*Pages 1--699 from C:\Pdf2Text\Ready4Text_in\pdf\54057.pdf* UNIVERSAL SERVICE MONITORING REPORT CC DOCKET NO. 98- 202 2005 (Data Received Through May 2005) 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 20554. Call Best Copy and Printing, Inc. at (202) 488- 5300 to purchase a copy. The report can also be downloaded from the Wireline Competition Bureau Statistical Reports (formerly FCC- State Link) Internet site at . It is available in print image (pdf) files and compressed (zip) files in word processor (MS Word) and spreadsheet (MS Excel or Lotus 123 .wk4) formats. 1 Table of Contents Index of Tables and Charts ...........................................................….…....….... 2 to 5 Introduction and Summary ..................................................................…....…... 6 to 8 Service List ...........................................................................................…......…. 9 to 12 1. Industry Revenues and Contributions ............................................…......…. 1- 1 to 1- 56 2. Low- Income Support ......................................................................…......… 2- 1 to 2- 44 3. High- Cost Support ..........................................................................…...…... 3- 1 to 3- 358 4. Schools and Libraries Support ........................................................…....….. 4- 1 to 4- 17 5. Rural Health Care Support ..............................................................….....…. 5- 1 to 5- 13 6. Subscribership and Penetration ........................................................….……. 6- 1 to 6- 79 7. Rates and Price Indices ...............................................…............……….… 7- 1 to 7- 28 8. Network Usage ……………………..........................................................… 8- 1 to 8- 27 9. Quality of Service ..............................................................................…....… 9- 1 to 9- 13 10. Infrastructure ......................................................................................…...... 10- 1 to 10- 22 11. Revenues, Expenses and Investment.................................................…....... 11- 1 to 11- 28 2 2 Index of Tables and Charts Access Charges - Interstate - Per Line .........................................……..................... Table 7.11 Access Charges - Interstate - Per Line - by Carrier .............................……............. Table 7.13 Access Charges - Interstate - Per Minute ....................................................……...... Table 7.12 Access Charges - Interstate - Per Minute - by Carrier .............................................. Table 7.14 Adjustment Formula ………………………………………………………….…… Table 1.17 Carrier Telecommunications Revenues Reported on FCC Form 499- Q ………..… Table 1.9 Changes in Local Exchange Carriers …………………………………………….. Table 3.36 Consumer Price Indices - Levels ..………......................................................…….. Chart 7.1 Consumer Price Indices - Annual Percentage Changes ……….....................…….. Chart 7.2 Consumer Price Indices - Annual Percentage Changes - Telephone Components .. Chart 7.3 Consumer Price Indices - Average Annual Rates of Change ........................……... Table 7.1 Consumer Price Indices - Monthly .................................................................……. Table 7.4 Contribution Base Revenues by Program ……………………………….………… Table 1.4 Customer Perception Surveys - Percentage of Customers Dissatisfied ...........……. Table 9.4 Customer Perception Surveys - Sample Sizes .................................................……. Table 9.5 Embedded High- Cost Loop Fund Formulas ……...............................…….............. Table 3.3 Expenses and Taxes .........................................................................................……. Table 11.2 Expenses - Total Operating ..............................................................................……. Table 11.9 High- Cost Loop Support Data - 2003 - by State or Jurisdiction ..…………….….. Table 3.17 High- Cost Loop Support Data - 2003 - by Study Area ..…………................…….. Table 3.31 High- Cost Loop Support Data - Percentage Changes - by State or Jurisdiction..….. Table 3.18 High- Cost Loop Support Data - Percentage Changes - by Study Area ..…....…….. Table 3.32 High- Cost Loop Support Payments by State or Jurisdiction..…………….……….. Table 3.6 High- Cost Loop Support Payments by Study Area ..…………….…….........…….. Table 3.22 High- Cost Model Support Payments by Non- Rural Study Area .…………..…..…. Table 3.25 High- Cost Model Support Payments by State or Jurisdiction .………………....…. Table 3.9 High- Cost Support Fund Payment History ...….......................................……......... Table 3.1 High- Cost Support Fund Payment History - ILECs and CETCs ..….......……......... Table 3.2 High- Cost Support Fund Payments - Total ...…...........................................……..... Chart 3.1 High- Cost Support Fund Payments - Total - ILECs and CETCs .................……..... Chart 3.2 High- Cost Support Payments - Total by State or Jurisdiction .…..……………..…. Table 3.14 High- Cost Support Payments - Total by State - ILECs and CETCs ………………. Table 3.15 High- Cost Support Payments - Total by Study Area .…………………..…………. Table 3.30 High- Cost Support Mechanisms – Monthly Support per Loop by State ………..… Table 3.16 Income - Net ....................................................................................................……. Table 11.5 Information for Allocating CLEC Revenues ……………………….……….…….. Table 1.19 Information for Allocating Incumbent Local Exchange Revenues ………….…….. Table 1.18 Information for Allocating Interstate Access Revenues ………….………....…….. Table 1.22 Information for Allocating Interstate Toll ……………….………..………....…….. Table 1.26 Information for Allocating Intrastate Access Revenues ………….………....…….. Table 1.23 Information for Allocating LEC Intrastate Toll ……………….…….……....…….. Table 1.24 Information for Allocating Mobile Wireless Revenues …………….……….…….. Table 1.20 Information for Allocating Non- LEC Intrastate Toll …………….….……....…….. Table 1.25 Information for Allocating SLC Revenues ……………………….………....…….. Table 1.21 Installation, Maintenance, and Customer Complaints .....................................……. Table 9.1 Interstate Access Support Payments by State or Jurisdiction ..........................……. Table 3.12 Interstate Access Support Payments by Study Area .......................…………….…. Table 3.28 3 3 Index of Tables and Charts Interstate Common Line Support Payment Trueups by State or Jurisdiction ……... Table 3.11 Interstate Common Line Support Payment Trueups by Study Area ................……. Table 3.27 Investment - Average Net ................................................................................……. Table 11.6 Investment - Gross ...........................................................................................……. Table 11.3 Investment - Other ...........................................................................................……. Table 11.13 Investment Reserves ........................................................................................……. Table 11.4 Lifeline and Link Up Support Payments ….……………..............................……. Chart 2.1 Lifeline Assistance - Payments - by State or Jurisdiction ................................……. Table 2.8 Lifeline Assistance - Subscribers - by State ......………..................................……. Table 2.6 Lifeline Assistance - Subscribers - Tribal and Non- Tribal - by State .............……. Table 2.7 Lifeline Monthly Support - by State ................................................................……. Table 2.3 Lifeline Subscribers and Link Up Beneficiaries .....…….................................……. Table 2.1 Link Up Assistance - Beneficiaries - by State ..………...................................……. Table 2.9 Link Up Assistance - Beneficiaries - Tribal and Non- Tribal - by State ...........……. Table 2.10 Link Up Assistance - Payments - by State ......……….....................…............……. Table 2.11 Local Switching Support Payment Trueups by State or Jurisdiction ...............……. Table 3.13 Local Switching Support Payment Trueups by Study Area .............................……. Table 3.29 Long- Term Support Payments by State or Jurisdiction ...................................……. Table 3.10 Long- Term Support Payments by Study Area .................................................……. Table 3.26 Loops - by State or Jurisdiction …………………...…………………...………….. Table 3.20 Loops - by Study Area ….……………………………………………...………….. Table 3.34 Low- Income Average Benefits by State or Jurisdiction ………………………...… Table 2.12 Low- Income Program Dollars by Study Area …………………..................………. Table 2.5 Low- Income Support Payments …….……………..........................................……. Table 2.2 Low- Income Support Payments by State or Jurisdiction …….……………....……. Table 2.4 Minutes - Interstate Access - by Study Area .......................................………….…. Table 8.4 Minutes - Interstate Access - by Tier ...............................................................……. Table 8.1 Minutes - Interstate Access - Quarterly Total .........................................….....……. Table 8.2 Minutes - Interstate Access - Total - Chart .............................................….....……. Chart 8.1 Non- Operating Items - Total ............................................................................……. Table 11.10 Other Operating Income or Losses .................................................................…….. Table 11.8 Penetration - Households .................................................................................……. Chart 6.1 Penetration - Individual Adults .......................................................................…….. Chart 6.8 Penetration by Household Size ........................................................................……. Table 6.8 Penetration by Household Size - Critical Values ............................................…….. Table 6.14 Penetration by Household Size - Chart ………................................................……. Chart 6.5 Penetration by Householder's Age ...................................................................……. Table 6.9 Penetration by Householder's Age - Critical Values ........................................……. Table 6.15 Penetration by Householder's Age - Chart ………...........................................……. Chart 6.6 Penetration by Income .....................................................................................……. Table 6.7 Penetration by Income - Chart ………...........................................................……. Chart 6.4 Penetration by Income - Adjusted for Inflation …..........................................……. Chart 6.9 Penetration by Income by State - Adjusted for Inflation ….............................……. Table 6.11 Penetration by Income by State - Sample Sizes ….......................………....………. Table 6.17 Penetration by Income - Critical Values ..........................................................……. Table 6.13 Penetration by Labor Force Status ...................................................................……. Table 6.10 Penetration by Labor Force Status - Critical Values ........................................….... Table 6.16 4 4 Index of Tables and Charts Penetration by Labor Force Status - Chart ………….......................................……. Chart 6.7 Penetration by Lifeline Assistance Level …………………………..……………... Table 6.4 Penetration by Lifeline Assistance Status …………………………..……………... Table 6.3 Penetration by State .........................................................................................