FORM 10-K
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`UNITED STATES
`SECURITIES AND EXCHANGE COMMISSION
`Washington, D.C. 20549
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`(Mark One)
`xx ANNUAL
`REPORT PURSUANT TO SECTION 13 OR 15(d)
`OF THE SECURITIES EXCHANGE ACT OF 1934
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`For the fiscal year ended December 31, 2013
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`OR
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`¨¨ TRANSITION
`REPORT PURSUANT TO SECTION 13 OR 15(d)
`OF THE SECURITIES EXCHANGE ACT OF 1934
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`For the transition period from to
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`Commission File Number: 1-8610
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`AT&T INC.
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`Incorporated under the laws of the State of Delaware
`I.R.S. Employer Identification Number 43-1301883
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`208 S. Akard St., Dallas, Texas, 75202
`Telephone Number 210-821-4105
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`Securities registered pursuant to Section 12(b) of the Act: (See attached Schedule A)
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`Securities registered pursuant to Section 12(g) of the Act: None.
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`Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [X] No [ ]
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`Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]
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`Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
`the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
`for the past 90 days. Yes [X] No [ ]
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`Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to
`be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to
`submit and post such files).
`Yes [X ] No [ ]
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`Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best
`of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form
`10-K. [ X ]
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`Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See
`definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
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` Large accelerated filer [X]
`Accelerated filer [ ]
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` Non-accelerated filer [ ]
`Smaller reporting company [ ]
`(Do not check if a smaller reporting company)
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`Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
`Yes [ ] No [X]
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`Page 2028-001
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`Solocron Ex. 2028 - Verizon Wireless, AT&T Mobility - IPR2015-00387
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`Based on the closing price of $35.40 per share on June 28, 2013, the aggregate market value of our voting and non-voting common stock held by non-affiliates
`was $189 billion.
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`At February 14, 2014, common shares outstanding were 5,206,849,490.
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`Portions of AT&T Inc.’s Annual Report to Stockholders for the fiscal year ended December 31, 2013 (Parts I and II).
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`DOCUMENTS INCORPORATED BY REFERENCE
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`Portions of AT&T Inc.’s Notice of 2014 Annual Meeting and Proxy Statement dated on or about March 11, 2014 to be filed within the period permitted
`under General Instruction G(3) (Parts III and IV).
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`(1)
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`(2)
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`Page 2028-002
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`SCHEDULE A
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` Securities
`Registered Pursuant To Section 12(b) Of The Act:
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`Title of each class
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`Common Shares (Par
`Value $1.00 Per Share)
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`6.125% AT&T Inc.
` Global Notes due April
`2, 2015
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`5.875% AT&T Inc.
` Global Notes due April
`28, 2017
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`1.875% AT&T Inc.
` Global Notes
`due December 4, 2020
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`2.65% AT&T Inc.
` Global Notes due
`December 17 , 2021
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`2.5% AT&T Inc.
` Global Notes due
`March 15, 2023
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`3.5% AT&T Inc.
` Global Notes due
`December 17, 2025
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`3.55% AT&T Inc.
` Global Notes
`due December 17, 2032
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`7.00% AT&T Inc.
` Global Notes due April
`30, 2040
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`4.25% AT&T Inc.
` Global Notes due June
`1, 2043
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`4.875% AT&T Inc.
` Global Notes due June
`1, 2044
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` Name of each exchange
` on which registered
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`New York Stock Exchange
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`Page 2028-003
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`TABLE OF CONTENTS
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`PART I
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`Business
`Risk Factors
`Properties
`Legal Proceedings
`Mine Safety Disclosures
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`Executive Officers of the Registrant
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`PART II
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`Market for Registrant’s Common Equity, Related Stockholder
`Matters
`and Issuer Purchases of Equity Securities
`Selected Financial Data
`Management’s Discussion and Analysis of Financial Condition
`and Results of Operations
`Quantitative and Qualitative Disclosures about Market Risk
`Financial Statements and Supplementary Data
`Changes in and Disagreements with Accountants on Accounting
`and Financial Disclosure
`Controls and Procedures
`Other Information
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`PART III
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`Directors, Executive Officers and Corporate Governance
`Executive Compensation
`Security Ownership of Certain Beneficial Owners and
`Management and Related Stockholder Matters
`Certain Relationships and Related Transactions, and Director
`Independence
`Principal Accountant Fees and Services
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`Exhibits and Financial Statement Schedules
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`PART IV
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`Page 2028-004
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`AT&T Inc.
