,300
29
West Virginia
213,666
23
187,428
21
Wisconsin
4,977,564
292
4,882,558
285
Wyoming
113,786
14
88,550
12
Totals
$66,383,855
2,871
$63,384,282
2,737
Note: Disbursements through June 30, 2011. 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 - 31

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
Support
Disbursed
Support
Alabama
$354,564
87
$329,952
83
Alaska
38,154,146
249
37,433,784
242
American Samoa
220,158
1
220,158
1
American Somoa
0
0
0
0
Arizona
1,486,437
67
901,677
47
Arkansas
726,908
107
646,705
102
California
1,107,190
119
768,914
55
Colorado
251,624
24
209,840
17
Connecticut
0
0
0
0
Delaware
0
0
0
0
District of Columbia
0
0
0
0
Florida
356,659
23
233,356
21
Georgia
2,080,369
122
1,969,631
116
Guam
14,333
1
0
0
Hawaii
164,653
18
94,082
10
Idaho
384,794
42
194,534
32
Illinois
1,221,308
104
921,247
72
Indiana
852,294
66
734,782
62
Iowa
529,885
92
438,159
78
Kansas
346,280
65
287,134
51
Kentucky
584,345
71
467,616
63
Louisiana
58,298
24
31,481
12
Maine
67,455
9
40,634
5
Maryland
0
0
0
0
Massachusetts
130,624
2
129,848
1
Michigan
1,938,414
100
1,665,851
79
Minnesota
3,061,971
222
2,587,272
196
Mississippi
190,369
34
169,920
30
Missouri
639,828
62
591,940
55
Montana
765,072
82
679,598
71
Nebraska
1,605,238
121
1,482,696
108
Nevada
48,711
14
19,245
6
New Hampshire
15,003
6
15,003
6
New Jersey
0
0
0
0
New Mexico
803,040
53
443,469
33
New York
114,136
31
33,076
12
North Carolina
359,753
58
333,529
51
North Dakota
1,144,851
109
897,569
85
Northern Mariana Is.
0
0
0
0
Ohio
720,431
42
688,347
29
Oklahoma
767,805
69
654,202
39
Oregon
329,072
22
268,893
8
Pennsylvania
59,726
20
53,641
19
Puerto Rico
0
0
0
0
Rhode Island
0
0
0
0
South Carolina
20,717
11
20,441
10
South Dakota
1,067,265
73
822,286
58
Tennessee
398,392
45
344,123
42
Texas
1,635,426
88
1,575,810
80
Utah
851,309
55
590,969
41
Vermont
62,043
18
57,695
16
Virgin Islands
56,451
11
56,451
11
Virginia
754,069
147
439,266
47
Washington
121,818
38
56,537
15
West Virginia
210,088
25
186,948
23
Wisconsin
5,636,584
300
5,262,079
289
Wyoming
115,870
15
100,078
13
Totals
$72,585,778
3,164
$66,150,466
2,542
Note: Disbursements through June 30, 2011. 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 - 32

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
$505,851
74
$321,609
17
Alaska
28,469,092
190
18,601,857
121
American Samoa
351,250
1
103,250
1
American Somoa
0
0
0
0
Arizona
910,225
43
457,985
36
Arkansas
614,500
63
338,354
28
California
1,161,157
87
526,401
31
Colorado
205,022
11
142,985
8
Connecticut
0
0
0
0
Delaware
0
0
0
0
District of Columbia
0
0
0
0
Florida
229,282
20
121,550
17
Georgia
1,973,003
107
1,249,589
65
Guam
0
0
0
0
Hawaii
104,360
13
0
0
Idaho
113,700
16
61,589
12
Illinois
1,256,269
64
284,702
24
Indiana
597,916
51
311,894
35
Iowa
191,718
33
16,141
6
Kansas
380,168
37
201,803
10
Kentucky
535,950
55
221,967
22
Louisiana
37,165
9
26,024
3
Maine
0
0
0
0
Maryland
0
0
0
0
Massachusetts
131,647
2
0
0
Michigan
701,331
44
176,220
27
Minnesota
1,491,747
100
480,491
41
Mississippi
62,753
11
33,775
7
Missouri
444,839
39
170,072
23
Montana
547,086
60
270,920
33
Nebraska
1,484,668
93
892,264
79
Nevada
17,642
3
0
0
New Hampshire
3,300
1
2,475
1
New Jersey
0
0
0
0
New Mexico
466,169
28
325,515
17
New York
34,564
6
8,949
4
North Carolina
233,781
32
38,959
8
North Dakota
851,287
37
517,391
20
Northern Mariana Is.
0
0
0
0
Ohio
435,038
17
90,235
7
Oklahoma
837,275
36
206,487
11
Oregon
217,190
8
99,150
4
Pennsylvania
23,084
6
17,270
5
Puerto Rico
0
0
0
0
Rhode Island
0
0
0
0
South Carolina
7,474
8
2,236
4
South Dakota
123,683
6
97,287
3
Tennessee
301,552
24
136,829
14
Texas
2,148,672
68
1,509,622
47
Utah
338,112
14
236,707
5
Vermont
39,830
15
1,545
4
Virgin Islands
66,890
12
0
0
Virginia
684,366
129
94,700
13
Washington
44,680
10
8,106
5
West Virginia
126,920
14
51,172
7
Wisconsin
3,674,055
234
993,147
118
Wyoming
158,833
10
38,965
6
Totals
$53,335,095
1,941
$29,488,190
949
Note: Disbursements through June 30, 2011. 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

3. Subscribership and Penetration


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

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 American
Community Survey (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 2010 ACS reported
97.5% of all occupied housing units in the United States had telephone service available, whereas the
March 2010 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

included in the sample and in the month that the household re-enters the sample a year later.
Since the sample is 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 fifty to sixty 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 250,000 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 while 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 this same data.
Between 1997 and 2011, 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 wording given 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

2 Annual data for Puerto Rico have been available from the American Community Survey (ACS) starting
with 2005. The latest available value for Puerto Rico from that survey is 93.5% for 2010, compared to a
national average (for the 50 states and the District of Columbia) of 97.5% using the ACS.

3 - 2

previous form of the question by reporting phones that were not in service.

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 used 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 2003. Refer to previous
monitoring reports for earlier ACS, state-level 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 compares penetration rates and changes based on states’ total, average levels of Tier 3
Lifeline assistance. This allows one to compare the rate of change for states with different levels
of low-income telephone support. In Table 3.8, a state is classified based on how much total Tier
3 support is provided:

• “Full or High Assistance” states providing at least $3.00 of state support to get federal
matching support of at least $1.50 per line per month;
• “Intermediate Assistance” states providing between $0.50 and $3.00 of state support, and
receiving between $0.25 and $1.50 federal matching support per line per month;
• “Basic or Low Assistance” states providing less than $0.50 of state support, and receiving
less than $0.25 federal matching support per line per month.

For purposes of classification, the weighted average support across all providers is used. By state,
these values are displayed in the “All Providers” column of Table 3.9.

Table 3.8 shows that for low income households, states offering “Full of High Assistance” have
seen an increase of 5.1 percentage points between 1997 and 2011. “Intermediate Assistance”
states have seen a 6.9 percentage point increase for the same period. A simple statistical test
finds both these increases to be significant. Finally, for states with “Basic of Low Assistance,” a
statistically insignificant 2.9 percentage point increase occurred over the period. Also in Table
3.8, one can see how penetration changed for all households in each category.3

Table 3.10 reports for each state and the District of Columbia the most recent penetration rates by
income category.