……. Table 6.6 Penetration by State - Changes ........................................................................……. Table 6.2 Penetration by State - Changes - Map .............................................................…….. Chart 6.3 Penetration by State - Comparison by Level of Lifeline Assistance .……………... Table 6.5 Penetration by State - Critical Values ..............................................................……. Table 6.12 Penetration by State - Map ……………….....................................................…...… Chart 6.2 Plant In- Service - Total ....................................................................................……. Table 11.12 Pool Results - NECA - Common Line .............................................................……. Table 3.4 Pool Results - NECA - Traffic Sensitive ........................................................…….. Table 3.5 Price Indices - Annual Changes ......................................................................……. Table 7.2 Price Indices - Local and Long Distance Services - Annual Changes .............……. Table 7.3 Producer Price Indices …………………………………………………….………. Table 7.5 Rates - Local Business - Single Line ….............................…...........................….... Table 7.7 Rates - Local Residential ………………............................…...........................…... Table 7.6 Revenue per Minute - Average….....................................................................….... Table 7.8 Revenues and Other Operating Items ...............................................................….... Table 11.1 Revenues by Type of Carrier ……………………………………………………… Table 1.8 Revenues from Telecommunications Service Provided for Resale …………..…… Table 1.5 Revenues from Telecommunications Service Provided to End Users ……..……… Table 1.6 Revenues - Total ..................................................................................…………… Table 1.7 Revenues - Total Operating ..................................................................…………… Table 11.7 Rural Health Care - Disbursements by Service Speeds Acquired …………....…… Table 5.3 Rural Health Care - Disbursements per Person by State ……….…..........…...…… Table 5.4 Rural Health Care Funding Commitments and Disbursements by State .................. Table 5.2 Rural Health Care Funding Disbursements by Funding Year ………….................. Table 5.1 Safety Net Additive Support Payments by State or Jurisdiction …………….....….. Table 3.7 Safety Net Additive Support Payments by Study Area ………………..…….…….. Table 3.23 Safety Valve Support Payments by State or Jurisdiction ………........................….. Table 3.8 Safety Valve Support Payments by Study Area ………………………….….…….. Table 3.24 Schools & Libraries Commitments & Disbursements by Applicant & Service Type Table 4.1 Schools & Libraries Commitments & Disbursements by State & Applicant Type .. Table 4.2 Schools & Libraries Commitments & Disbursements by State & Service Type ..… Table 4.3 Schools & Libraries Commitments & Disbursements per Student by State …….… Table 4.5 Schools & Libraries Commitments per Student ………………………..…….....… Table 4.6 Schools & Libraries Disbursements by Service Provider Type ……….................... Table 4.4 Schools & Libraries Disbursements per Student ……………..…………..……..… Chart 4.1 Schools & Libraries Disbursements per Student ……………..…………..……..… Table 4.7 Standard Deviation Analysis of Residential Rates - 2003 ………..………………. Table 7.9 Standard Deviation Analysis of Residential Rates - Historical ……….………..…. Table 7.10 State Code Reference …............................................................................................ Table 8.5 Subscribership - Household - United States ....................................................……. Table 6.1 Switch Downtime and Trunk Blocking ............................................................….... Table 9.2 Switch Downtime Causes ........……......................................................................... Table 9.3 Switching Systems .........................……................................................................... Table 10.1 5 5 Index of Tables and Charts Taxes ………………….........................……............................................................ Table 11.11 Telecommunications Industry Revenues by Service …..…….................................. Table 1.2 Telecommunications Industry Revenues - Total ……..……..................................... Table 1.1 Telecommunications Revenues by Type of Carrier ……..……................................ Table 1.3 Telecommunications Revenues - Interstate …..…………….................................... Table 1.16 Telecommunications Revenues - Intrastate …..…………….................................... Table 1.15 Telecommunications Revenues - Total - by State …..……...................................... Table 1.13 Telecommunications Revenues - 2002…………………………….. …..……........ Table 1.14 Telephone Calls and Billed Access Minutes of Large ILECs ………………...…… Table 8.3 Transmission Systems ......................................................……................................. Table 10.2 Universal Service Program Requirements and Contribution Factors ..............……. Table 1.10 Universal Service Support - Distribution of Universal Service Payments ……...… Chart 1.1 Universal Service Support Mechanisms …………………………………………... Table 1.11 Universal Service Support Mechanisms - by State ……………………………...… Table 1.12 Unseparated NTS Revenue Requirement - by State or Jurisdiction …………….… Table 3.19 Unseparated NTS Revenue Requirement - by Study Area ……………………...… Table 3.33 Unseparated NTS Revenue Requirement per Loop - by State or Jurisdiction …..… Table 3.21 Unseparated NTS Revenue Requirement per Loop - by Study Area …………...… Table 3.35 6 6 Universal Service Monitoring Report CC Docket No. 98- 202 2005 Introduction and Summary This is the ninth 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 May 2005. 2 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. 3 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, 4 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. 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 carriers 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. This report presents data for the eleven 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 four sections provide information on the various support mechanisms: low- income support; high- cost support; schools 1 The last report was released on October 12, 2004. Universal Service Monitoring Report, CC Docket No. 98- 202, 2004 (Data Received Through May 2004), prepared by the Federal and State Staff for the Federal- State Joint Board on Universal Service in CC Docket No. 96- 45. 2 In some sections, data received in June have been included. 3 Federal- State Joint Board on Universal Service, CC Docket No. 96- 45, Report and Order, FCC 97- 157, para. 869 (released May 8, 1997). See 47 C. F. R. § 54.702( i). 4 CC Docket No. 98- 202. 7 7 and libraries support; and rural health care support. The remaining six sections provide information on matters that might be affected by the support mechanisms: subscribership and penetration; rates and price indices; network usage and growth; quality of service; infrastructure; and revenues, expenses, and investment. The Monitoring Report is now published once a year. The following are highlights of some of the material in 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 Lifeline and LinkUp programs. Section 3 includes the most recent projected payments for all of the high- cost support mechanisms, based on the quarterly reports from USAC. It also includes information from the latest filing by NECA for the high- cost loop fund. Section 4 includes updated data on the schools and libraries support mechanism. Section 5 includes updated data on the rural health care support mechanism. Section 6 includes the most recent Census data on subscribership from the Current Population Survey. It also includes data on telephone penetration by income by state and a discussion of the impact of Lifeline programs on penetration. Section 7 includes updated Consumer Price Index and Producer Price Index data and other updated rate information. Section 8 includes the latest NECA data on access minutes. Section 9 includes updated data on the quality of service from the Commission's Automated Reporting Management Information System (ARMIS) reports. Section 10 includes updated data on infrastructure from the ARMIS reports. Section 11 includes the latest information on revenues, expenses, and investment from the ARMIS reports. This entire report is available electronically through the Wireline Competition Bureau Statistical Reports 5 Internet site, which can be reached at . It is available in both page image (. pdf) format and in a compressed (. zip) format, which, when unzipped yields word processing and spreadsheet files. 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. In addition, the ARMIS data are available on the ARMIS Internet site, which can be reached at . For ease of public reference, parties submitting materials for this docket should provide a duplicate copy to the FCC's Reference Information Center, 6 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: Alex Belinfante (Federal) (202) 418- 0944 Alan Feldman (Federal) (202) 418- 0943 5 Formerly FCC- State Link. 6 Courtyard Level, 445 12th Street SW, Washington, DC 20554. 8 8 Industry Revenues and Contributions: Jim Lande (Federal) (202) 418- 0948 Jim Eisner (Federal) (202) 418- 7302 Craig Stroup (Federal) (202) 418- 0989 Jeff Pursley (Nebraska) (402) 471- 0264 Andrew Margeson (Oregon) (503) 378- 6611 Low- Income Support: Larry Povich (Federal) (202) 418- 0953 Suzanne Mendez (Federal) (202) 418- 0941 Greg Fogleman (Florida) (850) 413- 6574 Philip McClelland (Pennsylvania) (717) 783- 5048 High- Cost Support: Alex Belinfante (Federal) (202) 418- 0944 Carl Johnson (New York) (518) 486- 2832 Michael Lee (Montana) (406) 444- 6185 Joel Shifman (Maine) (207) 287- 1381 Schools and Libraries Support: Craig Stroup (Federal) (202) 418- 0989 John Vu (Federal) (202) 418- 2333 Jennifer Richardson (Indiana) (317) 232- 2785 Peter Pescosolido (Connecticut) (860) 827- 2616 Rural Health Care Support: Craig Stroup (Federal) (202) 418- 0989 John Vu (Federal) (202) 418- 2333 Peter Bluhm (Vermont) (802) 828- 2358 Eric Seguin (Oklahoma) (405) 522- 3765 Subscribership and Penetration: Alex Belinfante (Federal) (202) 418- 0944 Earl Poucher (Florida) (850) 487- 8242 Rates and Price Indices: Paul Zimmerman (Federal) (202) 418- 7285 Joel Shifman (Maine) (207) 287- 1381 David Dowds (Florida) (850) 413- 6542 Network Usage: Alex Belinfante (Federal) (202) 418- 0944 Aram Shumavon (California) (415) 703- 2727 Quality of Service: Jonathan Kraushaar (Federal) (202) 418- 0947 Earl Poucher (Florida) (850) 487- 8242 Brad Ramsay (NARUC) (202) 898- 2207 Infrastructure: Jonathan Kraushaar (Federal) (202) 418- 0947 Lori Kenyon (Alaska) (907) 263- 2123 Revenues, Expenses, and Investment: Katie Rangos (Federal) (202) 418- 0954 Barbara Meisenheimer (Missouri) (573) 751- 5567 9 9 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 Chairman Kevin J. Martin Commissioner Michael J. Copps Federal Communications Commission Federal Communications Commission 445 12th Street SW, Room 8- B201 445 12th Street SW, Room 8- A302 Washington, DC 20554 Washington, DC 20554 Vacant Commissioner Thomas J. Dunleavy Federal Communications Commission New York State Public Service Commission 445 12th Street SW 90 Church Street, 4 th Floor Washington, DC 20554 New York, NY 10007 Commissioner Larry S. Landis Commissioner Lisa Polak Edgar Indiana Utility Regulatory Commission Florida Public Service Commission 302 West Washington St., Suite E- 306 2540 Shumard Oak Boulevard