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`PART I
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`ITEM 1. BUSINESS
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`GENERAL
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`AT&T Inc. (“AT&T,” “we” or the “Company”) is a holding company incorporated under the laws of the State of Delaware in 1983 and has its principal
`executive offices at 208 S. Akard St., Dallas, Texas, 75202 (telephone number 210-821-4105). We maintain an Internet website at www.att.com. (This website
`address is for information only and is not intended to be an active link or to incorporate any website information into this document.) We make available, free
`of charge, on our website our annual report on Form 10-K, our quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those
`reports as soon as reasonably practicable after such reports are electronically filed with, or furnished to, the Securities and Exchange Commission (SEC). We
`also make available on that website, and in print, if any stockholder or other person so requests, our code of business conduct and ethics entitled “Code of
`Ethics” applicable to all employees and Directors, our “Corporate Governance Guidelines,” and the charters for all committees of our Board of Directors,
`including Audit, Human Resources and Corporate Governance and Nominating. Any changes to our Code of Ethics or waiver of our Code of Ethics for senior
`financial officers, executive officers or Directors will be posted on that website.
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`History
`AT&T, formerly known as SBC Communications Inc. (SBC), was formed as one of several regional holding companies created to hold AT&T Corp.’s (ATTC)
`local telephone companies. On January 1, 1984, we were spun-off from ATTC pursuant to an anti-trust consent decree, becoming an independent publicly-traded
`telecommunications services provider. At formation, we primarily operated in five southwestern states. Our subsidiaries merged with Pacific Telesis Group in
`1997, Southern New England Telecommunications Corporation in 1998 and Ameritech Corporation in 1999, thereby expanding our wireline operations as the
`incumbent local exchange carrier (ILEC) into a total of 13 states. In November 2005, one of our subsidiaries merged with ATTC, creating one of the world’s
`leading telecommunications providers. In connection with the merger, we changed the name of our company from “SBC Communications Inc.” to “AT&T Inc.”
`In December 2006, one of our subsidiaries merged with BellSouth Corporation (BellSouth) making us the ILEC in an additional nine states. With the BellSouth
`acquisition, we thereby acquired BellSouth’s 40 percent economic interest in AT&T Mobility LLC (AT&T Mobility), formerly Cingular Wireless LLC, resulting
`in 100 percent ownership of AT&T Mobility. Substantially all of our services and products are marketed under the AT&T brand name. In 2013, we launched a
`new wireless brand, Aio, which offers prepaid services and devices with no annual contract.
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`Scope
`We are a leading provider of telecommunications services in the United States and the world. We offer our services and products to consumers in the U.S. and
`services and products to businesses and other providers of telecommunications services worldwide.
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`The services and products that we offer vary by market, and include: wireless communications, local exchange services, long-distance services,
`data/broadband and Internet services, video services, telecommunications equipment, managed networking, and wholesale services. We group our operating
`subsidiaries as follows, corresponding to our operating segments for financial reporting purposes:
`· wireless subsidiaries provide both wireless voice and data communications services across the U.S. and, through roaming agreements, in a substantial
`number of foreign countries.
`· wireline subsidiaries provide primarily landline voice and data communication services, AT&T U-verse ® high-speed broadband, video, and voice
`services (U-verse) and managed networking to business customers.
`· other subsidiaries include results from corporate and other operations, our portion of results from our equity investments and impacts from corporate-
`wide decisions for which the individual operating segments are not being evaluated.
