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Trends in Telephone Service Trends in Telephone Service Industry Analysis and Technology Division Wireline Competition Bureau August 2008 This report is available for reference in the FCC’s Information Center at 445 12th Street, S.W., Courtyard Level. Copies may be purchased by calling Best Copy and Printing, Inc., Portals II, 445 12th Street S.W., Room CY-B402, Washington DC 20554 at 800-378-3160, facsimile 202-488-5563, or via e-mail [email protected]. The report can also be downloaded from the Wireline Competition Bureau Statistical Reports Internet site at: www.fcc.gov/wcb/iatd/trends.html. Table of Contents Introduction……………………………………….……………………………………………… 1-1 Access Charges…………………………………………………………………………………… 1-1 Table 1.1 Interstate Per-Line Access Charges……………………………………………………… 1-3 Table 1.2 Interstate Per-Minute Access Charges…………………………………………………… 1-4 Table 1.3 Interstate Per-Line Access Charges by Carrier…………...……………………………… 1-5 Table 1.4 Interstate Per-Minute Access Charges by Carrier……………………………… ……… 1-6 Advanced Telecommunications…………………………………………………………………… 2-1 Table 2.1 High-Speed Lines………………………………………………………………………… 2-3 Chart 2.1 Total High-Speed Lines…………………………………………………………………… 2-3 Chart 2.2 High-Speed Lines by Technology………………………………………………………… 2-3 Table 2.2 Advanced Services Lines………………………………………………………………… 2-4 Chart 2.3 Advanced Services Lines………………………………………………………………… 2-4 Chart 2.4 Advanced Services Lines by Technology………………………………………………… 2-4 Table 2.3 Residential High-Speed Lines…………………………………………………………… 2-5 Chart 2.5 Residential High-Speed Lines…………………………………………………………… 2-5 Chart 2.6 Residential High-Speed Lines by Technology…………………………………………… 2-5 Table 2.4 Residential Advanced Services Lines…………………………………………………… 2-6 Chart 2.7 Residential Advanced Services Lines…………………………………………………… 2-6 Chart 2.8 Residential Advanced Services Lines by Technology…………………………………… 2-6 Table 2.5 High-Speed Lines by Information Transfer Rates……………………………………… 2-7 Chart 2.9 High-Speed Lines by Information Transfer Rates in the Faster Directions……………… 2-7 Table 2.6 High-Speed Lines by Technology………………………………………………………… 2-9 Table 2.7 High-Speed Lines by State……………………………………………………………… 2-10 Table 2.8 Percentage of Residential End-User Premises with Access to High-Speed Services…… 2-11 Chart 2.10 Percentage of U.S. Households with Computers, Internet Access, and High-Speed Access…………………………………………………………………….. 2-12 Table 2.9 Percent of U.S. Households with Internet Connections: Rural vs Urban………………… 2-13 Chart 2.11 Percent of U.S. Households with Internet Connections: Rural vs Urban………………… 2-13 Consumer Expenditures…………………………………………………………………………… 3-1 Table 3.1 Household Expenditures for Telephone Service………………………………………… 3-3 Table 3.2 Average Monthly Household Telecommunications Expenditures by Type of Provider………………………………………………………………………… 3-4 Table 3.3 Personal Consumption Expenditures……………………………………………………. 3-5 Chart 3.1 Personal Consumption Expenditures for Telephone Service…………………………… 3-6 Chart 3.2 Monthly Personal Consumption Expenditures for Telephone Service per Household…… 3-6 i Earnings …………………………………………………………………………………………. 4-1 Table 4.1 Interstate Rate of Return Summary: Years 1998 through 2006 ………………………… 4-3 Employment and Labor Productivity …………………………………………………………. 5-1 Table 5.1 Average Number of Employees in the Telecommunications Industry ………………… 5-3 Chart 5.1 Average Number of Employees in the Telecommunications Industry ...………………… 5-3 Table 5.2 Labor Productivity Index for the Wired and Wireless Telecommunications Industry …………………………………………………………… 5-4 Chart 5.2 Wired and Wireless Telecommunications Carriers (NAICS 5171 and 5172) Labor Productivity Index ……………………………………. 5-4 Table 5.3 Number of Telecommunications Service Providers by Size of Business ……………… 5-5 International Telephone Service ………………………………………………………………… 6-1 Table 6.1 International Service from the United States …………………………………………… 6-3 Chart 6.1 Billed Revenues per Minute and per Call ……………………………………………… 6-3 Table 6.2 International Telephone Service Settlements …………………………………………… 6-4 Table 6.3 International Message Telephone Service for 2005 …………………………………… 6-5 Chart 6.2 U.S. Billed Minutes by Country for 2005 ……………………………………………… 6-5 Table 6.4 U.S. Billed Revenues of Facilities-Based and Facilities-Resale Carriers in 2005……… 6-6 Table 6.5 Top Providers of Pure Resale International MTS in 2005 ……………………………… 6-7 Lines ……………………………………………………………………………………………… 7-1 Table 7.1 Total U.S. Wireline Telephone Lines …………………………………………………… 7-3 Table 7.2 Telephone Loops of Incumbent Local Exchange Carriers by State ……………………… 7-4 Table 7.3 Telephone Loops of Incumbent Local Exchange Carriers by Holding Company ……… 7-5 Chart 7.1 Five Largest Holding Companies' Share of Loops ……………………………………… 7-5 Table 7.4 Additional Residential Lines for Households with Telephone Service ………………… 7-6 Table 7.5 Number of Payphones Owned by LECs and Independent Operators …………………… 7-7 Table 7.6 Number of Payphones Over Time ………………………………….