The FCC’s most recent report on the status of Local Telephone Competition provides interesting insights into the evolution of competition in the telecommunications industry. Not only does it tell us which segments are growing and which are declining, it also provides insight into the types of technologies used to serve different customers.
The information was compiled from FCC Form 477 data. The FCC Form 477 is filed twice a year. ILECs, CLECs, and mobile telephony providers have filed Form 477 for the last decade; interconnected VoIP providers have filed since 2008. The most recent report summarizes information collected as of June 30, 2012.
TMI’s Blog series will post “snapshots” of this report over the next three days. This first snapshot features highlights from Retail Local Telephone Service and Wireline Retail Local Telephone Service Connections by Technology, Regulatory Status, and Customer Type.
Retail Local Telephone Service Connections 2009 – 2012:
According to the FCC, Retail local telephone service customers are served by two wireline technologies (“end user” switched access lines and interconnected VoIP “subscriptions”) and mobile wireless subscriptions.
From 2009 – 2012, interconnected VoIP subscriptions increased at a compound annual growth rate of
18%, mobile telephony subscriptions increased at a compound annual growth rate of 5%, and retail switched access lines declined by 9% per year.
Of the 141 million wireline retail local telephone service connections (including both switched
access lines and interconnected VoIP subscriptions) in June 2012, 81 million (or 57%) were residential connections and 60 million (or 43%) were business connections.
Cross-classified by technology and customer type, the 141 million wireline retail local telephone
service connections in June 2012 were: 34% residential switched access lines, 38% business switched access lines, 23% residential interconnected VoIP subscriptions, and 5% business interconnected VoIP subscriptions.
Cross-classified by customer type and the service retailer’s regulatory status, the 141 million wireline retail local telephone service connections in June 2012 were: 36% ILEC residential service, 25% ILEC business service, 22% non-ILEC residential service, and 17% non-ILEC business service.
The 81 million wireline residential connections in June 2012 were: 55.5% ILEC switched access lines, 33.8% non-ILEC interconnected VoIP subscriptions, 4.3% non-ILEC switched access lines, and 6.4% ILEC interconnected VoIP subscriptions. Similarly, the 60 million wireline business connections were: 58.5% ILEC switched access lines, 30.6% non-ILEC switched access lines, 9.9% non-ILEC interconnected VoIP subscriptions, and 1.0% ILEC interconnected VoIP subscriptions.
Watch for Part 2 on Interconnected VoIP, scheduled for 6/20/13. Please contact me with any comments or questions.
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