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`Our local exchange subsidiaries operate as the ILEC in 22 states: Alabama, Arkansas, California, Connecticut, Illinois, Indiana, Florida, Georgia, Kentucky,
`Louisiana, Kansas, Michigan, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Wisconsin (22-
`state area). In December 2013, we agreed to sell our local exchange operations in Connecticut. Our local exchange subsidiaries are subject to regulation by each
`state in which they operate and by the Federal Communications Commission (FCC). Wireless service providers are regulated by the FCC. Additional
`information relating to regulation and pending deals, including the Connecticut operations sale, are contained under the heading “Government Regulation” and
`in the Annual Report under the headings “Operating Environment and Trends of the Business” and “Other Business Matters” and is incorporated herein by
`reference pursuant to General Instruction G(2).
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`1
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`AT&T Inc.
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`With the expansion of our company through acquisitions and the resulting ownership consolidation of AT&T Mobility, and with continuing advances in
`technology, our services offerings now combine our traditional wireline and wireless services. We make our customers’ lives more convenient and productive
`and foster competition and further innovation in the communications and entertainment industry. In 2014, we plan to focus on the areas discussed below.
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`Wireless
`AT&T Mobility began operations in October 2000 as a joint venture between us and BellSouth and, in 2004, acquired AT&T Wireless Services, Inc. Upon
`our acquisition of BellSouth in 2006, AT&T Mobility became a wholly-owned subsidiary. As of December 31, 2013, we served more than 110 million
`subscribers.
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`In the United States, we now cover all major metropolitan areas and nearly 280 million people with our LTE technology. We expect to cover approximately 300
`million people and to be essentially complete by the summer of 2014. We also provide 4G coverage using various other technologies (UMTS and HSPA+), and
`when combined with our upgraded backhaul, we are able to enhance our network capabilities and provide superior mobile broadband speeds for data and
`video services. Our wireless network also relies on other GSM digital transmission technologies for 3G and 2G data communications. As of December 31,
`2013, we served more than 110 million subscribers. We continue to expand the number of locations, including airports and cafés, where customers can access
`broadband Internet connections using wireless fidelity (local radio frequency commonly referred to as Wi-Fi) technology.
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`As the wireless industry continues to mature, we believe that future wireless growth will increasingly depend on our ability to offer innovative data services
`and a wireless network that has sufficient spectrum and capacity to support these innovations. We are facing significant spectrum and capacity constraints on
`our wireless network in certain markets. We expect such constraints to increase and expand to additional markets in the coming years. While we are continuing
`to invest significant capital in expanding our network capacity, our capacity constraints could affect the quality of existing voice and data services and our
`ability to launch new, advanced wireless broadband services, unless we are able to obtain more spectrum. Any long-term spectrum solution will require that
`the FCC make new or existing spectrum available to the wireless industry to meet the expanding needs of our subscribers. We will continue to attempt to
`address spectrum and capacity constraints on a market-by-market basis. To that end, we closed more than 60 deals to acquire spectrum and wireless
`operations during 2013. Much of the recently acquired spectrum came from an innovative solution in which we obtained FCC approval to use Wireless
`Communication Services spectrum for mobile broadband for the first time.
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`Also as part of our efforts to improve our network performance and help address the need for additional spectrum capacity, we intend to redeploy spectrum
`currently used for basic 2G services to support more advanced mobile Internet services on our 3G and 4G networks. We will continue to manage this process
`consistent with previous network upgrades and will transition customers on a market-by-market basis from 2G networks to our more advanced 3G and 4G
`networks. We expect to fully discontinue service on our 2G networks by approximately January 1, 2017. As of December 31, 2013, about 4 percent of
`AT&T’s postpaid subscribers used 2G-capable handsets. We do not expect this transition to have a material impact on our operating results.
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`Business Customers
`We expect to continue to strengthen the reach and sophistication of our network facilities and our ability to offer a variety of communications services, both
`wireless and wireline, to large businesses, governmental and wholesale customers worldwide. We expect to offer similar services to small- and medium-
`businesses and to increase the attractiveness of our services to governmental customers. We also expect to extend our wholesale business offerings to other
`service products and systems integration services.
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`Data/Broadband
`As the communications industry continues to move toward Internet-based technologies that are capable of blending traditional wireline and wireless services,
`we plan to offer services that take advantage of these new and more sophisticated technologies. In particular, we intend to continue to focus on expanding our
`AT&T U-verse high-speed broadband and video offerings and on developing IP-based services that allow customers to unite their home or business wireline
`services with their wireless service.