3 A similar comparison from 1984 to 1997 is contained in the Telephone Penetration report released May
10, 2010.
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
March
2000
105.3
99.6
94.6
5.7
5.4
July
2000
105.8
99.8
94.4
5.9
5.6
November
2000
106.5
100.2
94.1
6.3
5.9
March
2001
107.0
101.1
94.6
5.8
5.4
July
2001
106.9
101.7
95.1
5.2
4.9
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
Source: U.S. Census Bureau, Current Population Survey.
3 - 4

Chart 3.1
Household Telephone Penetration by Income, 1997-2011
Income Groups in 1984 Dollars
100
Mar. 2005: Revised CPS Question
98
96
94
tion Rate
a
92
90
lephone Penetr
e
88
T
86
84
82
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Year
$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), 1997-2011
100
Mar. 2005: Revised CPS Question
98
96
te
a
94
on R
ti
a
92
90
ephone Penetr
88
Tel
86
84
82
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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, 1997-2011

$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
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
Note: For each 1984 dollar amount, the equivalent nominal
dollar amount is shown over time.
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
NA4
95.6
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 - 2010).
2 Household penetration data (1990 - 2010) are annual averages from the U.S.
Census based on the Current Population Survey. For 2011, 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, 2011 ACS statistics were not available.
3 - 8

Table 3.5

Telephone Penetration by Selected Demographic Characterisitcs

(Percentage of Households with Telephone Service)

Characteristic

2008
2009
2010
2011
Persons in Household
1
92.8%
93.5%
93.9%
93.5%
2 - 3
96.0
96.4
96.5
96.5
4 - 5
96.6
96.9
96.6
96.5
6 +
95.2
96.1
95.8
95.5
Age of Householder
15 - 24 Yrs Old
90.8
92.0
93.5
93.8
25 - 54 Yrs Old
94.8
95.2
95.5
95.3
55 - 59 Yrs Old
96.0
96.6
96.6
95.9
60 - 64 Yrs Old
96.5
97.0
96.2
96.2
65 - 69 Yrs Old
96.5
97.2
96.8
96.7
70 - 99 Yrs Old
96.6
96.9
96.7
96.4
Race of Householder
White
95.9
96.3
96.4
96.1
Black
91.0
92.1
92.7
93.0
Hispanic Origin
91.7
92.6
93.1
92.6
United States Total
95.2
95.7
95.8
95.6
Source: U.S. Census Bureau, Current Population Survey. Note that 2008 to 2010 values are
annual averages. For 2011, values are July 2011 figures since complete 2011 figures were
unavailable at the time of publication.
3 - 9

Table 3.6

Telephone Penetration by State, 2005-2010

(Percentage of Occupied Housing Units with Telephone Service)

State

2005
2006
2007
2008*
2009
2010
Alabama
93.3 %
92.6 %
93.9 %
98.0 %
97.5 %
97.4 %
Alaska
96.6
96.3
97.7
98.1
98.1
98.3
Arizona
93.1
93.6
93.7
97.0
96.4
97.0
Arkansas
90.9
90.3
91.3
97.6
97.1
96.9
California
97.0
96.6
96.7
98.7
98.3
97.9
Colorado
95.1
94.6
94.3
98.2
97.7
97.7
Connecticut
97.3
96.5
96.8
99.1
98.8
98.3
Delaware
97.5
97.0
95.8
98.7
98.6
98.2
District of Columbia
95.2
94.5
92.6
97.8
96.7
96.7
Florida
94.0
92.4
93.4
97.9
97.6
97.2
Georgia
92.9
90.9
92.7
97.1
97.1
96.9
Hawaii
95.6
95.7
94.9
98.1
97.6
97.5
Idaho
96.2
94.2
94.2
99.0
98.3
97.4
Illinois
94.4
93.7
94.8
98.6
97.9
97.7
Indiana
94.4
93.4
94.2
98.4
97.2
97.1
Iowa
96.0
94.9
95.3
98.9
98.2
97.4
Kansas
93.6
92.7
93.8
98.9
97.9
97.5
Kentucky
92.0
91.9
93.1
97.8
96.8
96.9
Louisiana
92.9
91.6
92.5
97.3
96.5
96.8
Maine
96.6
95.7
95.9
98.8
98.5
97.8
Maryland
95.8
95.3
95.6
99.0
98.5
97.6
Massachusetts
96.2
95.5
96.1
98.8
98.7
98.4
Michigan
93.4
92.1
93.0
98.6
97.5
97.2
Minnesota
96.7
95.8
95.4
99.2
98.6
98.2
Mississippi
89.6
88.4
91.2
96.9
97.2
96.9
Missouri
95.4
93.6
94.3
98.5
97.7
97.3
Montana
95.0
93.6
93.7
97.5
97.2
97.0
Nebraska
95.5
94.4
94.5
99.0
98.3
98.0
Nevada
95.9
94.6
94.3
97.6
97.7
97.7
New Hampshire
96.9
97.0
97.5
98.6
98.5
98.3
New Jersey
95.8
95.3
95.1
97.9
97.9
97.9
New Mexico
92.5
91.7
92.4
95.7
94.7
95.3
New York
95.5
94.8
95.0
97.9
97.4
97.2
North Carolina
93.8
93.2
93.4
98.1
97.6
97.6
North Dakota
94.7
94.7
94.8
99.2
98.0
98.4
Ohio
95.4
94.2
94.6
98.1
97.1
97.2
Oklahoma
93.1
92.9
93.2
98.0
97.8
97.8
Oregon
95.3
95.2
94.9
98.7
97.9
97.7
Pennsylvania
96.5
95.9
95.9
98.8
98.2
98.0
Rhode Island
96.4
95.6
96.0
97.8
97.9
97.2
South Carolina
92.3
92.0
93.2
97.2
96.6
97.1
South Dakota
95.3
96.0
95.3
98.6
98.2
98.0
Tennessee
92.9
92.8
93.7
98.1
97.6
97.2
Texas
92.9
92.6
93.5
98.0
97.7
97.4
Utah
96.5
96.2
96.0
99.3
98.3
97.8
Vermont
97.9
97.2
96.9
98.8
98.0
97.8
Virginia
95.6
95.2
95.2
98.3
97.6
97.4
Washington
96.5
96.2
96.3
99.0
98.1
97.8
West Virginia
94.5
93.8
93.6
96.9
96.4
96.3
Wisconsin
96.4
95.6
96.1
99.0
98.4
98.0
Wyoming
94.9
93.4
95.0
98.7
98.0
97.7
Total United States
94.8 %
94.1 %
94.6 %
98.2 %
97.7 %
97.5 %
Puerto Rico
73.8 %
73.6 %
80.6 %
91.9 %
92.4 %
93.5 %
* See footnote 3 on Table 3.4.
Source: U.S. Census Bureau, American Community Survey.
3 - 10

Table 3.7

Telephone Penetration by State, Selected Years

(Percentage of Households with a Telephone in Unit)

