Interconnected U.S. VoIP subscriptions rose 22% while PSTN switched access lines decreased 10% resulting in a 6% combined annual decrease from 162 million to 153 million total wireline retail local telephone service connections in 2009, the FCC reports in its third Local Telephone Competition report. Interconnected VoIP subscriptions grew to 26 million from 21 million while switched access lines fell to 127 million from 141 million as of year-end 2009. This FCC data is as of December 31, 2009.

Forty-five percent of the 153 million lines were residential switched lines, 38% were business switched lines, 15% were residential interconnected VoIP connections, and 2% were business interconnected VoIP connections. Residential connections totaled 91 million while business connections totaled 62 million. Interconnected VoIP subscriptions enable IP voice customers to place and receive calls from and to phones connected to the legacy public switched telephone network (PSTN).

Out of the 153 million total connections, 42% were incumbent local exchange carrier (ILEC) controlled residential lines and 28% were ILEC controlled business lines. Seventeen percent of residential lines were provided by other providers, including competitive local exchange carriers (CLECs) while 13% of business lines were provided by non-ILECs.

Close to 70% of residential wireline connections were ILEC switched access and 23.5% were non-ILEC interconnected VoIP subscriptions. Slightly over 5% were non-ILEC switched access and 1.1% were ILEC interconnected VoIP subscriptions.

Of the 62 million wireline business connections,  68% were ILEC switched access while 26.3% were non-ILEC switched access. Close to 5% were non-ILEC interconnected VoIP subscriptions and 1% were ILEC connected VoIP subscriptions.

Among interconnected VoIP subscribers, 84% received service through a broadband bundle, according to the FCC report. Eighty-seven percent of bundled services were provided via cable modem, 13% via fiber to the premises (FTTP), DSL or other wireline. Less than 1% were provided via fixed wireless or other connections. Eleven percent of VoIP subscriptions were nomadic, meaning that they could be used over any broadband connection.

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