…………………… 7-8 Local Telephone Competition …………………………………………………………………… 8-1 Table 8.1 End-User Switched Access Lines Reported …………………………….…..…………. 8-5 Chart 8.1 End-User Switched Access Lines Reported …………………………….…..…………. 8-5 Table 8.2 End-User Switched Access Lines by Customer Type …..……………….…..………… 8-6 Chart 8.2 Percent of Lines that Serve Residential Customers ……………………………………… 8-6 ii Table 8.3 Reporting Competitive Local Exchange Carriers ……………………………………… 8-7 Chart 8.3 Competitive Local Exchange Carriers' End-User Lines ……………………………… 8-7 Table 8.4 Reporting Incumbent Local Exchange Carriers ………………………………………… 8-8 Chart 8.4 ILEC Lines and the Percent Provided to Other Carriers ……………………………… 8-8 Table 8.5 End-User Switched Access Lines Served By Reporting Local Exchange Carriers …… 8-9 Table 8.6 Competitive Local Exchange Carriers Share of End-User Switched Access Lines …… 8-10 Table 8.7 Nationwide Local Service Revenues and New Competitors' Share …………………… 8-11 Chart 8.5 ILEC and New Local Competitor Share of Local Service Revenues ..………………… 8-11 Table 8.8 Telephone Number Porting Activity Since Wireless Pooling Started ………………… 8-13 Table 8.9 Telephone Numbers Remaining in the Porting Database at the End of Each Quarter … 8-14 Table 8.10 Numbers in the Porting Database by Quarter Most Recently Ported …………………… 8-15 Long Distance Telephone Industry………………………………………………………… 9-1 Table 9.1 Toll Revenues by Provider ……………………………………………………………. 9-5 Table 9.2 Intrastate, Interstate, and International Toll Revenues ………………………………… 9-7 Chart 9.1 Toll Revenues by Market Segment …………………………………………………… 9-7 Table 9.3 End-User Toll Revenues ……………………………………………………………… 9-8 Table 9.4 Number of Toll Service Providers ……………………………………………………… 9-9 Table 9.5 Residential Household Market Shares: 1995-2006 …………………………………… 9-10 Chart 9.2 Residential Household Market Shares: 2006 ………………………………………… 9-10 Table 9.6 Residential Household Market Shares by Region: 2006 ……………………………… 9-12 Chart 9.3 Residential Household Market Shares by Region: 2006 ……………………………… 9-12 Table 9.7 Regional Bell Operating Companies'Applications to Provide In-Region InterLATA Service ………………………………………………… 9-14 Minutes ……………………………………………………………………………………… 10-1 Table 10.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers ………… 10-3 Chart 10.1 Interstate Switched Access Minutes for Incumbent Local Exchange Carriers ………… 10-3 Table 10.2 Telephone Calls and Billed Access Minutes of Large ILECs Reporting to the Commission …………………..………………………………………………………. 10-4 Mobile Wireless Service ……………………………………………………………………. 11-1 Table 11.1 Measures of Mobile Wireless Telephone Subscribers……………………………………11-3 Chart 11.1 Mobile Wireless Telephone Subscribers ……………………………………………… 11-4 Table 11.2 Mobile Wireless Telephone Subscribers ……………………………………………… 11-5 Table 11.3 Mobile Wireless Telephone Service: Industry Survey Results ………………………… 11-6 Table 11.4 Distribution of Residential Wireless Calls and Minutes ……………………………… 11-7 Table 11.5 Duration of Residential Wireless Calls: 2006 ………………………………………… 11-8 Table 11.6 Distribution of Residential Intrastate Wireless Minutes by Day and Time: 2006 ………11-9 Table 11.7 Distribution of Residential Interstate Wireless Minutes by Day and Time: 2006 ………11-10 iii Price Indices for Telephone Services …………………………………………………………12-1 Table 12.1 Long-Term Changes for Various Price Indices (Annual Rates of Change) …………… 12-3 Chart 12.1 CPI All Items and CPI Telephone Services …………………………………………… 12-3 Table 12.2 Annual Changes in Major Price Indices ………………………………………………… 12-4 Chart 12.2 Percent Change in CPI All Items and CPI Telephone Services ………………………… 12-4 Table 12.3 Annual Changes in Price Indices for Local and Long Distance Telephone Services ……12-5 Chart 12.3 CPI Telephone Service Price Indices …………………………………………………… 12-5 Price Levels ……………………………………………………………………………………13-1 Table 13.1 Average Residential Rates for Local Service in Urban Areas: 1986 - 2007 …………… 13-3 Table 13.2 Average Local Rates for Businesses with a Single Line In Urban Areas: 1989 - 2007 … 13-4 Table 13.3 Average Rate for a Residential Access Line …………………………………………… 13-5 Table 13.4 Average Revenue Per Minute …………………………………………………………… 13-6 Chart 13.1 Revenue Per Minute for Interstate Calls ……………………………………………….. 13-7 Residential Wireline Usage ………………………………………………………………… 14-1 Table 14.1 Distribution of Residential Wireline Toll Calls and Minutes ..………………………… 14-3 Table 14.2 Average Residential Wireline Monthly Toll Minutes ……………………………………14-3 Table 14.3 Distribution of Residential Wireline Long Distance Call Durations: 2006 ….………… 14-4 Table 14.4 Duration
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