State

1984
1996
2000
2005
2010
Alabama
88.4 %
92.2 %
91.9 %
91.6 %
95.2 %
Alaska
86.5
94.4
94.3
95.2
97.1
Arizona
86.9
93.1
93.9
92.9
95.2
Arkansas
86.6
86.9
88.6
87.9
93.4
California
92.5
95.0
95.8
95.4
96.4
Colorado
93.2
95.5
96.3
95.1
97.7
Connecticut
95.5
97.5
96.4
93.9
97.9
Delaware
94.3
96.1
96.3
91.5
97.4
District of Columbia
94.9
93.0
93.2
92.2
91.1
Florida
88.7
93.1
92.1
91.8
93.7
Georgia
86.2
89.7
91.1
89.8
93.0
Hawaii
93.5
94.8
94.7
94.8
95.7
Idaho
90.7
92.9
93.9
94.8
97.9
Illinois
94.2
93.0
91.5
89.6
95.2
Indiana
91.6
93.7
94.5
90.8
92.5
Iowa
96.2
96.6
96.2
95.4
97.7
Kansas
94.3
93.9
94.8
94.3
97.5
Kentucky
88.1
92.3
93.3
91.3
95.0
Louisiana
89.7
91.1
92.6
91.8
96.5
Maine
93.4
96.5
97.9
95.7
98.2
Maryland
95.7
96.7
95.0
94.0
96.2
Massachusetts
95.9
95.7
94.6
94.5
97.6
Michigan
92.8
95.0
95.0
92.6
96.8
Minnesota
95.8
97.1
97.4
96.2
98.5
Mississippi
82.4
87.5
89.2
89.5
96.0
Missouri
91.5
95.3
95.8
94.2
96.1
Montana
91.0
94.3
94.6
93.0
94.9
Nebraska
95.7
96.0
97.3
94.3
95.6
Nevada
90.4
93.5
94.0
91.2
96.6
New Hampshire
94.3
96.1
97.7
95.8
98.2
New Jersey
94.8
93.6
94.6
93.8
95.9
New Mexico
82.0
86.2
91.2
91.2
92.4
New York
91.8
93.4
95.1
92.1
94.8
North Carolina
88.3
93.5
93.9
92.8
95.5
North Dakota
94.6
96.3
95.8
96.3
98.5
Ohio
92.4
94.5
94.8
94.1
96.7
Oklahoma
90.3
91.3
91.2
89.2
95.7
Oregon
90.6
96.0
94.8
95.7
97.6
Pennsylvania
94.9
96.9
96.6
95.6
98.2
Rhode Island
93.6
95.7
94.9
95.3
97.2
South Carolina
83.7
91.3
93.2
93.1
94.3
South Dakota
93.2
93.3
94.3
95.9
97.8
Tennessee
88.5
94.0
95.5
92.3
92.2
Texas
88.4
91.0
93.5
91.1
95.2
Utah
92.5
96.7
95.9
96.9
96.7
Vermont
92.3
95.9
95.6
95.6
98.1
Virginia
93.1
94.9
95.4
93.2
95.3
Washington
93.0
94.5
94.9
96.9
98.1
West Virginia
87.7
92.9
94.0
92.6
96.2
Wisconsin
95.2
97.0
94.8
94.8
98.3
Wyoming
89.9
95.0
94.7
94.8
97.3
Total United States
91.6 %
93.9 %
94.4 %
93.1 %
95.8 %
Source: U.S. Census Bureau, Current Population Survey.
3 - 11

Table 3.8

Comparison of Penetration Rates by Level of Lifeline Assistance

Low-Income Households †

All Households

Change

Change

Lifeline Category#

Num.

March 1997

March 2011

Change

per Year

March 1997

March 2011

Change

per Year
Full or High Assistance
33
85.6%
90.7%
5.1%
* 0.36%
93.7%
95.4%
1.8% * 0.13%
Intermediate Assistance
14
87.2
94.1
6.9
* 0.49
95.0
97.4
2.3
* 0.17
Basic or Low Assistance
4
86.2
89.1
2.9

0.21
93.9
95.1
1.2

0.08
Average All States
86.0
91.5
5.5
* 0.39
94.0
95.9
1.9
* 0.14
Note: Changes may not appear to be the same as calculated differences due to rounding.
† Households with income under $10,000 expressed in March 1984 dollars. See Table 3.3 for current equivalents.
* Change is statistically significant at the 95% confidence level.
# States are classified by total, average level of Tier 3 Lifeline support.
3 - 12

Table 3.9

Comparison of Penetration Rates and Level of Lifeline Assistance for States

Average State Support Plus Federal

Low Income Households †

All Households

Year

Match (Tier 3) per Line (December

State

Lifeline

2010)

Began

Change, 1997-

Change, 1997-

All

CETCs

March 1997 March 2011

March 1997 March 2011

ILECs Only

2011
2011

Providers

Only

Alabama
1995
$5.24
$5.25
$5.23 78.0%
91.3%
13.3%
*
91.3%
96.0%
4.8%

Alaska
1994
5.20
5.25
5.18
74.1
90.2
16.1
94.3
96.4
2.1

Arizona
1987
3.62
1.83
5.25
82.4
89.4
7.0
90.3
96.4
6.1

Arkansas
1986
4.87
3.51
5.23
78.8
93.2
14.4 *
88.7
96.0
7.3
*
California
1985
5.14
5.14
5.25
87.7
91.5
3.8
94.0
96.2
2.2

Colorado
1986
5.24
5.24
5.25
88.0
91.3
3.3
96.5
97.0
0.5

Connecticut
1993
3.83
1.77
5.25
85.9
94.5
8.6
95.6
97.9
2.2

Delaware
1998
4.84
0.00
5.25
94.4
92.5
-1.8
95.2
97.5
2.3

District of Columbia
1987
5.21
5.25
5.20
81.1
87.7
6.6
91.4
93.1
1.7

Florida
1994
5.25
5.25
5.25
84.4
90.2
5.8
92.1
93.5
1.4

Georgia
1991
5.20
5.07
5.24
81.6
87.4
5.7
90.4
93.3
2.9

Hawaii
1987
0.00
0.00
0.00
89.9
89.1
-0.8
94.9
95.6
0.7

Idaho
1987
5.13
5.21
4.39
87.9
90.7
2.8
95.0
96.6
1.7

Illinois
1998
2.29
0.00
2.76
83.2
92.1
8.8
93.5
95.7
2.1

Indiana
1998
0.40
0.00
5.17
91.6
85.4
-6.3
94.3
92.9
-1.3

Iowa
1998
0.00
0.00
0.01
87.7
95.4
7.6
96.1
98.3
2.2

Kansas
1998
4.39
5.25
3.36
87.0
95.6
8.6
94.9
97.9
3.1

Kentucky
1998
5.22
5.21
5.24
87.7
89.3
1.6
93.1
95.1
2.0

Louisiana
1998
3.25
0.00
3.56
81.7
95.5
13.8
91.2
97.6
6.4

Maine
1987
5.25
5.25
5.25
90.5
96.8
6.4
93.7
98.7
5.0
*
Maryland
1987
5.24
5.12
5.24
85.9
90.9
5.0
95.3
95.0
-0.3