Indianapolis, IN 46204 Tallahassee, FL 32399- 0809 Commisioner Ray Baum Director Billy Jack Gregg Oregon Public Utility Commission West Virginia Consumer Advocate Division 550 Capitol Street, N. E., Suite 215 723 Kanawha Boulevard, East P. O. Box 2148 7 th Floor, Union Building Salem, OR 97308- 2148 Charleston, WV 25301 DOCKET NO. 96- 45 FEDERAL- STATE JOINT BOARD STAFF Carl Johnson Andrew Margeson New York Public Service Commission Oregon Public Utility Commission 3 Empire State Plaza 550 Capitol Street, N. E. Albany, NY 12223- 1350 Salem, OR 97301- 2551 Carl_ Johnson@ dps. state. ny. us andrew. margeson@ state. or. us Greg Fogleman Jennifer A. Richardson Florida Public Service Commission Indiana Utility Regulatory Commission 2540 Shumard Oak Boulevard 302 West Washington St., Suite E- 306 Tallahassee, FL 32399- 0850 Indianapolis, IN 46204 gfoglema@ psc. state. fl. us jrichardson@ urc. state. in. us Philip McClelland Earl Poucher Pennsylvania Office of Consumer Advocate Florida Office of the Public Counsel 555 Walnut Street, 5th Floor 111 West Madison, Room 812 Harrisburg, PA 17101- 1923 Tallahassee, FL 32399- 1400 pmcclelland@ paoca. org poucher. earl@ leg. state. fl. us 10 10 Lori Kenyon Peter Pescosolido Regulatory Commission of Alaska Connecticut Department of Public Utility Control 1016 West 6th Avenue, Suite 400 10 Franklin Square Anchorage, AK 99501 New Britain, CT 06051 lorraine_ kenyon@ rca. state. ak. us Peter. Pescosolido@ po. state. ct. us Joel Shifman Jeff Pursley Maine Public Utilities Commission Nebraska Public Service Commission 242 State Street 300 The Atrium, 1200 N Street State House Station 18 P. O. Box 94927 Augusta, ME 04333- 0018 Lincoln, NE 68509- 4927 joel. shifman@ state. me. us jeff. pursley@ psc. ne. gov Aram Shumavon Barbara Meisenheimer California Public Utility Commission Missouri Office of Public Counsel 505 Van Ness Avenue 301 West High St., Suite 250 San Francisco, CA 94102 Jefferson City, MO 65102 aram@ cpuc. ca. gov barb. meisenheimer@ ded. mo. gov Eric Seguin Peter Bluhm Oklahoma Corporation Commission Vermont Public Service Board 2101 North Lincoln Boulevard Drawer 20, 112 State Street, 4th Floor Oklahoma City, OK 73152- 2000 Montpelier, VT 05620- 2701 e. seguin@ occemail. com pbluhm@ psb. state. vt. us Michael Lee David Dowds Montana Public Service Commission Florida Public Service Commission 1701 Prospect Ave. 2540 Shumard Oak Boulevard Helena, MT 59620- 2601 Tallahassee, FL 32399- 0850 mlee@ mt. gov ddowds@ psc. state. fl. us Brad Ramsay NARUC 1101 Vermont Ave. NW, Suite 200 Washington, DC 20005 jramsay@ naruc. org Michelle Carey Jessica Rosenworcel Office of Chairman Martin Office of Commissioner Copps Federal Communications Commission Federal Communications Commission 445 12th Street SW, Room 8- B201L 445 12th Street SW, Room 8- A302E Washington, DC 20554 Washington, DC 20554 michelle. carey@ fcc. gov jessica. rosenworcel@ fcc. gov 11 11 Vacant Thomas Navin, Chief Vacant Office of Commissioner Wireline Competition Bureau Federal Communications Commission Federal Communications Commission 445 12th Street SW 445 12th Street SW, Room 5- C356 Washington, DC 20554 Washington, DC 20554 thomas. navin@ fcc. gov Narda Jones, Chief Cathy Carpino, 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- A425 445 12th Street SW, Room 5- A441 Washington, DC 20554 Washington, DC 20554 narda. jones@ fcc. gov cathy. carpino@ fcc. gov Gina Spade, Assistant Chief Katie King 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- B550 445 12th Street SW, Room 5- B544 Washington, DC 20554 Washington, DC 20554 gina. spade@ fcc. gov katie. king@ fcc. gov Tom Buckley, Acting 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- B552 445 12th Street SW, Room 5- B438 Washington, DC 20554 Washington, DC 20554 thomas. buckley@ fcc. gov theodore. burmeister@ fcc. gov Geoff Waldau Warren Firschein 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- B524 445 12th Street SW, Room 5- B442 Washington, DC 20554 Washington, DC 20554 geoff. waldau@ fcc. gov warren. firschein@ fcc. gov OTHER FEDERAL STAFF Alex Belinfante Alan Feldman, Deputy 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- A132 445 12th Street SW, Room 6- A223 Washington, DC 20554 Washington, DC 20554 alex. belinfante@ fcc. gov alan. feldman@ fcc. gov 12 12 Jonathan Kraushaar Jim Lande 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- A262 445 12th Street SW, Room 6- A134 Washington, DC 20554 Washington, DC 20554 jonathan. kraushaar@ fcc. gov jim. lande@ fcc. gov Suzanne Mendez Larry Povich 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- A100 445 12th Street SW, Room 6- A130 Washington, DC 20554 Washington, DC 20554 suzanne. mendez@ fcc. gov larry. povich@ fcc. gov Katie Rangos Jim 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- A162 445 12th Street SW, Room 6- A102 Washington, DC 20554 Washington, DC 20554 katie. rangos@ 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 Paul Zimmerman Industry Analysis & Technology Division Wireline Competition Bureau Federal Communications Commission 445 12th Street SW, Room 6- C162 Washington, DC 20554 paul. zimmerman@ fcc. gov 13 1 - 1 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 2003 are taken from filings of annual Telecommunications Reporting Worksheets (FCC Form 499- A) made with the Universal Service Administrative Company (USAC) on April 1, 2004. 2 Revenue data collected on these worksheets are used to administer contributions to the universal service fund (USF), Interstate Telecommunications Relay Service (TRS), North American Numbering Plan (NANP), and local number portability (LNP) programs. Filer revenues also are used to calculate FCC Interstate Telecommunications Service Provider (ITSP) regulatory fees. 3 Data presented for 2004 are taken from May 1, 2004, August 1, 2004, November 1, 2004, and February 1, 2005 FCC Form 499- Q quarterly filings. Revenue Information Universal service requirements include several mechanisms 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] ve ry 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 1 Portions of this section are based on Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Industry Revenues 2003 (March 2005). 2 Telecommunications providers filed worksheets containing calendar year 2004 revenue data on April 1, 2005. The worksheets are filed with the FCC’s Data Collection Agent, 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. Filings with 2003 revenues that were received after October 1, 2004, are not reflected herein. 3 Much of the information filed on FCC Form 499- A is proprietary. Publicly available information on individual carriers is contained in Industry Analysis and Technology Division, Wireline Competition Bureau, Federal Communications Commission, Telecommunications Provider Locator (March 2005). See also . 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). 14 1 - 2 mandate in a 1997 Report and Order. 6 The Commission subsequently selected USAC as the administrator of the universal service support mechanisms. Telecommunications providers currently file FCC Form 499- A (Telecommunications Reporting Worksheets, due each April) and FCC Form 499- Q (Telecommunications Reporting Worksheets, due one month after the close of each calendar quarter). Virtually all providers of telecommunications must file FCC Form 499- A each year. 7 Telecommunications Reporting Worksheets are not filed directly with the FCC but rather with USAC, which serves as the data collection agent. FCC Form 499- A asks each filer to report total, 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 telecommunications providers and end users (end- user revenues). 8 Filers must provide further breakdowns of local, wireless, and toll services. The form also asks each filer to choose the communications business that best describes its operations: 9 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). 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 are subject to contribution requirements and therefore exempt entities may be required to pay USF pass- through charges to underlying services providers. 8 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 firms as end users. 9 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. pdf. Starting in 2004, carriers were instructed to select up to 5 ranked categories of telecommunications service providers. 15 1 - 3 • All Distance Carrier • Competitive Access Provider (CAP) or Competitive Local Exchange Carrier (CLEC) • Cellular, Personal Communications Serv ice (PCS) and Specialized Mobile Radio (SMR) Wireless Telephony Service Provider • Coaxial Cable • Incumbent Local Exchange Carrier (ILEC) • 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. Many wireless providers use the interim safe harbor percentages to estimate the interstate portion of their revenues. 10 10 See Instructions to the Telecommunicati ons Reporting Worksheet, FCC Form 499- A section III. C. 3., available at http:// www. fcc. gov/ Forms/ Form499- A/ 499a- 2005. pdf. In 2001 and 2002, the interim safe harbor for wireless carriers was 15%. In December 2002, the Commission raised the wireless interim safe harbor to 28.5%. 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. 16 1 - 4 Form 499- A filings sometimes contain mistakes. Initial examination of the data occasionally reveals carrier 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 1997 through 2004. This table was created by simply aggregating the revenues in the major classifications designated on Form 499- A. Tables 1.2 and 1.3 provide a look at annual industry revenues over time. Generally, Form 499- A revenue data can be tabulated in two distinct ways: by type of service provided and by type of business. Table 1.2 categorizes revenues by type of service and shows, for example, that carriers reported $89.7 billion in wireless service revenues for 2003. This total includes wireless service revenues from some carriers that are not identified as wireless carriers. In contrast, Table 1.3 shows that wireless service providers reported total revenues of $89.3 billion, including some revenues for fixed local and toll services. Revenue data shown for 1993 through 1996 were derived from information filed on TRS worksheets. Revenue data for 1997 and 1998 were derived by combining TRS worksheet and Universal Service worksheet data. Since 1999, revenue data came from Form 499- A, which replaced both the TRS and Universal Service worksheets. Because of reporting changes, data since 1999 are not entirely consistent with data for prior years. 