Producer Price Indexes

Producer Price Indexes for Wired Telecommunications Carriers—NAICS 517110

In January 2012, the Bureau of Labor Statistics (BLS) modified the Producer Price Indexes (PPIs) for North American Industry Classification System (NAICS) 517110, Wired telecommunications carriers to accommodate changes in the 2007 NAICS classification. Activities that had previously been covered in the PPIs for NAICS 517110—Wired telecommunications carriers, NAICS 517510—Cable and other program distribution, and NAICS 518111—Internet service providers, are now included in the modified PPI for wired telecommunication carriers.

The modified indexes for NAICS 517110 appear in table 5 of the PPI Detailed Report and are available online through the BLS website.

The primary output of this industry is the transmission of voice, data, text, sound, and video, using a wired telecommunications network, to residential and business (including government) customers. Services can be provided individually or bundled in packages of two or more services. The mode of service delivery varies by type of establishment, as voice, data, and programming services may be transmitted via cable or telephone networks.

The services for which indexes are available include:

The index for bundled access services measures changes in actual transaction prices for packages that bundle two or more of the following: telephone service, video programming, and Internet access services. These packages may be preset and offered for a flat discounted price. Telephone and Internet access services provided in these preset packages are often unlimited in terms of usage (i.e. price is not based on time). For some companies, the local phone service is a flat rate plus a specified amount for long distance (e.g. 60 minutes/month). For other packages, customers may mix and match among the various telephone, video programming, and Internet plans that are offered on an individual basis and receive a discount based on the number of services that they receive.

All other indexes measure price change for a single service. With the exception of public switched toll and advertising services, these indexes measure changes in actual transaction prices for a specified service package including all features. These features, such as call waiting, may be priced a-la-carte or included in the fixed monthly charge.

For public switched toll service, the preferred price is the monthly average revenue per minute. This average is calculated by dividing the total revenue earned for all sales of a specified public switched toll service by the total minutes of this service that are provided.

The preferred price for advertising services is the monthly average spot rate. The monthly revenue received for all sales of advertising time during a specific daypart is divided by the number of these ads that are sold.

Last Modified Date: February 16, 2012

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