Massachusetts
1990
5.25
5.25
5.25
91.7
97.6
6.0
95.9
98.1
2.2

Michigan
1989
4.12
3.34
4.24
86.0
95.2
9.2
94.9
97.9
3.0

Minnesota
1988
2.55
2.61
0.92
91.7
95.8
4.1
97.4
98.2
0.8

Mississippi
1991
5.14
5.01
5.22
76.6
93.2
16.6 *
89.4
96.1
6.6
*
Missouri
1987
4.69
5.22
4.01
95.2
89.8
-5.4
97.5
96.3
-1.2

Montana
1987
4.10
3.71
5.25
86.3
89.2
2.9
94.1
96.5
2.4

Nebraska
1998
5.08
5.02
5.25
92.8
94.5
1.6
97.0
97.1
0.2

Nevada
1988
5.02
4.99
5.08
90.8
90.3
-0.5
93.8
96.6
2.8

New Hampshire
1998
3.90
0.00
5.25
93.6
91.2
-2.4
97.1
97.4
0.3

Note: Changes may not appear to be the same as calculated differences due to rounding.
† Households with income under $10,000, expressed in March 1984 dollars. See Table 3.3 for current equivalents.
* Increase is statistically significant at the 95% confidence level.
3 - 13

Table 3.9

Comparison of Penetration Rates and Level of Lifeline Assistance for States

Average State Support Plus Federal

Low Income Households †

All Households

Year

Match (Tier 3) per Line (December

State

Lifeline

2010)

Began

Change, 1997-

Change, 1997-

All

CETCs

March 1997 March 2011

March 1997 March 2011

ILECs Only

2011
2011

Providers

Only

New Jersey
1998
$5.24
$5.22
$5.25 88.6%
91.6%
2.9%

96.1%
95.7%
-0.4%
New Mexico
1987
4.95
4.84
5.25
69.6
87.8
18.2 *
86.0
92.2
6.2

New York
1985
5.16
4.95
5.24
87.5
86.9
-0.6
94.5
94.2
-0.4

North Carolina
1986
5.25
5.25
5.25
83.6
92.5
8.8
93.5
95.8
2.3

North Dakota
1990
2.98
2.91
4.33
93.6
92.8
-0.8
96.2
97.9
1.7

Ohio
1987
5.25
5.24
5.25
88.5
93.4
4.9
95.0
3.8
5.5

Oklahoma
1996
1.22
0.59
1.43
78.9
94.3
15.4 *
91.8
3.3
11.0

Oregon
1986
5.23
5.22
5.25
90.5
93.6
3.0
95.3
6.6
12.9

Pennsylvania
1996
3.60
1.13
5.25
93.6
95.6
2.0
97.3
5.8
5.9

Rhode Island
1987
5.25
5.25
5.25
87.6
93.4
5.8
94.6
5.7
12.4

South Carolina
1995
5.25
5.25
5.24
76.2
89.6
13.4 *
92.0
2.8
11.4

South Dakota
1988
0.12
0.14
0.00
90.5
96.8
6.3
94.7
8.6
10.9

Tennessee
1992
5.15
4.80
5.24
89.3
88.7
-0.6
94.1
1.6
10.9

Texas
1988
5.24
5.24
5.24
79.6
90.5
10.9 *
91.0
6.4
10.0
*
Utah
1987
5.24
5.24
5.25
98.3
90.8
-7.5
97.5
5.0
11.3

Vermont
1986
5.25
5.25
0.00
84.6
95.2
10.7
93.9
6.0
11.5

Virginia
1988
5.21
4.87
5.23
84.7
88.0
3.4
93.6
16.6
11.3

Washington
1987
3.46
3.97
1.22
89.0
97.8
8.8
96.1
-5.4
9.8

West Virginia
1986
4.91
0.00
5.22
83.8
94.3
10.5 *
93.6
1.6
14.2

Wisconsin
1991
3.85
3.63
3.98
87.8
93.5
5.7
96.4
2.9
11.2

Wyoming
1991
5.25
5.25
5.25
89.5
93.2
3.8
94.9
18.2
15.8

Note: Changes may not appear to be the same as calculated differences due to rounding.
† Households with income under $10,000, expressed in March 1984 dollars. See Table 3.3 for current equivalents.
* Increase is statistically significant at the 95% confidence level.
3 - 14

Table 3.10

Household Penetration by State and Income, 2011

$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
91.3 %
96.2 %
97.4 %
99.2 %
99.5 %
96.0 %
Alaska
90.2
97.5
95.9
99.0
98.5
96.4
Arizona
89.4
97.5
99.4
98.4
99.5
96.4
Arkansas
93.2
96.5
96.8
96.8
98.5
96.0
California
91.5
95.7
97.4
98.0
98.4
96.2
Colorado
91.3
96.2
98.7
98.9
98.9
97.0
Connecticut
94.5
98.8
98.3
95.7
99.4
97.9
Delaware
92.5
97.2
99.5
98.3
99.6
97.5
District of Columbia
87.7
90.6
94.5
91.9
98.2
93.1
Florida
90.2
93.8
92.9
96.5
95.8
93.5
Georgia
87.4
93.2
95.3
97.2
97.2
93.3
Hawaii
89.1
96.6
97.1
96.4
97.4
95.6
Idaho
90.7
99.0
99.3
95.8
97.7
96.6
Illinois
92.1
95.6
93.6
99.3
98.5
95.7
Indiana
85.4
93.0
97.1
95.2
95.7
92.9
Iowa
95.4
98.5
99.8
97.4
99.8
98.3
Kansas
95.6
98.6
97.5
100.0
98.8
97.9
Kentucky
89.3
95.2
98.1
98.5
99.3
95.1
Louisiana
95.5
97.2
98.9
99.2
99.3
97.6
Maine
96.8
99.1
99.0
99.6
99.5
98.7
Maryland
90.9
93.0
95.7
95.3
97.5
95.0
Massachusetts
97.6
98.8
98.8
94.7
98.6
98.1
Michigan
95.2
98.8
97.6
99.2
99.2
97.9
Minnesota
95.8
97.6
98.6
99.5
99.5
98.2
Mississippi
93.2
94.8
97.2
99.3
100.0
96.1
Missouri
89.8
96.5
98.1
99.1
99.6
96.3
Montana
89.2
97.2
100.0
100.0
99.3
96.5
Nebraska
94.5
97.2
98.7
99.0
96.9
97.1
Nevada
90.3
97.4
97.4
99.0
99.0
96.6
New Hampshire
91.2
97.5
98.1
98.7
99.2
97.4
New Jersey
91.6
95.4
95.3
97.7
97.4
95.7
New Mexico
87.8
93.4
90.6
95.0
95.9
92.2
New York
86.9
94.1
96.6
97.3
97.7
94.2
North Carolina
92.5
96.4
95.9
96.4
98.5
95.8
North Dakota
92.8
100.0
98.6
97.5
100.0
97.9
Ohio
93.4
97.0
97.4
99.5
99.0
97.0
Oklahoma
94.3
97.2
96.9
96.1
96.6
96.2
Oregon
93.6
97.7
99.3
99.0
99.5
97.8
Pennsylvania
95.6
97.8
98.8
99.1
99.7
98.0
Rhode Island
93.4
97.3
97.5
97.2
99.0
96.9
South Carolina
89.6
95.0
98.4
98.0
98.2
95.2
South Dakota
96.8
99.1
98.2
99.4
100.0
98.7
Tennessee
88.7
93.0
94.6
94.2
95.5
92.6
Texas
90.5
95.6
95.8
96.6
98.4
95.3
Utah
90.8
97.9
98.4
99.0
98.6
97.3
Vermont
95.2
100.0
98.0
100.0
99.7
98.6
Virginia
88.0
93.3
95.6
96.8
98.0
94.7
Washington
97.8
97.4
98.0
100.0
99.5
98.5
West Virginia
94.3
97.0
97.0
98.6
99.2
96.8
Wisconsin
93.5
96.9
99.0
99.4
99.4
97.6
Wyoming
93.2
97.7
98.6
97.8
98.2
97.2
United States
91.5
95.9
96.8
97.8
98.3
95.9
Source: U.S. Census Bureau, Current Population Survey (March CPS Supplement).
3 - 15

4. Price Indices and Access Charge Rates











This section contains information on telephone price indices and access charge rates. The first
part discusses the Consumer Price Index (CPI) maintained by the Bureau of Labor Statistics (BLS). The
second part discusses the subscriber line charge and other access charges.