11 Note also that 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 11 For example, special access revenues were included with other access revenues prior to 1997 but have been included with local private line services since then. Similarly, through 1996, filers reported as other local and mobile revenues substantial amounts of customer premises equipment, billing and collection, and other types of revenues that are excluded from contributions to universal service. These revenues are now reported as non-telecommunications revenues. Both tables contain estimates of non- telecommunications revenues that had been reported in prior years. Based on staff estimates, the 1996 telecommunications revenues reported on TRS Worksheets would have been $10.5 billion lower if revenues had been reported using current instructions. Some inconsistencies existed in the 1997 - 1998 period. For example, filers were required in 1997 to include inside wiring maintenance revenues as part of local exchange revenues. In 1998, filers were instructed to report these revenues as non- telecommunications service revenues. The local exchange service revenue data in Table 1.2 would show a greater increase from 1997 to 1998 if the same reporting instructions had been used for each year. 17 1 - 5 based on staff research. Even so, the other long distance category of Table 1.2 probably continues to contain some switched toll revenues, perhaps significant amounts in some years. Table 1.4 illustrates how data from the Form 499- A are used to develop the funding base for the USF. 12 As noted above, providers are considered de minimis for USF purposes if their annual contribution is expected to be less than $10,000. Otherwise, only those providers that are not carriers are not required to contribute. Revenue data for individual filers are not available to the public. However, Tables 1.5 through 1.8 present detailed industry totals by type of revenue and type of filer. Table 1.5 provides a detailed breakout of revenues for each of the Form 499- A revenue categories used to report services provided to other filers for resale. Table 1.6 displays similar detail for each of the revenue categories used to report telecommunications service provided to end users. Table 1.7 combines data from Tables 1.5 and 1.6 with data on non- telecommunications revenues to develop total industry revenues. Table 1.8 provides more aggregated revenue information by type of filers. The revenue categories presented in Tables 1.5 through 1.7 are explained in the Form 499- A filing instructions. Table 1.9 presents data from quarterly filings of Form 499- Q for 2004. 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 primary business type selected on their Form 499- A filings. The quarterly form asks filers to identify revenues as carrier’s carrier, contribution base 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 report revenues to the provision of specific types of services. Also, international- to- international revenues are included with non-telecommunications revenues rather than with end- user revenues. The universal service rules prohibit the fund administrator from releasing company- specific information contained in Form 499- A and Form 499- Q worksheets. 13 Revenue data for individual filers are not available to the public. Program Requirements and Contribution Factors Carriers make payments into the USF based on their interstate and international end- user revenues. Carriers report their revenue data to USAC, which tabulates the data, and reports it to the Commission. The Commission reviews program requirements and revenue data, and determines the appropriate contribution factor. The Commission’s Wireline Competition Bureau 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. 12 See Telecommunications Industry Revenues 2001 for a comparison with the funding bases used for TRS, NANP, and LNP. 13 47 C. F. R. §54.711( b). 18 1 - 6 The Commission issued orders in February 2002 and December 2002 that changed the methodology used to determine payments that carriers make into the federal USF. Before these changes, service providers filed historic revenue information each quarter, which, after being reduced by 1% to account for uncollectible cont ributions, was divided into the total program requirements in order to calculate the contribution factor. Some service providers placed surcharges on customer bills to recover the amounts that they expected to make in USF contribution payments. These surcharges are called "pass- through" charges, and often exceeded the actual contribution rates. Service providers marked up the contribution rates for several reasons. The most important reason was because the revenues from pass- through charges also were included in the service provider contribution bases. Filers used the term "circular ity" to describe this situation. Service providers also relied upon markups because they had to contribute on revenues even where the customer failed to pay. Some service providers also added markups to recover administrative expenses that they claimed were related to contributions. Finally, some service providers had declining revenues. Those providers had to contribute on a historic amount that was greater than their current period billings. The markups resulted in numerous consumer complaints. The Commission twice changed the universal service contribution methodology to ensure that markups matched contributions. The first change, adopted in February 2002 and implemented in the third quarter of 2002, reduced each carrier’s contribution base by the amount that the carrier paid into USF during the prior quarter. 14 The line item “Circularity Adjustment” in Table 1.10 accounts for this change. The “Circularity Adjustment” represents the industry’s actual cont ributions during the prior quarter as reported by USAC. This eliminated circularity as a reason for carriers to inflate pass- through charges. After this first change, some service providers continued to impose pass- through charges in excess of the published contribution factor. In December 2002, the Commission adopted additional changes to its contribution methodology, which were fully implemented in the second quarter of 2003. 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 14 See Federal- State Joint Board on Universal Service; 1998 Biennial Regulatory Review - Streamlined Contributor Reporting Requireme nts Associated with Administration of Telecommunications Relay Service, Nort h 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 Reco very Contribution Factor and Fund Size; Number Resource Optimization; Telephone Number Portability; Truth- in- Billing and Billing Format, 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 1 - 7 uncollectible revenues, form the basis for USF contribution assessments. Projected collected revenues are then adjusted to eliminate circularity. 15 Starting with the second quarter of 2003, the "Circularity Adjustment" amounts shown in Tabl e 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 2004 and the first three quarters of 2005. For each program and for each quarter, the table lists projected program demand, administrative costs, interest income, and periodic true- ups. The table also shows the revenue base and contribution factors for each quarter. As explained above, the contribution base is 1% less than reported revenues to reflect the fact that some contribution assessments may prove uncollectible. Table 1.11 shows universal service disbursements on a mechanism- by- mechanism basis for 2003 and 2004. 16 The schools and libraries mechanism and the rural health care mechanism operate on a school- year basis rather than a calendar- year basis, so for the purposes of Table 1.11, Funding Year 2002 (July 1, 2002 through June 30, 2003) disbursements were used for these two mechanisms for 2003, and Funding Year 2003 (July 1, 2003 through June 30, 2004) disbursements were used for 2004. The bulk of a funding year disbursements for these two mechanisms are made in the second half of the funding year. Chart 1.1 shows the same 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 2003 and 2004. 17 15 See Federal- State Joint Board on Universal Service, 1998 Biennial Regulatory Review - Streamlined Contributor Reporting Requireme nts Associated with Administration of Telecommunications Relay Service, Nort h American Numbering Plan, Local Number Portability, and Universal Service Support Mec hanisms, 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 , 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). 16 Figures in Table 1.11 are lower than those in Table 1.10 due to the difference between projected demand and actual disbursements. 17 For a discussion of the methodology used to estimate contributions per state, see the Technical Appendix below and Table 1.13. 20 1 - 8 Technical Appendix Carrier revenue information is not reported on a state- by- state basis. Therefore, it is necessary to estimate revenues per state in order to derive contributions made per state. The nationwide sum of contributions to support universal service is equal to the payments made from USAC to carriers for universal service mechanisms plus administration costs. Contributions on a per- state basis are computed by multiplying nationwide contributions by the ratio of interstate end- user revenues in each state to nationwide interstate end- user revenues. Estimates of interstate end- user revenues for 2003 by state are reported in Table 1.13. Each state’s share of interstate end user revenues is reported in Table 1.12. 18 The remainder of this appendix provides a detailed description on how revenues are allocated to the states. Tables 1.5 and 1.6 present nationwide data on telecommunications revenues derived from information filed on Form 499- A Telecommunications Reporting Worksheets. Nationwide (cumulative) telecommunications revenues from these tables are divided into categories. These categories are ILECs’ local exchange service revenues, CLEC revenues, subscriber line charge (SLC) revenues, access revenues, mobile wireless revenues and toll revenues. 19 Table 1.14 presents telecommunication revenues for each of these categories at the nationwide level. As set forth below, once the revenues are divided into categories, we use data from several sources to estimate each state’s telecommunications revenues. Data from the Statistics of Communication Common Carriers 20 are used to estimate on a state- by- state basis ILECs’ local exchange service revenues, access revenues, and toll revenues. 21 Data from tariff access filings with the FCC are used to estimate SLC revenues. CLEC revenues are estimated on a state- by- 18 State’s share of interstate end user revenues are reported under the heading percent of total estimated contributions. 19 The notes in Table 1.14 discuss how revenues from Tables 1.5 and 1.6 are assigned to categories in Table 1.14. 20 Industry Analysis and Technology Division, Wireline Competition Bureau, Statistics of Communications Common Carriers, 2003/ 2004 edition (October 2004). 21 Revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are not estimated using data from the Statistics of Communications Common Carriers because these jurisdictions have no telephone companies subject to the FCC's Automated Reporting Management Information System (ARMIS) 43- 01 and 43- 08 reporting requirements. 21 1 - 9 state basis using data from FCC Form 477, and mobile wireless revenues are estimated using data from FCC Form 502. Table 1.15 shows intrastate carrier’s carrier, end- user and total telecommunication revenues by category for ILECs’ local exchange service, CLECs, wireless, access, ILEC toll, and non- ILEC toll. 22 Components of interstate carrier’s carrier, end- user and total telecommunications revenues are presented in Table 1.16. These components include ILECs, CLECs, wireless, SLCs, access, and toll. 23 Data from the 2003/ 2004 Statistics of Communications Common Carriers are adjusted prior to allocating nationwide revenues to the states. Data compiled in the Statistics of Communications Common Carriers include those ILECs with annual operating revenues over $121 million for 2002 and revenues over $123 million in 2003. The Statistics of Communications Common Carriers revenue data represent approximately 92 percent of the local telephone industry based on USF loops. Here, data from the Statistics of Communications Common Carriers are expanded to include the entire ILEC industry based on USF loops. Column 1 of Table 1.17 shows USF loops at year- end 2003. Column 2 shows the percent of the ILEC industry that is included in the tables in the Statistics of Communications Common Carriers . It is the average for year- end 2002 and 2003 data. 24 The adjustment formula in Column 3 is (100/ Column 2). In Table 1.18, ILECs’ state local exchange revenues are allocated based on local exchange service and state miscellaneous revenues from Table 2.11 of the 2003/ 2004 Statistics of Communications Common Carriers . Local exchange revenues for allocation are the product of reported ILECs’ local exchange service and miscellaneous revenues and the adjustment formula in Table 1.17. Allocation percentages in each state are the ratio of the state’s allocation revenues to nationwide revenues. Local exchange revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.19, we allocate interstate and intrastate CLEC revenues on a state- by- state basis by multiplying national revenues (see Table 1.14) by an allocation percentage. For those states with 22 Estimated intrastate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average intrastate telephone revenues per loop by number of loops in the jurisdiction. 