FairPoint Communications 2004 Annual Report Download - page 9

The following chart summarizes our revenue sources for the year ended December 31, 2004:
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Local Calling Services 25%Enables the local customer to originate and receive an
unlimited number of calls within a defined "exchange"
area. The customer is charged a flat monthly fee for basic
service and service charges for special calling features.
Network Access Charges 45%Enables long distance companies to utilize our local
network to originate or terminate intrastate and interstate
calls. The network access charges are paid by the
interexchange carrier to us and are regulated by state
regulatory agencies and the Federal Communications
Commission, respectively. This also includes Universal
Service Fund payments for local switching support, long
term support and interstate common line support.
Universal Service Fund High Cost Loop 9% We receive payments from the Universal Service Fund to
support the high cost of our operations in rural markets.
This support fluctuates based upon our average cost per
loop compared to the national average cost per loop.
Long Distance Services 7% We receive revenues for intrastate and interstate long
distance services provided to our retail customers and our
wholesale long distance customers.
Data and Internet Services 7% We receive revenues from monthly recurring charges for
services, including broadband, digital subscriber line,
special access, private lines, Internet and other services.
Other Services 7% We generate revenues from other services, including
enhanced services and billing and collection.
See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" for more information regarding
our revenue sources.
Local Calling Services
Local calling services include basic local lines, private lines and switched data services. We provide local calling services to residential
and business customers, generally for a fixed monthly charge. In a rural local exchange carriers' territory, the amount that we can charge a
customer for local service is determined by rate proceedings involving the appropriate state regulatory authorities.
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