Info: Switching Investment and Expense per Access Line Served

Purpose: This report provides a view over time for analog-switched lines and digital-switched lines, the average switching investment and expense per access line, and the ratios of expenses to investments. Results displayed are for those telephone companies required to file the ARMIS 43-03, i.e., Verizon, SBC, Qwest and BellSouth. Data for analog and digital switched lines are presented “side-by-side” to display growing and declining investment andexpense for the two types of technology. Data are available for several user-selectable levels of aggregation, and are displayed by year under the current corporate structures, for the most recent 10-year period.

Source: ARMIS 43-07, Table I, Rows 160 ASPC Lines Served, Column (a) Total Study Area, and 180 DSPC Lines Served, Column (a); ARMIS 43-03, Table I, Rows 2211 Analog Electronic Switching (investment), Column (b) Total, 2212 Digital Electronic Switching (investment), Column (b) Total, 6211 Analog Electronic (expense), Column (b) Total, and 6212 Digital Electronic (expense), Column (b).

Content:Results may be selected and displayed for the following aggregations:

· Large ILEC Region: AT&T, Qwest, and Verizon - results for each of these three companies (based on combined study areas for each of the three), plus the combined results of all three companies.

· Large ILEC Holding Company: Results for each of the eight large ILEC holding companies (BellSouth, Qwest, Southwestern Bell, Pacific Telesis, Southern New England, Ameritech, Verizon-Bell Atlantic, Verizon-GTE), plus the combined results of all eight holding companies.

· State: Results at the study area for AT&T, Qwest, and Verizon companies (as applicable) within the selected state, plus the combined results for all large LECs in that state.

Method:all investment and expense numbers from the ARMIS 43-03, and the 1991 through 1996 values in the 43-07, Table I, rows 160 and 180, are multiplied by 1000, prior to performing other operations, as described below. Also, where a company has not filed the 43-07 in one or more years, but did file the 43-03, the 43-03 data are excluded for those years from roll-up calculations. Finally, ARMIS Report data for companies who have not filed any ARMIS data more recently than the fifth year preceding the current year are not available in the system, i.e., if the last year in which a company filed ARMIS data is 2002 or earlier, then no ARMIS data for that company is in the system.

The analog investment per access line is calculated as follows: divide the value from the 43-03, Table I, row 2211, column (b), by the value from the 43-07, Table I, row 160, column (a). The digital investment per access line is calculated as follows: divide the value from the 43-03, Table I, row 2212, Column (b), by the value from the 43-07, Table I, row 180, column (a). Quotients are rounded to the nearest whole dollar.

The analog expense per access line is calculated as follows: divide the value from the 43-03, Table I, row 6211, column (b), by the value from the 43-07, Table I, row 160, column (a). The digital expense per access line is calculated as follows: divide the value from the 43-03, Table I, row 6212, column (b) by the value from the 43-07, Table I, row 180, column (a). Quotients are rounded to the nearest whole dollar.

The analog expense to investment ratio per access line is calculated as follows: from the 43-03, divide the value in Table I, row 6211, column (b), by the value in row 2211, column (b). The digital expense to investment ratio per access line is calculated as follows: from the 43-03, divide the value in Table I, row 6212, column (b) by the value from row 2212, column (b). Values are expressed in percent rounded to the nearest tenth.