FairPoint Communications 2009 Annual Report Download - page 67

Table of Contents
their customers. Switched access revenues are derived from fixed and usage-based charges paid by carriers for access to our local
network. Special access revenues originate from carriers and end-users that buy dedicated local and interexchange capacity to support
their private networks. Access revenues are earned from resellers who purchase dial-tone services.
• Interstate access charges to long distance carriers and other customers are based on access rates filed with the
FCC. These revenues also include Universal Service Fund payments for high-cost loop support, local switching support, long term
support and ICLS.
• These revenues consist primarily of charges paid by long distance companies and other customers for access
to our networks in connection with the origination and termination of intrastate telephone calls both to and from our customers. Intrastate
access charges to long distance carriers and other customers are based on access rates filed with the state regulatory agencies.
• We receive payments from the Universal Service Fund to support the high cost of
operating in rural markets and to provide support for low income subscribers, schools, libraries and rural healthcare.
• We receive revenues from long distance services we provide to our residential and business customers.
Included in long distance services revenue are revenues received from regional toll calls.
• We receive revenues from monthly recurring charges for services, including high speed data, Internet and
other services.
• We receive revenues from other services, including video services (including cable television and video-over-DSL),
public (coin) telephone, billing and collection, directory services and the sale and maintenance of customer premise equipment.
The following summarizes our revenues and percentage of revenues from these sources:

Our operating expenses consist of cost of services and sales, selling, general and administrative expenses, and depreciation and amortization.
• Cost of services and sales includes the following costs directly attributable to a service or product: salaries
and wages, benefits, materials and supplies, contracted services, network access and transport costs, customer provisioning costs,
computer systems support and cost of products sold. Aggregate customer care costs, which include billing and service provisioning, are
allocated between cost of services and sales and selling, general and administrative expense.
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 

 
        
    
Local calling services $ 440,731 $ 560,791 $ 569,061 39% 44% 48%
Access 381,423 370,809 326,974 34 29 27
Long distance services 147,672 186,830 176,397 13 15 15
Data and Internet services 109,942 114,906 83,214 10 9 7
Other services 46,993 41,283 41,819 4 3 3
Total $ 1,126,761 $ 1,274,619 $ 1,197,465 100% 100% 100%