23 Estimated interstate telephone revenues for Alaska, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands are determined by multiplying the nationwide average interstate telephone revenues per access minute by number of access minutes in the jurisdiction. 24 See Table 5.7 of the Statistics of Communications Common Carriers, 2003/ 2004 edition, for year- end 2002 data. 22 1 - 10 publicly available data on CLEC lines that exceed 100,000, the allocation percentage is determined by dividing the number of CLEC lines as reported in FCC Form 477 by nationwide CLEC lines. 25 It is more difficult to determine the allocation percentage for the other states. For these states, the allocation percentage is the product of the following two percentages: 1) the percentage of nationwide CLEC lines that are in states in which CLEC line totals are not publicly available or have fewer than 100,000 CLEC lines, and 2) the ratio of Regional Bell Operating Company (RBOC) resold lines and unbundled network element (UNE) loops in the state as compared to RBOC resold lines and UNE loops in all states in which CLEC lines are not reported or have fewer than 100,000 CLEC lines reported. 26 In Table 1.20, we allocate interstate and intrastate mobile wireless revenues on a state- by-state basis by multiplying national revenues (see Table 1.14) by an allocation percentage. The allocation percentage is determined by dividing the number of wireless numbers in a state using data from FCC Form 502 (Numbering Resources Utilization/ Forecasting) by nationwide wireless numbers. SLC revenues are allocated by state in Table 1.21. The sum of residential non- Lifeline lines (including both primary and non- primary lines) and single- line business lines are estimated by multiplying residential non- Lifeline lines and single- line business lines from Table 2.17 of the 2003/ 2004 Statistics of Communications Common Carriers by the adjustment factor from Table 1.17. Column 1 shows primary residential lines and single- line business lines which is the difference between total residential and single- line business lines, and non- primary lines. Non-primary residential lines are estimated by multiplying the percentage of non- primary lines by the sum of residential non- Lifeline lines and single- line business lines reported in Table 2.17 of the Statistics of Communications Common Carriers. 27 Multi- line business lines (Column 3) are estimated for the industry by multiplying the number of lines in Table 2.17 of the Statistics of Communications Common Carriers by the adjustment factor in Table 1.17. Primary residential and single- line business lines SLC rates per month, shown in Column 4 are the weighted average of rates filed in the Tariff Review Plan (TRP) for price- cap carriers from the July 2002 and July 2003 filings and from National Exchange Carrier Association (NECA) pool 25 See for CLEC lines as of June 2003. 26 See for RBOC data on resold lines and UNE loops as of June 2003. 27 Carriers that are not subject to price- cap regulation charge the same rate for a customer's first line as they do for additional lines. Staff estimated the percentage of non- Lifeline residential and single- line business lines that are charged the non- primary access rates based on data that the Commission receives from access filings from price- cap carriers and from ARMIS 43- 08 filings. 23 1 - 11 and rate- of- return carriers. 28 Non- primary SLC revenues per line per month for price- cap companies, shown in Column 5, are the weighted average of rates filed in the TRPs from the July of 2002 and July of 2003 filings. Multiline business SLC rates per line per month in each state, shown in Column 6, are estimated based on the rates in the July 2002 and July 2003 TRP filings for price-cap companies and from NECA pool and rate- of- return carriers. 29 Revenues used for allocating SLC revenues by state are determined by the following formula: 12 * [primary residential and single- line business SLC per line per month * (primary residential lines and single- line business lines) + multiline business SLC per line per month * (multiline business lines) + non- primary lines * non- primary SLC per line per month]. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. SLC revenues are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). In Table 1.22, interstate access revenues and private line revenues are allocated on a state-by- state basis based on net access revenues. Gross access revenues for allocation are the product of interstate access revenues from Table 2.11 of the 2003/ 2004 Statistics of Communications Common Carriers and the adjustment formula presented in Table 1.17. Revenues for allocation are the difference between gross access revenues for allocation and subscriber line charge revenues. Allocation percentages in each state are the ratio of the state’s allocation revenues to nationwide revenues. Access revenues by type are determined by multiplying the allocation factors by the type of revenues (see Table 1.14). In Table 1.23, intrastate access revenues are allocated between states based on intrastate access revenues from Table 2.11 of the 2003/ 2004 Statistics of Communications Common Carriers. Intrastate access revenues for allocation are the product of these access revenues and the adjustment formula in Table 1.17. Allocation percentage in each state is the ratio of the state’s allocation revenues to nationwide revenues. Access revenues by type are determined by multiplying the allocation factor by the type of revenues (see Table 1.14). Table 1.24 shows ILEC toll revenues of large ILECs reported in Table 2.11 of the Statistics of Communications Common Carriers , and ILEC intrastate toll revenues. 30 ILEC intrastate toll revenues are the product of ILEC reported revenues and the adjustment formula in Table 1.17. Table 1.25 shows how non- LECs’ intrastate toll revenues are allocated between states based 28 Carrier USF loop counts are used as weights. We assume that the residential SLC for NECA pool and rate- of- return carriers during the relevant time period was $6.25. 29 The rates of NECA pool carriers and rate- of- return carriers are assumed to be $9.20 per line per month for multiline business. 30 ILECs’ toll revenues are assumed to be intrastate revenues. 24 1 - 12 on intrastate access minutes and intrastate access revenues. 31 Non- LEC toll is the difference between intrastate toll revenues and LEC toll revenues. 32 Intrastate toll revenues are reported in Table 1.14, and LEC toll revenues are reported in Table 1.24. Column 1 shows access minutes for allocation. Access minutes for allocation are the product of intrastate- interLATA access minutes from Table 2.5 of the 2003/ 2004 Statistics of Communications Common Carriers and the adjustment formula in Table 1.17. Column 2 shows each state’s percentage of intrastate access minutes. Column 3 shows each state’s percentage of intrastate access revenues. 33 The allocation percentages for non- LECs’ intrastate toll revenues, presented in Column 4, are (75% * Column 2) + (25% * Column 3). Intrastate toll revenues by type presented in Columns 5 and 6 are determined by multiplying the allocation percentage by the type of revenues. In Table 1.26, interstate toll revenues are allocated on a per state basis by interstate access minutes. Interstate access minutes are from Table 8.4. The allocation percentages are each state’s percentage of interstate access minutes. Interstate toll revenues by type presented are determined by multiplying the allocation percentage by the type of revenues. (see Table 1.14). 31 Intrastate access revenues are a proxy for intrastate toll rates. 32 We assume that all LEC toll revenues are end- user revenues. 33 Intrastate access revenues are reported in Table 1.23. Non- LEC toll is the difference between intrastate toll revenues and LEC toll. LEC toll is assumed to be end- user toll. Intrastate toll revenues are reported in Table 1.14 and LEC toll in Table 1.24. 25 Table 1.1 Total Telecommunications Industry Revenues 1/ (Dollar Amounts Shown in Millions) Preliminary 5/ 19971998199920002001200220032004 Carrier's Carrier Revenues 2 / Local Service 3 /$ 28,289$ 29,374$ 33,156$ 36,621$ 40,108$ 38,412$ 37,742$ 38,794 Wireless Service 2,7523,0604,6525,1446,1805,0204,4655,305 Toll Service 11,59813,44814,93421,84919,99916,47618,20517,244 Intrastate16,20118,89222,29325,55327,84825,77024,82524,974 Interstate and International 4 /26,43826,99030,44938,06038,43934,13835,58735,801 Total 42,51545,75852,74263,61366,28759,90760,41260,775 End User Revenues 2 / Local Service 3 /69,13775,18978,60884,52687,70488,71286,47485,920 Wireless Service 30,19933,71443,84356,85768,50776,50185,25495,503 Toll Service 89,19391,60793,31187,76779,30267,22258,98350,557 Intrastate117,454123,216134,919147,465155,347154,815150,889151,550 Interstate and International 4 /71,07677,29480,84481,68580,16577,61979,82276,727 Total 188,529200,510215,763229,149235,513232,434230,711228,277 Total Revenues Local Service 3 /97,426104,563111,764121,147127,812127,123124,216124,714 Wireless Service 32,95136,77548,49562,00074,68781,52189,718100,808 Toll Service 100,793105,055108,246109,61599,30183,69777,18867,801 Intrastate133,655142,108157,212173,018183,195180,585175,714176,524 Interstate and International 4 /97,514104,284111,293119,745118,605111,756115,409112,528 Total $231,168$ 246,392$ 268,505$ 292,762$ 301,800$ 292,341$ 291,123$ 289,052 Note: Detail ma y not add to totals due to roundin g. 1 / 2 / 3 / 4 / 5 / Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2005). Preliminary 2004 data are based on FCC Form 499- Q filings Data include revenues for de minimis filers as well as for other carriers that are exempt from universal service contribution requirements. Carrier's carrier revenues are reported on the FCC Form 499- A as sales to other universal service contributors for resale. Thi s 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. Payphone revenues are included with local service revenues in this table. Revenues from calls that both originate and terminate in foreign points are reported as end- user revenues, and are included in this table through 2003, but are not included in the universal service contribution base. Preliminary 2004 data are based on FCC Form 499- Q quarterly filings. 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 reven ue by type of service. Therefore, revenue totals by service type for 2004 are based on type of filer rather than on data filed by service . 