Telephone Service Price Indices


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 1998.


For 2010, the nation's overall level of prices (measured by the CPI for all items) rose by 1.5% and
the CPI for telephone services declined by 0.9%. The land-line telephone service index increased by
2.2% during 2010, while the wireless telephone index decreased by 3.4%. Monthly data for the CPI
indices, including the land-line telephone service, 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

Subscriber Line and Access Charges

Long distance companies rely on the loops, switches, and transport facilities of local telephone
companies for access to their customers. As a result, local telephone companies recover a portion of their
costs from long distance companies accessing their networks. Both the manner in which these access
charges have been assessed and the proportion of the costs they have recovered have varied considerably
over time.

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


Prior to 1984, AT&T provided almost all interstate long distance service while its local telephone
companies provided about three-quarters of the nation’s local telephone service. Under the regulatory
oversight of the FCC and state public utilities commissions, for many years AT&T set long distance
charges above cost and shared part of its revenues with Bell System and independent local companies.
This system reduced pressures on the local companies to raise monthly local rates, but the high long
distance rates suppressed demand for long distance calls and induced large corporations to bypass the
public switched network. Moreover, while such revenue sharing arrangements were sustainable in an
industry where one firm monopolized both long distance and local service, they were not compatible with
a competitive long distance industry.

In mid-1984, the FCC, in cooperation with a Federal-State Joint Board comprised of both federal
and state regulators, introduced sweeping changes to the way that local companies charged for their
services. The historic method of sharing revenues was replaced with a new system of access charges that
provided a uniform method for local telephone companies to charge for the origination and termination of
interstate traffic on their local networks. In particular, monthly subscriber line charges (SLCs) were
introduced to recover a portion of the fixed costs of the local telephone companies’ loops directly from
end users on a per-line basis. Since local telephone companies were required to reduce their charges to
long distance carriers – dollar for dollar – the introduction of SLCs permitted reductions in implicit
subsidies from long distance service to local service. The rebalancing of prices between local service and
interstate long distance calls during the 1980s had a fundamental impact on the telephone industry as the
price of long distance service fell and the volume of long distance calling surged.

In
mid-1997, as part of its implementation of the 1996 Telecommunications Act, the FCC
introduced further interstate access charge reform. Presubscribed interexchange carrier charges (PICCs)
were created in order to allow local carriers to recover the remaining portion of their fixed loop costs from
long distance carriers on a per-line, instead of a per-minute, basis. A further access charge reform was
adopted on May 31, 2000, which eliminated the PICC and consolidated it with the SLC. This took effect
on July 1, 2000.3


Average monthly SLCs and PICCs are shown in Table 4.4 and average per-minute rates charged
to long distance carriers are shown in Table 4.5. Both tables report historical averages for all LECs that
file access tariffs subject to price-cap regulation and all LECs that participate in the NECA pool, charging
the NECA tariff rates. Current per-line charges and per-minute charges are reported for the two groups of
carriers, and for individual carriers, in Tables 4.6 and 4.7, respectively.


The averages in Table 4.5 clearly illustrate the effectiveness of access reform in reducing the
prices long distance carriers pay per minute for access to the local telephone companies' networks. The
reductions in per-minute access prices over time have been a major contributing factor to reductions in
long distance prices.


3
Access Charge Reform, CC Docket No. 96-262, Sixth Report and Order, 15 Rcd 12962 (CALLS Order).

4 - 2

Table 4.1

Long-Term Changes for Various Price Indices

(Average Annual Rates of Change)
1960-2010
2000-2010
CPI All Items (SAO)
4.1 %
2.3 %
CPI All Services (SAS)
4.9 3.0
CPI Telephone Services (SEED)
1.7
0.2
CPI Major Categories:
- Food & Beverages (SAF)
*
2.7
- Housing (SAH)
*
2.6
- Apparel (SAA)
2.0
-0.8
- Transportation (SAT)
3.8
2.8
- Medical Care (SAM)
5.9
4.1
- Recreation (SAR)
*
1.0
- Other Goods & Services (SAG)
*
3.6
CPI Public Transportation (SETG)
5.1
2.3
CPI Utility (Piped) Gas Service (SEHF02)
5.3
5.8
CPI Electricity (SEHF01)
3.8
4.0
CPI Water & Sewerage Maint. (SEHG01)
5.7
5.0
CPI Postage (SEEC01)
4.8
3.1
* 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, 1960-2010

Base Period: 1997 = 100

160
140
120
100
80

I
Level

60

CP

40
20
0
1960
1964
1968
1972
1976
1980
1984
1988
1992
1996
2000
2004
2008

Year

CPI - All Goods and Services
CPI - Telephone Services
4 - 3

Table 4.2

Annual Changes in CPI Telephone Services and All Items Indices

All Goods and Services

Telephone Services

1998
1.6
0.3
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

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

10
r Year
5
Prio
m

0
r
o
f
e
g
an

-5
t
Ch

-10
1998
2000
2002
2004
2006
2008
2010

Percen

Year

All Goods and Services
Telephone Services
4 - 4

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
2008 January
97.7
96.3
*
100.7
February
98.0
96.2
*
100.7
March
98.9
96.4
*
100.7
April
99.5
96.9
*
101.0
May
100.3
97.2
*
101.0
June
101.3
98.0
*
101.0
July
101.9
98.7
*
101.0
August
101.5
98.6
*
101.0
September
101.3
98.6
*
101.0
October
100.3
98.7
*
101.0
November
98.4
98.9
*
101.1
December
97.4
99.0
*
101.2
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
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 - 5


Table 4.4

Interstate Per-Line Access Charges 1

Rates in Effect

Charged to End Users 2

Charged to Long Distance Carriers 3

(Subscriber Line Charges)
(Presubscribed Interexchange Carrier Charges)