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`AT&T Inc.
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`U-verse Services During 2013, we continued to expand our offerings of U-verse high speed Internet and TV services. As of December 31, 2013, we are
`marketing U-verse services to approximately 27 million customer locations (locations eligible to receive U-verse service). As of December 31, 2013, we had
`10.7 million total U-verse subscribers (high-speed Internet and video), including 10.4 million Internet and 5.5 million video subscribers (subscribers to both
`services are only counted once in the total). As part of Project Velocity IP (VIP), we plan to expand our IP-broadband service to approximately 57 million
`customer locations, including U-verse services to a total of 33 million customer locations. We expect to be substantially complete in the 2015 and 2016
`timeframe.
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`We believe that our U-verse TV service is a “video service” under the Federal Communications Act. However, some cable providers and municipalities have
`claimed that certain IP services should be treated as a traditional cable service and therefore subject to the applicable state and local cable regulation. Petitions
`have been filed at the FCC alleging that the manner in which we provision “public, educational and governmental” (PEG) programming over our U-verse TV
`service conflicts with federal law, and a lawsuit has been filed in a California state superior court raising similar allegations under California law. If courts
`having jurisdiction where we have significant deployments of our U-verse services were to decide that federal, state and/or local cable regulation were
`applicable to our U-verse services, or if the FCC, state agencies or the courts were to rule that we must deliver PEG programming in a manner substantially
`different from the way we do today or in ways that are inconsistent with our current network architecture, it could have a material adverse effect on the cost
`and extent of our U-verse offerings.
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`Internet Protocol Technology IP is generally used to describe the transmission of voice (called voice over IP or VoIP) and data using a software-based
`technology rather than a traditional wire and physical switch-based telephone network. A company using this technology can provide voice and data services
`at a lower cost because this technology uses bandwidth more efficiently than a traditional network and because this technology has not been subject to
`traditional telephone industry regulation. Using this technology also presents growth opportunities especially in providing data and video services to both fixed
`locations and mobile devices. To take advantage of both these growth and cost-savings opportunities, we have announced plans to transition wireline
`customers in our current 22-state area to services using this technology by the end of 2020.
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`BUSINESS OPERATIONS
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`OPERATING SEGMENTS
`Our segments are strategic business units that offer different products and services over various technology platforms and are managed accordingly. We
`analyze our operating segments based on segment income before income taxes. We make our capital allocations decisions based on the strategic needs of the
`business, needs of the network (wireless or wireline) providing services and demands to provide emerging services to our customers. Actuarial gains and
`losses from pension and other postemployment benefits, interest expense and other income (expense) – net, are managed only on a total company basis and are,
`accordingly, reflected only in consolidated results. Therefore, these items are not included in the calculation of each segment’s reportable results. The
`customers and long lived assets of our reportable segments are predominantly in the United States. Each segment’s percentage of total segment operating
`revenue and income calculations is derived from our segment results, and income percentage may total more than 100 percent due to losses in one or more
`segments. We have three reportable segments: (1) Wireless, (2) Wireline, and (3) Other.
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`Additional information about our segments, including financial information, is included under the heading “Segment Results” on pages 13 through 20 and in
`Note 4 of the Annual Report and is incorporated herein by reference pursuant to General Instruction G(2).
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`WIRELESS
`Wireless consists of our subsidiary, AT&T Mobility, which operates as a wireless provider to both business and consumer subscribers. Our Wireless segment
`provided approximately 54% of 2013 total segment operating revenues and 76% of our 2013 total segment income. At December 31, 2013, we served more than
`110 million wireless subscribers. We classify our subscribers as either postpaid, prepaid, connected device or reseller.
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`Services and Products
`We offer a comprehensive range of high-quality nationwide wireless voice and data communications services in a variety of pricing plans, including postpaid
`and prepaid service plans. Our offerings are tailored to meet the communications needs of targeted customer segments, including youth, family, active
`professionals, small businesses, government and major national corporate accounts.