1 - 13 26 Table 1.2 Telecommunications Industry Revenues by Servic e (Dollar Amounts Shown in Millions ) Universal Service FCC Form 499- A Data & TRS Data 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Local Exchange $40,176$ 42,245$ 45,194$ 48,717$ 53,771$ 59,245$ 64,940$ 69,947$ 72,346$ 71,320$ 70,606 Pay Tele phone 1 /2,1822,5362,2181,9321,5851,1921,063 Local Private Line 2 /1,0881,1381,2261,6168,28210,40312,91416,86421,96623,07022,415 Other Local 3 /8,0028,30210,42810,5432,8472,1792,5013,2493,3913,4183,242 Subscriber Line Char ges 2/ 8,32711,05210,82611,56312,12712,75812,136 Access 2 /30,83232,75933,91135,64121,42318,44918,10517,01715,09613,95512,972 1032605751,3011,4101,783 595595 Total Local Service 80,09884,44390,75996,51697,426104,563111,764121,147127,812127,123124,216 Wireless Service 10,23714,29318,75926,04932,76036,24048,11761,50574,00680,67888,023 3453794956818421,696 189189 Total Wireless Service 10,23714,29318,75926,04932,95036,77548,49562,00074,68781,52189,718 Operator 1/ 10,77210,53911,17010,97512,00212,20510,04911,40610,3897,9026,567 Non- Operator Switched Toll 60,59161,46865,21773,75172,05974,16878,38975,18365,32554,47550,178 Long Distance Private Line 8,0679,0439,71910,66510,50411,95213,16916,18916,40215,10815,316 Other Long Distance 3,0953,4283,5234,2994,6953,3863,6563,3723,2592,4452,222 1,8102,9833,4673,9273,7672,905 1,5321,532 Total Toll Service 82,52584,47889,62999,691100,793105,055108,246109,61599,30183,69777,188 Total Telecommunications 3/ 165,342174,890190,076211,782231,168246,392268,505292,762301,799292,341291,122 Non- Telecommunications 3/ 7,5188,3249,07110,47425,63327,94433,14442,26148,03660,40665,186 Total Reported Revenues 172,860183,214199,147222,256256,801272,019301,648335,023349,835352,747356,308 Service Reported as: Intrastate 3/ 96,927102,603112,923127,849133,654142,108157,212173,018183,195180,585175,714 Interstate and International 75,93380,61186,22494,40797,514104,284111,293119,745118,605111,756115,409 Total Telecommunications 3 /$ 172,860$ 183,214$ 199,147$ 222,256$ 231,168$ 246,392$ 268,505$ 292,762$ 301,799$ 292,341$ 291,123 TRS Data Universal Service Surcharges on Local Service Bills 4 / Additional Revenues from TRS Worksheets Universal Service Surcharges on Wireless Service Bills 4 / Additional Revenues from TRS Worksheets Universal Service Surcharges on Toll Service Bills 4 / Additional Revenues from TRS Worksheets See notes on next page. 1 - 14 27 4 /Charges on end- user bills identified as recovering state or federal universal service contributions are reported separately fr om 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 (March 2005). Data for 1993 through 1996 summarized from FCC Form 431 TRS Worksheets. Data for 1997 and 1998 primarily based on FCC Form 457 Universal Service Worksheets. Starting in 1999, data summarized from FCC Form 499- A Telecommunications Reporting Worksheets, which replaced both FCC Form 431 and FCC Form 457. 2 /TRS Worksheet filers generally reported special access revenues as access revenues. Reporting changes implemented with the Universal Service Worksheet explain the increase in local private line revenues and the fall in access revenues shown for 1997. TRS Worksheet filers included subscriber line charges with other access charges. For the years 1993 - 1996, these revenues have be en disaggregated by assuming that the end- user access revenues in Table 4.2 of Statistics of Communications Common Carriers represents 93% of industry total subscriber line charge revenues. Universal Service Worksheet filers report subscriber line ch arges in a separate category. The increase from 1997 to 1998 represents PICC charges levied by ILECs as well as $1.2 billion of PICC pa ss-through charges levied by toll carriers. 3/ Significant amounts of enhanced services, billing and collection, CPE and other non- telecommunications revenues were reported in the TRS mobile and other local service categories through 1996. Universal Service Worksheet filers report these revenues in th e non-telecommunications category. For prior years, the amounts of non- telecommunications revenues reported as mobile and other loca l revenues were estimated as 70% of the amounts that Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (currently account 5200 + account 5280) and 10% of amounts reported as mobile service revenue. Note: Detail may not add to totals due to rounding. Some data for prior years have been revised. TRS filers generally reported pay telephone revenues as local service revenues, access revenues or operator toll revenues. The Universal Service and FCC Form 499- A worksheets contain a separate category for payphone coin revenues. Starting in 1997, payphone revenues include payphone compensation received from toll carriers. 1 / Notes for Table 1.2 1 - 15 28 Table 1.3 Telecommunications Revenues Reported by Type of Carrier (Dollar Amounts Shown in Millions) TRS Worksheet Data Universal Service FCC Form 499- A Data & TRS Data Service Provider Category 1 /1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Incumbent Local Exchange Carriers 2 /$ 95,228 $98,431 $102,820 $107,905 $105,154 $108,234 $112,216 $116,158 $117,885 $114,990 $109,480 Competitive Access Providers (CAPs) and Competitive Local Exchange Carriers (CLECs) 191 281 623 1,011 1,919 3,348 5,652 9,814 12,998 13,043 15,509 Local Resellers 206 410 511 879 1,393 1,538 721 Other Local Exchange Carriers 157 36 171 11 329 406 338 Private Carriers 112 147 87 39 15 281 267 Shared- Tenant Service Providers 87 93 87 202 46 42 22 Competitors of ILECs 191 281 623 1,011 2,481 4,034 6,508 10,945 14,781 15,309 16,857 Fixed Local Service Providers 95,595 99,011 103,792 109,273 107,634 112,268 118,725 127,103 132,666 130,300 126,337 Payphone Providers 175 300 349 357 933 1,101 1,213 972 836 641 523 Wireless Telephony Including Cellular, 9,215 13,259 17,208 23,778 29,944 33,139 46,513 59,823 71,887 78,568 88,168 Personal Communications Service (PCS) and SMR Telephony Carriers 2 / Paging & Messaging Service 2 /2,861 3,161 3,232 3,102 2,197 1,473 1,007 Specialized Mobile Radio (SMR) 186 191 206 33 Dispatch Wireless Data Service Providers 63 36 214 Other Mobile Service Providers 964 938 1,419 2,121 225 731 159 128 110 220 135 Wireless Service Providers 10,179 14,197 18,627 25,900 33,030 37,032 50,152 63,280 74,596 80,467 89,342 Interexchange Carriers (IXCs) 61,118 66,381 70,938 79,057 79,080 83,443 87,570 87,311 81,272 68,146 61,246 Operator Service Providers (OSPs) 695 536 500 461 603 590 337 635 611 554 567 Prepaid Calling Card Providers 16 238 519 888 866 727 133 460 812 Satellite Service Providers 1,011 475 280 336 373 406 663 Toll Resellers 1,869 2,840 4,220 6,564 8,010 9,885 9,211 10,641 8,797 9,279 9,294 Other Toll Carriers 711 709 773 577 348 710 150 1,758 2,516 2,089 2,339 Toll Service Providers 64,393 70,466 76,447 86,896 89,570 95,992 98,414 101,407 93,702 80,934 74,920 Non- Telecommunications Revenues in Prior Year Data 2 /( 7,518) (8,324) (9,071) (10,474) 2,693 (461) 280 187 0 0 0 0 0 0 0 291,123 Total Telecommunications Revenues $165,342 $174,890 $190,076 $211,782 $231,168 $246,392 $268,505 $292,762 $301,799 $292,341 $292,341 1 / 2 / 3 / Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2005). Other Adjustments 3 / Filers are asked to select for themselves a service provider category that best describes their operations. The choices have c hanged over the years. For example, most satellite service providers identified themselves as other toll carriers in their 1997 FCC Form 431 TRS works heets because there was no separate category for satellite service providers. Significant amounts of enhanced service, billing and collection, CPE and other non- telecommunications revenues were reported on TRS worksheets by incumbent local exchange carriers (ILECs) and wireless carriers through 1996. Universal Service Worksheet filers report these revenues in the non-telecommunications category. For prior years, the amounts of non- telecommunications revenues reported as mobile and other loc al revenues were estimated as 70% of the amounts that Tier 1 ILECs reported in ARMIS as miscellaneous and nonregulated revenues (currently accou nt 5200 + account 5280) and 10% of amounts re ported as mobile service revenues. Other adjustments include some amounts withheld to preserve confidentiality and revisions made after the initial publication of the data. 1 - 16 29 Table 1.4 Contribution Base Revenues By Program 1 /: 2003 (Dollar Amounts Shown in Millions) 2003 Revenues subject to universal service contribution Interstate and international end- user revenues $79,822 lessrevenues for international - to - international services 1,148 lessinternational revenues of subject filers that were excluded because interstate toll represented less than 12% of combined interstate and international revenues 2/ 1,573 lessinterstate and other international revenues for 1,903 filers who are de minimis or otherwise exempt from universal service support requirements 59 equals$ 77,042 Revenues subject to TRS contribution Interstate and international end- user revenues $79,822 lessinterstate and international revenues for 317 filers who claim to be exempt from interstate telecommunications relay service (TRS) contribution re quirements320 lessinterstate and international revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service su pport mechanisms 186 equals$ 79,316 Revenues subject to NANPA contribution Total telecommunications service end- user revenues (including intrastate, interstate and international) $270,711 lesstelecommunications revenues for 520 filers who claim to be exempt from North American Numbering Plan Administration (NANPA) contribution re quirements917 lesstelecommunications revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service support mechanisms 230 equals$ 269,564 Revenues subject to LNP contribution Total telecommunications service end- user revenues (including intrastate, interstate and international) $270,711 lesstelecommunications revenues for 506 filers who claim to be exempt from local number portability administration (LNP) contribution re quirements958 lesstelecommunications revenues for services provided for resale but reported as end user because it was provided to carriers that do not contribute to universal service su pport mechanisms 230 equals$ 269,523 1/ 2/ This table shows how contribution bases differ for different programs and provides relative magnitudes, but does not provide th e actual amounts used for determining contribution amounts. Amounts shown represent the amounts contained in the FCC Form 499- A database as of October 1, 2004. The universal service administrator continues to receive additional and corrected filing s. Exempt amounts were based on revenues and the filer certification statement contained receive additional and corrected filings. Exempt amounts were based on revenues and the filer certification statement contained in the FCC Form 499- A filings. The fund administrators use carrier type, revenue type and additional information requested from filers to review exemption claims (and in some instances, failure to make claims.) The universal service fund administrator bills delinquent filers based on estimated revenues and ma y, in some instances , include estimated revenue amounts in contribution base amounts. Note also that universal service contribution factors are set quarterly based on different amounts than those shown. Note also that 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. Also note that 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 slightly different amounts t han those shown. International revenues are excluded from the contribution base if the total of amount of interstate revenues for the filing ent ity consolidated with all affiliates is less than 12% of the total of interstate and international revenues for the filing entity c onsolidated 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). Source: Industry Analysis and Technology Division, Wireline Competition Bureau, Telecommunications Industry Revenues (March 2005). 