Residential and

Non-Primary

Multiline

Residential and

Non-Primary

Multiline

Centrex

From
To

Single-Line

Residential

Business

Single-Line

Residential

Business

Business

and Centrex

Business

05/26/84
05/31/85
$0.00
$4.99
06/01/85
09/30/85
1.00
4.99
10/01/85
05/31/86
1.00
4.97
06/01/86
12/31/86
2.00
4.97
01/01/87
06/30/87
2.00
5.12
07/01/87
12/31/87
2.60
5.12
01/01/88
11/30/88
2.60
5.01
12/01/88
03/31/89
3.20
5.01
04/01/89
12/31/89
3.50
4.94
01/01/90
06/30/90
3.48
4.84
07/01/90
12/31/90
3.48
4.83
01/01/91
06/30/91
3.48
4.77
07/01/91
11/27/91
3.49
4.74
11/28/91
06/30/92
3.49
4.76
07/01/92
06/30/93
3.49
4.68
07/01/93
06/30/94
3.50
5.37
07/01/94
06/30/95
3.50
5.45
07/01/95
06/30/96
3.50
5.50
07/01/96
06/30/97
3.50
5.53
07/01/97
12/31/97
3.50
5.68
01/01/98
06/30/98
3.50
$4.98
6.92
$0.49
$1.50
$2.52
$0.35
07/01/98
12/31/98
3.50
4.99
7.11
0.49
1.38
2.38
0.38
01/01/99
06/30/99
3.50
5.88
7.05
0.49
1.38
2.22
0.32
07/01/99
12/31/99
3.50
5.84
6.94
0.95
1.77
2.78
0.42
01/01/00
06/30/00
3.50
5.81
6.94
0.92
1.70
2.44
0.35
08/11/00
06/30/01 4
4.28
5.99
6.88
0.00
0.00
2.30
0.37
07/01/01
12/31/01
4.78
5.93
6.66
0.00
0.00
1.35
0.22
01/01/02
06/30/02
4.92
5.93
6.79
0.00
0.00
1.35
0.22
07/01/02
06/30/03
5.62
5.88
6.45
0.00
0.00
0.48
0.08
07/01/03
06/30/04
5.96
5.94
6.37
0.00
0.00
0.20
0.04
07/01/04
06/30/05
5.92
5.85
6.24
0.00
0.00
0.19
0.05
07/01/05
06/30/06
5.92
5.83
6.26
0.00
0.00
0.21
0.04
07/01/06
06/30/07
5.91
5.81
6.27
0.00
0.00
0.23
0.04
07/01/07
06/30/08
5.93
5.81
6.30
0.00
0.00
0.23
0.05
07/01/08
06/30/09
5.90
5.78
6.27
0.00
0.00
0.22
0.05
07/01/09
06/30/10
5.88
5.75
6.21
0.00
0.00
0.18
0.04
07/01/10
06/30/11
5.89
5.74
6.19
0.00
0.00
0.13
0.04
07/01/11
06/30/12
5.88
5.70
6.13
0.00
0.00
0.11
0.03
1 This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap
regulation and all LECs in the National Exchange Carrier Association (NECA) pool.
2 Prior to 1/01/1998, carriers did not charge separate subscriber line charge (SLC) rates for primary and non-primary residential lines. Therefore,
the residential and single-line business average SLCs reported prior to 1/01/1998 include all residential SLC charges. The average residential and
single-line business SLC rate as of 1/01/98 excludes non-primary residential SLCs. Non-primary SLCs are now reported separately, except for
the LECs in the NECA pool, which continue to charge a single residential SLC. Under price-cap regulation, as of 7/1/2003, the caps on SLCs for
primary residential and single-line business, non-primary residential, and multiline business and Centrex lines equal $6.50, $7.00, and $9.20,
respectively. For NECA pool companies, the residential SLC cap is $6.50, while the multiline business and Centrex SLC cap equals $9.20.
3 On 1/01/98, price-cap carriers began to charge presubscribed interexchange carrier charges (PICCs). The reported PICCs are averages per line
including both price-cap and NECA pool lines. While carriers did not charge different rates for Centrex and multiline business SLCs, they did
charge different PICC rates for these lines. Therefore, the average multiline business and Centrex PICC rates are reported separately. However,
multiline business line counts, used to compute average PICC rates, include Centrex lines for LECs in the NECA pool, which do not charge
PICCs or distinguish in access filings between the two line types. On 7/01/2000, residential and single-line business PICCs was eliminated.
Since then the PICCs cap for multiline business lines equal $4.31 for price cap carriers. Centrex groups of 9 or fewer lines are capped at the
multiline business PICC rate of $4.31 per group. Centrex groups with more than 9 lines are capped at $0.48 per line (1/9th the multiline business
rate).
4 Although the charges took effect on 7/1/2000, some companies made adjustments to the tariffs which did not take effect until 8/11/2000.
Source: Access tariff filings.
4 - 6


Table 4.5

Interstate Per-Minute Access Charges

(National Average in Cents per Minute) 1

Rates in Effect

Interstate Charges for Switched Access Service

Carrier

Carrier

Traffic

Non-Traffic

Total

Common Line

Common Line

Sensitive

Sensitive

Charge per

From

To
per Originating
per Terminating
per Switched
per Switched

Conversation

Access

Access

Minute

Minute 2

Minute 3

Minute 1
Minute 1
05/26/84
01/14/85
5.24 ¢
5.24 ¢
3.10 ¢
17.26 ¢
01/15/85
05/31/85
5.43
5.43
3.10
17.66
06/01/85
09/30/85
4.71
4.71
3.10
16.17
10/01/85
05/31/86
4.33
4.33
3.10
15.38
06/01/86
12/31/86
3.04
4.33
3.10
14.00
01/01/87
06/30/87
1.55
4.33
3.10
12.41
07/01/87
12/31/87
0.69
4.33
3.10
11.49
01/01/88
11/30/88
0.00
4.14
3.10
10.56
12/01/88
02/14/89
0.00
3.39
3.00
9.60
02/15/89
03/31/89
0.00
3.25
3.00
9.46
04/01/89
12/31/89
1.00
1.83
3.00
9.11
01/01/90
06/30/90
1.00
1.53
2.50
7.78
07/01/90
12/31/90
1.00
1.23
2.50
7.48
01/01/91
06/30/91
1.00
1.14
2.40
7.18
07/01/91
06/30/92
0.88
1.06
2.40
6.97
07/01/92
06/30/93
0.79
0.95
2.40
6.76
07/01/93
06/30/94
0.88
1.16
2.20
6.66
07/01/94
06/30/95
0.84
1.08
2.10
0.28 ¢
6.89
07/01/95
06/30/96
0.74
0.89
1.96
0.21
6.16
07/01/96
06/30/97
0.72
0.89
1.95
0.17
6.04
07/01/97
12/31/97
0.64
0.84
1.63
0.14
5.18
01/01/98
06/30/98
0.68
0.23
1.29
0.21
4.04
07/01/98
12/31/98
0.91
0.20
0.99
0.30
3.82
01/01/99
06/30/99
0.82
0.16
0.98
0.32
3.71
07/01/99
12/31/99
0.37
0.10
0.86
0.28
2.82
01/01/00
06/30/00
0.32
0.10
0.86
0.31
2.85
08/11/00
06/31/004
0.23
0.07
0.52
0.26
1.91
07/01/01
12/31/01
0.15
0.07
0.48 0.24 1.71
01/01/02
06/30/02
0.15
0.07
0.47
0.24
1.69
07/01/02
06/30/03
0.02
0.01
0.48
0.22
1.46
07/01/03
06/30/04
0.00
0.00
0.48
0.22
1.44
07/01/04
06/30/05
0.00
0.00
0.50
0.25
1.53
07/01/05
06/30/06
0.00
0.00
0.52
0.25
1.59
07/01/06
06/30/07
0.01
0.00
0.54
0.25
1.63
07/01/07
06/30/08
0.01
0.00
0.56
0.26
1.71
07/01/08
06/30/09
0.01
0.00
0.63
0.24
1.80
07/01/09
06/30/10
0.00
0.00
0.64
0.26
1.85
07/01/10
06/30/11
0.00
0.00
0.67
0.27
1.92
07/01/11
06/30/12
0.00
0.00
0.68
0.28
1.98
1 This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs subject to
price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. The average rates reported here do not
include revenues from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), both of which are reported in
Table 1.1. Effective 07/01/03, the carrier common line (CCL) rates for NECA carriers were eliminated.
2 Non-traffic-sensitive charges include charges assessed on a per-month, per-unit basis. Prior to 07/01/94, these charges were included in
the average traffic-sensitive rates.
3 The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing and call
setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier common line charge per
originating access minute plus the traffic-sensitive charge per switched minute, both multiplied by 1.07 to account for dialing and call
setup time, plus the non-traffic-sensitive charge per switched minute. Terminating charges per conversation minute equal carrier
common line charges per terminating access minute plus both traffic-sensitive and non-traffic-sensitive charges per switched minute.
4 Although the charges took effect on 7/1/2000, some companies made adjustments to the tariffs which did not take effect until
8/11/2000.
4 - 7


