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32. 1997 Economic Census
Source: U.S. Census Bureau, Annual Survey of Communication Services.
http://www.census.gov/svsd/www/ascs.html **************************************************************************************** ANNUAL SURVEY OF COMMUNICATION SERVICES
To provide estimates of revenue and expenses for the communication services industries. The United States Code, Title 13, authorizes this survey and provides for mandatory responses.
All firms with payroll that provide telephone communication, radio and television broadcasting, cable television and other communication services (SIC 48). Coverage reflects 1987 SIC classifications definitions beginning in 1991. In 1994, domestic communication industries had some 40,000 employer establishments and estimated revenue of more than $264 billion.
Data collected include: total revenue and revenue by source; total expenses and expenses by type; number of locations by kind of business; and industry specific inquiries such as telephone communication revenue by type of user and number of cable subscribers. In the first year of a new sample, participants report data for both the current and preceding year. In subsequent years, only current year data are requested.
Annually since 1990; reported data are for activity taking place during the calendar year. Data collection begins about 4 months after the close of the reporting year, and continues for about 4 months. Samples are reselected every 5 years and updated annually; use of latest sample began in 1991.
A mail-out/mail-back survey of about 2,000 selected employer firms. The sample was constructed from communications firms listed in the Standard Statistical Establishment List (SSEL). The SSEL contains Federal Identification Numbers (EINs) for establishments with payroll, and locations for listed businesses. EINs may represent one or more establishments and companies with payroll may have one or more EIN.
Firms are first stratified by payroll and kind of business group. All companies with total revenue (estimated from payroll) above applicable size cutoffs are included in the survey and report for all their industry EINs. In a second stage, unselected EINs are stratified by kind of business group and revenue, and a simple random sample is taken from each stratum.
The sample is updated for employer business "births" and "deaths" in an annual procedure. Companies and EINs that are not active in a survey year are dropped from the sample. New EINs are identified in a birth selection procedure and included in the survey.
* Definition of Terms
Operating Revenue. Billings for services rendered and any sales of merchandise during the survey year, even though payments may be received at a later date. Excludes income from interest, investments, gifts, loans, contributions or grants; the sale of securities, real estate, etc.; sales taxes or other taxes collected from customers and remitted directly by the firm to a local, State, or Federal tax agency; revenue from the sale of merchandise and equipment from retail establishments; and revenue from a domestic parent organization, or from franchise locations owned by others and any franchise or license fees.
Total Revenue. For tax-exempt firms, it includes all government subsidies used to offset operating or capital deficits, private gifts, loans, contributions or grants, and all other non-operating receipts such as income from investments, the sale of securities, and real estate. Total revenue also includes any operating revenue incurred by the tax-exempt firm.
Telephone Services Local service revenue. Revenue from services provided within the basic service area. This includes extended area revenue; local private line revenue; customer premises revenue; revenue from public telephone services provided within the basic service area; and other local exchange revenue, such as directory assistance, touch-tone line services, call forwarding, and call waiting. Excludes cellular and other mobile services revenue.
Long-distance service revenue. Revenue for providing message services that terminate beyond the basic service area. This includes message services that utilize the public long-distance switching network and the basic subscriber access line, and operator assistance or special billings directly related to these calls; and revenue received from international calls originating in the U.S., including that portion paid to foreign companies for access to their networks.
Network access revenue. Revenue for providing exchange access services to an interexchange carrier or to an end-user of telecommunications services beyond the exchange carriers network and access revenue for calls originating in foreign countries.
Cellular and other radiotelephone revenue. Revenue from cellular and general radio telecommunications, including radio paging, mobile dispatching, and signalling ser-vices. Excludes revenue from installation fees and equip-ment sales.
Directory advertising revenue. Revenue from alphabetical and classified sections of directories, including amounts charged for additional and bold face listings, marginal displays, inserts and other advertisements. Excludes other directory revenue (i.e. revenue from sale of directories, charges for unlisted numbers, etc.).
Other operating revenue. Includes revenue from the sale or lease of communication equipment (the fair sales value of merchandise marketed under capital, finance, or full payout leases); revenue from the rental of telecommunications plant or equipment furnished apart from services rendered; operating and maintenance activities provided for others; special billing arrangements for customers; billing and collection services provided to other telecommunications firms; directory revenue from other than adver-tising services; installation fees; and services such as general accounting, financial, legal, etc. provided to firms under a license, general contract, or other agreement, as well as the sale of merchandise and equipment. Excludes the sale of merchandise and equipment from retail establishments, sales or other taxes collected from customers and paid directly to a taxing authority, and nonoperating revenue such as the sale of investments, securities, real estate, etc.
Costs incurred during the survey year even though payment may be made at a later date. Exceptions are annual payroll and employer contributions for employee benefits, which are reported on a cash basis. Excludes interest on loans and sales taxes and other taxes collected from customers and paid directly to a taxing authority.