1 - 17 30 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1 /: 2003 (Dollar Amounts Shown in Millions) Data from FCC Form 499- AOther Incumbent Local Exchange Carriers Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 303Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs a Provided as unbundled network elements $3,288 $470 $3,759 $116 $15 * $131 b Provided under other arrangements 919 226 1,145 112 90 * 202 Total Line 303 4,207 697 4,904 228 105 * 333 304Per- minute charges for originating or terminating calls a Provided under state or federal access tariff 2,887 2,139 5,026 2,559 1,119 3 3,681 b Provided as unbundled network elements or other contract arrangement 1,246 841 2,087 69 23 * 93 Total Line 304 4,133 2,980 7,113 2,628 1,142 3 3,773 305Local private line & special access 686 9,480 10,166 275 1,117 * 1,392 306Payphone compensation from toll carriers 68 71 139 7 10 * 17 307Other local telecommunications service revenues 1,334 330 1,664 25 3 27 308Universal service support revenue received from 621 886 1,507 592 1,733 * 2,325 federal or state sources Total fixed local service provided for resale 11,048 14,444 25,492 3,753 4,111 4 7,867 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309Monthly, activation, and message charges except toll 49 19 68 11 4 * 14 Total mobile service provided for resale 49 19 68 11 4 * 14 Toll service 310Operator and toll calls with alternative billing * * 1 * 1 arrangements (credit card, collect, international call- back, etc.) 311Ordinary long distance (MTS, customer toll- free 253 * 253 8 3 * 11 800/ 888/ 877/ 866 service, "10- 10 calls", associated monthly account maintenance, PICC pass- through, and other switched services not reported above) 312Long distance private line services 18 5 23 7 6 13 313Satellite services 314All other long distance services 1 1 2 7 2 9 Total toll service provided for resale 272 6 279 23 11 * 34 Total service provided for resale (carrier's carrier) $11,370 $14,469 $25,839 $3,787 $4,125 $4 $7,916 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 (March 2005). Incumbent Local Exchange Carriers Regional Bell Operating Company 1 - 18 31 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1 /: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- ACLECS and Other Payphone Providers Fixed Local Competitors Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 303Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs a Provided as unbundled network elements $115 $182 $3 $300 * * b Provided under other arrangements 96 11 106 Total Line 303 211 192 3 406 * * 304Per- minute charges for originating or terminating calls a Provided under state or federal access tariff 609 616 8 1,232 b Provided as unbundled network elements or other contract arrangement 427 214 * 641 Total Line 304 1,036 830 8 1,874 305Local private line & special access 579 375 1 954 1 * * 1 306Payphone compensation from toll carriers 2 4 * 6 66 44 1 111 307Other local telecommunications service revenues 112 217 329 1 * * 1 308Universal service support revenue received from 11 5 15 * * * * federal or state sources Total fixed local service provided for resale 1,950 1,623 12 3,584 67 44 1 112 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309Monthly, activation, and message charges except toll 1 * 1 Total mobile service provided for resale 1 * 1 Toll service 310Operator and toll calls with alternative billing 27 * * 27 1 * * 1 arrangements (credit card, collect, international call- back, etc.) 311Ordinary long distance (MTS, customer toll- free 104 102 72 278 * * * * 800/ 888/ 877/ 866 service, "10- 10 calls", associated monthly account maintenance, PICC pass- through, and other switched services not reported above) 312Long distance private line services 144 383 50 577 313Satellite services 314All other long distance services 14 17 2 33 * * * Total toll service provided for resale 289 502 124 915 1 * * 1 Total service provided for resale (carrier's carrier) $2,239 $2,125 $136 $4,500 $69 $44 $1 $114 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 (March 2005). 1 - 19 32 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1 /: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- ACellular, PCS and SMR Wireless Other Wireless Telephony Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 303Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs a Provided as unbundled network elements $1 $1 b Provided under other arrangements 1.3 0.5 * 1.8 Total Line 303 2 1 * 3 304Per- minute charges for originating or terminating calls a Provided under state or federal access tariff 1 1 * 2 b Provided as unbundled network elements or other contract arrangement 40 5 * 45 1 * 1 Total Line 304 40 6 * 46 1 * 1 305Local private line & special access 22 * 23 306Payphone compensation from toll carriers * * * * * * 307Other local telecommunications service revenues 1 * 1 308Universal service support revenue received from 50 51 * 101 federal or state sources Total fixed local service provided for resale 115 59 * 173 1 * 1 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309Monthly, activation, and message charges except toll 3,024 1,107 11 4,142 131 18 * 149 Total mobile service provided for resale 3,024 1,107 11 4,142 131 18 * 149 Toll service 310Operator and toll calls with alternative billing 1 * 1 arrangements (credit card, collect, international call- back, etc.) 311Ordinary long distance (MTS, customer toll- free 323 131 1 455 1 * 1 800/ 888/ 877/ 866 service, "10- 10 calls", associated monthly account maintenance, PICC pass- through, and other switched services not reported above) 312Long distance private line services * * * 1 313Satellite services 1 1 2 2 2 6 314All other long distance services 2 1 2 Total toll service provided for resale 325 133 2 459 3 2 2 7 Total service provided for resale (carrier's carrier) $3,463 $1,298 $13 $4,775 $135 $20 $2 $157 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 (March 2005). 1 - 20 33 Table 1.5 Revenues from Telecommunications Service Provided for Resale 1 /: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- AToll Carriers Total All Filers Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 303Monthly service, local calling, connection charges, vertical features, and other local exchange service including subscriber line and PICC charges to IXCs a Provided as unbundled network elements $43 $11 $1 $54 $3,563 $678 $4 $4,245 b Provided under other arrangements 23 8 32 1,151 336 * 1,487 Total Line 303 66 19 1 86 4,714 1,014 4 5,731 304Per- minute charges for originating or terminating calls a Provided under state or federal access tariff 29 27 3 58 6,083 3,902 14 9,999 b Provided as unbundled network elements or other contract arrangement 67 38 1 106 1,850 1,122 1 2,973 Total Line 304 96 65 4 165 7,933 5,024 15 12,972 305Local private line & special access 123 68 1 192 1,685 11,040 2 12,726 306Payphone compensation from toll carriers 6 14 1 20 148 144 2 293 307Other local telecommunications service revenues 23 1 23 1,495 550 * 2,045 308Universal service support revenue received from 25 1 * 26 1,298 2,676 * 3,974 federal or state sources Total fixed local service provided for resale 339 167 6 512 17,273 20,446 22 37,742 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 309Monthly, activation, and message charges except toll 65 25 90 3,280 1,173 11 4,465 Total mobile service provided for resale 65 25 90 3,280 1,173 11 4,465 Toll service 310Operator and toll calls with alternative billing 97 299 1,341 1,736 125 299 1,341 1,766 arrangements (credit card, collect, international call- back, etc.) 311Ordinary long distance (MTS, customer toll- free 2,339 4,755 3,792 10,885 3,028 4,993 3,865 11,885 800/ 888/ 877/ 866 service, "10- 10 calls", associated monthly account maintenance, PICC pass- through, and other switched services not reported above) 312Long distance private line services 809 2,362 248 3,419 979 2,756 298 4,032 313Satellite services * 73 120 193 2 75 122 199 314All other long distance services 113 107 57 277 137 127 58 323 Total toll service provided for resale 3,358 7,595 5,557 16,510 4,271 8,249 5,685 18,205 Total service provided for resale (carrier's carrier) $3,762 $7,787 $5,563 $17,112 $24,825 $29,869 $5,718 $60,412 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 (March 2005). 1 - 21 34 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2003 (Dollar Amounts Shown in Millions) Data from FCC Form 499- AOther Incumbent Local Exchange Carriers Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 404Monthly service, local calling, connection charges, $42,516 $406 $42,922 $7,338 $14 * $7,351 vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405PICC charges levied by a local exchange carrier 230 8,873 9,103 62 1,890 1 1,954 on a no- PIC customer and tariffed subscriber line charges Total local exchange (Line 404 + Line 405) 42,746 9,279 52,024 7,400 1,904 1 9,305 406Local private line and special access service 2,651 3,504 6,155 345 346 * 691 407Payphone coin revenues 341 15 355 24 * * 25 408Other local telecommunications service revenues 771 6 777 81 3 * 85 Line 403 surcharges on fixed local service 1/ 178 1,070 1,248 25 185 210 Total fixed local service provided to end users 46,686 13,873 60,559 7,875 2,439 1 10,315 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409Monthly and activation charges 172 1 173 47 8 55 410Message charges including roaming, but excluding 89 8 97 16 4 20 toll charges Line 403 surcharges on mobile service 1/ 1 1 2 * 1 1 Total mobile service provided to end users 262 10 272 62 13 76 Toll service 411Prepaid calling card (including card sales to 2 * 2 * * * customers and non- carrier distributors) reported at face value of cards 412International calls that both originate and terminate in foreign points 413Operator and toll calls with alternative billing 129 2 130 7 1 * 8 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414Ordinary long distance (MTS, customer toll- free 2,788 73 2,861 290 39 1 330 800/ 888/ 877/ 866 service, "10- 10" calls, associated m o account maintenance, PICC pass- through, and other switched services not reported above) 415Long distance private line services 1,022 1 1,022 76 5 * 81 416Satellite services * * 417All other long distance services 41 * 42 8 1 * 10 Line 403 surcharges on toll service 1/ 7 7 13 1 3 * 4 Total toll service provided to end users 3,988 82 4,070 383 49 1 433 Total telecommunications service provided to $50,936 $13,965 $64,901 $8,320 $2,502 $2 $10,824 end users 422Uncollectible revenue/ bad debt expense associated 1,077 187 1,263 107 21 * 128 with end user revenues other than Line 412 423Net universal service contribution base revenues 49,859 13,779 63,638 8,214 2,481 2 10,697 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 contributions. Source: Industr y Anal ysis and Technolo gy Division, Wireline Com petition Bureau, Telecommunications Industry Revenues (March 2005 ). Regional Bell Operating Company Incumbent Local Exchange Carriers 1 - 22 35 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- ACLECS and Other Payphone Providers Fixed Local Competitors Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 404Monthly service, local calling, connection charges, $5,842 $184 $12 $6,038 * * vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405PICC charges levied by a local exchange carrier 9 768 * 777 * * * on a no- PIC customer and tariffed subscriber line charges Total local exchange (Line 404 + Line 405) 5,851 952 12 6,815 * * * 406Local private line and special access service 898 1,517 * 2,415 3 * * 3 407Payphone coin revenues 18 13 * 31 307 14 * 322 408Other local telecommunications service revenues 262 5 * 267 * * * * Line 403 surcharges on fixed local service 1/ 30 173 1 205 * * * Total fixed local service provided to end users 7,058 2,660 14 9,732 310 14 * 325 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409Monthly and activation charges 8 1 * 10 410Message charges including roaming, but excluding 1 * * 2 toll charges Line 403 surcharges on mobile service 1/ * * * * Total mobile service provided to end users 10 2 * 11 Toll service 411Prepaid calling card (including card sales to 1 2 21 24 * * * * customers and non- carrier distributors) reported at face value of cards 412International calls that both originate and terminate in * * foreign points 413Operator and toll calls with alternative billing 40 25 2 67 69 14 * 83 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414Ordinary long distance (MTS, customer toll- free 783 830 207 1,819 * * * * 800/ 888/ 877/ 866 service, "10- 10" calls, associated m o account maintenance, PICC pass- through, and other switched services not reported above) 415Long distance private line services 184 305 23 512 416Satellite services 14 11 * 25 417All other long distance services 37 20 7 64 Line 403 surcharges on toll service 1/ 5 94 3 102 * * * Total toll service provided to end users 1,064 1,286 263 2,614 70 14 * 84 Total telecommunications service provided to $8,132 $3,948 $277 $12,357 $380 $28 $1 $409 end users 422Uncollectible revenue/ bad debt expense associated 226 95 10 330 4 1 * 5 with end user revenues other than Line 412 423Net universal service contribution base revenues 7,906 3,854 267 12,027 376 27 1 404 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 contributions. Source: Industr y Anal ysis and Technolo gy Division, Wireline Com petition Bureau, Telecommunications Industry Revenues (March 2005 ). 