Table 4.6

Interstate Per-Line Access Charges by Carrier

(in Dollars per Month per Line) 1

Rates Effective from 07/01/11 to 06/30/12

Subscriber Line Charges

PICC 2

2010 Average Monthly Access Lines 3
(Thousands)

Company

Residential

Non-Primary

Multiline

Multiline

Centrex

Residential

Non-Primary

Multiline

and

Residential

Business

Business

and

Residential

Business

Single-Line

and Single-Line
and

Business

Centrex

Business

Centrex

ACS
$6.50 NA
$9.07
$0.00
$0.00
77
0
69
AT&T
5.48
5.17
5.31
0.00
0.00
24,284
2,404
15,238
América Móvil
6.50
6.50
9.20
0.00
0.00
582
1
154
CenturyLink
5.80
5.82
6.44
0.00
0.00
9,619
651
3,875
Cincinnati Bell
5.27
5.27
5.27
0.00
0.00
376
21
240
Consolidated
6.50
6.50
9.20
0.00
0.00
81
4
35
FairPoint
6.16
6.14
6.17
0.00
0.00
650
51
191
Frontier
6.38
6.88
9.05
1.61
0.23
3,754
163
1,290
Hawaiian Telecom
6.50
7.00
8.15
0.00
0.00
302
24
85
Innovative
6.50
NA
9.15
0.00
0.00
40
0
16
PTI Pacifica Inc.
6.50
7.00
9.20
1.14
1.14
8
0
6
Verizon
6.19
6.14
6.40
0.24
0.04
14,115
1,519
7,850
Windstream
6.33
6.55
7.99
0.26
0.20
1,786
301
669
Price Caps
5.83
5.70
6.02
0.11
0.03
55,674
5,140
29,717
NECA Pool
6.50
NA
9.20
0.00
NA
4,138
NA
1,089
Price Caps
and NECA Pool
$5.88
$5.70
$6.13
$0.11
$0.03
59,812
5,140
30,806
NA - Not Applicable.
1 This table shows average rates (weighted by access lines) for all local exchange carriers (LECs) that file access tariffs subject to price-cap regulation and all LECs in
the National Exchange Carrier Association (NECA) pool. Rates are composites of all regions and subsidiaries of each local exchange carrier. For example, non-
primary residential SLCs can be less than primary residential SLCs due to weighting by access lines. Note that at the disaggregated level, non-primary rates are always
greater than or equal to primary rates. The primary line rate is weighted by the number of primary residential lines and the non-primary residential rate is similarly
weighted by the number of non-primary access lines. Because the weight on primary lines versus non-primary lines is not constant, the primary rate is not necessarily
lower than the non-primary rate at the holding company level. No information is available for those carriers that are not in the NECA pool, but are subject to rate-of-
return regulation.
2 PICC is an abbreviation for Presubscribed Interexchange Carrier Charge.
3 Access line counts measure lines that companies report as qualified to receive subscriber line charges (SLCs). ISDN-BRI lines, which are charged non-primary SLC
and PICC rates, are included in the non-primary residential line counts. ISDN-PRI lines, which are charged rates equal to five times the multiline business SLC and
PICC rates, are multiplied by five and added to multiline business counts.
Source: Access tariff filings.
4 - 8


Table 4.7

Interstate Per-Minute Access Charges by Carrier

(In Cents per Minute) 1

Rates Effective from July 1, 2011 to June 30, 2012

Year 2010

Carrier

Carrier

Switched

Switched

Local

Common

Common

Traffic

Non-Traffic

Switching

Line per

Line per

Sensitive

Sensitive

Total

Minutes of

Company Originating

Terminating

per
per

Charge per

Use

Access

Access

Access

Access

Conversation

(Millions)

Minute

Minute

Minute

Minute 2

Minute 3


ACS
0.00 ¢
0.00 ¢
0.52 ¢
0.30 ¢
1.67 ¢
455
AT&T
0.00
0.00
0.49
0.28
1.57
110,189
América Móvil
0.00
0.00
0.62
0.16
1.61
1,813
CenturyLink
0.00
0.00
0.75
0.20
1.96
38,968
Cincinnati Bell
0.00
0.00
0.71
0.66
2.80
1,759
Consolidated
0.00
0.00
0.35
0.18
1.09
215
FairPoint
0.00
0.00
0.55
0.29
1.72
3,172
Frontier
0.06
0.00
0.57
0.39
2.02
12,957
Hawaiian Telecom
0.00
0.00
0.72
0.36
2.20
724
Innovative
0.00
0.00
0.69
0.20
1.84
223
PTI Pacifica Inc.
0.00
0.00
0.46
0.17
1.30
37
Verizon
0.00
0.00
0.56
0.27
1.71
58,916
Windstream
0.00
0.00
0.60
0.32
1.87
5,860
Price Caps
0.00
0.00
0.56
0.27
1.71
235,286
NECA Pool
0.00
0.00
3.57
0.53
8.46
9,468
Price Caps
and NECA Pool
0.00
0.00
0.68
0.28
1.98
244,754
1 This table shows average rates (weighted by minutes of use) for all local exchange carriers (LECs) that file access tariffs
subject to price-cap regulation and all LECs in the National Exchange Carrier Association (NECA) pool. Rates are
composites of all regions and subsidiaries of each local exchange carrier. No information is available for those carriers that
are not in the NECA pool, but are subject to rate-of-return regulation. The average rates reported here do not include the
average revenue per minute from subscriber line charges (SLCs) or primary interexchange carrier charges (PICCs), both of
which are reported in Table 1.1.
2 Non-traffic sensitive charges include charges assessed on a per-month, per-unit basis.
3 The total charge per conversation minute consists of charges on the originating end of the call, which are adjusted for dialing
and call setup time, plus charges on the terminating end. Originating charges per conversation minute equal the carrier
common line charge per originating access minute plus the traffic-sensitive charge per switched minute, both multiplied by
1.07 to account for dialing and call setup time, plus the non-traffic-sensitive charge per switched minute. Terminating charges
per conversation minute equal carrier common line charges per terminating access minute plus both traffic-sensitive and non-
traffic-sensitive charges per switched minute.
Source: Access tariff filings.
4 - 9

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 2010
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 include changes 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 2006-2010. Annual study area
data for the years 2006 through 2010 are posted at http://www.fcc.gov/wcb/iatd/monitor.html">www.fcc.gov/wcb/iatd/monitor.html.





