Voice services consist of traditional telephone services provided from telephone
exchange offices to customer premises of both residential and business customers.
Voice revenues include monthly recurring charges for basic services such as local
dial-tone, and enhanced services that include call waiting, call forwarding, caller
identification, three-way calling, no-answer transfer, voicemail, and other enhanced
services.
Long distance telecommunications services generate revenues from switched interstate
and intrastate long distance, long distance calling card, international calls
and operator services. Long distance telecommunications services are provided
on a resale basis by Windstream subsidiaries. Windstream provides long distance
service in all of the states in which it provides local exchange service. In
addition, Windstream offers long distance service outside its local service
areas. As of December 31, 2007, Windstream provided long distance service to
over 2.0 million customers. The long distance marketplace is extremely competitive
and continues to receive relaxed regulation from both the Federal Communications
Commission (“FCC”) and state regulatory commissions. As a long distance
service provider, Windstream’s interstate business is subject to limited
regulation by the FCC, and its intrastate long distance business is subject
to limited regulation by state regulatory commissions. State regulatory commissions
currently require long distance service providers to obtain a certificate of
operating authority, and the majority of states also require long distance service
providers to file tariffs. To meet the competitive demands of the long distance
industry, Windstream has created several business and residential service offerings
to attract potential customers, such as volume price discounts, calling cards
and simplified one-rate plans.
Data and special access services primarily consist of retail high-speed Internet
services and the provision of special access dedicated circuits. We provide
high-speed Internet access using digital subscriber line technology for a monthly
fee. Windstream’s Greenstreak program was launched across all markets
in the first quarter of 2007 and offers high-speed Internet along with measured
local phone service that allows unlimited incoming calls, 911 access and outgoing
local calls for 10 cents a minute. We also provide Internet access services
to dial up Internet subscribers and data transmission services over special
circuits and private lines. Our Internet access services also enable customers
to establish an e-mail account and to send and receive e-mail. In addition,
we offer enhanced Internet services, which include obtaining Internet protocol
addresses, basic web site design and hosting. Special access services provide
customers dedicated point-to-point switching arrangements for voice and data
traffic, and allows constant use at maximum capacity.
Switched access and interconnection services are provided by Windstream by
connecting the equipment and facilities of its customers to the communications
networks of long distance carriers, other competitive local service providers
and wireless carriers. These companies pay access and network usage charges
to Windstream’s local exchange subsidiaries for the use of their local
networks to originate and terminate their voice and data transmissions.
Miscellaneous service revenues primarily consist of charges for service fees,
rentals and billing and collections services. Miscellaneous revenues also include
commissions from activating digital satellite television service through our
relationship with EchoStar Communications Corporation. These services are offered
to virtually all households in our service areas through a co-branded DISH Network
satellite television agreement. In addition, Windstream provides cable television
service to approximately 32,000 customers in Georgia and Missouri. The cable
television properties are not significant to Windstream’s wireline operating
results.
Product sales represent equipment sales to customers, including sales of high-speed
Internet modems and customer premise equipment.