1 - 23 36 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- ACellular, PCS and SMR Wireless Other Wireless Telephony Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 404Monthly service, local calling, connection charges, $51 $1 * $52 $8 * * $8 vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405PICC charges levied by a local exchange carrier 4 4 1 1 on a no- PIC customer and tariffed subscriber line charges Total local exchange (Line 404 + Line 405) 51 5 * 57 8 1 * 9 406Local private line and special access service 14 * 14 18 * 18 407Payphone coin revenues * * * * * * 408Other local telecommunications service revenues 3 3 10 1 11 Line 403 surcharges on fixed local service 1/ * * * 1 * * * Total fixed local service provided to end users 68 6 * 74 37 2 * 39 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409Monthly and activation charges 39,067 10,314 160 49,541 750 94 * 844 410Message charges including roaming, but excluding 24,133 7,067 43 31,242 54 34 1 89 toll charges Line 403 surcharges on mobile service 1/ 227 1,416 1 1,644 2 15 * 17 Total mobile service provided to end users 63,427 18,797 203 82,427 806 143 1 951 Toll service 411Prepaid calling card (including card sales to 6 2 1 9 * * * * customers and non- carrier distributors) reported at face value of cards 412International calls that both originate and terminate in * * 1 1 foreign points 413Operator and toll calls with alternative billing 18 5 * 23 * * * arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414Ordinary long distance (MTS, customer toll- free 599 201 13 813 10 6 * 16 800/ 888/ 877/ 866 service, "10- 10" calls, associated m o account maintenance, PICC pass- through, and other switched services not reported above) 415Long distance private line services 2 1 * 3 * 1 1 416Satellite services * * * * 3 5 * 9 417All other long distance services 3 17 2 22 * * * * Line 403 surcharges on toll service 1/ 2 19 * 21 * 1 * 1 Total toll service provided to end users 631 244 17 892 14 14 2 29 Total telecommunications service provided to $64,125 $19,047 $220 $83,393 $856 $159 $3 $1,018 end users 422Uncollectible revenue/ bad debt expense associated 1,527 412 4 1,944 12 3 * 15 with end user revenues other than Line 412 423Net universal service contribution base revenues 62,598 18,635 216 81,449 844 156 2 1,002 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 contributions. Source: Industr y Anal ysis and Technolo gy Division, Wireline Com petition Bureau, Telecommunications Industry Revenues (March 2005 ). 1 - 24 37 Table 1.6 Revenues from Telecommunications Service Provided to End Users: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- AToll Carriers Total All Filers Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service 404Monthly service, local calling, connection charges, $4,127 $389 $13 $4,528 $59,882 $994 $24 $60,900 vertical features, and other local exchange service charges except for federally tariffed subscriber line charges and PICC charges 405PICC charges levied by a local exchange carrier 1 297 * 297 301 11,833 1 12,136 on a no- PIC customer and tariffed subscriber line charges Total local exchange (Line 404 + Line 405) 4,127 686 13 4,826 60,183 12,827 26 73,036 406Local private line and special access service 114 276 4 393 4,042 5,643 4 9,689 407Payphone coin revenues 20 17 1 38 710 59 2 770 408Other local telecommunications service revenues 25 28 * 54 1,153 44 * 1,197 Line 403 surcharges on fixed local service 1/ 14 105 1 119 248 1,533 2 1,783 Total fixed local service provided to end users 4,300 1,111 18 5,430 66,335 20,106 33 86,474 Mobile service (including wireless telephony, paging & messaging, and other mobile services) 409Monthly and activation charges 858 268 39 1,164 40,902 10,687 199 51,787 410Message charges including roaming, but excluding 239 82 1 322 24,532 7,195 44 31,771 toll charges Line 403 surcharges on mobile service 1/ 1 30 * 32 232 1,463 1 1,696 Total mobile service provided to end users 1,098 380 40 1,517 65,666 19,344 244 85,254 Toll service 411Prepaid calling card (including card sales to 59 121 658 838 69 124 681 874 customers and non- carrier distributors) reported at face value of cards 412International calls that both originate and terminate in 1,146 1,146 1,148 1,148 foreign points 413Operator and toll calls with alternative billing 813 1,046 608 2,467 1,076 1,093 610 2,779 arrangements (credit card, collect, international call- back, etc.) other than revenues reported on Line 412 414Ordinary long distance (MTS, customer toll- free 9,773 17,322 5,359 32,454 14,243 18,470 5,580 38,293 800/ 888/ 877/ 866 service, "10- 10" calls, associated m o account maintenance, PICC pass- through, and other switched services not reported above) 415Long distance private line services 1,512 6,766 1,387 9,664 2,796 7,078 1,410 11,284 416Satellite services 7 98 135 240 25 115 135 274 417All other long distance services 531 603 155 1,289 620 642 164 1,426 Line 403 surcharges on toll service 1/ 45 2,607 111 2,763 60 2,731 114 2,905 Total toll service provided to end users 12,740 28,563 9,559 50,861 18,889 30,252 9,842 58,983 Total telecommunications service provided to $18,139 $30,053 $9,617 $57,809 $150,889 $69,702 $10,120 $230,711 end users 422Uncollectible revenue/ bad debt expense associated 699 997 319 2,015 3,651 1,715 332 5,699 with end user revenues other than Line 412 423Net universal service contribution base revenues 17,440 29,056 8,152 54,648 147,238 67,987 8,639 223,864 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 contributions. Source: Industr y Anal ysis and Technolo gy Division, Wireline Com petition Bureau, Telecommunications Industry Revenues (March 2005 ). 1 - 25 38 Table 1.7 Total Revenues: 2003 (Dollar Amounts Shown in Millions) Data from FCC Form 499- AOther Incumbent Local Exchange Carriers Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service other than payphone $57,327 $28,231 $85,558 $11,598 $6,539 $5 $18,141 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone408 86 494 31 11 * 42 [Lines 306 and 407] Mobile service 312 29 341 73 17 * 90 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 4,260 88 4,348 406 61 1 467 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 62,306 28,434 90,740 12,107 6,627 6 18,740 Total telecommunications service provided for resale 11,370 14,469 25,839 3,787 4,125 4 7,916 (from Table 1.5) Total telecommunications service provided to 50,936 13,965 64,901 8,320 2,502 2 10,824 end users (from Table 1.6) Total telecommunications service revenues 62,306 28,434 90,740 12,107 6,627 6 18,740 418Enhanced services, inside wiring maintenance, billing - - - - - - - - - 11,012 - - - - - - - - - 2,741 and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non- telecommunications service revenues 419Gross billed revenues from all sources - - - - - - - - - $101,752 - - - - - - - - - $21,481 421Uncollectible revenue/ bad debt expense associated $1,593 $207 with gross billed revenues Total collected revenuesfrom all sources $100,159 $21,274 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 (March 2005). Incumbent Local Exchange Carriers Regional Bell Operating Company 1 - 26 39 Table 1.7 Total Revenues: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- ACLECS and Other Payphone Providers Fixed Local Competitors Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service other than payphone $8,989$ 4,265$ 25$ 13,279$ 5 * * $5 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone1917 * 37373581433 [Lines 306 and 407] Mobile service 112 * 12 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 1,3531,7883883,5297114 * 85 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 10,3716,07341316,857449722523 Total telecommunications service provided for resale 2,2392,1251364,50069441114 (from Table 1.5) Total telecommunications service provided to 8,1323,94827712,357380281409 end users (from Table 1.6) Total telecommunications service revenues 10,3716,07341316,857449722523 418Enhanced services, inside wiring maintenance, billing - - - - - - - - - 10,095 - - - - - - - - - 31 and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non- telecommunications service revenues 419Gross billed revenues from all sources - - - - - - - - - $26,952 - - - - - - - - - $554 421Uncollectible revenue/ bad debt expense associated $594$ 5 with gross billed revenues Total collected revenuesfrom all sources $26,358$ 548 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 (March 2005). 1 - 27 40 Table 1.7 Total Revenues: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- ACellular, PCS and SMR Wireless Other Wireless Telephony Line IntrastateInterstateInternationalTotalIntrastateInterstateInternationalTotal Fixed local service other than payphone $182$ 65 * $247 $37$ 2 * $40 [Lines 303, 304, 305, 307, 308, 404, 405, 406, 408, and a portion of 403 1/] Payphone * * * * * * [Lines 306 and 407] Mobile service 66,45119,90421486,569 93716111,099 [Lines 309, 409, 410, and a portion of 403 1/] Toll service 956377191,351 171643 6 [Lines 310, 311, 312, 313, 314, 411, 412, 413, 414, 415, 416, 417, and a portion of 403 1/] Total telecommunications service revenues 67,58920,34623388,168 99117951,175 Total telecommunications service provided for resale 3,4631,298134,775 13520$ 2157 (from Table 1.5) Total telecommunications service provided to 64,12519,04722083,393 85615931,018 end users (from Table 1.6) Total telecommunications service revenues 67,58920,34623388,168 99117951,175 418Enhanced services, inside wiring maintenance, billing - - - - - - - - - 18,801 - - - - - - - - - 1,680 and collection, customer premises equipment, published directory, dark fiber, Internet access, cable TV program transmission, and non- telecommunications service revenues 419Gross billed revenues from all sources - - - - - - - - - $106,969 - - - - - - - - - $2,854 421Uncollectible revenue/ bad debt expense associated $2,284 $23 with gross billed revenues Total collected revenuesfrom all sources $104,685 $2,831 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 (March 2005). 1 - 28 41 Table 1.7 Total Revenues: 2003 Continued (Dollar Amounts Shown in Millions) Data from FCC Form 499- AToll Carriers Total All Filers