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`AT&T Inc.
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`Data – Wireless data revenues continue to be a growing area of our business, representing an increasing share of our overall subscriber revenue. We are
`experiencing solid growth from both consumer and enterprise wireless data services, as an increasing number of our subscribers have upgraded their handsets
`to more advanced integrated devices. We are also seeing rapid growth in demand for new data-centric devices such as tablets, direction and navigation aids and
`monitoring devices. We recently expanded our Mobile Share data plans (which provide for service on multiple devices at reduced rates) to include additional,
`larger usage levels, and we have introduced AT&T Next, a program allowing subscribers to more frequently upgrade handsets using an installment payment
`plan. Such offerings are intended to encourage existing subscribers to upgrade their current services and/or add connected devices, attract subscribers from
`other providers, and minimize subscriber churn. Participation in these plans continues to increase. Customers in our “connected device” category (e.g., users
`of eReaders and navigation aids) purchase those devices from third-party suppliers that buy data access supported by our network. Other data-centric device
`users are classified as either postpaid customers (primarily tablet, netbook and notebook users) or prepaid customers since they purchase service directly from
`us. We continue to upgrade our network and coordinate with equipment manufacturers and applications developers in order to further capitalize on the
`continued growth in the demand for wireless data services.
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`Voice, text and other service – Our voice service is generally offered on a contract basis for one- or two-year periods, referred to as postpaid. Under the terms
`of these contracts, service is billed and provided on a monthly basis according to the applicable rate plan chosen. Our wireless services include basic local
`wireless communications service, long-distance service and roaming services. Roaming services enable our subscribers to utilize other carriers’ networks when
`they are “roaming” outside our network footprint. We also charge fees to other carriers for providing roaming services to their customers when their customers
`utilize our network. We also offer prepaid voice service to certain customers who prefer to control usage or pay in advance.
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`Equipment – We sell a wide variety of handsets, wirelessly enabled computers (i.e., tablets and notebooks) and personal computer wireless data cards
`manufactured by various suppliers for use with our voice and data services. We sell through our own company-owned stores, agents or third-party retail
`stores. Like other wireless service providers, we often provide postpaid contract subscribers substantial equipment subsidies to initiate, renew or upgrade
`service. To reduce these subsidies, we launched our AT&T Next program, which allows customers to buy handsets on an installment basis. As a result of the
`program, we expect equipment revenues to increase in 2014 along with a proportionate decline in service revenues. We also sell accessories, such as carrying
`cases, hands-free devices, batteries, battery chargers and other items, to consumers, as well as to agents and third-party distributors for resale.
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`Equity in net income (loss) of affiliates – The Wireless segment includes expenses from our mobile payment joint venture with Verizon and T-Mobile,
`marketed as the Isis Mobile WalletTM (ISIS).
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`Additional information on our Wireless segment is contained in the Annual Report in the “Operating Environment Overview” section under the heading “Expected
`Growth Areas,” “Wireless” and in “Other Business Matters” and “Liquidity and Capital Resources” beginning on page 21 and is incorporated herein by reference
`pursuant to General Instruction G(2).
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`WIRELINE
`Our Wireline subsidiaries provide both retail and wholesale communication services domestically and internationally. Our Wireline segment provided
`approximately 46% of 2013 segment operating revenues and 27% of our 2013 total segment income. We divide our wireline services into three product-based
`categories: data, voice and other. Revenues from our traditional voice services have been declining as customers have been switching to wireless, or VoIP
`services provided by either us, cable or other Internet-based providers. In addition, the continuing weak job growth and business starts have caused wireline
`customers to terminate their residential or business phone service as individuals have lost jobs or otherwise combined households and businesses have not
`added jobs. We have responded by offering packages of combined voice and data services, including broadband and video, and intend to continue this
`strategy during 2014.
