United States ILEC Access Lines Fall 9.6% in 2008, to 128.4 Million; Total U.S. Lines Expected to Fall to 60.6 Million by 2018

    MANCHESTER, NH, July 17, 2009 /24-7PressRelease/ -- JSI Capital Advisors, LLC (JSICA), a specialized transaction advisory, valuation and research firm serving the rural and independent communications provider industry, has announced the release of Phone Lines 2009, the independent communications provider industry's most comprehensive summary of incumbent local exchange carriers (ILECs) ranked by access lines, access lines by state, and by parent company.

Phone Lines 2009 represents the ninth edition of JSICA's popular annual publication. This year's issue has been expanded to include JSICA's first-ever ten-year forecast of access line counts and voice industry market shares for the next decade. In addition to a comprehensive listing of the nation's nearly 1,200 ILECs, Phone Lines 2009 includes detailed projections for ILEC access lines and facilities-based competitive local exchange carrier (CLEC) access lines through 2018, broken down by residential and business users.

Also included are annual estimates of total U.S. voice access lines, expected annual line losses, growth in "wireless only" households, and growth in VoIP households. Subscriber projections are broken down by cable, telephone and wireless industry subscribers and penetration information is broken down by nine distinct age categories, as well as wireless voice versus wireless data subscribers.

"In formulating our industry projections, we took a detailed look at not only trends in access lines and take-rates for alternative voice service providers, but we also compared those statistics with indicated penetration trends for the overall U.S. population and households over time, and studied the implied substitution trends," said Richelle Elberg, Director and Senior Analyst of JSICA. "We incorporated data from the Federal Communications Commission, the U.S. Census Bureau, the Centers for Disease Control, the National Cable Television Association, the Cellular Telephone Industry Association, as well as our own comprehensive database of statistics for the ILEC and wireless industries. We've attacked the process from every angle possible in order to ensure the most reasonable final assumptions possible when developing a longer-term forecast."

In addition to detailed industry projections, Phone Lines 2009 provides extensive analysis and research regarding ILEC access line trends. The 187-page publication includes information compiled from Public Utility Commission and Federal Communications Commission reports, Securities and Exchange Commission filings, analyst reports, press releases, Web pages, and other publicly available sources. Extensive industry-wide mailings are also conducted by JSICA annually in an effort to compile the most accurate and complete listing of access line information available anywhere.

"Since we first published our annual compilation in 2001, Phone Lines has evolved into an incomparable reference tool for those who follow the ILEC industry," said William E. King, President and Managing Principal of JSICA. "With the addition of our first-ever, ten-year forecast of future line counts, Phone Lines 2009 is not only a valuable reference tool but a wake-up call for the entire industry. ILEC stakeholders are painfully aware of the significant decline in traditional access line counts the industry has experienced over the last several years. As our analysis indicates, not only is this trend expected to continue but, in the long-run, will result in a significant reduction in market share, revenue and value for traditional telephone companies," said King. "From our perspective, the relevant question is no longer if the trend will continue but, rather, how (and how quickly) the industry evolves to remain viable in the much different world of tomorrow."

Phone Lines 2009 is available for purchase for $595. Subscribers to The ILEC Advisor, JSI Capital Advisors' monthly newsletter focusing on financial transactions and developments within the independent communications provider industry, receive a free copy of Phone Lines 2009 as part of their subscription. The ILEC Advisor subscribers may order additional copies of Phone Lines 2009 at special discounted rates. To place an order or for more information about Phone Lines 2009 or The ILEC Advisor, contact Holly Krehel at 603-622-0379 or visit JSICA's Web site at www.jsicapital.com. For additional information on JSICA's Ten-Year Voice Industry Forecast, contact Richelle Elberg at 603-447-3988, or email her at [email protected].

JSI Capital Advisors, LLC is a specialized transaction advisory, valuation and research firm. For further information please contact us at (603) 622-0379 or on the Web at www.jsicapital.com.

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