This report presents data on telephone penetration levels by state for various income categories. It is designed to help evaluate the degree of success of making telephone service available to low-income households in each state. This report is updated annually. It is part of a series of supplemental reports on telephone penetration that are designed to complement the information available in "Telephone Subscribership in the United States" (subscribership report), which is published three times a year. Like the subscribership report, this report is based on data from the Current Population Survey (CPS), conducted by the Bureau of the Census (Census). Under contract with the Commission, the Census includes in the CPS questions about telephone availability in United States households and provides the Commission with summary tables on telephone penetration rates, which are used in the subscribership reports. The Census later provides the Commission with the raw CPS data files containing all of the responses to all of the questions on the CPS questionnaires. This report is designed to make available more detailed information that can be gleaned from the raw data.