Annual payroll. All salaries, wages, commissions, bonuses, and allowances for vacation, holiday, and sick leave paid to employees during the survey year. For corporations, it includes amounts paid to officers and executives; for unincorporated businesses, it does not include payments to proprietors or partners. Annual payroll is reported on a cash basis before employee deductions for Social Security, withholding taxes, insurance, union dues, etc.
Employer contributions for employee benefit plans (REPORTED ON A CASH BASIS)
Plans required under Federal and State legislation. The employers cost for all legally required programs, such as Social Security and Medicare (FICA), workers compensation insurance, unemployment tax, State disability insur-ance programs, etc.
Other fringe benefit plans. The employers cost for programs not required by law such as pension plans, stock purchase plans, union-negotiated benefits, life insurance benefits, insurance premiums for hospital and medical plans, etc.
Access charges (telephone firms only). Payments to local exchange carriers for access to their networks. Includes fees for leased facilities, interconnection fees for cellular phone services, and access charges paid to foreign companies for international calls originating in the United States.
Depreciation. Depreciation charges on assets owned by the company. Includes depreciation on assets rented or leased to others by the company under an operating lease agreement. Also includes depreciation against assets owned by the company within leaseholds and assets obtained through capital lease agreements. Excludes depreciation on intangible assets and assets leased to others by the company under a capital lease agreement. These charges are not adjusted for the value of depreciable assets sold or traded for replacement purposes.
Buildings, offices, and structures. Depreciation charges on buildings, offices, and structures owned by the company (except those included as part of communication or transmission systems defined below).
Communication systems (telephone firms only).Depreciation charges on communication systems, including optical fiber, digital and/or microwave switching equipment, satel-lite transmission, radio systems, terminal equipment, poles, cable, etc.
Vehicles, machinery and equipment, and other tangible assets. Depreciation charges on vehicles, machinery and equipment, and other tangible assets.
Lease and rental. Payments made to other companies for the rental and leasing of assets owned by them. Excludes payments to a parent company or organization or any of its subsidiaries, and installment payments for assets obtained through capital lease agreements.
Buildings, offices, and structures. Payments made to other companies for the rental or leasing of buildings, offices, and structures (except those included as part of communication or transmission systems defined below).
Communication systems (telephone firms only). Payments made to other companies for the repair of communication systems, including optical fiber, switching equipment, satellite transmission, radio systems, terminal equipment, poles, cables, etc.
Vehicles, machinery and equipment. Payments made to other companies for the rental or leasing of vehicles and other machinery and equipment.
Purchased repairs. Payments made to other companies for repairs. Excludes repair costs included as part of a lease or rental agreement, improvements for which depreciation accounts are maintained, and repairs performed by employees of the company or its subsidiaries.
Buildings, offices, and structures. Payments made to other companies for repairs (including charges for parts and labor) to buildings, offices, and structures (except those included as part of communication or transmission systems defined below).
Transmission systems (except telephone firms). Payments made to other companies for the repair of transmission systems, including towers, antennas, cables, wires, transmitters, transmission lines, converters, tap offs, power supplies, microwave equipment, master control equipment, and other transmitting equipment.
Vehicles, machinery and equipment. Payments made to other companies for the repair of vehicles and other machinery and equipment.
Insurance. The cost of all commercial insurance used to protect the company against losses or damages to buildings, structures, and machinery and equipment caused by fire, flood, wind, boiler explosion, or any other cause. Also includes premiums on fidelity bonds of employees, insurance to protect against liability for deaths or injuries of persons, and damages to property of others. Excludes cost of premiums for workers compensation.
Telephone and other purchased communication services. The cost of nonrevenue-generating purchased communication services such as telephone, telex, telegraph, teletype, etc.
Purchased utilities. The cost of purchased utilities, including electricity; fuels consumed for heat, power or generating electricity; water; sewer; and refuse removal. Excludes payments for these utility services if included as part of a lease or rental agreement.
Purchased advertising. The cost of purchased advertising including payments to other firms for printing, media, and other services and materials used for advertising. Taxes and licenses. The cost of taxes and licenses, including business license fees, real estate and personal property taxes (such as taxes on motor vehicles, machinery, equipment, and inventories), and special assessments. Also includes FCC license fees. Excludes income, sales, payroll, excise taxes, and other taxes collected from customers and paid to local, State, or Federal government agencies.
Other operating expenses. All other operating expenses not reported above, including billing services; news gathering services; rating services; travel expenses; dues and subscriptions; accounting and legal fees; office supplies; and data processing expenses, including the cost of computer software purchased under licensing agreements. Excludes interest on loans, income taxes, and local sales and excise taxes.
These tables are based on figures supplied by the United States Census Bureau, U.S. Department of Commerce and are subject to revision by the Census Bureau.
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