1
The FCC routinely posts quarterly MOU data at http://www.fcc.gov/wcb/iatd/neca.html">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
$144 million or more in 2010.
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
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
32,132
278,358
2010
212,214
27,804
240,019
Source: National Exchange Carrier Association, various filings.
5 - 3

Table 5.2

ILEC Interstate Switched Access Minutes of Use by State

(in Millions)

State

2006
2007
2008
2009
2010
Alabama
5,962
5,699
5,562
4,971
4,255
Alaska
1,237
1,135
1,344
958
722
American Samoa
19
19
19
18
19
Arizona
7,121
6,573
6,059
5,286
4,629
Arkansas
3,871
3,434
3,099
2,791
2,346
California
37,936
35,521
31,441
27,664
23,587
Colorado
7,248
6,695
6,116
5,371
4,563
Connecticut
5,986
5,425
4,795
4,178
3,718
Delaware
1,565
1,487
1,392
1,216
1,010
District of Columbia
2,057
1,857
1,720
1,616
1,444
Florida
27,599
24,812
22,234
19,039
15,891
Georgia
12,383
11,757
10,992
9,671
8,269
Guam
257
262
221
162
143
Hawaii
1,571
1,594
1,927
1,887
1,999
Idaho
2,214
2,050
1,860
1,629
1,401
Illinois
15,580
14,860
13,699
11,931
10,083
Indiana
7,610
6,968
6,459
5,535
4,756
Iowa
4,655
4,200
3,120
2,729
2,386
Kansas
3,592
3,264
2,816
2,431
2,016
Kentucky
4,864
4,555
4,092
3,644
3,303
Louisiana
5,311
4,654
4,250
3,714
3,224
Maine
1,866
1,573
1,394
1,336
1,133
Maryland
9,371
8,615
7,729
7,043
6,296
Massachusetts
8,737
7,356
6,514
5,726
5,044
Michigan
9,752
8,855
7,930
6,758
5,735
Minnesota
5,672
5,039
4,624
4,031
3,538
Mississippi
3,786
3,500
3,230
2,860
2,521
Missouri
7,882
7,293
6,674
5,904
5,169
Montana
1,499
1,362
1,244
1,119
953
Nebraska
2,107
1,929
1,796
1,614
1,436
Nevada
4,729
4,130
3,475
2,907
2,301
New Hampshire
2,157
1,916
1,649
1,462
1,051
New Jersey
13,303
12,478
10,742
9,856
8,007
New Mexico
2,809
2,571
2,297
1,972
1,712
New York
20,566
19,369
17,185
15,361
13,542
North Carolina
11,881
10,900
10,090
8,738
7,732
North Dakota
828
728
685
609
548
Northern Mariana Islands
56
52
48
47
37
Ohio
12,524
11,632
10,549
9,104
7,889
Oklahoma
4,225
3,579
3,185
2,901
2,539
Oregon
4,759
4,277
3,786
3,270
2,721
Pennsylvania
15,325
13,896
12,686
11,172
9,697
Puerto Rico
3,492
3,419
3,426
3,214
3,177
Rhode Island
994
896
814
734
660
South Carolina
6,016
5,603
5,143
4,518
3,986
South Dakota
979
1,119
848
639
554
Tennessee
7,652
7,075
6,453
5,630
4,829
Texas
23,427
21,985
20,184
17,607
15,176
Utah
2,848
2,548
2,323
1,915
1,618
Vermont
1,283
1,167
1,028
960
789
Virgin Islands
478
379
372
354
332
Virginia
11,347
10,456
9,560
9,111
8,030
Washington
7,854
6,905
6,174
5,383
4,446
West Virginia
3,078
2,903
2,760
2,490
2,271
Wisconsin
6,295
5,662
5,407
4,950
4,242
Wyoming
997
875
746
625
543
Total
379,211
348,861
315,968
278,358
240,019
5 - 4

Customer Response


Publication:
2011 Universal Service Monitoring Report

You can help us provide the best possible information to the public by completing this form and returning it to
the Industry Analysis and Technology Division of the FCC's Wireline Competition Bureau.

1.
Please check the category that best describes you:
____
press

____
current telecommunications carrier

____
potential telecommunications carrier

____
business customer evaluating vendors/service options

____
consultant, law firm, lobbyist

____
other business customer
____
academic/student
____
residential
customer
____
FCC
employee

____
other federal government employee

____
state or local government employee

____
Other (please specify)

2.
Please rate the report: Excellent Good Satisfactory Poor No opinion

Data accuracy
(_)
(_)
(_)
(_)
(_)

Data presentation
(_)
(_)
(_)
(_)
(_)

Timeliness of data
(_)
(_)
(_)
(_)
(_)

Completeness of data
(_)
(_)
(_)
(_)
(_)

Text clarity

(_)
(_)
(_)
(_)
(_)

Completeness of text
(_)
(_)
(_)
(_)
(_)

3.
Overall, how do you Excellent Good Satisfactory Poor No opinion

rate this report?
(_)
(_)
(_)
(_)
(_)

4.
How can this report be improved?

5.
May we contact you to discuss possible improvements?
Name:

Telephone
#:

To discuss the information in this report contact:
Industry Analysis and Technology Division at 202-418-0940.
Fax this response to
or
Mail this response to
202-418-0520

FCC/WCB/IATD
445 12th St. SW
Washington, DC 20554


Document Outline

  • 11introTables_12.19.2011.pdf
  • Section 2B - High Cost.pdf
    • HighCost2011_v3_12.19.2011.pdf
  • Section 2C - Schools and Libraries.pdf
    • Section2SchoolLibrariesForMR_12.19.2011.pdf
  • Section 2D - Rural Health Care.pdf
    • RHCTablesForMR_12.19.2011.pdf
  • Section 4 - Rates and Indices.pdf
    • 11section4accessCharge_12.19.2011.pdf
  • Section 5 - Network Usage.pdf
    • NU_tablesChart_12.19.2011.pdf
  • Section 2B - High Cost.pdf
    • HighCost2011_v3_12.19.2011.pdf
  • Section 2C - Schools and Libraries.pdf
    • Section2SchoolLibrariesForMR_12.19.2011.pdf
  • Section 2D - Rural Health Care.pdf
    • RHCTablesForMR_12.19.2011.pdf
  • Section 4 - Rates and Indices.pdf
    • 11section4accessCharge_12.19.2011.pdf
  • Section 5 - Network Usage.pdf
    • NU_tablesChart_12.19.2011.pdf

Note: We are currently transitioning our documents into web compatible formats for easier reading. We have done our best to supply this content to you in a presentable form, but there may be some formatting issues while we improve the technology. The original version of the document is available as a PDF, Word Document, or as plain text.

close
FCC

You are leaving the FCC website

You are about to leave the FCC website and visit a third-party, non-governmental website that the FCC does not maintain or control. The FCC does not endorse any product or service, and is not responsible for, nor can it guarantee the validity or timeliness of the content on the page you are about to visit. Additionally, the privacy policies of this third-party page may differ from those of the FCC.