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`Services and Products
`Data – We provide data services that rely on IP-based technology and data services that rely on older, circuit-based technology. We provide businesses voice
`applications over IP-based networks (i.e., Enhanced Virtual Private Networks or “EVPN”). Over the past several years, we have built out our new IP/MPLS
`(Internet Protocol/MultiProtocol Label Switching) network, to supplement our IP-based product set, and eventually replace our older circuit-based networks
`and services. These products allow us to provide highly complex global data networks. Additional IP-based services include Internet access and network
`integration, dedicated Internet and enterprise networking services, U-verse services and related data equipment sales. These advanced IP-based services
`continued to grow during 2013 as customers shift from our older circuit-based services. Advanced IP-data now represents more than 30% of our revenues from
`wireline business customers. We expect this trend to continue in 2014 as both consumers and businesses continue to use more services based on Internet access
`and demand ever-increasing transmission speeds, especially for video. To cope with these trends, we continue to re-configure our wireline network.
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`AT&T Inc.
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`Our circuit-based, traditional data products include switched and dedicated transport services that allow business customers to transmit data at high speeds,
`as well as DSL Internet access. Our offerings use high-capacity digital circuits, and allow customers to create internal data networks and to access external
`data networks. Switched Transport services transmit data using switching equipment to transfer the data between multiple lines before reaching its destination.
`Dedicated Transport services use a single direct line to transmit data between destinations. DSL is a digital modem technology that converts existing twisted-
`pair telephone lines into access paths for multimedia and high-speed data communications to the Internet or private networks.
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`Network integration services include installation of business data systems, local area networking and other data networking offerings. Internet access services
`include a wide range of products for residences and businesses including access service, dedicated access, web hosting, managed services, e-mail and high-
`speed access services. Our managed web-hosting services for businesses provide network, server and security infrastructure as well as built-in data storage
`and include application performance management, database management, hardware and operating system management. Our hosting services also provide
`customers with secure access to detailed reporting information about their infrastructure and applications. These services are evolving to a cloud delivery
`model, providing customers with on-demand data storage and computing capabilities from a centrally-managed network (referred to as the cloud) accessible
`from a variety of different devices and locations.
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`Packet services consist of data networks using packet switching and transmission technologies, including traditional circuit-based, and IP connectivity
`services. Packet services enable customers to transmit large volumes of data economically and securely and are used for local area network (LAN)
`interconnection, remote site, point of sale and branch office communications. High-speed packet services are used extensively by enterprise (large business)
`customers.
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`Enterprise networking services provide comprehensive support from network design, implementation and installation to ongoing network operations and
`management for networks of varying scales, including LANs, wide area networks, and virtual private networks. These services include applications such as
`e-mail, order entry systems, employee directories, human resource transactions and other database applications. We also offer Wi-Fi service.
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`We provide local, interstate and international wholesale networking capacity to other service providers. We offer a combination of high-volume transmission
`capacity and conventional dedicated line services on a regional, national and international basis to wireless carriers, interexchange carriers, Internet service
`providers (ISPs) and facility-based and switchless resellers. Our wholesale customers are primarily large ISPs, wireless carriers, competitive local exchange
`carriers, regional phone companies, interexchange carriers, cable companies and systems integrators.
`
`Voice – Voice includes traditional local and long-distance service provided to retail customers and wholesale access to our network and individual network
`elements provided to competitors. At December 31, 2013, our wireline subsidiaries served approximately 12 million retail consumer access lines, 10 million
`retail business access lines and 2 million wholesale access lines. We also have a number of integrated voice and data services, such as integrated network
`connections, that provide customers the ability to integrate access for their voice and data services, the data component of which is included in data revenues.
`Additionally, voice revenues do not include any of our VoIP revenues, which are included in data revenues.
`
`Long distance consists of traditional long distance and international long distance for customers that select us as their primary long-distance carrier. Long
`distance also includes services provided by calling card, 1-800 services and conference calling. We also provide wholesale switched access service to other
`service providers.
`
`Voice also includes calling features, fees to maintain wire located inside customer premises and other miscellaneous voice products. Calling features are
`enhanced telephone services available to retail customers such as Caller ID, Call Waiting and voice mail.
`
`Other – Other includes major items such as outsourcing, integration services and customer premises equipment, and government-related services.
`
`Customer premises equipment and other equipment sales range from single-line and cordless telephones to sophisticated private digital switc